North Korea Says ICBM Can Carry Nuke, Will Be Able To Hit US This Year

Well, the headlines are coming fast and furious out of the Korean Peninsula and they aren’t what one might call “conciliatory” following Pyongyang’s successful ICBM test.

Have a look (via Bloomberg):

“Testing an ICBM represents a new escalation of the threat to the United States, our allies and partners, the region, and the world,” Sec. of State Rex Tillerson says in statement.

• “U.S. seeks only the peaceful denuclearization of the Korean Peninsula and the end of threatening actions by North Korea. As we, along with others, have made clear, we will never accept a nuclear-armed North Korea”
• “We intend to bring North Korea’s provocative action before the UN Security Council and enact stronger measures to hold the DPRK accountable”: statement
• Says President Trump, national security team continuing to assess situation

S. Korea, U.S. hold joint missile drills against N. Korea https://t.co/QG5P604faD

— Yonhap News Agency (@YonhapNews) July 4, 2017

NEW: Secretary Tillerson on North Korea missile test: U.S. "strongly condemns North Korea's launch of an intercontinental ballistic missile" pic.twitter.com/VEv3BYjx9T

— ABC News (@ABC) July 4, 2017

BREAKING: The US and S. Korea conducted a joint ballistic missile drill in response to North Korea's missile launch https://t.co/30nJWckBQ7 pic.twitter.com/7YVqDooBdO

— CNN (@CNN) July 4, 2017

And here are the headlines that are spooking folks:

• N.KOREA KIM: WON’T NEGOTIATE UNLESS U.S. SCRAPS THREATS: YONHAP
• N. KOREA SAYS ITS ICBM CAN CARRY LARGE NUCLEAR WARHEAD: YONHAP
• N. KOREA AIMS TO DEVELOP ICBM CAPABLE OF HITTING U.S. IN 2017

That last one seems to have been all the market was willing to stomach for now. USDJPY is on the move:

Here are the details, again via Bloomberg (do note the “gift package” bit):

North Korean leader Kim Jong Un is “firmly determined and committed” to test an ICBM that can hit the U.S. mainland within this year, the state-run Korean Central News Agency says in statement.

• N. Korea tested yesterday ICBM capability of carrying newly- developed, large-sized nuclear warhead
• N. Korea tested ICBM for re-entry capability
• Kim Jong Un said U.S. must be upset with “gift package” that he sent for its Independence Day and says he will send more in future
• Kim Jong Un said he won’t put nuclear and ballistic missiles on negotiation table unless U.S. withdraws its nuclear threats