welcome to "newsline." it's tuesday, august 2nd. 9:00 a.m. in tokyo. i'm catherine kobayashi. the united states is one step closer to avoiding a default. we go straight to business this hour where ai uchida has more. >> very good morning to you. with one day remaining until the deadline for raising the u.s. debt ceiling, the house of representatives has approved a bill drafted by democratic and republican leaders. >> the bill has passed. and without objection, a motion to reconsider is laid on the table. >> on monday, the lower house voted for the legislation which requires a reduction of $917 billion in spending over the

next ten years. it also proposes setting up a bipartisan committee to compile a plan for further cuts of $1.5. the plan would also include raising the debt limit by $2.1 trillion. the legislation was not without opposition, however. some democrats voiced concern over large cuts in social security programs. meanwhile, some republicans criticized that the budget cuts are inefficient to rein in debt. but leaders of both camps managed to garner sufficient support within their ranks ahead of the vote. now the focus is on whether the senate will pass the bill on tuesday to avoid a default. on the tokyo foreign exchange, the dollar traded higher following the lower house approval of the u.s. debt ceiling bill. take a look -- taking a look now. currently the sdlr trading at 77.40 to 42 yen. in new york, the greenback slumped to 76.29 yen at one time, but gained about one whole yen later on monday.

it was the worst fall since march 17th when the dollar weakened to 76.25 yen. dollar selling in new york was fueled by continuing speculation of a possible downgrade of u.s. bonds. and also in the u.s., manufacturing activity unexpectedly slowed down in july to the lowest level in two years. the institute for supply management's manufacturing index released on monday dropped to 50.9 during the month from 55.3 in june. the reading was worse than forecast and brought the index hovering close to the boom or bust line of 50. production and employment grew at slower paces than in june, and new orders fell to 49.2, which was the first contraction since june 2009 according to bradley holcum, chairman of the survey. a real downturn in manufacturing would be bad news for the economy as the sector has been

one of the bright spots during the sluggish recovery. and now let's get a check on the markets. the dow closed lower for a seventh straight session falling to a one-month low. to see how stocks are trading here in japan, we cross over to ramin mellegard at the tokyo stock exchange. quite an opening to the week with the debt ceiling deal looking to finally be in the works. how are markets reacting today in japan? >> markets reacting negatively in the first few minutes of trading. the nikkei and topix trading lower. nikkei lower by about 100 points. in fact. and that's quite a start to the august month actually so far in the first few two trading days this week. and that's after the deal to raise the debt ceiling in the u.s. looks to be almost done. the dow initially in the u.s. trading session actually jumped almost 140 points. as you mentioned, the ism manufacturing data came out which was lower than what market analysts expected. that pushed the dow lower. it's now its longest losing

streak since july of last year. markets do look to be somewhat relieved, though, with this deal having been patched together. still some work to be done on that. but having a look at the currency levels, the yen has backed off a little bit against the dollar. as you said there, currently around the mid77 levels after having broken below 77 in the u.s. trading session. and actually markets are going to be closely watching to see if there's any market intervention by japan's authorities to buy dollars. we've got to keep track of that very closely. now on an earnings front as well, honda came out with earnings figures after the bell saying first quarter profits fell around 88%. however, they did raise their outlook for the fiscal year and that was a bit of a positive spin there. it said the strong yens well as slow production for the -- since the march 11th disaster played into its bottom line. and honda is now looking

aggressively to actually boost production overseas to actually allay some of those losses that it makes on the currency markets. toyota is due out with numbers today after the bell. however, yesterday it did come out and say that sales in china actually grew 28.4% since a year earlier. now the faster pace of a recovery in japan is also going to be closely watched. and we're going to see how that plays into the bottom line of a lot of earnings that japanese companies are coming out with this week. but the nikkei so far right now down 100 points. back to you. >> thanks a lot, ramin. ramin mellegard from t tokyo stock exchange. now time to get you a look at some other market figures.

and that's all for business for this hour. back to catherine. >> thanks very much, ai. members of the asia pacific economic cooperation forum will discuss measures that companies can take against disasters. the two-day conference starts on tuesday in sendai miyagi prefecture which was hit hard by the march 11th earthquake and tsunami. participants met at a reception on monday evening. about 100 experts and government officials from 18 countries and regions are attending the conference. >> translator: people in the

prefecture will do all they can for early reconstruction. we would like to ask for further support for their rebuilding efforts. >> state secretary for foreign affairs takahashi said earthquakes hit many parts of the asia pacific region every ye. he said he wants to exchange information on initial responses to quakes, as well as reconstruction after disasters. he added that the government wants to develop a plan in which people in a wider area can work together to minimize damage. during the meeting, participants will talk out the importance of a corporate plan which would enable firms to quickly resume their operations in the face of natural disasters and infectious diseases. the operator of the fukushima daiichi nuclear power plant says it has detected 10,000 millisieverts of radioactivity at the site. it's the highest levels of radioactivity since the accident in march.

they measured the amount on monday near the pipes at the bottom of a duct between the number one and neighboring number two reactor buildings. tepco has restricted access to the site and the surrounding area. it says the workers who took the reading were exposed to a maximum of four millisieverts. the utility says the high level is because the pipes were used to vent air contain roogactive substances from the crippled number one reactor on march 12th. it also detected a maximum of 1,000 millisieverts per hour outside in the debris, as well as a maximum of 4,000 millisieverts per our inside one of the reactor buildings. according to the ministry, a human exposed to 10,000 millisieverts would likely die within a week or two. they also discovered highly radioactive water near the storage facility for contaminated water. it says the water contained 19,000 becquerels roofactive

cesium 134 per cubic centimeter and 22,000 becquerels of cesium 137, both very high levels. the utility is investigating how the leak happened. but it says that there is no danger of the contaminated water leaking out of the building. japan's minister in charge of the nuclear crisis says full-scale deconnamination work will begin next month in the 20-kilometer evacuation zone around the fukushima daiichi nuclear plant. he made the remark on tv on monday. hosono said the government will begin decontaminate on a large scale and continue monitoring radiation levels. preparations will be made so that residents can return home by early next year. the minister said the evacuation zone could be lifted after the second stage of bringing the reactors under control is completed next january. japan's government is to ask rice farmers in the tohoku and

kanto regions to test their crops for radiation before and after harvest. the government plans to provide local authorities this week details on tests for ensuring that rice on the market is free of radioactive cesium from the fukushima daiichi nuclear power plant. all three prefectures have decided to have the test. tokyo and 12 other prefectures also say they will carry out or consider radiation checks of rice. the government says it will suspend rice shipments if cesium levels over the safety limit are detected. farmers have voiced concern that rice they planted after the accident may be contaminated. >> translator: checking for radiation will allow us farmers to grow our rice with high motivation. >> in japan, rice is generally harvested from late summer to autumn. rice is the nation's main crop.

the tohoku region which includes fukushima prefecture produces a quarter of the country's total amount. a free trade pact between india and japan came into effect on monday. their economic partnership agreement aims to expand business between the two countries. india became japan's 12th epa partner. the agreement was signed in february. japan's first epa with singapore took effect nine years ago. other partners include asean, mexico and switzerland. india's rapidly growing economy is creating a major global market. under the trade deal, japan will gradually eliminate tariffs on most indian goods, including industrial products, curry and tea. india will phase out duties on japanese items such as auto parts, steel products and video cameras. within ten years, the agreement will remove tariffs on 94% of

bilateral trade in value terms. last november, the japanese government formulated a basic policy to pursue free trade. wut economic partnership agreements on the fast track and started talks with countries involved in the transpacific partnership. but the march 11th catastrophe and subsequent nuclear crisis brought those efforts to a standstill. in may, japan agreed to start negotiations on an epa with the european union. japan is lagging far behind south korea in the global push for free trade zones. south korea started phasing out tariffs in july. a south korea/u.s. free trade agreement was concluded last year. the japanese government is now under heavy pressure from the business community to accelerate its free trade initiatives. japanese auto, electronics and other makers compete directly with south korean rivals in the global market. earlier, michio kijima spoke with hiromi about the impact of the trade deal for both japan

and india. >> so first of all, what benefits will the epa bring to japan? >> well, to the agreement, they can get a foothold in a huge market. there's 1.2 billion people in india which is double that of ten countries in east asean. half of the population is age 15 to 44. they are forming new and middle classes. and the country had an 8.3% growth rate over the last five years. the ruling congress party won the general election two years ago, so that gave prime minister man mohan singh another term in office. since then, the government has invested massive funds in infrastructure. you could take this as another sign that the administration wants to encourage economic growth. the epa is going to make it easier for japanese auto

companies to export parts and assemble vehicles in india. japanese automotive makers are using the technology found in japanese cars to attract indian consumers who have recently had the means to buy cars. >> what advantages will it have for india? >> india hope japan will offer it technology and the financial aid. this chart shows india's government's vision of its future domestic transport system. the japanese government is providing assistance to lay 1,500-kilometer freight railway linking the northern city of new delhi with the commercial hub mumbai in the west. india has developed an asian rail network. accidents are common. safety is a necessity for transport infrastructure. japan has the world's best technology to provide that safety. >> are you sure it sound like a

win-win situation here. do you thing epa will significantly boost japan/india relations as a result? >> things are not so easy. many people are doing business with india may think things are not going so smoothly and demonstrated procedures are too complex to understand. so far, the relation between japan/india have not been as strong as those between japan/china. but japan/india share basic values like democracy, rule of law, market economy and the freedom of speech. in addition, in cultural times, the nation have -- in buddhism. despite many difference, japan/india are connected individually but deeply so it may be interesting to see whether they'll be able to lead a new age in asia's economic growth. >> thanks for your insights.

the european union says it will take further measures against several high-profile civilians or rather syrians to reinforce sanctions against the government of president bashar al assad. the eu announced on monday it would impose travel bans on five syrians and freeze their assets. they include high-level government and military officials. the latest additions will bring the total number of those subject to sanctions to 35. president assad was added to the list in may. syrian forces crushed anti-government demonstrations in the central sea of hama on sunday shortly before the start of the holy month of ramadan. at least 120 people were killed. eu foreign policy chief catherine ashton said the organization could take further steps if the syrian leadership

persists on its current path. she called on the government to stop its oppression of civilians. china is blaming a group led by militants trained in pakistan for a weekend attack that had deadly consequences. it happened sunday in kashga their the shenzhen, uighur autonomous region. the attackers stabbed people in the streets killing six and injuring 15. police shot five suspects to death. security in the city has now been tightened. the local government released an online statement saying a suspect detained after the attack told police the leaders of his group belong to separatist organization called the east turk stan islamic movement. they reportedly learned how to make explosives in pakistan before carrying out the attack. the local government called the attack organized terrorism. it released photos of two men who got away and offered a reward of more than $15,000 for information on their whereabouts. it said the suspects are uighurs. china's shenzhen uighur

autonomous region has seen a series of violence over the past three years. there's frustration between the uighurs over the economic and political dominance of the majority han people. japan's nuclear power crisis has forced businesses to cut their electricity consumptions this summer to avoid triggering a blackout. an aquarium near tokyo managed to find the perfect energy saving switch. one that helped it launch a captivating new show highlighting the beauty of creatures that usually spark considerable fear among beachgoers. raja pradan takes us there. >> reporter: other worldly creatures float gracefully, seemingly through space. they are jellyfish and these colorful lights are giving them a touch of glamour.

this aquarium is transforming the experience of watching these creatures into something more like a trip to the planetarium. the effect is mesmerizing. especially for some of the youngest members of the audience here on their summer vacation. >> last month, the aquarium, about 60 kilometers south of tokeio, launched a new show entitled starlights jellyfish. this project was created after the march 11th earthquake that struck japan. it was not damaged by the quake but in the days following the disaster it was forced to close because of the rolling blackouts triggered by japan's energy

crisis. when it reopened, it started working on a plan toveve electricity to comply with the government's summertime power saving directive. the aquarium took various steps. for example it cut in half the number of waves generated by devices at a huge water tank. >> translator: the power-saving measures should not affect the creatures. we only have a few areas where we can reduce our use of electricity. >> reporter: we're currently backstage right behind a tank full of sharks. i should be careful here, but until now, the aquarium was light by these powerful mercury lamps. but you can see in the back what they are using now are the l.e.d. panels. they are much thinner and flatter. the aquarium replaced 670 lights with l.e.d.s in places such as

tanks and hallways. this helped it slash power consumption by 25% compared to last year. l.e.d.s also have other advantages. they make it easier to change lighting colors. the production team decided to harness this feature to help showcase the beauty of jellyfish. through trial and error, the team found the best way to use the new lights to enhance movement and appearance. >> we definitely want customers to know more about the healing effects and other positive signs of jellyfish. we look for better ways to increase the creatures' attractiveness. >> reporter: born from a simple idea to conserve energy, the show was originally planned only for the summer. but it's grown so popular it

could well become a regular feature. raja practic raja pradhan, nhk world, japan. and welcome back to your weather update. now we're taking a look at the storm system in east asia. and here are the clouds. and this will be typhoon muifa maintaining its strength. it's still a very strong typhoon packing winds of well over 160 kilometers per hour. it is currently heading northward but it is looking like it's going to be veering towards the west over the next couple of days. and it will start impacting the okinawa islands. first, stormy conditions will start up here. the high waves, you will start feeling them as early as today in towards even wednesday, thursday, friday, whether eathe also going to start turning stormy. watch out for those strongs winds and winds. muifa continues to head toward the west, likely aiming for the

coast of china. could be getting even close to shanghai. we'll keep a close eye. a little too early to tell. keil keep an eye on its progress. >> ahead of that -- already deal with plenty of rain in the area, eastern china into the korean peninsula. this starborn frontal system. rainfall amounts looking to add up a little bit more in parts of central china. so you want to watch out for flooding as well as landslides. japan, too is going to be equally unsettled today. looking at another day of changeable weather with scattered showers. plenty of showers for the philippines as well as the indochina peninsula and rainfall amounts adding up here like the philippines as well as thailand, too. watch out for flooding and landslides here as well. highs on tuesday, 28 expected in tokyo. 29 in seoul. gets up to 33 degrees in shanghai and a little bit hotter in taipei at 35. now for the americas, a lot of

tropical activity going on in the south. we have hurricane eugene continuing to head away from land, but mexico, central america, as well as the caribbean islands, even up in towards the gulf coast states, looking at a scattering of showers and thunderstorms. plenty of wet activity going on here. for the united states and in towards can dark it's this area right along the border that's seeing a lot of activity tonight. watch out for severe storms. there is going to be strong hail, thunderstorms. watch out if you are going to be in the area. highs, too, pretty warm again for a lot of the eastern united states. 34 in chicago. hitting 42 in oklahoma city. even getting up to 36 in d.c. as for europe, well, a little bit of rain band here forming in towards east and heading into western russia. isolated heavy showers are going to be possible here as well. out toward the west, a new system is starting to leave the

iberian peninsula anded 4ing in towards france. this will include pockets of heavy downpours as well as thundershowers. showers tonight for the british isles but that is going to be heading out from the north and looking at pretty dry and calm conditions for central europe. and berlin's high coming in at 26. vienna, 28. still on the mild side. and we're looking at 24 degrees for kiev. that's a look at your weather conditions for you. and i will leave you with your three-day outlook.

members of the asia pacific economic cooperation forum will discuss measures that companies can take against disasters. the two-day conference starts on tuesday in sendai, miyagi prefecture, which was hit hard by the march 11th earthquake and tsunami. participants met at a reception on monday evening. about 100 experts and government officials from 18 countries and regions are attending the conference. >> translator: people in the prefecture will do all they can for early reconstruction.

we would like to ask for further support for their rebuilding efforts. >> state secretary for foreign affairs chiaki takahashi said earthquakes hit many parts of the asia pacific region every year. he said he wants to exchange information on initial responses to quakes, as well as reconstruction after disasters. he added that the government wants to develop a plan in which people in a wider area can work together to minimize damage. during the meeting, participants will talk about the importance of a corporate plan which would enable firms to quickly resume their operations in the face of natural disasters and infectious diseases. and that wraps up this edition of "newsline." i'm catherine kobayashi in tokyo. thanks very much for joining us.