ozawa leads the dpj's biggest group. he spoke on monday at a meeting of about 100 lawmakers who support him. they include former prime minister hatoyama and minister banri kaieda. kaieda was the runner-up in the dpj leadership election and ozawa's group supported him. ozawa says the cooperation with noda depends on who's appointed as executive. leader of the lpd opposition had following to say in the reaction to mr. noda's election as dpj leader. >> reporter: we'll cooperate with the noda administration in efforts to reconstruct disaster-hit areas. that's our basic stance. we will approach discussion with the ruling party with an open mind. we already have a three-party agreement and have raised concerns about the dpj's manifesto. first of all, we have to see what direction the new administration's policies will take. >> noda's hands has caught the attention of other international media. they're focusing on the profile and the long to-do list he'll face once he becomes prime minister. >>> china's state-run television cau

ozawa controls the biggest faction in the dpj. he has been called the king maker of japan's political world over the last few decades. and during this party leadership race, he tried to emerge again as king maker by supporting kaieda. but in the end, noda succeeded in gathering votes from lawmakers who are opposed to ozawa's way of doing business. however, until party struggles subside, the new leader will have to deal with crucial issues. plenty of japanese people are saying that the new prime minister should have been elected based on his ability and policies. not because of the decision of a king maker. >> now that the dpj has a new leader, what happens next? >> well, lawmakers of both of the upper and lower houses in the diet have to approve the new leader as prime minister. and that's expected to happen on tuesday. the dpj has a majority? the more powerful lower house. so its new leader noda will almost certainly become japan's next prime minister. he will then form his administration. this involves choosing cabinet members.

ozawa controls the biggest faction in the dpj. he has been called the king maker of japan's political world over the last few decades. and during this party leadership race, he tried to emerge again as king maker by supporting kaieda. but in the end, noda succeeded in gathering votes from lawmakers who are opposed to ozawa's way of doing business. however, until party struggles subside, the new leader will have to deal with crucial issues. plenty of japanese people are saying that the new prime minister should have been elected based on his ability and policies. not because of the decision of a king maker. >> now that the dpj has a new leader, what happens next? >> well, lawmakers of both of the upper and lower houses in the diet have to approve the new leader as prime minister. and that's expected to happen on tuesday. the dpj has a majority? the more powerful lower house. so its new leader noda will almost certainly become japan's next prime minister. he will then form his administration. this involves choosing cabinet members.

he then offered the influential post of dpj secretary gen gal to koshiishi who is close to ichiro ozawa and former prime minister yukio hatoyama. noda picked the former foreign minister seiji maehara as policy chief. this is a former chief cabinet secretary. >> translator: i filled key positions in a way that unified the party and to show my commitment to work for the japanese people. >> on the formation of his cabinet noda said his priority is party unity. he's considering creating a philippines ter exclusively for administrative reform in order to slash budget spending. noda wants to ready his cabinet to address immediate issues such as the nuclear crisis in fukushima and reconstruction of the disaster-hit areas. earlier we spoke to nhk's senior political commentator about japan's new prime minister. >> thank you for coming in. what is the first order of business for the new prime minister? >> noda has to take his cabinet members and fill executive posts and he'll likely use these appointments as an opportunity to ease friction within the democratic party. noda has already given promo

likely nominations include noda, mabuchi, and ozawa. >>> "newsline" is the place to turn to for the latest on japan post-march 11th. we have two segments offering two unique perspectives on the fallout from the earthquake and tsunami. "nuclear watch" brings you insight and information on the impact of the fukushima daiichi crisis. and "the road ahead" examines japan's efforts to recover and rebuild. don't miss "nuclear watch" and "the road ahead" on "newsline. >>> the operator of the fukushima daiichi nuclear plant has reported a $7.4 billion net loss for the three-month period up to june. this was due to the cause of the crisis at the nuclear power plant. on tuesday tepco released its earnings report for the quarter. earnings came to $14.7 billion a drop of 7.2%. when calculated in yen. tepco also booked an extraordinary loss over $5 billion to cover compensation for people effected by the nuclear accident including evacuees and farmers. the government is planning to establish a legal entity to help the utility pay for -- rather the utility to pay out damaging. tepco president said that o

likely nominations include noda, mabuchi, and ozawa. >>> "newsline" is the place to turn to for the latest on japan post-march 11th. we have two segments offering two unique perspectives on the fallout from the earthquake and tsunami. "nuclear watch" brings you insight and information on the impact of the fukushima daiichi crisis. and "the road ahead" examines japan's efforts to recover and rebuild. don't miss "nuclear watch" and "the road ahead" on "newsline. >>> the operator of the fukushima daiichi nuclear plant has reported a $7.4 billion net loss for the three-month period up to june. this was due to the cause of the crisis at the nuclear power plant. on tuesday tepco released its earnings report for the quarter. earnings came to $14.7 billion a drop of 7.2%. when calculated in yen. tepco also booked an extraordinary loss over $5 billion to cover compensation for people effected by the nuclear accident including evacuees and farmers. the government is planning to establish a legal entity to help the utility pay for -- rather the utility to pay out damaging. tepco president said that o

maehara had once tried to exclude ozawa out of the party. >> now, there are several issues the new prime minister has to address. what are the main issues in this leadership race? >> well, japanese public has been divided since nuclear accident at fukushima daiichi nuclear power plant. many people want a society that does not rely on nuclear power. however, kaeida and maehara both insist the new administration needs to be realistic and needs to continue using nuclear energy, at least for a while. >> now how is the issue of a tax hike playing out in the leadership race? >> prime minister kan insisted on securing post-disaster reconstruction funds through a temporary tax hike. he also indicated a consumption tax hike is inevitable to pay for japan's social programs. maehara, on the other hand, once said that a tax increase might hurt economic growth. he seems to be -- it seems that he doesn't want to raise consumption tax, at least for a couple of years. he wants to prioritize stopping deflation. k kaeida seems to be also against a tax increase because he thinks -- it seems that he's belie