Dutton slams ‘worst collapse’ in living standards on record

Good morning and welcome back, it's Ainsley here with all the news you need to start your working week.Today's must-reads:• Dutton focuses o

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Good morning and welcome back, it's Ainsley here with all the news you need to start your working week. Today's must-reads: • Dutton focuses on living costs in campaign launch • Melbourne hit by flash flooding • Escalation of anti-Semitic hate crime

What's happening now

Peter Dutton laid out his case for becoming prime minister in his first speech of the year. The leader of the center-right Liberal Party prioritized cost-of-living and housing issues as he kicked off the party's campaign for the next election, due by May 17. "Australians are living through the worst collapse in living standards on record," he said. "Everything is costing more — food, rents, mortgages, power and insurance." Recent attacks on synagogues and property belonging to Jewish people mark an escalation of anti-Semitic hate crime in Australia, New South Wales Premier Chris Minns said Sunday. An inner-west Sydney synagogue as well as a home and several cars in the city's affluent east were defaced with anti-Jewish slurs and symbols on Saturday, a day after an attack on a separate place of worship, according to state police. Melbourne suffered flash flooding as powerful winds, hail and driving rain disrupted transport and activities in the city, including the Australian Open tennis tournament. The Bureau of Meteorology recorded almost 25 mm (about 1 inch) of rain in half an hour in the city just after midday Sunday.

What happened overnight

For years it's seemed like nothing could stop the stock market's inexorable march higher, as the S&P 500 Index soared more than 50% from the start of 2023 to the end of 2024, adding $18 trillion in value in the process. Now, however, Wall Street is seeing what can ultimately derail this rally: Treasury yields above 5%. Dry, hot winds will fan blazes in Los Angeles into midweek — and some forecasts show little relief from the gusts for the rest of January — as Southern California struggles with one of the worst starts to a year for wildfires.  Smoke over destroyed homes in the aftermath of the Eaton Fire in Altadena on Jan. 11. Photographer: Kyle Grillot/Bloomberg What could be more terrifying than a wall of flame sweeping through the suburbs of Los Angeles? The stealthy cloud of pollution seeping into people's lungs many miles from the conflagration, which will be causing harm long after the last ember burns out, writes David Fickling for Bloomberg Opinion. JPMorgan's Jamie Dimon said that tariffs, if properly used, can help resolve issues such as unfair competition and national security.  "Like any tool, if it's misused it can do damage too," the chief executive officer of the largest US bank said in an interview on CBS News' Sunday Morning. Dimon said he hasn't spoken with President-elect Donald Trump about tariffs.

What to watch

All times Sydney 11:00 a.m.: Melbourne Institute Inflation 11:30 a.m.: Australia ANZ-Indeed Job Advertisements

One more thing...

Neuralink's brain-computer device has been implanted in a third patient and the company has plans for about 20 to 30 more implants in 2025, founder Elon Musk said. "We've got now three humans with Neuralinks implanted and they're all working well," Musk said.  The Neuralink website on a smartphone. Photographer: Gabby Jones/Bloomberg

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