This AI fund is beating stock markets

Happy Friday! It's Keira here in Sydney, here's our top stories to finish your week...Today's must-reads:• AI hedge fund• Wine downturn• Cyc

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Happy Friday! It's Keira here in Sydney, here's our top stories to finish your week... Today's must-reads: • AI hedge fund • Wine downturn • Cyclone threatens iron ore

What's happening now

A Sydney-based hedge fund startup that uses artificial intelligence to do work typically handled by analysts has outperformed the global stock market in its first six months while slashing research costs. Australia accused the Chinese air force of an "unsafe and unprofessional interaction" with one of its military aircraft over the South China Sea during a routine maritime surveillance operation. Global consumers' desire to drink fewer, but pricier, bottles has squeezed profits coming from low-cost brands at Treasury Wine Estates, and will drag down full-year earnings, Australia's top producer warned. Just the one for today, thank you. Photographer: Carla Gottgens/ Australia's iron ore hub is bracing for the strongest cyclone to hit the region since at least 2007, threatening port facilities and big mines operated by companies including Rio Tinto and BHP. Australian property is some of the least affordable in the world, putting the dream of home ownership out of reach of many residents. In our latest podcast, Rebecca Jones asks government reporter Ben Westcott about Anthony Albanese and Peter Dutton's diverging plans to fix the country's housing crisis. Listen and follow The Bloomberg Australia Podcast on Apple, Spotify, on YouTube, or wherever you get your podcasts. Terminal clients: Run {NSUB AUPOD <GO>} on your desktop to subscribe. Top executives from Australia's A$4.1 trillion pensions industry are heading to Washington this month to meet with senior officials from President Donald Trump's administration to discuss investment opportunities in the US. Chemist Warehouse made its backdoor debut on the ASX yesterday, merging with Sigma Healthcare to create a $5.5 billion retail and pharma giant. Watch our video to get the inside story.

What happened overnight

Stocks rose, with the S&P 500 increasing 1%, as President Donald Trump moved to impose reciprocal tariffs but didn't implement them immediately. Gold headed toward a fresh record. Australian shares are expected to open higher this morning. The wheels for peace talks between Russia and Ukraine have been set in motion after a meeting between Vladimir Putin and Donald Trump earlier this week. But whatever the US president decides is his goal for Ukraine, one thing is clear: Europe isn't ready to shoulder its huge share of the burden. KKR & Co. is considering investing in Nissan Motor Co., people familiar with the matter said, after the struggling Japanese automaker's talks to combine with rival Honda Motor Co. failed.

What to watch

Australia to Sell A$700m 1.5% 2031 Bonds at 11 a.m. in Sydney

One more thing...

The owner of Tokyo-based  7-Eleven has tried for years to upgrade the chain's reputation in the US, but stores in North America are underperforming faster than they can open new ones. Now, a rival Canadian retailer is betting $47 billion that it can do a better job.

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