Morning everyone. Although he could still face years in prison for two charges of transportation to engage in prostitution, Sean “Diddy” Combs fell to his knees in relief and his supporters celebrated wildly outside after a jury in New York found the music mogul not guilty of the more serious charges of sex trafficking and racketeering. A Guardian Australia analysis shows the big four banks are not making it easy for customers to get bonus interest despite watchdog recommendations, auditors have condemned the navy’s handling of bribery allegations, and a Victorian city is bidding to be the “capital of big things”.
Storm eases |The damaging weather system that has brought widespread havoc to much of coastal New South Walesis expected to ease today. But heavy conditions willcontinue along parts of the coastand thousands remain without power.
‘Factional hacks’ |Newly elected Liberal senator Jess Collins hashit out at “factional hacks”in the party’s NSW branch, insisting a push for quotas to boost female representation is the wrong approach for trying to beat Labor at the next election.
All at sea |Defence officials failed to properly document and investigate bribery allegations made against navy contractor officials,a scathing audit reporton the multibillion-dollar commissioning and maintenance of two military ships has found.
Bank blank |More than 18 months after regulatory advice that Australia’s major banks should help customers qualify for bonus interest rates on savings products, several of the recommendations have not been implemented by the big four,an analysis by Guardian Australia has found.
Pear share |The regional Victorian city of Shepparton is in the running to be the“capital of big things”with a $1.3m plan to build a giant pear to go alongside the world’s largest Murray cod.
Trump’s‘big, beautiful bill’|The House of Representativesis at a standstillas Republican leaders continue to try to rally holdouts against Donald Trump’s sweeping tax cut and spending legislation, after it cleared the Senate with the narrowest of margins. And after last-minute negotiations, the US and Vietnamstruck a trade agreementthat sets 20% tariffs on many of the south-east Asian country’s exports.
Exclusive |The Israeli military used a 230kg bomb – a powerful and indiscriminate weapon thatgenerates a massive blast waveand scatters shrapnel over a wide area – when it attacked a target in a crowdedbeachfront cafein Gaza on Monday, evidence seen by the Guardian has revealed.
Combs guilty |A New York Jury has found Sean “Diddy” Combsguiltyof two countsof engaging women in prostitution but was cleared of the more serious offences of sex trafficking and racketeering, after a closely watchedseven-week federal trialmarked by emotional and graphic testimony. Outside the court, supporters danced andcelebrated the verdict. Here are some key momentsfrom the court drama.
Reeves’ tears |The UK chancellor, Rachel Reeves,appeared to be left in tearsat prime minister’s questions as the Tory leader, Kemi Badenoch, attacked the government over its U-turn on welfare cuts. That climbdown leaves the governmentwith its authority shreddedand a £5bn hole to plug.
Drought threat |As Europe’s heatwavemoved eastwards, a new report says that drought is pushing tens of millions of people around the worldto the edge of starvation.
Bougainville’s rocky path to independenceNour Haydarspeaks to Ben Dohertyabout the road to independence for Australia’s Pacific neighbour and the risk of repeating mistakes from the past.
Sorry your browser does not support audio - but you can download here and listen $https://audio.guim.co.uk/2025/07/02-24676-FS_Bougainville_ch_020725_1645.mp3
It’s been miserable being a fan of North Melbourne in recent years. But the AFL club’s centenary celebrations are a chance for everyone involved to show that their investment in top-end picks and highly talented youth might just be about to pay off,writes Martin Pegan.
After years of fighting with her sister,Lucinda Price writes todayabout how it took their father’s cancer diagnosis for them “to form a truce after 26 years of full-pelt warfare … Our hatred just silently slipped away. I guess I felt as though my parents finally deserved to experience having children who didn’t hate each other”.
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Rugby union |Queensland Reds put up a good fight but the British & Irish Lions had too much class as the second tour match ended in a52-12 defeatfor the local side in Brisbane last night.
Tennis |British No 1 Emma Raducanu set up a huge third-round match against Aryna Sabalenkaafter beating 2023 championMarketa Vondrousova at Wimbledon, while defending men’s champion Carlos Alcaraz breezed through against plucky Ollie Tarvet. British tennis player Jodie Burrage has said she has had to stop herself looking at her phonedue to online abuse– some from gamblers, some from about her appearance – after her first-roundWimbledonexit.
Cricket |India’s captain, Shubman Gill, made an unbeaten century as he dug in to steady his team andhold off England’s bowlerson the first day of the second test at Edgbaston.
Women’s football |Euro 2025 hosts Switzerlandwere defeated by Norway2-1 this morning after Finland secureda narrow winagainst 10-player Iceland in the opening match. And Matildas star Ellie Carpenter has joined Sam Kerr at Chelseawith a big move from Lyon.
TheAustralianclaims the public servicehas grown to a record sizeunder the Albanese government. The management of Victoria’s water wouldbe reshapedto enshrine traditional owners as rights holders under a proposal from the truth-telling inquiry, theAgereports. TheCourier Maillooks at how the Brisbane-based beauty product business Lucas Papawwent from near-bust to boomin five years. And residents on the south coast of NSW might not have seen many in the past couple of rain-drenched days but this season’s whale sightingsare at a record high, theMercuryreports.
Economy |New vehicle sales figures for June released at 11am and international trade data from the ABS at 11.30am.
Brisbane |The Queensland deputy premier, Jarrod Bleijie, gives an Olympics update.
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And finally, here are the Guardian’s crosswords to keep you entertained throughout the day. Until tomorrow.
Quick crossword
Cryptic crossword