Taco, Tariffs & Trump's "Framework" deal for Greenland - Squawk Box Asia examines the fallout

• David Roche suggests Europe must adopt more assertive diplomacy against Trump and cannot rely on the US for defense, necessitating a rapid reconfiguration of European defense by mid-next year.
• The hosts note a bullish sentiment around European defense stocks, driven by fiscal support, with South Korean defense stocks like Hanwha Aerospace showing parabolic growth.
• Concerns are raised about the fiscal pressure on EU governments due to increased defense spending, and whether the market's 'buy the dip' strategy, successful in 2025, will hold in 2026 given current valuations.

The discussion centers on the geopolitical fallout from former President Trump's stance on Greenland and NATO, leading to a perceived need for Europe to bolster its defense capabilities independently. This shift is seen as a major driver for European defense stocks, with some analysts recommending a 'buy' strategy. However, concerns are raised about the fiscal implications for European governments and the overall market's stretched valuation.