Tuesday, 1 July - Pedal down and drive

July 01, 2025

Good morning, it’s Tuesday, 1 July. In your Squiz Today…

  • Defence spending is in focus as Penny Wong heads to the US

  • Batten down the hatches in coastal NSW - a huge weather front is coming

  • And bending it like the bots…

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Squiz the Weather

Squiz Sayings

“He’s perhaps the best songwriter to come out of England.”

Said popstar Olivia Rodrigo about The Cure’s Robert Smith as she brought him out during her set at Glastonbury this weekend. Smith’s written some fab tracks - but with Lennon, McCartney, Bush and Bowie in the mix, he’s got stiff competition for that title…

A rock and a hard place

The Squiz

Everyone’s got an opinion on whether Australia should raise its defence spending at the moment. China’s ambassador to Oz Xiao Qian yesterday said that they (aka our largest trading partner) would like our spending to stay at its current level of about 2% of our gross domestic product, thanks very much… He says anything more would “threaten world peace and stability”. But there’s a small problem with that - the US (aka our major strategic ally) said a few weeks ago that Australia should lift spending to 3.5% of GDP, which would see it hit about $100 billion a year. At the moment, PM Anthony Albanese is staying the course - he says we’re spending enough. 

Why is this a hot topic?

At last week’s NATO Leaders Summit, members agreed to raise their defence spending to 5% of GDP (aka the value of everything a country produces). We’re not a member of NATO, but maintaining our current levels of spending would make us an outlier among our Western allies. That’s why commentators say Australia needs to weigh up what making no change might cost us - for example, a potential exemption from US President Donald Trump’s Liberation Day tariffs. A 90-day pause on some of those tariffs is set to expire late next week, and it’s unclear whether it will be extended or if the rates will change. As it stands, the tariff rate on most of our goods is 10% - but the PM says that rate “should be zero”. 

Is that all we need to consider?

Not by a long shot... There’s another looming date to clock as well - in mid-June, the US announced a 30-day review of AUKUS, the defence pact involving a billion-dollar nuclear subs deal between (umm the hint is in the name…) Oz, the UK and the US. That review will wind up sometime in July, and Team Albo is keen for the US to stick with the deal - another reason to keep the US on our good side. So with all that to consider, Foreign Minister Penny Wong set off yesterday for a meeting of her counterparts in the Quad, a partnership between 4 countries who all keep a very close eye on China’s economic and military influence - that’s us, Japan, India and the US. Wong’s meeting with US Secretary of State Marco Rubio in particular will have plenty on the agenda…

Nothing to see here - just a chat with our Head of State...

You know The Squiz is serious about helping future generations become critical consumers of news and information - and so is Australia's Governor-General. Her Excellency Sam Mostyn has taken the Squiz Kids hotseat to answer questions from kids nationwide. From "can you ban homework?" to why democracy matters, she gives her take on why media literacy is crucial. And she invited us to Government House (squeal...). That Squiz Kids Q&A is out now - have a listen here.

Squiz the Rest

Pushing towards a deal

Israeli officials are headed to Washington DC this week as negotiations continue over a ceasefire in Gaza, with US President Donald Trump suggesting a deal could be reached within the week. He and Israeli PM Benjamin Netanyahu are pushing for that to happen, with Netanyahu saying that “many opportunities have opened up” after their military action in Iran last week - including to free the remaining hostages. Reports say about 20 of them are still in Gaza, with the militant group Hamas holding the bodies of 30 others… And as that unfolds, Israeli forces have returned their attention to the strip. Reports say at least 58 people were killed when a beachfront cafe and schools being used as shelters were targeted in strikes overnight. 

Time to batten down the hatches…

… Is the message from NSW emergency services, who have warned that a powerful “bomb cyclone” will hit the east coast this week. Daniel Hayes from the Bureau of Meteorology has described it as a fast-forming low-pressure system bringing torrential rain, thunderstorms and strong winds. After gaining momentum yesterday in a process known as ‘bombogenesis’, the storm is expected to pummel the Mid North Coast down to the Illawarra region today and tomorrow. And it could get dangerous… The NSW SES has all 11,000 of its volunteers on standby, with 300mm of rain forecast to fall over the Mid North Coast and more than 200mm of rain expected to fall over Sydney. Residents in the affected areas have been told now’s the time to secure outdoor items and prep emergency kits in case of power outages…

Debating a big bill

Heads up: we’re likely to hear about US President Donald Trump’s ‘Big Beautiful Bill’ this week as it advances towards a final vote in the Republican-controlled Senate. Here’s a summary, but essentially, it’s a 940-page budget bill that’s being touted as the Trump administration’s most significant piece of second-term legislation, with cuts to social safety net spending (like Medicaid, food stamps and other programs) and tax breaks. Voting has begun this morning, and if it gets through, analysts say it will have far-reaching impacts for working-class Americans - meaning it’s attracting a lot of critics. The most high-profile is Trump’s 2024 election backer, billionaire Elon Musk - he reckons it’s giving “handouts to industries of the past while severely damaging industries of the future”. Trump’s not swayed - he’s given a 4 July deadline to sign the bill into law.

Nail-biting negotiations

A deal for Star Entertainment’s Brisbane casino and hotel complex to be sold to its Hong Kong-based shareholders has hit a snag, with the investors threatening to walk away unless an agreement is reached in 5 business days. To recap: Chow Tai Fook Enterprises and Far East Consortium (which each own 25% stakes in the Brisbane casino) offered to buy out the remaining 50% from debt-ridden Star Entertainment for $53 million in March, with the handover due by 30 April. Spoiler alert: that never happened, with those in the know saying Star execs weren’t happy with parts of the original deal. Reports say Star’s in a better financial position than it was in March (when it was days away from running out of cash…), but things won’t be golden if the deal falls through.

Turn it offside and on again

The idea of robots playing sports has been around in films for years, but it’s (slowly) becoming a reality… In China over the weekend, 4 teams made up entirely of robots played some 3-on-3 soccer/football matches all by themselves. Using AI to work out where to go and how to score, the robots were made by the same company and then programmed and developed by teams from 4 Chinese universities before taking to the pitch. It wasn’t all smooth sailing - several robots had to be stretchered off for treatment repairs, and the spectacle won’t exactly have football fans abandoning the Premier League anytime soon - but it’s all part of the journey towards the World Humanoid Robot Games in mid-August. Faster, higher, stranger…

Apropos of Nothing - Showbiz shakeups edition

The new Brad Pitt racing drama F1 is a hit, winning the weekend box office in the US. Worth noting: this is the best financial performance ever for a film distributed by Apple, and given the budget of about $300 million, it needed to be… 

Bad news for those who prefer their cars a little angrier - the 11th and final Fast & the Furious film has been delayed to 2027, but despite the death of actor Paul Walker, star Vin Diesel says his character Brian O’Conner might still (somehow) make a return… 

And after almost 10 years as the host of Survivor Australia, Jonathan LaPaglia has been axed from the role. LaPaglia said on Insta that he was “blindsided” (of course…) by the call - his last season will air this year. Just when you need an immunity idol…

Squiz the Day

Penny Wong will attend a QUAD meeting with US Secretary of State Marco Rubio, US Defence Secretary Pete Hegseth and their Indian and Japanese counterparts - Washington, US

7.15am (ACST) - The opening of a 40-year-old time Telstra capsule - Adelaide

6.30pm (AEST) - The Lowy Institute Poll: Australian attitudes to the world, a panel discussion - Sydney

Happy new financial year - there’s a bunch of changes coming in, from an increase to the minimum wage and parental leave entitlements to superannuation, so here’s a good explainer to get you across them…

Coming of the Light festival, celebrated by Torres Strait Islanders

Territory Day - Northern Territory

🇨🇦 Canada Day - anniversary of the foundation of Canada (1867)

Independence Day in Rwanda

International Chicken Wing Day

Birthdays for Blondie lead singer Debbie Harry (1945), musician John Farnham (1949), and F1 racer Daniel Ricciardo (1989)

Anniversary of:

  • the birthday of Princess Diana (1961)

  • the SOS morse code signal becoming the worldwide standard for help (1908)

  • the beginning of the Battle of the Somme, one of the biggest battles of WWI (1916)

  • the founding of the Chinese Communist Party (1921)

  • the release of the Sony Walkman (1979)

  • the establishment of the International Criminal Court (2002)