HOTTER ON METALS: Copper’s ‘bigly’ move

Copper has been going up, bigly. It’s not because of Trumpenomics.

There have been multiple headlines and analyst reports attributing the biggest rally in copper since the 1970s to plans by US president-elect Donald Trump to overhaul the country’s infrastructure. That requires raw materials like copper, the argument goes, and that’s why investors have piled back into the metal once more. Trump has pledged significantly increased infrastructure expenditure – $1 trillion of spending and $140 billion in tax credits for companies that do the work, to be exact. The investment is much needed, for sure. But how it will work in practice is less clear, particularly given the constraints that the US debt ceiling will inevitably have on fiscal expansion and how long it can take for bills to pass through the various...

Published

Andrea Hotter

November 11, 2016

16:20 GMT

New York