Get the latest market trends in your inbox

Stay on top of the latest market trends and economic insights with the Axios Markets newsletter. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Denver news in your inbox

Catch up on the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Des Moines news in your inbox

Catch up on the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Minneapolis-St. Paul news in your inbox

Catch up on the most important stories affecting your hometown with Axios Minneapolis-St. Paul

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tampa-St. Petersburg news in your inbox

Catch up on the most important stories affecting your hometown with Axios Tampa-St. Petersburg

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

KRT via AP Video

With America rightly focused on the epic catastrophe in Texas, North Korea brazenly violated the sovereignty of Japan by firing a midrange ballistic missile, designed to carry a nuclear payload, over Japan and into the Pacific Ocean.

  • Investors were rattled; global stocks fell this morning.
  • White House statement this morning: "Threatening and destabilizing actions only increase the North Korean regime's isolation in the region and among all nations of the world. All options are on the table."
  • AP says the launch was "likely the longest ever from the North — over the territory of a close U.S. ally [and sending] a clear message of defiance."
  • The N.Y. Times calls it "a direct challenge to Mr. Trump."
  • CFR President Richard Haass, author of the sadly apt "A World in Disarray," tweeted that the launch "will stimulate missile defense buildup as well as intensify consideration of preventive military action."

How to think about it ... Two experts email me:

  • Richard Haass I: "The fact that NK took the provocative step of launching a missile over Japan raises the possibility that it cannot be assumed to act responsibly vis-a-vis anyone, including ourselves. Such an assumption is essential if we are to place our faith in deterrence. If we cannot make such an assumption, and if arms control fails to deliver, then a preventive strike becomes a serious option, notwithstanding its high risks and potential costs."
  • Richard Haass II: "The fact that NK keeps testing with no let-up [shows] there is little to no chance it will give up its nuclear weapons and missiles; the only question to me is whether it might agree to some sort of cap or ceiling."
  • Ian Bremmer, president and founder of Eurasia Group (in his signature style): "china knows that trump has been pushing for tariffs/trade war despite their recent improvements in cooperation on north korea ... so it's hard to see beijing taking a much harder line here."
  • Ian Bremmer II: "few believe the us has a credible military option vs north korea. but us relations with china are set to deteriorate significantly. and a blow up with north korea will help bring that about."

Go deeper:

  • "The Deterrence War" — AP's Eric Talmadge: "Conventional knowledge says that if North Korea were ever to use its nuclear weapons, it would be an act of suicide. But brace yourself for what deterrence experts call the 'theory of victory.' To many who have studied how nuclear strategies actually work, it's conceivable Pyongyang could launch its nukes and still survive. Its most recent missile test suggests again it's racing to prepare itself to do just that — but only if forced into a corner."
  • Ned Price, a National Security Council spokesman in the Obama administration, argues for Foreign Policy ("Trump's Nuclear Crisis Was Of His Own Making") that Trump's "fire and fury" threat provoked "an entirely manufactured crisis magnified by an irrational response from an American president eager to display bravado and bluster on the world stage."
  • Catch up quick with Axios' Shannon Vavra.
Subscribe to Axios AM/PM for a daily rundown of what's new and why it matters, directly from Mike Allen.
Please enter a valid email.
Please enter a valid email.
Server error. Please try a different email.
Subscribed! Look for Axios AM and PM in your inbox tomorrow or read the latest Axios AM now.

Go deeper

2 hours ago - Podcasts

Former Georgia Gov. Roy Barnes on the Senate runoffs

The future of U.S. politics, and all that flows from it, is in the hands of Georgia voters when they vote in two Senate runoffs on January 5.

Axios Re:Cap digs into the election dynamics with former Georgia Gov. Roy Barnes, a Democrat who served between 1999 and 2003.

2 hours ago - Health

Cuomo orders emergency hospital protocols as COVID capacity dwindles

Gov. Andrew Cuomo. Photo: Lev Radin/Pacific Press/LightRocket via Getty Images

New York Gov. Andrew Cuomo said on Monday that struggling state hospital systems must transfer patients to sites that are not nearing capacity, as rising coronavirus cases and hospitalizations strain medical resources.

Why it matters: New York does not expect to get the same kind of help from thousands of out-of-state doctors and nurses that it got this spring, Cuomo acknowledged, as most of the country battles skyrocketing COVID hospitalizations and infections.

Arizona certifies Biden's win

Photo: Demetrius Freeman/The Washington Post via Getty Images

Arizona officials certified the state's presidential election results on Monday, paving the way for President-elect Joe Biden to be awarded its 11 electoral votes.

Why it matters: The move deals yet another blow to President Trump's efforts to block or delay certification in key swing states that he lost. Biden beat the president in Arizona by more than 10,000 votes.