damage control. financial chiefs discuss eurozone issues as global stock prices tumble. welcome to nhk world "newsline." finance chiefs from the group of seven are trying to patch up crackshe edges of the euro gone. they're holding a conference that is focusing on the debt crisis in europe. finance chiefs and central bank governors from japan, the united states, canada and four european countries are taking part in the call. among the issues they're discussing are spain's banking problems and the possibility

that greece will leave the eurozone. they're expected to call on all european nations to take comprehensive measures to ease the crisis over sovereign debt. japan is expected to ask the other g-7 nations for their support in stemming the yen's further advance against the euro. jun azumi says the yen's excessive strength is not desirable for japan. australia's central bank cut its interest rate for the second straight month in a bid to stimulate the economy. the reserve bank of australia lowered the rate by a quarter of a percentage point to 3.5% at its board meting on tuesday. in taking the step, glen stevens expressed concerns about the impact of deteriorating fiscal problems in europe and growing political uncertainty. in a statement he said another source of concern is the slowdown in the chinese economy that has driven global growth. some domestic industries have been forced to cut jobs and there are disparities in growth among them.

here are the latest market figures. a fleet of indian warships has arrived in japan for the first ever joint naval drill between the two nations. the exercise comes as countries in the region are becoming more concerned about regional security. nhk world has more. >> reporter: the four indian ships including a destroyer

sailed into sagami bay near tokyo before docking at yokosuka base on tuesday morning. the crew will prepare for the simulated search and rescue mission on sunday. >> translator: i hope the joint exercise will help deepen exchanges between the two countries. >> reporter: the one-day joint drill is being held apparently with the chinese naval buildup in mind. china's military presence is growing. it has also adopted a more assertive stance in the south china sea where it has overlapping territorial claims with other asian nations. sunday's drill is being held in line with an agreement reached last november to increase contacts between the two country's military forces. >> we look forward to developing greater interoperability and

adopting the best practices that we could share from this exercise. >> reporter: japan and india are not the only countries worried of china's moves in the east and south china seas. msdf crews are preparing to begin three-day exercises with u.s. and australian naval ships off southwestern japan on wednesday. the joint fleet will practice anti-submarine warfare. >> our job is to make sure we maintain a stable and security maritime environment which we can all prosper from. and that's all countries. >> reporter: japanese government leaders say these drills will help their personnel build up their skills and at the same time, they say it's a chance for them to strengthen ties with their allies in the region. mitsuko nishikawa, nhk world. china is continuing to build up its military presence in asia and the united states is seeking to adjust the balance of power in the region.

the u.s. is pledging closer ties in defense support to india, vietnam and other asian countries. we have the details from our bangkok bureau. >> reporter: india has been called a vital partner by the u.s. which is making moves to strengthen that partnership. u.s. defense secretary leon panetta kicked off a visit to india on tuesday. it appears that u.s. hopes to bolster ties with the country in the face of a more assertive china. during a two-day visit, panetta is expected to discuss deepening defense cooperation with india and the nato war effort in afghanistan. focusing on washington's strategic shift towards asia. panetta has also pledged u.s. defense support for vietnam and other southeast asian countries. the u.s. secretary of defense met with his vietnamese counterpart during a visit to hanoi on monday. the two agreed to an increased presence of the u.s. navy in the country and other measures. >> the most destabilizing

situation would be if we had a group of weak nations and only the united states and china were major powers in this region. >> panetta warns such a scenario would lead to intense rivalry between the u.s. and china and the pledge to help vietnam build up defense by support in various fields is a move to adjust the balance of power in asia. >> translator: we hope the u.s. government will lift its arms embargo against vietnam soon. >> panetta announced earlier this week that the u.s. will assign 60% of its naval ships to the asia pacific region by 2020 in the face of china's naval buildup. the u.s. apparently wants to further counter china by deepening cooperation with vietnam and other countries in the region. one sign of indonesia's booming economy is the soaring demand for cars among the

country's growing middle class. in order to capture a piece of the auto market, they're shifting marketing and production strategies to the southeast asian country. nhk world reports. >> reporter: this will be home to honda's second auto plant in indonesia. the company has announced plans to open the plant by 2014 with the aim of producing 120,000 compact cars a year for indonesia and other emerging economies. honda officials say they aim to increase their manufacturing capacity in indonesia. other japanese companies such as toyota motors are joining the trend of targeting consumers in indonesia while stepping up production in the country. the company has announced plans

for adding new plants to increase their annual output to 120,000 units. that's almost double the present figure. nissan motors is set to bring back the datsun brand to provide low price cars for emerging economies. it was once very popular in indonesia. along with the leading automakers, many japanese parts and material manufacturers are also increasing their presence in indonesia. >> translator: indonesia is certainly growing. the country can be a huge global hub for our business development. >> reporter: car sales are forging in indonesia thanks to the country's growing middle class. last year, the country overtook thailand to become the largest auto market in southeast asia,

with annual sales of 890,000 units. the japanese auto industry is hoping indonesia will take its place along thailand and india as a major hub of asia's auto industry. nhk world, jakarta. and that's it for our bulletin. tokyo police believe they're closing in on the last remaining aum shinrikyo fugitive after sunday's arrest of a fellow cult member. police suspect that takahashi who is on a nationwide wanted list, was living in an apartment in kawasaki city until six months ago. the cult member said she lived with takahashi in the same

apartment until five or six years ago. kikuchi was arrested on sunday in connection with the 1995 sarin gas attack in the tokyo subway. 13 people died and more than 6,000 others were left sick in the attack. police sources tell nhk that takahashi was working at a construction company using a false name. the man disappeared two or three days ago. police suspect takahashi may have fled after learning of kikuchi's arrest. they're checking video footage from neighborhood security cameras. another japanese export is about it take off overseas. a cool biz fashion show has been held in seoul, south korea. it is to promote casual dressing in the workplace as part of efforts to save energy. >> translator: seoul hopes to become an ecofriendly model for other cities in the world. >> dressed in shorts and short sleeved shirts, the mayor of seoul, park won soon, took to

the stage with other city residents to show off a line of fashionable summer wear. the cool biz campaign kicked off after the central government ordered public offices to set their thermostats at 28 degrees celsius. department stores and hotels must you set them at 26 degrees. for the next three months, municipal workers deal with the public will be required to wear short sleeved shirts with no ties. officials who did not have to deal with customers can come to work even more relaxed wearing shorts and sandals. last september, a power outage caused by high demand left most of south korea in the dark at one of the hottest times of the year. ultra thin, ultra light notebook computers, known as ultra books, are pulling focus at a massive computer trade show now on in taiwan. the event opened in the taiwanese capital on tuesday. about 1800 companies are taking part from 25 countries and regions including the u.s. and south korea.

the computer fair is asia's largest and also the world's second biggest after the one in germany. a host of manufacturers is showcasing new models compatible with microsoft's next operating system, windows 8, which enables touch screen operation. like the bigger brother notebooks, ultra books have keyboards, but are only about 1 1/2 centimeters thick. they boast a quick start and long battery life. makers are hoping finally they have a challenger to the dominance of the ipad tablet. bo xilai was once considered a sure bet to become a top leader, but authorities removed him in march in chongqing city. some say bo was removed due to a power struggle ahead of a leadership change this autumn. nhk world reports.

>> reporter: a businessman in hong kong with inside information gave us more details. he says he says he got the information from a case in hong kong that involves bo. the businessman says that through meetings, he got a close look at what bo and his family had been doing. he said that some family members asked businessmen for money. >> translator: to hold a dinner party for bo's relatives, one of my acquaintances was asked for a bribe of nearly $1.3 million. through bo's influence, his wife and relatives have also gathered wealth.

>> reporter: despite these claims, people in chongqing support bo. >> translator: mr. bo is invaluable to the people of chongqing. >> reporter: bo has listened to their grievances over expanding the wealth gap. china's government has made the economy grow fast. but it widens the gap between the rich and the poor. this upsets the people of chongqing and other inland areas. they do not benefit from economic expansion. aiming to win the support, bo improves the lives of low-income families. he built cheap apartments and he made the city safer. >> translator: mr. bo has lived up to almost all his pledges in the past few years

like improving security and providing apartments we can afford. >> reporter: bo also encouraged the people to sing revolutionary songs, like when mao zedong was in power. bo called on the public to rekindle the era of the spirit of equality. bo has also won support from a group of internationals based in beijing. known as the new left they want to return to old-style communism. >> translator: mr. bo listened to the calls of the majority of people. those seeking better lives. he had been working to close the wealth gap in chongqing. to them, they was like a gift

from god. >> reporter: also, to shut down the new left website in april. many cities have attempted to stop bo's increasing support. some experts say bo may receive harsh punishment. the governing communist party wants to avoid more backlash from bo's fault. so it's thought that they are taking this into account in deciding what to do next. nhk world. the advanced industrialized countries of the world are continuing to struggle. a global financial crisis that started in the united states has mutated into a credit crisis for europe. the economies of emerging countries meanwhile are developing at a rapid pace. the result is a profound shift in the centers of power and wealth. relationships between countries

are changing. none more so than those between great britain and its former colonies and other parts of the british empire. nhk world reports from london. >> reporter: britain used to rule vast areas of the world. today, the empire is a faded memory, and so are the riches it once provided. the country is struggling with debt, government and private. companies strapped for cash are accepting offers from emerging economies. harad's is a department store, it has been in business since the 1800s. two years ago, it was taken over by a fund based in qatar, formerly a british protectorate. when luxury carmaker jaguar lost

its role, india came to the rescue, a $2.3 billion takeover deal was signed in 2008. it was another sign of the rise of a former colony and a shock for many britons. but many others accept that times have changed. a view expressed by british prime minister david cameron when he visited india in 2010. >> britain is actually rebuilding some of its manufacturing, thanks to indian investment. tatar is now the largest manufacturer in britain. >> reporter: far from resenting fall in takeovers, some long established businesses are embracing the trend. a part of london's identity in the transport system. this company used to make more than 3,000 vehicles a year.

now it's half that figure and earnings have stalled. the cab maker is cutting costs and looking for new customers overseas, but it can't go it alone. for that reason, it sold 20% stake to a chinese automaker. most parts used in the company's cabs are now imported from china. the ceo has no complaints. >> always had a problem selling internationally because of space and the infrastructure of the company. we were heading into a real cul de sac. the business was going to come under more and more pressure and eventually we would have filed. gili was a life savor. >> i spoke to nhk world's correspondent for developed and developing countries. i started by asking him about how the rise of emerging countries are having an effect on the world, especially britain.

>> the british empire was one of the largest in the world and india being one of its most important countries was the jewel in the crown. britain also controlled parts of china. remember, british gun boats were started open war which forced the dynasty to give up control of hong kong. these are all long in the past now. these days, british employees work for indian bosses and indian investment in britain is on the rise. in china, it is no longer britain and other western powers, but it is beijing that is often calling the shots. >> talking about trading places now. these global shifts of power. obviously population in developed countries are decreasing while it is the opposite situation for developed countries. how significant is this? >> many experts do point out the change of demographics as an important factor to explain the rise of the emerging nations. the world's population

passed the 7 billion mark last october and it is forecasted to keep on growing. but what is interesting here is where exactly these increases are taking place. the trend varies considerably by country and region. united nations surveys estimate that asia's population will exceed 5.1 billion in the middle of the 21st century. and in africa, it will triple by 2,100, reaching 3.5 billion. on the other hand, populations are expected to decrease in most industrialized countries. a high birth rate coinciding with economic boom is a recipe for fast development. a large pool of young people provides these countries with working force and with high consumers demand. >> japan used to be the second largest economy in the world. now it's the third. what's going to happen to japan?

>> a british magazine "the economist" carried an article in april. analyzing the economies of asian countries. here is the key quote. they say japan was asia's richest and most powerful country and it goes on. now, however, japan is being overtaken. the article compares gdp in terms of people's purchasing power. japan was overtaken by singapore and hong kong in the 1990s. the economist says on this benchmark south korea will become richer than japan within five years. the key point to take from all of this is how quickly, how fast this change is happening. shifts in economic power and population will change how we look at the world and our current trends. this is a reality we will be living in the not so distant future. >> soichiro, thank you very much. >> you're welcome.

for an update on the weather forecast, here is mai shoji. mai? >> we have been monitoring the typhoon mawar. it looks like it will be nearly grazing the pacific side of japan. so winds are going to be packing up to about 108 kilometers per hour. that will be picking up the waves along the coastal areas of the pacific side and it will be impacting the isu islands, moving ever so closely towards it. it will be bringing those waves up to about 6 meters high in some locations, so please do stay away from the coastal areas. and just around the pacific side, things are going to be very wet as well. as you can see here in the isu islands, it could actually accumulate as much as 150 millimeters in the wake of the system, high pressure will be moving in and replacing the areas. clear skies will be -- but

showery activity here. you can see from the clouds, i took a picture a while ago from this office actually in tokyo, and that's a beautiful purple sky, cumulus and strato cumulus clouds that means it will be a rainy day here in tokyo. temperaturewise, 21 degrees. manila, 32 degrees. you'll be impacted with ongoing showers due to the southwestern monsoonal flow enhanced by the severe tropical storm. western seaboards of luzon and also versailles, those areas i where flash flooding, mud slides, landslides, all a high risk. looking at your temperature here at 35, things are even hotter in india. let's look at a video coming up from india. now, india has been oppressed by an extreme heat wave the past several months. in the northwestern state of rath stan, temperatures into the 40s nearly every day. you can see that guy really trying to take those clothes off, but to cool off, people

have been seeking refugee at local juice bars and ice cream shops. also many lakes have been seeing drying rapidly at about ten centimeters a day. we can pull back, i can show you that things are going to get better with the southwest monsoonal flow kicking in and bringing moisture. that's all going to be moving towards the southern half of india, which is really great news. you see it reflecting here in the temperatures, cooling down here but still reaching 44 degrees so extremely hot just yet. all right, moving over to the americas now, the pacific northwest will be targeted with the pacific storm. you can see these isobars near each other. that's very gusty conditions. and we may see some snow accumulation in the higher elevations. especially in the northern rockies regions. this system will be moving toward alberta bringing stormy conditions, but with this cold front reaching in towards california, this is where still

will be talking about the critical fire weather. it has been ongoing and the humidity is still very low and gusty conditions up to about 60 kilometers per hour, all combined. great recipe for this high risk of fire. do be aware of the flammable items. severe weather will be continuing here in southern half of the gulf states. we're talking about hail, damaging gusts which could damage trees and down power lines. and also severe thunderstorms with lightning strikes are possible there. temperaturewise, houston at 34. oklahoma city at 32. new york just at 19. and los angeles, 23 with some sunny spells for you out there. here is the extended forecast.

we'll be back with more news in 30 minutes. i'm gene otani in tokyo.