The "troubled and dangerous" state of the world required a massive hike in the amount the America spends on defense, President Donald Trump said.

The president also called on defence firms to increase production or face a crackdown on payouts.

U.S. defense stocks rallied in pre-market moves, following their European counterparts.

The "troubled and dangerous" state of the world required a massive hike in the amount the America spends on defense, President Donald Trump said.