Headlines have crossed this morning, from KCNA, with North Korean leader Kim Jong Un calling for an increase in nuclear weapon output. Kim also stated that preparations need to be made to use nuclear weapons at any time.

• Elsewhere, North Korean confirmed it conducted an underwater strategic weapons test over the weekend, and that it conducted a tactical ballistic missile test of a nuclear weapon yesterday (see this Bloomberg link for more details).
• This comes ahead of further US-South Korean military exercises, with a US aircraft carrier expected to arrive in Busan port today.