ScoMo appointment kickstarts stockmarket and Aussie dollar
WITHIN minutes of Scott Morrison winning the leadership challenge yesterday the stock market jumped, the Aussie dollar surged and Australia’s “triple A” credit rating was deemed safe.
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WITHIN minutes of Scott Morrison winning the leadership challenge the stock market jumped, the Aussie dollar surged and the country’s triple A credit rating was deemed safe.
The business world sees Mr Morrison as a balanced leader who has already made sensible policy decisions as Treasurer and Immigration Minister.
Business leaders and lobby groups welcomed Mr Morrison’s appointment yesterday but said he must act quickly to steady the economy, boost investment, reduce electricity prices and repair the dumped corporate tax cut policy.
Labor powerbroker Graham Richardson said he sent devout Christian Mr Morrison a text just before he walked into the party room saying he was praying for him.
“He replied straight away and said ‘look at the extremes I have to go to make you pray’,” he laughed. “I think Scott Morrison and Josh Frydenberg was by far the best team they could have picked.”
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He said Mr Morrison was a warrior who could save the Liberals from the “horrible defeat” Malcolm Turnbull was “drifting towards”.
“We have had four lousy prime ministers in a row and let’s hope we get a good one and I think Scott Morrison has that opportunity,” he said.
Shortly after being announced as the next Prime Minister at 12.50pm the ASX 200 share index gained 0.2 per cent, rising off a three-week low of 6238 points to hit 6256 points.
The Aussie dollar surged from US72.50c to an intraday high of US72.90c, and ratings agency Moody’s said the changes in leadership would have “no implications for Australia’s sovereign credit profile.”
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Australian Industry Group chief Innes Willox said Mr Morrison’s priorities should be building a stronger economy and a more inclusive society.
“For business, we hope the new administration will among other things focus on navigating a way to broader tax reform, delivering affordable energy and addressing the gaps in our education and training system, which are contributing to ongoing skill shortages,” he said.
Westpac chief executive Brian Hartzer said the Australian economy needs to attract investment for business people to take risks.
“Political stability plays an important role in this. We welcome the continuity Scott Morrison will bring in his role as prime minister,” he said.
Australian Chamber of Commerce and Industry acting CEO Jenny Lambert congratulated Mr Morrison but warned he needs to implement a policy agenda quickly.
“His government needs to act with a sense of urgency and an appreciation of the long term to make Australia the best place in the world to do business — so that Australians can have the jobs, living standards and opportunities to which they aspire.”