Howdy folks, Rich Henderson here in Bloomberg’s Melbourne bureau. Making headlines today:

Today’s must-reads:
• Future Fund trims US exposure
• Back to business for Lachlan Murdoch
• Consumers remain downbeat

What's happening now

The A$252 billion Future Fund trimmed exposure to US markets and is keeping close tabs on President Donald Trump’s pressure campaign against the Federal Reserve, according to Chief Executive Officer Raphael Arndt. The fund posted a 12.2% return for the year through June.

It’s back to business for Lachlan Murdoch. After cementing control of the family’s media empire in a messy succession drama, he can now exert control for decades to come.

Consumers are downbeat. A Westpac gauge of confidence fell 3.1% to extend the number of months it has remained below 100 — the level pessimists outweigh optimists — to 43. By contrast, business conditions advanced 2 points in August with forward orders climbing to now be in positive territory for the first time in two years, a National Australia Bank survey showed.

Debates over immigration have been reignited after a series of rallies across Australia, some hijacked by Neo-Nazi voices. On Bloomberg TV’s Australia Ahead, Anna Boucher, University of Sydney Associate Professor discusses the deep divisions in the country. Click image to play.

Bloomberg

AI chatbots that can encourage suicide or hold sexually explicit conversations pose a danger to children, according to Australia’s online safety regulator, and will be captured in new digital restrictions.

Su-Lin Ong, chief economist for Australia at RBC Capital Markets in Sydney, will retire at the end of January after nearly three decades at the bank.

What happened overnight

Here’s what my colleague, market strategist Mike “Willo” Wilson says happened while we were sleeping…

US stocks rose and bonds fell in what was a choppy session with markets caught between downward revisions in the labor force released Tuesday, and August inflation readings over the next two days. A gauge of the dollar bounced off an almost seven-week low to close higher, while Aussie and kiwi reversed earlier gains. China inflation is the only data point of note today, though it’s unlikely to move any local FX or rates dials. ASX stock index futures indicate a steady open.

President Donald Trump has floated the idea of sweeping new US and EU tariffs on India and China to push President Vladimir Putin to negotiate with Ukraine, according to people briefed on the discussions. The US is willing to mirror tariffs imposed by Europe on either country, one of the people said.

A gauge of US jobs growth was revised down by a record amount, in a further sign of fragility that adds pressure on the Federal Reserve to cut interest rates. The number of workers on payrolls will likely be revised down by a record 911,000, or 0.6%, according to the government’s preliminary benchmark revision.

French President Emmanuel Macron named longtime ally Sebastien Lecornu as France’s new prime minister, the country’s fifth in two years. His challenge will be to pass a budget through a divided parliament, a task that was beyond his two previous predecessors. 

Bank of Japan officials are leaving the door open to another interest rate hike this year, despite domestic political instability, according to people familiar with the matter. The central bank is likely to keep its key rate unchanged this month but has two further opportunities to adjust setting sin October and December, the people said.
 

What to watch

Nothing major scheduled
 

One more thing...

Apple introduced its thinnest-ever iPhone and new Pro versions with enhanced cameras and more battery life, betting that a flurry of smartphone innovation can entice shoppers this holiday season. The new skinnier model — dubbed the iPhone 17 Air — is just 5.6 millimeters thick, making it about a third slimmer than Apple’s current handsets. The device drew the loudest cheers from an audience assembled at Apple’s headquarters in Cupertino, California, where the company debuted the new products Tuesday.

The Apple iPhone Air during an event at Apple Park campus in Cupertino, California. Photographer: David Paul Morris/Bloomberg