-- captions by vitac -- www.vitac.com hello there and welcome to "newsline." it's tuesday, june 30th. i'm katherine kobayashi in tokyo. the greek prime minister says it would be difficult for his country to repay his debt to the international monetary fund before the tuesday deadline. the country needs to repay the imf $1.8 million. he said reaching a feasible agreement with creditors is the only way to repay the debt, otherwise, greece won't be able to repay the loan. nations decided not to extend the bond beyond tuesday's date. government officials plan to

hold a referendum on sunday. he says he will respect the outcome if greeks want to go with the plan. the european president called on the greek people to vote yes on the terms. >> i know the greek people don't want to let down the european union. greece is a member greece is a member of european family. >> he criticized the greek government for breaking off negotiations. he said its maximum concession did not include cuts in pension payments and salaries for public servants. >> officials said the door is still open for talks. germany's leader has down played the effects of greece's debt crisis. the chancellor said it situation would only have a limited impact on europe. >> translator: we see today that europe is more robust to respond

to such a situation. >> merkel noted the euro zone has introduced a way to bail out countries in financial crises. she also criticized greek leaders for their failure to compromise. merkel said they wanted financial aid but were unwilling to accept the reforms needed to receive it. much offered an olive branch. she said if the greece economic troubles were revealed during the global financial crisis. what are the details the international creditors have unveiled. can you walk us through them? >> sure, the creditors are urging the greeks for a primary budget surplus. they say the country should raise the budget target to 3.5% of the gross domestic product in 2018 to achieve spending cuts. the creditors are proposing a drastic reform of greece's

pension system the country's pensions are the highest among eu countries as a percentage of gdp. the propels call for a reviewretirement system for public servants many retire in their early 50s. their should raise it in stages to 67 by the year 2022. they are calling for an increase in how much pensioners pay. the creditors are urging greece to raise the value at tax and narrow the scope of areas where reduced tax rates apply and suggest that the country do away with the reduced rates, then apply on the islands. they are also pressing greece to overhaul the taxation system to prevent tax evasion and fraud. well, let's see how much greek government owes the creditors. officials have to make huge payments every month. at the end of the march, the outstanding debt came to 313

billion euros, that's about $350 billion. that breaks down to for than $23 billion to the international monetary fund over $30 billion to the european central bank and about $206 billion to the european union. greek officials will also have to redeem various other bonds and pay interest. a payment of more than $1.7 billion to the imf falls due tuesday with another $500 million in less than two weeks. on top of that the government needs to pay the wages and pensions of public workers at the end of every month. well global stock markets tumbled as greece teeters on the edge of default. 3.6% lost and 3.7% and london fell almost 2%. the dow jones industrial average

sank to a five-month low, fell 2%, which was the largest one-day decline in more than two years. the tech heavy nasdaq lasting 2.4%. to see how markets are reacting we're joined by ramine. what are you seeing. >> the markets are rattled and we've seen that from the european and u.s. markets. let's look how tokyo markets are reacting and kicking off on the final trading day of the month, june 30th. the nikkei and topix ended positively now. the dent the market sentiment, just a quick reminder, the nikkei down 2. 9%. seeing a bounce now but we'll see how that progresses. equity markets hostage to advance that greece but if you look at the currency in bond markets, they actually held

steady. a little surprise there. the eros dipped against a basket of currencies and rebounded against the dollar. analysts say a timely move by the swiss national bank to buy euros against the swiss frank helped. the dollar slipped against the yen, traders buying the japanese currency. u.s. jobs data on thursday will be a big guide for the dollars, of course. european bonds relatively steady, as i said although yields on the greek bonds soared. analysts say the massive quantity of easing measures already in place by the european central bank has helped and that means bond markets are a little steadier than a few years ago. we also saw safe haven buying of u.s. and german bonds, which explains the lower yields. >> so greece may be at the forefront but global investors haven't forgotten about china, how is that looking? >> well that's another really

big story for global markets. the people's bank of china cut rates to record lows over the weekend, which did cause the composite to open 2% higher on monday but went through wild swings yet again falling 7% and then climbing a touch to end still down 3.3%. it's lowest finish in 2.5 weeks. shanghai composite has fallen 20% from its june 12th highs and according to analysts, it's wiped off close to 1. $2 trillion from the value of the composite index. with the markets still in the state of flux or confusion over greece and of course the unsettling china markets to look forward to and the u.s. jobs data, it's a lot for investors to weigh and measure. so it's going to be an eventful week and just we're on tuesday now so quite a few days left back to you. >> absolutely. we'll touch base with you in a few hours.

thanks for that report. officials from 57 nations gathered in beijing for the inauguration of the china-led asian investment bank on monday. the bank is expected to start operating by the end of this year. delegates from 50 founding member nations signed the articles of agreement but seven countries, including the philippines and thailand on stained from signing. aaib will be capitalized at $100 million. china holds 30% followed by india, russia and germany. on the bank's board, beijing will have a voting right of more than 25%. this will effectively give the country veto power over the bank's key decisions. chinese officials say the 12 directors will be non-resident based outside the headquarters. the united states and japan have not applied to join the bank saying it's governance lacks transparency. we spoke with project professor

at the university of tokyo policy former dean of development bank institute concerned about the strength within the bank and thinks this will increase uncertainty and as an example, he cites decision of thailand not signing the document on monday. >> they are concerned about excessive presence of china in running the aaib or perhaps because of the lack of transparency in aaib operations or because of china's very aggressive behavior in the south china sea issue, maybe a combination of these or some countries may feel that they may not get enough infrastructure

financing for their countries, a combination of these issues may have led those countries not to sign the articles of agreement. >> he emphasizes the need for china to resolve such concerns if the aaib is to become an international institution. >> china needs to change and china needs to put the economic benefits for others first rather than economic benefit for china first. so it's going to be big challenge, especially china has to provide international public goods through aaib rather than trying to pursue its own selfish economic and political objectives. it's not going to be easy. it's going to be i think, difficult but this is something

china wants to embark on and hopefully china can be successful. being outsiders, japan and united states should make every effort to make sure that the aaib would become good international financial institution, one of the ways of doing so would be encourage, would be to encourage aaib to work with other international financial institutions like the world bank, adb and the european bank for reconstruction and european development. by working with these other institutions aaib can absorb good ideas from these institutions. the aaib can learn from these

institutions. that would positively contribute to aaib. >> that's the latest in business for this hour. tokyo markets trading higher this morning. i'll leave you with a check on markets. a senior japanese diplomat suggested the leaders of japan and south korea may meet later this year for the first summit talks. deputy foreign minister made the remarks on monday as he addressed an audience in tokyo. he referred to the japanese and south korean ministers. they agreed to talks later this

year. he said holding talks in july or august would be difficult but said it's possible leaders will meet in the fall. he said japan's prime minister and south korea's president may hold the first talks on the sidelines. he also suggested that he could hold talks with abe if she attends talks. there hasn't been a summit since taking office in 2013. buy lat by lateral relations have been strained. prime minister is stressing his liberal democratic party restricts freedom of expression. he addressed controversy sparked by remarks at a gathering of lawmakers. he discussed the matter on monday with secretary manager. he told abe the party removed the organizer of the meeting from his post. in the remarks in question one

lawmaker said the best way to punish media is to take away their advertising revenue. another blamed newspapers in prefecture to distort public opinion. officials are urging the central government to lesson the burden of hosting most of the u.s. facilities in japan. abe said it's extremely regrettable there are remarks that go against the feelings of residents. he said freedom of expression is the foundation of democracy and members must show they respect it. the block is critical of how he handled the issue. >> >> translator: the biggest problem is prime minister abe the ldp leader is very insensitive to this issue. we'll be closely watching to see

what he says and does. >> translator: people in the mainland don't know what okinwa has experienced. that shows they don't know anything. >> he suggestignificant he suggested a plan to relocate the prefecture. international delegates negotiating iran's nuclear program are facing a looming deadline. they are in talks and scheduled to coal come to a final agreement on tuesday. the ministers of six major powers have been at the negotiation table since sunday. iranian former minister has returned to tehran. he's expected to return after getting instructions from the iranian leadership. one of the sticking points of negotiations is the proposed inspections of military sites where nuclear development

programs could be underway. u.s. secretary of state john kerry discussed the talks with nuclear watchdog chief on monday. kerry said that hopeful for the outcome of the talks but all parties face difficult issues. tiawanese authorities say a fire at an outdoor concert on sunday climbed a victim. there was a 21-year-old woman with severe burns. it happened at a venue outside of taipei. 400 people are being treated at hospitals. local media report the woman who died suffered burns to 90% of her body. large amounts of colored powder sprayed may have come busted after being set off by sparks. investigators are examining the site to pinpoint the cause and questioning the event organizers to see if they followed proper

safety measures. egypt's top prosecutor has been killed by a car bomb. nine people including police officers were injured. authorities suspect islamic extremists are behind the attack. the prime minister was traveling by car in cairo. a bomb and parked vehicle was detonated by remote control and damaged several cars in the convoy. he was taken to a hospital where he was pronounced dead. islamic militants have been targeting the military and police since the ousting of the president. tuesday marks the second anniversary of the major anti morsi rally that led to the defactor military coup. the military killed the high-profile leader of a rebel group on the southern island

fighting the mpa for more than four decades. at least 30,000 people died during one of the longest running insurgencyiesinsurgencies. army special forces killed mpa commander leonardo pa tall. the nba issest hated to have less than 4,000 fighters. the group used extortion to raise money. peace talks resumed after talking office in 2010 but negotiations failed in 2013 when the group refused to call a seize fire. the military says patel was a figure head and his death will be a significant loss to the rebels. the mpa's long campaign worsened in stability and disrupted development in some of the poorest parts of the philippines.

people in many south pacific islands are facing a big problem. last year, a world health organization survey found as many as one in two people is reported to be obese. we report on this where steps are being taken to counter this problem. >> in the pacific islands, being overweight has long been a symbol of wealth and prestige. so up to now, few people have been worried about a growing problem of obesity. over the past 40 years, people have moved towards cheap, high fat processed food such as canned corn beef instead of traditional staples. the kingdom of tonga has a population of about 100,000. the changes in diet are having a big impact on children there. this boy is 6.

his after school snack is his favorite food. grilled chicken. he weighs 44 kilograms. that's about twice the world average for 6-year-olds. he doesn't like sports and spends most of his time at home watching tv. >> translator: he likes to eat chicken, but he won't eat vegetables. at least i've been able to feed him smaller portions. >> the number of people suffering from diabetes have doubled in tonga in the past 40 years. this doctor examines about 50 diabetic patients every week.

>> the age is getting younger. younger and younger. there's no limit for the disease itself. when i was in high school -- in med school, it was known as the old people disease. >> the cost of health care system is huge. because of this, the government is aiming to cut the obesity rate by 2020 to the lowest of all the pacific island nations. to deal with obesity, the government are trying to promote healthy lifestyle by eating plenty of vegetables. officials from the ministry of agriculture are being sent to women's association meeting to promote a diet based on vegetables. they are teaching housewives how to cook dishes using vegetables. today, the menu is vegetable stew containing plenty of carrots and onions.

local farmers are setting up a food education program for children too. every week, they visit schools to talk about vegetables. they emphasize the importance of balanced diet. on the day of their weekly food education class, the children must bring some vegetables or fruits in their lunchboxes. >> before we didn't see them provide any vegetables or fruits. we really enjoyed. and this is increasing the sickness of people. >> obesity and diabetes, the people of tonga are starting to face up to a problem caused by their eating habits and lifestyle by introducing more

vegetables to their diet. nhk world, tonga. it's time now for a check of the weather. people in western europe are doing what they can to stay cool. they are dealing with a severe heat wave. robert joins us with the latest. >> well, we have been seeing out here is just this area of high pressure which has been dominating and producing the sunny skies. definitely could be very dangerous out here if people do not stay hydrated and do their part to stay cool. wear light-colored clothing. and definitely try to stay indoors inside some air-conditioning out here. what we're talking about here is this area of high pressure. we have a low back towards the west. that is pumping in these southerly winds out of northwestern africa. so it is definitely going to be hot and above average over the next several days. this is coming out of spain where the heat has definitely continued to climb out here. temperatures well above 40

degrees. actually one city there in spain upwards of 44 degrees on sunday. well above the average. actually near record-breaking in some of these areas. highest heat warning has been issued out here for 40 provinces in spain. also several provinces in portugal as well. see people trying to keep cool in the fountains there. also the threat of forest fires. also the risk of heatstroke and heat exhaustion. it's not just going over towards france as well. temperatures have been pushing to some of the levels where it's the hottest in three years out here. take a look at the three-day forecast for some of you. into the 30s and 40s. this is something i do want to note as well. this does not take in effect the humidity out here. so the heat index, the real-feel temperatures could be well into the 40s for some of you. even over towards the north, wimbledon going on here. some of the hottest temperatures on record for the tennis match there.

so something to keep in mind if you are out there, especially for the athletes. that's all in the west. we have that ridge. back towards the east, it is much cooler. actually looking at the risk for rain showers and thunderstorms for some of you. see what's going on in the americas as well. in the southwestern u.s., it has been exceptionally hot. we have high pressure continuing to dominate. but some of you have been looking at record-breaking temperatures. i'll get back on that in a second. we have a low back here towards the east. this is bringing us some severe thunderstorms. we do have tornado watches and severe thunderstorm watches in effect extending through the ohio river valley. it is going to shift towards the east as we go ahead into wednesday. the tornado threat will go away, but we still have that risk of some large hail and damaging winds coming out of this. if you are traveling towards the

northeastern u.s., something to keep in mind. could be delays as we look ahead. that high pressure ridge still dominating bringing that risk of wildfires into parts of washington. actually, in washington state, record-breaking temperature for the month of june. take a look at your three-day forecast into fresno, 41 degrees there. upwards of 40 degrees in sacramento. salt lake city, into the high 30s. do want to wrap up here into eastern asia, actually talk about japan as well. heavy rainfall. look at that. 391 millimeters in the past 24 hours. some areas still could see an additional 200 millimeters. definitely the threat of flooding and landslides out here. something to keep in mind ahead through the next several days. that's a look at world weather. i'll leave you now with your extended outlook.

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

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