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Australia news as it happened: Liberals and Nationals split put on hold; Liberal Party claims leaked letter exposes McKenzie’s motive to split Coalition; Zoe Daniel considers recount for Goldstein

Cindy Yin and Hannah Hammoud
Updated ,first published

What we covered today

By Hannah Hammoud

Thanks for following our live news blog. That wraps up our coverage for today – we will have more for you in the next live news coverage.

Here’s a quick recap of the key stories:

  • The Coalition could reunite in coming weeks, as leaders Sussan Ley and David Littleproud pause action to seek a path forward that could reunite the parties.
  • A leaked letter is being used by the Liberals to argue that Bridget McKenzie planned the Coalition rift after Jacinta Nampijinpa Price’s defection to the Liberals.
  • Labor’s environmental reforms may advance amid Coalition disunity, with Ley open to talks.
  • Three people have been found dead and one more remains missing amid worsening floods in northern NSW.
  • In the Victorian seat of Goldstein, Zoe Daniel is considering calling for a recount after losing by 128 votes to Liberal Tim Wilson.
  • Rio Tinto has begun a global search to replace chief executive Jakob Stausholm, who will step down this year.
Sussan Ley and David Littleproud in question time earlier this year.James Brickwood
  • Prime Minister Anthony Albanese has announced the opening date for federal parliament, with politicians due to return to Canberra on July 22.
  • CFMEU national secretary Zach Smith will step down as head of the troubled union to focus on the Victorian branch, saying he can no longer answer for decisions taken by others.
  • New evidence and witnesses have emerged in the war crimes investigation into Ben Roberts-Smith, including video of him drinking from a prosthetic leg.

Thanks again for joining us.

ASX closes in the red as banks, energy stocks slump

By Staff reporters

The Australian sharemarket declined on Thursday after Wall Street slumped overnight under the weight of pressure from the bond market, where Treasury yields climbed on worries about the US government’s spiralling debt and other concerns.

The S&P/ASX 200 fell by 38.10 points, or 0.5 per cent, to 8348.70, ending a two-day winning streak that was driven by the Reserve Bank’s latest interest rate cut on Tuesday. Ten of the market’s 11 sectors declined, led lower by energy stocks, retailers, tech stocks and banks. The Australian dollar ground higher overnight, and was fetching 64.42 US cents at the time the sharemarket closed.

Wall Street slumped overnight, setting the scene for losses on the Australian market.AP

It was a sea of red across the local market, except for a few bright glimmers – one of them being the materials sector, which was sent higher once again by the gold miners. Northern Star Resources (up 5.4 per cent), Evolution Mining (up 2.2 per cent) and Newmont (up 2.3 per cent) all performed strongly as spot prices for the haven investment gold continued to rise.

Western diplomats scramble for cover as Israeli soldiers fire warning shots in West Bank

By May Angel

Jerusalem: Western countries including Canada and Britain have condemned a decision by Israeli soldiers to fire warning shots near their diplomats during an official visit to the occupied West Bank overnight.

The Israeli military said the large international delegation “deviated from the approved route and entered an area where they were not authorised to be” and that soldiers fired “warning shots to distance them away”.

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Footage shows individuals running to vehicles with diplomatic number plates as shots are heard in the distance. No injuries or damage were reported during the incident in Jenin.

“The IDF regrets the inconvenience caused,” the Israeli Defence Forces said in a statement, adding it was reviewing the incident.

France, Italy and Canada, which had diplomats among the delegation, said they had summoned the Israeli ambassadors to explain what had happened.

Reuters, AP, Bloomberg

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Rio Tinto boss to leave the $164b miner later this year

By Simon Johanson

A global search is under way to replace the boss of mining giant Rio Tinto, Jakob Stausholm, who will step down later this year.

The dual-listed company, which has shareholders in London and Australia, said it was conducting a search to replace its chief executive, although Stausholm will stay on and retain a seat on the board until a successor is appointed.

Jakob Stausholm will step down as Rio Tinto CEO after four years in the job.Trevor Collens

“Under Jakob’s leadership, Rio Tinto has restored trust with key stakeholders, aligned our portfolio with the commodities where demand growth is strongest, built a diverse and talented management team, and set a compelling growth trajectory,” Rio’s chair, Dominic Barton, said, thanking the Danish national for his contribution.

The company gave no reason for its chief executive leaving, other than to say it was a “natural moment” to appoint a successor.

Coalition split could help push through environmental reforms

By Hannah Hammoud

Speaking on Afternoon Briefing, Finance Minister Katy Gallagher says if the Coalition divorce were to remain, it could “potentially” help the government pass its proposed nature positive laws.

“The opportunity to get that legislation through needs a willingness from other non-government parties, in the Senate in particular, to get involved and be prepared to talk to us,” she said.

“[Environment Minister] Murray Watt is doing a lot of that consultation, he has been in Perth the last couple of days, starting off consultation there, and we want to get those laws through,” she says.

Joyce labels ALP politics as “exceptional”

By Hannah Hammoud

Joyce says if the Coalition were to reunite, the task of winning the next federal election has been made “much harder” given the recent instability between the warring parties.

“The Labor Party might fail in many areas, but their politics is exceptional,” he said. “And they would absolutely and utterly capitalise on that … I can see that coming a mile away.

“But it’s there. It’s happened. And now you’ve got to manage it.”

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Joyce focused on providing ‘good opposition’

By Hannah Hammoud

Nationals MP Barnaby Joyce has brushed off the question of whether he thinks Littleproud’s leadership is still tenable following his handling of the Coalition split.

Sussan Ley phoned Barnaby Joyce to try to heal relations with the Nationals.Alex Ellinghausen

“This is not a discussion for me about leadership … that is the furthest thing from my mind,” he said during his appearance on Afternoon Briefing.

“We have a job to do on behalf of the Australian people – even if they didn’t vote for us they still want us to be a good opposition.”

Exclusive: Zoe Daniel weighs up calling for a recount in Goldstein

By Cara Waters

Zoe Daniel is weighing up calling for a recount in Goldstein and is likely to point to the tight margin given the size of the electorate and some anomalies in the count.

Liberal Tim Wilson claimed victory in the Victorian seat over the teal independent on Tuesday after all votes were counted, with a margin of 128 votes.

Tim Wilson may face a recount.Paul Jeffers

The Australian Electoral Commission automatically undertakes a recount if the margin is under 100 votes, but candidates can also request a recount if they have sufficient grounds.

Daniel has been getting advice from data scientist Simon Jackman, who has pointed to the increased size of electorates since the 100-vote guidance was given in 2007 and to anomalies in the count.

Littleproud says hand was forced on timeline of Coalition decision

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Littleproud is asked whether the decision to split from the Liberal Party was made prematurely.

“Why did you split before giving the Liberal Party their own time to go back to their party room and have those discussions which they clearly also needed to have?” Caisley asked.

Littleproud and Ley agreed on Thursday to put Coalition spilt on hold.AAP

The Nationals leader said Ley never offered to him that the Liberal party room would meet to discuss.

“The timelines that we were asked to make a decision were predicated on those that were given to us,” he said.

“Obviously, we would’ve liked to negotiate over a longer time. But unfortunately, we couldn’t wait for months when a shadow cabinet needed to be appointed before we came back to parliament – it was going to be beyond the return to parliament.”

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Nationals leader ‘pleased’ with Coalition talks

By Hannah Hammoud

Littleproud has appeared on ABC Afternoon Briefing with Olivia Caisley, where he says he hopes the Liberal party will rethink their position on the four key policy issues in question.

“We wish that it hadn’t got to this, but we were serious about it. The only ones that can turn that decision around is the Liberal party room,” he said.

“... Now, I’m pleased to see that we could make some progress.”

The Nationals had demanded that four policies be enshrined in the next Coalition agreement: lifting the ban on nuclear energy, divestiture powers for supermarket chains, a $20 billion regional future fund, and service obligations for regional areas.

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