www.vitac.com bank bailout. eurozone finance ministers rushed to rebuild the financial institutions in spain and patch up europe's latest trouble spot. eurozone finance ministers have confirmed that they will speed up the process to help spain's troubled banks. this came after spain's reports that it would officially ask the european union for support next monday. finance ministers of the 17 eurozone countries held a meeting in luxembourg on thursday. they discussed ways to prevent the debt crisis from spreading

further. they decided the european commission and the spanish government would discuss the scaling conditions for the aid. they confirmed they would decide on the details for their next meeting scheduled fur july 9th. the spanish deposit said the country's commercial banks need a maximum of 62 billion euros in extra capital, however the eu said it's ready to provide up to 100 billion euros. the finance minister has also decided that investigators from the eu and other organizations will visit athens on monday. they'll begin talks with the new administration that wants a relaxation in the austerity measures. so let's see how stocks are trading following the meeting. the finance ministers say they're accelerating actions to help banks in spain. so how did investors react to the announcement? >> well, not as positively as

one might imagine catherine. that really weighed down u.s. and european markets. that, of course, follows asian stock markets on thursday. most were down because of a slowdown in chinese factory output. now let's see how we're trading here at the tokyo stock change this friday morning. good morning to you. doesn't look like a pretty picture to end the week with. >> that's right. good morning to you. as you said, the u.s. markets really saw a string of weak data that kicked off the trading session and the news just kept getting worse. it started off with weekly jobless claims. that remained high and we had a major regional output index showing a steep decline and home sales in may also fell. and right at the end of the trading session at the bell moody downgraded 15 major investment banks. so all of that weighed on the u.s. markets which actually saw its second worst trading session this year.

turning to europe regarding spain's fiscal health broegt a winning streak. let's see how all that's moving markets in tokyo this morning. well, as you can see both the nikkei and topix are down nearly 0.9% but tokyo did go up from the region yesterday with gain of 0.8%. that was mainly on a weaker yen. an analyst i spoke to said he expects profits toward the weekend. expect to see a light trade today as the chinese market is closed for a national holiday. it's a risk out there. that's not helped by hopes that have been dashed for stimulus measures by the u.s. fed. that's pushing up the u.s. dollar against the euro and the yen. now let's see how foreign currencies are moving right now. as you can see, the dollar is up against the yen and also trading at the 1.25 level against the

euro. the euro actually -- the 1.27 levels yesterday but now much lower against the dollar. this is due to a selling of risky currencies for the dollar for safer assets such as the dollar and the yen. now -- the euro/yen is also back at the 100 levels. now turning back to the markets, we do have -- >> i have a question for you. >> go ahead. >> you mentioned that the u.s. fed, any stimulus hopes for that may be dashed for now. what can you tell us about over in europe? >> well, we do have a mini eurozone summit coming up with the leaders in the meeting to discuss the eurozone crisis. any news of financial integration will be closely watched out for, not forgetting greece which has a newly formed coalition government. they'll be trying to renegotiate

the terms of their bailouts. interestingly tonight we have a greece versus germany face-off. we'll see who ends up the net winner on the pitch tonight. >> thanks a lot from the stock exchange, both the nikkei and the topix down over 9% so far this friday morning. now, crude oil prices, they dropped to their lowest level in eight months on thursday in the new york commodity markets as concerns mouped over a global economic owdown. the benchmark west texas intermediate crude oil futures fell below $80 per barrel for the first time for the first time since october 2011. the price closed at $2.08. market players sold on the mercantile exchange as manufacturing data from the u.s. and china came in weaker than what most analysts had expected. let's take a look at current

prices. oil is currently fetching $78.4 a barrel. oliympus is set to open tals with sony for a capital and business alliance. the japanese optical equipment maker is seeking around $625 million in the new funds from other companies. olympus posted a massive net loss in the business year through march after its former managers covered up a huge amount of investment losses over a number of years. to improve profitability, olympus plans to implement streamlining measures like consolidating its factories. it will also boost its endoscope and other medical units which are its main business. olympus aims to boost sales by 30% to $14.5 billion within five years. this would generate a net profit of about $1 billion. now, if the talks with sony fail, olympus may enter

negotiations with another firm. so far fuji film holdings and a medical maker tetamo have also shown interest. that's a check from me this hour. we'll have more next hour. here's a check on markets open this hour. . a new austerity measure has been formed in greece. a new government spear headed by

the prime minister was launched on thursday. the new democracy wanted the election but fell short. it per situated the socialist pasok party and the moderate left party to join the coalition. the inauguration of a new government has ended it. it's helped to keep greece in the eurozone. however, the three ruling parties have pledged to vote a an easing of austerity measures in the campaign. afghan president hamid karzai has asked lawmakers to step out corruption. he's been asked repeatedly to stop more shady dealings within his government. donors are plaining to pledge billions next month in tokyo. karzai wants to calm fears that the money will be misspent.

>> translator: we will go to the conference in a few days. god willing donors will continue to pledge a similar amount of aid. >> karzai addressed a session of the upper and lower houses of the national assembly. he says corruption has reached a peek in afternoghanistan and he it's an ill they must cure. >> they'll pledge $4 billion a year to develop afghanistan in the coming years. nato-led troops are scheduled to withdraw in 2014. an indonesian air force plane has slammed into a housing mplex in the capitol jakarta. all seven soldiersn board and three local residents are dead. an air force spokesperson said the fokker 27 turboprop was on a routine training flight. reports say the housing complex is a military facility near the base. the aircraft crashed into nine

houses. authorities confirmed three people, including two children, were killed. police and military officials are searching the area to check there are no other victims. chinese and vietnamese lawmakers are both staking their claim to change the violence in the south china sea. the chinese have designated a huge designated area as a sea and they've claimed sovereignty over parts of the same territory. officials at china's civil affairs ministry say they have integrated the ministry of several island chains into the new city of sansha. it will be located on an island of the paracel chain. they're pleading sovereignty over the paracel and spratly island claims. >> translator: claims of

sovereignty over the paracel and spratly islands by any other country are illegal and invalid. >> analysts believe chinese official officials will dissuade them from acting on the territory. >> they're finding national cementment on both sides. chinese ambassador to japan says the two countries should take their time over the senkaku islands issue. a joint survey of people in japan and china indicate that anti-chinese sentiment in japan is growing and vice versa. >> translator: china and japan should not link public emotions with this issue. we should give it time and talk about it. and eventually arrive at a solution.

>> he criticized the plan by outspoken tokyo governor to pie some of the senkaku island champion from its private japanese owner. the chinese ambassador said some people are deliberately inflaming tensions between the nations. he added that recent developments have cast a shadow over the events marking the 40th anniversary of normalization of diplomatic ties between japan and china. the ambassador's comments prevent chinese hopes of preventing the sensa ku issue with damaging ties with japan and ultimately affecting domestic politics. the chinese communist party will choose its new leadership at a party convention this autumn. the islands are part of oak na wa prefecture and china and taiwan. members of defense forces are helping to give basic medical care in the philippines. they're eager to boost their

profile in the region. members of an international mission offer health services year round to people in the philippines, vietnam, and other countries. this year personnel from 13 nations are taking part. a squad from the sdf began working earlier this week on samar island in the philippine. they joined military doctors from other countries in examining residents at a makeshift clinic at an elementary school. a member of the staff visited the clinic and a u.s. hospital ship. >> translator: the operation is a good opportunity to boost japan's profile in the fell peens for future corporation. >> he said he hopes the mission will help build trust between japan and the other nations. vladimir putin returned to the russian presidency about a month ago, and he has wasted no time targeting critics of his rule. earlier this month putin designed legislation designed to squash demonstrations.

anybody who violates the new laws must pay a fine as much as $9,000, the average yearly salary for a russian. people who organize protests could be up for fines of about $30,000. the new laws also forbid demonstrators from wearing masks to kon seem their identity. but instead of discurabling protesters, the president has them marching again. >> reporter: on the 12th of junes, russia's opposition forces staged their first demonstration since the enactment against government rallies. she was distributing white ribbons at the site of the demonstration. she's among those who are calling for a change in russian politics to ensure fairness in political affairs and in elections.

the white ribbon is a symbol of their campaign as the color of white is thought to represent purity. >> translator: many people want change, this country. there's no other choice. >> reporter: she's a housewife in her 40s. she used to have little interest in politics, but last year she became active. lower house elections held in december last year changed her. suspicion arise that the deposit was in involved in massive election fraud. she started to take part in opposition rallies and distribute white rib upons. she also encouraged other people to join in by posting messages on web pages and blog sites. >> translator: the rest of the world, particularly europe, is

much more civilized. i have to say that russia is still a futile society. i want a government to respect the public just like other governments do. ♪ >> reporter: president putin plans to clamp down on opposition forces as soon as he returned to the country last month. the ruling united russian parties submitted an appeal to the lower house of parliament to raise finds. opposition reacted sharply, blasting the government for trying to restrict freedom of assembly and contain protests against the government. >> translator: the new fines are the average yearly income for russians. the law will keep a tight leash on the public. >> reporter: heated deliberation lasted nearly 12 hours, but the ruling camp which has a majority in both houses of parliament ee

eventually prevail. president putin wasted no time signing it into law. >> translator: our law contains no clause, stricter than any existing law in europe. we recall last summer's riots in london and other violence across europe. >> reporter: she's increasingly alarming by his drive to crack down on any move against his position of power. >> translator: putin probably don't know any of mean of proceeding. he thinks of people like us as his enemies. if there's an enemy, all he can imagine doing is eliminating it. >> reporter: the steep fines is a latest attempt by putin to

silence detractors. he has already those in his favor and the public security authority are arresting protesters. now more share alana's frustration with putin. >> announcer: people in japan's northeast are focused overcoming the challenges of the 2011 disaster but it won't be easy. they have to rebuild homes, businesses, entire communities. we'll show you their struggles and their successes on "the road ahead" every wednesday at 1:00 p.m. japan time here on "newsline." the best children's books teach us lessons. sometimes it's about hope. others, it's about overcoming odds. an author and illustrator in japan are focusing on those themes in a new picture book they created. it's inspired by a story from last year's disaster, a tale about a community that found a symbol of hope buried in the

debris left behind by the tsunami. the dem stragtss are shown now at a gallery in tokyo. nhk world takes us there. >> reporter: walking inside this small gallery in central tokyo is like flipping through the pages of a picture book. 30 original pieces of artwork of a new children's book are on display. the illustrations are fun and geared toward young readers, but the story itself is quite serious. >> translator: i wanted to illustrate how personal relationships bring about hope. >> reporter: cans of hope is inspired by a true story. a story based on what happened here at a fish processing and canning factory in ishinomaki. it's been in operation since 1957. the march 2011 tsunami destroyed the plant along with much of the coastal city.

his staff started clearing away the depresoon after the disaster. that's when they made a discovery. 400,000 cans of mackerel from the former warehouse were buried in the mud. nearly 3,000 volunteers helped them dig the scratched and dented cans out one by one. they washed away the dirt by hand until the original shine came back. them they began selling them as a way to rebuild the company. >> translator: without everyone's help, our recovery would be impossible, so all we can do is to just keep asking for everybody's support. >> reporter: locals began calling these cans of hope. and soon others around japan were able to read about their journey.

>> it's an earthquake. >> it's a tsunami. >> run to the mountain. >> the ocean swallowed our town. >> the factory was gone, and all our cans were buried in filthy mud. >> let's dig all the cans up. we cleaned and we cleaned and we cleaned. our cans may be muddy, and we may have lost a lot from the tsunami, but these cans represent our hope. they're the best! our future starts here. one can at a time. >> translator: there is so much more than just fish packed into those cans. anyone who opens one and eats

what's inside will understand that. >> translator: this is a heart-warming story. it convinced me that the disaster is something we cannot forget. >> reporter: the book's creators wanted to teach theext generation about the dangers of tsunami, but most importantly, they wanted readers to learn about the power of perseverance. >> translator: from those who didn't experience the disaster to the older generation and, of course, the children, i want people from all walks of life to pass this story along. >> reporter: the japan library association has put "cans of hope" on a national list of suggested children's books. librarians across the country are expected to add it to their collections, making sure this story of hope in the face of

destruction won't be forgotten. people in tokyo trying to get to work or school this morning are dealing with heavy rain and strong winds. we have the world weather forecast. with the peak of heavy rain will be this morning and things will turn dry from about 3:00 p.m. local time, but for now, very heavy rain is coming down across much of the area. haneda airport has received about 46 millimeters of rain in a span of one hour. in addition to that, winds are picking up. the reason is we've got a frontal line and a low pressure system, and this system is what was once severe tropical storm, so containing a lot of moisture. so that's why we are seeing torrential rain across the southern portion of -- including central portion of japan. it looks like the system will

move out to sea within the next several hours. so things are getting dryer across most of the west, but because chicago and other areas have received tons of rave, about 500 millimeters in some places, the ground is already very well saturated. the risks of flooding and landslides will remain. there's as much as 100 to 250 millimeters is likely in this area. the heaviest rain will move into the shanghai area for tonight. as for the highs, 28 in shanghai. 32 in beijing. tokyo another high with 34 but we're expecting a sunny and warm weekend. that's definitely something we're looking forward to. we're heading over to the americas. we even fwobet a low pressure system producing lots of heavy

rain across eastern canada stretching from quebec down toward the texas panhandle. and as the system moves toward the east, things will turn quite severe across the mid-atlantic region onour friday. out toward the west, we've got another disturbance coming in to the west coast, so things will turn quite wet and gusty. down toward the south we've got an area of disturbances that's producing lots of thunderstorms in the yucatan peninsula, cuba, and the southern florida peninsula. and there's a 50% chance of becoming a tropical sigh loan within the next 48 hours or so. we'll keep you informed of the progress. temperatures on the eastern seaboard, reach 34g in washington, d.c. and 33 in new york. but as the cold front moves through, we're expecting cooler -- we're expecting cooler temperatures over the weekend. all right. heading over to the european

countries we've got a low pressure system in france producing heavy rain across the british isles and low countries and germany. over the next 24 hours heavy rain will move into the southern portions of the scandinavian peninsula and we have severe weather moving into eastern europe. temperature-wise still on the hot side in the balkan peninsula, reaching 37 here and 37 in athens. out toward the west, 16 in london, 20 in paris and 24 expected in lisbon. that's it for your me now. and here's your extended forecast.

and that's all for this edition of "newsline." i'm catherine kobayashi in tokyo. thanks for joining us.