welcome to "newsline." it's wednesday, july 19th. i'm catherine kobayashi in tokyo. investigators believe they may have found out what was the trouble with the dream liner. they identified an emergency beacon as a likely source of

fire at heathrow airport. they recommend airlines turn eafr the beacons on boeing 787s. the fire on a part eating yoep plan plane. they can lead rescuers to a downed plane. it was the only system that had the power to start it. the investigators are examining the bat tree see whether it sparked the fire. it would be premature to speculate on the cause. airlines grounded the dream liner in january after a series of battery problems. emergencies revamped the battery system. many passengers are nervous and japan airlines dream liner headed for tokyo on thursday and had to return to boston's logan airport. a spokesperson for the airlines said the pilot decided to turn back out of what she called an

abundance of caution. a russian court sentenced an opposition leader to years in prison for embezzlement. critics say the sentence was politically motivated. he worked in 2009 as an adviser to the governor of the central province. prosecutors say he organized a scheme to steal about $500,000 from a timber firm, but some have questioned their motives. he writes legular plugs critical of the ruling party. he organized a rally to protest irregularities and protests. on wednesday he registered as a candidate for mayor of moscow. the election is scheduled for september. members and human rights activists criticized the sentence and said it was harsh and proved putin rules by silencing his critics. the union issued a statement and

said the conviction raises serious questions about the rule of law in russia. time now for the latest in business news. officials in detroit can't believe how different their city looks. half a century ago it was booming. an obviously hub where hundreds of thousands of people found jobs. today the city scape is bleak. we go to the business side. >> catherine, it is like night and day for american auto maker who is considered detroit the heartland. authorities are dealing with a multibillion dollar debt. they declared the citiba city b. they filed for the largest municipal bankruptcy. >> one of the things i want to say to the citizens, as tough as it is, i didn't want to go in this direction. now that we are here and we have to make the best of it.

>> detroit was traditionally the center of the u.s. auto manufacturing industry. general motors has the headquarters in the city. gm bosses responded to industry decline by declaring bankruptcy in 2009. people living in detroit numbered about 1.8 million in 1950. now there just 700,000. the population decline led to a decrease in tax revenues. officials have faced financial distress ever since. while news about detroit reminds us, parts of the u.s. economy are deeply stagnated. we are starting to see brightness over on wall street. the dow jones average hit a fresh closing high on thursday and rose a half percent to finish at 15,548. it's due to favorable weekly jobless claims as well as strong manufacturing data. to see how that will affect stocks here, let's go to the

tokyo stock exchange. good morning. in the u.s., stocks are getting a boost with positive data, but earnings remain a focus as they get into full swing. what is the picture here in japan? is it. >> quite an interesting scenario with the economic data as well as earnings. let's look at the opening levels for friday, july 19th. a pretty positive start. 14,915. let's see if we can do that today. the data out of the u.s. was interesting because of the unexpected jump in the philadelphiafed manufacturing survey. along with the new york state manufacturing data, it's another sign of improving u.s. economy. the markets got a boost from the fed chairman bernanke who said that nothing is set in stone with regard to the distinct time table for scaling back with the

bond buying programs. that was a positive as well. we are seeing a gradual rise in the dollar and keep an eye out for exporters today. i want to highlight the banking sector. not because of earnings for banks and counter parts there as well which have been strong. jpmorgan chase as well as morgan stanley. bank lending increased and long-term interest rates are seemingly more stable. that's a tracking more investors into the sector. i will watch for those. some of the mega banks yesterday closing at levels we haven't seen since before the more than 1,100-point sell off we saw on may 23rd. if you remember that one. >> i want to talk about currency levels. we saw the dollar gain with risk appetite return due to strong performance in u.s. stocks. could we see more gains? >> we could. we did see that jumping up off

the 100 yen 4re. it broke above 100 yen and climbs to the current levels. they focus now on the eventual slowing of fed stimulus which is a positive factor for the dollar. we may see further gains as you suggested. the bottom of the screen, 139.79 to 85 that also gained against the yen and now at the levels compared to 129 yen this time last week. so some gains there against the yen. be aware of tech and it sectors. google and microsoft failed to ignite major interest with investors. we will keep track of that as well. back to you. >> thanks if are the update. from the tokyo stock exchange. executives at electronics makers agreed to pay millions in

fines and they have pleaded guilty to illegal price fixing. u.s. justice officials say panasonic and sanyo electric will pay a total of about 56$56 million for antitrust violations. panasonic admitted to a experience from about 2003 to 2010. they will pay $45.8 million in fines. sanyo representatives confessed to fixing prices for lithium ion battery cells and need to pay $10.7 million. justice department officials have so far prompted 11 companies and 15 executives to plead guilty. their auto. >>s investigation continues. more headlines in business for you next hour. here's a check on markets.

the indian government will deploy an army core specializing on the mountainous areas bordering china. the potential for conflict with india and china was highlighted in april. they accused troops of crossing the border leading to a military standoff. they said the military unit will contain about 50,000 troops and contain a brigade equipped if are fighting in rough areas. they established the core

divisions over the next seven years. they include the north eastern and eastern state says as well as kashmir. they have a base to supply materials and personnel. it's crunch time for politicians in japan. they have two days left to sell the platforms before a national election. voters will decide who should represent this em in the upper house and as they fill out the ballots, they will be considering whether to give abe and his liberal democratic party more power. the ldp controls the hour house, but opposition control the seats in the upper chamber and that created a divided diet where passing legislation can be tricky. in the lead up to when japan decides, we have been looking at 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 fielding candidates. in all, 433 candidates including independents are running in this election. many voters will be thinking about their pocket books when they cast ballots. the economy remained stagnant and the key stock index stayed almost flat since the global financial crisis five years ago. things changed when abe took over. he found his policies dubbed abenomics would drag the nation out of inflation once and for all. >> prime minister abe rushed to implement what he called three hours of economic policy as soon as he took office. >> translator: japan's biggest challenge is reviving the

econom economy. >> abe in his first arrow at fiscal spending. his administration allocated $100 billion on public works projects. abe called on business leaders to raise wages so workers could enjoy the trickle down effect of the stimulus. the second arrow focused on monetary easing. abe named the new governor of the bank of japan. he quickly fulfilled the prime minister's expectations and introduced massive credit easing measures. >> we will do everything necessary. >> the central bankers announced a plan to double what is pumped into the economy and achieve a 2% inflation rate within two years.

investors responded immediately to dollar top the 100 yen mark for the first time in four years. the key nikkei index exceeded 0 15,000 points, the first in 5 1/2 years. abe designed his first two arrows for immediate effect. his third arrowy, a growth strategy, is aimed at getting the economy on a full-fledged recovery track. >> translator: the focal point of my growth strategy is using the full potential of the private sector. >> the strategy encompasses 250 programs. some of the goals include raising corporate capital investment by 10% and requiring $50 billion into the overseas health care and boosting agriculture exports to $10 billion. prime minister abe threw his

weight behind his strategy. many investors said the plan lacked major deregulation and reforms. >> the is trying to win supported heading into election day by highlighting what his administration achieved with abenomi abenomics. we have the voter's view. >> shoppers in japan have more of a spring in their step these days. consumer sentiment is improving and encourage people to spend more. they say the brand name why ams and high end goods have picked up over the past six months. >> i received a big bonus. i felt like spending. >> we are hoping this won't be just a temporary boom. we hope customers will buy more.

>> retail is not the only sector reaping the benefits of abenomics. this man runs a company that makes outdoor power equipment. the weekly yen caused h business to boom. >> we expect our operating profits to rise this year because of foreign exchange rates. >> customers all over the world buy the company's chain stores and other products. they are selling goods in 92 countries. the firm has been struggling because of the strong yen. every has an increase and added up to more than a million dollars in losses. >> translator: a one-yen surge blows off what we accumulated. abe has taken bold steps, something previous prime

ministers couldn't do. >> a weaker yen means the cost of imports like fuel and raw materials are surging. they have been feeling the pinch. >> we have to spend nearly a half of the money we make on fuel. we are barely hanging on. >> the more trust she has on the road, the higher her operating costs. she can't pass the increases on to the customers because competition in the industry is too fierce. >> translator: 99% of the trucking industry consists of small and medium sized businesses. it will have a major impact on the nation's economy. >> some people are concerned abenomics will have a major impact on their lives.

she and her husband live on a pension of about $1500 a month. she said with prime minister abe and the boj trying to end deflation, she has already noticed prices are gradually rising. her husband's medical bills are adding up too. their expenses are starting to eat into their savings. >> translator: i can't sleep when i start thinking whether i have enough money to live on. >> it would be hard to find someone who doesn't want the economy to make a successful turn around. theirs is divided with abenomics, we do the trick. nhk world, tokyo. >> our coverage ahead of the upper house election will continue later in the day. a look at what prime minister abe has accomplished since he took office in december and highlight his plans for the future.

>> nhk world special coverage of the upper house election is a click or a tap away. we are adding i host of features to the web and mobile sites. you will find backgrounders and analysis and indepth reports on the issues that could define the campaign. from the economy to the constitutional debate. get online and get informed. >> morning show host and monarchists have spent the week debating every aspect of the royal baby. the duchess is expected to give birth to her first child. people outside the royal family are waiting and not sure when the baby will arrive. camera crews from around the world have camped outside a hospital in london. londoners and tourists are trying to catch a glimpse of

what's happening. man has spent the past three days on a bench. >> it's history in the making. when it am cans out there will be thousands here. >> the whole world wants to know what's going on. this is a special occasion. isn't it? i'm very excited. >> the first baby of the duke and duchess kate middle is due to deliver in mid-july. . >> russian dancers thrilled the audiences the world over with performances of classical ballet. those dancers are in turmoil. some got caught up in scandals and the government is set to intervene. >> the world renowned theater

has been the center of russia's ballet and recently the focus of scandals and controversy. >> translator: the attack on the arttivityic director was part of the disputes. >> the artistic director was seriously injured when acid was thrown in his face. one of those arrest side a bol shoi dancer. disputes between dancers and directors are not unusual in russia. since the soviet era, performers enjoyed contracts and wield influence in their troops. in some is cases, young artistic directors have been pressured into resigning. following the acid attack at the theater, the russian government

drew up a new policy requiring dancers to undergo regular tests that will strengthen the government's control over theaters since it will allow dancers to be fired if they lack professional competence. the proposed law is being considered by russia's parliament and calls for the tests to be carried out every five years. individuals who fail the test or refuse to take part may be fired by the theater, but it does not specify the methods of testing or the evaluation standards. >> translator: the ballet company needs to be systematically reformed. now is the time. >> the government's plans have caused consternation among the performers. the theater in st. peters berg is one of the most famous in all of russia. for the past two years, this has

been the resident director of ballet. born in spain, he is the first foreigner to hold that position at a russian theater. as artistic director, he has total control over productions. he worked to raise the theater's artistic level by casting roles based on merit rather than experience. this helped restore the theater to former popularity. performances are always over 90% full. suddenly the plan competency tests were announced. the dancers are worried whether or not they will keep their

jobs. >> i'm really worried about what kind of test and criteria will be used. >> he is also opposed to all government interference in the arts. >> the director should know already who is good and not good. the politics, too much on an artistic identity and artistic system is no good. >> the government said the new law will not interfere with content, but many people will be watching its impact on performing arts in russia. >> time for a check on the weather. people in southeastern china are dealing with heavy rain. we have that and more in world weather. >> we have been watching a

tropical storm that made landfall in the province last night as a tropical storm and still lingering near the southeast coast of china as a tropical depression. it has brought quite heavy rain and unfortunately more heavy rain is on the way. locally 200 millimeters. enough to trigger further flooding and land slights. it looks like residents will have to deal with more of heavy rain because we have a tropical depression and this one could be a tropical storm within the in accident few hours or so. we will likely hit the island of hainan tomorrow. we will keep you posted on the progress. more heavy rain from southwestern china to north eastern china as well as north korea. the heaviest rain can be found across the north. frequent lightning and thunderstorms are the possibility as well. heavy rain over northern parts.

they were about 250 millimeters of rain in a span of 24 hours. the heaviest and they are looking at sunny skies. they are going up to 30 degrees if are the high and residents are cooled off. take a look the the video. excessive heat strike again yesterday with the murkry heating 33.9 degrees celsius. through the heaviest snow area, some 600 kilograms of snow from the slopes were preserved since winter. they destroyed the brief wes pit fr respite from the sweltering heat. a heat wave is blanketing much of the continent. we are expecting quite hot

conditions across most of the u.s. and parts of canada. hot conditions continue across the west into the weekend. some changes are coming into the east and these fronts are the key. this is the boundary of cool and hot air producing severe weather near the border. there is a possibility of thunderstorms and gusty winds and tornados. this is expected to go towards the south. temperatures will cool down significantly. chicago at 36 degrees on friday. quite hot and cooling down by 8 degrees on saturday and sunday and you are going down into the upper 20s finally on your sunday. some changes are on the way across europe. heat is building here, but we wanted to talk about thunderstorms and gusty winds across the front and italy as well as the alpine region first. we have large hail and the winds in italy. the wet and windy conditions and

temperatures are soaring going up to 37 in madrid and 36 degrees on sunday. paris over 30 degrees and mid 30s on your monday. dangerous heat is on the way. here's the extended forecast.

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

captioning sponsored by macneil/lehrer productions >> woodruff: president obama pushed back against republican criticism of his health care reform law, insisting that it's working and cutting costs for consumers. good evening, i'm judy woodruff. >> brown: and i'm jeffrey brown. on the "newshour" tonight, we dive into the numbers and ask: is the affordable care act driving premiums up or down? >> woodruff: then, at least 23 children are dead in india after eating school lunches that may have been tainted with insecticide. we examine what went wrong.