IN THIS ISSUE

• Macro Strategy — The U.S. Capex Boom No One is Talking About—And Its Implications: Record foreign direct investment inflows suggest the U.S. may be entering a long-term investment cycle that supports domestic manufacturing, Artificial Intelligence-driven productivity, economic growth, and corporate earnings.
  
  
• Market View — Europe’s Electoral Cycle and Market Risks: While select European markets show resilience, upcoming elections across major European Union economies, persistent inflation pressures, and the prospect of further central bank tightening contribute to a cautious outlook for the region.
  
  
• Thought of the Week — Cautious Optimism Entering Fiscal Year 2027: Despite rising deficits, strong growth, Artificial Intelligence-related investment, and robust Treasury demand suggest U.S. fiscal risks remain manageable, though slower growth is a key concern.