White House AI agreement calls for implementing robust internal controls to monitor AI models' capabilities and consistency.

Since May Australian house prices have fallen markedly, though analysts still call it an orderly adjustment; only a minority of mortgage borrowers are in negative equity. Robust employment and tight housing supply have provided support. Institutions warn that two further RBA hikes before year-end — taking the official cash rate to a near 20-year high — could push the correction into a pressure-driven sell-off. Markets broadly expect the RBA to announce a fourth hike today at 0430 GMT (Beijing 12:30).

Chicago Fed president Austan GOOLSBEE said US inflation has run above the Fed's 2% target for more than five-and-a-half years, calling prolonged above-target inflation "playing with fire." He warned that if supply shocks prove persistent, the Fed may need to rethink prior policy logic that largely ignored such shocks. GOOLSBEE said policymakers need clearer evidence that inflation is declining and that previously deemed transitory factors are fading before considering rate cuts. He flagged large fiscal deficits as stimulative and a potential overheating risk, and said market expectations of AI-driven productivity gains could contribute to near-term overheating, so the Fed should monitor productivity trends. GOOLSBEE added oil prices could fall quickly but the slower issue is the pace of refinery restarts; energy prices, AI investment and fiscal stimulus could all affect the future inflation path.