From Investing.com: 2024-11-16 03:00:00

Defense spending is expected to stay strong under a second Trump administration, with a focus on China over Russia. Investments are likely to increase in assets like planes and ships rather than ground-based equipment. Trump’s team plans to leverage AI and machine learning for military purposes, affecting companies like HawkEye 360 and Boeing.

Trump is finalizing his defense team, potentially including Pete Hegseth, Mike Waltz, and Mike Huckabee. Reports suggest a list of Pentagon officials may be fired, possibly including the Joint Chiefs of Staff. As Trump gears up for a second term, he faces challenges in the Middle East, Ukraine, and tensions with China and Taiwan.

US policymakers are preparing for conflicts on multiple fronts, departing from previous strategies. Defense spending has steadily increased across recent administrations, with Congress and Trump willing to surpass budget caps. The new approach emphasizes readiness for simultaneous engagements in different regions, according to Citi analysts.



Read more at Investing.com: What Trump 2.0 might mean for aerospace and defense stocks, according to Citi By Investing.com