now, let's welcome jonathan fenby and also with us is virginie maisonneuve. th korea and the two sides, do you believe north korea? or do you think that we have to be skeptical? jonathan: we have to be skeptical with north korea. there is no way of their find this kind of thing. before theay just young leader said he was giving himself a birthday present. what it does, it reinforces the concern. the south focused on china sea and china and japan. but you have north korea there, perhaps the most dangerous. this area is essential in global growth picking up. we have a downturn in china. we have uncertainties in japan. politicalreally big and global economic story. the relations between the north and the south, could they get worse? jonathan: they could get worse. they are deeply embarrassed by this. north korea is meant to be the little brother. but china can't exert the kind of influence that it wants to over this small, pretty poor nation. tom: let's first look at the yen reaction, bring it out. this is the intraday. we moved down. that is a stronger yen, that