Market response to the publication of Trump’s infrastructure plan
The U.S. president Donald Trump has at last released his long-awaited investment plan to fund the improvement of the nation’s highways, airports and other public space. It was a part of his electoral promises.
53-page document describes in detail, how Trump is going to attract at least $1.5 trillion of investments in the next two years.
The obstacle to the plan’s adoption on the part of the Democrats, besides the eternal opposition to the Republicans, can become the fact, that the government has to spend over $ 200 billion to encourage the state and the private sectors for $1.3 trillion increase in the balance. As the Federal Government doesn’t own a large infrastructure, Trump’s plan aims to create the local funding and rationalize the settlement of similar issues.
The infrastructure companies responded to the document release in different ways
Vulcan Materials Co. equities were 1.44% up, at $126.80yesterday, at 1.13 pm in New-York. At the same time, the shares of Fluor Corp, the largest of the traded engineering and construction companies were 2.7% up, at $56.52, and Jacobs Engineering Group Inc. stock price was 1.2% up, at $212.23, the stock prices of Martin Marietta Materials Inc., included in S&P 500 dropped by 1%, to $212.23.
The initial reaction to the Trump’s plan release was ambiguous; most business groups and industrial companies highly appreciated Trump’s intention to improve the infrastructure, they expressed the willingness to cooperate with the Congress to adopt the plan. On the other hand, ecological organizations and the Democrats accused the administration of trying to dodge and protect their corporate benefits, as well as of trying to distract the attention from the lack of federal investment. Some opponents even gave themselves the freedom to call the administration document a “scam”. The Senate Democratic leader Chuck Schumer discredited Trump’s investment plan in his speech, stating that to be "a plan to appease his political allies, not to rebuild the country”. He also claimed the plan implementation to place a heavy burden on the local authorities.