Australia has a new Prime Minister - TDS

Annette Beacher, Chief Asia-Pacific Macro Strategist at TD Securities, notes that after a tumultuous week of votes and spills in Australia, Mr Scott Morrison has been voted 45-40 to lead the Liberal Party, which automatically makes him Prime Minister.

Key Quotes

“Prior PM Malcolm Turnbull will resign, triggering a bi-election in his blue ribbon seat of Wentworth.”

“PM Morrison is the most market-friendly option, having successfully negotiated through multiple portfolios such as Social Security, Border Security, and more recently presiding over a substantial improvement in the budget balance as Treasurer.”

“Parliament and the markets will be closely watching post-vote polls to gauge if Morrison can even up the balance towards the Liberal-National coalition and away from the Labour Party under Bill Shorten.”

“The skew towards the Labour Party at this stage ensures they they will form government at the next election.”