The outlook for European fiscal stimulus keeps surprising to the upside, with larger-than-expected NATO commitments joined by swifter and more sizable German spending plans. This could boost regional EPS growth by ~3% a year over the next five years, justifying higher valuations. 

We revisit our October Must C report on global defense spending to account for how President Trump’s second term has shifted the landscape. Once again, we explore the defense-spending outlook, offer insight into Western allies’ spending, and assess the players in this evolving landscape.

While growth continues to hold up well, global trade indicators are increasingly showing signs of tariff-related strains. We also look at what may lie ahead for U.S. economics, asset allocation, commodities, and equities.

We expect portable AI servers to emerge as key applications and to significantly drive demand for on-device AI semiconductors. In this Super-Sector report from Citi Research, we look at what the emergence of such devices may mean for new computing architectures and the technology directions needed to support them.