Welcome to NHK Newsline. I'm Yoko Nishimura in Tokyo with the latest news.
Business
We start this hour with developments in the world of business, including a big policy decision from the Bank of Japan, plus a historic day on the markets.
Now let's go straight to Yuko Fukushima from our business desk.
So Yuko, bring us up to speed.
00:00:29 話者 2/Yuko Fukushima
Yeah, thanks, Yoko.
BOJ Raises Key Interest Rate to 1%
Well, the Bank of Japan said it will raise its key interest rate by a quarter percentage point to around 1%. That puts the rate at the highest in 31 years.
The Bank of Japan made the announcement after it wrapped up its two-day policy board meeting on Tuesday.
The hike was expected as higher oil prices in the weaker yen are fueling inflation.
The jump in crude oil costs this year due to the Iran conflict and the yen's weakness against the dollar are both having an inflationary effect in Japan.
Companies are also passing on higher costs in the goods they sell, which is pushing up prices on a wide range of products.
Deputy Governor Uchida Shinichi hosted the news conference after the meeting as Governor Ueda Kazuo is hospitalized for medical treatment.
Uchida said the bank will continue to raise its interest rate and adjust the degree of monetary accommodation.
00:01:21 話者 3/Uchida Shinichi/Bank of Japan Deputy Governor
We will consider the timing and pace of adjustment while closely monitoring the impact of the future course of the situation in the Middle East on Japan's economic activity and prices, and examining the likelihood of realizing the baseline scenario of the outlook for economic activity and prices.
BOJ to Pause Tapering of JGB Purchases From FY2027
00:01:39 話者 2
The BOJ also says that from the next fiscal year it will press pause on its bond buying taper.
Under its monetary easing program, the central bank was buying huge quantities of Japanese government bonds, but in 2024 it started scaling back those purchases.
At the latest meeting, policymakers agreed that from next April, they'll hold buying steady at about 2 trillion yen per month. That's around $12.4 billion.
The long-term interest rates shot up to 2.8% at one stage this year as investors increasingly pulled back from JGBs. That was the highest level in nearly 30 years.
Despite tapering its purchases, the BOJ remains the biggest buyer of the long-term government bonds.
The latest decision appears to be an attempt to provide some stability to the market.
Analysis: BOJ Rate Rise, Halt of Bond-Buying Taper
Now for more context around the BOJ rate hike, we spoke with Kato Izuru, chief economist at Totan Research.
00:02:37 話者 4/Kato Izuru
Japan's policy interest rate is still very low compared with the rate set by central banks overseas.
What's more, if you look at Japan's real interest rate, which is the Bank of Japan's policy rate minus the rate of inflation, you can see it's still deeply in negative territory.
Japan can't leave its real rate too low. If it does, it risks being late to curb inflation.
I think that's the main reason why Bank of Japan policymakers decided to hike the benchmark rate at this time.
00:03:06 話者 2
A bigger question for most market watchers is what comes next?
Kato isn't alone in thinking there are likely to be more rate hikes in the pipeline, but he thinks they could come sooner and more frequently than many people expect.
00:03:24 話者 4
The European Central Bank has begun to raise its key interest rate, and it's also highly likely the US Federal Reserve will start lifting its rate by the end of the year.
In view of these factors, if the Bank of Japan doesn't start to accelerate the pace of its rate hikes, the yen could weaken even more, driving up import prices and the overall cost of living for people across the country.
So if the Fed moves early with a hike, that will increase the likelihood of the BOJ implementing its next rate increase in October.
00:03:57 話者 2
On the decision by the central bank to pause the taper of JGB purchases, Kato says this was a compromise forced by difficult circumstances.
00:04:12 話者 4
The Bank of Japan's balance sheet is still enormous relative to the economy when compared with central banks overseas.
That gives you an idea of how excessively accommodative Japan's monetary easing program was.
If possible, it would have been good for the bank to keep gradually reducing its monthly JGB purchases through next spring and beyond.
But in recent months, long-term interest rates have been rising sharply.
So as a middle ground measure, the bank has decided to keep the monthly purchase level at about 2 trillion yen from April onwards.
00:04:50 話者 2
Kato says after so many years of ultra low interest rates, it's no surprise the BOJ is finding the task of normalizing its monetary policy so tough.
Nikkei 225 Tops 70,000 Threshold for First Time
Well, that rate rise was very much expected by investors who responded by driving Tokyo's Nikkei 225 stock index to record intraday and closing highs. The benchmark crossed the 70,000 line for the first time ever before profit taking kicked in.
The Nikkei briefly went to 70,020 on the back of gains by semiconductor and electronics parts related shares. It eventually finished the day at 69,404, up one-tenth of a percent.
That means it's now had two all-time closing highs in as many days.
The market action followed the US president's announcement of the signing of a memorandum to end the conflict in Iran.
The Tokyo benchmark has been on the rise for some time now.
It hit the 50,000 mark last October and 60,000 in late April.
It also jumped 5% on Monday alone.
Some analysts are worried the index is overheating.
They say the situation on the stock market doesn't reflect conditions in the real economy.
And that's the biz for now.
Iran Conflict : US, Iran to Hash Out Details of Deal Friday
00:06:11 話者 1
US Vice President JD Vance says technical negotiations between the United States and Iran will begin Friday.
That is slated to follow an official signing ceremony for the deal to end the fighting.
Vance said in an interview with NBC on Monday that the text of the Memorandum of Understanding would be released after Friday's ceremony.
But their differences over the Strait of Hormuz are already cropping up.
A senior US official says the strait won't have any tolls for 60 days. and says the US plans to make sure that continues. Iran, meanwhile, says it will be collecting fees.
Iran's foreign ministry spokesperson Esmail Magaie told reporters that Iran has to secure safe passage for vessels alongside Oman.
Magaie said the fee will help pay for those services.
Iran Conflict : Israel Says Troops to Remain in Lebanon
Israeli Prime Minister Benjamin Netanyahu spoke to reporters on Monday about the memorandum. He emphasized the outcome of the military operation.
00:07:15 話者 13/Benjamin Netanyahu
We saved the State of Israel from annihilation.
But I tell you, citizens of Israel, the struggle is not over. We will have to continue standing guard, continue being strong and determined to defend ourselves as necessary.
00:07:32 話者 1
Netanyahu says troops will remain in southern Lebanon to defend Israel from the Iran-backed group Hezbollah. The two sides are continuing to attack each other as of Monday.
Iran is seeking an end to the fighting in Lebanon and its persistence could affect their official signing ceremony and ensuing talks.
G7 Summit Opens in France With Iran on Agenda
The leaders of the Group of Seven have gathered at the foot of the French Alps for their annual summit.
And they'll tackle global issues, including the conflicts in the Middle East and Ukraine.
French President Emmanuel Macron welcomed the G7 leaders at Evian, and they discussed the current global challenges at a working dinner.
When Macron met with Trump right before the summit, he welcomed the US-Iran deal.
00:08:20 話者 25/Emmanuel Macron
So we are ready to take our fair share of the burden and be part of the
the commitment of the international community in order to support this deal.
00:08:31 話者 1
Macron also said France is ready to send the aircraft carrier Charles de Gaulle and frigates to the Strait of Hormuz within a few days.
The three-day meeting will also focus on economic security matters, like diversifying supply chains for critical minerals.
The meeting comes as many question the role of the G7 in today's climate.
Trump's America First policy has tested their unity from within, while emerging economies challenge its relevance on the world stage.
Analysis: As Its Influence Wanes, G7 Aims to Show Unity
For more, earlier I spoke with NHK senior commentator Kamoshida Go.
He worked as a correspondent in Europe, the United States and the Middle East.
Go, what are you watching for at this summit?
00:09:17 話者 35/Kamoshida Go
Well, we thought the key issue would be the conflict between the US and Iran.
And it obviously has had a huge global impact. But just before the summit, as you know, we learned Washington and Tehran has reached a deal.
So that's a big sigh of relief for all other leaders.
And it means they don't have to spend the summit criticizing Trump for what some may call his erratic actions. Instead, they can welcome this agreement.
Even President Trump himself seems in good spirit.
But that doesn't mean there aren't still issues. The deal doesn't address the alleged root cause of the conflict, which is Iran's nuclear program.
That's supposed to be negotiated over the next 60 days.
And while the Strait of Hormuz is reopening, safe passage isn't fully guaranteed yet.
So it will take time for the global economy to recover.
And on top of all this, there is still Israel to consider.
It's clearly dissatisfied with agreement and it could potentially resume strikes, which would undermine the whole deal. So they are still big concern for the G7, I think.
00:10:37 話者 1
Now that's a lot to parse, but that's not the only conflict they're worried about, is it?
00:10:42 話者 5
That's right. Another major agenda item is Russia's invasion of Ukraine.
President Volodymyr Zelenskyy is in France for the summit, and Moscow has been intensifying attacks across Ukraine in the lead up of the meeting.
Meanwhile, President Trump seems more reticent to support Ukraine.
It looks like he's leaning towards a more Russia-friendly approach in a bid to secure a ceasefire. So that could put a big strain on US-Europe relations.
00:11:16 話者 1
Now, you've mentioned a few potential issues so far, even some within the G7.
How does that affect the group's role on the world stage?
00:11:24 話者 5
Right. Well, it's definitely changing. And that's because there's other powerful groups now.
Remember, the G7 was formed half a century ago.
At that time, the world was in the midst of the Cold War, and it was a symbol of Western leadership and security.
And more importantly, it accounted for nearly two-thirds of the global GDP.
But the world has changed since then.
Russia joined the G7 after the Cold War, but was kicked out in 2014 over its annexation of Crimea. It then went on to form BRICS, a bloc made-up of Brazil, Russia, India, China and South Africa, hence the name.
So it's since expanded to include countries like Iran and Indonesia, bringing its number to 10. And BRICS really reflect the changing landscape of the world today.
It's grown into a major counterweight, surpassing the G7 in both population and purchasing power.
As the G7 traditional dominance declines, it can no longer ignore BRICS' growing influence.
00:12:34 話者 1
So where does that leave the G7 summit this time in Evian?
00:12:37 話者 5
Well, that's a good question. At the last summit in Canada, President Trump left early, citing developments in the Middle East.
It prompted some to say the group had become the G6+1.
So that kind of talk could further undermine the G7.
Some might even question the value of holding this summit at all.
So they don't want to show any signs of division here.
I think the leaders are likely frustrated by President Trump's unpredictability, but their immediate priority will be ensuring the summit goes well.
To that end, the French government say they will likely forego a joint communique.
But something worth noting is that next year's summit will actually be hosted by the United States under President Trump.
So how this summit goes could have a significant impact on the future fate of the G7 as well.
UK to Ban Children Under 16 From Social Media Platforms
00:13:53 話者 1
The British government has announced plans to ban children under the age of 16 from using social media platforms such as TikTok and YouTube.
00:14:02 話者 33/Keir Starmer/British Prime Minister
This is a big step, real change for our children and our future.
00:14:09 話者 1
The government said the ban would include TikTok, YouTube, Instagram, Facebook, X and Snapchat.
Restrictions will also be placed on harmful features of other online services, such as those enabling strangers to communicate with children on gaming sites.
Regulators are expected to present different options for effective forms of age verification over the next few months.
The government plans to bring the measures before parliament this year with the aim of implementing them next spring.
Australia and Indonesia have already introduced similar bans for under-16s.
European nations are also moving to limit children's access to social media.
Women Outnumber Men in Race to Be Next UN Chief
Six contenders are now in the running to succeed Antonio Guterres as the United Nations Secretary General when his second term ends later this year.
Four of them are women. Ecuador's former foreign minister Maria Fernanda Espinoza is one of those hoping to become the first-ever female head of the UN.
She highlighted her policies and her track record as a former president of the UN General Assembly in a debate with representatives of member states.
Guyana announced the nomination of its former foreign minister, Caroline Rodriguez Burkett, last week. She currently serves as her country's ambassador to the UN.
The other candidates include former Chilean President Michel Bachelet and International Atomic Energy Agency Director-General Rafael Grossi from Argentina.
The Secretary-General of the UN Conference on Trade and Development, Rebecca Grinspan from Costa Rica and former Senegalese President Makisal are also running.
Five of the candidates are from Latin America and the Caribbean, which is next in line for the top UN post under the world body's practice of regional rotation.
It's still possible that more nominees could be put forward before the Security Council begins discussing the candidates.
Iran World Cup Match in US Brings Support, Protests
Iran's national soccer team held New Zealand to a 2-2 draw in its World Cup opener at a stadium near Los Angeles on Monday.
A large crowd gathered outside the venue, including Iranian Americans who came to cheer on Iran's players.
We don't support the government, we don't support the regime, but we are here to support being who we are, which is Iranian, and we are here to support soccer.
There were also protesters. Hundreds chanted a slogan calling for freedom in Iran.
One 80-year-old mentioned the many who lost their lives in anti-government protests held in Iran in December and January.
00:16:59 話者 46
People went to the street and they got killed because they protested and they just wanted freedom.
00:17:09 話者 1
The Iranian soccer team is scheduled to play all three of its group stage matches in the United States.
But the team relocated its training camp to Mexico amid tensions between Tehran and Washington.
Some of the coaches and support staff members were reportedly denied visas.
Security in Focus With World Cup Underway in Mexico
Men's soccer fans in Mexico are gearing up for more World Cup games in several Mexican cities.
But ongoing crime and violence are casting a shadow over some of those celebrations.
As NHK World's Komia Lisa reports, it means police are on high alert.
00:17:48 話者 7/Komia Lisa
Mexico has been preparing for the World Cup for months.
Police officers were seen patrolling the streets weeks before the tournament.
Authorities have also confirmed that security personnel are well coordinated at local matches.
The Mexican government has deployed about 100,000 personnel, including military troops across the three regions where matches are being held.
Authorities are paying close attention to potential threats from drones.
This device resembles a firearm. When it emits radio signals toward a drone, it can disrupt communications between the drone and its operator, forcing the aircraft to stop moving.
Officials say the technology is expected to help prevent unauthorized drones from approaching stadiums and other sensitive locations.
00:18:52 話者 58/Jose Alfredo Lara Alvarez/Captain, Second Class, Communications and electronics engineer
Unauthorized drones could fly overhead and potentially endanger people.
To counter that threat, we continuously operate both fixed and portable systems to help maintain security.
00:19:07 話者 7
Japan will play its second match near Monterrey in northern Mexico.
Authorities there are introducing additional security measures.
This robot dog is equipped with a camera in its head.
It can be operated from as far as 40 meters away, sending real-time video back to the officers.
It can easily inspect low or hard-to-reach areas and can also illuminate dark spaces with built-in lights, and use an infrared sensor to detect suspicious people or objects.
00:19:52 話者 57/Miguel Angel Cepeda Vazquez/Director of the C4i, Municipality of Guadalupe
This robotic system helps ensure the safety of personnel.
It can gather intelligence and conduct reconnaissance in ways that humans cannot, allowing us to make better informed decisions.
00:20:06 話者 7
Another type of security service is in demand.
This company specializes in bulletproofing vehicles,
The level of protection is customized according to each client's needs, including reinforcing the bodies and windows of vehicles.
A key part of the process is testing the materials used for protection.
This test is simulating an attack using an assault rifle.
The owner and director of the company checked the results himself.
00:20:46 話者 53/Omar Lara/Owner and Director, Blindaje Total
All three rounds were stopped. It's safe.
00:20:54 話者 7
The company repeats the tests, sometimes with vehicles modified to be bulletproof to confirm the materials' effectiveness.
It says more inquiries are coming in from firms and wealthy clients seeking extra security for transportation during the tournament.
00:21:12 話者 53
For the World Cup, we want to do everything we can.
We want our clients to feel at ease and above all, stay safe.
00:21:25 話者 7
With the World Cup underway, efforts to protect players and spectators are in full swing.
Komiya Lisa, NHK World.
♪
Japan's Emperor Visits Palace-Turned-Museum in Netherlands
00:21:54 話者 1
Japan's Emperor Narihito took in a historic site while on an official visit to the Netherlands on Monday.
The emperor walked through a 17th-century palace that is now used as a museum.
The Het-Lo Palace Museum neighbors the Het-Audelo Castle Royal Retreat.
The symmetrical building is typical of Dutch Baroque architecture.
The Emperor and Empress Masako are staying at the Royal Retreat at the invitation of Dutch King Willem-Alexander and Queen Maxima.
The couple is on an official visit to the European country after arriving there on Saturday.
Next, the Emperor and Empress will travel to the Royal Palace in Amsterdam on Tuesday.
They will then attend a welcome ceremony and banquet as state guests on Wednesday.
National Ballet of Japan Wins UK Dance Award
The National Ballet of Japan has won a prestigious British Dance Award, becoming the first Japanese ballet company to do so.
The dance section of the critics' circle named the troupe Outstanding Company at its National Dance Awards.
The nominees include 379 companies, choreographers, performers and other artists who were involved in ballet performances in the UK last year.
The National Ballet of Japan performed Giselle at the Royal Opera House in July last year.
It was the first time the company had mounted its own production overseas.
Former Royal Ballet principal dancer Yoshida Miyako has served as its artistic director since 2022.
Founded in 1997, the National Ballet of Japan is regarded as one of the country's leading ballet companies.
Its repertoire ranges from classics and 20th century works to original pieces.
The new National Theatre Tokyo said in a statement that it is honored and sees the award as deeply meaningful.
It said the prize reflects the accumulated efforts of its dancers and staff under Yoshida's leadership.
It added that it will continue working to create and present high-quality performing arts.
Weather
It's time for a check on the world weather with our meteorologist Sayaka Mori.
So Sayaka, southwestern parts of Japan and southern China have been dealing with some intense wet weather. What can you tell us?
00:24:29 話者 9/Sayaka Mori
Hello there. Southern Japan has been experiencing heavy rainfall.
And in fact, record-breaking heavy rainfall has hit Okinawa.
Okinawa has been experiencing the wetter than normal rainy season.
Now, southern China, especially Guangdong and Granxi provinces, have been seeing a lot of heavy rain since the weekend. Rescuers have been wading through waist deep waters.
Now we are looking at more rain. In fact, we have a frontal system still here.
This is a boundary between drier air from the north and warm and moist air from the ocean. The system will slightly move up towards the north as we go into Wednesday.
So that's good news.
However, instead, Kagoshima Prefecture will likely see the heaviest rainfall.
Thunderstorms are on tap as well.
And the frontal system will move up to the north, reaching northern Japan as we go into the latter part of this week.
That means the rainy season will likely start in northern Japan soon.
Instead, Okinawa could see sunny weather as we go into the weekend and into next week, so you'll finally see the end of the wet season.
Tokyo will see another day of drier weather on Wednesday.
In general, about 60 percent of the days during the rainy season in Tokyo are rainy, so enjoy the nice weather while you can.
Seoul at 32, hot weather for you, and Shanghai will turn wet with high with 30 degrees.
Now let's go to Europe.
We have a couple of swirling clouds right here is expected to bring heavy rain and strong winds to the British Isles and then it will impact the Scandinavian Peninsula as we go into Thursday. And another system towards the east is affecting western Russia and surrounding areas with unstable conditions.
Latvia and Poland had some tornadoes. And then we have a couple of lows right here and we have reports of large hail in northern Italy as well.
Another big story is a huge pressure, high pressure dome.
Paris could see the high of 37 on both Friday and Saturday.
It could even reach the 40 degree mark as we go into Sunday. So stay cool and stay safe.
♫～ 3-DAY FORECAST ～♫
00:27:40 話者 1
And that's it for now on NHK Newsline. I'm Yoko Nishimura in Tokyo. Thanks for joining us.
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