president obama is heading the most significant change in foreign policy in more than 50 years. he has announced his country will soon begin talks on normalizing diplomatic relations are cuba. >> we intend to create more opportunities for the american and cuban people and to get a new chapter in the nations of the americas. >> obama says his government

will set up an embassy in havana and ease restrictions on travel and money transfers and lift the ban on exports. the answer came after cube released an american aide worker. he had been imprisoned for five years. and an american national who had been detained for nearly two decades was also freed. in return, the u.s. freed three cuban intelligence agents. the president praised obama for pushing for a new relationship. >> president obama's decision deserves the respect and acknowledgment of our people. >> castro says many outstanding issues remain unresolved. they include an economic, commercial and financial blueprint. but he says he is optimistic solutions will be found.

the u.s. severed diplomatic ties with cube in 1961 following a socialist revolution that brought fidel castro to power and washington has since been maintaining crippling issues. obama has been work the pakistani military ing to ease them. launched large-scale air strikes against taliban strongholds in the country's northwestern region. the attacks came after militants stormed the school in the city of peshawar killing more than 140 people. most of the victims were students. pakistani military jets carried out ten air strikes, defense officials say they killed 57 extremists, members of the pakistani taliban stormed the military run school on tuesday. the military officers allowed media crews into the school on wednesday. they saw scenes of utter destruction. parents attended mass funerals for their children.

>> translator: he got a bullet right into his chest and another hit his hand. i'm sorry but i can't talk about it anymore. >> prime minister nawaz sharif announced he left lifted moratorium on the death penalty. more than 130 bodies found in eastern syria are believed to be those killed by islamic state militants. a group of activists said on wednesday that the bodies were foubd -- the antigovernment group monitoring the ongoing conflict in the country. the activists said the remains were discovered by -- when they returned to their homes controlled by the militants. released by antigovernment groups shows decaying bodies.

the u.s.-led coalition forces are continuing their air strikes against islamic state. the militants seem to be losing momentum, but they still pose a threat to the region. more information is coming to light about the man who took 17 hostages with a gun at the cafe in sydney. a lawyer says the man sent thousands of letters to australian government leaders demanding they stop sending troops abroad. police stormed the cafe on tuesday shooting to death. the two hostages also died. he was known as a self-styled clerk. he was facing several charges, but had been released from prison on bail. a lawyer who had defended him says he sent the letters after he received the political asylum from iran in 2001. he said he claimed that he was abused by guards in jail because of the letters.

>> the fact is he operated on his own. the fact is, he was not embraced by the islamic community ever. >> tony abbott says he will quickly review how government agencies shared information. >> and we do need to know why he seems to have fallen off our security agency's watch list back in about 2009. >> abbott says the review will cover his entry from iran in 1996 and how he was given permanent residency. he says they'll also examine how the 50-year-old obtained the gun license. abbott says the review will be released by the end of january. people have been gathering at the site to gather for the victims. reports say the cafe's manager was killed while tryi ining to

wrestle a gun away. >> i just said he will be never be forgotten. what they went through was pretty intense. we'll get through this. >> you realize that these things do happen. it's not just something we hear about anymore. it's real for us now. and you lock around and it feels different. >> some of the mourners have come to lay flowers and write messages for the victims. a decision by a european court threatens to further strain relation lgs between israel and parts of europe. they ruled the european youn onshould remove hamas from its terrorist list.

the lawsuit was filed by officials from the islamic fundamentalist group based in gaza. the ruling says an eu decision in 2001 to list hamas was based only on media and internet reports and not on the opinion of experts. israeli prime minister benjamin netanyahu has expressed anger over the move. >> today we witnessed staggering examples of european hypocrisy. >> netanyahu says he's not satisfied with the eu's explanation that removing hamas from the list is a technical matter. he says he wants to see the group back on the list as soon as possible. the eu has two months to decide whether to appeal the ruling. policymakers at the u.s. federal reserve have sat around the table from each other to discuss the economy and released a statement. to the business desk.

>> they choose their words carefully. they know one phrase, one word, can move markets. they introduced new wording this time that they can be patient about a rate hike, but they also maintained what's become a standard phrase for them, which is that they will keep rates low for considerable time. they're indicating they are movinging toward a hike, but they're not saying when. the policymakers ended their two-day meeting on wednesday. they decided in october to end quantitative easing, under which the fed pumped a massive amount of money into the financial markets. since then, investors have focused on when the central bank would raise the spres rate. the statement says economic activity is expanding at a moderate pace and conditions have improved further. policymakers viewed that the plunge in crude oil prices will have a temporary impact on commodity prices. the expression for considerable time, which is used in previous

statements, was not deloeted. a new phrase they can be patient in beginning to normalize the stance of monetary policy hence that the fed has moved closer to raising interest rates. that's because they use similar language in the past before raise i raising rates. in a news conference, janet yellin said the statement used the word patient because it judged that some modification to its guidance is appropriate since the asset purchase program ended in october. she said the fed will not raise the rate until next april at the earliest. >> the committee considers it unlikely to begin the normalization process for at least the next couple of meetings. this assessment of course is data dependent. >> the board members also released their forecast for the future economy and interest rates. 15 of 17 policymakers expect rates to go up sometime next year.

they estimate that rates will be raised more than once at policy board meetings to about 1.125% by the end of next year. investors on wall street took the fed's decision positively and bought stocks. the dow jones industrial average rose more than 300 points at one stage and showed the largest gain this year. the dow closed higher by more than 1.6%, the nasdaq surged more than 2%. market players were relieved that players would keep their rates at near zero for a considerable time. investors hope this will support the u.s. economy. that positive momentum is carrying over to tokyo, the benchmark has gone above 17,000 and that's for the first time since monday. the nikkei currently trading at 17,200. that's a gain of 2.27% from wednesday's close.

analysts say investors are getting back their risk appetite as crude oil prices were relatively stable. currency traders are buying the dollar. they think the fed statements suggest policymakers are moving toward a rate hike. the euro is weaker against the dollar. traders are worried about the situation in greece and russia and looking at other markets in the asia pacific region, we are seeing a positive picture all around south korea's kospi, up a third of a percent. in australia, we're seeing that index up 1.69%. pretty big jump so far this morning. tokyo electric power company says it will keep power rates the same for the next year. as it found it can cut costs r further. the utility sees its earnings falling with the delayed restart of the nuclear power plant in ni gat ta prefecture central japan. they set a goal of cutting about

$3.8 billion of costs in the year ending in march 2015. it has now found that further efforts will allow it to slash costs by a further $2.2 billion. the chairman said the firm has been able to negotiate lower costs for liquefied natural gas. he also said the utility will substantially reduce the length of time that thermal plants are shut down for regular checks. he said his firm lacked the know how to control costs as many factories are able to do. he said he will speed up reforms of the firm. and i'll be back next hour with updates on all of these headlines. i'll leave you with a check on markets.

move from the march 2011 tsunami has begun in the northeast. an evacuation order has been in place there since the accident of the fukushima daiichi nuclear plant. they began clearing an area on wednesday morning. preparations are underway to lift the order on the area. radiation levels there are relatively low.

estimates 5,500 tons of debris needs to be removed. it will be taken to a provisional storage site. >> translator: i hope the debris will be removed as soon as possible so that we can step up our reconstruction efforts. >> translator: we hope the removal will be the first step in reconstruction. and residents can soon return to their homes. >> removal will enable decontamination work to take place and could speed up the area's reconstruction. time now for a check of the weather. heavy snow is still falling in

from a consumer gloup group. they were given the two-hour tour of the plant by officials of the government and power company. they observed the system used to process contaminated water and other facilities. >> i believe the tour helped the experts get a better understanding of the measures that are being taken to prevent contaminated water from leaking. >> the experts will conduct another survey next month. their observations will then be used in compiling a report on whether the marine product ban should be continued or not. people in a northeastern japanese town have found a way to show gratitude for disaster recovery support. their town was one of the places

rebuilt after the earthquake and tsunami and their simple gesture of thanks is having a big impact. >> a small coastal town in japan. when ever this train passes through, the local people gather and wave and greeting. they've been doing this for over a year now to express thanks for the support that has helped them rebuild their lives. >> this is my fourth time. i want people to know. >> hir no lies on the coast of the northern prefecture. the residents are known for their diving skills. the railway line serves as an important link for the local people. but the 2011 tsunami destroyed much of the railway. it took about a year before the

entire line was reopened. the train that gets the red carpet treatment is a special restaurant on wheels. which operates mainly on weekends. even though it doesn't stop, the locals turn out to hoist flags and wave banners. he is one of the people who came up with the idea. he teaches diving techniques at tanechi high school. he's keen to put hirano on the map. waving to the train is is a way to get people to remember the town. >> translator: when the bridges were down and the train stopped, our students found it hard to get to and from school. i'm very grateful for the revival.

>> in november of last year, he and six of his students began greeting the train as it passed. they would check the schedule and then stand by the track. even in the snow or rough weather. a year later, his idea has proved very popular. and many local people turn out. especially school children. it's popular with the tourists, too. >> i was happy to see it. there were children and even old people. >> it was moving to see how delighted they are about their hometown's revival. and it convinced me that there's potential in what people can do for others. >> his students also turn out often, dressed in their diving

gear. >> when the train comes, we're going to wave a flag. do you think we can do that? >> these days, the train slows down as it goes through the town. so that the passengers can wave back. >> i want people to know that hirono is is a great town. i hope we can keep doing this and connect with more people when they see us waving to them. >> now, people are coming from all over japan to ride on this special train. not just to enjoy the food and the view, but to share in the gratitude of the local people. prosecutors in seoul have started to question the women in the center of the so-called -- saga.

the former executive is accused of delaying a flight after falling into a -- she was served. authorities are also looking into whether the airline tried to cover it up. her father is the airline's -- she threw that weight around on a flight after she disliked being served nuts in a bag and not on a plate. she ordered the plane back to the boarding gate and the chief flight attendant removed. prosecutors are trying to determine whether she violated aviation safety law. they're also investigating whether she fiscally assaulted cabin crew. some have accused the airline of trying to cover up the instant. the flight attendant says ko ree yan air officials told him to testify he got off the plane voluntarily. kim jong-un has led the ceremony to mark the end of

three years of mourning for his father. thousands of government and military officials turned out for the memorial. kim jong-un visited the palace of the sun in pyongyang, which houses his father's body. chairman of the procedure of the supreme people's assembly said the late leader laid the foundation for his son's rule. north koreas living in the chinese border city paid their respect. they visited the consulate general building to offer flowers. two senior members of the chinese communist party made condolence visits in beijing. a standing committee member of the political bureau -- is head of the party's international department. china has additionally been north korea's closest ally. relations have cooled since kim jong-un had his uncle executed about a year ago on treason charges. analysts say the visits offer a

sign that ties remain friendly. chinese foreign ministry spokesperson says his country regrets the loss of kim jong-il. he success says the late leader made significant contributions to creating friendly ties between the two nations. time if r a check of the weather. heavy snow is still falling in many areas of japan. here's robert speta with the details. >> the storm system is still rolling across japan. the low pressure center is off towards the northeast, but you still have those strong northwesterly winds wrapping across the sea of japan and it's turning on the snow effect machine again. the totals with this system, upwards of 196 sent meres there. toward the east, winds of around 117 kilometers per hour.

in hokkaido, 126 kilometers per hour. on thursday, on wednesday -- let's go to some video we have coming out of hokkaido where just take a look at this. this is what we have been seeing out there. a large wind, about 8 to 9 meters high near the kocoastal areas. we also see the heavy snowfall in some areas, 80, 90 centime r centimeters there in the north. now, meanwhile into nagoya, we had about 20 centimeters of snow here. this is on the pacific coast of japan and thursday morning. man was also found unconscious on a snow covered road. veinvestigators believe he fell off a motorbike there. we are seeing the threat of snowfall in nagoya, but let's talk about the storm system now. you have those winds coming in from the northwest. some areas, 80 secentimeters of

accumulation. plus, you're looking at those very high waves. snowstorm warnings in effect across much of northern japan back on wednesday, the japan agency issued these -- days over here on thursday. max snow totals as i mentioned, 80 centers, but elsewhere, nagoya, 40 centers could occur. back towards the west extending back down towards hiroshima. just off the coastline, a port city, very high waves and collision between a cargo ship and fishing vessel. this is a far reaching storm. that we are still looking at, still very dangerous, but as we look ahead to friday, the snow should be tapering off. tokyo, you're not going to see anymore precipitation at least

until the weekend. but that snow will make for some powdery conditions for skiers if you're heading out into saturday and sunday. let's talk about the temperatures though into northeastern china. minus 17 there for the high in harbin. your lows around minus 30. staying on the absolutely frigid side. now towards the americas, another low pressure area pushing onshore across california. you need the rain here, but in some areas, you're getting about 40 millimeters per hour. that's causing flooding. we have some video, this is coming out of the los angeles area into anaheim hills where the heavy rainfall blocked traffic here on a freeway on wednesday. hundreds of cars were stuck bumper to bumper traffic as crews worked to clear this flood. this early winter storm swept through california with heavy rain over the past several weeks. it is putting a dent in the drought, but i'm sure commuters

there are not happy about that and still, you have a long ways to go to really fully recover from this drought that has ongoing. another storm pushing through texas and oklahoma. that's making for significant travel delays in and out of dallas and houston. that's foik to make its way toward the northeast. winnipeg, minus 11, staying on the frigid side.

and that concludes this edition of "newsline." on behalf of our team, thank you for staying with us.

♪ this edition of asian voices comes to you from china, one of the most serious problems facing the country today is environmental pollution. thick, white, haze shrouding beijing. increase asking emissions from vehicles and factories are making air pollution worse in china.