The 10 most important things in the world right now

An undated picture released by North Korea’s Korean Central News Agency (KCNA) via KNS on March 7, 2017 shows the launch of four ballistic missiles by the Korean People’s Army (KPA) during a military drill at an undisclosed location in North Korea. Photo: STR/ AFP/ Getty Images.

Hello! Here’s what you need to know on Tuesday.

1. US president Donald Trump issued an intense warning to North Korea on Tuesday, saying it was “best not make any more threats to the United States” or it would “be met with fire and fury like the world has never seen”. Meanwhile US lawmakers have thrown cold water on Trump’s fiery warning to North Korea, saying he “is not helping the situation”.

2. Just hours after Trump’s warning, North Korea threatened strikes on Guam. A spokesman for North Korea’s military told KCNA that it would carry out a pre-emptive operation if there were signs of US provocation. Since then tensions have escalated, although George Charfauros, the Homeland Security Adviser to Guam, sought to calm the island’s residents, saying its defenses were ready.

3. The war of words between the US and North Korea had a ripple effect on markets across Asia which looked shaky on Wednesday. Though the moves in markets so far have been modest, it’s clear that investors have begun to price in the likelihood that this latest war of words could turn into something more sinister.

4. Japanese fighters conducted air drills close to the Korean peninsula. The 10-hour exercise around Japan’s southern Kyushu island involved two US Air Force B-1B Lancer bombers and two Japanese F-2 jet fighters.

5. Regulators must remain “very very” vigilant about the risks to the UK economy, says former UK Labour chancellor Lord Darling. Speaking on the 10th anniversary of the 2007 crash, he said a rising level of consumer debt in the economy was a growing concern.

6. The new powers released to Scotland after Brexit will likely be discussed in talks between the UK and Scottish ministers on Wednesday when first secretary of state Damian Green meets with deputy first minister John Swinney and Scotland’s Brexit minister Michael Russell in Edinburgh.

7. There’s a ticking time bomb in China’s shadow financial system. Autonomous Research, the firm behind one of the top China analysts, says: “WMPs [Wealth Management Products] and Chinese banks more generally have become so large and complex that any major problems could be just as destabilizing to the global economy as what occurred in 2008.”

8. A 7.0 magnitude earthquake in China’s Sichuan province has killed 13 people and injured many more. The death toll is expected to rise. In 2008, more than 70,000 people were killed in a quake in the same area.

9. The Taliban released 235 hostages after it massacred 50 civilians in remote Afghanistan, although there are fears that there are still an unknown number of people being kept hostage.

10. Mazda has made a game-changing fuel efficiency breakthrough other carmakers have spent decades working on. The Japanese manufacturer will soon reveal a combustion engine using compression technology, making its petrol-driven cars cheaper to run than a Tesla Model S.

And finally…

A couple bought one of the most exclusive streets in San Francisco for $90,000 — take a look inside

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