Trump infrastructure plan adds little to global copper backdropLONDON (Reuters) - Investors who sent copper to a 17-month peak on hopes for a splurge of U.S. infrastructure spending by Donald Trump may end up underwhelmed given that the plans, even if successful, would add only modestly to world demand.  China dominates the global copper market, accounting for half of all demand, and an uptick in consumption there following further stimulus is much more relevant to the market. That, together with less mine supply than expected, would support slightly firmer prices, but not the wild frenzy that erupted after the U.S. election last week, investors and analysts said. “The infrastructure ambitions of Trump I think are meaningless in terms of the course and direction of commodities,” said Scottish hedge fund manager Hugh Hendry, founder and chief investment officer of Eclectica Asset Management, which has around $200 million under management.  Copper prices soared about 25 percent from the start of the month to a peak of $6,025 a ton last Friday, but have since retreated to $5,466 by Wednesday - still nearly a fifth higher since the start of 2016. Experts brush off the impact on copper of plans by the incoming U.S. president to spend $1 trillion over 10 years on building infrastructure, even as they are more upbeat on the plan’s impact on the U.S. steel sector. Unlike copper, steel prices are set regionally, and an infrastructure spending spree coupled with even stronger trade protectionism would initially be a big boost for the U.S. steel market, even though longer term the fear is that steel price inflation will cripple demand growth. Copper consumption in the United States has slid 40 percent over the past 15 years to 1.8 million tonnes last year, according to the U.S. Geological Survey.  That compares to 10 million in China, Thomson Reuters GFMS data shows. “Even an assumed 10 percent increase in infrastructure-related copper consumption would hardly matter on a global scale,” said analyst Carsten Menke at Julius Baer in Switzerland. “This is not least due to the fact that part of the increase in copper demand would be met by increasing recycling, considering that existing infrastructure would be replaced rather than expanded.” A position paper by Trump's advisors about his infrastructure plans (bit.ly/2eBQB1Y) published before the election did not mention specific projects, but referred to the broad sweep of possibilities including bridges, airports and digital superhighways. “Even if Trump’s infrastructure plan goes ahead, the impact on physical markets is likely to be only modest,” said Robin Bhar, head of metals research at Societe Generale. “If spending goes toward building roads and bridges, this wouldn’t be as beneficial for metals demand as extra spending on sectors such as power, transportation and capital infrastructure projects,” Bhar said in a note. More important is whether stronger demand in China on the back of stimulus earlier this year persists. China’s real estate sector is a prime driver of demand for industrial metals including copper, but investment has slowed and builders started fewer new homes year-on-year in September, the first such decline since December.  “These are lead indicators for copper demand by six to 12 months, but have clearly turned sharply negative,” Liberum analyst Richard Knights said in a note. Hendry, although dismissing the impact of infrastructure spending on commodities, says a wider fiscal stimulus could boost overall economic growth and give the sector a lift. “A trillion plus tax cuts are not (meaningless) and would certainly seem to be the first dramatic and politically supported step,” he told the Reuters Global Investment Outlook Summit. “That’s a world where commodities, you have to imagine, retain their outperformance.” politicsNews
trump infrastructure plan adds little global copper backdroplondon reuters investors sent copper peak hopes surge infrastructure spending donald trump may end underwhelmed given plans even successful would add modestly world demand china dominates global copper market accounting half demand pick consumption following stimulus much relevant market that together less mine supply expected would support slightly former prices wild frenzy erupted election last week investors analysts said the infrastructure ambitions trump i think meaningless terms course direction commodities said scottish hedge fund manager hugh henry founder chief investment officer eclectic asset management around million management copper prices soared percent start month peak ton last friday since retreated wednesday still nearly fifth higher since start experts brush impact copper plans incoming president spend trillion years building infrastructure even upbeat plan impact steel sector unlike copper steel prices set regionally infrastructure spending spree coupled even stronger trade protections would initially big boost steel market even though longer term fear steel price inflation crippled demand growth copper consumption united states slid percent past years million tonnes last year according geological survey that compares million china thomson reuters gems data shows even assumed percent increase copper consumption would hardly matter global scale said analyst caste men julius bar switzerland this least due fact part increase copper demand would met increasing recycling considering existing infrastructure would replaced rather a position paper trump advisors infrastructure plans published election mention specific projects referred broad sweep possibilities including bridges airports digital superhighways even trump infrastructure plan goes ahead impact physical markets likely modest said robin bar head metals research societe generale if spending goes toward building roads bridges beneficial metals demand extra spending sectors power transportation capital infrastructure projects bar said note more important whether stronger demand china back stimulus earlier year persists china real estate sector prime driver demand industrial metals including copper investment slowed builders started fewer new homes september first decline since december these lead indicators copper demand six months clearly turned sharply negative liberal analyst richard knights said note henry although dismissing impact infrastructure spending commodities says wider fiscal stimulus could boost overall economic growth give sector lift a trillion plus tax cuts meaningless would certainly seem first dramatic politically supported step told reuters global investment outlook summit that world commodities imagine retain politicsnews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: Trump infrastructure plan adds little to global copper backdropLONDON (Reuters) - Investors who sent copper to a 17-month peak on hopes for a splurge of U.S. infrastructure spending by Donald Trump may end up underwhelmed given that the plans, even if successful, would add only modestly to world demand.  China dominates the global copper market, accounting for half of all demand, and an uptick in consumption there following further stimulus is much more relevant to the market. That, together with less mine supply than expected, would support slightly firmer prices, but not the wild frenzy that erupted after the U.S. election last week, investors and analysts said. “The infrastructure ambitions of Trump I think are meaningless in terms of the course and direction of commodities,” said Scottish hedge fund manager Hugh Hendry, founder and chief investment officer of Eclectica Asset Management, which has around $200 million under management.  Copper prices soared about 25 percent from the start of the month to a peak of $6,025 a ton last Friday, but have since retreated to $5,466 by Wednesday - still nearly a fifth higher since the start of 2016. Experts brush off the impact on copper of plans by the incoming U.S. president to spend $1 trillion over 10 years on building infrastructure, even as they are more upbeat on the plan’s impact on the U.S. steel sector. Unlike copper, steel prices are set regionally, and an infrastructure spending spree coupled with even stronger trade protectionism would initially be a big boost for the U.S. steel market, even though longer term the fear is that steel price inflation will cripple demand growth. Copper consumption in the United States has slid 40 percent over the past 15 years to 1.8 million tonnes last year, according to the U.S. Geological Survey.  That compares to 10 million in China, Thomson Reuters GFMS data shows. “Even an assumed 10 percent increase in infrastructure-related copper consumption would hardly matter on a global scale,” said analyst Carsten Menke at Julius Baer in Switzerland. “This is not least due to the fact that part of the increase in copper demand would be met by increasing recycling, considering that existing infrastructure would be replaced rather than expanded.” A position paper by Trump's advisors about his infrastructure plans (bit.ly/2eBQB1Y) published before the election did not mention specific projects, but referred to the broad sweep of possibilities including bridges, airports and digital superhighways. “Even if Trump’s infrastructure plan goes ahead, the impact on physical markets is likely to be only modest,” said Robin Bhar, head of metals research at Societe Generale. “If spending goes toward building roads and bridges, this wouldn’t be as beneficial for metals demand as extra spending on sectors such as power, transportation and capital infrastructure projects,” Bhar said in a note. More important is whether stronger demand in China on the back of stimulus earlier this year persists. China’s real estate sector is a prime driver of demand for industrial metals including copper, but investment has slowed and builders started fewer new homes year-on-year in September, the first such decline since December.  “These are lead indicators for copper demand by six to 12 months, but have clearly turned sharply negative,” Liberum analyst Richard Knights said in a note. Hendry, although dismissing the impact of infrastructure spending on commodities, says a wider fiscal stimulus could boost overall economic growth and give the sector a lift. “A trillion plus tax cuts are not (meaningless) and would certainly seem to be the first dramatic and politically supported step,” he told the Reuters Global Investment Outlook Summit. “That’s a world where commodities, you have to imagine, retain their outperformance.” politicsNews
Your task is to classify the provided input as real or fake news. Label 0 is meant for fake news, Label 1 is for real news. TEXT: trump infrastructure plan adds little global copper backdroplondon reuters investors sent copper peak hopes surge infrastructure spending donald trump may end underwhelmed given plans even successful would add modestly world demand china dominates global copper market accounting half demand pick consumption following stimulus much relevant market that together less mine supply expected would support slightly former prices wild frenzy erupted election last week investors analysts said the infrastructure ambitions trump i think meaningless terms course direction commodities said scottish hedge fund manager hugh henry founder chief investment officer eclectic asset management around million management copper prices soared percent start month peak ton last friday since retreated wednesday still nearly fifth higher since start experts brush impact copper plans incoming president spend trillion years building infrastructure even upbeat plan impact steel sector unlike copper steel prices set regionally infrastructure spending spree coupled even stronger trade protections would initially big boost steel market even though longer term fear steel price inflation crippled demand growth copper consumption united states slid percent past years million tonnes last year according geological survey that compares million china thomson reuters gems data shows even assumed percent increase copper consumption would hardly matter global scale said analyst caste men julius bar switzerland this least due fact part increase copper demand would met increasing recycling considering existing infrastructure would replaced rather a position paper trump advisors infrastructure plans published election mention specific projects referred broad sweep possibilities including bridges airports digital superhighways even trump infrastructure plan goes ahead impact physical markets likely modest said robin bar head metals research societe generale if spending goes toward building roads bridges beneficial metals demand extra spending sectors power transportation capital infrastructure projects bar said note more important whether stronger demand china back stimulus earlier year persists china real estate sector prime driver demand industrial metals including copper investment slowed builders started fewer new homes september first decline since december these lead indicators copper demand six months clearly turned sharply negative liberal analyst richard knights said note henry although dismissing impact infrastructure spending commodities says wider fiscal stimulus could boost overall economic growth give sector lift a trillion plus tax cuts meaningless would certainly seem first dramatic politically supported step told reuters global investment outlook summit that world commodities imagine retain politicsnews