Crypto News: Santos CEO's gamble

Good morning and welcome back, it's Ainsley here with all the news you need to get your working week going.

Today's must-reads:
• Santos CEO's ambitious plans
• RBNZ seen holding rates
• Aussie, Kiwi set to outperform

Santos Chief Executive Officer Kevin Gallagher is racing to speed up an ambitious growth strategy that would cement the firm as an international contender ranking alongside Woodside Energy and Eni — all while managing impatient investors and circling suitors. If he falters, the $17 billion company's lagging share price leaves it vulnerable as one of the most sought-after targets in the sector.

Kevin Gallagher, chief executive officer of Santos. Photographer: Brent Lewin/Bloomberg

Over in New Zealand, the central bank is expected this week to say interest rates need to stay high for a sustained period. The Reserve Bank will keep the Official Cash Rate at 5.5% for an eighth straight meeting Wednesday, according to all 20 economists in a Bloomberg survey.

The delay to rates cuts in New Zealand and Australia means their currencies are poised to outperform global peers. The typically risk-sensitive currencies were the top performers among a G-10 peers last quarter, both climbing around 2% against the greenback despite a surge in volatility in global markets.

Oversea-Chinese Banking Corp. hired a senior resources banker from Commonwealth Bank of Australia to lead its expansion into commodities lending, according to people familiar with the matter. Jeff Heazlewood started last week in OCBC's Sydney office as executive director for corporate and project finance.

Central bankers are spending considerable time fretting about artificial intelligence and its ability to play havoc with prices, jobs and the security of banking, writes Daniel Moss for Bloomberg Opinion. But one thing it won't threaten is their own power.

A left-wing coalition is on course to win the most seats in France's legislative election in a surprise blow to far-right leader Marine Le Pen, who had hoped to form the next government. The New Popular Front, which includes the Socialists and far-left France Unbowed, is poised to get between 172 and 210 seats in the National Assembly, according to early projections from five polling companies.

Supporters of the far-right National Rally wave French flags at the party headquarters following voting during the first round of legislative elections in Henin-Beaumont, France. Photographer: Cyril Marcilhacy/Bloomberg

President Joe Biden faces a fresh round of hazards from members of his own party as he seeks to salvage his embattled reelection bid and fend off calls from Democratic lawmakers to step aside. Frank discussions scheduled among elected Democrats, including a meeting of House members on Sunday afternoon, may pose new risks to the president's political future.

Hedge funds piled into short bets against Tesla right before the electric vehicle maker unveiled a set of numbers that triggered a hefty share-price rally. Those contrarian bets now threaten to saddle the hedge funds behind them with losses.

Indian Prime Minister Narendra Modi will visit Russia on Monday for the first time in five years at a time when Moscow is deepening its embrace of New Delhi's rival, China. Modi is set to meet with Russian President Vladimir Putin during the visit, which will stretch into Tuesday.

All times Sydney

• 11:30 a.m.: Australia May loan data

For decades, banks have been lamenting that a lack of data prevented them from automating FX markets like they had in equities. But swift adoption of algorithms in recent years has that changing — and fast. Before the pandemic, just 22% of hedge funds were using the technology to execute their currency trades. Now, close to half of them are. But without a human to intervene, there's a heightened risk that something could go awry, especially in periods of extreme volatility.