Your morning Briefing

Welcome to your morning roundup of what’s making news and the must-reads for today.

Hello readers. Here is your two-minute digest of what’s making news today.

A man looks at the main board at the Australian Securities Exchange building in central Sydney, Australia, February 6, 2018. REUTERS/Daniel Munoz - RC1D0D32F980

Wild ride

US stocks are roaring back in late trade after big falls rattled global markets, as futures point to an Australian rebound. The biggest global sharemarket rout in six years has stripped $84 billion from Australian share portfolios in the past two days, with further falls in prospect as ­financial markets fear inflation will bring the era of low interest rates to an end. Scott Morrison appealed for calm after the S&P/ASX 200 followed the lead of Wall Street, diving 3.2 per cent, saying the outlook for the Australian economy ­remained bright. Keep up with the latest market movements and developments in our live blog Trading Day. Few countries should be as worried about the prospect of sharply higher global interest rates as Australia and we need to take stock, writes Adam Creighton. Judith Sloan suggests a correction was a matter of time and the fact the Dow Jones Industrial Average rose to more than 25,000 in 12 months was probably “too good to be true”.

“It is wise to keep a cool head in these times and understand the difference between the sharemarket and the real economy. The fundamentals of the Australian economy ­remain sound.”

Scott Morrison

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Deputy Prime Minister and Federal Minister for Infrastructure and Transport Barnaby Joyce addresses the media outside the Commonwealth Parliamentary Offices in Sydney on Wednesday, January 31, 2018. (AAP Image/Daniel Munoz) NO ARCHIVING

Barnaby’s baby

The third parliamentary day of the year is expected to be dominated by share market volatility, the Adani coalmine and company tax cuts. Labor is yet to refer its Longman MP Susan Lamb to the High Court over her citizenship issues, putting pressure on the government to use its numbers in the House of Representatives to make a hostile referral. And it has been revealed that Deputy Prime Minister Barnaby Joyce is expecting a baby with a former member of his staff. Sources close to the Nationals leader last night confirmed the ­relationship with former media adviser Vikki Campion, 33. Keep up with all the latest from parliament in our live rolling blog, PoliticsNow.

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06 Feb 2018 Bowen, Qld - Whistsunday councillor Mike Brunker outside Adani's Abbot Point coal terminal - Photo: Cameron Laird (Ph: 0418 238811 [e-mail])

Adani warning

Labor frontbenchers have warned Bill Shorten that the opposition cannot be seen as “anti-coal” and urged him to shift the Adani debate away from “green” issues and on to public funding and alleged flaws in the approval process. Labor right-wing MPs have begun to push back against the ­opposition’s lurch to the left on ­issues such as Adani, claiming that the party is dangerously exposed to appearing anti-coal and anti-jobs. Labor sources have confirmed the issue was raised in shadow cabinet on Monday night but was a “discussion” rather than a heated debate. They said it had been noted that the Opposition Leader had begun in recent days to “moderate” his language. Jamie Walker reports, meanwhile, that Mike Brunker has a message for Labor: if you turn your back on Adani, say goodbye to north Queensland at the next election.

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Rod Clement Margin Call cartoon for 07-02-18Version: (Original)COPYRIGHT: The Australian's artists each have different copyright agreements in place regarding re-use of their work in other publications.Please seek advice from the artists themselves or the Managing Editor of The Australian regarding re-use.

McGrath may sue

“Mr Property” John McGrath has finally made contact with his chairman Cass O’Connor, as the Sydney real estate millionaire considers legal action against Fairfax Media after it reported on the weekend he had a $16.2 million gambling debt. Margin Call reveals yesterday’s communication was their first direct contact in the more than three days since The Sydney Morning Herald reported that the property guru owed millions to his favourite bookie Tom Waterhouse’s William Hill.

“McGrath’s chairman Cass O’Connor has been in contact with John McGrath today and will be making no further comment on private discussions other than to assure you that John has indicated he is committed to executing the 2018 growth plans for McGrath as he has outlined recently to staff.”

John McGrath’s spokesman

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Magic Millions sales 6-1-16 , Trainer Liam Birchley . Picture Mike Batterham

Cup runner named

A Melbourne Cup runner is named in documents connected to the biggest horse doping investigation the head of the Racing Appeals and Disciplinary Board has seen. This bombshell development came as board chairman Judge John Bowman convened a directions hearing in the case involving 271 breaches of the Australian Rules of Racing, allegedly by eight people.

“I think it’s potentially the biggest racing inquiry I can remember, given the sheer number of people involved and the number of charges,” Judge Bowman said. The Australian can revealed one of many text messages retrieved from a mobile phone at the request of Racing Victoria’s Integrity department referred to a Melbourne Cup runner.

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Kudelka’s view

Jon Kudelka Letters Cartoon for 07-02-2018Version: (650x366)COPYRIGHT: The Australian's artists each have different copyright agreements in place regarding re-use of their work in other publications.Please seek advice from the artists themselves or the Managing Editor of The Australian regarding re-use.