hello, and welcome back to "newsline." i'm shery ahn. we start this hour with breaking news out of south korea. police there say two trains have collided in the eastern city of pebak. police and firefighters say the accident happened shortly before 6:00 p.m. local time. south korea media report the trains were carrying a total of about 100 passengers. they reported many passengers got out of the trains by themselves and that some were taken to hospital with injuries. firefighters are conducting a

rescue operation. once again, for those of you just tuning in, we have breaking news out of south korea. police there say two trains have collided in the eastern city of taeback. south koreans have had their confidence in the transit system rocked in recent months. investigators say they found the body of the man who owned the ferry back in april. they discovered his remains in a field and they have made a positive identification through dna testing. nhk world reports. >> reporter: yoo has been missing since the "sewol" capsized in may. investigators say finding yoo was key to helping them quantify the circumstances of the accident. they say they have identified him by fingerprinting and dna testing. they found him last month in a far field in the southwestern part of the country. 293 people died in the ferry

accident. 11 others are still missing. investigators say they believe the ferry was overloaded and that the operator had failed to properly secure the cargo on board. they say the company had earned an extra $3 million by routinely overloading the ferry. yoo effectively owned more than ten companies. they were run by his relatives and members of a religious sect he had links to. prosecutors have indicted the ferry captain and executives of the operating company. they are planning to arrest yoo on suspicion of embezzlement and other offenses. they believe he was negligent. they say he continued to run the ferry knowing it wasn't meeting safety standards. three months have passed since the accident. relatives and friends of the victims still want to know why

it was allowed to happen. now they are concerned that yoo's death will make it harder to get to the truth. naoki makita, nhk world. the team investigating the downing of a malaysian airlines jet in eastern ukraine is moving ahead with its probe. pro-russian separatists have released the flight recorders of the plane to malaysian government officials. the separatists effectively control the crash site. they handed over the flight data recorder and the cockpit voice recorder in the donetsk region. the malaysian officials say both devices are in good condition. the separatists said they agreed to a cease-fire in the area surrounding the crash site to allow international inspectors safe access. they have also allowed the transport of the bodies of the victims to the eastern city of car kharkiv four days after the crash. officials from the united states, britain, australia and

germany have gathered in the city to inspect the remains. flight mh-17 was carrying 298 people from amsterdam to kuala lumpur. the majority of them were dutch citizens. the separatists have faced international scorn for how they handled things. the crash has also created even deeper divisions between russian leaders and those in the west. nhk world's craig dale has more. >> reporter: leaders from the u.s. and other nations blame the separatists for firing the missile that brought down flight mh-17 and killing all 298 people on board, and they've also been criticizing the rebels for blocking access to the site. when pro-russian separatists stopped investigators from entering the website, some fired weapons into the air. the separatists are accused of contaminating the evidence and looting luggage in duty-free bags. president obama asks what are they trying to hide? now the separatists have agreed

to a cease-fire within 10 kilometers of the crash site so investigators can do their jobs. now, as to who fired that missile, the separatists are the prime suspect. russia is accused of providing the weapon and providing the training. the separatists blame ukraine, and russian officials are saying that ukraine had multiple surface-to-air missiles in the area along with a warplane at time of the crash. russian president vladimir putin says this wouldn't have happened had the ukrainian military not resumed operations against separatists at the end of june. he's asking both sides in the ukrainian conflict to allow for a full investigation, and so are delegates at the u.n. security council. they passed a resolution calling for a full, thorough and independent international investigation. the dutch foreign minister was at that meeting, and he put more pressure on the russians to help investigators get answers. >> i hope that russia would now feel its responsibility, act upon its responsibility. if it doesn't, it's going to have an increasingly isolated

position in the international world. >> now, that could include more economic sanctions. european union foreign ministers are meeting on tuesday to discuss that option. now, french leaders are also reconsidering a more than $1.5 billion contract to sell two amphibious assault ships to russia. this is an unprecedented and complicated incident, so solving it will be no easy matter. israel's ground offensive in the gaza strip is taking a severe toll on the lives of palestinian citizens. hundreds have been killed and thousands are displaced. u.s. secretary of state john kerry says his country will immediately disburse $47 million in humanitarian aid. israeli tanks shelled a hospital in gaza. more than 560 people have been killed since israel launched air strikes two weeks ago. israeli troops have now reached densely populated urban areas in the east to destroy underground

tunnels. israel accuses hamas of using the tunnels to fire rockets. many palestinians have fled their homes as fighting spreads. a u.n. body said that as of monday, more than 100,000 have been displaced. u.s. secretary of state kerry met with u.n. secretary-general ban ki-moon in egypt to press for a cease-fire. >> i hope during secretary kerry's and my visit during the region these days, we'll be able to help the parties to agree to a cease-fire in the reasonable form. >> we are deeply concerned about the consequences of israel's appropriate and legitimate effort to defend itself. >> kerry said the united states will work to get discussions started on the underlying issues between israeli and palestinian leaders.

an american navy officer says his chinese counterparts have sent a spy ship to international waters off hawaii. the officer said chinese crews may be gathering intelligence on rimpac, the u.s.-led multinational drill. he said the vessel deployed by china is not part of the flotilla taking part in the drill, but he says the deployment of the ship does not break international law, since it's in international waters, and he downplayed the intelligence risk, saying the u.s. navy has taken all precautions to protect critical information. a u.s. defense department official said it's bad form to send a vessel to monitor the drills the country has been invited to. china's participating in rimpac for the fourth time. 25,000 troops from 22 countries are taking part in the exercise. taiwanese authorities have hosted a group of foreign journalists at their largest naval base.

analysts say they're stating china's claim. they took a tour of the base on monday. it's located in the southern city of cow shung, facing the south china sea. reporters watched a helicopter lower a submarine detector into the ocean. they also saw patrol frigate drills to handle a fire on board after an attack. crews in respective suits worked to put out a fire and rescue the injured. vice foreign minister xi says taiwanese are confident in their capability and believe they can contribute to peace and stability in the region. japan's government has asked local leaders in the country's southwest for permission to station a fleet of controversial aircraft there. senior vice defense minister ryota takeda met on tuesday with

govern the governor. he says they plan for the amphibious unit. the motor aircraft will need parking space and use of the airport's runway. takeda also asked the governor to allow the u.s. marine corps in okinawa to use the same airport. >> translator: the japanese government decided that the airport is the best choice to deploy the self-defense force's ospreys and also to reduce the burden on okinawa. >> governor furukawa noted concerns of local residents about the osprey's station in those levels. >> translator: the central government should fully explain the plan to local communities to get support from residents and insure their safety. >> critics point to the

aircraft's trouble safety record. last month, u.s. officials said a 15-centimeter metal rod may have fallen off an osprey flying over southwestern japan. citizens held a protest in front of the local government office. the organizer of the rally said the airport was not designed for military use and that ospreys are not necessary in japan. traffic accidents caused by drivers using so-called loophole drugs are on the rise here in japan. japanese authorities have decided to label them kiken, which is japanese for dangerous. it's part of an effort to raise awareness of the problems caused by those who use these substances. the drugs are technically legal in japan but contain chemical components that cause hallucinations and simulations similar to narcotics. last month, a man under the influence of the herbs plowed into pedestrians in tokyo, killing one woman and injuring

seven others. police say 38 car accidents were caused last year by drivers who used such drugs in japan, twice as many as the year before. critics say the term loophole drugs gives a misguided impression that they're not dangerous. the national police agency and the health ministry invited the public to offer proposals for a new term. >> translator: we decided to use dangerous drugs. we hope that the new term will make people aware of just how dangerous they are. >> police plan to use the new term as a statistical category and in its antidrug campaigning. let's turn to ron madison for the latest business stories. >> thanks, shery. we're hearing now that the latest food scandal in china has spread to japan. mcdonald's japan has stopped selling chicken mcnuggets at some stores. it took the step after chinese media reported that a processing firm in shanghai was using expired chicken meat.

mcdonald's officials say the chicken dish included ingredients from the plant in shanghai. they say their company has imported about 20% of the ingredients used in its mcnuggets from the shanghai company. in china, the firm is providing ingredients to major fast food chains like kfc, pizza hut as well as starbucks. these restaurants are also withdrawing their products from their shelves. mcdonald's japan officials say there are no reports of anyone becoming sick. they say the chain is now buying ingredients from other manufacturers. they also note it will be able to resume serving the dish by tuesday night. well, analysts at japan's cabinet office are getting downbeat about the country's economic outlook. they've lowered their growth forecast for the fiscal year ending next march. they now estimate the economy adjusted for inflation will grow 1.2%, down 0.2% points from the forecast at the end of last year. the officials reported their new assessment to a meeting of the government's council on economic

and fiscal policy. prime minister shinzo abe emphasized the importance of economic recovery and he pledged to take that into consideration when the government compiles its budget plan for the next fiscal year. >> translator: we need to pull the economy completely out of deflation and expand a virtuous cycle driven by private demand. we need the principle of abenomics to move through the economy. >> during the meeting, they called for a sweeping review of social security spending, which has been rising by just about $10 billion every year due to the nation's aging population. the government is expected to work out budget request guidelines for ministries and agencies by the end of this week at the earliest. let's get a check of the markets now. investors in hong kong and mainland china were showing a pretty strong risk appetite. traders appear to have put aside lingering concerns about the crisis in ukraine and gaza, at least for now. the main indices in hong kong,

shanghai and shenzhen all posting solid gains. the hang seng jumped nearly 1.7%, while the shanghai composite saw gains of more than 1.1%. shares of property developers were higher. speculation mounted that more chinese governments may loosen restrictions on housing. leading the advance were metal firms who went up on the back of rising prices of metals. that does include aluminum and zinc. market players also encouraged by the people's bank of china to refrain from taking money out of the financial system. and the strength in chinese equities supported the rest of the region. you can see here most markets finished in the positive, though indonesia's key index did see declines. investors there anticipating the official results of the country's presidential election. tokyo's nikkei average gained more than 0.8% to finish at 15,343. that did snap a three-day losing streak. a weaker yen boosted overall sentiment today. well, small and midsized

japanese firms are getting a helping hand to expand to other asian countries. japan's government-affiliated bank and thailand's largest con glot glom rate are joining to push for expansion. the bank of japan and the c.p. group will each contribute about $2 million to set up the fund by september. the thai corporation has more than 200 companies in its group. it operates a wide range of businesses that including culture, food and retailing in thailand as well as in other asian countries. the fund will use the thai group's net worth to help japanese firms and it will provide financial assistance as well as support in procuring raw materials. the fund will also try to find customers like convenience stores and supermarkets. the people who make home appliances in japan say they're struggling. they say they're feeling the effects of the increase in the consumption tax. officials at the japan electrical manufacturers association have been tracking

demand for air conditioners, refrigerators and other products. they say in june, domestic shipments fell nearly 7% from the same month last year. it's the second month in a row shipments have been down year on year. their members have been reporting weaker figures since the consumption tax went up in april from 5% to 8%. they say cooler weather has hit shipments of air conditioners. still, they remain upbeat about the months ahead. some appliance-makers are releasing new refrigerators and rice cookers earlier than usual. they're putting them on the market in time for the summer bonus season. okay, that is going to do it for biz this hour. let's check in on the markets.

every morning, investors turn their attention to asia. the tokyo market leads the way. and markets around the world follow. >> from the decisions that could change the course of an economy -- >> to the companies at the forefront of change. >> up-to-the-minute market reports. >> and analysis by specialists from around the world. >> get all the latest business news and insight every day here on "newsline." many people in the arab world are spending this holy month of ramadan with fear and anxiety. in iraq, islamist insurgents and

government forces have been engaging in heavy fighting. the united nations says more than 5,500 people have died in the violent attacks in the first half of this year. as nhk world's as toshi nishikawa reports, the crisis is widening the gap between different religious communities. >> reporter: the holy month of ramadan is a time for reflection for muslim people here. after the sunset, the mood usually turns more festive, but not this year. as the islamist militants continue the attack on government forces, there is so much tension in the air and people look anxious in the capital baghdad. >> translator: i'm always afraid, wondering when the radical militants will enter baghdad. >> reporter: 57-year-old nadim jabori is a shia muslim.

he lost his two sons right here three months ago in a terrorist attack. they were selling vegetables when a bomb exploded. authorities expect that sunni radicals were responsible for the violence. every year, nadim enjoys a family dinner during ramadan, but as he breaks bread with loved ones this time, there is hardly any conversation at their dinner table. last month, nadim was moved by a message of ali al sistaniie, the religious leader of the shia community, calling on people to full on fight against radicals. nadim didn't hesitate to register himself. >> translator: i would have surely let my sons participate in jihad. now that they are gone, i will fight against the sunni radicals for them.

>> reporter: this 47-year-old is a sunni muslim. he lost his daughter in an attack by the shias in 2007 when sectarian violence worsened. his daughter was 17 at the time. ah hamed is opposed to violence and he hopes for reconciliation. >> translator: the radical militants are terrorists. they don't represent us, the normal sunni people. i will not accept the radicals or the government of maliki, who is responsible for this chaos. >> reporter: inside the country's parliament, the political divide between quds, shias and sunnis continues, but they've come together to achieve one small step towards forming a new unity government. they've elected a speaker. their cooperation comes as many on the outside live in constant fear.

people here wonder how much more suffering they'll have to endure as they wait for the fighting to end. atsutoshi nishikawa, nhk world, baghdad. china is still recovering from last week's typhoon, but another storm is headed that way. our meteorologist jonathan oh joins me now. jonathan, what should people there expect from this new system? >> shery, it looks like motmo is going to bring strong winds, strong rains and effects are making themselves known in taiwan and eastern china. you can see the spinning cloud of this particular typhoon. plenty of rainfall falling in the philippines as it connects with the monsoonal front, but now it's starting to affect the southeastern portions of china. but this is not the strongest storm that the country has seen. we have to go to last week, where we were talking about

rammasun. let's take a look at some video. this piece of video came out on saturday. and people in guangdong continued to clean up the debris left behind by the worst storm to hit the region in 40 years. rammasun slammed ashore late last week, killing 18, leaving over $2 billion in damage and a coastal port city, nearly 300 boats sunk or took damage while taking refuge from high waves. and at least 11,000 homes were destroyed or damaged in the extreme winds. typhoon rammasun also swept through the philippines last week, killing over 100, leaving thousands homeless. let's turn our focus back toward motmo now, and this is going to be something we'll be watching out for as we go through the overnight period tuesday into wednesday. that's when landfall in taiwan is expected, but already the impacts have begun. moving north-northwest at 30 kilometers per hour with gusts up to 180. the track will continue to move along the eastern portions of china going throughout the rest

of the week, and we're talking about a lot of rainfall. some areas may see up to 360 millimeters of rain just in a 24-hour period. part of the reason's all that moisture being dragged in. and this is going to move into southeastern china wednesday and into thursday and then tracking along the eastern portions of the country. meanwhile, on a brighter note, the rainy season has ended in the konto koeshin region, so the central and southern part of japan now out of seeing consistent rain, so highs will be moving up. 32 degrees for wednesday. seoul's still a little wet with 37 degrees. eastern china and taiwan and also into the philippines dealing with rain due to motmo. here's a look at the forecast for the americas. the deep south dealing with some rain, some heavy downpours at times with flooding rains at times. also, one tornado reported from the north dakota area because of a system that clipped through. that same storm system expected

to move into portions of ontario and over the great lakes, so be prepared for the possibility of some rain and also some storms, also the deep south dealing with some more rainfall coming up for our tuesday. fire weather danger continues for the western half of the united states, and it looks like the temperatures are also going to be moving up. denver, you'll see highs in the mid-30s, also into oklahoma city. rain and thunderstorms at the carolinas down into the deep south and miami. let's wrap things up with a look at europe. we have a low pressure system continuing to spin its wheels in the central portions of the continent. we had a 5-centimeter-diameter hail reported in ukraine, also dealing with heavy rainfall, close to 100 millimeters in a 24-hour period in southern germany. more rain expected. meanwhile, brighter conditions coming up as we go into the scandinavian peninsula and also warm down toward the iberian peninsula. high of 32 in madrid under sunny skies. hope you have a good day wherever you are. here's your extended outlook.

and we have an update on that train collision in south korea. at least one person was killed and more than 70 injured after two trains hit each other in the eastern city of taebaek. they were carrying a total of about 100 people. they say at least 1 was killed and 76 taken to hospital with injuries. they say others got out of the trains by themselves. police are investigating how the accident happened. and of course, we'll have more on this and other stories at the top of the hour. do join us then. thank you for watching. a7guc

>> welcome to live from paris. let's take a look at what is making headlines this hour. the rebels and ukraine have handed over two black boxes from the downed flight mh 17 to aviation experts. is leaving aon systematic move for a cease-fire in gaza. and the world's leading islamic on the sense the persecution in -- says