[Ripley:] Remember how President Trump said that the North Korean short-range ballistic launches don't really bother him? Well, now, a top North Korean official is using the president's own words to justify the repeated provocations that are in violation of U.N. Security Council resolutions. North Korea also threatening to freeze South Korea out of the talks with the U.S. This is according to North Korea's state-run news agency. Pyongyang also escalating its effort to stop joint military drills staged by South Korea and the U.S. even though their own drills continue unabated. On Saturday, President Trump tweeted that he received a letter from North Korean leader Kim Jong Un a letter complaining about the exercises and saying that Kim wants to restart negotiations, which President Trump is apparently open to. For the latest on all of this, let's bring in CNN's Paula Hancocks live in Seoul. Not a great time for South Korean President Moon Jae- in, who has staked his claim on being a mediator. Now, North Korea is saying they could freeze him out.
[Paula Hancocks, Cnn International Correspondent:] Well, that's right, Will. I mean, North Korean Foreign Ministry, speaking and writing in state- run media, has slammed South Korea, saying that they could cancel all talks with Seoul if they decide to carry on with these joint military drills or if they don't give a valid excuse for why they're carrying them out. Now bear in mind, these drills they started yesterday, officially. They'll be going on until the 20th of August. They are not the large field exercises that you usually see at the end of some of those who have been downsized significantly, officials say, so that they can give diplomacy a chance to work. What we're seeing is soldiers sitting at computers and simulated exercises, but still enough to annoy North Korea. And we've only seen that over recent weeks. Five missile tests in 2 12 weeks. The U.S. president, Donald Trump, as well, is downplaying the fact that these drills are going these launches are going ahead. He has said they are not nuclear tests, they are not long-range ICBM missile tests so he's OK with it. He also talked over the weekend and tweeted about the letter that he received from North Korean leader Kim Jong Un, calling it very beautiful, calling it very positive, and also saying that Kim Jong Un has said that he is willing to meet and start negotiating as soon as these joint military drills are over. But, of course, bear in mind just a couple of months ago when he met President Trump at the DMZ, he said that he would start negotiations within a couple of weeks. So, once again, North Korea pushing back the start of those negotiations. Now, President Trump also saying there was a small apology within that letter for the short-range missiles Will.
[Ripley:] But, President Trump essentially giving his permission for those launches to continue all but guarantees we'll see more as these drills go on in the coming weeks. Paula Hancocks live in Seoul. Thank you.
[Kosik:] OK, let's get a check on "CNN Business" this morning. Taking a look at global markets, it looks like Asian stocks are recovering after a volatile week last week. China set the reference point for the yuan at just over seven for per dollar today and that's the third session in a row it's above that psychological that psychologically important number on Wall Street. Checking out futures here, we're seeing red arrows before the opening bell. We've seen futures a little choppy this morning as the yuan is slightly stronger than expected. And markets are closely watching the exchange rate after fears last week that the trade war could become a currency war. Universal Pictures pulling its release of the movie "The Hunt". The decision comes a week after the two deadly mass shootings in El Paso, Texas and Dayton, Ohio. The movie depicts strangers who wake up and discover they are the target of a violent hunt. The studio said in a statement that now is not the right time to release this film, but it did not address whether the decision was directly related to the two tragedies. The film was set to be released on September 27th. The hard seltzer market having a movement here and it's about to get even bigger. Brewing company AB InBev launching a new line of spiked seltzer. It will be made under the Natural Light brand, which is known for its affordability. The new drink will face off against category leader White Claw. That drink saw its sales grow 283 percent in July compared to last year. The new Natural Light seltzer will be 20 percent cheaper than White Claw and sold in larger packages. You're going to be first to drink it, I know it.
[Ripley:] I had no idea hard seltzer was even a thing. I leave the U.S. and look what happens.
[Kosik:] All right, we'll be right back.