A threat by North Korea to bomb the American-run island of Guam has led to a response by US President Donald Trump in what appears to be an aside during a media engagement. He has threatened North Korea with what he called "fire, fury and frankly, power, the likes of which this world has never seen before" after early morning reports by the Washington Post that Pyongyang is apparently capable of building a small nuclear bomb to arm its intercontinental ballistic missiles.
Pyongyang's official news agency KCNA responded by saying that North Korea is considering striking the island of Guam using its Hwasong-12 rocket. China, which is a crucial player in this tit-for-tat verbal battle, has remained silent following last week's sanctions by the United Nations Security Council imposed on North Korea. That follows its recent missile test which included a long-range rocket landing inside Japanese waters.
Guam is home to a American submarine squadron as well as a vital airport and navy facility. The spike in the aggressive language has led to a world market sell off on Wednesday 9th August,