at the same time these are the words that came from south korea's dovish president, the man who was elected to power just a few months ago, and t advocating for greater dialogue. he said today, i believe our given task is reform the military. i believe we need a complete overhaul instead of defense reform at the level of minor improvements for modifications. to put that into context, these are words he spoke at a ceremony. he said these words to military commanders. these were not a direct response to the ratcheting up of rhetoric we've seen from both south korea and the u.s. but this is certainly a realization of the intensity of the situation that has unfolded on the peninsula and the security threat that south korea very much feels that they are under. they've lived under a threat for decades. it has certainly reached its highest level when you talk about the fact that north korea has shown that they can test these icbms, that they may have the capacity to miniaturize a nuclear weapon. look, north korea doesn't need to use nukes, they don't need to use icbms to launch an attack right here in the region. they can use the conv

t america is doing this. we are apparently better than. the sea people you've never heard of love redacted tonight . president of the world bank very. seriously he sent us an e-mail. but again south korea says it may send a special envoy to pyongyang if the no one stops its missile and nuclear tests meanwhile the u.s. is taking a much harder line on the crisis as president trump has made clear the era of strategic patience is over with regard to north korea all options are on the table in the united states will continue to bring the full range of american power economic and diplomatic until north korea abandon its nuclear and ballistic missile programs those comments to come despite the fact that north north korea said it would hold off on strikes and donald trump cool appealing and this decision very wise. looks now at how american policy seems to go against what the international community is pushing for when it comes to foreign policy it seems that trump is trying to twist the knife into some of the most volatile international issues. there's fire and fury for north korea while the international community is calling for deescalation in the region trying to spouting some of the most

what is the t the's end game going to be and what is he trying to do? there are 52 million people in south korea. there are 26 million people in north korea. i just heard senator rich say wel -- risch say we're going to take them out. what are we taking out and how? it's going to be a difficult problem set and i'm not sure we're ready for the type of conflict being advertised right now. >> general marks, on that front, the president says if the united states strikes he gives a totally different perspective, he says it's going to be successful and done quickly which harkens back to words we heard in iraq, very different situation and we're still not done. here he is today. >> i have no choice but to take it on and i'm taking it on and we'll either be very, very successful or very, very successful in a different way quickly. >> our barbara starr reports that there's no evidence of deployment as general hertling just referred to yet you have tonight a possibility of a major theater war that the president put on the table and he's added a military option in venezuela that he brought up himself in co

t >> cnn covering the story with our team of correspondents. our senior koefrnt ivan watson is live at the meetings in manila. and alexander field in seoul, south korea. ivan we start with you. urging leaders to isolate korea more but there is push back from those who say dialogue here is the answer. what do you hear? >> that's right. southeast asian nations which is organizing this diplomatic dwajerring here, they did pitch back from a u.s. proposal to suspend north korea from an asian regional forum that the north korean foreign minister is attending this afternoon. supposed to be starting as we speak, now. arguing that it is better to have dialogue to deescalate tensions on the korean peninsula. the u.s. has been playing an interesting strategy. on the one hand, conducting its own ballistic missile tests. overflights, bomber, overflights over the korean peninsula. at the same time, secretary of state rex tillerson said hey we would be willing to talk to the north koreans, just please stop firing missiles. maybe the willingness to lead help et other countries on the crisis, rush why and china namely, to agree to this week end's security council res

south korea all chief freedom guardian war games the games take place every year and simulate both defensive and ah that's of strategies in a potential war with the north r t we recently spoke with christine on the co-founder of the korea policy institute about the significance of these war games i mean look at the camino that you're exercises that are raised between the u.s. . these are the largest in the world they involved be one of their aircraft carriers simulating asian a preemptive strike on earth and that would to capital it's regime and so you know i don't think that north korea is paranoia is not justified it is because they feel that their regime and their country sovereignty is a threat and it's the i think that's where the conversation needs to go is what are we going to do to assuage the reality that the u.s. is truly not about regime change. for more on this let's go now to. he's a senior asia pacific international relations policy specialist at the institute for china america studies there rob good to see you today just as we thought the volatile rhetoric was calming down we thought quiet for the last week or so now north korea has unveiled

japan and south korea threaten a strong response. and calls for caution. t. credit spreads start to widen. show me the insulation. new york fed president bill dudley on deck to speak, and markets get the latest read in the u.s. welcome to bloomberg day break on this thursday, august 10. m alix steel alongside david westin. jonathan is off today. we head into the open of trading here. s&p futures down by 10 points. but remember, that dip was bought yesterday. s&p closed relatively flat on the day. a euro-dollar treading water around 1.17 as the dollar moves slowly higher. you have some buying coming into the treasury market. yields moving down by one basis point after a mushy auction yesterday, $15 billion of 30-year notes are going to be auctioned at 1:00 p.m. gold up for three days in a row, up.

south korea as a deterrent to another invasion. >> we're always constantly on alert. we're always looking out for that. we're ready in case something happens. >> reporter: it would be tempting to think tingering anger about the war is the only reason the north still hates the u.s. it's more come kplated than that. >> it's an island of poverty surrounded by an ocean of prosperity. the north has trouble just feeding the its own people. >> a lot as changed around north korea and inside north korea since the korean war. >> reporter: the jor chanmajor the north has a arsenal and preparing that with a missile to hit the u.s. he says right now it's unlikely. >> if they try to deliver a nuclear weapon, it wouldn't get much further than alaska and might break up on reentry. >> reporter: one day they may have a missile with the range leaving the trump administration to do something since every american has tried and fiailed o do, control the north korean threat. >>> there are new developments following the investigation high-rise four. four others are being evacuated after they could collapse in the event of a gas explosion. the work may never have been done. thousands of buildings are still be

japan and south korea threaten a strong response. and calls for caution. t. rowe price warns of fragility in risk assets, and credit spreads start to widen. show me the insulation. new york fed president bill dudley on deck to speak, and markets get the latest read in the u.s. welcome to bloomberg day break on this thursday, august 10. m alix steel alongside david westin. jonathan is off today. we head into the open of trading here. s&p futures down by 10 points. but remember, that dip was bought yesterday. s&p closed relatively flat on the day. a euro-dollar treading water around 1.17 as the dollar moves slowly higher. you have some buying coming into the treasury market. yields moving down by one basis point after a mushy auction yesterday, $15 billion of 30-year notes are going to be auctioned at 1:00 p.m. gold up for three days in a row, up. david kohl's is reporting they had a slight beat on revenue. but they did better on earnings per share, $1.24 as opposed to $1.19. that's the first of several to come. now we want to go to our morning brief. we're goi

t torpedo boats over and sink a couple ships and have the government collapse. they can't fire a rocket and with a single rocket disestablish the government of south korea. so it puts more pressure on south korean politics and we have to be very strong with japan, otherwise japan will believe it needs its own nuclear determent in the region. so this is really about packing deterrence into a much smaller area and with difficult actors. north koreans, i agree with the man who said kim has been rational. he has been rational in terms of developing this nuclear capacity to prevent the united states from taking action against him. that is rational. but if you look at the north korean negotiating style in the past and their behavior in the past, they are impulsive. they are not rational the way washington, d.c. lawyers are rational. they don't believe and accept compromise. they don't do give and take in their negotiations. they do seize and take in negotiations. so talking to north korea and establishing the understanding that we'll stabilize the north korean peninsula in a nuclear environment will be a real hard piece of work, it will take a lot of thought m

strike onon north korea -- and he were to respond, even if he responds entirely ineptly, he can kill thousands of south korean civilians. will donald trump get the blame of the world for that? t> no.or i mean if the north koreans retaliated i and killed scores f people, i don't see how trump could be blamed for that. we have to keep in mind here, this is not the president's problem in terms of how this whole crisis unwound. theac obama administration was supposed to have pivoted to the asia pacific. but they cut right sores of the u.s. military. our own aircraft carriers can barely maintain f-18 fighter jets.s. you can't put it at the blame of the t trump administration for what's happening. >> mark: harry, jim, thanks a lot. susan rice spent four years as president obama's national security advisor. and during that time the threat from north korea only grew. now susan rice is criticizing the trump administrationcu for trying a different strategy while warning that a preemptive attack would be a terrible idea. >> what i worry about is this discussion and preparation potentially for what the administration has called preventive war, or preemptive war. envision the united state

korea but you can in china. so the answer is to be very targeted about what you're going to do. the south african sanctions back in the '70s under carter actually worked tchange they were trying to do. whether you like it or not they're effective. there needs to be these very targeted sanctions, just like we talked about with venezuela. there are individuals in china who make money providing parts, equipment and all the kinds of things that they need. that is who we have to go. that is for steven mnuchin. david: i have to go. i have to ask you before we do if the sanctions don't work will we have to take a militarily offensive measure to stop them from going the distance and getting icbms with nukes on them? >> look it, you are the dad of a marine and i am a marine. the last option ought to be military force but it ought not to be taken off the table. david: leave it at that. colonel oliver north. >> you got my answer, buddy. david: thank you very much. melissa: more than just a better deal for americans. new warning for democrats if they want to win back the white house, and it doesn't involve resisting the president. ♪ fy nose? fy nose? can't sleep? t

t trump adadministration c continue to e the case for a pre-emptive military strike against north korea. president trump is slated to annonounce an update on the e u. military strategy in afghanistan and south asia during a televised address at 9:00 p.m. eastern standard time tonight. the announcement comes after trump gathered with his top military advisers at camp david in maryland on friday. the trump administration has been sharply divided on the u.s. strategy in afghanistan. trump's top generals have been pressing trump to deploy thousands more u.s. troops, while former white house chief strategist steven bannon and other members of the administration had been pushing to privatize the u.s. war. this plan now seems less likely after bannon's departure from the white house. former blackwater founder erik prince, who has been proposing the privatization plan, wass barred from friday's trip to camp d david. in iraq, the u.s.-backed iraqi military has launched a new campaign to seize control of the city of tal afar from isis. tal afar, which sits about 50 miles west of mosul, is one of the last major cities in iraq under isis control. the u.u.s. milititary is supporg the battle with a bombi

t he's not going to go around am and theg guam and not going to threaten the united states or japan and he's not going to threaten south korea. korea. is as not a dare, as you say. sidents a statement of fact. >> the president vowed to maintain the strongest nuclear force no matter the cost. hewould prefer no nuclear eapons and the complications h ko or their pursuit present. >> i would like to denuke the torld. wouldd like russia and the theed states and china and pakistan and many other countries that have nuclear havens get rid of them. > in california, james mattis said the pentagon can confront north korea, but diplomats are i the lead. >> my responsibility is to have ry optionsptions should they be uldded. you can see the american effort dipiplomatically led. it has diplomatic traction and hening diplomatic results. >> the president said he doubts the latest round of sanctions gainst north korea will succeed heltried to entice them with a prospect of trade deals if they t ti out, playing an economic card for the first time since it intensified. >> thank you. joints. military said joint exercises with south korean force

korea, a followed by de escalation. >> nobody in the world wants this war, china doesn't want it, the south koreans don't want it, japan doesn't want t i hope we don't want t and the cost would be so tremendous, that american administrations all through recent history have in the end chosen its better not to fight. >> japan meantime saying this morning, that it can defends itself from north korean missiles. >> enough must ills to overwhelm defense system. >> the threat we're going to face is anywhere from 50 to 75 north korean icbm's. >> and so let's just say that those missiles get through that we do very well, and we get 65 out of 70. >> that's not good enough for america. >> well, not good enough. and in the meantime, as far as possible talks are concerned, the north koreans say that dialogue is not possible with president trump. >> mike, karen? >> well, our secretary of state rex tillerson still wants to talk. >> all right, doug. >> that's right. >> see you tomorrow. >> all right, 7:15. exactly. >> other development, f.b.i. agent have raided the home of former trump campaign chairman paul manafort. it happened about two weeks ago

t 2,000 calls for help. they are stretched thin as you can imagine and they are asking anyone with boats to help and people are stepping up. >> north korea not happy that u.s. and southted conducting joint military exercises now in their second week. >> united nations representative from north korea sent a letter to u.n. security council saying in part waging such provocative and aggressive joint military exercises in the korean peninsula which has already turned into a tender box is nothing short of histeric conduct to add fuel to the raging flames. >> this news comes after north korea fired three more missiles over the weekend and arrived days before the u.s. is set it bar most of its citizens from traveling to that country. >> our will ripley is the only western tv correspondent to go to north korea since the most recent tensions, and he reports some americans are rushing to beat the band. >> in your letter to the european security council, they are watching every move of the united states. they say they have their finger in the trigger as drills always engage the regime here in pyongyang and yet in the middle of all of this there is a dwrup group of americans ins

south korea. president trump also fully pardons former sheriff of arizona's maricopa county announcing on twitter, quote: i am pleased continue to form you that i have just granted full pardon t american patriot sheriff joe arpaio. he kept arizona safe. he says he is grateful for the president's support for law and order. >> it's great. i love that president. he supports law enforcement. i'm very humbled i said publicly recently pardon or no pardon, i will be with him to the end. ainsley: 85-year-old was facing up to six months in jail and calls the conviction a witch-hunt. also in this morning, more changes in the oval office. this time deputy assistant to the president dr. sebastian gorka, he has left the administration. officials say he did not resign but he, quote, no longer works there. and, of course, this comes as chief of staff john kelly continues to make changes including the departure of steve bannon. clayton: every friday. abby: a lot of changes. clayton: every friday. who will be next friday? abby: where is harvey heading now? rick reichmuth in the storm's path. we will check with him and what we can expect in the hours and days to come. that's coming up next. ♪

t. south korea says it may send a special envoy to pyongyang if the north stops its missile and nuclear tests and that it is pursuing a diplomatic solution to the crisis on the peninsula that is in contrast to the much harder line the us is take as president travis made clear the era of strategic patience is over with regard to north korea all options are on the table in the united states will continue to bring the full range of american power economic and diplomatic. all those comments to come despite the fact that north korea earlier said it would hold off a strike which donald trump called a very wise decision jaclyn vehicle looks now at how american foreign policy often goes against the wishes of the international community. including a possible military option if that's or whatever happened in terms promises of making the world a less nasty place to live i would love to be able to get along with everybody right now the world is a mess but i think by the time we finish i think it's going to be a lot better place to live for now it seems the president has zero intentions of making fr

south korea to halt our military exercises in, changes for vague promises of north korea suspending its missile and nuclear activities. that's a bad deal. and the trump administration was right to reject t moreover, before any talks in any format, the united states and our partners must demand that pyongyang first meet the denuclearization commitments that it has already agreed to in the past and subsequently chose to brazenly violate. president trump should continue to press with president xi that a denuclearized korean peninsula is in both nation's long-term interests. as admiral harry harris rightfully noted, we want to bring kim jong-un to his senses, not his knees. to achieve this goal, beijing must choose whether it wants to work with the united states or bear the consequences of keeping kim john unilateral in power. two weeks ago i introduced legislation called the north korean enablers accountability act. this legislation took takes the first steps toward imposing a total economic embargo on north contrary, including a ban on anient that i does business with north korea or its enablers from using the united states financial system and imposing u.s. sanctions on all those partici