>> welcome to "newsline it's thursday august 2nd. i'm catherine kobayashi in tokyo. leanne panetta has asked israeli leaders to be patient over iran. sanctions have failed to persuade them to change course on their nuclear program and they warn a time for a peaceful

solution is running out. he met with the israeli defense minister. he insists that u.s. and european sanctions are having an impact on iran a all non-military measures should be exhausted before turning to a military option. he told benjamin netanyahu they are committed to resolving iran's nuclear issue. >> we will not allow them to develop a nuclear weapon. and we will exert all options in the effort to ensure that that does not happen. >> netanyahu said that sanctions have hurt iran's economy but have not had an impact on t nuear perhaps. syria's president says his government's battle against rebels will determine the country's face. it's the first official statement since a bomb in

damascus last month killed some of his senior government officials. assad's whereabouts are unknown. he issued the statement in a military magazine on wednesday. the founding day of the syrian army. he said the rebels are terrorists plotting the country's fall. fierce fighting continues in the city. u.n. observers have confirmed the military is using war planes to fire on the rebels and the opposition has tanks and heavy weapons. the violence is worsening. veteran video shows the free syria army executing fighters. workers at a brand-name japanese television maker will rather working at one just isn't what it used to be. what is the latest you are hearing?

>> as you know, televisions just don't sell like they used to. many companies are in the red because of this and they have to make drastic changes to make up for the losses. japan's sharp corporation is to lay off as many as 5,000 employees by next march. it will be the first job cuts there in 62 years. sharp is cutting the global work force to 52,000 through a volunteer early retirement program. sharp had record losses due to the dimming performance of the liquid crystal display and television business. the company die tied up with hon hai precision industries as part of efforts to claw its way back. others are struggling. sony will cut its work force by about 10,000. panasonic may trim 7,000 from its domestic work force.

u.s. central bank policymakers will maintain the current moll tear policy as the american economy is showing signs of a slow down. the federal reserve issued a statement after its two-day policy meeting keeping short-term interest rates at low levels until late 2014. that is at between 0 and 1/4 percent. the economic recovery has slowed slightly with weaker growth in jobs and consumer spending. it warns that credit fears in europe are posing significant risks to the u.s. economy. it says that economic recovery will be at a moderate pace for the time being. the statement says the fed will take further steps if economic indicators show the need for action. for analysis on the decision we spoke with the senior market economist at ufj. he says the u.s. central bank

showed a strong will to take further action and notes the possibility of holding an emergency meeting if necessary. >> rorter: the biggest change is that they are saying the economy [ indiscernible ] it is surprising because usually central bank has optimistic view even if they fear the economy is not so strong. but this time, they clearly said they have a strong will to move another easing. another important point of the statement. they are saying that the monitor that means they have a strong will even if they would not have a regular meeting. >> suzuki says the fed's next step is most likely a third round of quantitative easing. >> further action probably it

will be a so-called qe3 they will purchase securities, including agency bonds. so we are seeing some very low interest rate in the u.s. treasuries. consequently they will move to another securities, probably it will be [ indiscernible ]. >> suzuki points out the last chance for the fed to take action could be september since the u.s. presidential election is scheduled in november. >> today, we had ism manufacturing number which records below 50. so now u.s. economy is on the brink of -- edge of recession, election day is 6 of november. and this tight schedule i think that september is the most likely adapt new policy.

>> as for markets the dow, the s and p and the nasdaq all ended lower as the federal reserve kept policy and rates unchanged. ism manufacturing data put a drag on markets. let's he how the exchanges are trading in japan. we are getting more data swing slowing growth. how are stocks here reacting? >> yes, indeed. and the fear is that the fed kept things unchanged and upcoming data could show slow growth. a lot of focus on the u.s. jobs numbers on friday. and all eyes on whether the fed has been correct to stand and leave things unchanged as we've also heard a lot of economists and analysts focusing on if it does. if it has to make an emergency mover a move i september. but let's see how it is playing

here. the nikkei and the topix trading marginally higher. yesterday they ended lower following the manufacturing pmi. with slow growth in the u.s., china and the imf coming out and saying that the europe debt crisis is weighing on japan's economic outlook it is not looking rosie for investors. and added to that we have the earnings results from jan fm last weeknd ctinug thi week a well. the banking sector, for instance in the nikkei's 11% drop. the tech sector getting caught up in lower and falling chip prices and also we've heard from the steel industry, also affected by slow growth in china as well as heavy industry and construction machinery stocks as well. not mention the stronger yen which has been hurting profitability for a lot of japanese companies.

let's look at the levels for this ursday. the dollar/yen, 78.39 to 41. euro/yen, 95.89 to 90. the euro trading in a narrow range ahead of the meeting of the central bank today. >> july auto sales came out in the united states. how did the japanese out firms do there and what is on the earnings front today? >> the numbers come out in the first week every month. and the numbers are looking good. we did see some of the three major auto manufacturers showi gains. toyota up 26% from last year. handa up 45% and nissan up 16%. automakers moving to regain the market share from the march 11th disaster last year. sales at general motors fell by 6.4% and ford, 3.8%. later today we will have numbers

from sony and sharp. you mentioned they were forced to make job cuts. that will be interesting. renaissance electronics. t also a lot of eyes on the european central bank meeting and see if they take measures to boost growth in europe. >> both the nikkei and the topix in positive territories. look at how other markets in the asia patchy f asia pacific are opening.

survivors of the atomic bombs in hiroshima and nagasaki often say they're afraid the world will forget. now the united nations has published some of their stories, subtitled in eleven languages. the oine project was organized after the u.n.ecretary general called for preserving their testimonies for younger generations. the project website features 12 people now living in the americas. they're stories are subtitled in english, spanish, arabic, chinese and other languages. this man, a resident of sao paulo says only those who saw the devastation after the bombings can really understand the evil of atomic weapons. >> translator: there are no a-bomb survivors around me because i'm now 90 years old. but i feel the need to tell my story to young people so that future generations will not forget. >> u.n. officials in charge of the project say they hope it

will help create a world free of nuclear weapons. many in japan are unhappy that nobody has been held criminally responsible for last year's fukushima nuclear accident. now, japanese prosecutors say they'll investigate the accident as a possible crime. the move is in response to criminal complaints filed by about 1,300 people demanding a probe into top nuclear and government officials. representatives from the group held a press conference in tokyo after prosecutors officially decided to open the case. >> translator: i hope the probe goes well so that people will be compensated for their suffering caused by the accident. >> that decision could open officials in the government and tokyo electric power company to charges of professional negligence resulting in death or injury. but the prosecutors will first have to idtify t cause of the accident.

government and civil probes have failed to do so. medical experts say it will also be difficult to determine if radioactive material released during the nuclear crisis harmed residents in fukushima or elsewhere. myanmar will create an economic zone near yangon. th special enomic ze is slated for development near the country's commercial capital. japan is expected to win the deal and beat out rivals from other countries. the myanmar president met with the senior member of the japan ruling democratic party. the president agreed to award the right to develop the special economic zone to a joint consortium of entities. the signing ceremony should take

place this month. the planned economic zone would cover 2,400 hectares making it one of the biggest industrial parks in the world. chinese and south korean corporations were bidding aggressively. but japan appears to have won the deal. the special economic zone will invite corporations to set up there before 2015 when some factories are scheduled to start operations. in the meantime the japanese government will build port, roads and other structures. the asian develop bank has moved into a new office in yangon. they held a ceremony on wednesday in their first step to returning to the country. both shut up shop in the decades of military dictator ship. pamela cox is pledging 85

million dollars in grants. >> and we are here to say that the world bank is back to reengage with the country, with the government, but most importantly with the citizens of this country to help them have a better life in the future. >> but but the institutions are not ready to start business left. u.s. sanctions will have to be lifted first and they have to resolve the matter of an overdue loan payment amounting to nearly $900 million. the banks will work together a solve both issues and make a detailed examiti of the aid myanmar needs. quarter of the country's 60 million people are estimated to be living below the poverty line. china rejected criticism by japan of defense activities.

the criticism appeared in japan's 2012 "white paper on defense" released on tuesday. the annual "white paper" says china's defense budget has increased about 30 times over the past 24 years. it also expressed concern over china's expanding maritime activities. in statement issued on tuesday, chinese foreign ministry spokesperson hong lei said that japan is criticizing china's normal national defense development and military activities. hong said china is deeply dissatisfied with japan's defense report and launched a protest with the country. he added that in recent years, japan has expanded its military power and strengthened alliances with other countries, using various excuses. the parents of a japanese girl kidnapped by north korean agents are keeping the issue of her disappearance alive by sponsoring an exhibition of her longings in tokyo. megumi yokota was 13 years old in 1977 when she was kidnapped

and taken to north korea. she had been walking home from school on the sea of japan coast. the exhibition at a tokyo department store opened one month before the tenth anniversary since north korea admitted it kidnapped megumi and other japanese nationals. six of megumi's belongings are on show, including a ballet outfit and a light kimono sewn by her mother the year she disappeared. >> translator: negotiations on the abduction issue between japan and north korea have stalled. i want the japanese government to reopen the dialogue so the abductees can return home as soon as possible. >> north korea is estimated to have abducted at least 17 people from japan to train its agents in japanese language and culture. in 2002, the north allowed five abductees to go home. but there have been no

developments since then. for anxious parents like the yokotas, time is running out. summers in tokyo are about three degrees hotter than they were a century ago. many residents of the capital cope by cranking up the air nditior. but in the post fukushima daiichi days the government is encouraging people to save energy. some are looking to the past for inspiration or picking up on a new age trend. >> reporter: akiko suzuki has been living in a river front home for 60 years. it didn't come with an air conditioner or a fan. but her summers have always been quite cool.

>> translator: i haven't turned on the ac once this year because i haven't felt the need to do so. >> reporter: suzuki instead uses simple seasonal japanese methods to keep her home at a comfortable temperature. she plants morning glory flowers outside her window and hangs bamboo blinds which create shade without blocking the breeze. more than 70% of a home's heat comes through the windows. suzuki's blinds and plants block almost half of that. suzuki also grows greenery at the entrance of her home. but she doesn't just water the plants, she also pours water straight on to the ground. the japanese cooling method dates back hundreds of years.

she says everything makes a difference. >> translator: it lowers the temperature two to three degrees and lately in the 30s. so three degrees makes a big difference. >> reporter: suzuki's not e only one adopting these ancient customs. home improve stores in japan have seen a jump in sales of traditional cooling products. >> translator: our customers want to conserve energy. so they think how can we do that? many are rediscovering old techniques. >> reporter: some are looking at history for ideas on how to stay cool and save energy. but apartment dwellers are looking ahead. they are picking up on a new idea that is quickly turning into a trend. garden designer theodore jennings has taken outdoor greening to the next level. veranda remodeling is a growing

trend in apartment-saturated cities. >> i'm taking a little bit of new york and europe and other parts of the world with the outdoor living culture and bring it to japan and educate that is it a good thing to live outside on your veranda. >> reporter: originally the main focus of his business was design. after the accident at fukushima daiichi triggered energy shortages he started thinking about conservation. that caught this woman's attention. this is what her veranda looked like last summer. but after a little sprucing up -- it now looks like this. equipped with a wooden deck, small planters and an outdoor dining area. the idea is the same as

traditional japanese methods. the deck absorbs much less heat than the bare concrete and watering the plants cools down the space decreasing the need for air-conditioning. he says he is not only seeing a difference in his electricity bills he has a newfound appreciation for the outdoors. >> translator: before, i didn't even want to be near my veranda. but now, i try to spend time out here, any chance i get. >> reporter: whether it's sprucing up your home with a total makeover or relying on ancient methods both have found what works for them. energy saving outdoor solutions to keep them cool indoors. there is a powfu storm

reinnavgaiwan andeoe in surrounding areas are feeling the effects of this storm. rachel ferguson gives us the latest. >> the storm is impacting taiwan right now. this is typhoon saola. this is a strong typhoon as well. it impacted northern parts of the philippines earlier in the week and led to widespread flooding here and the displacement of thousands of people. and now it is affecting oer okinawa. waves getting up to about 11 meters and reports of gusts up to 163 kilometers an hour. as for taiwan, the rain is really doing some damage. in the last three days, since monday, northern taiwan has received more than 1.5 meters of rainfall and expecting 500

millimeters in the next 24 hours. that is totaling up to 2 meters. widespread flooding has occurred already. we showed you video yesterday. in the next 24 hours it will be critical. after leaving taiwan, the storm is heading in to china bringing heavy rain. north of that you will notice a band heavy rain heading into northeast china from damrey. damrey is a severe tropical storm. yesterday it came close to the southern tip andt is heading to theellow sea. it will be making landfall at around the same time as the storm to the south is making landfall in the eastern coast of china also. so that is going to be from thursdays intoriday night, local time. so in the next 12 hours -- 12 to

36 hours we're talking about. at the moment it's moving 35 kilometers an hour. and the wind gusts are up over 120 kilometers an hour. as the system moves in it will bring significant rainfall into the places that -- the regions i just mentioned. but the other place that is getting heavy rainfall is north korea. you will remember that north korea has been hit by heavy rainfall, episodes of heavy rainfall for the last three weeks leading to deadly flooding. as you can see the pink popping up toward the northwest of the country. that will be unwelcome rainfall and we'll keep you updated with the ogress. i need to tell you we have tropical depression that formed just east of the islands. that is the same place that damrey started out. it could follow the same path. we'll keep an eye on it for

signs of intensification. and much of japan is under a summer high pressure system. some temperatures in the upper 30s. 37 in some places today. let's look at europe. i think youill want to focus on this big system over the atlanta that looks ready to move in across the british isles. the rest of the continent is looking dry and settled. but showers in much of the british isles. the heaviest of the rain falling toward the north. in terms of your olympic weather, nothing too extreme in the next three days, 20 degrees, cloudy skies and a good deal of sunshine into your friday. i'll leave you now with your extended forecast.

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