Good morning, it’s Carmeli from another cold Sydney morning here to bring you the latest headlines.

Today’s must-reads:
• Santos gets $18.7 billion takeover offer
• ASX faces ASIC probe for “serious failures”
• Chalmers gives warning on global economy

What's happening now

Abu Dhabi National Oil Co.’s move on Santos is the oil producer’s latest effort to transform its business from one that relies on black gold, to one that cares as much about LNG ships as oil tankers, Bloomberg Opinion’s David Fickling writes. With its core produce under threat from declining demand and a war-torn neighborhood, the oil company has been shopping for gas assets in recent years. Adnoc lobbed a $18.7 billion takeover offer to Santos on Monday that was recommended by directors.
 

Kevin Gallagher, chief executive officer of Santos Ltd. Photographer: Aaron M. Sprecher/Bloomberg

ASX’s shares took a dive after the financial watchdog started a probe following “repeated and serious” failures in governance and risk management practice. The Australian Securities and Investments Commission said it had ongoing concerns about the ASX’s ability to maintain stable, secure and resilient critical market infrastructure.

Treasurer Jim Chalmers gave a dire warning that the global economy is “a pretty dangerous place right now” amid escalating tensions between Israel and Iran. He said that a surge in oil prices had prompted an increase in interest-rate cut bets in Australia, suggesting traders are more focused on the implications for economic growth than near-term inflation.

What happened overnight

Here’s what my colleague, market strategist Mike “Willo” Wilson says happened while we were sleeping…

Stocks rallied and Treasuries fell after US President Donald Trump said Iran wants to talk about de-escalating the deadly conflict with Israel, even as the Middle East nations exchanged fire for a fourth straight day. A gauge of the greenback ended a choppy day little changed. Aussie and kiwi climbed along with risk appetites on the news. Today’s local calendar is bare, however offshore the Bank of Japan decides on their interest rates while the Federal Reserve’s two-day policy meeting gets underway. ASX stock futures indicate a positive start to the trading day.

As the deadly conflict in the Middle East enters its fifth day, Trump said at a Group of Seven leaders summit meeting that Iran wants to talk about de-escalation. Meanwhile, Israeli Prime Minister Benjamin Netanyahu is singing a different tune, signaling that strikes will continue. The US is refusing to back a proposed G-7 statement urging Israel and Iran to de-escalate, Bloomberg reported.

Destroyed apartments in buildings hit by ballistic missiles in Tel Aviv, Israel, on Monday, June 16, 2025.  Photographer: Kobi Wolf/Bloomberg

Elsewhere at the G-7 summit, the Group’s leading economies are working to shore up supplies of critical minerals as they seek to move away from reliance on China. Critical minerals are used in everything from mobile phones to wind turbines.

India’s deadliest plane crash in more than decade is set to send shock waves through the aviation insurance industry and trigger one of the country’s costliest claims, estimated at around $475 million, according to one of the insurance firms that has provided coverage for Air India.

What to watch

• Nothing major scheduled today

One more thing...

Lingerie retailer Victoria’s Secret is being targeted by another activist investor seeking a shake-up of its business. Barington Capital Group has built a stake of more than 1% in the company and is urging for changes to its board and strategy, according to a letter. Specifically, Barington is calling on the company to refocus on key categories, such as bras, while accelerating online and international growth and streamlining its operations.

A customer holds a Victoria's Secret shopping bag in New York, US, on Tuesday, Aug. 27, 2024. Photographer: Yuki Iwamura/Bloomberg