under strain. the u.s. and japan work toward new sanctions on iranian oil while trying to avoid negative impacts on their economies. diplomats from the united states and japan are trying to cinch up the pressure around iran. they're meeting in tokyo to discuss new sanctions to block iranian oil. consumers in japan and elsewhere fear that could drive up the price of gas and slow economic recovery.

japan gets about 10% of its oil from iran. the japanese side has asked the americans to be careful about how they impose sanctions. u.s. delegates said they'll try to avoid negative repercussions as much as possible. >> i am confident that as we continue to work with japan that they will -- that they will take the steps that are necessary. >> japanese representatives hope to get an exemption from the sanctions under certain conditions. they're exploring ways to reduce oil imports from iran. u.s. diplomats said they would make exceptions for some countries, depending on their trade with iran. the americans hope to use the sanctions to persuade iran to halt its nuclear development. but they've had a tough time convincing some countries to support them. the u.s. energy department says iran produced 4.25 million barrels of crude oil a day in 2010, making it the world's fifth largest producer.

the department says data from the first half of last year shows china imported 22% of iran's oil, the largest importer in the world. the european union imported 18%, followed by japan at 14%, india at 13%, south korea at 10%, and turkey at 7%. south korea says it will support the u.s. policy while taking into consideration the impact sanctions have on the economy. eu foreign ministers will meet next monday to decide whether or not to ban iranian oil imports. chinese leaders are opposed to sanctions. they say imposing them will not resolve the nuclear issue. they say china needs oil for continued growth. indian leaders say they will continue to import iranian oil. turkish leaders will not support the sanctions either. iranian naval commanders warn that if the west goes ahead with the sanctions, they'll close the gate to the persian gulf.

a former senior u.s. general says that if that happens, the u.s. military will take prompt action. richard myers was chairman of the joent chiefs of staff for four years until 2005. he spoke to nhk. myers stressed the importance to the world economy of secure navigation in the strait of hormuz. he pledged that the u.s. and its allies would not allow iran to close the waterway. >> if iran used its navy, i think they would be in danger of losing a lot of their naval capability. >> myers said the u.s. and allies would work quickly to ensure the area's security. iranian leaders haven't flinched in the face of these sanctions. naval commanders are even planning another round of military exercises in the strait of hormuz. nhk reports from tehran. >> reporter: the strait of hormuz is located at the mouth of the persian gulf. it's narrow, stretching just

over 30 kilometers in width. it serves as a main artery for crude oil transports. one-third of the world's oil tankers pass through the strait. iran's navy conducted massive military drills near the strait late last year through early this year. during the period, it test fired new types of missiles. the country plans to carry out another round of exercises in the same area next month involving its elite revolutionary guards. all this is taken to mean iran is threatening to close the strait of hormuz if western nations seek to block crude oil exports from iran. >> translator: it's easier for our navy to close the strait of hormuz than to drink a glass of water. >> reporter: in response, the

u.s. navy's 5th fleet said it would launch a counter-attack if freedom of navigation in the strait is threatened. the fleet is based in bahrain, which lies across the persian gulf from iran. last week, the u.s. navy deployed two nuclear power aircraft carriers near the strait in an apparent bid to keep iran in check. iran continues its nuclear development in the face of international pressure. western countries have been gradually tightening sanctions against iran. they're now trying to sever exports of crude oil from the country. last month the u.s. congress passed legislation aimed at preventing iran from shipping crude oil abroad. the european union also plans to impose an oil embargo against iran in the near future. iran relies on revenues from oil exports. if they plunge, the country will face domestic turmoil.

early this month, the value of iran's rial slumped against other currencies, touching the lowest level since the 1979 islamic revolution in the nation. a local newspaper carried out this cartoon. it depicts iranians lining up to buy gold and dollars, which are more stable than real. we're here at a bazaar in iran where recent economic sanctions have greatly affected prices of basic goods, leading to consumer frustration and grim prospects for the future. >> translator: this has been caused by the sanctions. >> inflation is squeezing us hard. the price of food, clothes, and everything else is rising. the government is unable to solve this. >> reporter: however, the international pressure has so far failed to stop iran's nuclear program. earlier this month, the nation started to operate a nuclear facility in the central city of qom.

iran apparently took the move to show people in and outside the country that it will continue uranium enrichment. iran is sticking to its hardline stance because of the domestic political situation. a power struggle among conservatives is escalating, forcing the leadership to take a firmer approach toward western nations. >> translator: iran will not give in to economic sanctions being imposed on the country by western nations, no matter how tough they are. >> reporter: iran is holding on to its nuclear development, despite mounting international pressure. as tensions between the country and the west spiral upward, so do tensions in the strait of hormuz.

nhk world, tehran. troubled eurozone nations may have more to fall back on as funds to support the region may be getting a boost. ai uchida from the business desk with more on that >> the international monetary fund is saying it will ask its member nations, member countries for another $500 billion, and that's to boost its bailout funds. the imf said on wednesday that the injection will allow it to provide about $1 trillion in loans over the next few years. recently the european union had pledged about $200 billion to the imf. the organization hopes to boost the funds available for any market contingencies as the euro debt crisis grows and as the outlook for the world economy may get worse. attention is now on whether japan and emerging economies, including china, will contribute. the g-20 financial ministers and

central bank governors are expected to discuss the imf move at a meeting in mexico in late february. the u.s. treasury department said on wednesday that the imf can play an important role in europe, but only as a supplement to the region's own efforts. it also said that the u.s. had told its international partners that it has no intention of seeking extra resources for the imf. france has unveiled a $550 million plan to improve the country's job situation. french president nicolas sarkozy made the announcement after meeting labor union and business leaders on wednesday. he said they agreed to provide job training to those who had been unemployed for at least two years. the plan also includes reducing taxes and social insurance payments for companies. this measure will make it easier for firms to hire more people. last week a major credit rating firm downgraded french government bonds by one notch

from the top rating. the country's unemployment rate is approaching 10%. u.s. investment bank goldman sachs has posted a 58% fall in net profit in the october to december quarter last year. the eurozone debt crisis made its clients avoid risk, and this reduced the firm's stock and bond trading. the economy says its net profits stood at about $1 billion in the fourth quarter of 2011. goldman sachs saw less profit in all sectors, including investment and market transactions. the firm says it's doing more to cut costs so that it can survive the growing eurozone crisis. goldman sachs last year laid off 2,400 people. that's about 7% of its total workforce. in addition, major u.s. financial institutions say they will cut salaries and bonuses of their employees. goldman sachs said that total compensation for last year was down 21% from the previous year.

however, compensation per employee still remains high at about $370,000 a year. another major financial institution, jpmorgan chase said last week it had cut compensation for people in its investment banking section by 9%. this would make payment per employee at about $340,000. high compensation at financial institutions was criticized by anti-wall street protesters last year. this also pressured banks to take these steps. . tokyo share prices are rising this thursday morning following an overnight gain in new york. the nikkei index now stands higher by over 100 points at 8,653. that is a gain of 1 1/5 of a percent. the broader topix is also trading higher. sources say that buy orders are being placed on export-related

issues. the move follows the overnight release of good data on u.s. housing. news that the international monetary fund may increase its lending funds is also boosting market sentiment. and in the currency market, the euro is up slightly against the dollar and the yen as participants are buying back the common currency. the euro against the dollar currently trading at 1.2857-2858. the euro against the yen is currently at 98.65-70. meanwhile, the dollar is little changed against the yen and currently in the upper 76 yen range. here is a look at the latest long-term interest rates. this is the yield on the benchmark ten-year japanese government bond. and let's also get a check on other asian markets that are open this hour.

>> and a that's the latest in business. back to catherine now. >> thanks very much, ai. japan's nuclear agency has endorsed the results of safety tests on two nuclear reactors in fukui prefecture. it's the first time the government has assessed such tests. the nuclear and industrial safety agency met on wednesday to study the results of computer-simulated stress tests on reactors at the oi nuclear plant on the sea of japan coast. opponents of nuclear power staged a protest against the agency's decision to bar observers from the meeting. after three hours, the agency

convened the meeting in a different venue. two of the eight agency panel members stayed away, saying it's inappropriate to exclude observers. industry minister yukio edano said the ministry will post a video of the meeting on its website as soon as possible. the agency plans to give its final assessment of the two reactors after an inspection by international atomic energy agency officials later this month. local governments must approve any resumption of stalled reactors. fukui prefecture says the stress tests are not enough to approve a restart. local officials want the government to introduce new safety meshes, drawing on the lessons of the fukushima daiichi accident. "newsline" is the place to turn to for the latest on japan post-march lenth. we have two segments offering unique perspectives on the fallout from the earthquake and tsunami. "nuclear watch" brings you insight and information on the

impact of the fukushima daiichi crisis. and "the road ahead" examines japan's efforts to rebuild. don't watch "nuclear watch" and "the road ahead" on "newsline." south korean president lee myung bak has visited the country's front line troops for the first time since the death last month of north korean leader kim jong-il. lee travelled to kyonggi province on wednesday where he inspected an army unit. he was briefed by the officers about recent troop activity on the north korean side of the border. he told the south korean soldiers that they must remain on guard. >> translator: our country faces the world's most belligerent forces. we must ward off any provocation by the north. >> south korean government sources say the leadership transition from the late kim

jong-il to kim jong-un has been going smoothly and that there has been no sudden or suspicious moves by the country's armed forces. russia's foreign minister says he is open to discussions with japan about jointly developing a group of disputed islands. he is scheduled to visit japan later this month. sergei lavrov says the islands off hokkaido became part of russia at the end of world war ii. japan does not recognize russia's territorial claim. >> translator: as to signing a peace treaty with japan, including the demarcation of territorial borders, russia understands the importance of resolving issues in a way that is acceptable to both countries. >> lavrov says developing the islands jointly with japan would be possible under russian law. he said he wants to discuss the proposal with his japanese counterpart during his visit.

a japanese company is fielding a lot of calls about its life-saving plane. the u.s.-2 is an amphibious aircraft used for rescue operations, but only in japan that could soon change. the government is relaxing its stance on the export of defense-related equipment, creatingn opportunity. nhk world's jun explains. >> reporter: this man is working on a plan to turn his company's most famous invention into a viable export. >> translator: this airplane has the technical sophistication only japan can produce. >> reporter: he created the us-2. it's the world's only amphibious

aircraft that can take off and land in rough waters. it's unarmed. the us-2s engines and wings create airflow between the plane and the surface of the water. that enables it tond at low spe. it can even land when waves are three meters high. the surgeon and amphibious aircraft has been playing a role in emergency operations in the outer sea. it has saved more than 900 lives since 1976. but members of the maritime self-defense force are the only ones who can use the us-2. japan's strict ban on arms exports prevents them from selling this aircraft overseas. like helmets and bulletproof vests, it's considered combat

equipment. >> translator: this is simply a rescue aircraft that doesn't have a weapon at all. if we can't export this, nothing can be exported. >> reporter: we asked an expert on japan's defense policy for his opinion. >> this is not used for attacking vessels or airplanes. it's used as a search and rescue vehicle. i think if it's carefully examined, there is no outstanding reason why it shouldn't be treated very flexibly and positively. >> reporter: that seems to be happening now. tough economic times have forced the government to change its stance. this type of equipment can now be exported once it's converted for private use.

shimawa industries is working to turn us-2 into a firefighting project. the project is getting aattention. a member of the eu chamber of commerce in japan tells nhk the french government is interested in the modified us-2 as a way to deal with major wildfires. former french firefighting commander michel in a simulation to show how the modified us-2 would work. the new amphibious aircraft would be able to scoop up 15 tons of water in 20 seconds. that's three times the capacity of a rival model. >> very nice aircraft. i like flight control and power. france will have to choose a new

aircraft, and amphibian is a good solution. >> reporter: and now kawanishi says he has received inquiries from about 50 nations. >> we're enjoying the tailwind. it will be the first time for japan's aviation industry to export civilian converted defense equipment. we are determined to make this happen. >> reporter: until then, this unique aircraft will stay in japan and continue to be used as a way to save people who are at sea and in danger. jun yotsumoto, nhk world. 35 days and counting. that's how long tokyo has gone without rain. let's go to sayaka mori for the weather picture here and elsewhere.

>> welcome back to your weather update. let's take a look at what is happening across japan. things are getting wet across the west. this newly developed low-pressure system is bringing widespread showers to the western half of the nation, and rain is expected to expand to central japan in the next 24 hours. in tokyo, it's been so dry, we've had no rain over one month. but finally rain is in the forecast, starting early friday morning into sunday. and the dry weather will finally come to an end. so that's good news. however, it's a different story for the northern half of japan. it's staying dry and settled thanks to a high pressure system. as for the korean peninsula, the southern half of the region will continue to see a wintry mix throughout today and across china, showers will develop in much of the nation. and because we have a cold air aloft, areas to the north of the yangtze river, most of the

precipitation will be snow rather than rain. down towards the south, much of the malay peninsula, the southern areas of thailand, and much of cambodia will continue to see monsoonal rain, and showers could become heavy at times. temperature-wise, so today we're expecting 34 degrees in bangkok for the high, and 21 degrees in hong kong. still warmer than average in seoul with 7 degrees. tokyo will be coming in at 10 degrees. and we will see more cloud cover as the day goes on. heading over to the americas, the main story is going to be heavy snow in the northwestern u.s. a series of low pressure systems has been dumping a huge amount of snow and coastal rain. so over the next 24 hours, more than 10 centimeters are expected in a wide area. and 20 centimeters in parts of the cascades, the sierras, and the northern rockies. not only the mountains, but also low-lying areas are dealing with

snow. seattle has had about 10 centimeters of snow. snow of such magnitude for this city is quite rare. but more wet weather is expected. and strong winds are blowing. so that is resulting in high waves along the coast. unfortunately, those stormy conditions will likely continue into the weekend. so we are concerned about more travel delays as well as poor visibility. back behind it, cold air is flowing in. so we are expecting frigid temperatures. we will hoe you the figures in just a moment. meanwhile, an area of know is moving over the great lakes. in new york city you may see some snowflakes on thursday night. on the other hand, the southern half of the u.s. is enjoying dry and nice weather under a high pressure system. on thursday, warming up nicely in houston with 22 degrees, and 12 degrees in oklahoma city. as i mentioned, very, very cold air is covering the northern

areas, dipping to minus 22 degrees in winnipeg, which is about 10 degrees lower than average. finally, let's go over to europe. we can see a big rotating clot right here. those are powerful low pressure systems. that's bringing very gusty winds as well as very wet conditions. gusts are exceeding 80 kilometers per hour. as those systems push on to the southeast, much of continental europe will be affected in the next 24 hours. meanwhile, the only dry spot is going to be the iberian peninsula. lots of sunshine for you. so on thursday we are expecting 15 degrees in lisbon for the high, and 12 degrees in madrid. across the east, very cold, minus 7 degrees in moscow and minus 5 in kiev. all right. i will leave you now with your extended forecast.

diplomats from the united states and japan are trying to cinch up the pressure around iran. they're meeting in tokyo to discuss new sanctions to block iranian oil. consumers in japan and elsewhere fear that could drive up the price of gas and slow economic recovery. japan gets about 10% of its oil from iran. the japanese side has asked the americans to be careful about how they impose sanctions. u.s. delegates said they'll try to avoid negative repercussions as much as possible. >> i'm confident that as we continue to work with japan, that they will -- that they will take the steps that are necessary. >> japanese representatives hope to get an exemption from the sanctions under certain conditions.ey're exploring wayse oil imports from iran. u.s. diplomats said they would make exceptions for some countries, depending on their trade with iran. and that's all for this edition

of "newsline." i'm catherine kobayashi in tokyo. do stay with us.