glad you could join us on this edition of "newsline." it's thursday, august 30th. i'm catherine kobayashi in tokyo. strained relations between some neighbors have made a routine exercise anything butt. south korean forces run regular drills. claimed the takeshi ma islands and have complained since bak visited earlier this month. south korea has controlled the area since 1954. twice a year, military personnel

stage exercises there along with police. they're scheduled to start their next drill in one week. navy destroyers and submarines will take part in the exercises. dozens of marines are scheduled to land by helicopter. touched off a series of complaints on both sides. still south korean foreign affairs says the military should go ahead with the exercises. chinese officials say they're pressing ahead with their investigation into a diplomatic incident on the streets of beijing. chinese foreign ministry officials say several government departments are taking part in the investigation. embassy officials want those involved to be arrested immediately. but they say police have not provided them with any updates on the status of the investigation. embassy staff already submitted

photos of the vehicles and one of the men involved to police. the incident occurred on monday. two vehicles forced the car to stop on a beijing highway. a man got out of one of them. then he ripped off the japanese flag attached to the car. many chinese support what happened. some say those responsible are heroes and should not be arrested. on one website, more than 80% voted to support them. many criticize the police investigation. japanese prime minister yoshihiko noda has taken another hit. passed a censure motion against him. this means they've paralyzed the government. noda could be forced to quit or call a general election. noda's opponents say he's incapable of handling domestic and foreign affairs.

>> translator: the prime minister keeps ignoring the people's voices. he bears a heavy responsibility. >> translator: we strongly call for soul searching and condemn those who submitted this motion which is highly partisan and irration irrational. >> it is not legally binding but the opposition will block all bills the the upper house. >> translator: i insist the prime minister dissolves the lower house as soon as possible. >> noda is expected to ignore calls to make way for an election. his time is limited. the government's money could start running out this autumn if it doesn't get help from the opposition. nhk world's senior political commentator came by the studio earlier to give us some insight on what this motion means for japan. he has followed japan's leadership for years. >> what prompted opposition

parties to submit this motion? >> they're blaming the government for escalating tensions in territorial disputes with south korea and china. to to visit the islands controlled by south korea. and claimed by japan. members say the same weakness allowed hong kong activists to land on one of the senkaku islands controlled by japan. opposition says noda should have used diplomacy to prevent the landings. >> so how has the noda administration reacted? >> well, members of noda's own democratic party sayhat the motion will weaken the leadership of this country. and send its own message. there are a lot of domestications to solve and the party should be helping. >> how do you think this will

effect the japanese people? >> the opposition party is refusing to join the diet and they control the upper house. that will stall the workings. ministers want to produce measures to help low income workers cope with the tax hike. they want to reform the electoral system so there are a same number of voters in each. and they want to pass bills in enlarge the budget. if they can't, that could cripple public services. a lot of people are criticizing that those parties are just playing political games at the expense of people's lives. >> how will all of this affect prime minister noda? >> you know, the censure is not binding. so the prime minister does not have to respond. but it gives the opposition.

if the government cannot do the budget, he will be forced to resign or call general election. his approval rating is approaching a record low. so he'll be keen to delay the election for as long as possible. but the motion makes it clear this time. that prime minister noda will have to make a decision some time this fall. >> that senior political commentator. investors here in japan are searching for clues. they want to know what the federal reserve will do next. ramin mellegard joins us now from the business desk. so what are exactly investors looking for from the u.s.? >> investors looking for any hints or clues as to what the federal reserve may do. you might get that hit at the jackson hole wyoming meeting that kicks off this week.

ahead of that, u.s. central bank says the country's economy continues to grow at a moderate pace. a recovery in employment is slowing. the federal reserve released on the economic conditions from july to early august. this is based on surveys from 12 district banks across the nation. the detail the report known as the beige books personal consumption rose in much of the districts. the report also notes a recovery in the real estate market. housing starts and home prices are on the rise. it points to a slowdown in the factor citing reduced sales and orders. it also says employment has not seen a major improvement. so the assessment is slightly more cautious than the previous one released in july that pointed towards a modest expansion. investors are focusing on whether the fed will take monetary easing measures at the next policy meeting starting on september 12th.

separately the pace of economic growth was revised up slightly from the april to june period but remains sluggish compared to the last two quarters. commerce department officials said gross domestic product expanded 1.7% in the second quarter of this year. that's up 1.5% which was the preliminary figure released in july. consumer spending was revised upward to 1.7 prst. it accounts for 70% of american gdp. officials downgraded the growth rate of corporate capital investments to 4.2% and housing investments to 8.9%. foj the positive economic data from the united states, new york profit shares. the dow jones posted higher at 13,107. so how are stocks kicking off in tokyo? we cross over to the tokyo stock

exchange. so how are things kicking off this thursday morning? >> it's been a fairly quiet week in terms of volume with many investors taking to the sideline now. that's been the case here in tokyo as well as other parts of the world including new york. we're about eight minutes into trading on this thursday morning. let's see how things are kicking off here. as you see on the streen there, both the nikkei and the topix posting losses. the nikkei average down about .2 of 1%. and the topix also down almost by .2 of 1% on this thursday morning. now, as i said earlier, there are some key events, big economic events coming up later this week as well as next week. the biggest focus obviously is on the fed and whether it's going to take extra monetary easing steps to boost the economy. now, market watchers are paying close attention to fed chairman ben bernanke at the jackson hole meeting which is starting on

friday. and whether he's going to make a hint about the extra easing including the possibility of qe3. that sense of caution was felt. both the dow and nasdaq ended in positive territory. stocks got help from positive u.s. economic data including housing and revised q-2 gdp. little reaction to the fed's beige book which says modest. and here in tokyo they will be looking at sharpe. the founder will visit an lcd panel plant in western japan. there he may explain the investment plan to the japanese company. now, sharp shares were up by nearly 7% yesterday. >> speaking of currencies, how is the yen trading against some of the major currencies this morning? >> yeah, the dollar/yen in a

tight range. dealers were encouraged to buy the dollar after the release of firm u.s. economic data. but the overriding sentiment was that of caution ahead of they have jackson hole meeting. the yen little change against the euro as well. if you look on the screens. doll doll dollar/yen little change. going forward, lots of events coming up as i said. jackson hole starting this friday and key u.s. jobs data on friday next week. lots to digest. back to you in the studio. >> thanks a lot. and that was our business reporter at the tokyo stock exchange. that's all from business news for this hour. i'll be back next hour. in the meantime, i'll leave you with a recap of the markets.

>> japan's government says more than 320,000 people could be killed in a natural disaster. detailed projections for a mega quake and tsunami along the country's pacific coast show major casual tis and damage. but solid preparations could significantly reduce the impact. the estimates are based on a scenario with a magnitude nine class quake near the trough off central to western japan. a panel of government experts says a tsunami topping 30 meters could hit parts of the pacific

coast. in the worst case scenario, 123,000 people could die. the panel projects the highest tsunami of up to 34 meters could hit the city of tosashimizu. the beautiful cape is a major tourist attraction. but there are no high grounds to evacuate. >> translator: 34 meters. that's so high. >> translator: would the tsunami be equivalent to an eight story building? >> there's an evacuation tower in the city center. but it's just 11 meters above sea level. residents no longer feel that will keep them safe. >> translator: we can't make it even if we climb that tower. >> the government says casualties can be cut by up to about 80% if people evacuate quickly and make use of safe buildings for shelter.

it also says the number of collapsed buildings can be reduced by about 40% if more are made quake resistant. a team of japanese architects has beaten 55 competitors to win the top prize at the venice vinala. they were given the award for designing a post community living in the tsunami struck northeast. >> the golden lion goes to the pavilion of japan. >> the wins exhibit is called homes for all. the building complex is in the process of being built in iwate prefecture. the area was devastated in last year's march 11th disaster. >> i want to express my deep gratitude to all the people who worked for hard for this building.

>> japanese architect and his team of architects designed the complex for survivors living in temporary housing. they want to provide the residents with a sense of community. it's the second time a japanese architect has won the award. won with the project themed on the 1995 great earthquake. the winner was announced on wednesday at the exhibition in venice, italy. books, films, monuments. they're all important ways to keep history alive. nothing beats old fashioned story telling. senior officials in hiroshima think so, anyway. they're working to preserve the eyewitness acts of the hiroshima bombing. they're a message to future generations. . a message only a person can deliver.

>> reporter: hiroshima's traumatic history brought to life. the students with listening to ikanishi. the atomic bomb survivor has been a volunteer for 12 years. these days he recounts his experience of ground zero with a new urgency. >> translator: there won't be survivors to talk about their experiences much longer. time is running out. we won't be around much longer. >> reporter: who will tell the stories when nakanishi is gone? this training program may provide the answer. these people are taking a course to become the next generation of story tellers. they will pass on the experiences of the survivors. anyone can apply. no family connection to atomic bomb victims is required.

about 120 people attended the first lecture in july. from southern japan, none of her relatives were atomic bomb victims. why is she here? >> translator: it's because of this. >> reporter: it's a novel about a suicide squad during the pacific war. the book sparked an interest that left her wanting to know more. she traveled around her home prefecture to learn about the war. she took pictures of kamikaze bases and visited peace memorials. she also happened to watch a tv news report about the project in hiroshima. >> translator: i thought it was really sad that the memories of the atomic bomb are starting to fade. just as i was thinking about what i could do to help, i learned about this program.

>> reporter: the training will take three years to complete. she will learn about the atomic bombing and listen to survivors. these are first hand accounts of august 6th, 1945. they give her a new and personal perspective. on this day the speaker was 17 when the bomb struck. she gave birth to a son three years after the bomb was dropped. he died less than three weeks later. >> translator: it was 18 days after he was born. he had been breast-feeding happily. but then suddenly he stopped. his mouth became stiff and his eyes became vacant.

then he stopped breathing. the doctor told me it was a result of atomic illness. >> reporter: she is moved once again. she feels a renewed sense of responsibility. >> translator: i want to be able to honor the survivors' accounts by taking in everything they are expressing to us here. i want to carry their legacy into their future with great pride. >> reporter: she says she will complete the stories. the stories of the bomb survivors are a living history. one she is determined to keep alive. childhood dreams are too

often just that. fleeting passions ta are forgotten with time. but here's one man who never let go. his achievement is a dream that began 80 years ago. and today stokes the imaginations of thousands. >> reporter: it looks and sounds like a train chugging through a european countryside. but it's actually a much smaller version of the real thing. one of many miniatures on display at the railway museum. it opened in july in the birthplace japan's railways. visitors can see japanese, european, and american models. all are faithful to original designs. for example, electric powered

trolley cars with detailed leather hand straps, rare models with intricate stained glass windows and carved handrails. and the oriental express. r with perfectly placed dining sets. all of this is the work of one man. world renowned model train craftsman hara. >> translator: i am thrilled. i hope people can enjoy everything in this museum forever. >> reporter: the 93-year-old's love for trains began eight decades ago. hara created his first model from scratch at 13. using steel plates, empty cans, and other household items. he's been hooked ever since. the museum's biggest crowd

pleaser is this. a 310 square meter display with tracks and train it is running through miniature cities. it's one of the largest indoor d in the world. trains scale down to 1/132nd of the original. hra also wows them with his intention to detail. trains stop at each station and their headlights turn on during the night setting. sight, sound, touch. hara's goal is to give people a complete train experience. >> translator: yeah. i wantall.

>> translator: everything looks so real. i can't help but stare. >> reporter: the public is now benefitting from hara's life long passion for trains marveling at what he built with his hands and his heart. what will you do with your childhood dreams? nhk world. >> certainly something to think about. well, there's a powerful storm approaching south korea. and residents are dealing with windy and wet conditions. >> yes, catherine. this is over the east china sea. packing winds of 110 kilometers

per hour. it's set to make landfall in south korea within the next several hours and then move over the korean peninsula towards the northeast. stormy conditions are already occurring across the southwestern corner of south korea. we're anticipating an additional 150 millimeters to fall across south korea and more than 200 millimeters in north korea. if you remember typhoon that hit two days ago. any additional rain is not good news. so further flooding and landslides are highly likely at least for the next couple of days. as for japan, looking try but underneath tembin we may see pop-up thundershowers. across the west, looking dry across much of china. but inland areas will see heavy thundershowers from today we're anticipating as much as 200

millimeters or more with locally 280 millimeters from today into the weekend across inland area in eastern sichuan area. remaining over 30 degrees over the past 21 days. it's going to be another hot day for us. cooling down to 36 degrees in seoul. and 32 degrees in bangkok. moving into the americas. of course the main story is going to be isaac. isaac has been downgraded into a tropical storm, but still bringing stormy conditions across the gulf coast and extensive flooding along the coast. it's moving at a snail pace about nine kilometers per hour. so that means dangerous sea conditions and heavy rain will pull along. we're anticipating as much as 600 millimeters to fall across louisiana, alabama, mississippi, and arkansas. that's quite a lot for this

region. inland flooding is also a big concern. it looks like isaac will move over louisiana into thursday and then reach arkansas by friday morning local time and then move along the mississippi river valley. heavy rain will continue. good news is it's been on the dry side across the midwest so beneficial rain for you. across the west, to the north dry and windy conditions are favorable for wildfires in the northern rockies and the plains. and temperatures are heating up. look at this. 35 degrees in chicago. 35 degrees expected in denver. but back behind it, looking seasonal. 20 degrees in vancouver as well as seattle. here's the extended forecast.

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