tv Early Start with Christine Romans and Dave Briggs CNN August 29, 2017 2:00am-2:59am PDT
stocks this year have largely ignored geopolitical events. one exception -- rising tensions with north korea. while markets are not freaking out, there is caution here. money flowing into so-called safe havens like gold, up .7%. the japanese yen considered a haven currency. it is currently at a four-month high against the u.s. dollar. flooding from tropical storm harvey keeping many oil refineries shut down, knocking at least ten key refineries off line. a third of america's refineries are on the texas coast including the second largest in the country. these closures remove about 2.2 million barrels of oil per day from supply. that means higher gas prices. the average u.s. gallon of gas is already up four cents from last week. expect a 5 to 15% rise the next few days. we think it's going to be temporary. gasoline futures rose again overnight. still down from a two-year high on sunday. you're going to get a pain at the pump. we think that's going to recede
in the next week ear or -- week or two. >> and "early start" returns now with the latest projections from now-tropical storm harvey. devastating scenes playing out across southeast texas as tens of thousands are stranded, waiting for rescue from harvey's wrath. the rain is not letting up just yet. we're live in texas ahead. president trump heads to texased to to survey the damage -- texas today to survey the damage. questions follow. did he really pardon a controversial sheriff to get more conk during the storm -- more coverage during the storm? north korea launches another missile. this one over japan. a serious escalation the prime minister says poses the most grave threat ever to japan. cnn is the only western news organization reporting live from north korea. we'll go there shortly. good morning and welcome to "early start," everybody. i'm dave briggs. >> i'm christine romans. it is tuesday, august 29th. it is 5:01 a.m. in the east.
5:31 in the evening in pyongyang. it's 4:00 in houston. this morning, desperation settling in for thousands of people on the texas gulf coast. they are still stranded by harvey. this with forecasters predicting there is much more rain, much more yet to come. >> there have now been more than 6,000 rescues by houston police and the coast guard alone. that does not include many other agencies out there saving lives. officials say there are potentially tens of thousands more people trapped, awaiting rescue. the coast guard says it's getting upwards of 1,000 calls per hour. >> the official storm-related death toll now stands at four people. several others are suspected to be connected to harvey. we expect this number to rise. an astounding 58 counties are under a state disaster declaration. all 12,000 members of the texas national guard have been deployed to assist. >> neighbors also trying to help
one another like the good samaritans here carrying out this wheelchair-bound man above the floodwaters. four-legged residents also getting help. the chambers county sheriff's office reports rescuing well over 300 animals yesterday alone. >> the terrible toll by harvey coming into focus in these before and after pictures. roads and highways, houses, green space, all simply unrecognizable. derek van dam joins us from sugarland, texas, southwest of houston. more than two feet of rain has already fallen. good morning. >> reporter: good morning. in fact, if we go back to june 1st, just in houston alone, 50 inches of rain has fallen. that's more rain than they receive in an entire year's time. it really puts it into perspective what we're dealing with here. rainfall totals have been remarkable, historical. from a meteorological perspective, it's incredible to
see what's happened here. and you can imagine that this has been a long, long, treacherous night for the -- for not only the rescue operations but also for the people stranded with the rising floodwaters. we have witnessed it firsthand behind me how quickly the water can rise and how quickly it can fall. it's got ebbs and flows, as various rain bands feed through the city of houston and across the area. historic areas coming from our angles. we've had search and rescue people, efforts rescuing people with medical conditions. we've had pets reunited with their family members, incredible, incredible stories. in fact, talking to one volunteer, they came across a house as they were navigating neighborhoods that had flooded. they had a sign draped over one of their balconies that wrote the letters "help," and that's the only reason they knew that there were people stranded within that particular
household. now the search and rescue efforts staged across the greater houston area have been remarkable, as well. just about five miles to the west at the sugarland, airport, there are 26 ready and fueled helicopters waiting for of first hint of daylight so they can continue with their search and rescue operations from the air. there's also staging facilities for boat rescues that have been ongoing all night. brave men and women volunteering their time and taking care of the stranded people. now the forecasts going forward is -- forecast is incredible, almost remarkable to see that this essential to is going to make a second landfall. that going to happen late tuesday night and into early wednesday morning. just east of houston. it will be a tropical storm. the fact that it's over the gulf waters now means that it still is pulling in a considerable amount of moisture. the threat continues to be the ongoing flooding. 15 million people under a flood threat now.
and many thousands in houston and the general southeast coast of texas hunkering down at shelters in hour. >> wet, miserable, drenched, and distressed. so many folks are. nice to see pictures of people helping people. strangers and friends alike. all those folks out there with boats at the ready trying to help folks out. thank you very much. a dire scene unfolding in texas. the unrelenting rain flooding many city streets and, in some cases, local rivers cresting at record levels, sending water rushing into neighborhoods. miguel marquez has more from la grange, texas. >> reporter: this is fayette county, we're about 100 miles west of houston. this gives you a sense of housewife big and wide the storm -- of how big and wide the storm is. this is the colorado river. typically a quarter mile that way. it is way, way above flood stage today. i want to show you how high it
came up here. this is the line here where it came up. it is starting to recede. this is the good news. you see the wet bit of the street here. this is where the river is now. it's down two or three feet at this point, and it's expected to keep going down slowly over the next several days and into next week. they hope to get back to somewhat of normal in la grange, texas. there's 4,800 people in this town. they had about 1,000 people displace e displaced. about 200 homes and businesses inundate near here. the worst of it is over for here, but towns downstream like columbus and others, down stream of the colorado river, they are looking at crests going into tuesday and further as the rains and the crest moves down the colorado river toward the gulf of mexico. christine, dave?
>> miguel, thank you for that. global stock markets, stock futures are falling overnight after north korea launched a missile over japan. the dow currently down about 125 points. more in a bit. flooding devastating the texas gulf coast. trying to assess how much damage this will cost. it's too early to tell. early estimates put property damage at $40 billion, making it one of the costliest storms to ever hit the u.s. only three hurricanes cost more. typically high winds caused the most damage. in harvey's case, it is flooding. many, many homes in the area do not have flood insurance. there's also damage to the oil industry. beyond the costs for the current shutdown of many oil refineries and rigs, the storm could damage $20 billion worth of infrastructure. eventually, texas needs federal help to help fund the cost. fema's 2017 relief fund only has
$3 billion left. congress would be able to pass a large aid package when it returns next week. another possible complication, government funding runs out september 30th. lawmakers must approve a spending bill before then to prevent a government shutdown. >> will this be politicized? greg vallier joins us to see how easy this may be to fund. ahead, president trump heads to texas, thus far passing the first natural disaster test. also raising questions -- did he use the storm to boost publicity for the pardon of joe arpaio? >> a lot of people think it was the right thing to do, john. and actually in the middle of a hurricane, even though was a friday evening, i assumed the ratings would be far higher than normally. y island has been aroud for a long, long time. reminds me of how geico has been saving people money for over 75 years. hey, big guy! come on in! let me guess your weight! win a prize! sure, why not. 12 ounces! sorry, mate. four ounces.
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austin and corpus christi. that's a hint. the president says congress will take "rapid action" on disaster relief funding. ahead of the trip, more than a little controversy, though. the president defended his decision to pardon former arizona sheriff joe arpaio. the president was criticized for ayoung the decision friday -- announcing the decision friday night just as hurricane harvey hit texas. many say the timing was meant to bury the story. the president insisted during a news conference yesterday that he wanted to draw attention to the pardon. >> a lot of people think it was the right thing to do, john. actually, in the middle of a hurricane, even though it was a friday evening, i assumed the ratings would be far higher than they would be normally. you know, the hurricane was just starting. >> timing it to maximize the news. >> that's right. >> arpaio was convicted of criminal contempt for ignoring a court order in a racial profiling case. the president said he felt "sheriff joe was treated unbelievably unfairly."
political economist greg vallier, chiefistrate -- chief strategist for horizon investments. let's start with hurricane, now tropical storm harvey on the minds of everyone as the president heads to texas. thus far, do you think he's passed the test pretty well, and what does he need to do today? >> i give him good grades for being on top of this, monitoring it closely. he absolutely, positively cannot do a victory lap and say things are getting much better, it's been well coordinated. i think clearly in the last 24 hours the level of human suffering has increased dramatically. it poured all night in houston, it's going to rain more. it's way too early to declare this a victory. >> yeah. there are so many people displaced. there are so many people still in their homes, and the water will ton rise. who will be displaced in the next few days?
and you have citizen rescuers out picking people up in their boats and in borrowed boats. it is a remarkable, remarkable story. and we are only in the very beginning of it here. it may be crass to talk about the functions of government and how to pay for this, but this will be a fight in washington, won't it? we have to fund the government in september. how does harvey complicate the work that's going to go on in washington in the next four to five weeks? >> i tell you, i'll give you a contrarian thought. that is the absolute necessity to pass a rurk relief bill does make it easier, perhaps, to avoid the debt ceiling crisis or budget crisis. they're going to put the hurricane aid on one of those bills. i would guess the debt ceiling bill. how can you vote against it? there will be a few. it's worth noting some texas republicans oppose the hurricane sandy aid. i think the opponents of any new
aid will get drowned by obviously the enormous support for aid. it makes it easier to get a budget deal done. >> that is haunting john cornyn out there speaking on behalf of victims as well as crews, as well, who voted against it. let's move on to interesting reporting regarding the russia story and ties to president trump. front-page news. the "post" reporting an ooem fr -- an e-mail from michael cohn that went directly to dimitri peskov talking about communications about a trump tower in moscow. where does that leave the investigation? >> i tell you, had it not been for north korea and the hurricane, this would be an even bigger story, dave. i think that you've got to
expect a robert muller to issue subpoenas -- robert mueller to issue subpoenas to find out what was solicited. this could be a big story. >> the president was asked about where he sees the threat level by russia at a press conference. listen to what he said -- >> mr. trump, would you consider russia a security threat? thank you. >> well, i consider many countries as a security threat, unfortunately. >> that caught a lot of folks by attention. you know, that he -- >> political punt. >> yeah. he won't say russia is a threat. he broadens it, moves it around it. >> that angle apparently will never change. he -- he has a blind spot for putin and the russians. i think that's going to prevail. i would add, though, the big story geopolitically as we know came overnight. i would argue that the latest north korean launch represents the greatest threat we've seen
so far to wider military action. i think you've got to see strikes against the korean missile sites are no longer off the table. i think they're very much in the mix now. >> yeah. we haven't heard the president use the language "fire and fury," no tweets about it. how do you expect the trump administration to react to that provocation? >> i'm sure they're talking to the japanese, and the japanese are aghast and feel threatened. i think that at the very least we're going to have to really ratchet up sanctions. i think negotiations are pointless. and again, i do think the pentagon has a plan. i think they prefer not to execute it. i think they have a plan to strike some of these missile sites if north korea continues this type of outrageous behavior. >> president trump did speak with shinzo abe on monday. the situation far, far from over. >> yep. >> come back in a few minutes, we'll talk some more. thank you. japan voicing grave concerns after that north korea missile
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kim jong-un, i believe he is starting to respect us. i respect that fact. >> well, apartmeparently not. the u.n. security council holding an urgent meeting in response to north korea after it flew a missile over japan. japanese prime minister shinzo abe calling the launch reckless and the most serious and grave threat to his country ever. will ripley is the only western
journalist in pyongyang right now. he joins us live from there with the latest. we're so lucky to have you there with the perspective that you're getting from the north korean regime. what are they telling you? >> reporter: as of now, officially this missile launch still hasn't been announced here in north korea. we were just out speaking with people. we're told that we could not tell them about the launch itself until there is the official, likely triumphant announcement on state media that could come tonight or tomorrow morning. north koreans are always the last to know when things like this happen. officials who are aware of the launch are telling us that this sends a strong message. a message of defiance and anger at the united states over the ongoing joint military exercises with south korea. it's noteworthy that they launched the missile at the pyongyang airport, 20 miles from our hotel. it's the airport we fly into when we come here. north korea, by launching a
missile in a highly populated area like the capital is saying essentially to the u.s. that if they even consider something like a preemptive strike on missile facilities, it could have grave humanitarian consequences. of course, the trajectory taking it up over northern japan, highly provocative to fly a missile over a key u.s. ally. five million japanese woken up with a frightening air raid siren and messages on their phones. the missile trajectory was not south toward guam, as north korea threatened several weeks ago. which japan's foreign minister hinted may be a sign of north korea backing down by not carrying out the threat. perhaps they thought strategically they could fire it this direction. of course, the north koreans will tell you they are not backing down whatsoever, and they are prepared to step up the escalation even further if they deem it to be necessary. >> fascinating. the ideas of you being able to go in the streets. you know this happened and can't say anything because the handlers control so tightly the information that the north korean people receive.
we know that analysts believe this launch shows a new level of confidence from north koreans. it is the 14th launch since february 2nd, the last few days. what is the effect on potential diplomatic efforts? >> reporter: you heard secretary of state rex tillerson praising north korea in the last week for showing restraint. it will be interesting to hear what he thinks now. he did speak over the weekend saying that any ballistic missile launch is a violation of u.n. security council resolutions. president trump and japanese prime minister shinzo abe spoke for 40 minutes in an emergency phone call last night. they talked about the need to potentially move for defensive military assets into the reason. south korean authorities told us that, as well. we might have more military equipment rolling in. you might see the u.s. and allies pressuring the u.n. for greater international sanctions. yet in the back-channel world, there's always ongoing back-channel discussions urgely
happening in new york. what -- usually happening in new york. what i have been told here is the discussions have not been happening much between the u.s. and north korea. and the previous discussions hadn't been very fruitful. north korea is not coming to the diplomatic table from a position of weakness. they say they'll do it from a position of strength which may be why they continue to defiantly test missiles. >> all right. will ripley. so -- so fortunate to have you there in pyongyang. thank you very much for that. stay safe. >> so many tests facing this president. devastation and desperation in texas, ton mention some inspace station -- not to mention some inspiration. we heard from guests earlier. the death toll is rising. and sadly, the rain is not letting up in texas. we're live with the damage and the forecast coming up. ♪ when heartburn hits fight back fast with tums chewy bites. fast relief in every bite. crunchy outside. chewy inside. tum tum tum tum
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southeast texas as first responders, friends, neighbors, and strangers help the tens of thousands stranded, waiting for rescue from harvey's wrath. this rain is not letting up, folks. we're live in texas. that's where president trump heads to survey the damage today. controversy follows him. did he time the pardon of a controversial arizona sheriff to maximize coverage during the storm? and north korea launches another missile. this one over japan. a serious escalation. the prime minister says it poses the most grave threat ever to japan. cnn is the only western news organization reporting live from north korea. will ripley is there for us this morning. welcome back to "early start." i'm christine romans. >> i'm dave briggs. 4:33 in houston, texas, this morning. that's where we start. desperation setting in for thousands of people on the texas gulf coast still stranded by harvey. this with forecasters predicting much more rain yet to come.
>> there have been more than 6,000 rescues by houston police and the coast guard alone. that does not include many other agencies out there saving lives. and regular folks and neighbors out helping neighbors. there are potentially tens of thousands more people awaiting rescue. the coast guard is getting upwards of 1,000 calls per hour. the form storm-related death toll stands at four with several others suspected to be connected to harvey. that total certainly expected to rise. an astounding 58 counties now under a state disaster declaration. all 12,000 members of the texas national guard have been deployed to assist. >> neighbors helping each other like the good samaritan carrying this wheelchair-bound man above the floodwaters. four-legged residents also needing help. the chambers county sheriff's office reports rescuing well over 300 animals yesterday alone. the terrible toll taken by harvey coming into focus in these before and after pictures.
roads, highways, houses, green space, all left unrecognizable. there in the middle of itall is cnn meteorologist derek van dam. he joins us now from sugarland, texas, southwest of houston, where over two feet of rain has fallen. the national weather service says south houston has received 43 inches of rain -- a year's worth -- in three days. what are you seeing this morning? >> reporter: it doesn't stop, right, dave? the rainfall is incredible. it has been relentless for three days since we started. of course, there's more to come. we'll get to the forecast in one second. i think it's important that we put this all into perspective. there are 15 million americans under a threat for flash flooding as we speak. if you combined the entire square mileage of people under imminent flash flood threat now, 50,000 square miles, roughly the same size as the state of louisiana. we have at the brazos river
earlier -- last night actually. that's about five miles west of here. incredible. i've got to tell you about this place. the river has risen 38 feet since saturday morning. within the past six hours, it's risen four feet. there's tons of communities and neighborhoods around the base of that particular river that are guaranteed most definitely under water as we speak. just looking at some of the flood inundation maps across the area, they were low lying and with record-setting flood stage here coming up in the next coming hours. they're being impact the by raging waters. we have heard harrowing stories coming from the volunteers and the swift water rescue teams that have offered their boats to find and seek out the people stranded in their homes. incredible, incredible stories which we've been talking about all morning long. in terms of the forecasts going
forward, more rain, that's the story. that's the theme. this storm has moved into the gulf of mexico and will make a second landfall. this is an unprecedented situation. by the time it does so early wednesday morning, we expect the heaviest of the rain to move across the southeastern portions of texas and eventually into louisiana. they've been battered very hard. flash flood warnings stretch from baton rouge into new orleans to galveston as well as areas around houston. we've got a long, long days if not weeks here across the southeastern united states. back to you. >> i'll say. derek van dam, thank you very much. again, the pictures telling the story better than anything. texans hit hard have been telling us their stories. listen to a woman trapped for a time in her home and lost everything to harvey and a man in friendswood who borrowed a boat to help rescue neighbors stranded by the waters.
>> it's surreal. it really is surreal. when you look around, the grass is replaced with water. you know what i mean? it looks like a marina. in you've ever been to a marina, you see boats. instead of vehicles, you're seeing boats, air boats. and you're seeing makeshift rafts and things like that. it's surreal. you want people to be safe. i moved from south florida to texas. so i've been through a few hurricanes. and i understand like you have to get to safety. if the area is flooding, get out of there. you can and will drown. you have to leave. if there's elderly people who can't move, like one of the homes -- i helped an elderly lady. and she was just sitting on her couch in the living room and didn't get up because her cane had floated away. i'm like, come on, man. we carried her, put her in the boat. it was really sad. >> so many people don't have flood insurance. you mention the 800-year flood
plain. places that haven't flooded before. do you know what you're going to do next on the fema or insurance front? >> caller: we're going to file everything like we're expected to do and see what happens. it's very, very scary. two teenage daughters that just started high school, and i wanted better for them than this. it's difficult to think about scoop -- to figure out where we're going to be living. we're fortunate because we have family. so many people don't. they're in shelters and big, huge buildings drinking bottled water and eating potato chips. it's -- it's horrible to think about. i don't know what the next step is for us, but we're amongst the lucky ones. no doubt about that. >> statistics, 1 is -- 15% of people in houston have flood insurance. >> that is frightening. >> houston is under water.
>> discuss might the desperation from rachel, before -- despite the desperation from rachel, before that, you heard the texas spirit in her friends and neighbors, the smiles you saw in the photos there was her children through all this adversity. president trump heads to texas today. how's he managing his first natural disaster test? and did he actually use this storm to boost publicity? the controversial pardon of sheriff joe arpaio. >> well, a lot of people think it was the right thing to do, john. actually, in the middle of a hurricane, even though it was a friday evening, i assumed the ratings would be far higher than they would be normally. the hurricane was just starting. e hundreds of dollars on my car insurance. huh. i should take a closer look at geico... (dog panting) geico has a 97% customer satisfaction rating! and fast and friendly claims service. speaking of service? oooo, just out. it was in. out. in! out. in!
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and corpus christi. give you a hint. the president says congress will take "rapid action" on disaster relief funding. let's bring back our political economist, chief strategist for horizon investments, greg vallier. good morning. let's talk about how well you think the president has done on this important relationship role. and you've mentioned to us that he's got to be careful about not taking a victory lap because there's still a lot that could go wrong here. >> i think so far he's done a pretty good job. he's been on top of it, he's convened a lot of meetings with people coordinating this. but as we see it the extent of human suffering -- people on roofs, people not getting medication, this is going to go on for a long time unfortunately. i think the one thing he has to avoids today is declaring victory. a victory lap would be inappropriate because we've got such a long way to go. >> certainly a great job by fema thus far. to the president's point that i
think you're going to see rapid action from congress, you're going to get your funding. given there are 12 legislative days once congress returns one week from today, given they have to fund the government and raise the debt ceiling, how easy will this be? >> sadly, the phrase rampant action by congress is an oxymoron. congress does not move quickly on anything. they're not back for a week. then it's going to take a few days to put a billion together. probably billions and billions of dollars in aid for hurricane victims. then the issue is does it move on its own or, more likely, does it become part of another bill, a debt ceiling increase, an overall budget? people who are worried about not getting a debt ceiling increase may have found an answer. that is to tie hurricane aid to the bill. it would make it much easier to pass. >> they didn't want to tie -- didn't want to tie the debt ceiling to the v.a. funding. you think this gives them an out maybe? >> i do, christine. i mean, maybe that can tie it to the overall think about. my sense is the overall budget
won't get resolved until december. they could tie it to the debt ceiling and make a debt ceiling passage virtually certain. i think they're going to go that direction. >> that's not all facing the president. you have the north korean threat with missiles launched over japan, and the russia neefgz -- serio -- russia investigation. "the new york times" and "washington post." and michael cohn, a close business associate to donald trump, e-mailing a top lieutenant of vladimir putin, dimitri peskov, asking about the trump tower, moscow, and the president punting on whether or not russia is a security threat to the united states. where does that leave him in all of this? >> well, it leaves him still in real trouble. i think robert mueller, special counsel, will subpoena michael cohn, asking him about these emails and what he was trying to do. trump seemed to indicate a benign view toward putin and russia. with all the stories -- north korea, the hurricane, we haven't
heard much about russia. believe me, that investigation is very active. >> what about the pardon of sheriff joe arpaio in arizona? t the president saying he did time it for maximum conk, maximum ratings around the harvey coverage the friday night pardon of arpaio. what is the angle here? >> he got a lot of coverage because he did it on a friday night and everyone saw it in that -- a hidden motive. i have a hunch, christine, that they had planned to release it friday night before harvey was even a hurricane. while it was still forming in the gulf, i think they had decided let's dump this on friday night or they don't get publicity. it's auction surrender to think he wanted to give this -- it's absurd to think he wanted to give this more attention. he didn't. >> breaking out the names, mark rich, susan rosenberg, chelsea manning, oscar lopez rivera. an interesting comparison, but he was ready for it.
greg vallier, we appreciate your time. >> you bet. >> the big x factor out there now is, frankly, north korea. >> no question about that. the catastrophic flooding in south texas sparks an outpouring of love and support across the sports world. >> coy wire with more on the "bleacher report." good morning. usually a city rallies around its teams. in this time of need, the teams are reaching out helping hands to help their fans and the people of houston. in the nba, rockets owner' leslie alexander is donating $4 million to mayor sylvester turner's hurricane harvey relief fund. the money is intended to help the city come back stronger than ever. major league baseball, astros' jim crane also donating to relief efforts. the mlb players association and league jointly pledged $1 million to several organizations including the american red cross. how about the nfl? patriots' owner robert kraft is going to match the first million dollars donated to the american red cross. and the pats have a special
connection to the city of houston. they've won two of their five super bowl titles there. how about individuals like texan star j.j. watt? i texted him. he is overwhelmed by the support his fund-raising effort has received including his own $100,000. the fund has raised $1.1 million. >> people are coming together. people are helping raise each other up. i think it's not only from the state of texas, it's from all over the country. i think that's something special about the country. that's what this country's about is helping each other when we're down. lifting each other up when we're down. i think we're in a time where obviously the city of houston, the state of texas, especially the southeastern part, is down. we need to help them as much as we can. i think it's been unbelievable to see the support that people have shown. >> j.j. received a text from another star. it became one of the largest donations to his funds. rockets' star, chris paul, made a $50,000 donation.
if you want to help j.j. help houston, visit youcaring/jjwatt. if you want to help texans staying in dallas, practicing at the cowboys' facilities, they've been unable to return home. the team is scheduled to play in houston in thursday. now they'll stay in dallas and play at at&t stadium against the cowboys on thursday. >> good to see you. >> good to see the athletes stepping up. a north korean missile launch is rattling world markets. global stocks down around the world. cnn "money stream" next. as master sergeant. refere they really appreciate the military family, and it really shows. we've got auto insurance, homeowners insurance. had an accident with a vehicle, i actually called usaa before we called the police. usaa was there hands-on very quick very prompt. i feel like we're being handled as people that actually have a genuine need. we're the webber family and we are usaa members for life. usaa, get your insurance quote today.
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kim jong-un, i believe he is starting to respect us. i respect that fact. >> apparently not. the u.n. security council holding an urgent meeting today in response to north korea launching a missile that flew over japan. the japanese prime minister shinzo abe calling the launch reckless and the most serious and grave threat to his country ever. will ripley is the only western journalist in pyongyang. he joins us live, 6:26 p.m. in pyongyang. what's the latest? >> reporter: more than 12 hours after this launch which has just created an uproar around the world, north koreans still not aware that it's happened. it hasn't been announced on state media yet. we were on the streets in the past few hours and were told we couldn't tell people yet because there wasn't an official announcement. officials in the know say this is a justifiable action in their view. they say it is the united states driving the situation on the peninsula to, as they put it,
the brink of an explosive nuclear war. and it was certainly a frightening development here in the region as this missile was launched did 20 miles from -- launched about 20 miles from where i am, the airport we flew into. this is where business people and tourists fly in. north korea perhaps sending a signal to the united states by launching from a piely populated areaa -- by a populated area that if the u.s. thinks about a strike, there could be grave consequences. they have an ability to launch from about anywhere. the missile flew over hokkaido. millions woke to sirens and messages telling them to take cover. the trajectory of the missile put it down in the pacific ocean harmlessly. it wasn't targeting population centers. sends a message that north korea has the capability to send this kind of missile that distance. and had they aimed it to the south, it could have come very close to guam.
something north korea has been threatening as early as a few weeks ago. in a phone call between president trump and japanese prime minister shinzo abe and south korea conducting its own ballistic missile drills in response as the tensions in this region continue to escalate. dave? >> kim jong-un has launched more missiles this year than his father did in his 17 years in power. will ripley in pyongyang. thanks. let's check cnn "money stream." that is top of mind. global stocks and u.s. futures falling overnight after the north korean launch of a missile over japan. european markets down more than 1%. you see german markets down almost 2%. the u.s., the dow, dow futures down 130 points now. stocks this year have largely ignored geopolitical events. but the only exception there, north korea. markets are not freaking out yet. there is caution on the north korean situation. money is flowing into so-called safe havens like gold. prices there up about .7%. flooding right now devastating the texas gulf coast, trying to tally the damage in the early going.
it's too soon to have exact numbers. the early estimates put property damage at $40 billion, making this one of the costliest storms ever to hit the u.s. only three hurricanes cost more. typically high winds cause the most damage. in this case, in harvey's case, this is a flooding event. and many homes don't have flood insurance. 15%, just 15% of homes in the houston area are covered under the national flood program. thanks for joining us, i'm christine romans. >> i'm dave briggs. houston bracing for another hit from harvey. how much more rain is coming to an already-flooded region? "new day" starts right now. it's definitely a very, very scary time. >> officials say there are potentially tens of thousands more people trapped, awaiting rescue. >> we are just beginning the process of responding to the storm. >> it happene