glad to have you with us on this edition of "newsline." it's wednesdada july 17th. i'm catherine kobayashi in tokyo. authorities in panama have seized a north korean cargo ship they suspect was carrying components for a missile system. the crew of the freighter was

trying to return home from cuba through the panama canal. authorities say the crew had hidden missile components in sacks of sugar. panama's president ricardo martinelli announced the seizure in a radio interview. he said authorities had found what he called sophisticated missile equipment. the 35 crewmembers resisted efforts to redirect the ship into port. investigators have detained them. they said the ship's captain tried to commit suicide. defense consultants with ihs jane's intelligence analyze military hardware. they identified the equipment as high performance radar for surface to air missiles. u.s. state department spokesperson patrick venterrell says the ship has a history of drug muscling. the acting u.s. ambassador to the u.n. said that shipments of arms or related material to and from north korea violates security council resolutions.

>> obviously this shipment, if it's confirmed to have what we suspect would be of interest to the sanctions committee. >> di carlo commended the panamanians for the seizure. she said they have a responsibility to ensure the panama canal is used for safer commerce. egypt's leaders have sworn in an interim cabinet. after another night of violence. critics say the lineup does not reflect the will of the people. there is not a single minister representing islamist groups. interim prime minister took the oath and formed his cabinet, but includes no members of the muslim brotherhood. the support base of ousted president mohamed morsi. interim leaders are implementing a road map to restore civilian rule. a spokesperson says the transitional government offered a cabinet post to the muslim brotherhood to promote reconciliation, but leaders of

the group rejected talks with the new administration. they said they won't take part in discussions until morsi is reinstated. morsi's supporters have protested repeatedly since he was removed from power. they say the government is illegitimate and refused to recognize its authority. american fugitive edward snowden has spent three weeks holed up at an airport in moscow. russian authorities have confirmed that the former intelligence contractor has filed a request for asylum. earlier this year, snowden leaked details of top secret service program to the press. now he is facing charges of espionage. a russian lawyer who met with him last week confirmed snowden had handed in papers in a bid for asylum. but snowden says he hopes his stay will be temporary. he says he wants to fly to one of the latin american nations that have offered him protection. u.s. government officials continue to demand that russian officials hand him over.

president vladimir putin has said russia will only grant snowden asylum on the condition he does no harm to the u.s. government or to the russia-u.s. relationship. demonstrators angry over a recent legal decision in the united states are refusing to back down. they're demanding justice for a black teenager who was shot dead. the case has sparked a nationwide conversation about race relations. a jury in florida ruled that neighborhood watch volunteer george zimmerman killed 17-year-old trayvon martin in self-defense. jurors found him not guilty of murder and a lesser charge of manslaughter. zimmerman is of white and hispanic origin. protester says the decision to acquit him was based on race. about 400 people gathered at a park in los angeles to vent their anger. police dispersed the crowd and closed the park. some protesters smashed the windows of nearby shops and damaged vehicles.

police arrested 13 people on suspicion of damaging property. >> if you truly care about the martin family, if you truly care about the underlying issues, the last thing you should be doing is taking to the street, stealing scooters out of people's hands, assaulting people, smashing window, scaring drivers or pedestrians. >> police will restrict traffic on roads near the park to prevent further demonstrations. u.s. attorney general eric holder says martin's death was tragic. he says justice department officials will continue to look into the shooting. holder says investigators will determine whether a civil rights law on racially motivated crimes applies to the case. >> i want to assure you that the department will continue to act in a manner that is consistent with the facts and the law. we are committed to standing with the people of sanford, with the individuals and families affected by this incident. >> president barack obama issued

a statement shortly after the verdict. he said the united states is a nation of laws and he urged americans to work toward more understanding in their own communities. judges on the international court of justice will spend the next few months going over a case that has put japan's whaling program in the spotlight. they wrapped up three weeks of hearings in the hague. japanese representatives defended the program against a complaint by australia. >> the convention does not bar japan from conducting its scientific research of whaling because it is in accordance with the convention. >> deputy foreign minister said in closing arguments that japan's program is in line with the international convention for the regulation of whaling. the agreement allows countries to hunt whales for scientific research, but australian representatives say japan's program is really for commercial purposes and therefore violates the convention. they filed a complaint with the court in 2010.

if they win, japanese crews wi not be able to continue whaling in the antarctic ocean. the court's ruling cannot be disputed. both sides have agreed to honor the decision. some japanese citizens have been paying attention to the case. >> translator: the ruling will not affect my family because we don't eat it very often. >> translator: it will be a loss of japanese culture. it is a problem. >> a panel of 16 judges on the international court of justice is expected to deliver a ruling at the end of this year. investors have been taking their money out of the u.s. and putting it into places where the interest rates are higher. but with u.s. central bankers hinting at tapering monetary easing, investors are rethinking where their money goes. ai uchida joins us from the business desk with more on that. good morning, ai. >> good morning. that's because when the u.s. fed

tapers its current monetary easing measures, interest rates in the states are expected to rise. that is why people in emerging economies are worried outside investors are pulling out their money on speculation that the fed will scale back its monetary easing. government officials in india are trying to keep inflows of overseas cash by easing rules on foreign direct investment. the officials say they'll allow firms from abroad to have a 100% stake in telecom operators. the current limit is 74%. and the foreign investment cap in the insurance sector will be raced from 26 to 49%. foreign firms will also be able to bypass government approval to make investments in more business areas. india's currency has fallen nearly 10% against the dollar over the past two months. the weak rupee has caused surges in fuel and other consumer items. consumer prizes have rose

for the second time in the month. the latest data from the u.s. labor department show the consumer price index was up a half a percent in june. this was the largest increase since february. gasoline prices were up more than 6%. clothing rose almost 1%, and the cost of medical services increased by nearly half a percent. but declines were shown in the prices of utility piped gas, used cars and trucks, and airline fares. over the last 12 months, end of june, consumer prices advanced 1.8%. and that's after rising 1.4% in the year through may. the overall increase in prices is still below the federal reserve's inflation target of around 2%. and markets in the u.s. took a step back on tuesday. the dow jones industrial average ended down 2/10 at 15,451. that's after three straight days of record closing highs.

to see how all that will affect stocks here, let's go to ramin mellegard at the tokyo stock exchange. how are things off at this morning? >> let's go straight to the opening levels for wednesday, july 17th, and let's have a look, shall we? both the indexes actually kicking off in the negative, i can tell you that. you can see there on the screen right now 14,493 for the nikkei. 1,205 for the topix. the markets may have taken a downturn after investors in the u.s. turned a little cautious after a series of lackluster earnings results, one of them being coca-cola. here tse, after merging stocks with the osaka exchange yesterday, big ceremony there is focus on volume, but the big challenge is also on derivatives including metals, oils and other derivative products in which japan exchanges still lag some of their global competitors. there is going to be a big focus

on that as well. now let's have a look at currencies as well. the dollar/yen 99.15-17. you're already yen 130-39. after data showed inflation in the u.s. remains under control, largely benign. and market players thought this gives room for the federal reserve to maintain its easy monetary policy stance, but also feds a light on ben bernanke's testimony to congress on wednesday and thursday. that's going to be a big focus, of course. now traders and investors really want to listen out for any new wording regarding the fed's plans to taper off or scale back its current monthly bond purchases, which essentially is pumping cash into the u.s. economy. now let's not forget we continue to have earnings out of the u.s. the biggest of which today is going to be intel. also ibm, which are both due out later today. so heavy schedule for investors to focus on.

but of course fed chief ben bernanke's testimony will be a big focus for investors globally. ai, back to you in the studio. >> all right, ramin, thanks a lot. ramin mellegard from the tokyo stock exchange. executives at renault and nissan motor are pooling their efforts in what promises to be one of the largest auto markets in the world. they're working together to gain a 15% market share in india. the chief executive of both companies unveiled the new plan at the renault-nissan production base in the southern city of chenai. he says the economies of india and other emerging nations will pick up to show strong growth. >> i'm very optimistic about the high growth market even though i recognize from time to time we have to adapt and slow down. but this doesn't challenge our strategy, which means it doesn't change our investments. >> gohn said engineers are jointly developing small

low-cost vehicles. he unveiled the first nissan model under the revived datsun brand. he said they hoped to increase their market share in india fivefold by promoting affordable cars. that's the latest in business. i'll leave you with a check on markets. a u.n. tribunal has opened in the hague to examine a complaint by the philippine government on china's territorial claims in the south china sea. >> the philippine government has

noted that the arbitration process has begun. >> the philipine government argues that china's territorial claims are in violation of the u.n. convention on the law of the sea. china claims it has sovereignty over virtually all of the south china sea, but it refuses to involve third parties or world parties, that's world bodies in its disputes. territorial disputes in the south china sea are intensifying as china increases its naval activities. now, the philippines has opened talks with the united states over a planned joint use military base at subic bay on the edge of the south china sea. the facility will strengthen ties between the two allies at a time when the philippine government is entangled in maritime disputes with china. charmaine degrassias reports. jose cuisa have started senior levels about a proposed facility

at subic bay. >> we are currently in discussions on how we can strengthen the relationship, the alliance. >> reporter: subic bay was formerly the site of a u.s. navy base during the cold war. it was one of the largest u.s. military facilities in asia. many filipinos were opposed to the u.s. presence. and in noon 1992, the subic bay navy base was returned to the philippines. the area is developed as a special economic zone. the philippines wants to strengthen its alliance with the united states to counter balance the rising military power with its neighbor china. the philippines and china have competing claims over the areas of the south china sea. their dispute has become increasingly tense making subic an important strategic location once again. the proposed facility would give washington a foothold from which to monitor the south china sea

and the maritime activities of china. the area contains shipping lanes critical to the functioning of the world economy. the philippine constitution bans foreign troops from keeping a permanent base in the country. the proposed joint use facility will be governed by the philippine military to sidestep any constitutional issues. even so the anticipated return of the u.s. military has already steered hostile demonstrations. ambassador cuisa chose his words carefully to try and ease public concern. >> let me stress it is a joint use of facilities. there is no mention at all of a permanent base because i think the u.s. is very well aware that it will not of course be allowed under the constitution. >> reporter: china is becoming more assertive in the south china sea. in doing so, the philippine government is forced to

strengthen its military relationship with the united states. many filipinos feel unhappy to be caught in the middle of this power game between the united states and china. nhk world, manila. politicians in japan are in the home stretch. they're campaigning for an upper house election. when voters go to the polls this sunday, they'll be weighing in on prime minister shinzo abe's first six months in office. and they'll be deciding whether to give his liberal democratic party more power. the ldp controls the lower house. but opposition parties hold the majority of seats in the upper chamber. and that's created a divided diet, where passing legislation can be tricky. in the days leading up to when japan decides, we'll be looking at some of the key campaign

issues, and hearing from voters about what matters to them. candidates from these nine parties are running in the election. the groups qualified for political party status. others that failed to meet the standards are still fielding candidates. in all, 433 candidates, including independents are running in this election. prime minister abe has said he wants to win this election to end the political deadlock in japan. he's's also hoping a strong showing will help him realize a long-standing goal. abe is pushing to amend the constitution. that he hasn't done, or that hasn't been done since it took effect in 1947. the prime minister wants to change its pacifist core and make the self defense forces more like a military. but even if he gets the political power he needs to do that, he'll still have to convince the japanese people. nhk world's jun yosimoto walks us through the issue.

>> reporter: voters have been hitting the books ahead of the upper election. they've been learning more about the constitution now that politicians are debating whether to change it. the managers of this bookstore say sales of constitution-related material are two to three times higher than usual. >> translator: i'm interested in the constitution as the ldp's consumer draft is a popular topic at my college. >> translator: i think we should seriously think about the constitution before the election, especially when there is a group of politicians who want to change it. >> reporter: u.s.-led allied forces took control of japan after world war ii. and worked to disarm the country. they made politicians write a new constitution. article 9 states the japanese people forever renounce war.

many citizens supported the pacifist stance. but some politicians argued the constitution does not reflect the free will of japanese because it was established while their country was under occupation. the forms a liberal democratic party in 1955 and made revising the document their mission. >> translator: the amendment of the constitution has been one of our main goals since the foundation of our party. it was our pledge in the recent lower house election, and will be again in the upper house poll. >> reporter: now that the ldp is back in power, prime minister shinzo abe is hoping to

accomplish that goal. he wants to change the constitution so he can turn the self-defense forces into a national military and defend allies that come under attack. but before he revises article nine, abe wants to change article 96. it stipulates modifying the constitution requires a two-thirds vote by lawmakers in both houses of the diet. then a national referendum. abe argues a simple majority should be enough. >> it's nonsense to say that you can't change the constitution if one-third of lawmakers oppose it when more than half of japan's citizens want to do this. revising article 96 will make it possible for the people to renew the constitution. >> reporter: lawmakers in the

u.s., germany, and south korea also need the approval of 2/3 of their legislators to change their constitutions. the u.s. and german constitutions require additional legislative approval. in south korea, amendments must be approved by referendum. politicians in all of these nations have amended their constitutions multiple times since world war ii. those in japan have not since it took effect in 1947. some experts say the reason is that people who want to revise it haven't come up with a proposal that is convincing enough to sway the japanese people. the discussions over amending article 96 have overshadowed the wider debate about whether the constitution should be revised at all. this issue will continue to cause divisions in japan long after the election. jun yotsumoto, nhk world, tokyo.

>> the debate over the future of japan's constitution is politically and emotionally charged, so we're spreading our coverage over two days. later today, we'll look closer at the arguments for and against revising article 9, which forbids japan from having a military. prime minister shinzo abe has worked to reshape japan's economy. now he is setting his sights on amendmenting the constitution, but his party must make a strong showing in this month's upper house election so it can push its policies forward. less than a year after putting abe in power, japanese voters have a chance to judge him on his record. don't miss our special coverage leading up to the election right here on "newsline." it's time now for a check on the weather. people in tokyo are enjoying a cool commute this morning. we explain in world weather. >> yesterday the temperature in tokyo dropped to the upper 20s

for the first time since early july, and it's going to be almost the same today because we have a high pressure system over the north, bringing cooler air for the eastern half of the nation. but the western side is a different story. we have a high pressure system. this is a heat weather-maker, hot weather-maker, providing very hot air from the south. temperatures are nearly 35 degrees for the hottest time of the day. so quite different scenarios for the west and the east. and in between that, light showers are possible across central japan. and across the west, northeastern china, yesterday and monday quite heavy rain battered this area and caused the flooding. i want to show you this video. torrents of rain lashed province earlier this week. it caused severe floods, inundating hundreds of houses. meanwhile, a pond overflowed, causing the fish to swim on to

the streets. residents rolled up their pants and went out to the intersection. they reached into the water to catch the fish. some fish weighed two kilograms. nice way to catch fish out there. now the rain band is affecting the northern parts of south korea. quite heavy. frequent lightning is possible throughout the day. and quite heavy rain is also battering southwestern parts of china, probably sichuan province may get as much as 250 millimeters in the next 24 hours. and more heavy rain is likely for northeastern corner of luzon. we have a tropical depression just to the east of luzon, and it could hit the northeastern areas of luzon later today, and become a tropical storm by tomoow morning local time, and it could hit taiwan once again. and this is the area, a typhoon that hit on saturday. so the addition of rain is not welcomed at all. and temperatures are quite soaring in shanghai, 37 degrees for you this.

is the closest area. we don't usually see this high temperature, even in the middle of summer. and bangkok with seasonal thundershowers. north america. the main story is going to be the heat dome covering the eastern third of the u.s. temperatures are quite seasonal, going up to the mid 30s in places like boston, chicago, and new york city. dangerously hot there. and with the high humidity, you would feel more like 38 degrees or higher. so watch out for that. and quiet cool and wet across the southern plains. and same scenario for the next couple of days. mostly dry for the west, and temperatures quite mild in the north. 26 for vancouver. 27 in seattle. and finally, in europe then, mostly no cloud cover across the continent and the british isles. temperatures are quite hot. we'll show you the figures in just a moment. we are seeing some afternoon thundershowers with the pyrenees in the alpine regions. and as you can see, over 30 degrees in some places.

35 degrees, 30 for london, paris, as well as vienna on your wednesday. that's it for me now. here is the extended forecast around the globe.

and that is all for this edition of "newsline." i'm catherine kobayashi in tokyo. do join us again.

captioning sponsored by macneil/lehrer productions >> ifill: a brutal druglord, the ruthless leader of a mexican cartel, has been captured near the texas border. good evening. i'm gwen ifill. >> brown: and i'm jeffrey brown. on the newshour tonight, we get the details of the dramatic arrest by mexican marines, and examine the impact on the notorious zetas drug gang, which reaches deep into the american southwest. >> ifill: then, the "nuclear option" is off the table, for now. we talk with senators jeff merkley and roger wicker about the deal that averted a showdown over the filibuster rules.