european union leaders meet to chart a way forward on their debt crisis. welcome to "newsline." i'm catherine kobayashi in tokyo. leaders from across europe gathered in brussels for an emergency summit on a problem that concerns them all. it worries people elsewhere, too. they're trying to prevent their debt problems from spreading.

leaders kicked off two days of meetings with an in formal dinner at the headquarters. they worry about budget deficits. they are trying to get fiscal discipline. it includes imposing penalties when budget deficits exceed preset levels. and national legislation to balance budgets is being put forward. revision of the eu treaty and revision of a new accord are suggested to impose stricter rules on members. leaders will for the first time discuss a plan to issue common eurozone bonds. they're studying possible cooperation with the international monetary fund to expand the eurozone bailout fund. the european central bank was also calling a meeting in frankfurt. they have the power to buy bonds in troubled nations to stabilize

markets. is this similar to what we have seen in the u.s.? >> it looks like the ecb is not even going to go there. the president appears cautious about buying more of the region's government bonds. he told reporters thursday he is surprised by market speculation that ecb may increase its bond purchases. market participants are reportedly concerned the european debt woes may engulf italy and the bailout fund may run short of money to buy up government bonds. he stopped short of declaring the central bank would step up sovereign bond buying when prices decline. >> i was kind of surprised by the implicit meaning given not by all the press but some to the other elements would follow. >> on the same day, ecb policy makers decided to cut key

interest rate by a quarter percentage point, bringing it down to 1%. it was intended to prevent the debt crisis from eroding the economy. following the statement by the ecb chief, yields on italian bonds jumped in the european markets overnight. the yield on italy's ten year government bonds shot up to the upper 6% level, while the yield on spain's ten year bonds rose to the high 5% level. it unsettled european stock markets. france lost 2.5%. now let's check on tokyo markets. overnight on concerns eu leaders may not be able to contain debt issues in the region, the dow-jones snapped three days of gains. for more on what's happening here in japan, we are going to cross to ramin mellegard at the tokyo stock exchange. ramin, so the major focus is the eu summit in brussels now. how are the markets reacting to

this. >> very good morning to you, ai. let's go straight to the levels. opening levels for nikkei and topix, you can see the immediate impact. both indexes trading lower. 146 points down for the nikkei. we are definitely seeing follow through selling in japan after the dow closed below that key 12,000, down almost 200 points. and the negative sentiment from stocks also showing through on developments from the european debt situation in commodities. we did see gold down 1.8%, and the price of wti benchmark crude oil also down more than 2%. the interesting point here, ai, is that with all the focus on europe and selloffs in the stock markets, it is just coming actually when data in the u.s. is showing small improvements in the jobs data. we had weekly claims numbers just out thursday, which showed an improvement and showing its

lowest level since february, and just last week, the unemployment rate in the u.s. fell below 9%. so a lot of focus here on developments in the eu and summit meeting, and also following on for the european central bank cutting its rate, seems like the markets are just ignoring some positive bits of news. ai? >> ramin, also update us on the currency markets. amid all this, europe had a volatile session. >> it has been up and down in the last 24 hours. initially getting a boost from words that a fiscal reform measure would be put through, but then some eu leaders actually cast some doubts on the truthfulness of that, so obviously markets now have to see how things develop over the weekend. and on friday, having a look at some of the levels now, euro yen trading around 103 levels. that compares to 104 this time

yesterday. so you're seeing some yen strength there. let's not forget in asia pacific we have key data, in china, consumer price index, industrial output and retail sales. that may also effect trading in asia pacific region as well. i'll have all the market reactions next monday morning when we'll know more about the eu summit. for now, back to you. >> all right, we will keep an eye on those agency indicators today. thanks a lot, ramin mellegard. back to the main news with katheri katherine. >> thanks very much. iran released a tv image of what it says is a downed u.s. stealth drone. if true, it would be a rare chance to examine u.s. military technology. the image shows no significant damage to the vehicle. iran announced on state media it had shot down a spy plane that entered air space on the eastern

border with afghanistan. u.s. forces in afghanistan admitted an unmanned drone was missing. iran's foreign ministry denounced intrusion to the swiss ambassador that represents u.s. interests in the country. japan decided to take additional steps to hold iran's continued nuclear program in check. the government has drawn up further financial sanctions against the country. the move follows last month's report by the international atomic energy agency. it said iran's nuclear program could have military applications after the country tested explosives that could be used to trigger nuclear weapons. japan has decided to strengthen the current financial sanctions and apply further pressure on iran, in coordination with other countries including the u.s. and britain. the two already announced new sanctions. japan's added sanctions would freeze assets of 106 organizations and one individual suspected of ties to iran's nuclear development. japan will ban three iran

related financial institutions from transacting business with japanese financial firms. it excluded the central bank of iran from the new sanctions, however. the bank handles most of the settlements for japan's oil imports from iran. japan relies on iran for nearly 10% of its oil imports. the federal bank is included in the new u.s. and british sanctions. russian prime minister vladimir putin accused u.s. secretary of state hillary clinton of inciting forces to alleged election fraud. putin made the statement in a meeting with supporters in moscow. clinton commented she has serious concerns about results of the recent russian parliamentary elections. the prime minister said the u.s. secretary of state called the elections unfair, even before election monitors submitted their report. putin said the demonstrations escalated after her comments signaled to protesters that the u.s. state department supports

them. he also said demonstrations would be allowed if permitted by authorities. unauthorized protests would be stopped. putin's accusations reflect increasing tensions between the u.s. and russia. japan's diet assembled a panel of experts to examine the cause of the accident at the fukushima daiichi plant. the panel which is independent of the government received letters of appointment thursday. they include panel chairman, a former chairman of the science council of japan, and a no bell chemistry laurie at. he later told a joint council of upper and lower houses he is ready and willing to undertake this task. >> translator: i am an expert not in nuclear technology. all sorts of technical knowledge must be brought together for analysis if we are to find

solutions to the problems exposed by the nuclear accident. >> unlike a separate government panel investigating the same accident, the diet panel will basically open meetings to the public. it can demand the right to investigate state affairs, and summon tokyo electric power company to submit date a they plan to hold the first meeting soon. they are to submit rules to the chairs of the two diet chambers by around june. workers at the fukushima daiichi plant are rushing to meet an impending deadline. they want to bring reactors to cold shut down by end of the year. the fuel inside three reactors melted through the bottoms of their furnaces. in today's nuclear watch, plant operators try to identify where all the fuel has gone. they can't check it firsthand.

that's too dangerous. so experts are consulting a wide range of data. >> tepco built reactors at fukushima daiichi to power thousands of homes and businesses. now there's rot inside number one. analysts estimate all the nuclear fuel has melted through the furnace. much of it into the containment vessel. concrete covers the bottom of the vessel. it was up to two and a half meters at the thickest point, but high temperatures eroded parts of it. in the worst case, fuel may have melted 65 sent me ters into the concrete. in some places, leaving just 37 sent meters before a steel shield, the final barrier. company spokespersons increase the concrete in all three reactors stopped eroding. >> the bottom of the vessel is filled with water, so i don't

change my view that the fuel in the reactors has been cooled down. >> nuclear experts have come up with several scenarios to describe what's going on inside the reactors. our reporter has been reporting on this since march 11th. he tells us how the recent analysis will effect the work to recondition the reactors. we will guide you with simultaneous interpretation. >> translator: the most important data is the temperature of melted fuel. but there is no thermometer there, so no way of knowing it firsthand. the government says the two conditions must be met to declare the state of cold shut down. one is that the temperatures of the bottom of the reactor are kept under 100 degrees celsius, and release of radioactive material has been substantially reduced. but if much of the fuel has already melted through the

reactor, the temperatures at the bottom of the reactor may not have much meaning. tepco says the air temperature in the containment vessel is 40 degrees celsius, so the fuel must be cool enough. but i don't know if such a statement can assure the people of fukushima. after all, the cold shut down is a state of a healthy nuclear power plant, being kept under 100 degrees celsius, not the crippled plant like fukushima daiichi. tepco and the government should explain the status of the reactor in more detail by releasing data like the gas concentration rates in the containment vessels. now that fuel is emitting high levels of radiation, it must be

taken out from the reactor with remotely controlled robot arms. fuel melts into the concrete shield of the containment vessel, tepco would need to develop new technology to remove concrete around the fuel. experts estimate it takes 15 years to remove the fuel, and another 15 years to decommission one unit of the reactor, total of 30 years, or may take longer. japan may need help from other countries as well, so i believe tepco should release more precise data to get support from overseas. "newsline" is the place to turn to for the latest on japan post march 11th. we have two segments offering two unique perspectives on the fallout from the earthquake and

tsunami. nuclear watch brings the impact of the crisis. the road ahead examines japan's toefrts recover and rebuild. don't miss nuk watch and the road ahead on "newsline". the united states called it a date which will live in infamy, december 7th, 1941. the imperial japanese navy attacked pearl harbor in hawaii. after that, the pacific war raged on for more than three years until it ended in 1945. seven decades later, people in japan and the united states are marking the anniversary of the attack. ♪ people in hawaii gathered for a ceremony at a park overlooking pearl harbor. among them were members of the pearl harbor survivors association. this was their last moment to mark the day together. many veterans are aging, and the association will disband. a museum dedicated to the pearl harbor attack has updated its exhibits.

most of the displays had focused on how the united states suffered, but now curators are trying to reflect the japanese perspective. they've included materials that explain the background of why japan went to war. >> you see these as people rather than the propaganda of hating each other which led to a war without mercy. so, that's the purpose of that exhibit. so what we wanted to do was to create a museum that had multiple perspectives. >> in japan's northernmost region, hokkaido, this facility serves as a reminder of the attack on pearl harbor. it's the ruins of one of the imperial japanese navy's transmission stations. this is believed to be one of the places where the coded attack order was sent to troops. local people are actively trying to save the place. >> translator: we want to preserve this building for the next generation as a reminder of the horrors of war. >> and we had another reminder on this day of the impact of

war. a soldier finally returned home after 66 years. the surviving relatives of toshio sato received a box containing his remains. they live in the northern prefecture of aomori. russia sent sato to a prison in siberia after the war. researchers identified his remains using dna analysis. >> translator: i want to hug my father, even if it's only his bones that came back. >> families of many americans in iraq and afghanistan wonder what happened to their bodies. the u.s. air force dumped partial remains of hundreds of serviceman in a landfill. a newspaper reported on it last month but didn't provide numbers. now the post says the air force dumped the remains of at least 274 americans.

the serviceman were killed in iraq and afghanistan between 2004 and 2008. the air force first kree mated the remains. workers then added ashes to a load of medical waste. this was burned, then taken to a landfill. more than 6300 u.s. serviceman were killed in iraq and afghanistan. air force spokespersons say it will be difficult to determine which remains were sent to the landfill. in japan, concerns on energy safety since the accident at the fukushima daiichi power plant in march have led to demand for cleaner power. a new law takes effect next year that will require utilities to buy energy from renewable sources. companies here and abroad are trying to get a piece of this growing market. here is our report.

>> reporter: they are promoting cutting edge technology. firms show case their product at international affair in tokyo. >> this generates more power than other solar panels. >> in general terms, the market is looking attractive for solar and alternative energy. >> a new rule takes effect in july. it will require utilities to buy power from renewable sources such as solar power and wind. firms here are banking on some

new customers. people are hoping to cash in. the firm has the largest market share in solar cells. they were the japanese manufacturer five years ago, then entered the market here. sales here hit an all-time high. and there is more to come. the chinese maker from another relationship was a leading -- recently, consumers are earning money by selling extra power they produce back to electric companies. more than 80% for use in the home. consumers use them as backup power sources to save energy. >> solar power is clean energy. so i feel like i'm helping the

environment. what's most important is that i can sell the electricity i produce to utilities. >> most japanese people still put their trust only in japanese products. i think it will take some time to catch up with companies here. we'll step up efforts to increase market share in japan. >> european makers also turning to japan. many are struggling with the debt crisis there. the european countries used to provide grants for buying alternative energy products. now they are cutting those subsidies. demand is decreasing. leaders of a german solar company have grand visions. they're developing a raw scale

power plant. now they work with local governments in japan to use abandoned farm lands for power projects. they are already having some success. japanese company put in order for mega solar panels. they are hardly waterproof, and they suffer almost no salt damage when installing areas near the sea. >> generally speaking, the japanese market is not easy to enter, in solar or other industries. we have to develop everything and will take time i think. >> demand for solar batteries in japan is rapidly increasing. makers aim to catch a surge in market size and boost their share. more than 30 overseas makers

entered the japanese market. they have to get over some hurdles as regulations make it difficult to buy land for big solar projects. let's see where markets are the first half hour of trading this friday morning.>> that's the latest from business. back to katherine. >> thanks very much, ai. i felt chilly coming into work. it is cold across much of asia this friday morning. let's get that story and more.

a respect system is bringing cold, northerly winds to china, korean peninsula and japan, bringing very chilly weather, and winds are creating sea effect rain and snow across the western half of japan, particularly wet and windy in tokyo area. expecting as much as 30 centimeters of snow by saturday morning. those conditions will likely continue here throughout the day. across the korean peninsula, this is across the eastern portions, and as for china, rain as well as mountain snow will develop over the inland area. down towards the south, heavy rain will continue across vietnam as well as southern thailand, raising risks of flooding and land slides. temperature wise, cooling down to 8 degrees in tokyo. showers are still lingering, but that should taper off by this afternoon, and 0 degrees in

seoul, and 1 degree in beijing. heading to the americas, eastern canada still has blowing snow conditions. winds could exceed 120 kilometers per hour. but it is moving northeasterly direction, so things should improve by friday afternoon. meanwhile, strong northerly winds prevailing over the great lakes, bringing in snow across the southern and eastern portions of the great lakes regions. in western new york, you could be seeing as much as 30 centimeters of snow. heavy snow will be friday night. some snow showers can be found in and around nebraska, but the rest of the u.s. and canada will continue to see a dry spell friday. we expect minus 15 in winnipeg, 6 in vancouver, with plenty of sunshine and 4 in seattle, and across the south, 16 in houston, 27 in miami. finally let's go over to europe.

a winter storm is battering northern europe again. you can see the pressure gradient is tight, meaning very strong winds are blowing over the northern british isles, southern scandinavian peninsula and northern sections of central europe. the system is proving eastward, and as it does so, it should weaken gradually. however, those strong winds will likely continue here over the weekend. and about precipitation, heavy snow is moving northward over the scandinavian peninsula, and a mix of snow around the north and east. heavy showers continue until friday, friday morning here, but another round of snowy weather will likely effect the same areas starting saturday. temperature wise, we are expecting 7 degrees in london, and 11 in paris, and 10 degrees in vienna.

rome up to 18 degrees. i will leave you with the extended forecast.

that's all for this edition of "newsline." i'm catherine kobayashi in tokyo. thanks for joining us.