welcome to "newsline." i'm catherine kobayashi in tokyo. first a look at the headlines. a look at the iraqi government forces are battling islamic militants as u.s. military advisers arrive in the country. russian president vladimir putin has taken a step to support kiev's ceasefire.

he has asked parliament to revoke his authority to use military force in ukraine. and they try to lure businesses to set up offices in the southern japanese island chain. u.s. troops have arrived in baghdad. they are increasing a diplomatic and military commitment as fierce fighting continues between iraqi government forces and islamic militants. >> two special operations teams of approximately 40 personnel previously assigned to the embassy through the office of security cooperation have started their new mission. >> reporter: kirby also said another 50 u.s. personnel will join the operation within the next few days. government forces are carrying out air strikes on militants. the sunni extremists are expanding their control in northern areas near the border with syria. the united nations said at least 1,000 people have died in the fighting in iraq over the last

two weeks. the majority were civilians. the u.s. secretary of state john kerry on tuesday visited the curdish autonomous region in northern iraq. he met with the leader of the regional government, masoud barzani. kerry said told barzani he needs to form a national unity government. russian president, vladimir putin has taken a step to mitigating the crisis in ukraine. he asked parliament to cancel a bill letting the into the country. russia's presidential office made the announcement on tuesday. russia's upper house of parliament passed the resolution in march. the announcement came one day after pro-russian separatists

in eastern ukraine said they would respect a ceasefire declared by the president, petro poroshenko. leaders from western nations have repeatedly urged russia to help deescalate the crisis in eastern ukraine. they have suggested further sanctions are possible. tensions are running high in eastern ukraine. separatists shot down a helicopter on tuesday, killing nine government soldiers on board. president poroshenko has instructed his forces to fire back if attacked. ukraine's presidential office issued a statement after the helicopter attack. it said the government may end the ceasefire if the pro-russian militias continue to attack pro-government troops. he halted the military operation on his side and called for pro-russian soldiers to disarm within seven days. the leaders of the separatist groups agreed to accept the

ceasefire on monday. it's time now for the latest in business news. this week saw a former u.s. treasury secretary release a report saying that american businesses need to deal with climate change as a business threat. ai uchida joins us from the business desk. what are japanese companies doing to deal with the threat? >> we are seeing an example from a leading car maker. managers at toyota want to take the lead in what they see as a promising market for fuel-cell cars. they will sell the vehicles for $70,000 each by next march. fuel-cell cars run on electricity from the chemical reaction of hydrogen and oxygen. they started leasing fuel-cell vehicles 12 years ago for $12,000 a month. so far only a few customers, like government offices have been using the lease service due to the high cost. toyota has reduced the number of expensive parts that go into the

cars to make them more affordable while maintaining quality. it's now getting ready to mass produce the vehicles. they'll sell for about $70,000 each. other automakers are getting ready to enter the market. honda will launch fuel-cell cars next year and nissan will sell them three years from now. but analysts say boostingales depends on increasing the number of hydrogen fueling stations. members of the prime minister shinzo abe's government have approved his policies for growth and economic and fiscal reforms. officials will start to put together budget request guidelines for fiscal 2015. government ministries and agencies will use them as a yardstick when making their budget requests. one aim is to cut the primary deficit recorded in half by 2015. another is social welfare.

it now accounts for almost a third of total government spending. abe and his government want to keep the increase in welfare spending as low as possible. based on those policies, finance ministry officials will compile budget request guidelines by the end of july. but they won't be able to set a precise ceiling on spending because the government accurately predict total tax revenues. the government is considering a raise in the consumption tax to 10% in october next year. the final decisions will not be made until later this year. prices of corporate services in japan were up in may. bank of japan officials say the services producer price index rose 0.9% from a year earlier. it was 99.8 against a base of 100 set in 2010. that excludes the consumption tax. officials say the increase is due to a rise in advertising fees.

let's see how markets are starting this day. investors are worried by what's happening in iraq and they are selling stocks. tokyo share prices opened lower following the worst loss in a month on wall street. analysts are saying that investors are selling japanese shares to take advantage of the rally. now the dollar-yen pair is struggling to break out of a narrow rage. people who track the market say that dealers are inclined to buy the yen against the dollar as they say it is one of the safer currencies in asia. and oil traders drove up the price of the benchmark wti oil futures. and looking at other asian markets. the kospi is lower by a half percent. in china, shanghai's key index

is down .7%. let's take a look at what's happening in hong kong, bucking the trend with a slight gain. many japanese companies in search of cheaper labor have shifted production to other asian nations but rising wages and political unrest are raising concerns. officials in okinawa are stepping in to provide an alternative. they are inviting firms to do business in the southern japanese island chain and they are offering hefty economic incentives. >> reporter: this machine parts manufacturer opened a factory in okinawa last year. the company chose japan prefecture because of the generous government benefits. the factory is in 120 hectares special economic zone. factory building costs here are

subsidized which means lower startup expenses. the prefecture expanded its tax benefits in april to sharpen the company's competitive edge. new >> we plan to -- >> reporter: businesses can benefit from bonded area status. they can install product without paying customs duties. this company plans to assemble parts made elsewhere into asian into diverse products. >> competition is fierce so we pe pared our prices to the bone.

>> reporter: 38 companies now operate in the area but about half of the land is not occupied yet. prefecture officials are emphasizing the short flight time between okinawa and major asian business centers. they want to attract more industries with lots of employees to achieve sustainable growth. officials in okinawa prefecture are using their advantages to try to appeal to not only manufacturers but also the it industries. this company develops technology to transfer data using audio signals. it moved its head office from tokyo to okinawa two years ago. it was attracted by a prefecture subsidy for r. & d and research support from a local university. the company took part in a promotion event in taiwan last

year. the trip was also subsidized by the okinawa government. the event led to a deal with a taiw taiwanese company. >> translator: in the future we want to make a deal with a company in hong kong and then we'll target greater china, singapore, thailand and of course, vietnam. >> reporter: but keeping up with the growth in i.t. is a challenge. the prefecture is now building a large capacity data center and underwater capable will connect the center to hong kong. >> translator: when businesses expand into asian markets where should they be based? singapore will remain an option

but okinawa could also become an important base for japanese companies. >> reporter: okinawa's government is also offering its array of economic benefits to foreign companies. officials are trying to persuade them to view these islands as their land of opportunity. >> and that's all for now on business news. i'll leave you with a check on markets. militants have reportedly taken more than 60 women and

girls in northern nigeria. officials suspect it is the work of boko haram. it took part in the areas worst affected by the group's increasing attacks. they raided the village of maiduguri. they then kidnapped the victims. in april members of boko haram took more than 200 schoolgirls. the united states and other countries sent experts to nigeria to help with rescue efforts but so far they have failed to find any of the girls. the militant group has staged a number of attack across the country. they are accused of setting off a bomb in a world cup soccer viewing site. more than 20 people died. boko haram members want to create a nation under their interpretation of islam. a former aide to the british prime minister is facing a possible jail sentence. andy coulson has been found guilty of conspireing to hack

phones for a popular tabloid. he was editor in chief of the paper before working for david cameron. a london jury on tuesday handed down the verdict for coulson. he worked at the "news of the world." he was cameron's public relations director. the jury acquitted five others who were standing trial on the same charges, citing a lack of evidence. rupert murdoch closed the paper three years ago following the scandal. editorial staff had illegal access to mobile phones of celebrities. they listened to voice mails of actors, members of the british royal family and crime victims. >> i'm sorry i employed him. it was the wrong decision and i'm clear about that. >> cameron says he confirmed that the former editor was not involved in phone hacking. but opposition parties plan to question him about his decision to hire him as an aide.

now we have the latest world cup. in group c, japan needed a win against colombia in order to have a chance of progressing. their chances were slim but fans you -- watched the game with high hopes. >> reporter: japanese supporters got up earl in the morning as they believed the team would advance to the round of 16 by beating colombia. the fans were stunned by colombia's opening goal in 17th minute. the japanese defender was booked and a colombian midfielder took the penalty. unfortunately, colombia draws the first blood, japan is down 1-0. they have to come back. japan stepped up the pressure after colombia got its first goal. the striker received the pass

and headed the equalizer just before halftime. the japanese supporters were still hoping for victory. japan scored! yes! yes! it's 1-1. japan scored and it's a tie ball game. we have hope! [ speaking foreign language ]. japan possessed the ball and had more shots than colombia but in the 55th minute, martinez scored colombia's second goal. martinez got another in the 82nd minute. colombia added a final goal just before the whistle.

the final score, colombia, 4, japan, 1. but we learned one thing. but japan has to raise their game to complete against the world powers. so japan has a lot of homework to do. [ speaking foreign language ]. there was more drama in the group's other game where greece and the ivory coast battled. the greek player found the net in the 42nd minute. a draw would send the africans through. but in the dying seconds of the

game, the referee awarded greece a penalty. and the shot was slotted home. colombia topped the group with three straight wins and greece makes it to the knockout stages for if first time. two former world champions played an ill-tempered game in group d. luis suarez made his mark on the game with his teeth more than his feet. the game was still scoreless or rather goalless in the 80th minute when suarez appeared to bite chiellini. one minute later, a head fresh the corner was enough to see the south americans through. four-time world champions italy is heading home.

in the other group d match, costa rica faced an already eliminated england. the game ended 0-0. costa rica finishes top of group d with seven points. uruguay comes second with 6 points. italy and england couldn't make it past the group stage. dried sweet potato is a popular japanese snack. but for one ambitious producer of the treat, the home market isn't big enough any more. so he's growing his business on the other side of the world. >> reporter: the sun is shining and the crops are ready for harvest. but one man's thoughts are a long way from home. this man runs a company that grows, processes and markets sweet potatoes. for some time now he's been itching to expand his business.

his ambition has its roots in the fukushima nuclear plant disaster of 2011. no radioactivity was detected in his produce but consumers were worried and sales plummeted by two-thirds. the business recovered but -- learned the best insurance could be to have different markets and production sites. >> translator: i have a growing desire to look for new possibilities, go out into the world and explore the unknown. >> reporter: scanning the horizon -- set his sights on east africa. tanzania seemed like a promising place to start. it's a world-leading producer of sweet potato. the man in charge of production at -- company is --. last september, he arrived on a fact finding mission arranged by

an aid organization, jica. >> translator: these are good fields. >> translator: the first discovery, the local potatoes are grown without pesticides or fertilizers. his next step was to see if he could process them. this invols steaming and drying. in tanzania potatoes are normally boiled. >> translator: what's the sugar content? >> translator: 11%. >> translator: the sugar content is lower than in japanese potatoes. >> reporter: he soon noticed other differences. >> translator: the temperature is 30 degrees. humidity is 26%. we don't get dry heat like this in japan. >> reporter: the next day -- >> translator: i think another half day of drying should be all right. >> reporter: the drying process takes seven days in japan.

it took less time here because of the dry climate and strong sunshine. >> translator: it's just like our sweet potato. >> reporter: some potatoes yield a better flavor than others. >> translator: these are very sweet. >> reporter: he is finally convinced tanzania offers lots of potential for transplanting the business. back in japan -- is convinced too. he has decided to set up a production plant if tanzania. he's already arranged the funding. three companies are investing $30,000 in the venture. the goal is to produce dried potato for consumption in tanzania and export to other countries. -- is not alone in his excitement. these officials from the tanz kneeian embassy and a

trading company are equally impressed. the production method is simple and it's a great way to preserve sweet potatoes. they see great potential for it in their country. >> it is late to go to africa and have been struggling all along. so we are sure if it is going to be successful in tanzania, it will probably motivate other private companies to go to tanzania. >> translator: we are trying to create an environment in which we can learn together, work together and make a profit together. >> reporter: success will mean more jobs for tanzania. determined to spread his wings -- is hoping to start production this year. it's time now for a check of the weather. people in the u.s. state of minnesota are dealing with severe floods. mai shoji joins us with the details. >> the rivers in and around minnesota in the u.s. are at

major flooding level. let she me show you picture from delano, minnesota. see what's happening here. extremely heavy rain hit minnesota on tuesday causing this widespread flooding. a state of emergency was extended for 35 counties as swollen rivers threaten to cause more flooding and damage. the river crested at 6.4 meters on monday, the highest in 51 years. residents are look forward to the waters receding but daytime thundershowers are expected throughout this week. i'm afraid we still have this storm system that is responsible for the widespread flooding in and around minnesota still lingering over the great lakes region. is it on its way to the east but it has potential of spawning tornados. in fact we have three tornado touchdowns recorded in indiana and damaging buildings in and around indiana motor speedway. and that is likely to pull into the new england states as well as the mid-atlantic.

urban flooding will be at very high risk on top of the thunderstorms associated with that. the midsection of the united states will be in severe weather as well. stretching from eastern montana through denver and into western kansas. we have patches of flash flood warnings and watches in and around kansas. but it's no precipitation in sight in the southwest. i feel like a broken record for saying this for a couple weeks now and it's likely to prolong with the ongoing drought conditions. the temperatures are high, 40 degrees in las vegas and phoenix reaching 41. try to stay indoors and away from the sun. stay hydrated also if you in these vicinities. now across japan, the capital of this country has been battered with hailstorms yesterday. we have some footage to show you it's an incredible picture here coming out. this is not snow. this is hailstones. this is not a river. this is just a small street in

between houses. and this was prolonged for quite some time making it kind of like a winter wonderland but they are hailstones. and in fact the atmosphere is very unstable yet again and there is a huge temperature difference again with the upper level and the surface ground. in and around the central locations including tokyo we are likely to see more rainfall of 100 millimeters. 50 millimeters could fall in an hour. even tornadic can't be ruled out in and around tokyo. to the bigger picture, the rainy season band stretches into southern and eastern china. and we are likely to see 150 millimeters of additional it is certainly going to be raising the risk for flooding and landslides. in the south a chance of mudslides in manila. beijing, the atmosphere is unstable. we are likely to see

chance of thunderstorms at 27 degrees. kyoto reaching up to 32. i'll leave you now for your extended forecast around the globe.

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

tonight a conversation about affirmative action. affirmative action has pitted one group against another, specifically asians against african-americans. we will get into that with an a for lee, who has written exclusively -- with jennifer lee, who has written exclusively about race and the quality. john lloyd young will close with the performance of the four season megahit "can't take my eyes off you