Retail giant Kmart has been pinged for breaching shoppers’ privacy by scanning the faces of unwitting customers returning products at dozens of its stores.

Privacy Commissioner Carly Kind found the company in breach after it collected people’s personal and sensitive information through a facial-recognition technology (FRT) system designed to tackle refund fraud.

Between June 2020 and July 2022, Kmart used the technology at 28 of its stores to capture every person who lined up at a returns counter.

“Relevant to a technology like facial recognition, is also the public interest in protecting privacy,” the commissioner said on Thursday.

“I do not consider that (Kmart) could have reasonably believed that the benefits of the FRT system in addressing refund fraud proportionately outweighed the impact on individuals’ privacy.”

Kmart argued that it was not required to obtain customer consent because of an exemption in the Privacy Act that allowed for information to be collected to tackle unlawful activity or serious misconduct. 

But after a three-year investigation, the commissioner found sensitive biometric information of every individual who entered a store was “indiscriminately collected” by the facial-recognition system.

She said other, less-intrusive methods were available to Kmart to address refund fraud.

The volumes of biometric data collected on thousands of individuals without their knowledge showed “a disproportionate interference with privacy”, the commissioner said.

Kmart has been ordered not to use the facial-recognition technology again and will have to publish an apology to customers in stores and on its website within 30 days.

The Wesfarmers-owned company said it was disappointed with the decision about its “limited trial” of facial-recognition technology and it was reviewing appeal options.

Controls to protect customers’ privacy had been put in place during the scheme, it said in a statement.

“Images were only retained if they matched an image of a person of interest reasonably suspected or known to have engaged in refund fraud,” Kmart said.

The determination is the second issued by the Office of the Australian Information Commissioner on the use of facial recognition in retail settings. 

In October, Wesfarmers-owned hardware chain Bunnings was found to have contravened the privacy of its shoppers across 62 of its stores. It is also appealing the finding.

A major Australian gas producer rejects any suggestion the withdrawal of a suitor signals valuation issues, saying the bidder was positive about the group.

Abu Dhabi National Oil Company late on Wednesday pulled back its indicative proposed $US18.7 billion ($A28 billion) cash takeover for Santos at $US5.262 per share.

The decision by the bidder’s foreign investment arm XRG, alongside Abu Dhabi sovereign fund ADQ and private equity firm Carlyle, not to proceed to a binding offer caps off a months-long takeover saga.

“While the consortium maintains a positive view of the Santos business, a combination of factors, when considered collectively, have impacted the consortium’s assessment of its indicative offer,” it said.

“While disappointed not to move forward, XRG, and its consortium partners, are responsible, disciplined investors with a clear focus on creating value for our shareholders and driving long-term growth.”

On Thursday, Santos highlighted that the XRG consortium had confirmed it maintained a positive view of its business and “respect for its management team”.

The XRG consortium wouldn’t agree to an appropriate allocation of risk between itself and Santos shareholders to finalise a scheme of implementation agreement, it added.

“This included the obligation of the XRG consortium to secure regulatory approvals and the provision of a reasonable commitment to the development and supply of domestic gas.”

Santos chair Keith Spence emphasised the group’s “low-cost operating model” and strong free cashflow.

“Our strategy is clear: generate cash, reward shareholders, reinvest to backfill and sustain our infrastructure, and build and grow our production, while continuing to operate safely and reliably,” he said.

with Reuters

US President Donald Trump has hailed the special relationship between his nation and Britain as he paid a gushing tribute to King Charles during his historic second state visit, calling it one of the highest honours of his life.

It was a day of unprecedented pomp for a foreign leader.

Trump and his wife Melania were treated to the full array of British pageantry. Then, the president sang the praises of his nation’s close ally.

“The bond of kinship and identity between America and the United Kingdom is priceless and eternal. It’s irreplaceable and unbreakable,” Trump said in a speech during a lavish banquet at Windsor Castle, family home to British monarchs for almost 1000 years.

Referring to the so-called special relationship between the two nations, Trump said: “Seen from American eyes, the word special does not begin to do it justice.”

Britain rolled out the royal red carpet, giving Trump the largest military ceremonial welcome for a state visit in living memory. 

Trump made little secret of his delight at being not just the first US leader, but the first elected politician to be invited for two state visits.

“This is truly one of the highest honours of my life,” he said.

British Prime Minister Keir Starmer hopes the trip will aid his government as it seeks to deepen economic ties, secure billions of dollars of investment, ease tariffs and allow him to press the president on Ukraine and Israel.

Companies including Microsoft, Nvidia, Google and OpenAI have already pledged STG31 billion pounds ($A64 billion) in British investments over the next few years, in AI, quantum computing and civil nuclear energy.

Starmer also wants further progress on trade, after Britain secured the first deal with Trump to lower some tariffs, a win that King Charles pointed to in his speech.

“The United Kingdom was your partner in the first trade deal of your administration, Mr President, bringing jobs and growth to both our countries,” the King said.

“And no doubt we can go even further as we build this new era of our partnership.” 

While there were many Trump supporters in crowds at Windsor in London, several thousand people marched to protest against the state visit.

“I quite simply dislike everything that Trump and his administration represent around the globe,” retiree Bryan Murray said.

Amongst the guests at Wednesday’s banquet was Rupert Murdoch, whose Wall Street Journal publication the president is currently suing in a $US10 billion ($A15 billion) defamation case over an article linking the president with Epstein. 

While the focus will now turn to geopolitics and trade when Starmer hosts Trump at his Chequers country residence, Wednesday was all about ceremony.

Trump and Melania joined Charles, his wife Queen Camilla and other royals and dignitaries for a carriage procession, with the route lined by 1300 British service personnel.

Later, the Trumps viewed historical items from the Royal Collection relating to the US, and then visited St George’s Chapel, the final resting place of Queen Elizabeth, who hosted Trump for his first state visit in 2019, to lay a wreath on her tomb. She died in September 2022.

There was a further military parade and a flypast by Britain’s Red Arrows aerobatics team, but poor weather meant British and US F-35 military jets – a symbol of bilateral defence collaboration – could not join. 

The Trumps also found time for a private meeting with the King’s elder son Prince William and the heir’s wife Kate, which was described by the prince’s spokesperson as “warm and friendly”. 

Trump later praised “beautiful” Kate and said William was “going to have unbelievable success in the future”.

As for Charles, the 76-year-old monarch, he was a “very, very special man”, the president said.

With AP

The Federal Reserve has cut interest rates by a quarter of a percentage point and indicated it will steadily lower borrowing costs for the rest of this year as it responds to concerns about weakness in the job market.

Only new governor Stephen Miran, who joined the Fed on Tuesday and is on leave as the head of the White House’s Council of Economic Advisers, dissented in favour of a half-percentage-point cut.

The rate cut, along with projections showing two more quarter-percentage-point reductions are anticipated at the remaining two policy meetings this year, indicate Fed officials have begun to downplay the risk that the administration’s voluble trade policies will stoke persistent inflation, and are now more concerned about weakening growth and the likelihood of rising unemployment.

The cut, the first move by the policy-setting Federal Open Market Committee since December, moves the policy rate to the 4.00 per cent-4.25 per cent range.

“The Committee is attentive to the risks to both sides of its dual mandate and judges that downside risks to employment have risen,” the Fed said in its policy statement. 

“Job gains have slowed, and the unemployment rate has edged up.”

Fed chair Jerome Powell will hold a press conference later in the day to elaborate on the latest statement and economic outlook.

New economic projections showed policymakers at the median still see inflation ending this year at three per cent, well above the central bank’s two per cent target, a projection unchanged from the Fed’s last set of forecasts published in June. 

The projection for unemployment was also unchanged at 4.5 per cent and economic growth slightly higher at 1.6 per cent versus 1.4 per cent.

Compared to the stagflationary risks contained in the last set of projections, with the Fed slowing rate cuts to head off inflation, the new projections show an emerging sense among officials that they can head off any rise in unemployment with a faster pace of rate cuts, while inflation eases slowly next year.

Fed officials have gradually warmed to the idea that US President Donald Trump’s tariffs would have only a temporary effect on inflation, and the latest forecasts are consistent with that view.

The move to a more consistent pace of cuts was backed by Fed governor Christopher Waller and Vice Chair of Supervision Michelle Bowman, Trump appointees who dissented over the policy decision in late July to hold rates steady.

Miran dissented on the latest cut and appears to have pencilled in the steepest rate cuts in projections issued after he joined the Board of Governors on Tuesday. 

In the newest “dot plot,” one rate projection of 2.875 per cent for the end of 2025 stands out as being three-quarters of a percentage point below the next lowest one. 

Trump has urged steep rate cuts.

Also voting in favour of the decision was Fed governor Lisa Cook, who attended the meeting despite Trump’s effort to fire her and after two courts supported her challenge of his attempted dismissal.

Australia’s jobs market is forecast to remain in good health, despite an expected rise in the unemployment rate.

Labour force figures to be released by the Australian Bureau of Statistics on Thursday could show the jobless rate ticked up to 4.3 per cent in August, retracing a 0.1 per cent drop to 4.2 per cent the month before.

That would be in line with the Reserve Bank’s forecasts for the unemployment rate, meaning it would have little impact on the central bank’s cash rate considerations, economists at JP Morgan said.

“That said, at these levels there is little scope for any further deterioration without a dovish shift in the bank’s tone/forecast,” said Ben Jarman, Tom Kennedy and Tom Ryan in a research note.

With jobs growth trending in line with overall population growth, recent data paints a picture of a labour market in balance.

“Indicators of labour demand generally have steadied over the past year or so at healthy levels,” economists at NAB said.

While strong employment growth in 2023 and 2024 was driven primarily by a rapid expansion in the health and care economy workforce, jobs growth in those sectors has flatlined since the start of 2025, they said.

That gives the private sector more room to pick up hiring without the risk of re-tightening the broader labour market and subsequently driving up inflation.

“The labour market remains near balance and has not been a source of upward pressure on inflation over the past year or so,” NAB’s economics team said.

Anthony Albanese’s failure to land two major deals with Papua New Guinea and Vanuatu might not be a good look when he visits the United States next week.

After Labor in opposition accused the former Coalition government of “dropping the ball” in the Pacific, the Albanese government has worked to improve Australia’s engagement in the region.  

But the two failures to sign off on major agreements with PNG and Vanuatu are not helping.

The prime minister insists the delay in signing a “crocodile” defence treaty with PNG has “no downside”, brushing aside claims it’s an embarrassment for Australia. 

He left Port Moresby on Wednesday without the hoped-for defence pact after the PNG government’s cabinet failed to reach a quorum to sign off on the landmark agreement.

Instead, Mr Albanese and counterpart James Marape only managed a communique laying out the key tenets of the pact.

Mr Albanese also returned empty-handed from a visit to Vanuatu last week, failing to land a $500 million deal that would have given Australia veto power over Chinese investment in critical infrastructure.

Mr Albanese told reporters in Port Moresby after Wednesday’s signing of the communique Australia expected the pact to be finalised in coming weeks.

When asked if it was embarrassing to come away without a signed treaty, Mr Albanese said the communique outlined precisely what was in it.

“There is no downside in this whatsoever,” he said.

Mr Marape said there was no “sticking point” holding up the signing and he expected a “quick turnaround” for his cabinet to approve it.

The Australian opposition said the Vanuatu agreement setback and the PNG pact delay was “just another embarrassment of the prime minister’s own making”.

“Repeated failures in the Pacific are undermining Australia’s standing in the region,” three shadow ministers said in a statement.

Shadow foreign minister Michaelia Cash, shadow defence minister Angus Taylor and shadow Pacific Islands affairs minister Jason Wood said the Coalition wanted the PNG treaty to succeed for regional security.

Next up for the prime minister is travel to the US for the annual gathering of world leaders at the United Nations General Assembly.

A long sought-after face-to-face with US President Donald Trump now appears confirmed, as Australia seeks to plead its case over trade tariffs.

The US expected Australia to maintain a strong security presence in the Pacific region and the failure of its PNG and Vanuatu deals meant missed potential, Lowy Institute research fellow Oliver Nobetau told AAP.

“This could have demonstrated that Australia and Papua New Guinea, it sees itself as a big brother, can maintain regional stability within the Pacific,” he said. 

The stalled agreements were probably going to reinforce US perceptions  Australia could do more when it came to security in the Pacific, Mr Nobetau said.

“Which is a bit of a shame noting the amount of work that Albanese and his government … have tried to do to claw back their influence in the Pacific.”

The government needed to go back to the drawing board to find a different diplomatic approach to instil confidence, especially among Melanesian nations, to sign on to such agreements, Mr Nobetau said.

Labor will put its environmental credentials on display when it unveils its ambition for climate action.

Prime Minister Anthony Albanese is poised to announce Australia’s anticipated 2035 emissions reduction target on Thursday.

The climate policy will first need to be signed off by cabinet, with a meeting of the government’s senior ministers to take place in Sydney beforehand.

Treasury has modelled an emissions reduction cut between 65 -75 per cent, put forward by the Climate Change Authority.

But the Albanese government has been called on by environmental groups to set a target of no less than 80 per cent.

The Australian Conservation Foundation said a target that high would “give Australians and our environment the best chance of holding global warming at the safest levels now possible”.

Business groups on the other hand stand at the opposite end of the spectrum, warning a target higher than 70 per cent would risk more than $150 billion in exports and send companies offshore.

Under the Paris Agreement, signed a decade ago, members must increase their emissions targets every five years and cannot water them down.

Nations that signed up must submit their new targets by the end of this month.

Australia has legislated a 43 per cent emissions reduction on 2005 levels by 2030.

The Paris agreement, which Australia and 195 other parties adopted in 2015, aims to limit global temperature rises to 1.5C and less than 2C.

Treasurer Jim Chalmers confirmed on Wednesday the economic cost of the government’s 2035 target will also be released.

He said Australia walking away from net-zero would be the “worst possible outcome” from both an economic and environmental point of view.

In her first major economic speech as opposition leader, Sussan Ley lowered tensions among her own rank and file by indicating a potential change in the coalition’s climate policy.

“We will not have net zero at any cost because the cost can be too high,” she told the Committee for Economic Development of Australia in Melbourne.

“And right now, it looks like the cost is too high when you consider what this government is about to do with its Paris targets.

“I’ll hold that conversation until they actually make their announcement.”

The coalition remains divided over the key climate target, with Liberal MP Andrew Hastie threatening to quit the frontbench if the net-zero commitment isn’t dumped.

The opposition home affairs spokesman has confirmed his own leadership ambitions, but says Ms Ley has his support as leader.

Following its massive election defeat in May, the coalition is conducting a wide-ranging review which includes scrutiny of its energy policy.

US President Donald Trump has kicked off his historic second state visit to the United Kingdom amid unprecedented pomp, intense security, technology investments and protests as King Charles and other royals welcomed their country’s closest ally.

Trump and his wife Melania are being hosted by the King at Windsor Castle, the oldest and largest inhabited castle in the world and family home to British monarchs for almost 1000 years, where he is being treated to the full array of pageantry from a carriage procession to a lavish banquet.

The UK laid on what it said was the largest military ceremonial welcome for a state visit in living memory and Trump, an overt royal fan, has made little secret of his delight at being not just the first US leader but the first elected politician to be invited for two state visits.

“It’s a very special place,” Trump said, adding that he loved the UK.

Prime Minister Keir Starmer is hoping to use that sentiment to the UK’s advantage as his government seeks to use the trip to cement the two countries’ “special relationship,” deepen economic ties, secure billions of dollars of investment, discuss tariffs and press Trump on Ukraine and Israel.

Companies including Microsoft, Nvidia, Google and OpenAI have already pledged 31 billion pounds ($A63 billion) in UK investments over the next few years in AI, quantum computing and civil nuclear energy.

Starmer also wants further progress on trade after the UK secured the first deal with Trump to lower some tariffs. 

“They want to see if they can refine the trade deal a little bit,” Trump said on Tuesday.

But while Starmer is banking on the royals to help cajole the Anglophile president, whose mother came from Scotland, many pitfalls for the UK’s prime minister remain.

Polls suggest Trump is unpopular in the UK and Starmer, faced with plummeting poll ratings of his own and economic woes, will need to show that his royal trump card can reap benefits.

Awkward questions about late sex offender Jeffrey Epstein could also come to the fore.

Last week, Starmer sacked Peter Mandelson as the UK ambassador to Washington DC over his ties to Epstein, which could lead to questions for both the prime minister and Trump, whose own relationship with the financier has also come under scrutiny.

While there was a massive security operation in place in Windsor, police said four people had been arrested on Tuesday after images of Trump alongside Epstein were projected onto one of the castle’s towers.

Trump was not there at the time.

Crowds of Trump supporters gathered in Windsor but in London thousands marched to protest against the state visit.

“I quite simply dislike everything that Trump and his administration represent around the globe,” retiree Bryan Murray said.

Trump and Melania joined Charles, his wife Queen Camilla and other royals and dignitaries for a carriage procession on Wednesday, with the route lined by 1300 UK service personnel. 

The president, occasionally chatting and smiling with the King, then inspected a guard of soldiers who wore scarlet uniforms and bearskin hats.

Later, the Trumps viewed historical items from the Royal Collection relating to the United States.

The president was shown a letter sent from president Abraham Lincoln to Queen Victoria in 1862 expressing his condolences after the death of Prince Albert, which was described as a “defining moment” in the special relationship between the UK and the US.

Trump remarked “that is so amazing, that’s the real deal” and leant forward to have a closer look.

The US president and his wife then visited St George’s Chapel, the final resting place of Queen Elizabeth, who hosted Trump for his first state visit in 2019, to lay a wreath on her tomb. 

She died in September 2022.

There was a further military parade and a flypast by the UK Red Arrows aerobatics team.

The Trumps also found time for a private meeting with the King’s “very handsome” elder son Prince William – as the president has called him – and the heir’s wife Kate, which was described by the prince’s spokesperson as “warm and friendly”.

Events on Wednesday will conclude with an opulent state banquet where the King and president will make speeches.

with PA

Abu Dhabi National Oil Company’s international has withdrawn its proposed $US18.7 billion ($A28 billion) takeover offer for Australian gas producer Santos.

ADNOC’s foreign investment arm XRG alongside Abu Dhabi sovereign fund ADQ and private equity firm Carlyle, will not make a binding offer for Santos, XRG said in a statement, capping a months-long takeover saga.

“The XRG-led consortium announced today that it has withdrawn its indicative offer and will not proceed with a binding offer for Santos,” the company said in a statement.

“While the consortium maintains a positive view of the Santos business, a combination of factors, when considered collectively, have impacted the consortium’s assessment of its indicative offer.”

“While disappointed not to move forward, XRG, and its consortium partners, are responsible, disciplined investors with a clear focus on creating value for our shareholders and driving long-term growth.

“The consortium extends its appreciation to the Santos management team for their assistance in the process, as well as all levels of government and other stakeholders for their positive and constructive engagement. This reinforced our confidence in Australia’s energy and investment environment, as well as the other locations that Santos operates.”

Santos said last month that there was no certainty the talks would result in a binding takeover agreement for what would be the largest all-cash takeover in Australian history.

The collapse of the deal comes about 20 months after merger talks between Santos and larger rival Woodside ended with no deal being agreed.

A promise to kickstart an emerging low carbon fuel industry has been sandwiched between dire warnings of Australia’s climate threats and the expected release of national targets to slash emissions.

The federal government’s $1.1 billion to support the production of cleaner fuels has been announced on the backdrop of intense debate over Australia’s climate ambition, with 2035 emissions-reduction targets expected within days.

The announcement follows a troubling preview of the nation’s future as temperatures climb, including concerning exposure to floods and other coastal hazards.

Former Australian Defence Force chief Chris Barrie has been warning of widespread human displacement because of climate change, with as many as 80 million people from Bangladesh potentially seeking shelter in Australia as natural disasters become more severe.

Spruiking the low carbon fuels package, Treasurer Jim Chalmers said the threat of climate change and the economic opportunity of net zero could not be separated.

“The worst possible outcome, from an economic point of view and an environmental point of view, would be if we walked away from net zero,” he said at an oil refinery in Brisbane alongside Climate Change Minister Chris Bowen.

Net zero and its expected economic burden remains a fractious issue for the federal opposition, with a Liberal MP threatening to quit the frontbench if the party continues to back climate targets.

The economic cost of Labor’s 2035 targets will be unveiled alongside the emissions-reduction goals, Dr Chalmers confirmed.

Treasury has modelled a single figure within the 65-75 per cent range floated by the Climate Change Authority.

Low-carbon fuels, such as sustainable aviation fuel, are made from agricultural feedstocks like sugarcane, tallow, canola and cooking oils.

They can reduce aircraft emissions by 80 per cent compared to traditional jet fuel, on some estimates.

The exact design of the 10-year Cleaner Fuels Program is still being worked out, but it will likely involve grants to help companies make their processes more efficient.

The funding would start flowing from 2028 and would help hard-to-abate industries reduce their carbon emissions, Mr Bowen said, while also protecting the nation’s fuel supply.

Australia imports about 90 per cent of its liquid fuels.

Mr Bowen defended the practice of subsidising industries “starting from scratch”, arguing such spending would unlock private investment in the green industries and jobs of the future.

The announcement was welcomed by big business and the tourism sector.

Tourism and Transport Forum chief executive officer Margy Osmond said the investment would position Australia as a global leader in sustainable aviation, cruise and transport fuels.

“Ultimately, Australia is a long-haul destination and once you are here, most of our great sights and adventures are also long-haul,” she said

“Our capacity to access sustainable fuel for aviation, the cruise industry and onshore travel, is critical.”

Business Council executive director of policy Wendy Black said Australia had the natural advantages, feedstocks and expertise to become a global leader in sustainable fuels.

“But we need durable policy settings to unlock private investment at scale,” she added.