Good morning, it’s Ben here in chilly Canberra, this is what’s making headlines this morning.

Today’s must-reads:
• Treasurer Jim Chalmers issues warning on economy
• Iron ore futures sink on falling China demand
• PM Albanese misses out on a meeting with Trump

What's happening now

Australia’s economy and budget need further ballast to withstand the latest rounds of global volatility, Treasurer Jim Chalmers said, even as he highlighted that the nation is better positioned than many developed-world counterparts. Chalmers will address the National Press Club in Canberra on Wednesday starting at 12.30 p.m.

Iron ore headed for the lowest close since September on a seasonal slowdown in demand and signs Chinese mills are curbing steel output. Futures fell for a fourth day in Singapore, sinking below $93 a ton. Rain in southern China and heatwaves in the north have slowed construction, Shanghai Metals Market said in a note.

Iron ore falls onto stockpiles at the Fortescue Metals Group Ltd. Cloudbreak mine in the Pilbara region of Western Australia. Photographer: Carla Gottgens/Bloomberg

Prime Minister Anthony Albanese’s first in-person meeting with Donald Trump was canceled after the president decided to leave a Group of Seven summit early to focus on the conflict between Israel and Iran, in a blow to the Australian government’s hopes for progress on tariff talks.

Despite the cancellation, the American Chamber of Commerce in Australia says there are still positive signs for the relationship between Washington and Canberra, and sees a chance for the leaders to meet at the next Quad gathering in India. AmCham Australia CEO April Palmerlee shares her outlook on Bloomberg Television’s Australia Ahead.

Please click on the photo above to watch the full interview.

One of Australia’s top asset managers has frozen new long-term investments in the US, citing mounting uncertainty over President Donald Trump’s policies. AMP’s main concern is a proposal to lift taxes on US income of non-US businesses, Head of Portfolio Management Stuart Eliot said in an interview.

Australia set new guidelines on the types of projects eligible for sustainable finance, aiming to accelerate investment in emissions reduction in polluting industries like agriculture, mining and energy.

KKR & Co. has agreed to buy Australia’s Zenith Energy, a provider of off-grid power systems, from a group including Pacific Equity Partners, OPSEU Pension Trust and Foresight Group Holdings. The investment firm didn’t provide a value for the deal, but said in a statement that it followed Zenith’s completion of a A$1.9 billion refinancing.

Australia's Port of Darwin has become a lightning rod for the fragile relationship between the US and China — but while national security concerns are warranted for many of the ports that Beijing controls or owns, this is hardly the one to worry about, writes Bloomberg Opinion’s Karishma Vaswani.

What happened overnight

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

Risk assets including US stocks, along with Aussie and kiwi dollars were trounced overnight as president Donald Trump pressured Iran for an “unconditional surrender” in its conflict with Israel. Report that Trump met with national security advisers on next steps was taken by markets as increased probability of the United States joining Israel directly in the conflict. Capital fled to havens such as the US dollar and Treasuries which both rose while oil resumed its advance by rallying over 5%. No surprise that ASX futures are pointing to a weak opening in local equities. Westpac leading indexes are the pick of today’s Australian calendar while component inputs to tomorrow’s first quarter GDP feature on New Zealand’s.

President Donald Trump’s meeting with his national security team in Washington on Tuesday lasted over an hour and the White House provided no immediate statement afterward. Trump posted a demand for Iran’s “UNCONDITIONAL SURRENDER” and warned of a possible strike against the country’s leader, Ayatollah Ali Khamenei.

Donald Trump departs following a group photo during the G7 Leaders' Summit in Canada. Photographer: Pool/Getty Images

India’s aviation safety regulator found no major safety concerns with Air India’s fleet of  Boeing 787 jets during ongoing inspections following a crash last week that killed 241 passengers and crew.

Abu Dhabi is boosting its ambitions to build a top liquefied natural gas producer with its biggest energy deal, as the petrostate targets a market it sees as key to its economic growth, leading a group that’s offered $19 billion for Australia’s Santos.

International shipping accounts for more planet-warming greenhouse gas emissions than Japan. But the commercial shipping industry is chasing a novel carbon-free propulsion technology as it pursues a lofty climate goal: nuclear power.

Morgan Stanley posted record Asia revenue of US$7.64 billion last year, topping arch-rival Goldman Sachs Group Inc. for the third-straight time. The bank is now eyeing US$10 billion in revenue within five years, its Asia chief Gokul Laroia said in a rare interview from his Hong Kong office.

What to watch

All times Sydney:
• 12.30 p.m. — Treasurer Jim Chalmers addresses National Press Club

One more thing...

Denmark’s capital city of Copenhagen rose to first place in a global livability ranking, with three Australian cities — Melbourne, Sydney and Adelaide — all making the top ten. Austria’s capital, Vienna, lost its top spot as the world’s most livable city due to recent terrorism scares, according to the Economist Intelligence Unit’s 2025 Global Livability Index. Melbourne came in ranked fourth, with Sydney sixth and Adelaide at number nine.

Copenhagen’s entertainment and restaurant scene beside the canal in Nyhavn district. Photographer: UCG/Universal Images Group Editorial