violating sanctions. the united nations says a number of illegal exports are finding their way to north korea. u.n. officials say a number of countries have been exporting luxury goods and potential missile parts to north korea. in violation of security council sanctions. it also says the deals are being made through china. a u.n. panel of experts recently compiled a report on how the sanctions against north korea are being implemented. the report notes north korea imported pianos from japan and planned to buy yachts from europe. it also cites cases in which items that could be converted for use in ballistic missiles

had been exported to the country. the report promises to investigate allegations that the transport and launch vehicle for what appear to be a north korean intercontinental ballistic missile was purchased from china. the vehicle was displayed in last month's military parade. it also points to cases of forged documents and other illegal practices in the chinese port city of talian where the illicit trade deals were arranged. it urges u.n. member states to step up their freight inspections. u.s. researchers say new satellite images show that north korean officials are making progress on a new nuclear reactor. they say it could go into operation within two year researchers at johns hopkins university examined photos of a lightwater reactor under construction in yongbyon. they compared the one on the left taken in march with the one on the right taken in april. the researchers say the

cylindrical parts of the containment building appears to be higher in the new image. and they say work on a roof adjacent to that area has been completed. north korean officials claim the plant will be used to produce electricity. with tensions rising over north korea's activities, the united states and south korea are working together to keep their militaries ready. air force personnel from the two countries are staging their largest ever joint drill on the korean peninsula. about 50 fighter jet bess longing to both countries are taking part in exercises nicknamed max thunder. the drills began on may the 7th and continue through friday. the allies' air forces holds regular drills twice a year to prepare for the possible aift confrontation with north korea or attacks on the south's military bases. during one exercise, f-15 and f-16 jet fighters took off from

south korea's air base. the pilots performed role play exercises taking the parts of ally or enemy. guided bombs were displayed at the air base. the weapons can be loaded on fighter jets to attack enemy aircraft or ships. >> and when we train together, we know that there's no force that can beat us. >> translator: any power that threatens peace on the korean peninsula will be thoroughly defeated. the japanese economy posted an increase for a third straight quarter. the cabinet office said on thursday the japan's gross domestic product grew 1% in the january to march period compared to the previous quarter. that translates into an annual growth of 4.1%. personal spending rose 1.1% due to higher auto sales. this boost was supported by

government subsidies for ecofriendly cars. public investment rose 5.4% as reconstruction in areas hit by last year's disaster boosted demand. and exports grew 2.9% due to a pause in the yen's rise. meanwhile, private sector investments on plant and equipment fell 3.9%. commenting on the latest growth figures, economic and fiscal policy minister pinpointed the need to keep a close watch on the eurozone. >> translator: the japanese economy is likely to be on a moderate recovery track thanks to disaster reconstruction efforts. however, we must keep a close watch on downside risks such as the eurozone crisis. the government will be ready to take necessary measures. figures just released show some encouraging signs in the

japanese economy. the cabinet office says one reason for the growth is more personal spending. nhk world's akihiko looks at how some people in japan are spending their money. >> reporter: the march 11th earthquake dampened personal consumption. but that has now picked up due partly to the government's green auto subsidies which were introduced at the end of last year. buyers of eco-friendly vehicles received discounts and tax breaks. as a result, car sales surged. meanwhile, shoppers are spending more. according to the japan department stores association, sales at over 250 department stores across the nation were up 14% in march compared to a year ago. the kinds of items in high demand have been a surprise for store operators.

these high-end wrist watches are hot selling items at the prestigious department store in downtown tokyo. they are hoping to boost overall sales after a long slump in consumer spending that followed last year's tsunami and earthquake. luxury watches costing as much as $10,000 are the best sellers. sales of these watches have grown gradually from the end of last year and are now up 30% from spring 2011. >> translator: i am looking for a dressy watch, something that's different from what i have already. >> translator: customers seem to be really tired of cutting back on their spending in the wake of the march 11th disaster. people are becoming frustrated just saving money. this is what's driving people to buy luxury goods like watches.

>> reporter: but will japanese shoppers continue to boost the economy? to find out, i spoke with an economist. >> translator: reconstruction demand in the battered northeast will help drive growth, and the job market is gradually getting better which will boost consumer spending. i think japan's economy will continue to grow through the first half of this year. >> reporter: of course, it's still too early to declare the economy is back on track. but with clearer signs of improvement, there seems to be light at the end of the tunnel. akiko okamoto, nhk world, tokyo. major japanese appliancemaker toshiba has halted domestic production of tvs, another sign of japan's struggling tv business. industry sources say toshiba has shut down all production lines

at its tv plant near tokyo. the maker had gradually cut out -- at the plant. demand for tv sets has been on decline since sales of digital tvs peaked with the shift last year to ter restrial digital broadcasting. toshiba posted a loss of $620 million in the tv business last fiscal year. in an intense price war with south korean-makers. a veteran judge will lead greece toward a pivotal vote. he will serve as prime minister of a caretaker government during the next month. then greeks will choose a new government that could affect their place in europe. >> he headed the council of state. he was sworn in as an inauguration ceremony in the presidential palace. he's expected to work with a small cabinet. the key issue in the elections is the austerity program.

they are necessary for bailout loans from the european union and international monetary fund. the party opposes austerity. it is expected to increase its number of seats in parliament. the new democracy party came out on top in the last elections. its leaders warned that scrapping the austerity package could force greece out of the eurozone. european union leaders warn greek voters that there is no alternative to austerity. they say there is no way of changing the terms of their bailout. >> the commitments they get by greece and all the member states should be kept. not because european union or euro area wishes it to be like that, but because there is no another alternative. that has less pain and less difficulties. >> barroso insisted greek leaders must implement the package of tax increases and

spending cuts. he asked voters to consider the impact of the elections on other countries in the eurozone. and the head of britain's central bank says that the country is studying emergency measures. that's in case the neighboring eurozone breaks up. >> and our biggest trading partner, the euro area is tearing itself apart without any obvious solution. contingency plans are being discussed and have been for some considerable time between the government, the bank of england and the fsa, and that will continue. >> but bank of england governor mervin king did not give details. britain is not a member of the eurozone. nine countries involved in talks on a free trade deal in the pacific region agreed to speed up their negotiations. chief participants from the united states and the eight other nations wrapped up their latest round of talks on the

transpacific partnership on wednesday in texas. >> we have made better than expected progress here this week. we plan to move -- continue moving full steam ahead and hope to take another major step toward conclusion of the agreement at this round in july. >> the chief u.s. negotiator also said the country's reported their individual consultations with japan. canada and mexico about their participation in the tpp talks. they agreed to continue those consultations. but the discussions on tariffs and intellectual property protection are reportedly stalled. it remains unclear whether the negotiations will be concluded by the end of this year as the u.s. hopes. some policymakers at the u.s. central bank have suggested the need for more monetary easing. the economy turns for the worse. the federal reserve released the minutes of its most recent policy meeting.

it shows that the committee members maintained that the u.s. economy is recovering at a moderate pace. but they said the economic expansion will be capped if the european debt problems get worse or the u.s. government tightens its budget. some policymakers express the need for furth monetary easing measures. that's only if the economic recovery loses momentum or risks of a slowdown increase. the fed minutes go against market speculation that policymakers are reluctant to provide more funds to monetary money markets. that's because the economic outlook has become brighter due to stronger consumer spending. major japanese retail chain eon will open its stores two hours earlier. that's to avert a power shortage while all the nuclear reactors are on idle. eon says it will open some 1,400 of its stores from 7:00 a.m. for three months starting on june the 1st. that's more than 90% of its

stores. the retailer says this will suit many customers who want to shop before the weather gets too hot. closing time will not change, so the stores will be open longer. eon says the change will save power by reducing crowding in the afternoon when air conditioning demand peaks. visitors to the world's fair are finding out how people can live in better harmony with the world's oceans. the expo opened last saturday in yeosu south korea. thousands are learning about how technology can help preserve the waters around us. anna jung reports. >> reporter: i'm at the expo digital gallery. it's on the main street of the expo. it's a good spot for watching visitors from south korea and so many other countries. since the opening day on may 12th, the event has attracted

156,000 visitors. let's join nem and see what this expo offers. you can drop in to pavilions hosted by more than 100 countries and ten international organizations. the expo theme, the living ocean deals with preserving the diversity of the ocean. to get its message across, the exposition makes full use of the latest digital technology. >> presentation is great. i think that it's really vividly expressed. >> reporter: what makes this expo like no other is this information system. >> it's everywhere. the media kiosks give information about restaurants, both on and off the expo site.

people can make sure they get into the pavilions they want to visit by making a reservation. by using their cell phones, people can get the best experience possible at this highly digitized smart expo. the expo will continue until august 12th. by the time it closes, it is expected that 10 million people will have passed through. planning such a large event presented challenges. but with help from area residents, organizers have pulled it off. the government felt the expo would be a good chance to increase tourism in the country's south. that is why it chose yeosu as the host city. but officials realized they

faced a shortage of hotel rooms for visitors. when they counted rooms, they realized just how serious the shortage was. >> translator: we needed 36,000 rooms, but we found we only had 5,000. it was definitely not enough. >> reporter: it was locals who came to the rescue. many families offer home stays to expo guests. the kings wanted to help. they found yeosu's homestay network online and signed up. here the kings welcomed a guest from india. she pays around 26 u.s. dollars a night. the room comes with breakfast. before this guest, the kings also rustled up a homemade korean dinner.

>> we usually do more spicy. >> translator: we were worried about the language barrier, and about food. but we thought if we had communication problems, we could use internet translation services. so we decided to join the program. >> they affectionately taking me inside the house. welcomed very warmly. >> reporter: not only families but also temples and churches are hosting foreign and domestic guests. neighboring citieslso for hotels. now yeosu has enough rooms for its visitors and it provides them with the type of hospitality koreans are famous for. >> thank you very much there. anna jung in yeosu there. japanese and chinese officials are trying to resolve their differences over the east china sea. the two sides have run into a

number of conflicts, including the collision in 2010 of a chinese trawler and japanese coast guard vessels. the two sides agreed to work together on possible emergencies in the area during the first round of talks in hanjo eastern china. about 50 foreign defense and coast guard officials from the two countries took part. representatives of both sides restated their claims of sovereignty over the senkaku islands. and they asked their chinese counterparts to resume negotiations over a treaty on gas fields in the sea. people in japan's northeast are focused on overcoming the challenges of the 2011 disaster. but it won't be easy. they have to rebuild homes, businesses, entire communities. we'll show you their struggles and their successes on "the road ahead" every wednesday at 1:00 p.m. japan time here on "newsline." japan's self-defense forces have rolled out a new

radioactive-proof truck. the $9 million vehicle is designed for work in disaster zones, including nuclear accident sites. the air tight truck is equipped with an air filter to protect passengers from toxic gases and bacteria. a sensor on the outside can detect and collect data about radiation and other dangerous substances. operators can send the information straight from the truck to a command center. sdf personnel can then analyze the situation and plan ways to deal with it. the truck's designer modified an older model that was used during the nuclear accident in fukushima. sdf leaders have deployed three of the new vehicles. they plan to eventually use dozens throughout japan. for now, we are seeing sunshine here in tokyo, but will it continue? let's turn now to rachel ferguson for the world weather forecast. >> yes, lovely weather right now, but it isn't going to continue. we're likely to see pretty nasty

thunderstorms across central and northern parts of japan. temperatures have been soaring the last couple of days. and that's part of the problem. as we have a low that comes over with some very cold air aloft. those two are going to interact and we'll be seeing potentially hail in those thunderstorms. as well as some very strong gusts. now it's not just the rain which will be heavy, but those thunderstorms. and then down towards the south, talking of the rain, heavy rain has been targeting southern parts of okawa over the last week or so. also under the influence of that front has been taiwan. now both areas are likely to see continuing flooding rains and a potential for rockslides as well as land slides. we're talking about rain. about 40 millimeters in the space of just one hour is possible for southern parts of -- for the southern japanese islands. we're also seeing heavy rain here in coastal china down towards the south. that's because this area

sandwiched in between the front and the new low that's developed in the south china sea. more heavy downpours here. for indochina, the monsoon is starting to rev up. we're seeing heavier rain coming in towards thailand and western parts of indochina. that's just going to continue over the next couple of months as we see the monsoon strengthen. let's talk about what's happening in the u.s. and canada. up towards the north, a low pressure system moving along the u.s./canada border. a front associated with it will see thunderstorms and, in fact, those thunderstorms will be popping up down the rockies. up towards canada in the northeast, you could even see some very late snow. about 15 to 25 centimeters is possible. now down in the southwest, conversely, it's going to be very, very warm, hot indeed, and with low humidity and strong winds coming through, that spells fire danger. so critical fire weather in parts of utah as well as nevada and arizona. out towards the east, we're still seeing a lot of

thunderstorms and instability for the southeast. this long front that's been stalled out, and is detached to the low in northeastern canada. thunderstorms will continue in eastern canada. also northeastern parts of the u.s. up in new england. you are likely to see some severe weather breaking out today. could even contain the potential for tornadoes which is quite rare so far up to the northeast. now here are your temperatures. 24 new york city. those temperatures are going to be soaring. 39 degrees in phoenix. as you can seerk that heat reaches all the way up into central canada. winnipeg, 31 degrees for the high. let's go now to europe. things are starting to get once again very unsettled across the british isles. a new system coming in here. and that will be bring something short-time heavy rain and strong gusts. we've had some reports of hail as well in parts of scotland. a new low moving in towards the bay of biscayne is going to be bringing again, thunderstorms, but this time also bring

something cooler air which is very much needed across the iberian peninsula. so we'll see temperatures moderate into the beginning of the week next week. from scandinavia right down to the southeast, a string of low pressure systems keeps things very unstable. this one here over the balkans is particularly slow which means a lot of heavy rain over the same area for the next couple of days. and that could certainly up the risk of flooding here. temperatures to the east are going to stay very warm indeed. 25 in moscow. 22 in kiev. cooling down in the center of the continent. and then one more hot day at least in the iberian peninsula. i'll leave you with your extended forecast.

our top stories once again -- u.n. officials say a number of countries have been exporting luxury goods and potential missile parts to north korea.

in violation of security council sanctions. a u.n. panel of experts recently compiled a report on how the sanctions against north korea are being implemented. the report notes north korea imported pianos from japan and planned to buy yachts from europe. it also cites cases in which items that could be converted for use in ballistic missiles had been exported to the country. the report promises to investigate allegations that the transport and launch vehicle for what appear to be a north korean intercontinental ballistic missile was purchased from china. the vehicle was displayed in last month's military parade. it also points to cases of forged documents and other illegal practices in the chinese port city of dalian where the elicit trade deals were arranged. u.s. researchers say new satellite images show that north korean officials are making progress on a new nuclear reactor. they say it could go into operation within two years. researchers at johns hopkins

university examined photos of a lightwater reactor under construction in yongbyon. they compared the one on the left taken in march with the one on the right taken in april. the researchers say the cylindrical part of the containment building appears to be higher in the new image. and they say work on a roof adjacent to that area has been completed. north korean officials claim the plant will be used to produce electricity. with tensions rising over north korea's activities, the united states and south korea are working together to keep their militaries ready. air force personnel from the two countries are staging their largest ever joint drill on the korean peninsula. about 50 fighter jets belonging to both countries are taking part in exercises nicknamed max thunder. the drills began on may the 7th and continue through friday. the allies' air forces hold regular drills twice a year to

prepare for the possibility of a confrontation with north korea or attacks on the south's military bases. during one exercise, f-15 and f-16 jet fighters took off from south korea's air base. the pilots performed role play exercises taking the parts of ally or enemy. guided bombs were displayed at the air base. the weapons can be loaded on fighter jets to attack enemy aircraft or ships. >> and when we train together, we know that there's no force that can beat us. >> translator: any power that threatens peace on the korean peninsula will be thoroughly defeated. and that's all for now on this edition of "newsline." i'm yuko aotani in tokyo. we'll be back with more news at the top of the hour so do join us then. thank you very much for watching.