11:11:00 a.m. inp welcome "newsline." >p >> japan's rulingp p attemp attempt to avoid a showdown. on tuesday, prime minister can is expectep is expected to challengichallenging him is expectep is expected to challengichallenging hi for th party prosecute. it comes one day before the democrats officially announce their election.

democrat lawmakers fear that a head-on clash between kan and ozawa could lead to the party's breakup. can and hatoyama met on monday evening and agreed they should respect the democrats' original three-pronged leadership involving them and ozawa. >> translator: our party had been pursuing a three-pronged leadership that included ozawa. it's important for the democratic party to go back to that arrangement so it can unite as one. >> translator: i have no objection to the basic idea of a three-pronged leadership. so i agreed to the proposal by former prime minister hatoyama to continue running the party under such a leadership system. >> if kan and ozawa do meet on

tuesday, they'll be accompanied by hatoyama and the democratic party's upper house leader. all eyes are on whether can and ozawa can agree on specific ways to run the party and whether ozawa will withdraw his bid for the top job. voting for the party presidency is scheduled for september 14th. japanese prime minister kan has hosted a dinner for diplomats from 46 islamic nations and territories. the meal took place at the prime minister's official residence on monday during ramadan. ramadan is considered the most important religious rite for muslims. observers fast from dawn to dusk.

>> the ambassador to japan from gabon said japan has held the event annually for the last eight years. he believes the gesture by the government shows the strong ties between japan and islamic countries. north korean media has emphasized the importance of hereditary succession after the country's leader, kim jong-il returned from an informal five-day visit to china. the media reported on monday what kim jong-il said at a dinner party on monday. kim said it is an important historic mission to hand over to the next generation the baton of friendship between the two countries. he quoted chinese president hu

jintao as saying many things remain in northeastern china associated with the revolutionary achievements of the father of kim jong-il. the media quoted hu as saying that the elder kim made a huge contribution to the chinese revolution. it reported that kim visited a junior high school that his father attended and a place he used for revolutionary activities. political analysts say kim's visit was trying to gain china's support for the succession of his third song bef early september. u.s. president barack obama signed a new executive order against north korea. it freezes the assets of three organizations and of individuals suspected of illegal activities. >> these steps, as you'll hear, are aimed against the government and the elite. philip crowley said the organizations include the office

39, believed to be in charge of procuring luxury goods for north korean leaders, including kim jong-il. crowley on said the freeze also includes the reconnaissance general bureau, which allegedly trades in conventional weapons and engages in spying. the chief of the bureau is also targeted by the new order. the u.s. government also announced preauthorized additional sanctions against north korean weapons proliferation. these target five organizations and three individuals freezing their assets and prohibiting transactions with u.s. financial institutions. the u.s. had announced last month that it would impose individual sanctions in response to the alleged north korean sinking of a south korean warship. now we take a look at the latest in business news. here's ines. >> hello. tokyo stocks tumbled on tuesday morning with the nikkei falling below 9,000. the average under the morning was 8,912, down from monday.

investors took their cue from an overnight sell-off on wall street. exporters led the retreat on the yen's strength. market players cited a lack of fresh incentives. additional credit-easing measures announced by the bank of japan on monday fell within expectations. to currencies. the yen continues to rise against the dollar on tuesday in tokyo on concerns about the u.s. economic outlook. currently the greenback at quoted at 84.35-39. investors are selling the dollar and gloomy forecasts about the u.s. economic outlook were released later in the day. in other asian markets, the hang seng is down 1% lower. the sse composite is almost

unchanged. japan continues to face difficult fiscal challenges. the government's new budget requests for fiscal 2011 will likely exceed to over $1.1 trillion. the record amount comes as ministries are asking for larger than expected sums for projects in line with the government's growth strategy. tuesday is the deadline for submitting budget requests for the next fiscal year. the government earlier asked the ministries to cut spending by 10% year to year. it planned to earmark $12 billion for a special reserve to be applied to growth projects as well as policy projects made by the ruling democratic aert. actual requests are expected to be much larger, $35 billion. ballooning debts and the country's interest payment on outstanding debt will likely boost the current request to exceed $1.1 trillion.

$47 billion over the initial amount of expenditures for the current fiscal year. the international monetary fund has unveiled a credit program meant to prevent a financial crisis in one country from spreading to other nations. on monday, the imf announced it will offer a so-called precautionary credit line for members with sound fundamentals and policies. qualified members can apply for loans even before a crisis breaks out. the great it debt crisis that hit europe earlier this year convinced the imf it needs to be more flexible if in providing loans. in november, the group of 20 leaders will meet in south korea to discuss the role of the imf and the need for a global financial safety net. for now back to catherine. >> u.s. troops in iraq will cease combat operations on tuesday. a spate of terrorist attacks raises concerns about the country's security situation.

the combat began more than seven years ago under u.s. president george bush. president barack obama is scheduled to declare the end of the mission. vice president joe biden arrived in baghdad on monday to attend a ceremony marking the event. attacks and sectarian conflict have intensified in iraq over the past seven years. international nongovernmental organizations say some 100,000 civilians have been killed. about 50,000 u.s. troops will remain in iraq until the end of next year to help train iraqi security forces. iraq has yet to form a new government five months after parliamentary elections, which is delaying the rebuilding of the economy and infrastructure. palestinian president's said israel would be to blame if the new israeli-palestinian talks fail in the occupied

territories. abbas maded a televised speech on monday. the peace talks will resume in washington on monday. under president from the united states, benjamin netanyahu declared a ten-month partial freeze on construction in it the west bank to boost prospects for the talk. the talks are due to resume three months before the talks expire. netanyahu told members of his likud party that he had not promised barack obama that he would extend the freeze. the united nations and most of the international community regard the jewish settlements in palestinian territories as illegal under international law. three tropical cyclones are impacting the asian area.

we go to suki. >> let's get a look at the earlier two.is is lionrock. it hasn't moved a whole lot. it's stationary. it will move very slowly in a northwesterly direction getting close to taiwan. meanwhile, typhoon komasu is packing winds well over 126 kilometers per hour. it's moving at a much faster clip. getting close to the okinawa islands, expected to pass over the main island or get very close sometime between midday and the evening hours. things are pretty stormy already. our newest one is just north of taiwan and likely going to move through the taiwan strait over the next few you days. we're keeping a close eye on all of these systems.

they're very close to each other. that could affect their direction where they're headed over the next few days. that makes it really hard to predict. anywhere in this region, the islands of okinawa, taiwan, eastern china, and even up towards the korean peninsula, all at risk for seeing much stormier weather develop the next few days. we'll be keeping a close eye on all of them. >> thanks very much. saki will be back later on. the summer heat wave continues in japan. the temperature in central tokyo was 27.4 degrees celsius on monday night. tying a record of 47 sweltering nights in a year. japan's meteorological agency defines sweltering night as 29 degrees or above throughout the night. if the temperature remains high tuesday evening it will break the record set in 1994. the daytime high on monday in central tokyo was 34.8 degrees. it was 38 degrees in kyoto

prefecture. if the heat continues to be above 30 degrees in central tokyo on tuesday, it will tie a record of 30 days in august set 73 years ago. weather officials forecast that the late summer heat will continue into september with temperatures higher than average. the japan football association says former juventus coach zaccheroni is the new coach of japan's team. zaccheroni succeeds takeshi okada who led japan to the knockout round in the world cup in south africa. the 57-year-old italian has managed a number of top clubs. he's known for using an aggressive 3-4-3 tactical system and leading ac milan to a league title in 1999.

earlier this year, he was appointed manager of juventus. his fourth-month contract ended after the club finished seventh in the league. internet search engine giant google says it's offering free video streaming of major league baseball games through youtube, its online video sharing site. youtube launched a dedicated site for internet users in japan, russia, australia, new zealand and brazil. mlb made the recorded games available to youtube. starting on monday, japanese users can access all the latest games within 36 hours after they end, as well as those from the previous season. they can watch highlights with japanese major league players and search for them by typing in their names.

india's government said it will allow the blackberry mobile phone maker to continue its services in the country for at least two more months. the ministry of home affairs released a statement on monday, one day before a planned ban of some telecommunication services on blackberry hand sets. authorities fear that the small phone posed a security threat as encrypted data could be exploiteded by millitants. the indian government demanded that research in motion allow authorities to monitor communications on its devices. the statement says the maker submitted proposals to allow india to access blackberry data. the government will go through the proposals in the next 60 days to determine if they are viable. is some middle eastern countries such as saudi arabia are raising

concerns over blackberry's services. next is our report. this is a collection of small islands in western japan. the population is falling as young people migrate to larger centers. but they are turning things around with the help of tourists attracted to an island way of life. >> reporter: this is a three-hour ferry ride in nagasaki prefecture. the municipality encompasses 17 small islands home to 3,000 people. every year, about 10,000 tourists visit the area. most of the visitors are students staying at the homes of local residents to experience life on the island. >> translator: okay.

>> translator: these are sweet peppers. >> reporter: the students help with the vegetable harvest. >> translator: you can tell it will be good just from the smell. >> translator: smell's great. >> reporter: they also help with the catch of the day. >> translator: nice catch. >> translator: it's huge! >> yeah. it'll be good. >> reporter: after helping prepare dinner, the students enjoy the feast with their host family. outdoor activities are among the island's biggest attractions. visitors have more than 30 sports to choose from, including canoeing, snorkeling and hiking and always jumping and swimming.

>> translator: this is so much fun. >> reporter: the island tourism association is a nonprofit organization. it started promoting the home stay program with the local government three years ago. there are now 50 registered host families. and the number of guests has risen to 4,000 a year. thanks to their good reputation, there's also growing interest from abroad. an education program in the united states has sent high school students to the area to experience japanese culture. for two consecutive years, students have ranked program in ojika as the best. >> translator: people see how kind people are to strangers and kind believe such a place exists

in modern japan. we hope to attract more people who are searching for this return to nature. >> reporter: to capitalize on the success, the tourism association with the help of the town set up a company a year and a half ago to attract individual tourists. the company renovates traditional japanese homes and rents them to tourists. some are more than 100 years old. the company will open four of them as tourist accommodations next month. guests can enjoy the privacy and convenience of their very own house. the houses are equipped with modern conveniences, about the traditional furnishings, such as sliding doors and carved ceilings remain. this minka belongs to a merchant who made his fortune in whaling.

now it's a restaurant. the chef worked in a restaurant at a tokyo five-star hotel. he's created several original dishes using local delicacies. >> translator: we want to create jobs and bring more money into the town through tourism. we want to make a lasting impression on visitors while leaving something for the next generation. >> reporter: fresh-caught fish for dinner, yum. islanders are attracting outsiders by looking inside to rediscover the beauty of their way of life. next is a recap of the

latest market figures. that's all for now in biz news. next is the weather forecast with saki ochi. hi, there. welcome back to your world

weather update. we're keeping all eyes on our three tropical cyclones, all impacting this region with rainfall and wind set to get a lot stronger, especially for the okinawa islands. typhoon komasu is getting very close and showing signs of strengthening. already rainfall is impacting parts of the korean peninsula as well as the east coast of china. likely that rain will intensify. of course, you could be seeing stronger winds as tropical storm systems get closer. northern japan also today looking at a couple of showers. it should stay largely dry for the tokyo area. it's going to get pretty hot once again today. 34 for those of you here in tokyo and southern areas of japan as well. meanwhile, wet weather will make it on the cool side for shanghai. 29 for you. 33 degrees in hong kong. the same in bangkok.

america still looking at a low pressure system along the rockies. this system will drop out of the intermountain west and produce stronger showers across the plains states. more rain breaks off toward central canada as well. that is expected to produce some ample amounts of rain tonight. meanwhile, it's not going to stay dry for too long across the west. a new system will be bringing showers for the pacific northwest as well as british columbia. across the gulf of america and central america, plenty of tropical showers and downpours for you. eastward here looking on the dry side. it will be another hot day on tuesday. 35 in d.c. 35 also for new york and up towards toronto at 33 for your high. here's a look at the hurricane systems in the atlantic. hurricane earl is a category 4 major hurricane, very strong system.

winds are well over 200 kilometers per hour. it is moving away from the virgin islands and heading in a northwesterly direction, missing a lot of these caribbean islands. it will get very close. you can expect that heavy rain, high surf as well as strong winds. right behind earl, we have fiona following in its path, taking the same direction as earl did. it will get close to these islands once again. for those of you here, do stay updated and keep on watch and stay up there with your local reports. that's a look at your weather for now. here is your three-day outlook.

japan's ruling democratic you party is making a last-ditch attempt to avoid a leadership showdown. on it tuesdayed, kan is expected to meet the man challenging him for the post of party president. it comes one day before the democrats officially announce their presidential election. former prime minister hatoyama is trying to mediate the talks between kan and former party secretary general ozawa. democrat lawmakers feared a head-on clash between kan and ozawa could lead to the party's breakup. kan and ozawa agreed they should support the three-pronged leadership. >> translator: our party had

agreed to a three-pronged leadership. it's important for the democratic party to go back to that arrangement so it can unite as one. >> translator: i have no objection to the basic idea of a three-pronged leadership. so i agreed to the proposal by former prime minister hatoyama to continue running the party under such a leadership system. >> if kan and ozawa do meet on tuesday, they'll be accompanied by hatoyama and the party's upper house leader. all eyes are whether kan and ozawa can agree to specific ways to run the party. voting for the party presidency, which will carry the post of prime minister is scheduled for september 14th. that wrapsz up this edition of "newsline." i'm catherine kobayashi in

tokyo. we'll have more of your updates at the top of the next hour. hope to see you then. jj