| The U.S. Federal Reserve held its rate and scrapped its "patient" approach in a prelude to a possible cut. Asian equitiy futures may rise after U.S. stocks rallied for a third day. And an Australian hedge fund bags a 74% gain on millennials and iron. Here are some of the things people in markets are talking about today. Holding Steady U.S. Fed chief Jerome Powell is ready to lower rates, just not quite yet. The FOMC shrugged off President Trump's demand for an immediate cut by leaving its benchmark unchanged while indicating a readiness to ease for the first time in more than a decade. Officials cited economic "uncertainties," dropped their "patient" mantra and forecast a larger miss of their 2% inflation target this year. Powell said he intends to serve his full four-year term, despite Trump's repeated criticism that he's not doing enough to boost the economy. Stocks Rally Asian equity futures look set to continue the upward momentum as U.S. stocks rallied for a third day and yields on shorter-term maturity Treasuries tumbled on the Fed's dovish tone. The dollar weakened against every major currency. Oil slipped as record U.S. gasoline consumption and a steep drop in crude inventories failed to ease concerns about tepid demand. Australia's Fix Australia's government said it's committed to tackling structural flaws in its A$2.8 trillion ($1.9 trillion) pensions industry that have eroded retirement savings and cost people billions of dollars in unnecessary fees. The government will try again to stop young workers automatically being charged for life insurance through their pension plans, and will provide better options for drawing on savings, Senator Jane Hume will tell a Bloomberg conference Thursday. Poker Playin' Apple is playing poker with China, Wedbush said. Moving 15% of its iPhone production out of the country would be a "gargantuan endeavor," laden with risks like supply-chain disruption and higher costs, the investment firm said. Nikkei reported earlier that Apple had asked key suppliers to calculate the cost of shifting 15% to 30% of their production to Southeast Asia. Millennials and Iron The shopping habits of millennials have helped fuel hefty gains at Australia's Regal Funds' Atlantic Absolute Return Fund, which shot up 74% through May, boosted by winning bets on buy-now, pay-later service Zip, and iron ore miner Fortescue. The out-sized gains stand in contrast to many global active money managers, who have adopted a cautious approach amid the escalating U.S.-China trade war and slowing economic growth. The Eurekahedge Hedge Fund Index gained 3.9% in the first five months of the year — half the advance of the MSCI World Index. What we've been reading This is what's caught our eye over the last 24 hours. And finally, here's what Cormac's interested in this morning The world's stockpile of negative-yielding debt has surged past $12 trillion, thanks to Mario Draghi's clearest signal yet that more monetary easing could be on the horizon. The European Central Bank president's comments in Sintra, Portugal, helped propel French 10-year yields to zero for the first time, while Swedish and Austrian benchmarks turned negative. The moves might end up giving a boost to demand for junk bonds, according to the Wells Fargo Investment Institute.  With such a large percentage of fixed-income assets yielding below zero, the "search for yield" could return, as investors seek to maintain required income levels, said strategist Justin Lenarcic in a note Monday. Investors will have to take on more credit risk, which could increase demand for lower-rated bonds and leveraged loans, he argued. It seems the flight to safety in global bond markets could also lead to a dash for trash. Cormac Mullen is a Cross-Asset reporter and editor for Bloomberg News in Tokyo. Even before Trump's trade war, China was the world's biggest story. It's reshaping the global economy — but its ascent hasn't come without major problems. Sign up to get Next China, a weekly dispatch on where the country stands now and is headed next. Before it's here, it's on the Bloomberg Terminal. Find out more about how the Terminal delivers information and analysis that financial professionals can't find anywhere else. Learn more. | 
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