Cairns Mayor Terry James has provided an update on the town’s processed water supply after debris blocked the intake to the Crystal Cascades treatment plant. The town was left with only 30 hours of processed water available after devastating flooding brought on by Cyclone Jasper. Mr James revealed that “thankfully” the intake was unblocked on Monday as water was sent to critical infrastructure. “That’s the two hospitals in town, so they have got their water now because we had about 200 renal patients it would have affected greatly,” he told Sky News Australia. Residents are still advised to only use water for emergency purposes. Large parts of the region around Cairns were lashed with more than 300mm of rain over the past 24 hours.

AI Group Chief Executive Innes Willox says Australia thinks of its defence industry as a “silo” separate from the rest of industry after a new report suggested Australia needs to rethink defence to maximise participation. Australia’s defence industry will see a boost from the signing of AUKUS legislation in the US. “What we haven’t done properly to develop that speed and that surge capability – to build things when we really need it – is to really embed defence industry into our national industrial base,” Mr Willox told Sky News Australia. “We think of it now too much as a silo – defence industry is separate from the rest of industry. “We looked at France, Israel, the UK, Canada and Sweden, and they all do it in different ways, but the one key thread is that their defence industry is part of their national industrial base. “That’s how we need to think of things.”

New South Wales motorists could have their demerit points removed from their licence as the state government forges ahead on delivering an election promise. More than a million drivers could be eligible this year – if they follow road rules for another five weeks. Since the trial was announced, 400,000 drivers have incurred demerit points. The government hopes the initiative will reduce road fatalities on state roads. NSW Premier Chris Minns says demerits points will only be returned to drivers if they exercise “good driving behaviour” for a 12-month period.

Royal commentator Angela Mollard says social media has changed the way we see the monarchy and the royal family has responded to it "very well". Ms Mollard spoke with Sky News host Caroline Di Russo about the way Tony Blair may have “modernised” the monarchy after he became British prime minister in 1997. “Britain was different, and because Britain was different, the monarchy had to respond to that and we are still seeing that now as social media changes the way that we see the monarchy, the royals are having to respond to that,” Ms Mollard said. “And they’re doing it very well. “They’re very at the forefront of social media and using those channels to transmit their own messages.”

A group of Michigan Democrats say they will be "reluctantly" voting Joe Biden for a second term in the 2024 US presidential election. Speaking to NBC News host Kristen Welker, the voters expressed their concerns about the Commander-in-Chief's age and his capacity to lead the nation. The US President's disapproval rating has shored up in recent times, especially among African American and Hispanic communities who played a key role in his win against Donald Trump in 2020. According to a Fox News poll, 54 per cent of Democrats do not want to see Biden as their party's nominee for the upcoming election. While support for the US President is in a freefall, the Democratic Party does not have an alternative to contest against him for the presidential candidacy, Reuters reported.

Donald Trump continues to maintain a considerable lead over his competitors. Although recent comments made by the former US president on the topic of immigration have sparked controversy. New Fox News polling shows Mr Trump dominating the Republican field and leading US President Joe Biden in a hypothetical rematch. The new survey released shows Mr Trump would beat President Biden by four per cent – 50 to 46 per cent. Mr Trump was in New Hampshire on Saturday, where he had a lot to say about President Biden, his Republican competition – however, his comments on immigration are what generated fierce pushback from Democrats. “I think the real number 15, 16 million people into our country – when they do that, we got a lot of work to do,” Mr Trump said. “They’re poisoning the blood of our country; that’s what they’ve done.”

The UK's Foreign Secretary David Cameron has backed calls for a sustainable ceasefire in Gaza, warning too many civilians have lost their lives in the conflict. His comments will add to the growing pressure on Israel to suspend its military operations as the death toll surpasses 18,000. It is becoming clear the United States is losing patience with Israel due to rising civilian casualties and the vision of what happens when the fighting ends. In defiance to the Biden administration, Prime Minister Benjamin Netanyahu opposes calls for a revitalised Palestinian authority to govern the strip as an interim measure towards a two-state solution. As the IDF continues pressing further into Gaza, the Israeli leader is also adamant he will not bow to any international pressure on the timetable for the military operation.

Virgin has been forced to apologise to customers following a year of escalating delays and cancellations. The federal government is expected to release its monthly airline performance data this week. The results are expected to show its largest number of cancelled flights in 2023. Holiday travellers are being told to prepare for the chaos to continue into the Christmas period. It comes as the threat still looms of staff taking strike action as they struggle to reach a pay agreement with the carrier.

The US is seeing a "shift of thinking" on interest rates with markets starting to price in several rate cuts for 2024, according to CommSec’s Tom Piotrowski. “We have seen a very profound reappraisal of what’s going to happen with US interest rates over the course of next year,” Mr Piotrowski told Sky News Australia. He pointed out that this shift translated to the markets seeing their “biggest rally” since March 2020. “They fell about a third of a per cent last week.” Presented by CommSec.

Economists are “a bit surprised” at US Federal Reserve Chair Jerome Powell entertaining the idea of interest rate cuts, according to The Switzer Report Founder Peter Switzer. It comes as the US continues to see favourable inflation numbers. “But I think a lot of people were surprised with Jerome Powell … entertaining the idea that rate cuts may well come sooner rather than later,” Mr Switzer told Sky News Australia. “I think that really excited not only Wall Street, but global stock markets and we also picked up a bit of that positivity. “It’s looking more like the Santa Claus rally is starting early.”

The latest Newspoll shows support for Labor has rebounded with the two major parties no longer neck-and-neck after preferences. The last Newspoll for the year has seen Labor reassert its lead over the Coalition. Labor scored 52 per cent of the vote compared to the Coalition’s 48 per cent. It’s almost identical to the result the government achieved at the last federal election. Anthony Albanese currently has an 11-percentage point lead as the preferred prime minister over Opposition Leader Peter Dutton.