welcome to "newsline." it's thursday, july 11th. i'm catherine kobayashi in tokyo. senior officials have sat down from around a table in washington and gone through the necessities of protocol. when they got to business, they had to put that diplomacy aside. they find themselves at odds over cyber security and competing economic interests. delegates are taking part in the annual u.s.-china strategic and economic dialogue. treasury secretary jack lew called to do more to tighten
cyber security. >> those who participate including innovators and the holders of property are preserved and government-sponsored intrusion. >> the vice president said chinese leaders should play a more responsible in world affairs. china said they would never undermine the national interests. >> translator: misunderstandings and differences of opinion are causing friction in the economic interests of both countries. we use dialogue to minimize countries and avoid turning trade problems into political issues. >> u.s. and chinese leaders launched the dialogue in 2009. they hoped to manage the relationship between the world's two largest economies. u.s. and chinese firms not only compete, but depend on each
others. investments surged nearly times over years and many of those firms are being abouting fixtures in the u.s. economy. >> this is a city of detroit in the midwest. it's for the country's old manufacturing industry. more have expanded into detroit. the local auto parts makers have bought out. this group has been that is rapidly growing through acquisitions. this is the president of the u.s. unit. he will send from china headquarters about 20 years ago. he started with all sales with just a few employees. >> in the beginning it was difficult. you start from nothing. >> he has brought out businesses
across the u.s. it owns 26 companies under the american wing. it employs more than 12,000 workers. annual sales have grown to $3 billion. one in every three vehicles produced in the u.s. uses products from the companies. the farm acquired this old manufacturer in 2006. it's a 90-year-old company with many years as a major car maker. it failed to improve its bottom line. they were worried about welcoming part of a chinese company. they allowed the american management to run the parts maker. to build trust.
the local workers and replaced them with chinese. >> we always wanted to team up with the local management team. we don't see anyone from china. this is their company. not somebody's company in chicago, you know. >> they drastically reduced cost by switching to lower priced products imported from the operations in china. with a strong financial base, the farm expanded operations, building a new plant in mexico. >> they are very supportive and we are very supportive of them and appreciate all that they are doing. >> but aggressive acquisitions are causing controversy in the u.s. last year they had lithium makers with cutting edge
technology in electric cost. some members of congress have voiced strong concerns. they are worried china is snapping up u.s. advanced technology through m&a deals. >> that gave more public resistance. if there is a dependency, there tends to be less conflict. it's a positive development, particularly when it doesn't raise issues of national security or arguments over technology transfers and things like that. >> the two countries want to strengthen economic ties. the question is what shape will those ties take in the coming years. nhk world. >> we go to egypt where authorities are escalating on
crack down by mohamed morsy. the violence left more than 50 people dead. the state run news agencies ordered the the arrest of the supreme leader and nine other senior members. they alleged the men prepared weapons for pro morsi demonstrators and issued orders for the murder of troops. members have denounced the military coop that top e8ed morsi and they demand he is reinstated. the holy month of ramadan began and groups in cairo say they fear the fighting will disturb their religious activities. they want to observe ramadan peacefully. officials in the obama administration expressed concerns over the arrest order for muslim brotherhood leaders. >> there is a crisis in egypt and the way to move beyond
crisis and towards a better future is for the authorities to embrace the process that is inclusi inclusive. that leads to a transition back to a civilian democratically elected government. >> u.s. officials have refused to take sides. he said it's in the best interest of the united states to assist in their transition to democracy. residents of a town in canada are demanding answers after a train accident that killed some of their neighbors. the head of the company that operated the oil tanker train said the driver may have failed to properly set the brakes. the cargo train ran more than 70 cars long and rolled away from a station on saturday with no one at the controls. it derailed in the center of the town in quebec that exploded. 15 people have been confirmed dead. about 50 others missing. rail way company officials
denied responsibility. the president visited the site on wednesday and acknowledged the possibility of human error. >> the fact that when the air brakes are released on the locomotive, that the train ran away would indicate that the brakes on the balance of the train were not properly applied. >> police are interviewing the train's engineer. he left the train after stopping it on a hill about kilometers from the crash site. executives at two phone companies, in japan and the other in the united states are breathing a sigh of relief. they cleared all the formalities to become one. we go to the business desk. good morning. >> the japanese executives can finally expand into this new territory. japanese telecom firm soft bank
completed the purchase of the 30 largest mobile carrier sprint-nextel. the companies agreed on the planned acquisition price of $1.6 billion. soft bank chairman will also chair sprint and accelerate the company's expansion in the united states. and minutes of the u.s. federal reserve's policy meeting last month may calm markets to some extent and show many policy makers want more time to confirm ament improved before deciding when to scale back monetary easing. they show there was a view among policy makers to continue the current monetary easing until next year. about half the members of the policy board if they wound down this year. ben bernanke suggested after the last meeting that the fed could start to taper within the year and end them completely by mid
2014. u.s. jobs data for june released last week were better than the markets expected. it remains to be seen how policy makers will view this improvement. the dow jones ended almost unchanged as they digested the fed's minutes. for more on the japanese markets, we go to the tokyo stock exchange. the focus is on bank of japan andy woo are seeing the dollar tumbling against other currencies. how is this affecting the stock market? >> good morning. i will talk about the currency market in a bit, but first here are the opening levels for thursday, july 11th. the nikkei is lower by 0.72% at 14,313 points. the broader topix is lower by almost 0.7%. with the yen's strength, tokyo faces selling pressure and a lot of focuses on the out come of
the meeting. the boj is likely to keep the easing policy unchanged, but will be watching for any vises. now investors are questioning the timing of a potential reduction in the feds. monetary support for the u.s. economy. after the release of the fed minutes, chairman ben bernanke said that the u.s. central bank will not raise interest rates for sometime even if they reach 6.5%. let's not forget last friday's jobs report showed that the unemployment rate in the u.s. remained at 7.6% in june. investors are selling the doctor as many expect them to maintain that for a period of time. let's take a look at dollar-yen. dollar-yen is at 99.42-47 compared to the lower 101 level
around the same time on wednesday. we saw the dollar fall as low as the lower 98 level earlier here in tokyo. as the lowest level in two weeks. let's have a look at the euro dollar trading at 1.309-3100. we saw the dollar fall against the common currency. we see data on jobless claims and investors get more direction for that. moving on to euro yen, trading at 130.20-32, recovering from the upper 127 level on wednesday. the euro strength against the dollar is encouraging them to buy the common currency. just before the market opened, we received positive data on machinery orders for may. it's up 10.5% which is an improvement from the previous
figure of minus 8.8%. we will see how it plays into the markets as well. back to you. >> thanks a lot for that. from the tokyo stock exchange. a u.s. federal court has ruled that apple conspired with five publishers to raise prices of electronic books. the district court in new york stated that apple violated antitrust laws. the presiding judge said the it giant created a mechanism and environment that enabled apple and the publishers to work together. the aim was to eliminate all competition for the ebooks. the firm will appeal the ruling. the officials said apple has done nothing wrong and the firm will continue to find against the false accusations. they sued apple and the publishers back in april of 2012. they said apple introduced a scheme to gain 30% of sales in
and more than half of fishing ports on the pacific coast must be rebuilt. people in north eastern japan still face challenges following the 2011 disaster. but step by step, they are moving forward. see their stories every wednesday on the road ahead right here on "newsline." >> workers at the fukushima nuclear plant are struggling to cope with one problem after another. nuclear regulators say it's highly likely that contaminated water is seeping into the sea. they have a working group to find the cause and find ways to stop it. the plant's operator has been reporting high levels of substances in a well near the sea since may. they said on tuesday that levels of cesium in a new observation well had raised several hundred times. officials of the nuclear
regulation authority discussed the problem on monday. it is essential to find out why this is occurring. we need to come up with effective counter measures. we should put measures to stop the leak. >> tokyo electric officials sa i they will fully cooperate with the nra working group. the number of scrambles against chinese aircraft by japan's self defense force has fallen for the first time in 15 months. that's according to new defense ministry data on suspected airspace violations for april to june. ministry officials say 59 out of 115 scrambles during the three-month period was against the aircraft. that's from january through march. 31 interceptor flights remain against russian aircraft and nine against north korean
fighter jets during the most recent quarter. they said they will monitor the situation to determine if the trend will continue. >> japanese prime minister abe spent his first six months in office working to revitalize the economy. voters will soon have a chance to judge him on the results. they cast ballots in an upper house election later this month. opposition parties hold the majority of seats in the chamber. he and his liberal party aim to wrestle back control. in the days leading up to when judge pan decides will be looking at the campaign issues and hearing from voters about what matters to them. candidates from the nine parties are running in the election. they qualified for party status and include long established parties and others that were recently founded. several groups have failed to
meet the standards of fielding candidates. 433 candidates including independents are running in this election. an issue that has come up as a priority with voters in poll after poll is post disaster recovery. nearly 300,000 people from north eastern japan are still considered evacuees. more than two years after the earthquake and tsunami ravaged communities. many of them are frustrated with the pace of the reconstruction effort. so when they vote in the upper house election, they will be casting ballots for the party they feel will give them their lives back. temporary housing units over part of the landscape. the 65-year-old and his wife
have stayed in this unit that has low ceilings and walls that offer little insulation. >> in this housing, it's extremely hot in summer. really cold in winter. it's so confined. >> prime minister abe made disaster reconstruction among his top priorities. his administration increased spending over the next three years by 30%. to $250 billion. but people in the northeast homes are frustrated. they say the rebuilding process has been too slow. many people can't construct their homes where they used to be. municipal authorities are moving communities to higher ground in case of future tsunami.
so they need to create plots by flattening mountains and parking. they say people won't be able to start rebuilding for at least two years. >> translator: i would like them to construct new residential places earlier and temporary housing, some elderly people have already died. we want to move to normal homes as soon as possible. >> he wonders how he will pay to rebuilt his home. the tsunami destroyed a boat-repairing company he worked for along with ports and the many boats. he only has a part-time job now. he qualifies for about $50,000 in public assistance, but the national average housingri time.
he and his wife want politicians to know people in the northeast are desperate to get their lives back. >> translator: i want all the political parties to get together to help rebuild disaster-hit communities sooner so that we can live in our houses again. >> he and many others want the reconstruction effort to produce results. he hopes this will be the last election he watches from temporary housing. nhk world, japan. . >> we will be looking at a number of different issues ahead of the upper house election. many people in japan have demonstrations against nuclear power following the next fukushima. why that spirit of protest has
faded. >> prime minister abe worked to redo the economy and get back to growth. he is setting his sights on amending the constitution, but his party must make a strong showing in the upper house election to push the policies forward. less than a year after putting abe in power, they have a chance to judge him on his record. don't miss our special coverage leading up to the july 21st election here on "newsline." . >> time for a check on the weather am people in the caribbean are dealing with the remnants of a storm that made landfall there. we have the latest. >> good morning, catherine. as you may recall, we have been tracking the storm system. tropical storm chantal. it has become a remnant low pressure system south of haiti. yesterday was the peak of the stormy conditions across the caribbean.
let me show you a video. it has lost force, but it's threatening floods around the surrounding countries. fishing has been suspended because of the rough seas. the peak of the weather is over, but the remnants are expected to affect jamaica, eastern cuba through thursday and then towards florida peninsula by friday. pulling you back, you can see the storm system is bringing cloud formation over the countries. looks like it will bring the bulk of the rain across the eastern cuba area and hispanola. we will keep a close eye on this and take precautions for it. to the north, scattered thundershowers across the florida peninsula and into the higher tennessee valley. they could be erupting in the region and down into the tennessee valley. severe weather includes
thunderstorms with large hail and tornadic activity that cannot be ruled out. another area is in the central to high plains. we have a tornado touchdown in colorado ready and this is likely to continue. across the four corners region, we will see scattered showers that could be on the heavy level. to temperatures towards the south that are looking high, 36 in oklahoma city and we are looking at the same in fresno. with these temperatures, you are likely to see the temperatures rise quickly. it takes ten minutes for the inside of the car to heat ten degrees. do not leave animals or children unattended. bring water bottles if you need to travel. across asia where we have been tracking this system, this has a clear eye to find with the cloud formation. you can see the spinning. it's quite a big system. it is a very strong typhoon
status. it looks like it will be intensifying over the warm water. the temperature is about 30 degrees or even above that. that will feed this system and make it violent. and it will bring stormy conditions to japan. about 12 meter high waves on friday. it looks like it could make landfall in taiwan over the weekend. they have rip currents and swells and these are going to be a huge concern. not only that, but this is starting at 39 degrees. they hit 35 again today. that will be recorded history for four days.
right now, i'm doing a little bit of work clearing out this old tree trunk. you know, it seems like the pick and the shovel have been a part of our state's history for hundreds of years now, dating back to the early days when we built those first railroads and highways and did all that mining for gold. well, on this particular adventure, we're gonna visit two different places in our state that were literally created by using the pick and the shovel. they were created by two different men with a very clear vision of what they wanted to do. now, this is gonna be one of the most unusual adventures we've ever been on, because both of these places we're going to are underground.