Good morning and welcome back, it’s Ainsley here with everything you need to know as the dust settles on the election.

Today’s must-reads:
• Albanese’s chance to fix the economy
• Australian assets may get post-election boost
• Westpac CEO sees rate-cut relief

What's happening now

Prime Minister Anthony Albanese shocked Australia by securing an historic win in Saturday’s election. Now the question is whether he’ll use that mandate to push through tough measures to overhaul the nation’s economy. His center-left government has the best chance in years to take the hard steps economists have called for to ignite growth.

A supporter holds a sign at the Labor Party election night event. Photographer: Brent Lewin/Bloomberg

Australia’s shares and currency may post a relief rally on expectations of policy continuity under Albanese. Local energy stocks in particular may benefit thanks to the ruling Labor Party’s support for the sector. The Australian dollar may get a further boost after it recouped losses since President Donald Trump announced reciprocal tariffs in early April and shifted the focus on a possible improvement in US-China trade ties. 

Australia’s conservatives fought and lost the weekend election on the MAGA hill, writes Andreea Papuc for Bloomberg Opinion. The historic win of progressives, less than a week after a similar result in Canada, showed Trumpian rhetoric is no substitute for cohesive policies.

Westpac’s profit met analyst expectations after reporting a boost in business lending and as Chief Executive Officer Anthony Miller said interest rate cuts are helping consumer sentiment. 

One of the world’s biggest manganese mines, located on an island off Australia’s northern coast, is poised to restart shipments after being shuttered for more than a year because of damage from a cyclone. The Groote Eylandt Mining Co. project — 60% held by South32, 40% by Anglo American — will restart shipments this month, according to people familiar with the matter.

New Zealand will replace its navy helicopter fleet in the first step toward building a combat-capable military and lifting its defense spending to more than 2% of gross domestic product. At least NZ$2 billion ($1.2 billion) has been set aside to pay for them, Defence Minister Judith Collins said.

What happened overnight

Here’s what my colleague market strategist Mike “Willo” Wilson says happened while we were sleeping…

US stocks surged with the S&P 500 on its longest winning streak in two decades as US-China diplomacy eased trade tensions and a strong US jobs report calmed fears about the economy. The only fly in the ointment is how much of the tariff impact has stained the data thus far. The buoyant sentiment sent Aussie to a new high for the year, gains which have held since Albo’s stunning victory. This week sees Australian building data and New Zealand jobs report feature. The latter is a big factor to RBNZ’s rate cut path and by extension the New Zealand dollar outlook.

Warren Buffett picked the final minute of his 60th shareholder meeting to drop a long-awaited announcement. Buffett, the 94-year-old architect and face of Berkshire Hathaway, said the gathering would be his last as head of the company. Buffett will hand Greg Abel the keys to a $1.2 trillion behemoth.

Greg Abel and his wife Andrea at the Allen & Co. Media and Technology Conference in Sun Valley, Idaho, in 2024. Photographer: David Paul Morris/Bloomberg

Trump said he is willing to lower tariffs on China at some point because the levies now are so high that the world’s two largest economies have essentially stopped doing business with each other.

Meanwhile, Trump insisted he doesn’t plan to fire Federal Reserve Chair Jerome Powell despite his sustained criticism over the pace of interest rate cuts. “Why would I do that?” he said in an interview on NBC’s Meet the Press with Kristen Welker that aired Sunday. “I get to replace the person in another short period of time.’’

And one more Trump nugget, the president said he would give social-video platform TikTok another extension of a deadline to sell to a US owner if it was needed to reach a deal.

Shell is working with advisers to evaluate a potential acquisition of BP, though it’s waiting for further stock and oil price declines before deciding whether to pursue a bid, according to people familiar with the matter.

What to watch

All times Sydney
• 9:00 a.m.:  April S&P Global Australia PMIs
• 11:00 a.m.: April Melbourne Institute Inflation
• 11:30 a.m.: Australia  April ANZ-Indeed Job Advertisements

One more thing...

Brazilian police arrested two people in connection with an alleged plot to set off explosives at a free Lady Gaga concert that drew more than 2 million people to Rio de Janeiro’s Copacabana beach. The concert, the largest of the singer’s career, drew fans from far and wide and was organized to help boost Rio’s economy. “Tonight, we’re making history,” Gaga, the “Mother Monster,” told the tightly packed crowd. “Thank you for making history with me.”

Lady Gaga performs during a free show at Copacabana Beach in Rio de Janeiro on May 3, 2025. Photographer: Buda Mendes/Getty Images