Happy Monday, it's Carmeli in Sydney here to bring you all the latest news to start your week.

Today’s must-reads:
• Australia and the UK sign submarine pact
• Australia strengthens India trade
• EU wins lowered 15% tariff rate from US

What's happening now

Australia and the UK signed a landmark 50-year defense treaty on Saturday to underpin the construction of nuclear-powered submarines, senior ministers from both nations said. Both sides stressed that the treaty doesn’t impact the Aukus security partnership between Australia, the UK and the US — currently under review by the Trump administration.

Richard Marles, Australia's defense minister, speaks during the IISS Shangri-La Dialogue in Singapore, May 31, 2025. Photographer: Ore Huiying/Bloomberg

Australia and India are likely to expand their free-trade agreement in the “very near future,” Trade Minister Don Farrell said, while dismissing assertions that President Donald Trump was responsible for Canberra’s decision to lift restrictions on US beef. Farrell said Australia and India would probably have already signed a deal adding products to their FTA earlier if not for Australia’s election in May.

Donald Trump praised Australia’s decision to lift import curbs on US beef amid trade negotiations between the two allies on Friday, after the US president had highlighted Canberra’s biosecurity measures as an unfair impediment to trade. The president added that “other Countries that refuse our magnificent Beef are ON NOTICE.”

BP will exit its role in a massive green hydrogen production facility planned in Australia as the British oil major refocuses on the fossil fuels that drive its profits. The company told its partners in the Australian Renewable Energy Hub that it plans to leave the project as both operator and equity holder, according to a statement from a BP spokesperson on Friday.

What happened overnight

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

US stocks ended last week posting record gains amid a trend which may extend after the US and European Union reached a trade agreement. Keeping with the positive tariff vibes, Aussie and Kiwi could build on last week’s gains after a report that their largest trading partner, China, is expected to extend its tariff truce with the US by another three months. Australian inflation data on Wednesday will be key to a possible interest-rate cut next month, while New Zealand has business and consumer confidence numbers due. A flat open for Australian stocks is expected thus far.

The US and European Union agreed on a hard-fought deal that will see the bloc face 15% tariffs on most of its exports, including automobiles, staving off a trade war that could have delivered a hammer blow to the global economy.

A convoy of golf carts at the Trump Turnberry golf course in Turnberry, Scotland, UK on Sunday, July 27, 2025.  Photographer: Chris Ratcliffe/Bloomberg

Wall Street pros are staring down a pivotal week that will likely set the tone for the rest of the year in markets and the economy. First and foremost is the conclusion of the Federal Reserve’s meeting on Wednesday.

Thai and Cambodian leaders are set to hold talks on Monday in a bid to end the deadliest clash between the two Southeast Asian nations in over a decade, a peace initiative driven by US President Donald Trump, who used the threat of tariffs to press for a ceasefire.

What to watch

• Sales Results: Boss Energy, Perseus Mining, Stanmore Resources

One more thing...

Oscar-winning director Christopher Nolan’s upcoming movie is sparking controversy in North Africa, with the decision to shoot some scenes in a long-disputed territory incurring the ire of a rebel group fighting for independence. Nolan's choice to film in the Atlantic city of Dakhla may garner the most attention for Universal Studios after strong criticism from the Polisario Front, an armed group that claims to be the legitimate representative of the indigenous people of Western Sahara.

The Atlantic coast in Western Sahara near Dakhla. Photographer: ThCh/iStockphoto