last month. crews from the navyvy fishery administration will take part. they'll coordinate on 11 ships and eight planes. the exercise is aim eed at safeguarding maritime's interest. chinese patrol boats and surveillance ships navigated through the area in the weeks after japan nationalized the islands. chinese officials have criticized japan and the united states for planning a joint exercise next month. personnel will take part in the scenario in which they will try to recapture islands. defense forces soy they have scrambled more jets. pilots have given out an increasing number of warnings from planes from china.

>> reporter: the aircraft took to the skies 209 times between april and september to warn foreign aircraft of possible air space violations. chinese aircraft was warned 69 times. 80% of those warnings happened in july and september. chinese jets usually cross the air defense identification zone and would approach an area 200 kilometers north of the island before hitting back. ministry officials are trying to

figure out why. >> translator: we have monitored chinese naval no, sforces in re years. we must keep collecting information on aircraft and vessels in the region. we must also carry out our mission precisely. >> reporter: in march of last year two chinese navy ya aircraft flew within 60 kilomete kilometers. they came close but didn't enter japanese air space. administration authorities cently dispatched patrol vessels to the water around the islands.

they traveled just south of the islands. the number of asdf scrambles against chinese aircraft has risen rapidly over the last several years. it happened 31 are times in the fiscal year 2008. 156 times in 2011. that's a five fold increase.

>> translator: the chinese military's aim is to collect information and carry out safely so they is judge where they will work and what they will do. we have to strictly maintain the japan-u.s. alliance. this will be a strong message for the military. >> reporter: japanese officials insist their relations with china are important. they've been calling on their neighbor to act calmly. officials say they hope to settle dispute peacefully based on international law. achinese film production team has decided to withdraw its entry. the team wanted to protest the

japanese's government nation nationalization of islands in the east china sea. the news agency reported on thursday that fung shui has been pulled. the film depicts a woman with struggles in the 1990s. they said the japanese government has not shown a sincere attitude regarding the settlement of the dispute. this has hurt the feelings of the chinese people. the people responsible for foreign affairs in japan and britain have agreed to work together to respond to cyber attacks. japanese foreign minister met with his british counter part william hague in london. they agree their officials will cooperate in the event of online attacks. they promise to coordinate resources. many recent hacking attempts

have come through computers in china. u.n. and arab league envoy to syria is planning to visit the country and ask the government to agree to a cease-fire. brahimi will visit damascus on saturday. he has visited seven neighboring countries since last week to call for a cease-fire. the religious holiday begins. sources close to the opposition forces say rebels will support a cease-fire once government forces stop attacking. they are likely to explain a new mediation plan involving the dispatch. once the two sides achieve a truce. tens of thousands of greeks join a nationwide strike with a

common message. they want to tell their leaders that more wage and spending cuts would cripple their society. public sector workers marched through athens angry about the sate of the economy. the economy is expected to contract again next year for the sixth year in a row. they pelted riot police with stones. the police responded with tear gas. the general strike shut down schools and disrupted transportation. hospitals stayed open but with emergency staff only. in return, they would provide greece with more than 31 billion euros in aid. european leaders saw the scenes

play out as they kicked off a summit in brussels. ramin, we've seen some frustration on the streets of athens. what else are the leaders grappling with? >> they are zeroing in on budget issues and how to supervise these banks because these oppressing issues for the euro zone leaders and for the market. you're looking at the whole procedure. european leaders opening a two-day summit in brussels on thursday. they're discussing ways to contain the ongoing european debt crisis. the leaders of the 27 nation european union are aiming to agree on the introduction of a banking union which will oversee commercial banks. the leaders will try to agree on providing all necessary measures by the end of this year to create the banking union. an integrated system for banking supervision would end a cycle of poor bank management and national budget problems.

the introduction of a euro zone budget and closer oversight of eu members have been put forward as possible longer term solutions. the leaders will also be informed of the progress made on the talks between greek and eu representatives about greece's austerity measures. no financial decision is expected to be made at this summit. >> checking in on the markets. u.s. stock prices closed yesterday as mixed corporate earnings. for more details let's going to ching lee. can you tell us more about the volatilities in the market. >> reporter: u.s. markets took a hit. the results which were released prematurely by mistake showed a

sharp drop in profits. let's take a look at how it's moving markets in tokyo this friday morning. both the nikkei and the topix down. t the nikkei managed to close at a three-week high yesterday. today we're expecting china's flash business sentiment. also we'll be tracking the reaction of high-tech stocks and the reaction to the poor earnings results. ramin. >> there's a lot of speculation right now in the markets about what it's going to result from the ongoing eu summit. any progress on that? >> reporter: we can expect some heated debates between germany and france and over how a single

supervisory body should go on. there's the issue of whether the euro zone should be put under central control. some heated debate there. one headline that we saw earlier is the strike in greece. that highlights the ongoing difficulty of conducting fiscal refunds. let's take a look at the currency levels right now this friday morning. the dollar still at the 79 level against the yen but the pair is moving in a tight range. the euro hit more than five-month high. that's ahead of euro zone summit. we can expect some cautious trading today. back to you in the studio. >> we'll look out for that. china's lost its appeal

against a world organization trade ruling in a dispute with the u.s. over steel pricing. a june ruling was upheld that said china imposed unfair tariffs. they argued the u.s. sold the steel products in china at unfairly low prices. that's all for business news for this hour. i'll leave you with a recap of the region's markets.

the alleged rape of a japanese woman by u.s. men has dealt a heavy blow. okinawa has ordered his cab met to set up talks with the united states to prevent such a thing happening again. they attacked the woman as she walked alone before dawn. officials say they have dealt with more than 120 cases in which u.s. servicemen were arrested on charges of assaulting women. the 1995 rape of a 12-year-old girl sparked mass protests there. the prime minister called on his cabinet members thursday and said such incidents must be prevented in the future. >> translator: i will work with

the foreign minister to arrange discussions with the united stat states. >> the two sides should institute measures as early as next week. the study is designed to observe tsunami at an early stage. a research group led by japan developed the radar based on air kroft control technology. the system is installed 60 kilometers off the coast. it can study the height and speed of a tsunami before the waves hit the coast. tsunami up to 18 feet tall are forecast to hit the town. university professor says any observations made using the

radar will yield more accurate predictions. >> one of the goals of this project is to convey the true scale through developing more reliable data. >> experts say overly optimistic expectations before the march 11 earthquake last year left many areas unprepared for the larger waves that did hit. several japanese companies are taking steps to avoid damage from that predicted quake. one of those is the major precision equipment maker that plans to relocate its plant to the other side of the country. they have more than 300,000 people could be killed if massive quake were to hit the

area. that's the reason he still decided to move the plant over 200 kilometers facing the sea of japan. the company ceo, on thursday, briefed the governor and the mayor on his relocation plan. >> translator: there's earth kwa quakes and the city is blessed with social resources. >> he added it could be difficult for the factory to keep producing medical equipment if it remained. people in japan are focused on overcoming the disaster of 2011. they have to rebuild homes and communities. we'll show you their struggles and successes every wednesday at

1:00 p.m. germans are on a mission to make their country neuuclear fr. they lead the world in solar power generation. they also rely on wind. germany's investing heavily in offshore wind farms that can yield four times as much power as land base sources. now it's trying to figure out the next step. >> reporter: by 2020 the country aims to have 2,000 of these wind mills in the north sea and baltic sea. the north port sea is home to have the latest wind power research. now that offshore wind has become viable commercially, researchers in companies from all over the world are coming here to find out more.

>> the idea of the floating technology is to be independent some three types would be suitable for installations and in the chinese sea or around japan. >> reporter: it's been a shipbuilding city for two centuries. now it's major hub for offshore wind technology. in 2002 with shipbuilding in decline the city decided to switch focus to wind. investors have spend 500 million euros developing wind power along germany's north sea coast. the wind farms and related businesses have created jobs and are now the town's core industry. the technology is progressing but the challenge remains. how to store the electricity.

one solution is hydrogen. germany is focusing on hydrogen. this give a clean renewable energy source. last year germany became the first country to commercialize a system for producing hydrogen using wind generated electricity. once a week the hydrogen gas is struck to the capital to be used as fuel for cars. currently there's only 15 filling stations in germany offering hydrogen fuel but there are plans to build about is 1,000. >> translator: we won't need to import oil in the future and creating fuel from natural energy here will also encourage

new industries. >> german car makers are getting ready to mass produce hydrogen fueled vehicles. that's expected to start in 2015. a land slide in peru has left 11 people dead and more than ten others missing. torrential rain caused a massive land slide wednesday. it swept away over ten houses and a pedestrian bridge in a jungle village. several children are among the dead. military personnel and locals are searching for the missing. the land slide sent large mass of tree and rock debris crashing into houses over a wide area. the government is sending relief supplies including tent and sheets. rescue and recovery is being hampered by further land slides and flooded rivers. some people in southern japan are being affected by a storm in the pacific.

we hear is latest in the world weather forecast. >> rheavy rain was close by. we have reports of 75 millimeters of rain per hour and gusts of 38 kilometers per hour. the good news is that it should weaken by tonight and continues to pull way from japan. the outer rain band produced heavy rain across the pacific edge of the country last night. conditions are starting to clear up and we're expecting sunny weather to continue into the weekend. to the north cooler air comes in. we may see snowmountain region. temperatures are quite chilly for this time of year.

two degrees expected. tokyo had the coolest morning of the season about 12 degrees. we the help of sunshine temperatures should be reaching 21 degrees today. moving into the americas. a powerful storm is still with you over the midwestern states. this storm produced about five tornadoes across mississippi as well as arkansas. tenness conditions are starting to improve and it will be expanding into the north eastern states. flooding is highly likely but behind it very windy across the northern and central plains. a gust of about 140 kilometers, 30 kilometers per hour are likely. that's strong enough to topple trees and cause structure damage. to the north a series of low pressure systems are moving into

british columbia and the pacific northwest bringing wet and windy conditions. the canadian rockies may have seen significant snow showers today. temperatures are looking like this. excessive heat is finally coming to an end in l.a. dropping down into the mid-20s on friday. meanwhile chilly air comes in from the north. only 8 degrees in winnipeg. let's go over to europe. not much schanged since yesterday. three low pressure systems are bringing stormy weather. for the rest of europe mostly dry and temperatures are much warmer. 21 in berlin.

dropping down in the mid teens in madrid and 18 degrees in lisbon friday. up next is your three-day outlook.

our lead story this hour, chinese navy and patrol ships

are said to begin a joints exercise. japan nationalized the islands last month. china and taiwan claim them. china state run news agency says crews from the navy, fishery administration and marine surveillance agency will take part. they will coordinate on 11 ships and eight planes. the exercise is aimed at safeguarding the maritime interest. chinese patrol boats and surveillance ships navigated through the area in the weeks after japan purchased the islands. they will try to recapture a remote island from enemy forces. that's all for this edition of "newsline." stay with us. we'll be back with more of your

updates at the top of the hour.

>> "california's golden coast" is underwritten by the david and lucile packard foundation, who also support the good works done by the following organization. >> i have a ton of respect for the ocean, it's like a friend. so you've got to treat it like a friend or better. think about it: the ocean is a source of power, it gives us food, it gives us life, and a place to play; it makes our weather, and it gives us barrels. >> well, hello everybody, i'm huell howser. you know,