hello there. welcome to "newsline." it's 9:00 a.m. in tokyo. i'm catherine kobayashi. the operator of the fukushima daiichi nuclear plant will begin to cover the number one reactor building with polyester sheets this month to prevent the dispersal of radioactive substances. reactor buildings one, three and four were severely damaged by explosions and radioactive elements are still being released into the atmosphere. there are fears that heavy rain may hamper the workers' activities and that the rain water may become contaminated with radioactive materials. to prevent these situations,

tokyo electric power company or tepco plans to enclose the reactor buildings with polyester sheets. the covering of the number one reactor building will begin later this month. the roughly one millimeter thick sheets will be attached to the steel frames of the 54-meter-high building. >> translator: i think it's thick for a sheet. it will prevent the release of radioactive substances through the roof and we can ventilate the air through a filter. >> to minimize workers' exposure to radiation, tepco will use a special method with very few personnel. a large crane will set up 62 preassembled parts at the reactor building. >> translator: workers usually stand on scaffolding to attach and tighten parts, but we've decided to use a crane this

time. to assemble the framework for the polyester sheets. >> tepco aims to complete the covering operation in late september. the utility plans to carry out similar work at the number three and number four reactor buildings. test runs have begun on a system for treating radioactive water at the plant. a device that absbs cesium is reported to be working well. early tuesday morning, tepco began testing the u.s.-made equipment starting first relatively low-level radioactive water. this equipment is one part of the water treatment system that the utility is udeucing. analyses of the water found that after about ten hours cesium levels dropped to 1/3,000th. from wednesday tepco also plans to start using a french-made chemical decontamination made on the system.

more than 105,000 tons of highly radioactive water has built up at the plant and the operator says it may run out of space to store it in about two weeks. a series of malfunctions delayed the start of the tests by four days. tepco is hoping to reduce the test period by a day so it can put the system into operation on friday and start treating the highly radioactive water. the plant operator says tiny amounts of plutonium have been detected in samples of soil in the plant's compound. this is the third time that plutonium has been detected in the soil at the plant since the nuclear accident began on march 11th. tepco announced on tuesday that an independent research institution analyzed soil samples taken on may 30th from three locations. plutonium was detected in semplz collected near a recreational ground and waste disposal facility both about 500 meters from the number one reactor. the level of plutonium 238 detected near the recreational

ground was 0.19 becquerels per kilogram, a figure that is down from april. the utility said the amounts are too small and do not pose a risk to human health. if plutonium is inhaled or ingested, it can remain in the body for a long period of time and may cause cancer. japanese operators of nuclear power plants have compiled a set of measures to prevent severe accidents, including hydrogen explosions at reactors. on tuesday, ten power firms submitted reports to the nuclear and industrial safety agency on measures that should be taken immediately to address possible severe accidents like those at the fukushima daiichi plant. the reports say that to avoid hydrogen blasts, some utilities are installing equipment that can rip holes in reactor buildings to remove hydrogen. they will also set up hydrogen density gauges inside reactor buildings. the reports say that even if all

electricity sources are lost, the utility firms will use power generating vehicles to activate ventilators to prevent radioactive substances from entering control rooms. the emergency power source will also be used to maintain communication with the control rooms. the firms will also secure special protective gear that will allow workers to operate in highly radioactive environments. they will also deploy large construction machinely to dispose of debris scattered by high explosions. the agency plans to assess the preventative measures after inspecting nuclear plants across the country on wednesday and thursday. and now we take a look at the latest in business news with ai uchida. ai overnight we saw u.s. retail figures take a hit from the japanese disaster. >> that's right, catherine. u.s. retail sales in may edged down for the first time in nearly a year as supply disruptions triggered by the march quake in japan dampened the auto industry.

on tuesday, the u.s. commerce department said america's retail sales stood at just over $387 billion last month, that's down 0.2% from april. it also marks the first decline in 11 months. by product, sales of cars and auto parts dropped nearly 3% from april. home appliances also fell 1.3% and furniture 0.7%. a 0.3% rise in gasoline sales was attributed to price rises. the latest figure was better than the average market forecast of about 0.6% fall but concerns are mounting. the march disaster may have long-lasting effects for the u.s., amid an uncertain economic outlook. china's central bank says it will again raise the reserve requirement ratio for the country's banks in order to contain growing inflation. the people's bank of china said on tuesday that it will raise

the ratio by 0.5% next monday. this would be the sixth time this year there's been an increase, bringing the ratio for major banks to an extraordinary 21.5%. the measure is expected to reduce bank lending and curb price increases. the central bank announced the move hours after china announced that its consumer price index in may was up 5.5% from a year earlier, marking a 34-month high. to curb price increases, the bank has already raised its key interest rates twice this year. growing inflationary trends in china are making it increasingly hard for the country's financial authorities to manage monetary policy. and now let's get a check on the markets. on wall street overnight the dow rose for the second straight day. to see how stocks are rmpl performing here in japan we cross over to ramin mellegard who is at the tokyo stock exchange. ramin how are stocks trading

this wednesday morning? >> reporter: very good morning to you ai. a bit of a positive start here. both the nikkei and the topix trading higher, one point shy are breaking 9,600 on the nikkei, just below that. a positive start nevertheless. you mentioned u.s. retail sales fell but the figures were a little bit better than most analysts had expected. we also had data out of china yesterday with a consumer price index as well, industrial production which helped boost overall market sentiment, and that was following some recent data out of the u.s. which pointed to a faltering u.s. economy so a bit of a positive twist that we're seeing unraveling in the markets today. now most eyes are still going to be an economic data this week, we still have crucial housing data as well as the weekly jobless claims data out of the u.s., so we're still not out of the woods yet as far as market indicators go. now turning to currency markets, the reaction was pretty evident, we did see the yen giving back a little bit of ground against

both the dollar and the euro, currently around the mid 80-yen levels, against the dollar, and having moved to around the lower 116 against the euro, compared to mid 115 to the euro just this time yesterday. also watch out for energy-related stocks. we did see west texas intermediate crude prices jumping on the back of the u.s. data as well as the china data, boosting hopes of growth in the two biggest economies in the world. now, as far as corporate news, honda did come out yesterday after the bell and said that profits for the fiscal year ending march 2012 may drop by more than half, blaming the stronger yen as well as repercussions from the march 11th earthquake. that follows also news of toyota, which came out on friday with a profit forecast saying that net profit may drop by about a third, so japan's automakers there still hitting some lengthy disruptions due to

parts and supplies failures following the march 11th earthquake and that is hurting their domestic as well as global sales, but the nikkei and the topix in the positive for now. back to you. >> thanks a lot for that, ramin. that was our market reporter ramin mellegard from the tokyo stock exchange. the world's top mobile phonemaker nokia and u.s. computer giant apple have reached an agreement over a patent dispute. the dispute started two years ago when finland based nokia filed a complaint with a u.s. court against apple. nokia said apple's iphone infringed on its telecommunications technology patents. on tuesday, nokia said that apple agreed to a one-time payment plus regular royalties. the lump sum figure has not been disclosed but i.t. analysts believe nokia's royalties could cost apple over $120 million every three months. and now let's get your recap of the latest market figures.

that's all for business for this hour. back to catherine. >> thanks very much, ai. the upcoming ministerial meeting of the international atomic energy agency will propose strengthening the body's functions to increase global nuclear safety. nhk obtained the draft of a neck declaration to be issued at a conference of ministers from iaea member countries that will open on monday in vienna. the document says an iaea team of nuclear experts will conduct

periodic safety assessments of the regulatory frameworks and operations of nuclear plants in each country. it calls for an international framework to be established to quickly deal with nuclear emergencies. the draft also urges the creation of a global liability regime so that states affected by nuclear accidents can receive appropriate compensation. there is no reference to this clause in the draft as of last week. it was apparently included to respond to countries' demands for compensation for the effects of radioactive materials from the fukushima daiichi plant. participants at the conference including nuclear experts will use the draft declaration to discuss how to bolster nuclear safety and the standards for nuclear plants. canada has lifted all restrictions on food imports from japan. the rules were imposed after the accident at the fukushima daiichi nuclear plant. the canadian government said on

monday it had confirmed the safety of japanese food as all the products it tested were below canada's radiation lilts. the agricultural ministry said canada had demanded documents to verify the safety of all products imported from fukushima, ibaraki and ten other prefectures. canada is the first country to remove the restrictions, but 40 nations and territories continue to restrict food imports from japan following the nuclear accident. the ministry will urge the nations and territories still maintaining restrictions to make scientific judgments based on the results of radiation monitoring. we focus today on china's inlaind areas, central china and especially the city of wuhan has been undergoing a rapid economic transformation, situated at the geographic crossroads between major cities so it has been

developing to serve as the hub for china's next generation high speed rail network. the high speed rail lines are the longest, covering 8,000 kilometers. by 2012 they'll extend to 13,000 kilometers. nhk world's yutaka yano has this world. report. >> reporter: chinas that staked its construction on the high speed railway network, based on technology from japan and germany the country's high speed trains are sleek and efficient as any found on earth. even as they approach the maximum speed there's virtually no noticeable shake. people can enjoy a cup of tea without spilling a single drop. traveling on the trains is not only comfortable but affordable. for an economy class seat it only costs about $80 for a 1,000

kilometer trip. >> translator: i have been longing to ride on a high-speed train for years, ever since i saw one in another country on tv. it's a totally new experience. >> reporter: wuhan city is the capital of hubei province. it has a population of about 10 million. the government has been investing heavily in wuhan with the goal of creating an inland industrial center. by building a better transportation infrastructure, china aims to close the gap between its coastal cities and inland areas. ♪ high-speed rail travel in wuhan was launched in late 2009 with the opening of a line linking with guangzhou in the south. now wuhan is linked with shanghai in the east. later this year a direct line from guangzhou to the capital beijing will open,

making wuhan a true hub city for high-speed rail travel. as can be expected, the arrival of the train line is having a profound effect on wuhan. this woman works for a bank. she spends more than half of each month away on business. she used to travel by air, but has since switched to high-speed train travel. she says trains are more convenient because they don't require reservations, and they depart more frequently than the airlines. so she can leave even on short notice. >> translator: planes are often delayed and can affect my work. if i'm sent on a business trip at noon and get to the station by 1:00, i can get on a train that leaves at 1:10. i can control my schedule. >> reporter: the economy in wuhan is also greatly

benefitting. since the arrival of the first bullet train, 381 foreign businesses have moved to the city, pushing up its total imports and exports by nearly 60%. the increased business activity is particularly noticeable in the auto industry. automakers in wuhan are expanding production in a bid to handle the growing demand from areas further inland. >> translator: located in the center of china's major cities, wuhan is a logical and convenient place for a distribution center. it's hard to beat. >> reporter: the final spoke in the wuhan railway network will be completed next year when it connects to the western city of chengdu. the arrival of high-speed trains could bring the wealth and prosperity of china's coastal

area deep into the country's hinterland. >> looks like a comfortable ride there. earlier we spoke to yutaka yana. >> by watching your piece, i get the impression that china's high speed rail system is offering a good travel alternative. >> yes, they sparked a competition in the transportation industry by offering a more convenient, lower-priced alternative. but it's become a challenge for the aviation industry. once the high-speed trains got on track, the number of passengers flying on competing routes dropped sharply. from wuhan, the number of flights to the east to places like shanghai dropped by two-thirds. some flights to nanjing were abolished in march. for flights to the south from wuhan to guangzhou, aviation companies have seen their revenues drop by 50%. china's southern airline, the largest in the nation, has cut ticket prices by 70% to the level of their emerging competitor.

>> translator: once the high-speed railways connect beijing and guangzhou, the impact will spread more, and the airliners will surely feel it. >> it sounds like airline companies are in trouble. what will the airline companies do if high-speed railway keeps expanding at this present rate? >> well, the airline companies remain optimistic, saying any impact from increased train services can be offset by beefing up its international services. this airline company is planning to open new services to australia, europe, and north america by next year. wuhan is expanding its airport so that it will be able to handle more international flights. the city's international airport is now the fourth largest in china. the upgrade will increase its area by fivefold to 500,000 square meters. the city official says wuhan is aiming to become the hub for both aviation and high speed

rail, deepening its overseas and domestic connections. >> translator: we can attract a lot of investment if we lower distribution costs by forming a multifaceted comprehensive transport hub combining high speed rail, air and waterways. in the future i expect to see many people coming to wuhan for tourism, work and business opportunities. >> to become a hub city in the world's second largest economy is an ambitious plan. but given wuhan's robust economy, which has been growing at around 15% over the past seven years, the goal certainly seems realistic. wuhan is a microcosm of inland >> yutaka, thanks for your report. >> thank you.

hello there. time now for your weather update. seasal rain band continues to stretch across eastern asia. here picking up a lot of moisture from this tropical depression that has formed over the south china sea. so in particular, for southern china we're looking at some torrential rains to occur in the next 24 hours. so anywhere from guangzhou up towards shanghai, we're looking at this extensive rain. especially for looking upwards of 100 millimeters to occur in 24 hours. so looking at flood risk in the area. and that rain also stretches into southern kyushu of japan as well. so heavy rain expected here in the next 24 hours. elsewhere, though, across japan, looking at good spells of sunshine. looking a little showery up towards hokkaido. but that should taper off by the afternoon. meanwhile, it looks like more showers to come for northeastern china. scattered thunderstorms in place. that's going to be moving into the northern end of the korean

peninsula. for southeast asia, plenty of moisture in place again, especially across the philippines. the southern end could see some flooding problems occur here. also around the bay of bengal, heavy rain persists around bangladesh, northeastern india, into myanmar. and that rain stretches into central india, especially pradesh looking at severe thunderstorms. now for thunderstorms in chongqing, 32 degrees. 22 in shanghai. looking slightly cooler today, and summer like in seoul at 30 degrees. now we head into the americas. still looking at that very long rain band stretching from canada all the way into the mississippi valley here, particularly severe for the southern end. so places like missouri and tennessee will contend with some violent storms. watch out for hail as well as strong wind gusts, tornadoes not out of the question. and quite thundery up towards the northern plains as well. light rain expected to arrive in montana by wednesday afternoon,

but at least we're getting a bit of a break from that wet weather. and down towards the southwest, it stays dry. winds going to be much calmer, though. but air quality alert again has been issued for new mexico as well as arizona. the wildfire continues to spread a little smoke in the air. and the heat not helping the situation either. 26 degrees in l.a. 30 in denver. it stays very hot here, 38 degrees in houston. now for europe, clouds starting to swell over the british isles. we'll start to see some showers here from the west. also plenty of precipitation in store for scandinavia. nothing severe, though. and some light patches of rain will touch central europe as well. but for the most part, central and western europe dry and sunny. it does get a little thundery again towards the eastern mediterranean, the southern end of italy, greece as well. but looking much clearer than yesterday. rome partly cloudy skies today, 26 degrees. plenty of sunshine in vienna, 26.

we've got 24 in berlin. and looking mild in paris as well at 24 celsius. all right. i shall leave you with your city-by-city forecast.

our lead story this hour --

the operator of the fukushima daiichi nuclear plant will begin to cover the number one reactor building with polyester sheets this month to prevent the dispersal of radioactive substances. reactor buildings one, three and four were severely damaged by explosions and radioactive elements are still being released into the atmosphere. there are fears that heavy rain may hamper the workers' activities and that the rain water may become contaminated with radioactive materials. to prevent these situations, tokyo electric power company or tepco plans to enclose the reactor buildings with polyester sheets. the covering of the number one reactor building will begin later this month. the roughly one millimeter thick sheets will be attached to the steel frames of the 54-meter-high building. >> translator: i think it's thick for a sheet. it will prevent the release of radioactive substances through the roof and we can ventilate the air through a filter.

>> to minimize workers' exposure to radiation, tepco will use a special method with very few personnel. a large crane will set up 62 preassembled parts at the reactor building. >> translator: workers usually stand on scaffolding to attach and tighten parts, but we've decided to use a crane this time. to assemble the framework for the polyester sheets. >> tepco aims to complete the covering operation in late september. the utility plans to carry out similar work at the number three and number four reactor buildings. and that wraps up this edition of "newsline." i'm catherine kobayashi in tokyo. do stay with us. we'll be back with more of your updates at the top of the next hour.