Crypto News: Santos bids mulled

Good morning, it's Georgie here in Sydney with the latest top news for you.

Today's must-reads:
• Aramco, Adnoc said to mull bids for Santos
• Retail sales jump by more than expected
• AustralianSuper shifts into equities on tech boom

Saudi Aramco and Abu Dhabi National Oil have been separately studying potential bids for Australia's Santos, Bloomberg News reported, according to people familiar with the matter. State-owned Aramco and Adnoc have been conducting preliminary evaluations of Santos as a possible acquisition target, the people said. Shares of Santos have gained about 1% in Sydney trading this year, giving the company a market value of A$24.9 billion ($16.7 billion).

Australian retail sales jumped by more than expected in May with spending largely driven by discounts in the face of elevated borrowing costs. Yields on policy-sensitive three-year bonds rose as rates traders boosted the odds for an interest rate hike this year.

Queenstown Airport is investing in new technology to mitigate the risk of runway overshoots as it prepares for more aircraft to descend on New Zealand's notoriously difficult landing strip.

The Queenstown International airport runway on the right. Photographer: Dianne Manson/Getty Images AsiaPac

AustralianSuper, the country's largest pension fund, is shifting money into equities on the expectation that artificial intelligence will fuel further gains in tech stocks. Meanwhile, Australian super funds are reducing their investments in hedge funds as regulatory scrutiny grows on fees and performance at Australian pension funds.

Wall Street traders sent stocks higher as bonds yields fell after a string of weaker-than-estimated economic reports reinforced the case for the Federal Reserve to start cutting rates this year. Aussie equity futures are in the green.

Joe Biden has told a key ally he's weighing whether to stay in the presidential race, the NYT reported — prompting a quick White House denial. Dozens of Democratic lawmakers may sign a letter demanding he withdraw, a senior party official said, as panic mounts that they'll lose seats in Congress. Kamala Harris is the top pick to replace him if he steps aside, Reuters said.

Britain's general election may only prolong the fierce ideological debate that has consumed the Conservative Party during their 14 years in power, even if they suffer the worst-case defeats. Labour leader Keir Starmer said he doesn't expect the UK to rejoin the European Union's single market or customs union in his lifetime.

The national carrier of Vanuatu, a South Pacific nation that's home to little more than 300,000 people, has become an unlikely investment target since liquidators at Ernst & Young took over in May.

An Air Vanuatu aircraft flies over the Royal National Park near Sydney. Photographer: Torsten Blackwood/AFP

In trying to block China's climb up the ladder of technological sophistication, the US may inadvertently be giving its rival a hand up, writes Bloomberg Opinion's David Fickling. By trying to hamper China's technological rise, America is only making it more powerful, Fickling argues.

• May international trade, imports and exports at 11:30a.m. (Sydney)

Dubai is building three new office towers in its financial district to meet rising demand, after reforms by the United Arab Emirates made it easier for expatriates to work and live in the country. Firms have also been drawn by the tax-free environment and a timezone that's conducive for trading with Asia, Europe and the US. Neighboring Abu Dhabi — where Australia's Barrenjoey recently opened an office — also stands as one of the few bright spots in global commercial real estate.

The ICD Brookfield Place mixed-use development, center, in the Dubai International Financial Centre (DIFC) district of Dubai Photographer: Natalie Naccache/Bloomberg