>Capex Interrupted (CITI)

■ Global capex cycle interrupted — Global capex experienced a sharp decline during the financial crisis and economic downturn. Even with an improvement in global credit markets and corporate profitability, any capex is likely to be muted in the near term, in part reflecting tremendous excess capacity.

Secular Infrastructure Spending Disrupted by the Economic Cycle

■ Secular infrastructure spending — The biggest increase in capex in coming years is likely to be in areas benefiting from secular trends. This includes investment in (i) Asian infrastructure; (ii) infrastructure in the Middle-East and North Africa; (iii) developed market telecom equipment; (iv) European utilities; and (v) social
infrastructure in China.

■ Investment implications — We highlight 36 well-positioned companies likely to benefit from these secular trends. These companies by geography: GEMS (12),Europe (9), U.S. (8), Japan (5), U.K. (2).

To read the full report: CAPEX INTERRUPTED