o be joined by ramin mil guard from our business desk and meteorologist jonathan oh. but first let's take a look at the hour's top stories. the president of toshiba and two of his predecessors are resigning because of wrong doing at the firm. american and cuban leaders have officially restored their diplomatic relations for the first time in more than 50 years. and a group of so-called counterfeit busters in china are

joining forces to try to stop innocent shoppers from being caught by fake -- buying fake products. top executives at electronics giant toshiba have been forced to quit after a scandal. they are leaving over a systematic wrong doing at the firm. >> translator: we sincerely admit to having cause the trouble. i genuinely apologize to all of our shareholders and those involved in our businesses. i am deeply sorry. >> president tanaka attended an emergency board meeting with norio sasaki and atsutoshi nishida earlier in the day. sasaki has been serving as vice

chairman and nishida as adviser to the board. a day earlier members of a special panel released the findings of wrong doing. they say there was a systemic problem at the firm that went all the way to the top. they also said toshiba will have to write down operating profits between fiscal 2008 and 2014 by about $1.2 billion. the panel members found irregularities in a wide range of toshiba's businesses includinginclude including semiconductors and personal computers. manages at the toshiba group oversee 200,000 employees around the world. they control the top share of nuclear power and have major stakes in other energy-related businesses. toshiba says chairman of the board miramachi will temporarily

replace tanaka as president. now let's go to ramin mellegard at the business desk. that must mean toshiba's corporate culture has a lot to do with the predicament it's in now. >> that's right. and it's the uner workings of the company that is the focus. the process involved is just now coming out in the open thanks to this probe. the third party panel said subordinates found it difficult to receive instruction from top management. executives called the instructions challenges. then-toshiba president issued such a challenge in 2008 to the personal computer division. it called for an increase in operating profits of 5 billion yen or about $40 million at the current rate. the so-called challenge was set one month before the firm compiled its earnings report. the panel says this practice led

to accounting irregularities. the challenges accelerated when sasaki took office. top management at a september 2012 meeting strongly urged the personal computer division to improve operating profits by 12 billion yen or about $100 million in three days. division employees wanted to stop the practice but sasaki dismissed their request. he said tanaka knew about the irregularities. he tried to reduce the profit padding but failed to put an end to it. the panel is asking them to reform their corporate culture so the accounting irregularities don't occur again. now, an expert blames the accounting regularities at toshiba on a lack of compliance. >> translator: there was no expert in accounting or auditing on toshiba's accounting committee. i think the committee was phony.

and was only meant to make it appear the company was following the rules. governance at toshiba was merely nominal given that the committee had so little authority. >> machida says changing corporate culture enforces more than new rules. he recommends constant reviews. moving on to markets. tokyo share prices rose and the benchmark nikkei closed at its highest level in four weeks. our business reporter gives us more details from the tokyo stock exchange. >> investors seem more willing to take a risk. they are more confident about japan's corporate earnings. the nikkei ended at 20,841 up more than .9% and the index posted at six consecutive sections of gains. and the topix finished about .7%

higher. looking from the standpoint of bemplg marks alone, you can say that things are back to normal. looking at individual stocks one of the biggest movers today was toshiba. it rose more than 6.1% as the company released the results of its internal accounting irregularities. that said, one money manager told me his clients are still concerned that toshiba may be the tip of the iceberg. many other stocks did well today. kansai electric power surged on the back of reports they're planning a tie up with a french energy company. ngt data rose 2.3%. as you can see, all of these companies are domestic market oriented and one analyst told me this shows that investors are still trading cautiously. as for losers the worst-performing sector was

metals and mining on the back of falling commodity prices. sumitomo metal mining dropped about 1.6%. tone toho titanium down about 1.7%. let me also remind you that major companies in the u.s. are now announcing their earnings reports. apple and other companies plan to release later today. for tomorrow japanese companies that provide parts for iphones are the ones to watch. reporting from the tokyo stock exchange. moving on to other markets across the asia pacific region most traded positive. investors noticing their want for a bit more risk. australia added 0.35% with bank and consumer staples talks leading six days of gains. but plunging resource related stocks capped a large rally. the bank welcomed chinese efforts to boost growth in

china. the shanghai composite also showed signs of investors regaining confidence. it added two-thirds a prt to close at 4,017. elsewhere in asia hong kong's heng sang followed the moves of the mainland and was up 0.52%. the south korea the kospi added .5% with a strong push. japanese firms investment in china falls by double digits in the first six months of this year. labor costs blamed and a slowdown in the economy. officials of the commerce ministry released dayta january to june. up more than 8% from the same period last year. japanese firms invested a little over $2 billion, down more than 16%.

direct investment from japan last year tumbled 38% as relations with china deteriorated. the decline showed signs of bottoming out in the spring and moves toward improving ties. but many firms remain cautious about investing in china. they say rising labor costs and the weaker yen has made it less profitable to manufacture products there. japanese officials are working out their next move in a trade dispute with south korea. dropping strong hints they'll seek a ruling from the world trade organization. the two countries are locking horns on a ban on some japanese seafood. south korea prohibits the import of all marine products from fukushima. it imposed the ban in 2013 following the nuclear accident at the fukushima daiichi plant. officials from the two governments held talks in june. they met in geneva under wto procedures but failed to make any headway.

as of monday japan has the right to bring the case to a wto dispute settlement panel. >> translator: i don't deny the possibility of holding further talks, but i think if we hold discussions in the same way, we will end up with the same results. >> officials at japan's fishery ministry said the wto would set up panel at japan's request. they say panel members would give their ruling in about one year. bathroom and kitchen tiles can sometimes start to get a little unpleasant after just a couple of uses. a company in a japanese city famous for making towels has develop what had they think is a stylish solution to a smelly problem. >> reporter: this is the new product the company has developed. the towel on the left has underge a special process to keep it smelling fresh. the one on the right has not. they were moistened and kept in

separate containers for about three months. black mold developed on the untreated towel. but the treated one stayed white and fresh smelling. that's because the growth of bacteria was kept in check. imabari city is known as the center of towel production. but its products are facing steep competition from cheaper chinese imports. the company that made the odor-free towel is located here. the secret is a liquid containing platinum nano-particles. platinum breaks down odor-causing elements such as ammonia. it also controls the growth of bacteria. that keeps wet towels odor-free even after multiple uses. this is how the odor-eating towels are made.

first, they are soaked in the nanoparticle liquid. then it is rolled. this ensures the effect lasts even after the towels are washed. >> translator: these are the products we've made so far. >> reporter: the company first tried the process on sheets and pillow cases. but such large items required a huge amount of the platinum nanoparticle liquid. it was difficult to turn a profit. so the firm decided to make hand towels instead. nearly 2,000 hand towels can be made from a 100-meter length of fabric. each one is 20 centimeters

squared. they can produce towels in 30 colors. company officials designed stylish packaging and attractive displays. they're selling the towels in major cities. >> translator: people can simply leave their used towels in their lockers after work after lunch, or after jogging. the towels won't smell even after a week. we can't wait to see how people will use our towels. >> reporter: imabari's towel makers are facing increased pressure from competitors. but they're hoping these special products will help them mop up profits. >> and that's it for business news for this hour. i'll leave you with a check on the markets. > and that's it for business news for this hour. i'll leave you with a check on the markets.

officials from the united states and cuba have reached another historic milestone. they've officially restored diplomatic relations for the first time in over 50 years. on monday the cuban intersection in washington became the cuban embassy. people broke into song as the flag went up over the building. on the same day the u.s. intersection in havana became the american embassy. cuban foreign minister bruno rodriguez met his u.s. counterpart john kerry at the state department. the two held a news conference. >> the cold war ended long ago. and in the interest of both countries are better served by

engagement than by estrangement. and we have begun a process of full normalization that is sure to take time but will also benefit the people in both cuba and the united states. >> we both ratified our normalization relations knowing this will be a long and complex process that will require the willingness of both countries. >> both sides plan to accelerate talks on normalizing relations and lifting the sanctions on cuba. but in the u.s. republican lawmakers are criticizing the obama administration's move. they say he's conceding too much to cuba. a top u.s. diplomat is set to meet japanese officials. to talk about the abduction of citizens by agents for north korea. kim is washington's steshl representative for north korean

promise. he's due to spend three days with officials. his visit comes after pyongyang released a report into the abductions. john kerry met with the foreign minister of mongolia which has a special diplomatic channel with north korea. officials are likely to share information gleaned from kerry's meeting. kim is also expected to discuss relations between japan and south korea. officials in washington hailed a recent meeting between the foreign ministers of the asian neighbors as a positive development. leaders in japan and south korea have been at odds over historical issues. japan has lodged a protest over a visit by a russian cabinet minister to the northern ter toirs. russia controls the islands. japan claims them. >> translator: the visit by a high ranking official we lodged a protest because it cannot be tolerated and it is extremely

regrettable. >> suga said the embassy responded by stating the position on the matter and it will be conveyed to its government. russia's health care minister visited on saturday. she inspected facilities including a hospital built last november. the japanese government maintains the island and three others in the northern territories are an inherent part of japan's territory. it says the islands were illegally occupied after world war ii. suga was asked by reporters about the impact on putin's planned visit to japan expected some time later this year. he responded that the schedule will be arranged after taking various factors into consideration. chinese authorities are cracking down on the sales of counterfeit products in the country. a study shows more than 40% of

goods sold online are fakes. now an increasing number of citizens are stepping in where it isn't working. heading the consumer crusade is a group of so-called counterfeit busters. >> reporter: tourists from in and around the country flock to this shopping mall in beijing. hundreds of retailers here sell well-known brand goods but many of them are knockoffs. >> reporter: the prices are about one-tenth of those of real products. but millions of tourists snap them up every year. this store used to sell phony goods. a consumer crusader filed a

lawsuit and triggered the store's shutdown. >> translator: this is where my mission started. the first shop. >> reporter: wan leads a group of ordinary people to track down counterfeit products. they call them counterfeit busters. wan has handled more than 3,000 cases. he takes each of them to court and gets the counterfeiters to pay sizable damages. wan's crusade has attracted a nationwide movement. many have joined his claim. they reportedly number around 100,000 now. wan says individual citizens need to keep a close eye on what companies are doing in today's china. >> translator: capitalist countries allow consumers to form organizations to fight dishonest businesses.

but in china we have never had consumer rights groups. >> reporter: companies are also taking action. a musical instruments maker in shanghai has set up a special division to fight against groups that are copying its brand. managers have found many pirated goods online. but vendors often change their online ids and resume sales elsewhere. this woman has been making harps for many years. she teaches her colleagues how to spot fakes. >> reporter: the fake harp in the back looks almost authentic but professionals can tell the difference.

>> translator: the way the strings feel to your touch is entirely different. see how they move when you pluck them. it's easy to get tricked if you don't know authentic harps. >> reporter: her colleagues count down the counterfeit maker to a poor village in hunan province. they went to the place with local police. >> reporter: most counterfeits are made in four regions. millions of those living in poverty are earning their wages in the fake goods industry. wang hai says the problem reflects the widening wealth disparity. the counterfeit busters are

calling to gain credibility in made in china labels. >> and that's probably one reason why they all come to japan to shop. the weather was ideal for water-related activities today for the greater tokyo area. highs reached the 35 degree celsius mark or about 95 degrees fahrenheit. here with the local and international weather is jonathan oh. >> hello. yes, we definitely are feeling summer over japan as we see the sunny conditions taking place. but any time we transition away from the rainy season we have a lot of the maritime influence moving over the country. when that happens it feels sticky on top of the fact it is quite warm. we saw temperatures in the mid-30s in tokyo. when we factor in the humidity it felt like the upper 30s. it's going to be like that a little bit longer into the summertime pattern. the rainy season front has

lifted extending over into the korean peninsula. so we will continue to see rainy conditions cloudy conditions as we progress through the rest of the month of july. now, we also had a very rainy setup for the southern islands of japan because of the remnants of a tropical depression. so as that moved to the north and started to spread influence out, it also brought a lot of rainfall into the southeastern portions of china. as we talked about for quite some time this area does not need any more rain. but it looks like we're going to see even more of that as we go into wednesday. now, let me point your attention down toward this area of moisture. that is halola. sunday it weakened into a tropical depression. now it decided to be a typhoon again. so we're looking at a strong typhoon. it is moving west at 20 kilometers per hour. gusting to 180 with pressure at

965. the system will continue to move toward the west. it is expected to head toward the okinawa islands before it makes a very hard turn to the northeast. and that's when we'll see what kind of impact it will have. we are expecting it to stay as a strong typhoon. it will have some resistance. a turn will be an interesting part of the scenario. we're going to see how this continues to move as it goes through the next several days. tokyo 35 degrees under partly cloudy to mostly cloudy skies. and we see the influence of the remnant of the low pressure system rolling over the area. looking at north america, we have that big low pressure system into canada. extending within a cooler front pushing towards the south. that's going to bring the possibility of some unstable weather. thunderstorms expected to atlanta and miami all the way into western denver and oklahoma

city and houston. look out for some active weather as we go through tuesday. now, wrapping things up with a look at europe we have a low pressure system that has pushed away from the central portions of europe and moving into western russia. this system has the potential for producing unstable weather. so look out for the possibility as we go through the morning hours of seeing thunderstorms, strong thunderstorms into moscow. also extending down into the further southeast. large hail and tornadoes all part of the scenarios. we'll look out for this throughout the day. then eventually that will push towards the east. meanwhile, back towards the west we're talking about heat cracking up into places like seville. rome also seeing 40 degrees coming up on wednesday. these are very hot conditions. way above normal for this time of year. please make sure you're taking care of your health. stay cool wear light clothing and if you can stay inside do that as well. hope you have a good day wherever you are.

here's your extended outlook. a russian billionaire is teaming up with one of the world's most celebrated scientists on the search for

alien life. the pair is spearheading a ten-year project that will use the world's largest telescopes. tech billionaire yuri milner spoke to reporters in london. >> man has a deep need to explore, to learn, to know. that it's important to us to know if we are alone in the dark. >> organizers said the project will analyze radio signals from space using giant telescopes in australia and the u.s. the search will cover the milky way and about a hundred nearby galaxies. they say advances in computer technology will make the images more sensitive than previous ones. and they'll be able to cover the ten times the amount of sky. they say it will take an open approach to data and they will share all their findings. let's hope they can prove that man kind is not alone.

"newsline" came to you from your studios in tokyo where i am not alone. i'm james tengan. bye for now.

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