Defense & Aerospace Report Podcast [Jan 18 ’26 Business Report]

Jan 18, 2026

Guest

Richard Abelafi

Guest

Sash Tusa

Guest

Rocket Ron Epstein

Rocketron Epstein, an equity analyst at Bank of America Securities, breaks down the aerospace and defense market in 2026, highlighting key stock moves and economic trends. Sash Tusa, founder of Agency Partners, discusses European market dynamics, with Greenland emerging as a pivotal factor. Richard Abelafi critiques U.S. defense strategies regarding Greenland, urging a shift from mere rhetoric to real action. The panel debates the impact of U.S. tariffs and the need for ITAR-free systems, alongside the intricacies of European procurement and political divides.

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INSIGHT

Greenland Crisis Erodes Trust

Greenland tensions are reshaping transatlantic trust and prompting European capitals to reassess reliance on the U.S.
Sash Tusa warns that tariffs and trust erosion mark a possible point of no return for relations.

INSIGHT

Europe Buying Defence Stocks

European defence stocks jumped as investors expect higher European defence spending and onshoring after geopolitical strains.
Sash Tusa says investors prefer defence exposure due to asymmetric portfolio risk from being underweight defence.

ADVICE

Create ITAR-Free Local Units

Establish ITAR-free, ring-fenced units abroad to sell capabilities without kill-switch risk.
Richard Abelafi advises U.S. firms to localize production so allies avoid embargo vulnerability.

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On this week’s Defense & Aerospace Report Business Roundtable, sponsored by Bell, Dr. “Rocket” Ron Epstein of Bank of America Securities, Sash Tusa of the independent equity research firm Agency Partners and Richard Aboulafia of the AeroDynamic advisory consultancy join host Vago Muradian to discuss Wall Street’s bumpy week on weaker than expected bank results and investor worries about private credit and tech markets; the Trump administration’s investigation into Federal Reserved Chairman Jay Powell; President Trump’s imposition of 10 percent tariffs on the eight nations that sent troops to Greenland at Denmark’s request on a training exercise as he continues to demand the US acquire Greenland, prompting nation to consider activating the European Union’s trade bazooka that wasn’t used during last year’s tariff talks; what happens if Washington escalates by degrading or incapacitating US-made hardware now in NATO service to prevent European nations from responding to Greenland, and what capabilities Europe would have at its disposal to defend itself against Russia and other threats if American equipment is rendered inoperative; the EU’s trade deal with South American Mercosur nations creating a free trade zone of more than 700 million people; under pressure from Washington, Canadian Prime Minister Mark Carney visits Beijing to strike an “strategic partnership” as other European leaders visit China to advance their trade interests; frustrated with France and Dassault, Germany decides to leave the SCAF program to develop a new generation of manned and unmanned combat aircraft as Airbus considers next steps with in partnership with Saab or find a way to join the British-Italian-Japanese Global Combat Air Program; the Pentagon’s $1 billion investment in L3Harris Technologies’ new missile solutions business and its solid rocket motor capabilities, clearing the way for a direct US government investment across supply chains deemed critical; and Boeing ended 2025 scoring more orders than Airbus and delivering 600 jets, short of the European firm’s 793.