welcome to newsline. it is 9 a.m. in tokyo. libya's transitional government says it's working to set u a new administration while searching all out for gadhafi. pockets of resistance remain in parts of the capitol, tripoli. the leader of the council told

reporters wednesday that it will launch a new administration to replace gadhafi's as soon as possible. he spoke the day after antigovernment voices seized gadhafi military compound in tripoli effectively bringing his reign to an end. the council plans to transfer its base to the outskirts of tripoli soon. >> translator: we're offering a bounty of about $1.7 million for whoever captures gadhafi. >> the council will grant special amnesty to government officials if they hand in gadhafi or kill him. but with fiercery siftens by gadhafi's troops continuing in the south of the capitol wednesday and gadhafi himself still at large, the rebel administration is not in the clear yet. in tripoli several foreign journalist held under house arrest by the libyan government have been released. some 35 reporters from the bbc,

cnn and other media were kept for five days in a government-approved hotel for foreign journalists. at least two politicians were also among the captives. remaining at the hotel even after his military compound was seized on tuesday, reporters were released unhurt. the reason for their detention is unknown. but there is speculation that a key government official was in the hotel and that he planned to use the journalists as human shields against rebel attacks. the u.n. security council has discussed a u.s. proposal to release $1.5 billion in frozen libyan assets for humanitarian assistance in the country. the council held an informal meeting on wednesday on a draft resolution to unfreeze the assets of gadhafi and others and make them available it libyan citizens. nhk obtained a copy of the draft calling for assets to be used as soon as possible.

the draft calls for $500 million to be use ford humanitarian activities and another there are 500 million to provide food and other supplies. ahead of the meeting, the german deputy ambassador to the u.n. spoke to nhk. >> we need to act very quickly on the defreezing of the sanctions, so that the libyan people will be in a position to reconstruct the country as quickly as possible. >>. security council members are expected to meet again on thursday to discuss the issue pz. >> fighting is intensifying between government forces and aldied kooida militants. 42 people have been killed in the past two days. the local al qaeda affiliates has grown while government forces are preoccupied, cracking down on protesters demanding that their president resign. fighting has continued between the affiliates and the government in the southern province, since the group took control of most of the region in

may. in the provencial capitol on monday, several soldiers were killed in a clash with al qaeda related forces. the government responded with airstrikes the following day. a local hospital says 35 militants were killed in the strikes. over 1,000 al qaeda related militants were in the province. some across the country are joining and clashing with the government. their president is in saudi arabia recuperating from injuries he suffered in june during a bomb attack. now let's take a look at the latest in business news. good morning. >> very good morning to you, katheri katherine. let's start with atory in the united states. the fiscal 2012 budget deficit will likely fall below $1 trillion for the first time in four years. in an outlook released on wednesday, the congressional budget office forecast a deficit of $973 billion for the upcoming

fiscal year, starting in october. the projected decline reflects the content of the debt ceiling bill enacted earlier this month. this calls for cuts of about $1 trillion in the deficit, stretching over ten years from 2012. on the economy, the report says the pace of growth will remain sluggish for a while. it estimates the jobless rate to stay high at the 8% level for the next three years. for the october three december quarter, the budget office predicts unemployment rate of 8.9% and 8.5% for the same period next year. following wednesday's downgrade of japan's sovereign debt, u.s. credit rating agency moody's lowered the ratings on major japanese banks. moody's downgraded the country's credit rating by one notch to aa 3. this is due to japan's worsening fiscal conditions. the agency down groweded tokyo

mitts bey and sumitomo by one notch to aa 3. ratings f mixuho and mizuho corporate were downgraded to a 1. since the finances are getting worse the government may not be able to carry out substantial bailouts if banks are hit by a serious financial crisis in the future. now let's get a check on the markets. dow ended higher for a third straight day as more orders for durable goods boosted sentiment. to see how stocks are trading, here in japan this thursday morning, we cross over to the tokyo stock exchange. good morning, how are markets reacting? >> good morning to you. markets are reacting pretty positivelyollowing from what we saw in the u.s. session as well. you mentioned the durable goods orders and that rose in the month of july b 4%. ifou strip out aircraft dcar sal

stros add that to e ggt perceivedng ckn central bankers a pic liquit

will focusn e j e yeery. mena takund tveurricedntpotil ia it bnghf

ck tyo tootoe thil cha' ofheatt rk fur. f no e ald x- aen

ss l sti nsr ssasd nem as nt dat fhece n. eys 5 he ftmit iit thd .esnrn

is uikyoe ete vehece hs nwo t erisonrnrhe tm siehe ran spacecraft is e only transportation two d ohe space station after the u.s.pa stt was commsi >> we have always known this was a risk and i very much expect that we ,rrssn colleagues, sorte analangecoorblwi the next flight.

tepco predict tee years agth a 10 meter tsunami could hit the fukushima dic an that did not reach the government until just before the disaster onch th. the safety agency toldte on wednesday that tepco reported rch 7th.iction to theyn tepco says it made the atgheaxum height , whe of a tsunami in the event o a high wave at the plant. tepco assumed when it desde pnt height would be 5.7 meters. the agenc ssheth company provided the pro deck the agency ordered the mpy tubt a detailed report as quickly as possible and suggested the need toefm e citi.

>> translator: we failed to predict the scalef e tsunami. we must take this seriously as a regulatory body. >> tepco says it didn't intend to dcle the assessment of the public or to the public, t wentative calculation for research purposes, based on a simulation. de lt japan winding up his first visit since assuming office. before plyingut ohe u. air base in tokyo on wednesday, biden praised about 700 troops for helping rebuild areas devastated by the march th dist. >> i want you to know what you've accomplished here in japaover the past few months is nothinghort of astounding. >> biden also stressed the imrtance of bilateral ties for peace and stability of the asia pafi region. >> our lines to japan will become more important than in the past.

it continues to be absolutely critical. >> during his three-da visit, biden met with prime minister un bo ssttial discussions were held. planned meeting in early september between kan and barack obama was cancelled because n due it step down. the international atomic energy agency wants it carry out safety checks inll cntes with nuclear power plants over the next three years. the nuclear watch dog has been rkg lao continue global nuclear safety since a crisis erupted at the fukushima daiichi plant in march. thlastraomled earlier this week urges safety checks in every country with nuclear power within the next three years. e af ssew plans should be checked to determine if they have the appropriate reactor designs and safety measures. the draft will beisss a a meeting of the board of

governors next month before it's presented to the general conference, beginning on septbe. > xte meet a boy who went through some dark days after he was forced out of his hometown. he and his family lived near the fukushima daiichi nuclear plant but when radiation began pouring out, they fled and the bel to deep depression. but when he returned to his passion, playing the trumpet, his days grew brighter. ♪ ♪ >> 15-year-old yoshita livers in tokyo with his parents and two younger brothers. thwhe fil lers to make music. he plays trumpet. but ever since march 1 17b8g, he looked upon the tmp a more than just a musical instrument. it was on march 11th that the earthquake and tsunami destroyed chf japan's northeastern coast. his hetn d fukushima

prefecture was among the devastated community. on the following day, he heard about the nuclear accident at the fukushima daiichi plant. he lives less than 15 kilometers away. his parents decided to get out right away. nothamy les in an evacuation apartment in tokyo. >> translator: i sawotof armored cars coming into my town, carrying people in white nuclear suites. >> they had all pas masks on. i thought something big happened. >> translator: i broke into tears atomt. i thought, i might not be able to go back there ever again. >> the stress of the massive earthquake and tsunami and fea of riaonad kyo

despondent. he didn't speak and some of his hair fell out. >>. >> translator: the worst thing was leaving my hometown. and leaving my friends. for good. >> in his hometown, he played trumpet in a brass band. all of his band mates survived the disaster but some lost family mbe and the disaster left them scattered all over japan. the band members have never been together again. a few months after the disaster, kyo return id to playing his trumpet. his mother says, music might have been the only way he could express his feelings. >> translator: i hoped one day the trumpet would help him somehow he began practice it. now it has actually become his support.

>> about that time, kyo received some good news. one of japan's best known jazz clarinettists decided to hold a charity jazz event in tokyo. he asked the members of kyo's band to accoany him. >> five members of kyo's band were able to make it to the event. for the first time since the disaster, they were able to confirm each other had survived.

kyo and over 600 musicians gathered for the charity concert. and together, they got the joint jumping. ♪ ♪

>> translator: whatever happens, i hope they keep playing their instruments and enjoying music. i'm so glad to see them fine after all. >> i had a great time playing with the others. i'll never fget this. >> kyo is studying hard for high school exams but also harbores a dream, to perform again with his band back in his hometown. and welcome to your weather update. let's look at conditions across the globe. starting with east asia or rather just east of the philippines we have our tropical

storm system here. this is severe tropical storm still showing signs of intensifying. forecasters are calling for this to become a typhoon within the next several hours. it will pack stronger winds and slowly heading north ward. possibly tie waun area towards the weekend. still too early to tell. this area, especially in the philippines, will have rif sea conditions. outer rain bands too may be impacting the area. and taiwan needs to keep a close eye on its progress the next few days. still dealing with this very active rain front, drifting from japan but in line for a lot of moisture to come into the area. so across the country we are talking about very unstable conditions again. today, anywhere really, in the area, we could see the heavy sudden downpours developing up to 100 millimeters or more,

possibly in a lot of areas. watch ut for flooding and landslide risks. thursdays high will be at 30 degrees on the steamy side. also 30 degrees for seoul. a pleasant 26 degrees for shanghai. now in the caribbean, we have been monitoring this hurricane system. into the southern bahamas. this is major hurricane irene now category 3 system packing winds of almost 200 kilometers per hour. gusts are likely much higher. it has been battering the turks and keikos islands. it looks like it will maintain that strength as it moves in towards the eastern seaboard of the united states. it could make land fall anywhere from north carolina up towards massachusetts area. so wide iera along where you want it to be the launch for this system, keep a close eye on rainings and warnings. impacting the islands here, even

though there is a line towards puerto rico, rain shower totals will be adding up. watch aught for continues high risk of flooding as well as landslides. in the next 72 hours, rain moves in to the middle atlantic region of the united states. you want to start taking precautions now while you can. finally, a look at europe. a big system in towards brit irn isles. showers are going to be moving throughout the area over the course of tonight. showers will also start impacting western europe as well. more central area and in towards the scandinavian. gusty weather will be moving through the area today. on thursday, highs will remain at 19 degrees in stockholm, looking much cooler. 28 in berlin. 34 again and steaming hot again in budapest. ke precautions for the heat. that is your weather for now.

here is your three-day outlook. stories this hour, libya's transitional government says it is working to set up a new administration, while searching

all out for gadhafi. pockets of resistance remain in parts of the capitol, tripoli. the leader of the opposition national council told reporters in benghazi on wednesday that it would launch a new administration to replace gadhafi as soon as possible. he spoke the day after forces seized gadhafi's military compound in tripoli, effectively bringing his reign to end. the council plans to transfer his base to the outskirts of tripoli soon. >> we are offering a bounty bf $1.7 million for whoever captured gadhafi. >> he also says the judge will grant amnesty to officials if they hand in gadhafi or kill him. but with fierce resistance by gadhafi's troops continuing south of the capitol wednesday and gadhafi still at large, the rebel administration is not in the clear yet.

the u.n. security council discussed u.s. proposal to release $1.5 billion in frozen libyan assets for humanitarian assistance in the country. the council held an informal meeting on wednesday on a draft resolution to unfreeze the assets of gadhafi an others and make them available to libya's citizens. nhk obtain aeds copy of the draft calling for assets to be used as soon as possible. the draft calls for $500 million to be use ford humanitarian activities and another $500 plilon to provide food and other supplies. a head of the mighting, german ambassador of the u.n. spoke to nhk. >> we need it act very quickly on the defreezing of sanctions so that the libyan people will be in a position to reconstruction the country as quickly as possible. >> security council members are expected to meet again on thursday to discuss the issue.

that's all for this edition of "newsline." do stay with us.

kcsm needs you financial support. you can pledge at any dollar level that is comfortable for you. at the 50 dollar level, you will receive the kcsm polo shirt. whenever you wear it, you'll show your support of kcsm, the bay area's independent public tv station. this 100 percent cotton shirt features the kcsm logo on