President Joe Biden announced more than $2 trillion in infrastructure and economic recovery plans in Pittsburgh, the birthplace of his 2019 presidential campaign and a traditional industrial hub in transition to health care and technology, on Wednesday, March 31. This is also an important part of his Build Back Better, or BBB plan.

The infrastructure project is "an investment that can only be seen once in a generation". It will build 500000 charging stations for electric vehicles.

Biden said the infrastructure plan, which includes both jobs and families, also known as the American Jobs Plan, would be "an investment that can only be seen once in a generation". The COVID-19 epidemic has worsened the economic polarization and become more and more obvious. It is time to rebuild the economy from the bottom up and help the middle class out of trouble. Plans for American families will be discussed in the coming weeks.

He also said that the American Jobs Plan will improve the position of the United States in chips, biotechnology and energy and remain competitive. People earning less than $400000 a year will not be subject to federal taxes. "No one should complain that the United States has raised the corporate tax to 28 percent." He also said he plans to build 500000 charging stations for electric vehicles across the United States.

Several electric car stocks and delivery ETF rose after hearing the news. Biden said Amazon.Com Inc had the problem of tax evasion.

As markets waited all day for the infrastructure plan and the tax increases that followed, the stock market reacted quickly to Biden's speech in after-hours trading.

At one point, the Greenpower Motor of the electric vehicle sector rose nearly 2% after trading in the United States. at one point, the Greenpower Motor of the electric vehicle sector rose more than 7%. Biotech stocks vary in after-hours ups and downs, with HALO up more than 0.7% XBI up 0.2%, reparence PACB down more than 0.9%, blue down nearly 1.2%, and ETF ETF down about 0.3%.

S & P transport ETF-SPDR (XTN) rose 0.8% after hours, Nasdaq transport ETF (FTXR) rose more than 1%, water resources ETF-PowerShares (PHO) rose 0.3%, and global clean energy ETF-iShares (ICLN) rose more than 1%. Bloomberg said the infrastructure plan includes key areas such as transportation, broadband, water supply and clean energy, and a number of stocks and ETF related to it will be affected.

It is worth noting that Amazon.Com Inc fell about 0.1% in after-hours trading, and US President Joe Biden believes that the company has the problem of tax evasion.

The White House has disclosed the infrastructure plan to the media a day in advance, mainly borne by corporate tax increases.

Biden's speech today is not long, and the main plans for his infrastructure plans were revealed to the media by anonymous White House officials on Tuesday night.

The plan aims to revitalize US transportation infrastructure, water supply, Internet broadband and manufacturing, and will fund infrastructure spending within 15 years by raising the statutory tax rate for domestic companies from 21 per cent to 28 per cent and by taking measures to prevent profit outflows.

It is reported that the $2.25 trillion infrastructure plan, which consists of four parts and lasts for eight years, is a follow-up to the $1.9 trillion economic rescue bill signed into force this month. Biden believes this will "reinvigorate the American imagination" and "get millions of Americans to find jobs right away."

Some of the details of the infrastructure plan disclosed by the media earlier are as follows:

Invest 621 billion dollars in transport infrastructure such as bridges, roads, public transport, ports, airports and electric vehicle development

Direct allocation of $400 billion to improve care for the elderly and people with disabilities

Invest more than $300 billion to improve drinking water infrastructure, expand broadband access and upgrade the power grid

Invest more than $300 billion in the construction and renovation of affordable housing (affordable housing), the construction and upgrading of schools

Of the $580 billion invested in manufacturing, R & D and vocational training in the United States, $180 billion in non-defense scientific research projects is the largest in the country's history, including $50 billion dedicated to domestic semiconductor manufacturing.

The Biden administration pays attention to green infrastructure, and plans related to American families are expected to be announced in a few weeks.

On green infrastructure, Biden called for large-scale investment in electric vehicles, renewable energy and the grid as part of a broad blueprint for supporting the US economy and tackling climate change.

For example, Biden intends to spend about $174 billion of government money on electric vehicle programs, including restructuring factories and increasing domestic material supplies, tax breaks for electric car buyers, retrofitting electric school buses and building 500000 electric vehicle charging stations nationwide.

He also plans to spend $100 billion on a more flexible grid, proposing a 10-year extension of tax breaks for wind, solar and other renewable energy projects, requiring more electricity to come from low-carbon energy, with the goal of eliminating carbon emissions from the grid by 2035.

Since then, the Biden administration will focus on improving education, expanding paid leave and health care coverage. The second part of the economic plan, which could involve huge investments in U.S. health care and child care, is expected to be announced in late April, the White House said.

Wall Street has mentioned that the media first reported that the scale of the latest infrastructure project is as large as 3 trillion US dollars, and the Washington Post believes that the scale may reach 4 trillion US dollars. To support such huge spending, the Biden administration's tax increases could total more than $3 trillion. The Biden government believes that tax increases can also advance its goal of reducing income inequality, according to people familiar with the matter:

"the latest news is that the total amount of tax increases may exceed 3 trillion US dollars, and the rich and enterprises are the biggest targets. Of this, raising corporate income tax alone could generate $730 billion over the next decade, while raising taxes on the capital gains of the rich could generate $370 billion. "

Biden's "massive" infrastructure plan makes the market sensitive to inflation expectations, but risk sentiment boosts

On the eve of the announcement of the infrastructure stimulus package, the S & P 500 rose nearly 0.9 per cent at midday and hit an all-time high, with FAAMNG leading the rebound in technology stocks and the Nasdaq up more than 2 per cent in intraday trading.

Most of the new energy vehicles, solar energy, construction and other industries that are good for infrastructure rose, of which Tesla, Inc. rose more than 5%, and the new power of car building rose together, and ChargePoint, a California electric vehicle infrastructure company listed through SPAC and providing charging piles, rose nearly 24% in March.

The yield on 10-year US Treasuries fell 1 basis point to 1.716 per cent in the day, then returned to 1.74 per cent and rose within the day, breaking 1.77 per cent and a 14-month high yesterday.

Previous analysts said that for investors, the "massive" infrastructure plan that Biden is about to disclose will make market sentiment, which is quite nervous about inflation, more nervous.

Dallas Fed chairman Kaplan, who won't vote for FOMC until two years later, said today that infrastructure spending should boost potential growth in the US economy. Inflation is expected to be moderate in 2022 and 2023, and the Fed aims to anchor inflation expectations at 2 per cent.

Analysis: the demand for the construction of the national electric vehicle charging grid is insufficient, and the green infrastructure is not as good as the traditional infrastructure for GDP.

Bank of America Corporation has said that the confluence of three major factors in the United States, including infrastructure projects, has led to higher inflation expectations:

1. Unprecedented fiscal stimulus (more than 25% of GDP), infrastructure projects (planned to be completed in 2021 / 2022)

Under the framework of the new inflation target (FAIT), the Fed is not expected to raise interest rates until 2023.

3. At present, vaccine distribution in the United States is much faster than in other countries in Europe and the United States, which will promote a faster recovery of the US economy, higher US bond yields and the dollar, and steeper emerging market bond yield curves.

CICC believes that in addition to traditional infrastructure, the Biden administration's fiscal thinking has changed. "fiscal leniency" will be the main tone, with more emphasis on green infrastructure related to environmental protection, but the legislative process faces resistance from Congress and the progress of projects is also subject to local constraints. Biden is most likely to split the infrastructure bill into two parts, passing a bipartisan negotiation bill and a budget mediation process, which is expected to boost US GDP growth by less than 1 percentage point in 2022, and the positive effect of infrastructure will be smaller if taxes are raised.

In terms of resistance, in addition to CICC's claim that "the pull of green infrastructure on the economy may be weaker than that of traditional infrastructure", the analysis also pointed out that the construction of a national electric vehicle charging network still faces shortcomings such as insufficient demand, high installation costs, and difficulties in coordinating operations in many aspects.

Republican Senate leader Mitch McConnell has publicly opposed Biden's plan to support infrastructure by raising taxes. He says infrastructure is like a Trojan horse, essentially borrowing trillions of dollars and sharply raising taxes on all productive sectors of the economy.