Today's Headlines

Bloomberg: 

• With Powerful Nuclear Bomb, Kim Dares Trump and Xi to Stop Him. In detonating North Korea’s most powerful nuclear bomb yet, Kim Jong Un is betting it’s too late for either U.S. President Donald Trump or Chinese leader Xi Jinping to be able to take away his atomic arsenal. Kim’s regime claimed on Sunday it successfully detonated a hydrogen bomb that can fit onto an intercontinental ballistic missile, advancing its quest to be able to hit the U.S. with a nuclear weapon. Earlier in the day it said it now had a bomb with a maximum force topping 100 kilotons -- more than six times the magnitude of what the U.S. detonated over Hiroshima. Regardless of whether it was actually a hydrogen bomb, the explosion was big enough to “pretty much end an American city” if strapped on an ICBM, according to Vipin Narang, an associate professor of political science at the Massachusetts Institute of Technology who focuses on nuclear issues. That makes it harder for either the U.S. or China to force Kim to back down, he said.

• Russia Condemns North Korea's Nuclear Test, Urges Composure. Russia condemned North Korea’s test of a hydrogen bomb on Sunday, but said it was premature to discuss any new sanctions against the isolated country. “Actions of Pyongyang that it thinks will lead to recognizing its nuclear status are unacceptable for us,” Deputy Foreign Minister Sergei Ryabkov said by telephone in Xiamen, where the leaders of Russia, China, Brazil, India and South Africa are meeting. “We are still convinced that the problem of denuclearization of the Korean peninsula can be solved only through dialog.”

• Investors Can't Get Enough of China's Property Developer Bonds. Dollar bonds sold by China’s property developers are being lapped up by investors, lured by the companies’ stronger earnings and improving credit profiles. Notes sold in July and August by Chinese developers attracted orders 6.3 times the issue size, compared with 2.5 times in May and June, according to data compiled by Bloomberg where deal statistics are available. The firms are taking advantage of the better sentiment, with bond sales rising to a record $35.2 billion this year.

• Yen Leads Haven Assets Higher as North Korea Tests Hydrogen Bomb. The yen and the Swiss franc strengthened after North Korea tested a nuclear bomb on Sunday, spurring demand for haven assets. The currencies were the best performers on Monday among the Group-of-10 exchange rates after the official Korean Central News Agency said it carried out the test in an act of “self-defense” against its enemies. President Donald Trump threatened to increase economic sanctions and halt trade with any nation doing business with North Korea. While the flight to safer assets was measured, any escalation of rhetoric may worsen investor sentiment, analysts said. The U.S., Japan, France, the U.K. and South Korea have called for an emergency meeting of the United Nations Security Council on Monday, UN Ambassador Nikki Haley said on Twitter. The yen gained 0.8 percent to 109.42 per dollar as of 6:01 a.m. in Sydney on Monday after advancing as much as 0.9 percent earlier. The currency dropped 0.8 percent last week amid speculation global economic growth is improving.

• S&P 500 Index Futures Decline Following North Korea Nuclear Test. (video) September contracts on the S&P 500 Index were down 0.4 percent at 6:21 p.m. in New York, following five days of gains in the cash market. U.S. traders are using an overnight session of CME Group’s electronic platform to transact equity futures on a holiday weekend before exchanges reopen Tuesday.

• Caribbean Islands Begin Preparations for Hurricane Irma.

Wall Street Journal:

• Officials Warn of Health Hazards in the Wake of Harvey. Wild animals, contaminated water among the dangers facing those returning to their homes.

• Secretive Apple(AAPL) Tries to Open Up On Artificial Intelligence. Tech giant launches a blog, participates in conferences as it seeks to draw attention to its AI efforts.

Barron's:

• Had bullish commentary on (ALL), (ANDV), (TRU), (COO), (NATH), (PCLN), (IT) and (PGR).

• Had bearish commentary on .

MarketWatch.com:

• Why Trump’s latest North Korea threat is a bluff.

Fox News:

• Trump, Mattis, Mnuchin warn North Korea of 'overwhelming' military response, halted trade. (video)

CNBC:

• These are the 'robot proof' jobs of the future: Pew Research. (video)

• South Korea immediately calls for 'toughest retaliation measures' after North conducts another nuclear test.

Zero Hedge:

• "Appeasement Will Not Work": Trump Responds To North Korea "Hydrogen Bomb" Test.

• Mattis: North Korea Threats To US, Allies "Will Be Met With Massive Military Response".

• South Korea Holds Ballistic Missile Drill "Targeting North Korea Nuclear Test Site".

• "We'll See" Trump Responds Asked If He'll Attack N.Korea, May Halt Trade With Any Country Doing Business With Kim.

• How Welfare States Encourage Bad Economic Thinking.

• Texas Governor: "Harvey Could Cost Up To $180 Billion".

• Cohn "Fed Chair" Odds Plunge In Prediction Markets.

• "Self Drive Act" Passes House Committee 54-0: Safety Standards Scrapped, 25,000 Driverless Cars Coming Right Up.

• Modi's Demonetization Called "Colossal Failure That Ruined Economy" As India GDP Growth Slumps To 2-Year Lows.

Business Insider:

• Hurricane Harvey could have a massive impact on US oil production in the short-term.

• A pitiful Labor Day box office ends a historically awful summer movie season.