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Good morning, Australians are waking up to the government’s annual budget which featured a crackdown on tax concessions that have long favored property investors. While opposition to the move is likely to be fierce, the changes are expected to be well-received among younger voters who have struggled to get a foothold in the housing market. Elsewhere, the world is gearing up for a much-anticipated summit between US President Donald Trump and Chinese President Xi Jinping. The two are set to meet in Beijing with trade expected to be the focus, even as the Middle East conflict remains far from resolved — Carmeli Argana, Australian stocks reporter What’s happening nowAustralia will overhaul tax settings that have benefited property investors and assist households and firms grappling with soaring fuel costs in a budget that outlined deficits across the forecast horizon. Workers, small business owners and homebuyers were budget winners, while homeowners, discretionary trust users and NDIS users were losers. The budget also conducted scenario analysis under which the war in Iran intensifies, driving oil to $200 a barrel and throwing the global economy into chaos. Treasury said in Tuesday’s papers that such a backdrop would see Australia’s economy contract for one quarter and push inflation to 7.25% in the final three months of the year, while also driving up unemployment. Australia’s Labor government sought to ease generational inequality and rein in the deficit in Tuesday’s budget. Ahead of its release, Bloomberg’s Paul Allen reported on Australia’s property obsession and spoke to ANU’s Jill Sheppard about what’s at stake.  
Passengers from the Hondius cruise ship are being repatriated under a patchwork of measures that reflect uncertainty over how this strain of hantavirus spreads, complicating efforts to contain the deadly outbreak. Australia plans to quarantine passengers in a facility outside Perth. The risk to the broader public remains low, but it is unclear how contagious the virus is and whether people are infectious before developing symptoms. IFM Investors warned it may scrap a proposed A$3 billion ($2.2 billion) investment to make sustainable aviation fuel in Australia unless the government mandates that airlines use the product. And Fortescue, one of the world’s biggest iron ore miners, has been ordered to pay over A$150 million ($108 million) in damages to an indigenous group after being found to have operated the Solomon Hub project on their land without consent. 
What happened overnightA selloff in high-flying chipmakers drove US stocks lower, with the market also falling alongside bonds after inflation data showed the impacts of energy disruptions stemming from the war in Iran. The faster-than-estimated core consumer price index halted a rally in equities, with the S&P 500 dropping from a record. Locally, stock futures indicate a decline at the open. Meantime, President Donald Trump said he would prioritize trade discussions during his summit with Chinese counterpart Xi Jinping, and downplayed the amount of attention they would devote to the Iran war. Read our explainer on what else to expect from the Trump-Xi summit in Beijing. 
Donald Trump and Xi Jinping in Busan, South Korea, in October 2025.
Photographer: Andrew Caballero-Reynolds/AFP/Getty Images
Back in the US, lawmakers pressed Pentagon chiefs for details on the mounting costs of America’s deadlocked war with Iran, amid signs the conflict is pushing up consumer prices at home too. Trump said the Islamic Republic will be “decimated” if a deal can’t be reached. Anthropic PBC is in early talks with investors to raise at least $30 billion in fresh financing, according to people familiar with the matter, setting the stage for what could be its largest funding round yet. And a top South Korean policymaker said the nation should pay citizens a “dividend” using taxes on AI profits, underscoring growing pressure to redistribute gains from a boom that’s enriched chipmakers like Samsung Electronics and SK Hynix. What to watch
One more thing...On Dec. 5, Gianni Infantino, the president of football’s worldwide governing body, awarded the FIFA Peace Prize to Donald Trump. Wearing his medal, the US president stood glowingly onstage at the John F. Kennedy Center for the Performing Arts (two weeks before his name would be added to the building). A month later he would send US special forces to Venezuela to capture the country’s president, and the next month he and Israel’s leader would start a war with Iran. Read our Businessweek story on how the 2026 World cup is being overshadowed by political tensions. 
President Donald Trump receives the FIFA Peace Prize from Gianni Infantino, President of FIFA, during the FIFA World Cup 2026 Official Draw.
Photographer: Patrick Smith/Getty Images North America
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Wednesday, May 13, 2026
Australia tightens property tax breaks, Trump-Xi to meet
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