what the u.s. officials would say is that the chinese tolerance for north korean business behavior is quite a lot more than the u.s. tolerance. that's the gap the u.s. has been trying to close for a while. >> we should add, to, that the president has been almost unbelievably public about his thinking with china. he said in public, let's talk about trade. we'll make a better deal and china has turned a department of ear to this as a negotiating point. but one thing that emerged at the end of the week, china has said they want to be neutral. >> and stay tined on to these sanctions. that's a big win and an indication that china is willing to do more. again, we have to see what the enforcement is going to be. >> one thing about sanctions, they take a long time. and you could live through this week of statements and tweets and think we're going to be at war by sunday. the plain fact is that we all know we're not and probably not ever and the sanctions deal takes months in iran it took years. so if you b

the u.s. the enemy, kim jong-un and their weapons against the threat of president trump. >> fire and fury, like the world has never seen. >> reporter: and from the island of guam, now directly threatened by north korea, secretary of state rex tillerson, turning down the temperature. >> the american people should sleep well at night. >> reporter: and defending the president. >> what the president is doing is sending a strong message to north korea in language that kim jong-un would understand. because he doesn't seem to understand diplomatic language. >> reporter: that message reinforced today in another stark warning from defense secretary jim mattis that north korea should stop considering actions that would lead to the end of its regime and the destruction of its people. it would, he said, lose any conflict it initiates. mattis' comments followed a new, very specific threat from north korea, that it's preparing military plans to strike the american pacific island of guam. it's a sovereign u.

the u.s. markets closed. apple helping both the nasdaq and dow. closing above the red line, as you can see. the nasdaq has seen bigger losses, ending the day unchanged, the same as the s&p. one stock that is rising is tesla. tesla shares are soaring after second-quarter earnings beat wall street expectations, losses narrowed more than expected. using ak has been conference call to talk more about his international plan. we expect to keep the majority of our production in the u.s.. but it makes sense to establish a factory in china and europe to soak up the markets there. just to sell cars in california, but around the world. betty: it is always odd listening to conference calls, it sounds like he just woke up. we have a reporter here to break down the numbers. it is interesting, he mentioned the model y. curious to hear about that because it seems like something new there on that call. >> they had hinted the model y would be a new platform, new architecture. he walked that back today and said

this morning the u.s. and north crowe facing off in a high stakes game of nuclear confrontation with rump adopt ing a tone never before used by an american commander-in-chief. warning a preemptive retaliatory operation of justice. >> in a statement to north korea, military threatens to strike the territory and mentions two bases. prompting the latest north koreaen rhetoric. >> the threats came hours after u.s. intelligence analysts have concluded pyongyang has produced a militarized nuclear war head. this is a key development in its nuclear ambitions. one official notes the capability is not the consensus of the entire intel community. "the washington post" says the first defense intelligence agency. reached that conclusion. >> one of 16 communities. president trump responding to reports with harsh rhetoric intensifying concerns about what happens next. jeff czeleny has more from the white house. >> reporter: with a threat of north korea's nuclear program looming larger at the white house, president trump

>> that was the main u.s. focus at the beginning. the u.s. was determined to bring warmbier and other americans detained in north korea home. only warmbier has been brought home. but after his return and heavy criticism of north korea for the state he came home in, the talks continued. they have touched on matters and on the broader terrible state of u.s. north korean relations. we can assume that must mean nuclear matters as well, though, you know, officials and people that know are being very cagey about what exactly has been discussed. >> bill: okay. you mentioned joseph un. tell me about un and the channel. >> so he's an experienced well-healed diplomat on asia matters. he's been in a leadership at the state department on asian matters for a number of years. he's been meeting regularly with a senior diplomat at north korea's u.n. mission. they have been, you know, communicating in different means every few weeks or whatever. you know, on a regular basis. sometimes it's just messaging, sometimes it's deeper conversations or exchanges of in

breaking news u.s. president donald trump signs the new sanctions against russia ensuring it will be called. to destroy north korea's program and north korea told me that my face. prepared for war with north korea that's according to a u.s. senator it comes amid rising tensions between washington. is admit missing a deadline to deport a man suspected of committing friday's deadly knife attack in.

if you are u.s. citizen on the coast of no doubt you're still pretty stressed but hey say that to south koreans from somewhere near seoul they'll be the first to get zapped if mr trump pulls the trigger. going underground how is after tang's he discusses the u.s. north korea escalations with award winning journalist and filmmaker john pilger the full interview will be air here throughout the day but here's a short clip of it trump is a bit of a wimp compared with obama a bomber in the. having put american troops seven wars including the longest war in its in its history having increased the development of nuclear. warheads more than any president since the cold war obama's record was all the soup a whole trampas has a long way to catch up with his previous us that's why we really should stop simply looking at trump the man but trump as a kind of symptom and i mentioned earlier a character true almost a cartoon version of a system. a system. that's produced people have almost brought us to the edge of

the kind of role of u.s. bankers in haiti led to the landing of u.s. marines and the development of a 19 year military occupation lasted from 1950-1934. it led to i think something that in some ways intangible to many u.s. audiences mightily to the extinguishment of sovereignty, the transfer of the kind of financial and economic control to wall street, and also led to thousands of deaths of haitian citizens by u.s. marines. it's not necessarily that one sees baker's going in with their guns but there with the ones that were advising the state department on u.s. policy. they were the ones that were treating the financial systems that created some of the chaos in haiti that led to military occupation. similar things could be said about nicaragua. the consequences for cuba were the development or the support of first of all the shop is dictatorship by the 1920s. the 19 twister he was democratically elected in 1925 on a platform of progress and reform -- chavez turkey was a populist leader. he about he wouldn't take any more, that or that cuba wouldn't con

>> i think most allies of the u.s. and most people in the u.s. government are still going to be seeking some sort of a good mac solution. that is a bit of what you heard from secretary of state rex tillerson earlier today when he said he did in some way back up the president's comments, but he also says he does not see any imminent change in the last 24 hours from the heated rhetoric we have had from both sides on this. bill,one congressman, said that trump's comments undermine america's credibility by drawing in a firm redline. is there an element of truth to that? bill: he certainly stake than aggressive position. i think you'll remember president trump was google president obama's decision to come out with a redline in syria so a lot of people when they heard president trumps'comments trump's, yesterday, there was reflation on the last as athe u.s. statked reflection. rex tillerson said the president spoke bluntly the way he did because in the past, kim jong has not shown that he understands the niceties of diplomatic language. whether that is

the u.s. state department branded last weekend's vote in a just a minute it also describes nicolas maduro as leadership as a dictatorship however when it comes the sanctions there does seem to be once fear that's off limits. but stations against oil are i'm not going to comment on that what i will say is we will monitor all of our options it seems we all knew about this talks that relationship material is a dictator who disregards the will of the venezuelan people not what are they going to such only to me that they do they determine a short on a deal that neuer out of their main part of the the visit but if the mental is totally that the government. is violating its own constitution. limits. but pump oil into the equation and politics is brushed straight under the carpet his facts of how black gold unites them. to take a discount american states being the third largest exporter of crude to the us and numbers of growing up seven percent to around six hundred seventy thousand barrels a day when

and the pentagon proposal calls for the u.s. to send arms and other military support to ukraine's government this as tensions already run high between moscow and washington. then a special counsel robert muller is using a grand jury to investigate alleged russian meddling in the u.s. election what it means for relations between the two nations. it is friday august fourth four pm in washington d.c. i'm a military man you're watching our team america we began today with documents containing the names of more than one hundred fifty suspected isis militants that were found in a war ravaged iraqi city the documents allege fighters for the self-proclaimed islamic state have been trained to carry out suicide attacks across europe interpol reportedly distributed the list among european intelligence agencies after the data was first collected by the f.b.i. through quote trusted channels artie's peter all over has more. documents containing the names of one hundred seventy three potential isis terrorists have been found amongst the ruins

former u.s. congressman on the presidential run poll believes the new sanctions are a big mistake unhooked old place i don't think on the long run this benefit i don't think it benefits america it certainly doesn't benefit you know peace in the world between europe and russia so i think it's a terrible thing to have happen but there are some those who cope qualified to be participants in the deep state they are determined they are determined almost obsessed with making sure that there is no friendship between the united states and russia between putin and trump i think that is tragic you know even when russia and the soviet union existed we actually were quite willing you know when necessary to talk and work out some problem one project of the new sanctions talk it is the north stream to pipeline and this is due to start pumping gas from russia to europe in twenty nineteen it is regarded by europe as key to its energy needs more of a european have invested some five billion euros in this project

the u.s. and china have agreed to impose you when sponsored sanctions on north korea in its attempt to deter its nuclear program. will the actions make a difference to pyongyang? friday'sr stalls after job fueled rally. asian stockse with back at a decade hundred -- at a decade high. ♪ it is "bloomberg daybreak: europe." anna edwards is out of the office of the next couple of days. one market that is not pausing. on friday, ther dollar. it had a jobs report that delivered. it had everything entered the market could have wanted, but still the dollar there's seem to be in charge. bears seem to be in charge. have a look at this. week moving200 average look like? this is the 200 day moving average. if it breaks this level, you are potentially looking at a more dramatic reversal of fortune. gary cohn startup -- thought to shore up the market. he is going to the hamptons this weekend for charity and said he was confident of a tax overhaul to be a published by the year-end. to that end, we are keep

u.s. crude stockpiles extended declines yesterday. that is your asset classes. let's get to the bloomberg first word news. nejra: the death toll from typhoon hato has risen to 12. it is the most powerful storm to hit the region in half a century. macau says it people were killed in the gambling hub. another 153 were listed as injured. the city of charlottesville has covered two statues of confederate generals in tarpaulins. the decision came during a chaotic meeting and followed racially charged protests that left one woman dead. the u.s. is preparing another round of sanctions to punish the government of venezuela. according to people familiar with the deliberations, one would squeeze trading. this comes as president nicolas maduro and his socialist government moved to increase their authority among recession and protest. assured, under the leadership of president donald trump, the united states of america will continue to bring the full measure of american economic and diplomatic power u

if you are u.s. citizen on the coast of no doubt you're still pretty stressed but hey say that to south koreans from somewhere near seoul they'll be the first to get zapped if mr trump pulls the trigger going underground host discusses the u.s. north korea escalations with award winning journalist and filmmaker john pilger the full interview here throughout the day for now though a short clip. trump is a bit of a wimp compared with obama a bomber in the. having put american interests wars including the longest war in its in its history having increased the development of nuclear. warheads more than any president since the cold war obama's record was also a simple hole trampas has a long way to catch up with his previous us so that's why we really should stall simply looking at trump the man to trump as a kind of symptom and i mentioned. a character a true almost a cartoon version of a system a system. of those produced people that have almost brought us to the edge of nuclear war. yes collation and o

if u.s. has any power they better manage their country tackle of white supremacy rather than meddle in nation's affairs washington however insists its mission is to be a moral conscience for the rest of the world and that's on exaggeration it's an actual quote from america's u.n. ambassador united states is the moral conscience of the world we will not walk away from this role there are some people naive people in the united states who actually believe that they're doing a favor to the rest of the world but i think to a large degree yes it is a mechanism through which the americans convince their own people and themselves that they are somehow superior embracing the role of the world's moral compass the u.s. is pointing its finger pretty much all around the globe from venezuela to india but given the division and racial tension inside america at the moment we just have to wonder how many more countries are going to tell washington to mind its own business samir khan r.t. washington d.c. . the

if you are u.s. citizen on the coast of no doubt you're still pretty stressed but hey say that to south koreans from somewhere near seoul they'll be the first to get zapped if mr trump pulls the trigger going underground host actually returns he discusses the u.s. north korea escalations with award winning journalist and filmmaker john pilger the full interview will be had here throughout the day for now though is a short clip trump is a bit of a wimp compared with obama a bomber. having put american interests in wars including the longest war in it's in the history of having increased the development of nuclear. warheads more than any president since the cold war obama's record was on the soup a whole trampas has a long way to catch up with his previous us so that's why i really should stop simply looking at trump the man and petroleum as a kind of symptom almost a cartoon version of a system. a system. was produced people would have almost brought us to of nuclear war. it's good some breaking news

sanctions and possibly placate u.s. president donald trump china it announced monday it's a whole ting imports of north korean coal iron and seafood the announcement follows a week and phone call between chinese president xi and trump about how to deal with north korea's nuclear advancements trump's been threatening to investigate china's alleged theft of u.s. intellectual property which could or could result in severe trade penalties beijing has warned trump not to use the threat of a trade war to pressure china on north korea cooperation between china and the u.s. should be based on mutual respect and each other's needs are interesting and the issues of the korean peninsula trade are two separate lunches china and the u.s. should respect each other and enhanced cooperation on these two issues it is obviously an appropriate one issue as the tool is imposing pressure for another one china is by far north korea's biggest trading partner accounting for roughly ninety percent of pyongyang international engagement the first

the u.s. territory of guam with ballistic missiles." if all of this sounds to you scary and uncertain, you're not alone. we'll hear from a wide range of military experts tonight. the only language to president trump is what president truman said to japan 72 years ago after dropping an atomic bomb. he said if they do not now accept our terms, they may expect a rain of ruin from the air, the likes of which has never been seen on this earth. the japanese did not act quickly enough, and three days later the second atomic bomb fell on nagasaki. that is not where we are tonight. the question is, though, did we take a step closer today? we start off with barbara starr tonight at the pentagon. so what more are you learning about this threat against guam? >> reporter: well, what we know is the north korean state news agency issued this statement earlier today. it appears to have come maybe, we're not positive, after president trump spoke. but the north korean agencies saying they're examining their ope

the u.s. government and secured a contract after the two thousand and three u.s. . operating as part of the u.s. occupation authorities blackwater gained rioting security flaws and also disciplinary problems in the massacre the company rebranded but it's still operating the scandal little to dent the u.s. government's appetite for working with military contractors who are still thriving and. expect. erik prince the founder of blackwater a private military company with a controversy reputation with its legacy you might expect princes career to be over but this cannot be further from the truth there's no backlash and no shame in the man's gun for hire business is booming what i care about taxpayer is the largest wasting food say five billion dollars in afghanistan i don't think it's appropriate to pull out completely with the wars the us is waging abroad times are lucrative for private security firms struggle to find one with an untainted slate dyna corp for example for over a decade the u.s. state department was giving almost seventy percent of its funding for afghan

the u.s. economic zone which as miguel mentioned in the intro would send a very strong message to the u.s. indeed. now, here in south korea, the national security council with the south korean president has wrapped up. they issued a statement a short time ago saying that north korea must stop escalating tension and stressing that war will not benefit any side. they say the threat to guam was absurd. we need to remember that here in south korea that there are at least 1,000 artillery places along the border to north korea directed to the city of some ten million people. whilst the south korean president in the past extented this willingness to engage in dialogue with north korea, in the past couple of days he said any provocation will be met with response. and he's looking to beef up defenses here. >> anna coren in seoul where it is 6:00 in the evening. thank you for that. >>> we want to bring in our cnn politics reporter from washington to help understand all this. good morning. >> good mornin

u.s. vice president mike pence is in south america this week talking trade with u.s. allies and reiterating on behalf of president donald trump that america first does not mean america alone in argentina he stressed u.s. interest of creating more trade deals with its partners the united states wants more tree was what he wanted to. but he did receive. free trade going through. well his speech comes on the eve of trade talks in washington where trade officials from the trump administration are meeting with their counterparts from canada and mexico for the first time to discuss the future of the north american free trade agreement the talks come just a few months after president trump decided to renegotiate terms of the deal rather than completely scrap it but how much change can we expect. what trump has called the worst trade deal ever we have team coverage on nafta negotiations today boom bust bianca sheeny is in the washington at the white house alex mileage joins us from halifax canada i want to start with you has trump's rhetoric on now changed since he called it

japan and the u.s. have some military drills coming up so that is an interesting time in thet, and today, is anniversary celebrated in both north korea and south korea of the end of the japanese occupation of the korean peninsula. the timing is interesting but appears to not have provoked anything. it looks like everyone is taking a calming down, even though the rhetoric continues to be pretty heightened. matt: all right, thanks very much for your time this point. bloomberg's jodi schneider reporting for us on the relief of the markets behind crawlies that are global today. are global ift you are a bloomberg customer, you can watch tv or the show using tv on your terminal. there are three panels on the tv function when you pull it up. you can seen interactive television, watch guy and myself or later on when we moved to radio, you can click the middle panel and any event coverage, for example the president holds a speech, you can click on event coverage and see that. guy: let's talk about

home to 6,000 u.s. troops and 160,000 residents considered u.s. citizens. what are the options for the u.s. military in a situation like this one? joining me now, retired general barry mccaffrey. good to see you. we can start with the premise that all of know that any military option is not a good one. having said that. when you heard the president say fire and fury, did you consider it a threat of military action and when a president says words like that, what are our armed forces doing, if anything, to position themselves in the case they get called on? >> well, obviously very unhelpful comment by the president, you notice that tillerson and governor haley have made very moderate, sensible comments, they did organize a security counsel in an admirable to confront north korea's nuke program. you know secretary mattis has disappeared from sight. there's no comment coming out of him. so i think there's an attempt to be rational. the only danger here, in my mind, is north korea's decision-making mechanism is unknown to us. this is a young guy, he's probably f

a nuclear war is something that every u.s. president has enormous u.s. responsibility to avoid or prevent. daryl: pettis philip -- kimball.\ thank you for your time this morning. >> there will be more discussion about north korea tomorrow morning on "washington journal." we are live at the state department on c-span, waiting for the briefing with the spokesperson. the president continuing to talk about north korea earlier today saying, my first order as president was to renovate and modernize our nuclear arsenal. it is more stronger and powerful than ever before. hopefully, he tweeted, we will never have to use this power, but there will not be a time that we are not the most powerful nation in the world. [general chatter] >> the state department briefing should likely be dominated by questions about north korea which, yesterday, following the president's remarks, said they were examining attacking the strategic territory of guam, where some 16,000 or more u.s. service members and their families are stationed. the government released a video on youtube w

but if the u.s. and south korea are involved in a preemptive strike, china and i'm quoting this article, will prevent them from doing so. scary stuff. things have eased up in part due to those threats by north korea. yearning u.s. pacific territory of guam, b-1 bombers there active again today. another regional player u.s. ally australia weighing in as well. prime minister today saying that country would stand shoulder to shoulder with the u.s. in the event of war. meanwhile, kwrerb south korea defense minister saying today that troops need to be on heightened alert. that defense ministry, as well as the pentagon today, saying, yes, u.s. and south korean joint military exercises will go on as planned from august 21st until the end of the month. tens of thousands of troops will be involved. and that is in part gotten north korea really riled up. we heard again from the north korean regime of kim jong-un through once again state media. there are words of hyperbolie today. president trump was driving th

the u.s. agree council condemns their outrageous actions, but holds big on that hold back a more sanctions. and regaining a stronger floating -- footing. good morning. good morning from new york city. this is "bloomberg daybreak." i am jonathan ferro. alongside alix steel. futures are solid. up a 10th of a percent after erasing losses yesterday after the session on tuesday. and f market, who wants to be aggressivelyx long on the euro? the confidence numbers are outstanding. economic sentiment at a decade high end a week away from the ecb meeting. treasury yields unchanged on the session, but near the lower end of the range. alix: taking a look at the impact of hurricane harvey on the markets. take a look at gasoline, another two-year high at 5% and the spread getting wider. wti versus brent off by six dollars, really speaking to the overproduction and oversupply of oil in the u.s. as the impact of hurricane harvey is truly felt. 2/10 of a -- up by percent. steady for now. and the commodity we

once u.s. show as sign of starting to carry out the full hearted plot, we will launch the korean-style pre-emptive retaliatory operation of justice to annihilate the minds of the thrice-cursed operation and all the criminals involved in it." that is in the wake of the intel that the regime has produced a

but now the u.s. may be poised to strike directly. with predator drones, ready at a u.s. base nearby. a new mission possible against a common enemy. >> an enemy that fights in ways that most people have never had to deal with. >> reporter: the u.s. is also sending more planes. philippine troops already getting help from u.s. special forces. and facing isis fighters, some of them trained in saudi arabia. troops have retaken this area from isis, but more than 140 of them have been killed here so far. by an isis attack planned in syria. >> directly ordered from syria, not only directly ordered, but directly from syria. >> reporter: as isis crumbles in syria and iraq, it's opening a new front. >> the isis message is we're not just confined to one geographical area, we have ten -- tenticles all over the world. >> reporter: their attack caused half a million people to flee. many angry at the air strikes. >> it's bad. our house is burning. >> your house is burning? >> we don't like it. >> reporter: american firepower may join this battle soon for a city isis still holds, and for

with the u.s. backed coalition forces advancing against islamic state in the iraqi city of thousands of civilians are being displaced forced to flee from both. the threat posed by terrorists the situation in the city has deteriorated dramatically causing humanitarian organizations to draw comparisons to the devastation witnessed in mosul. we were in from the shelling from. the people. our children a sick we're stranded here without there is no fresh water and some of the aid workers have been here but. this is my son he is suffering. far is the latest objective in the u.s. backed war on islamic state of the recapture of mosul. that left much of the city in ruins over the operation to liberate. control for three years now a little to ease the suffering of civilians. as more. fodder is the new ground zero in iraq on the one hand you have a massive formation of iraqi forces backed by u.s. led coalition air power versus. entrenched in the area for three years in the middle of that you have desperate ci

on the trump's new plan the u.s. is expected to send up to four thousand troops to afghanistan however the exact number is being kept secret america's top commodify the middle east of votes else is the new forces could arrive in just a matter of weeks the former u.s. congressman ron paul about the implication of the president's decision. he changes the words and makes it sound like the world will come apart if we don't continue to be the world's policeman he says he's not into nation building but there was a pretense anyway how many nations that we can really build or improve we've torn nations apart so he is seen as a flip flopper which i think politically is a bad position to be. going to be perpetual war nobody knows exactly who the enemy is and nobody will know when it is ended and i think trump has been maybe a little bit more upfront that his goal isn't to get done in six months or a year it looks like he's planning to be there for the long term. he wants to increase the troop levels mean he will but we don't k

u.s. territory of guam in the pacific, where american forces are stationed right now. this just hours after president trump said the united states would unleash fire and fury on the north if the threats continued. >>> breaking overnight, the intense manhunt for the suspect in the murder of a rookie police officer is over. the suspect taken into custody a few hours ago. >>> then another day, another line of severe storms moving east. torrential rains triggering flash floods and dramatic rescues along its path. >>> and the new science behind your instagram photos and your mental health. researchers say their new computer can figure out if you're depressed, just by looking at the pictures you're posting. so what does it say about us? we'll check that out on this wednesday, august 9th. >>> from abc news, this is "world news now." >> you were saying? >> i was saying that we were smiling in every one of those photos. >> we must be happy. >> we must be happy. >> something tells me there's more to

the u.s., but it's also the concern around geopolitical risk with the attack in spain and exacerbating the general risk off sentiment. taking a look at eurosterling, three times richard jones notes that eurosterling has basically failed its resistance level, but a push through could open up at 9415. we opening at 9425 on eurosterling. some though saying that sterling looking a little undervalued versus the euro at the moment. taking look at oil and it's heading for a third weekly loss, is then i'm looking at print premium at wti at the highest since october 2015. something to note because the brent backwardation could mean that we actually -- it's basically driven this. some people saying that we could see that discount of wti in some opportunity and more demand coming in for that u.s. crude. vonnie: thank you. staying on the markets, as we've been mentioning all morning, taylor in spain is the source of risk aversion gripping markets, perhaps some in europe. in u.s., uncertainty in the white

it occurs as u.s. and south korean military forces are conducting joint exercises in south korea and of course, that is an important part of this pure north korea fired a couple of missiles two days ago as well, and asked the un security jointl to discuss those exercises, calling them a provocation, which is a little bit ironic. so, there is no question in my mind that this was not any kind of commercial or satellite -related operation, but clearly meant to menace the community. the fact that they are flying this missile over the territory of the u.s. ally, certainly will put more pressure on the u.s. and its allies to respond. brian, a few more lines coming through at the moment. shinzo abe saying he wants to call on the chinese and russians to play a role with regard to north korea, on top of him saying he is in complete agreement with the united states on pyongyang. reaction out of the u.s. is fairly muted. what could be the fallout from all this? brian: japan would like to see a lot more from china

keeping it in the u.s., today is jobs day. the u.s. labor market marked this year with a modest wage unemployment.ling it probably delivered more of the same in july, that is according to estimates. they will get a scorecard for the first six months of president donald trump. joining us from singapore to talk about this is mark cudmore. mark, first off, we expect a little less in the first six average than we saw in the average of job gains last year. while this report will mark a similar trend, it is not the same kind of job growth we saw it last year, is it? mark: absolutely. as we get closer to full employment, there are less jobs to add. none of the things we might need to get the job numbers to stay high is a higher participation rate. even though the unemployment rate has slumped in the crisis, the participation rate in the u.s. remains low. the percentage of the working population in the u.s. that is actually working is just over 60%. that means 40% of the population is surviving on debt or savings and not relying on a regular i

of the u.s. congress approved the sanctions to target russia over alleged russian meddling in the twenty sixteen presidential election and in response to that while russia has announced the twelve hundred u.s. diplomats and technical stuff working in the country have to be cut down to four hundred and fifty five and that's to mash number of russian diplomats currently working in the u.s. and on top of that to diplomatic properties will be taken back including the riverside retreat and summer house right behind me. i will be about was more news at the top of the on. what else should seem wrong. why don't we all just don't call. me. yet to shape out these days comes out to get an ingenious read equals betrayal. when so many find themselves worlds apart we choose to look for common ground. with both. it was you know provision on my back when i wanted to be. there so you know i lost his boss because. we saw. any of those in person but the pressure on us i don't mean that has been. showing us you know

trump's words have also been widely condemned by u.s. lawmakers congressman eliot engel has called the latest remarks reckless he say's that trump is undermining america's security and putting its allies in danger we've got reaction from a number of analysts they believe that the u.s. president is taking huge risks by ratcheting up the tension. definitely think that the north korean leadership including supreme leader kim jong un has look to the examples of libya and iraq to see what happens in leaders when they gave up their nuclear weapons and particularly since july since last month when north korea tested two intercontinental ballistic missiles their leadership has taken a stronger stance against negotiations they've made it very clear that north korea's nuclear program is not on the negotiating table unless the u.s. changes its stance against north korea i think president trumps rhetoric calling for war and calling for destruction calling for unprecedented fire and fear is the wrong message to say by the u.s. president of his time a

the u.s. prepared to strike back? >> so the u.s. has a tremendous amount of defensive capability in the region already that's always based there. there are naval assets in japan. there are air assets all throughout the region. there are naval and air assets in guam, in south korea. right now their primary is a defensive capability, but if the need came about, they also have offensive capabilities. that includes b-1 bombers that would fly out of guam that we've seen fly many times recently on various missions. they also have, again, these naval assets that are right off the coast of south korea and nearby in the region that have defensive capabilities against a ballistic missile launch. then, of course, you know, the u.s. always has their cyber response that they don't like to talk about that we all know exists, though. i mean, yasmin, there is a tremendous amount of military firepower right there in the region, and then, of course, there's 28,000 u.s. military members right across the border i

the u.s. island territory of guam. our coverage begins with jeff zeleny. >> reporter: president trump doubling down on the words he said to north korea, not backing down from the fire and fury he said earlier in the week. at his golf course and resort in bedminster on thursday, president trump answering many questions from journalists. more than he has in months. specifically on north korea. he made clear that he will not take their threat lightly. >> if north korea does anything in terms of even thinking about attack of anybody that we love or we represent, our allies or us, they can be very, very nervous. i'll tell you what, they should be very nervous. things will happen to them like they never thought possible. >> reporter: again, the president making his policy, his doctrine indeed, toward north korea clearer than he has ever before. he's saying that he will not accept any action from kim jong-un. but not saying what the united states will do. he did not rule out preemptive strike on nort

this has been issues for the u.s. and we have had signals coming from trump, who praised the notion on going hard for support of terrorism, versus some of what was coming out of the state department. good image of what they are trying to come push year and the press panel last week. there is only so much you can do by telephone and he hopes to have envoys here and there will be more effective. traveledtant secretary last month and he is coming with the retired general. he used to be the special envoy to the u.s.. he is familiar with complex issues. tweet fromto see a president trump just break everything apart. tracy, we will keep a close eye on that. a quick check of some of the corporate stores from the middle east. abu dhabi stayed with the discussion on -- there are more than a dozen potential partners. he is seeking more chinese partners. developmentp the and a local dealer to build 150,000 vehicles there a year. the rest is according to a lady -- iranian state media. the specifics when i given on how much each p

funding for the u.s. mexico order wall, lawmakers returning in september, they will have to potentially deal with that in the budget battle. the mexican president has said that that is an -- a nonstarter. many union workers in the united states, including key places like michigan, which president in the election, wants to renegotiate the country of origin regarding terrorists -- terrorists -- ta riffs. is a: saying that our task difficult one, that is how the u.s. sort of frame things in the press conference. what was the tone from mexico and canada? we did hear from them as well. -- kevin:ciliatory it was conciliatory. this is where the politics really influence the policy. remember that midterm elections are coming up in 2018 here domestically. there are also new mexican elections next year as well. for mexico and the united states to get to some kind of agreement, bloomberg intelligence estimates that there could be an agreement reached by february. that said, the president's rhetoric on negotiations,

both the u.s. and mexico have said they want to finish negotiations as soon as possible, ideally before the end of the year because of upcoming elections in both countries. could you comment on whether that's a realistic timeline? also, if you could comment on those longer negotiations, if they are drawn out, how that could impact agricultural markets. thank you. >> mexico has two plans. they first one is to conclude renegotiation or modernization of the agreement as soon as possible. readout affecting the sense of the free trade agreement. the ideal would be we would be finished at the end of january. but if not, we will wait until the timing and essence of the trade will come. in the understanding that nafta will continue operating, we will wait. but as we say in aviation, in the very few case, in the on probable case -- o case that the , united states decides to quit nafta, mexico will work with the omc rules. wto. >> just one comment. canada doesn't have any elections, so i'm sort of caught in

u.s. troops could soon be heading to afghanistan, major garrett at the white house, charlie d'agata in kabul. major, the white house is working overtime to say the strategy is new. how much is really different? >> much of it is the same. so what is new-- the emphasis on counterterrorism. the use of special operators, air assets and the cia to relentlessly atact enemy wherever it is if that includes pakistan. rebuilding afghanistan is not central, it may not even be incidental to this mission. >> major, we had as many as 100,000 troops in afghanistan. couldn't seem to reach our objective. can we win this way? >> secretary of state, rex tillerson had a revealing answer to that question. contradicting president trump's assessment this could end in total victory. >> this entire effort is intended to put pressure on the taliban to, have the taliban understand you will not win a battlefield victory. we may not win one. but neither will you. >> the president thought long and hard about ending all

u.s. intelligence now thinks north korea has produced a miniaturized missile-ready nuclear weapon. has kim jong- >>> fire and fury, they say they will be met with unprecedented power. are these words escalating the already very tense situation. >>> a new cnn poll reveals a crisis of credibility for the president with a message for north korea. >>> president trump on a working vacation. is there a strategy to his on-line outbursts? >> i'm wolf blitzer. you're in "the situation room." > >>> we're following breaking news. disturbing news from north korea. u.s. intelligence analysts has assessed that north korea has produced a miniaturized nuclear warhead. experts say it's only a matter of time before the kim jong-un regime can launch a nuclear missile, and the country's foreign minister says its nuclear program is non-negotiable. president trump responded with a stunning threat saying the united states will respond with, quote, fire and fury like the world has never seen if north korea threat

george was a career u.s. intelligence professional who led the russia analysis unit at the central intelligence agency. he was an advisor on russia to vice president dick cheney during the bush administration. he was also the president of a data analytics firm called behavior matrix. we are very pleased to have both of them with us today. we will start with dan. i have asked each dan and george to speak for about 10 minutes. dan: thank you. i will try to hold it to 10 minutes. this is a complicated piece of legislation and i don't know what justice i can do to it in 10 minutes but i will try. this is largely from a business community perspective because i think george can speak to the other. i think it is worth spending a minute to talk about how we got 2014 at look back to the sanctions regime put in place by the obama administration through a series of executive orders. if you look at those sanctions, and there were really two key elements. one old and one new. the old element was the to abandon entities ba

they have said that if the u.s. struck north korea first that they'd have no choice but to back their neighbor north korea or if north korea struck the you asked first they would remain neutral but now we're learning that beijing has made comments aimed at south korea saying that if the south truly does not want war on the peninsula that they should stop these military drills immediately is this a valid request from china. china has made this request as part of a deescalation process the south korean the new south korean government to actually has also is open to dom's are using downgrading some of these military exercises but it most it is willing to do so in conjunction with the u.s. or only once the north shoots hand somewhat in terms of just when is it going to stop testing ballistic missiles as well as new. yes and when is it open to come back to the table the north koreans just haven't given that given that signal and therefore china has kind of got trapped in the middle it has its suspension for suspension po

it is a u.s. territory, so all puerto ricans are u.s. citizens who can easily come to the u.s., and they have come to find better economic opportunities. it's a huge story that very few people are covering, and we devoted an entire section. we've covered it through out the we devoted one day we spent a lot of time writing about this issue. in fact, it was interesting because all news is global and a leading newspaper in puerto rico ended up reporting of the fact that u.s. newspaper had report on puerto rico because of such a unique thing and no one paying attention to. it's just an interesting perspective. >> in fact, just to tie those last two points together, what eric and you were raising, what you have in u.s. newsrooms is if it doesn't matter to me, if it's not land on my front doorstep, i don't care. .. >> >> ethanol those other critical issues. end relives when you don't have a seat at the table and then the window into what is going on then you are not informed. >> is because americans are not interested or that some parts are no

u.s. out of words for the latest north korean provocation? president trump seems to think so. we will talk about what that means for american strategy toward north korea and kim jong-un. executive david olson wants donald trump to pardon michael milken. we will speak with him on his request later this hour. let's kick off with the bloomberg first word news with mark crumpton. mark: texas governor greg and that is holding a news conference in the state capital, austin, as texas battles floods affecting thousands of people. fortunately, the death toll has not been extensive, that thousands of people have been made homeless and are in shelters the cause of record amounts of rainfall left by harvey. meantime, the fema administrator is making it clear that the storm devastation stretches beyond houston. he gave an update today on the situation on the ground after harvey made a second landfall. , the effort oned houston. we have to understand there are multiple counties, over 50 counties impacte

what's the u.s. strategy? >> reporter: well, brooke, you heard what the president had to say on twitter today, that the u.s. is locked and loaded. it's pretty clear he's making no effort to tone down his rhetoric, and we also heard from him yesterday, saying, look, if north korea wants to strike near guam, go ahead, we'll see how we respond. he alluded there would be more fur a fire and furry. he's going to be meeting with nikki haley, the ambassador to the united nations, as well as secretary of state rex tillerson, these are two people that have been pivotal in pursuing diplomatic solutions to try to move forward in this crisis with north korea. they were both very important in this negotiation with the united nations to getting a unanimous vote to slap north korea with sanctions, so i think it's going to be fascinating to watch if trump's tone changes at all in the wake of that meeting. it was originally supposed to be a closed-door meeting, to press access. now we're expected to hear from them afterwards.