welcome to "newsline." it's tuesday, july 2nd. i'm catherine kobayashi in tokyo. the man who gathered secrets is reportedly reaching out to another nation for help. russian media said edward snowden applied for political

asylum in russia. the security agency contractor asked ecuador for asylum. he revealed that nsa agents collect internet data at home and abroad. authorities charged him with espionage and asked russia to extradite him. hooey is believed to be staying in the transit area of a moscow airport. snowden can stay in russia if he promises to stop leaking information. >> translator: if he wants to stay in russia, there is one condition. he must stop his activities aimed at inflicting damage onnure on american partners. >> the latest reports based on snowden's revelations put more heat on the u.s. government. they said agents spied on allies around the world. jackie aishikawa has details.

>> at the national agency, they have devices in washington and new york. they say agents have meetings among eu officials. they cited a secret document leaked by snowden. the article said nsa workers hacked into computer networks to interset documents and e-mails. eu leaders responded with strong words. >> i am shocked at the case if it is true. i feel that as a representative of an institution like an enemy. >> the report also describes a u.s. pipe in germany. the operation is as comprehensive as the ones in

china. u.s. agents monitored about 500 phone calls and e-mails every month. german prosecutors have launched an investigation. the document leaked by snowden points to spying to other u.s. allies. a report that the guardian said the u.s. had surveillance systems in 38 embassies and offices in washington and new york. that includes france, mexico, south korea and japan. japan's chief cabinet secretary said his government will ask the u.s. to confirm whether the report is true or not. >> yee are not sure about the alleged report. we would like to seek information through diplomatic channels. >> u.s. intelligence officials released a statement saying they will respond to the complaints

from eu politicians through appropriate diplomatic channels. they said security agencies go about collecting information just like others do. one person has come out in support of snowden is the founder of wikileaks. assange calls the whistle blower a hoero. >> great care has been taken to make sure mr. snowden can't be pressured by any state. >> are snowden is believed to be in the transit area of the moscow rarpt. his revelations are affecting diplomacy around the world. nhk world. >> u.s. president barack obama is trying to reassure allies and play down the significance of snowden's revelations.

obama said he is ordered to analyze claims at the security agency bugged embassies in washington. uggeheedha spying on other nations was nothing unusual. >> wherever there is a service, here's one thing they will be doing. they will try to understand the world better from sources that are not available through the "new york times" or nbc news. >> obama said the u.s. never does anything that would betray european leaders. . >> egyptian military commanders are vowing to use power to end the term that has taken hold of their country. they have given morsi and opponents a deadline to work out differences. the top general said in an emergency statement they will intervene if both sides fail to resolve the situation by wednesday afternoon. they have no intention of seizing power.

>> one million protesters rallied nationwide. tens of thousands continue to demonstrate on monday. that's at the headquarters of the power base, the muslim mother road. they hoped fire on protesters. people died in the violence. he is the first democratically elected president. many applaud the military's ultimatum. >> we welcome the military's decision. the military is with us. we suffered for 30 years under the mubarak administration, but morsi's government is also bad. >> the state run tv reports he was holding talks with his defense minster and other officials.

the top diplomat from the united states report the asia specific will be one of the main priorities. john kerry has pledged to strengthen u.s. 1r68meinvolveme. from the soerngz of southeast asian nations at the conference. some members have criticized china for increasing activities in the south china sea. kerry said the u.s. has a national interest in maintaining freedom of navigation and international law. >> as a pacific nation, we take our supports and partnerships seriously and we continue to build an active and enduring presence in every respect. >> kerry met with his counterparts from japan and south korea to get over the united approach on north korea. they will say they will work to

push authorities to stop developing nuclear weapons. kerry sat down with foreign minster and south korean foreign minster. >> this is the right time for representatives of the three countries to exchange opinions over north korean issues. >> he called the meeting significant. it's the first of its kind since they elected new governments and president obama entered his second term. kerry said the three nations have been coordinating responses to the north's provocations. north korean leaders indicated that they are willing to restart talks on the program. the minsters agreed the country must abide by the resolutions and,a band on the nuclear development. >> they also held on one talks with south korea.

they agreed to try to improve relations between the countries. tied remain strained over a dispute and other issues. >> japan and south korea are important partners. they share fundamental values. >> the administration wants to work firstly with japan to ensure the stable development with bilateral ties. >> the 30-minute meeting was the first between foreign minsters since the japanese prime minister took office. relations soured over historical issues. japan and south korea are at oughts over islands. south korea controls them, but japan claims them as territory.

they canceled a trip to tokyo after members of the japanese cabinet finished. the shrine honors j including leaders convicted of war crimes afterworld war 2. they handle matters pertaining to history with the utmost care. they explain how the cabinet used the issues and hoped the south korean government will better understand japan's position. >> tens of thens of people marched through hong kong's streets to honor promises of universal sufferage. activists organized the march on the 16th anniversary of hong kong's aversion to the rule. they used the flag when the territory was british. they protested against chinese officials who said they would screen the cabinets. >> what we want is true

democracy in hong kong in affordance with the law. >> the chief executive said it's key to work towards sufferage. they praised china for the preferential treatment that allowed the continue developments of hong kong. # >> people in the united kingdom of curious. they wonder if the governor will do a better job than his predecessor.

now with more on that. good morning. tell us about him. >> he is no stranger for central bank, but he is not from the region. he is from canada. that makes mark carney the first foreigner to be governor of the bank of england. carney assumed the position after resigning as canadian bank central chief last month. they the, cone ceconomy. that's despite massive credit using and expansion of loans under carney's predecessor. carney will attend his first policy meeting on thursday. the focus is on how he will get the british econ mow and stabilize prices. >> u.s. stock prices rose on monday as investors were encouraged by strong data on manufacturing activity and construction spending. the dow jones begined about 4

sla -- gained about 4/10 of 1%. we go to the tokyo stock exchange. the tock markets managed to kickoff the second half of the year on a positive note. how are things looking like this morning? >> good morning. the opening levels for july 2nd is tuesday and looks like this. the nikkei is up 0.9%. very near the 14,000 level of the closing at the highest in about a month. the broader topix is also higher by 0.86%. it seems that investors are really encouraged by the economic data in the u.s. the institute for supply management shows a reading of 50.9 for manufacturing activity in the u.s., beating market estimates. construction spending in may improved from the previous

month. analysts expect many investors to be unwilling to make an aggressive trade ahead of the u.s. job report on friday. the u.s. market will be closed on thursday following shorter trading hours the previous day. market places may be cautious given the concerns about the economic growth in china. that's after the manufacturing data on monday. look at the dollar-yen. the dollar is at 99.56-57 against the yen. it was approaching the 100 level which has not been touched since early june. the dollar is strong again the yen and they have the only luck for the economy improving. a lot of focus is still on the upcoming job reports to get more clues on when the u.s. federal

reserve will monitor the program. let's have a look at euro-yen. the euro is stronger against the yen at 130.03-08. they are boosted by the eurozone and investors will be closely watching the european meeting on thursday to hear what the president has to say about state of the economy. we may see investors continue to buy shares of japanese exporters today. >> thank you for that update. the bank of japan released the survey yesterday. it shows that many domestic manufacturers did not pass on higher costs to their customers even though businesses paid more for raw materials stemming from a weaker yen. among the respondents, buying costs for raw materials and parts for large manufacturers

were at plus 24 points. the the figure for smaller makers stood at plus 35 points. both were up nine points from the previous quarterly survey. a positive reading means a larger percentage of firms mean purchasing costs went up rather than down. the figure for selling prices was at minus four points for large manufacturers and minus 12 points for smaller ones. this is due to intense price competition especially in the auto and intense machinery sectors. they need to find ways to compete with the largest trading partner in china. japanese officials have come up with a strategy they hope will prove successful. nhk world explains. . >> in eastern africa by the 85 .

it's the second biggest country on the continent after nigeria. it's expanding around 10% a year. e merging economies like china and india have been making heavy investments. ethiopia is poor in natural resources and the manufacturing industry weak. so the country has to depend on imports which kept the trade balance in the red. the ethiopian government is keen on putting life into the industry. to help the airport, the japan agency has helped set up a research organization called ethiopian institute. it means improving production by tapping fresh ideas. this strategy proved successful

in boosting japanese manufacturing sectors. >> that's enough to improve its productivity and of course to improve its economy as a whole. that experience of japan they found it helpful to ethiopia. >> he is working and also when he was working for the toyota company as an engineer. on this day, he and the staff are in the processing factory. the environment at the plant is poorer and the number of defective products remain high. he used them to pinpoint progress. he set up using photos, he

explained each of the programs. >> they are necessary as they are not really -- they are very, very small things, but that's a lot of the things to us. >> i want to show how they can boost the earnings of companies and raise the incomes of the people. i would like to see them become happy. >> it is taking root in ethiopia and also helping japanese firms to make deeper inroads to africa. this is an executive of a company near tokyo that produces them. in ethiopia last year, his firm started the production of shoes for sale in japan. . >> translator: the poworkers ar

becoming more quality-minded. >> it was pointed out from this day that the laptop is a work table that is responsible for the defective products. workers decided to make the surface smooth. satisfied with the improved productivity, they plan to set up its own plant in ethiopia. >> translator: i'm confident that i can do a job that satisfies people in ethiopia, japan and the rest of the world. we want to produce them instead of tracking global demand. >> japan had devoted itself to providing financial aid to africa. now companies started looking for ways to share with african firms. nhk world, ethiopia. >> that's all for now on business news. i will leave you with a check.

u.s. defense officials are planning to double the deployment of a controversial transport aircraft in okinawa, southern japan. they will send 12 ospreys, a 19 is noisey and dangerous. japanese defense officials told the government that the ospreys will arrive at the u.s. marine corps air station in early august. the squadron was appointed last year.

the okinawa governor said the u.s. should call off the plan or deploy them outside okinawa. >> people's concerns over the ospreys still haven't been addressed. >> the military violated rules for operating more than 300 times. >> time for a check on the weather. people in parts of southern chiparchip ar -- china are dealing with the effects of a storm. >> this tropical storm has made landfall into this morning. this is the wins of 83 kilometers per hour. we got to the 130 kilometers per hour. after making landfall, they should weaken to a tropical depression by wednesday morning. the friction over land and also a loss of moisture.

winds could ease, but they for expected in more than 150 millimeters of rain with locations with 100 millimeters and these are the areas that have the previous storm system. additional rain is certainly not welcomed. heavy rain is going a big story for the rest of china as well. we are seeing rain. yesterday about 400 millimeters of rain fell and it's just 24 hours. looks like an additional 100 millimeters likely. landslides will be a big issue and severe weather over towards north eastern china. some of of and expected rainfall amounts of 115 millimeters. they should match over japan, but using the storm system, they expect wet conditions across the country and that includes the prefecture. i want to show you the video

coming out of the area. the temple returns this time of year. they bloom each morning from dawn until around noon. the flowers have been there for around 2,000 years. some are up to 30 centimeters at full bloom. beautiful flowers out there. wet weather is anticipating starting wednesday. as for temperatures, they are getting up to 28 degrees today, but seoul going down to 24 degrees after days of hot conditions. heating up to 34 as well as your tuesday. in north america, we have been watching a tropical storm dalila that can be a hurricane boy tuesday. the good news is it's going away from mexico. tropical storm warnings and watches have continued across the south and west coast. winds could ease, but rainfall

will continue across southwestern parts of mexico. up towards the usa and canada, it will stay largely dry. across the u.s., there is a lot going on. we have flood rains across the east and extreme heat over towards the west. we have a frontal system in the east and this is carving ongoing heavy rain. this is accompanied by thunderstorms as well as gusty winds. we have a bermuda high and this is preventing from the storm system. this system from moving towards the east. unstable weather will continue fortuna fortunately. towards the west, it is very hot going up to 53 degrees for you in death valley. 43 in sacramentsacramento. 29 on tuesday. here's the extended forecast.

. taking a look at one of the lead stories won against, egyptian commanders are vowing to use their power to end the turmoil that is taken hold of their country. they have given morsi and his,a pone opponent a deadline.

they will intervene if the sides fail to resolve the deadline by wednesday afternoon. they have no intention of seizing power. one million protesters rallied nationwide on sunday. the first anniversary of morsi's inauguration. tens of thousands demonstrated on monday. members of both sides faced off in cairo at the headquarters of the power place, the muslim brotherhood. some opened fire on protesters. people died in the violence. morsi is the first democratically elected president. many applaud the military's ultimatum. >> translator: we welcome the military's decisions. the military is with us. we suffered for 30 years, but morsi's government is also bad. >> state-run tv reports morsi

was holding talks on monday night with the defense minster and other officials. that is all for this edition of nows line. i'm katherine kobayashi in tokyo. thanks for joining us.

captioning sponsored by macneil/lehrer productions >> ifill: a swift and destructive blaze that killed more firefighters than any wildfire in 80 years still raged out of control tonight. good evening. i'm gwen ifill. >> woodruff: and i'm judy woodruff. on the newshour tonight, we get the latest on the inferno that claimed the lives of an elite team trained to survive in the worst conditions. devastated. we just 19 of some of the finest people you'll ever meet. i mean right now we're in cris