MARKET TALK: Investors Mull Implications Of Rudd/Gillard Showdown

23rd Jun 2010 22:26

2126 GMT [Dow Jones] As Australia's Prime Minister Kevin Rudd faces a leadership showdown with his deputy Julia Gillard at 2300 GMT, equity investors will be considering implications of both potential outcomes. Reports last night suggested that Gillard had the support of the Labor Party's Right faction, which should give her the numbers to take out Rudd. BHP Billiton (BHP.AU), Rio Tinto (RIO.AU) rose in New York overnight on speculation that Gillard would get up and could look to either dump or water down the government's proposed Resource Super Profits Tax. Given how much damage the mining sector's campaign has wrought on the government, that wouldn't be a bad conclusion to jump to, although its worth noting that Gillard seems to have been onboard with the tax from the beginning and may even look to take a tougher stance than Rudd on the planned tax. BHP Billiton rose 2.1% in New York and Rio Tinto 2.3%. If Gillard wins, other companies caught up in the mining tax cross fire, such as OneSteel (OST.AU) and Boral (BLD.AU), could also benefit. ([email protected]) Contact us in Singapore. 65 64154 140; [email protected] (END) Dow Jones Newswires June 23, 2010 17:26 ET (21:26 GMT)