putting beijing on notice. countries line up against china in a dispute over rare earth metals. four of the words largest economies are in a dispute over cars to cell phones. the united states, japan, eu says they will file claims. they say the claims are unfairly restricting the metals. the three parties announced the action on tuesday. united state asking to restrict.

little has changed. china produces more than 90% of the world's rare earths. the materials are used in high-tech products. the u.s. is preparing to resume its own production. the three parties plan to negotiate in china with accordance with the wto. if they cannot resolve the dispute, they will ask the wto officials to step in with advice. u.s. president obama said he will take a firm stance toward china. >> we prefer dialogue. that is especially true when it comes to key trading partners like china. when it is necessary, i will take action if our workers and our businesses are being subjected to unfair practices. >> chinese foreign ministry spokesperson defended his government's position. he said china's policy to

control the exports is aimed at protecting the resources and environment. >> translator: it's true that china is taking measures to restrict exports of rare earth metals, but they are consistent with the wto rule. the accusation that china has an effective monopoly on the market is false. >> the case highlights the need for diversifying suppliers the metals. >> we advanced our schedule so we could get our materials out to the market. >> smith told nhk world that his company will supply rare earth metals this year. he acquired a processing company last week. he hopes to export the materials

to japan. he says they have about 13% of the rare earth metals. cheaper chinese minerals dominate the market. economists are zeroing in on what central bankers do and say. the bank of japan decided to keep monetary policy unchanged. it seems the federal reserve is doing the same. let's go to ai. tell us about their statement. >> the fed says the american economy is expanding moderately. it will maintain easing among high unemployment and other risks. the federal reserve released a statement on tuesday saying the key interest rate will be kept near zero until 2014. the statement said strains in global financial markets have eased, though they continue to pose significant downside risks.

that is despite the eurozone bailout to greece. the fed says the unemployment rate has declined notably in recent mohs, but remains elevated. the fed says the housing sector is also still depressed. the statement notes rising prices of crude oil and gasoline triggered by conflict in the middle east. it says the increase in fuel prices will push up inflation temporarily, but not in the long term. u.s. retail sales in february rose to a five-month high due to a strong showing of gasoline and automobiles. the commerce department in the united state said retail sales stood at $408 billion this february. that is up 1.1% from the previous month. and the increase was higher than the market prediction of 0.9%. sales of clothing rose 1.8%.

cars and autoarts gained 1.6%. construction materials were up 1.4%. sales of gasoline increased 3.3% on the back of soaring crude oil prices. and the dow jones industrial average rose for a fifth day in a row after those stronger than expected u.s. retail sales made investors more optimistic about the economic recovery. let's see how stocks here are reacting. we will go to ramin mellegard at the tokyo stock exchange for that. good morning to you. economic data is proving to be positive, but a lot of focus on central bank decisions this week. >> reporter: good morning, ai. we saw retail sales rising 1.1% in february. the fastest in five months. also the previous month was revised higher. positive. the federal reserve statement showing a more positive assessment on the economy in the u.s.

we did see the dow and nasdaq rising on the back of that. let's look at the levels. the dow ending at a better than four-year high. nasdaq also closing above 3,000 for the first time in 11 years. that should pretty much bode well for japanese exporters here looking to regain market share in the u.s. in 2012 following the march 11th disaster and trying to recover from 2011 levels. let's have a look at the opening levels here. they are quite a gain here. we broken above the 10,000 on the nikkei for three days in a row. let's see if we can close above that today. it is looking good for that. the nikkei weakened a bit yesterday following the bank of japan move that it left rates unchanged and did not add to the asset buying program. the government officials have said they are keen to keep that 1% inflation goal and also keeping a very close eye on the

yen which has been weakening in the last couple of months. let's have a look at currencies and the dollar/yen. it rose to the highest level breaking above 83. it is to 83.04 right now. the euro holding strong following more positive news that we have seen so far this week concerning greece. ai. >> the weaken yen is good news. there is still some concerns about growth in china following the trade deficit a few days ago. >> reporter: definitely. that caused a ripple of concern, if you will, in global markets as japan ships more goods to china than any other country, of course. japan is sensitive to any economic data coming out of china. some of thcurrency moves and if the chinese government decides to make currency moves

and weaken the wuan. just as the japan wants a weaker yen, the same could apply for china. that is a concern given the growth we have seen and trade deficit. with good news of the possible recovery in japan, still concerns over china. we will see if we can close above 10,000 on the nikkei. back to you. >> thanks for that, ramin. ramin mellegard from the tokyo sto stock exchange. let's see where south korea's kospi is opening.

and that is the latest in the business for this hour. it is back to you. thanks, ai. chinese leaders are getting to grips with economic reality. the premier says it must show it can protect the environment at the same time growing the economy. he acknowledges that chinese businesses are doing environmental damage. we have the story from beijing. >> reporter: chinese government officials will say there were more than 500 environmental accidents in the country last year. some of the main causes were oil spills and explosions at chemical plants. one big problem is pollution by factories. here is a look at some of its effects. >> translator: arrest warrants have been issued for ten people at a factory that released cadmium into the river.

>> translator: officials came across the chemical here. industrial waste water containing cadmium was flowing into the river. this factory was releasing the contaminated water. public prosecutors think the plant operator chose not to treat the water because it was too expensive. people living in the area criticized the local government for not preventing the pollution. the mayor made a public apology. that's unusual for a kchinese officials. more and more chinese workers are getting occupational diseases. >> translator: this is wrong. >> translator: the ngo staff visited the plant to show workers how to protect their

health. >> translator: we want everyone here to be aware of occupational diseases. >> translator: they are handing out leaflets explaining how to use masks and warning workers about the danger s of chemicals. this man worked at the plant until he got a disease. soon he couldn't even hold chopsticks. his doctor said his muscles had wasted away because of a chemical he handled every day. the plant stopped using the chemical as soon as his disease came to light. he suspects the plant operator tried to cover up the problem. he is having physical therapy.

he is supporting himself with part-time jobs. >> translator: i want a stable job, but people won't hire me when they learn about my hands. i can't afford proper treatment. >> translator: yen wants compensati compensation. he has filed more than 20 lawsuits against the authorities. he says officials overlooked the conditions at the plant. but courts have turned him away. they say he has no grounds for the lawsuits or the court is in no judgment to pass a decision. >> translator: the government should do more to protect our health and our lives. >> reporter: a lot of companies

in china try to gloss over the harm they do to the environment and their workers. we called for action in the speech at the national people's congress. >> translator: we must show the world with our actions that china will not seek economic growth at the expense of its natural environment and public health. >> reporter: chinese people are increasingly well informed thanks to the internet. unless the government works harder to solve environmental problems, public anger could become a threat to stability. >> kengo in beijing. in other news, the prime minister noda has told his cabinet to recycle the debris created by the disaster.

the rubble should be used to build a tsunami-prevented coastline. >> translator: i hope this is used to protect people from possible tsunami in the future. >> noda speak on tuesday to a team of ministers. noda told the ministers to ask the paper and cement makers help with incineration. after the meeting, edino said some paper makers have been cooperating. he will ask many other firms to follow suit. the environmental minister said planting forests to protect against tsunami would help people remember the disaster. he said his ministry will decide as soon as possible what kinds of materials are suitable for landfi landfills. japanese diplomats are

trying to assure the people that foods are safe. the eu restricted exports after the disaster at fukushima. the ambassador told them the japanese people appreciate europe's support. he called on the eu officials to ease restrictions. he said japanese inspectors conduct strict testing of their own. >> i hope everything will go back to normal very soon and to share everything with japan. >> i think japan still has a way to go, but i'm confident that the japanese people have the power and strength to go on this very good road. >> the hosts served sushi and other japanese foods as well as sake to try to convince guests of their message. experts say a major earthquake and tsunami will eventually hit the pacific coast

of central japan. a lot of people there saw how the giant wave killed so many in last year's disaster in tohoku. they are determined to avoid the same fate. >> reporter: children take part in a drill in yaizu. a community on the coast of the prefecture. wearing protective hoods, the children prepare for a major earthquake. first, they climb to a higher location. then they put on life jackets. a bank in the same prefecture is also depending on the jackets to protect customers and staff. 43 branches of this bank along the prefecture's coast are also taking the same precautions. at an emergency devices

exhibition in february, five companies displayed newly-developed life jackets. they are designed to protect people from tsunamis. pulling the string or contact with water causes the jacket to inflate. children can attach this gear to the backpack. it helps keep them safe traveling to or from school. many people at the exhibition took a good look at this device. >> translator: it's hard. it's the jacket's main selling point. if it is too soft, it cannot absorb the impact from the rubble. >> reporter: a company here in the prefecture developed it. they specialized in making cushions for cars and motorcycles. until now, they hadn't made life

jackets. company president hiromoto said he decided to make the jackets after watching tv reports about the tsunami. >> translator: i thought, if they had worn something to protect their bodies, it could have saved lives. >> the device protects people from the impact. the foam is water tight. it took them eight months to come up with the jacket that can withstand the force of surging water and debris. it shields a person's neck and hand preventing or minimizing injuries caused by rubble. it is also four times more bouyant than typical jackets. the jacket for adults weighs about three kilograms and costs

$370. lots of people have asked about it. recently, a couple who live near the coast came to inspect the seven. one for each family member. >> translator: the jacket won't let the rubble hurt you. if you think of it as a form of life insurance, it isn't that expensive. >> i hope we don't have a tsunami, but if our products help people survive, i would really feel i had done something worthwhile. >> and an expert in disaster prevention says life jackets do save lives in emergencies, but your first priority should be finding a safe place. going on to other news. the president assad says that syria will hold a general election in may. analysts say the administration is trying to fend off

international pressure by showing its making democratic changes. assad announced the election will be held may 7th. the vote will be the first approved under the referendum approved last month. it involves a multiparty system. victoria nuland dismissed it. >> parliament in the middle of the violence we are seeing across the country is ridiculous. >> government forces have attacked opposition strongholds in the northern city of homs. human rights activists say more than 150 people have been killed in syria in the past two days. united nations officials say more than 8,000 people have been killed since anti-government protests began last march. time to check on the stories

we gathered from asia. we begin with the item sent by thailand. economists at a thai university have raised their forecast for the country's economic growth this year. they have been expecting growth of 4.7%. they are expecting 5.9%. they say the thai economy benefitted from stimulus measures after last year's flooding. the thai economists say they expect exports to grow 10.3% this year. and consumer spending to grow 4.4%. they are expecting 20 million tourists to tour this year and bring in $25 billion in revenue. malaysia has sent a team to the philippines. a team will remain in the area whether or not the government and separatists will sign agreement. it is proposing a cease-fire

monitor. it has been fighting for independence since the 1970s. the group flew out from the air base from malaysia on monday. it will replace a 20-member group stationed there since march, 2011. malaysia has been monitoring cease-fires and peace agreements with the philippines and islamic groups since 2004. it seems warmer in tokyo these days. should i put away my winter coat? rachel ferguson joins us with the forecast. >> i would not be too quick to put away your coat. here in tokyo, it is a few degrees below average for march. we will continue to see that slightly chillier weather throughout the week. in fact, today is starting out to be a very settled across the country. northern locations clearing out after the storm moves away that we had yesterday.

however, there was a low coming over northeastern china. that will bring more gusty conditions and maybe 20 to 30 centimeters of snow particularly along the sea of japan side of the country. northern japan will see that precipitation. don't quite put away the jacket yet. as we head back to the continent here. lots of showers blossoming across china. mostly going to be light to moderate precipitation. however, downstream could get heavier as we get into thursday. further west over the mountains, it will be light snowshowers. scattered thunderstorms in indo china and a wet day in taiwan and northern philippines. temperatures improving to the south of china. hong kong coming in at 18 on wednesday. tokyo 10 degrees forecast for the high. 9 in seoul. we are getting above zero for

the high on wednesday. okay, as we head into north america, it will be a split picture here. you can see the clouds across the northwest. we have a snowstorm here. a winter storm. it will be bringing significant amounts of snow, particularly to the upper elevations of northern california. very windy here. anywhere west of the frontline will experience may-like warmth. very warm temperatures. departures of 17 degrees in some places. i'll show you the figures. you can see the oranges moving up into central canada. 7 degrees in winnipeg. 26 in chicago. 25 forecast in d.c. to give you an idea of the averages in some of these places. rapid city, south dakota, getting up to 22 degrees on thursday. usually we see about 8 for the high in march. detroit, michigan, 22 degrees. also about 7.

in philadelphia, getting up to the low 20s. usually you see around 10 or 11 degrees for the high in march. enjoy that. it will last for the best part of the week. as we head into europe, clear and calm conditions. scandinavia, it will be gusty here. you will see precipitation most of it snow continuing for western norway. out to the east, widespread snow for western russia. down into the southeast, you can see turkey really getting hammered by an active low pressure at the moment. the black sea region seeing coastal rain and inland snow which will be moderate to heavy in some places. temperatures will continue to dive down in the southeast. it will be down to about the freezing point by friday. out to the west, spring-like temperatures. 17 in paris. above in madrid and lisbon at

25. i'll leave you now with your extended forecast. the united states, japan and the european union are all in a dispute over rare earth metals. the three parties announced the action on tuesday. the united states has asked china to review the restrictions. little has changed. china produces more than 90% of

the world's rare earth metals. they are used in high tech products. the u.s. is prepared to resume its own production. if they cannot solve their dispute, they will ask wto officials to step in with advice. u.s. president barack obama said he will take a firm stance toward china. >> we prefer dialogue. that is especially true when it comes to key trading partners like china. when it is necessary, i will take action if our workers and our businesses are being subjected to unfair practices. that's all for this edition of "newsline." i'm catherine kobayashi in tokyo. thanks for joining us.

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