Morning everyone. Donald Trump says he might order a strike on Iran, or he might not, pointing out that “nobody knows” what he’s going to do in response to the Israel-Iran conflict. He also spoke about the potential for a peace deal. We have an expert team of reporters and commentators to try to make sense of the crisis and what it means for the world.
We also report on what Anthony Albanese will risk if he goes to Europe to try to meet Trump, how Labor can reform the economy, the highest paid executives in Australia, and an incredible win for Queensland in Origin II.
Australia
Star performers | Australia’s bogong moths are guided by the stars as they navigate up to 1,000km to a place they’ve never been before, new research has concluded, making them the first invertebrates confirmed to use celestial navigation.
Albanese’s dilemma | Anthony Albanese will have had plenty of time on the long flight back from Canada to consider whether he should make a snap trip to Europe next week to get a meeting with Donald Trump. But our chief political correspondent, Tom McIlroy, says it would risk a second humiliating snub.
Liberal rethink | Special tax breaks for mothers should be considered as part of an overhaul of the tax system to better support “modern families”, a Liberal MP has argued.
Levy break | Developers in New South Wales will be able to choose between paying a levy of $12,000 per lot, or building infrastructure such as roads and parks themselves as an “in kind payment” in a further push to speed up the construction of new housing in the state.
News extra | News Corp’s chief executive, Robert Thomson, is the highest-paid chief executive of an Australian-listed company, according to an analysis of pay figures, taking home $42m last year.
World
Iran warning | Donald Trump has left the world hanging over whether he will join Israel’s war on Iran after the country’s supreme leader rejected US calls for surrender and warned that joining the war (pictured) would lead to “irreparable damage”. We look at how the Israeli assumption about the US joining in is being tested, why the conflict is bad news for Russia, and how the Iranian opposition is positioning itself in a fast-moving situation. Australians stranded in Israel are waiting anxiously as the conflict intensifies. In the US, a majority of Trump voters oppose intervention, while Tucker Carlson confronted Ted Cruz in a televised spat that exposes the rift in Republican ranks. Follow all the developments live.
Fed hold | The US Federal Reserve kept interest rates on hold overnight despite calls by Donald Trump that it should cut them, but policymakers did signal that they might make some cuts later this year.
Pride of Europe | Dozens of MEPs from around Europe have pledged to go to Budapest to take part in this month’s Pride march in defiance of Hungary’s hardline prime minister, Viktor Orbán.
Trans rights | A Tennessee state law banning gender-affirming care for minors can stand, the US supreme court has ruled, in a devastating loss for trans rights supporters.
Heist charges | Seven men in California have been charged over the “largest jewellery heist in US history” after allegedly stealing $100m worth of gold, diamonds, rubies, emeralds and luxury watches from an armoured truck.
Full Story
The Air India crash and the miracle of seat 11A
Aviation journalist Jeff Wise talks about last week’s Air India crash in which 270 people died – and the story of how one passenger survived.
In-depth
Jim Chalmers has asked people to forget their narrow interests and consider the national interest in economic reform. But that, Patrick Commins argues, is a big ask in a risk-averse political climate where a relatively minor tweak on taxing super provoked uproar. With so much talk about how to increase productivity, Greg Jericho whistles up some of his trademark charts to suggest five things that the government could do to help.
Not the news
Midwinter is nearly here and that means it’s getting cold inside as well as outside. So we asked an interior designer, Emma Blomfield, to come up with some tips about how to make your home feel a bit cosier.
Sport
Rugby league | Queensland showed huge character to hold off a remarkable second-half comeback by the NSW Blues and clinch a 26-24 win in the second game of the State of Origin series in a rain-soaked Perth last night. Cameron Munster was the difference as he showed why he’s been made Maroons captain.
Rugby union | Winger Harry Potter expects the Lions series to be “pretty monumental” after being named as a surprise pick for the Wallabies squad. For their opponents, Maro Itoje will play his first game as captain when the Lions take on Argentina tomorrow.
Football | Manchester City’s defence of their Club World Cup crown has started with a 2-0 win over Morocco’s Wydad, while Real Madrid are in action against Al-Hilal of Saudi Arabia.
Media roundup
The driver who crashed a stolen LandCruiser through a Melbourne shopping centre has been urged to give themselves up, the Herald Sun reports. There are more doubts over Tasmania’s new stadium after a state MP claimed to the Mercury that the federal government has capped spending on the project. People on the south coast of NSW are being urged to take part in a huge survey of migrating whales, Bega News reports.
What’s happening today
Melbourne | Victorian Liberals meet this evening over the future of former leader John Pesutto.
Sydney | Closing submissions in the fair work hearing between NSW government and psychiatrists.
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Brain teaser
And finally, here are the Guardian’s crosswords to keep you entertained throughout the day. Until tomorrow.
