Investors eye Washington talks after big rally in infrastructure shares
Republican leaders have endorsed roughly $257 billion in new spending
Updated 06 June 2021
Reuters
NEW YORK: Investors will watch Washington in the coming week for clues on whether an outsized rally in shares of companies that would benefit from President Joe Biden’s proposed $1.7 trillion infrastructure plan has more room to run.
Expectations of spending from Washington on bridges, roads, and tunnels bolstered so-called value stocks, especially the industrials and materials sectors, both up around 20 percent this year, ahead of the 12.5 percent gain for the S&P 500.
Among the biggest winners have been shares of United States Steel Corp., up nearly 200 percent since the start of the year, while steel producer Nucor Corp.’s stock has gained around 104 percent.
Those large gains may leave many industrials and materials stocks vulnerable to a selloff if a large spending bill in Washington fails to materialize, said John Mowrey, chief investment officer of NFJ Investment Group, which manages $8.2 billion in assets.
“It’s scary how much of (the spending bill) is already priced into the market,” he said.
US Transportation Secretary Pete Buttigieg circled June 7 as the date by which negotiations with Senate Republicans must have a “clear direction.” If not, he suggested, Senate Democrats could propose a more targeted infrastructure bill.
Republican leaders have endorsed roughly $257 billion in new spending, while calling major tax hikes to finance the construction of roads, bridges, water pipes and other projects a non-starter.
Progressive Democrats, meanwhile, are warning they would block any bill they view as inadequate.
Talks continued between Biden and Senator Shelley Capito, the main Republican negotiator.
Mowrey is focusing on companies he believes are undervalued that would benefit from an upgrade of technology-focused infrastructure like cell phone towers and data centers.
Shares of American Tower Corp., one of Mowrey’s holdings, are up 17 percent for the year.
Investors have embraced infrastructure stocks at a time when concerns about rising inflation, lingering disruptions in global supply chains from the coronavirus pandemic and accommodative central bank policies have helped push prices for raw materials to multi-year highs.
Investors trying to gauge the inflation threat will keep a close eye on US consumer price data, to be released on June 10.
A much stronger than expected CPI number sparked a selloff in the market last month, bringing infrastructure stocks down with it, as many worried rising inflation could force the Federal Reserve to begin unwinding stimulus soon.
Still, exchange-traded funds that bet on infrastructure stocks were the only type of thematic ETFs to attract positive net inflows in May, according to data from State Street Corp. Infrastructure ETFs were up 76.1 percent for the year through May, more than double the return of other thematic bets such as robotics or digital security.
The utilities sector may have the most to gain over the long term from roughly $384 billion in federal spending from Biden’s proposed bill, Wells Fargo noted in an analyst report. However, rising Treasury yields will likely leave the sector unattractive over the next six to 18 months, the firm said.
“The full ramifications of the American Jobs Plan will take multiple years to convert to growth for utilities firms,” the firm said.
Investors who are skeptical that Congress will pass an infrastructure bill should focus on areas such as clean energy, automotive parts and manufacturing, and agricultural machinery, which have not had the same run-up as commodity-tied businesses, said Brian Sponheimer, a portfolio manager of the $2.4 billion Gabelli Dividend & Income Trust fund.
Automotive companies will likely continue benefiting from above-trend demand through at least 2023 as the global semiconductor shortage and a lack of inventory keeps supplies low, said Sponheimer, whose position in parts supplier Genuine Parts Co. is among his fund’s 10-largest holdings.
If lawmakers cannot reach a bipartisan agreement on infrastructure, “there are reasons to think that there are supply chain challenges that push out growth for pockets of the market through 2022 and 2023,” he said.
Poland expects trade with Saudi Arabia to grow to $10 billion, finance and economy minister tells Arab News
Andrzej Domanski says his country’s companies are looking for reliable partners like Saudi Arabia
Highlights opportunities in clean energy, ICT, food security and construction cooperation on Riyadh visit
Updated 09 February 2026
Lama Alhamawi
RIYADH: Saudi Arabia’s pace of transformation, its economic ambition under Vision 2030, and its role as Poland’s biggest Middle Eastern trading partner are driving a new phase in bilateral relations, Andrzej Domanski, Poland’s finance and economy minister, has said.
Speaking to Arab News during a visit to Riyadh on Monday, Domanski discussed how the two nations might expand their trade ties, the sectors where Polish businesses enjoy an edge, and the potential for broadening the bilateral relationship.
“We have better and better economic relations with the Kingdom of Saudi Arabia. We will reach $10 billion in our trade,” Domanski said, describing Saudi Arabia as a “reliable partner” at a time when Polish companies are actively seeking diversification and new markets.
His visit comes as Saudi-Polish economic ties deepen beyond a historically oil-focused relationship into a broader partnership spanning energy transition, technology, construction, food security and potentially defense cooperation.
This evolution mirrors Saudi Arabia’s Vision 2030 diversification drive and Poland’s emergence as one of Europe’s fastest-growing large economies.
Domanski said Riyadh itself offered a powerful visual symbol of Saudi Arabia’s economic momentum.
“I must say that it’s my first visit to Riyadh and I’m really impressed,” he said. “I’m impressed by the pace of development. The thousands of cranes in the city. It is also a proof of how quickly Saudi Arabia is developing.”
Bilateral trade between Saudi Arabia and Poland has expanded rapidly in recent years, driven largely by energy flows. Saudi Arabia is now Poland’s main crude-oil supplier, accounting for roughly 60 percent of Poland’s oil imports.
Trade volumes have risen from about $7 billion in 2022 to around $8.5 billion in 2023, with Domanski predicting the $10 billion mark will soon be reached.
“We are, of course, importing crude oil. But we’d like to together search for new business opportunities for both Saudi and, of course, Polish companies,” he said.
Domanski argued that growth prospects make the country an attractive destination for Saudi investment.
Andrzej Domanski, Polish minister of finance and economy. (AN photo by Loai Elkelawy)
“On our side, we are also doing pretty well. We are the fastest growing large European economy,” he said. “This year we will work in the G20 format. This is because last year we joined the Group of the 20 biggest economies in the world. And we are frankly proud of that.”
Inflation, he added, has fallen sharply. “Inflation went down significantly, 2.5 percent. Very reasonable. A reasonable level. Investment started to pick up,” he said, pitching Poland as a stable European base for Saudi capital.
A recurring theme of Domanski’s visit was the alignment between Poland’s development priorities and Saudi Arabia’s Vision 2030 agenda.
“Our companies, our economy, are fully aligned with the ambitious Vision 2030 that is realized here,” he said.
Energy cooperation remains central, anchored by Saudi Aramco’s stake in the Lotos refinery in Gdansk — the largest Saudi direct investment in Poland — which underpins long-term crude-supply contracts and Poland’s energy-security strategy.
But Domanski stressed that the future lies increasingly in clean energy.
“It’s worth noting that right now Poland is building onshore capabilities, offshore capabilities, solar capabilities. And we are constructing the first Polish nuclear power plant,” he said.
“We want to diversify from coal into nuclear and renewables. And I believe that our Saudi partners could participate in this clean energy transformation of the Polish economy.”
The shift reflects broader cooperation under way between Warsaw and Riyadh on green energy and hydrogen, dovetailing Poland’s decarbonization plans with Saudi Arabia’s push to develop non-oil sectors.
Technology and digital services emerged as one of the most promising areas for expansion, with Poland positioning itself as a provider of high-end IT talent for Saudi Arabia’s digital and AI-driven projects.
“ICT solutions. We have really great companies that provide the best solutions. They are already well recognized in Western European countries. They have their footprint here in Riyadh,” Domanski said.
“Having said that, they still lack scale. So my visit here is also to discuss that kind of business opportunity.”
Polish officials frequently point to the country’s deep pool of programmers and cybersecurity specialists. Warsaw has signaled plans for dozens of Polish firms to establish regional headquarters in Saudi Arabia, particularly in AI, cybersecurity and digital infrastructure.
Domanski underscored Poland’s strengths in specific niches.
“I believe that we are really top class,” he said. “For example, in cybersecurity, we really have companies that are providing the best solutions for smart cities in Western Europe.
“But, I believe there is lots of room for strengthening this presence and the cooperation with Saudi partners.”
Food security is another area where Poland sees scope for joint ventures and long-term cooperation. “We are quite an important food producer,” Domanski said. “We have knowhow. We have land. We have a growing sector.
“And I believe that, for example, through joint ventures with our Saudi partners, we could establish a long lasting cooperation in this sector.”
The construction sector also featured prominently, reflecting the scale and pace of development under way across the Kingdom.
“We have lots of contractors that proved to be very efficient and contractors that keep timelines and realize how it is important to deliver on time,” Domanski said.
“And I believe that here, seeing how quickly Saudi Arabia is developing, those contractors could also help in your development.”
Domanski highlighted the importance of institutional frameworks and regular high-level engagement. During his visit, discussions focused on communication mechanisms and a formal framework for cooperation.
“First of all, we need communication and we need to have a frame for cooperation,” he said.
Andrzej Domanski, Polish minister of finance and economy, with Arab News report Lama Alhamawi. (AN photo by Loai Elkelawy)
“So this is why I’m really glad that together with the minister of trade, minister of investment, we were discussing both communication, and we’d like to see each other, invite each other more often, as this is very, very, important.
“And we’d like to set, also, the frame for cooperation. And such a document will be signed today. So we will decide who will be responsible for some particular areas and when we would like some results to be delivered.”
The move builds on existing structures, including the Saudi-Polish Coordination Council and a Saudi-Polish Business Council, as well as a new memorandum of understanding signed in January to strengthen the partnership’s strategic character.
Domanski said he hopes Saudi delegations will soon travel to Poland, including for major economic and reconstruction-focused events.
“I do hope that our friends from Saudi Arabia will join us during our economic congress, which will take place in Katowice in the Silesia region, the most industrialized region of Poland, at the end of June,” he said.
He also highlighted Poland’s role in hosting a major summit on Ukraine.
“We will host the Ukrainian Recovery Conference, which is a truly international event. And we would also love to see our Saudi friends to be there,” he said.
“I’ve invited ministers to participate in those events.”
While his focus remains economic, Domanski did not rule out expanding cooperation into defense, particularly as Poland ramps up military spending and industrial capacity.
“Unfortunately I couldn’t attend,” he said, referring to the World Defense Show currently taking place in Riyadh. “Having said that, it’s worth noting that Poland spends close to 5 percent of our GDP on defense. We intend to build a very strong defense industry in Poland.
“We are, of course, supporting, building a strong defense industry in Europe. But of course, I’m mostly focused on Poland. And therefore I believe that we can provide really, very good solutions for and very good equipment that could be presented here, and hopefully we can develop our cooperation also in this sector.”
For Domanski, Saudi Arabia represents not only Poland’s most important economic partner in the Arab world, but a gateway to diversification and scale.
“Polish companies are getting larger and larger,” he said. “And, of course, are looking for diversification, looking for new markets and for reliable partners like Saudi Arabia.”
