THAI-CAMBODIA BORDER CLASHES CONTINUE
Clashes continue between Thai and Cambodian forces along their disputed border. Thailand says at least 14 people on its side have been killed and dozens injured. More than 100,000 people have fled the violence. Fighting began on Thursday, quickly spreading to different parts along the border region. Thailand says buildings in its areas, including a hospital and a convenience store, came under shelling from Cambodia.The Thai military said its fighter jets have carried out strikes on Cambodian forces. So far, Cambodia has not provided casualty figures. Thai residents living nearby have been sheltering in schools and other evacuation centers. Both sides have vowed to continue retaliating against further aggression.
Meanwhile, the UN Security Council is holding an emergency meeting Friday, chaired by Pakistan. UN Secretary-General Antonio Guterres is urging both sides to exercise maximum restraint. His spokesperson says Guterres called on Thailand and Cambodia to find a lasting solution to the dispute through dialogue and in a spirit of good neighborliness.
Washington also says it's gravely concerned by reports of the escalating border conflict.
A US State Department spokesperson urged both sides to cease attacks immediately and to protect civilians.
THAI-CAMBODIA CLASHES CONTINUE AS INTERNATIONAL PRESSURE MOUNTS
For more on this, earlier I spoke with two reporters, NHK World's Takaoka Chikashi in Bangkok, as well as our Hanoi bureau chief, Suzuki Kota, who is covering the story from Cambodia's neighbor, Vietnam.
First, let's go to NHK World's Takaoka Chikashi, who's in the Thai capital for us. Chikashi, what can you tell us?
Well, people are concerned about this conflict escalating and we have reports of more clashes Friday morning. I'm in Bangkok about several hundred kilometers away. News of the civilians killed at the border has put residents here on edge. The Thai government says it's working to keep people safe, but it has also vowed to protect its sovereignty. It's calling on the Cambodian side to end its attacks to start the diplomatic process.
So far, we don't have a sense when that will happen.
Chikashi, I'd like you to take us back and walk us through what sparked this violence on the border.
So Thailand and Cambodia have a history of these kinds of border disputes dating back a while. Earlier this year, in May, there was a shootout that left one Cambodian soldier dead. Then earlier this month, several Thai soldiers were reportedly injured by landmines.
Thailand accused Cambodia of planting the explosives recently, violating the Ottawa Convention. Both countries began taking actions against each other, including expelling diplomats, and now they are clashing. We should also mention that Thailand and Cambodia were already in a politically sensitive situation.
A phone call between now-suspending Thai Prime Minister Phet Thong Thang Sinawat and Cambodian Senate President Hun Sen leaked. Their conversation involved this disputed border issue. All of this comes after years of relative calm.
Thailand and Cambodia are important trading partners. This kind of fight could have a serious impact on the entire region, so ASEAN and China are watching closely. But this is a chaotic situation without an easy solution.
All right. Thanks for that, Chikashi. NHK World's Takaoka Chikashi in Bangkok. Now let's turn to the Cambodian side. Covering that for us from neighboring Vietnam is NHK's Hanoi bureau chief, Suzuki Kota.
Kota, what's the latest on your end?
So far, Cambodian government has not provided any casualty figures on its side, but it is stepping up criticism against Thailand, accusing Bangkok of conducting multiple airstrikes. Cambodia claims Thai forces have damaged Pura Bihir, a temple and UNESCO World Heritage Site located in disputed area.
Prime Minister Hu Mannet has been trying to get the international community involved. He's the one who asked for the emergency UN Security Council meeting to discuss de-escalation.
Cambodia does not appear to want classes to intensify. That's because its military is believed to lag behind Thailand, meaning a prolonged conflict could be diversity for the country.
Right. So is there any sense there could be a pathway to a diplomatic end between these two with outside help?
Potentially. especially if regional power ramp up pressure. My local colleague Chikashi mentioned ASEAN, the block's 2025 chair. Malaysian President Anwar Ibrahim says he spoke with the leaders of Thailand and Cambodia Thursday evening. He appealed for an immediate ceasefire. Crushes appear to be continuing, but clearly ASEAN has a keen interest in getting both sides to talk things out. The problem, as Chikashi also mentioned, is that political turmoil in Thailand appears to be causing issues. One of my sources in Cambodia tells me that the country's government doesn't even know who in Thailand has the authority to oversee ceasefire talks. This kind of confusion could prolong the details. It's still hard to say how long this will drag on, but very few. especially ASEAN wanted to drag on for one.
Thank you, Kota. That was NHK World's Suzuki Kota reporting from our bureau in Vietnam.
ISHIBA PLEDGES IMPLEMENTATION OF US TRADE DEAL
Japan's prime minister has instructed his government to try to reduce any negative impacts stemming from the new trade deal with the US. The agreement would bring tariffs on Japanese products to a baseline of 15%, down from the 25 figure previously threatened. At a task force meeting on Friday, Ishiba Shigeru said it's important for the countries to work for tangible results that will benefit both sides.
He said the potential impact from the deal on domestic industries and jobs must be closely analyzed. And he proposed creating consultation centers nationwide to explain tariffs and offer financial advice as a way to reduce any negative impact.
Ishiba also met leaders of the ruling and opposition parties to explain how the deal was reached and ask for their cooperation.
Since I made a proposal to President Trump at our summit in February, the Japanese side consistently called strongly for the US side to prioritize investment over tariffs. As a result, we have reached a deal that meets the national interests of Japan and the United States, while protecting what needs to be protected.
But the head of the largest opposition party says worries remain about the agreement.
All parties were concerned the US may make further demands on Japan depending on how it interprets the agreement, since it has yet to be written in a document signed by both sides. The matter needs to be debated in detail in diet sessions. I had the impression that the trade deal could remain fragile unless the deal is signed into a document.
Ishiba says his government will handle the matter. He added he received valuable comments from the leaders and will take them into account. Following his meeting, a reporter asked if he had explained his reasons for staying in office. Ishiba said he had not, and that there had been no questions or comments on the issue. Ishiba has been facing pressure from within his own party to step down after his ruling coalition was battered in Sunday's upper house election.
S.KOREAN MILITARY PLANE ENTERS JAPAN'S AIR DEFENSE ZONE.
Japan's top government spokesperson has revealed that a South Korean military transport plane entered Japan's Air Defense Identification Zone earlier this month.
The incursion prompted a scramble by Air Self-Defense Force fighter jets.
Chief Cabinet Secretary Hayashi Yoshimasa told reporters on Friday that the incident occurred on July 13.
The transport plane declared an emergency and landed at the US military's Kadena base. in the southwestern Japanese prefecture of Okinawa. The South Korean side explained its plane was low on fuel.
It is regrettable the situation led to a scramble. Japan asked the South Korean government to take measures to prevent a recurrence. In any case, South Korea is an important partner of Japan, and we hope to continue our close bilateral cooperation.
South Korean Air Force officials said its plane was heading to Guam for drills, but ran low on fuel after avoiding a thunderstorm. The officials also said the country's defense ministry is investigating the plane's entry into Japan's air defense identification zone.
They said the Air Force will reconfirm compliance with proper procedures to prevent any recurrence.
MACRON: FRANCE TO RECOGNIZE STATE OF PALESTINE IN SEPTEMBER.
French President Emmanuel Macron has announced that his country will recognize Palestine as a state. The move would make France the first among the Group of Seven nations to do so. Macron announced his decision on social media on Thursday, saying the French people want peace in the Middle East.
He added that it is the responsibility of French citizens to prove that peace is possible. Macron said in a post on X that he will formalize the decision at a UN General Assembly in September. The move is seen as consistent with France's objective of promoting peace through a two-state solution between Israel and Palestine amid intense Israeli attacks in the Gaza Strip. Israeli Prime Minister Benjamin Netanyahu strongly condemned Macron's decision on Thursday on social media. He said a Palestinian state would be a launchpad to annihilate Israel, not to live in peace beside it.
US Secretary of State Marco Rubio also posted a strong rejection of Macron's plan. He described it as a reckless decision that only serves to set back peace. Meanwhile, Israel says it has decided to recall its negotiating team from indirect talks with the Islamic group Hamas that have been taking place in Qatar. This came after Hamas announced on Thursday that they had asked for an amendment to the US proposal for a 60-day ceasefire in the Gaza Strip.
EU SAYS RELATIONS WITH CHINA AT 'INFLECTION POINT'
A top European official says the region's relationship with China is at an inflection point. Beijing held a one-day summit with the European Union Thursday amid ongoing tariff disputes with Washington.
Chinese President Xi Jinping met with European Council President Antonio Costa and European Commission President Ursula van der Leyen in Beijing.
Xi expressed his desire to strengthen relations with the EU. But van der Leyen pushed back, pointing at Europe's huge trade deficit with China.
The more complex and challenging the international situation becomes, the more China and Europe need to strengthen communication, enhance mutual trust, and deepen cooperation so as to contribute greater stability and certainty to the world through a steady and healthy China-Europe relationship.
As our cooperation has deepened, so have we imbalances. We have reached an inflection point. Rebalancing our bilateral relation is essential, because to be sustainable, relations need to be mutually beneficial. And to achieve this, it is vital for China and Europe to acknowledge our respective concerns and come forward to real solutions.
The European leaders asked Xi to lift export controls on rare earths. They also asked China to not support Russia's invasion of Ukraine. Von der Leyen told reporters she hopes Beijing will urge Moscow to accept a ceasefire. She said how China interacts with the war will be a determining factor in their relationship.
These talks come as Chinathe continues tariff negotiations with the US. The meeting was an attempt to develop its relations with Europe, but highlighted their stark differences.
ZELENSKYY MOVES TO RESTORE INDEPENDENCE OF ANTI-CORRUPTION AGENCIES
Ukrainian President Volodymyr Zelenskyy has submitted a new bill to reinstate the independence of two anti-corruption agencies. This comes just days after the largest anti-government protests in Ukraine since the beginning of Russia's invasion over three years ago erupted nationwide.
The demonstration started after Zelenskyy enacted a law that grants oversight of two key anti-corruption agencies to the prosecutor general, who was appointed by the president. Critics say, under the law, independence from the government could be lost.
I like how he represented our country during the war, but now this decision we cannot support.
Some European countries had voiced concerns over the legislation.
Zelenskyy submitted the new bill to Parliament on Thursday. It is designed to guarantee the independence of two agencies, including the National Anti-Corruption Bureau, that cracks down on corruption by government officials. The new bill limits the power of the Prosecutor General. The two agencies welcomed the new bill, saying that it restores all their procedural powers and guarantees their independence.
N. KOREA ARMY DRILLS POSSIBLY LINKED TO RUSSIA EXPERIENCE
North Korean state media say the army has held artillery drills observed by the country's leader Kim Jong-un. Korean Central Television says the drills simulated conditions including nighttime and summer with targets on the ocean.
Kim Jong-un said artillery tactics need to constantly evolve in response to the harsh, quickly changing environment of modern warfare. NHK got insight on the drills from a South Korean government affiliated think tank, the Korea Institute for National Unification. A researcher there said the goal may have been to enable troops to learn from the experience of those sent to Russia.
BUSINESS
Now let's see what's happening in the world of business with Ramin Mellegard.
Thank you very much indeed.
LOWER US TARIFF SEEN REDUCING HIT ON AUTOMAKERS BY $10 BIL
Now, the recent trade deal between Japan and the United States is projected to reduce the tariff impact on Japanese automakers by about 1.6 trillion yen or $10 billion. And that's according to the investment house Goldman Sachs. The agreement drastically cut the tariff on Japanese cars from 27.5% to 15%. Goldman Sachs estimates the gross impact on the operating profits of seven major car makers. In the current fiscal year will now be $13 billion, down from $24 billion. Under the new levy, Toyota Motors operating profit is projected to drop by about $6 billion. That's far less than the $11 billion expected if the higher tariff had remained. For Honda Motor, the loss is now projected at around $2 billion, down from $3.8 billion. But people in the industry say the tariff is still high and difficult to bear. An official at Mitsubishi Motors says the impact is considerable and it is hard to be optimistic even if the tariff is lowered further. Mitsubishi reported an operating profit of about $38 million for the April to June quarter, down 84% in yen terms from a year earlier. It says profit fell by about $98 million due to the tariff impact.
JETRO: READY TO HELP JAPAN FIRMS NAVIGATE US TARIFF DEAL
And as the tariffs take a bite out of earnings at automakers, the Japan External Trade Organization, or JETRO, says it will help companies navigate and find opportunities in the new trade deal with the US.
We believe it is possible to ease the effect of the tariffs through various creative measures, Japan's industry, agriculture, forestry and fisheries. and food businesses should take this opportunity to further increase their competitiveness.
Ishiguro said the fact a deal was reached before the August 1st deadline is a welcome development. He says JETRO offices nationwide will offer consulting services to companies to explain the details of the tariffs on specific products exported to the US. Ishiguro adds that Japanese firms will also need to examine their supply chains as US tariff rates differ by country.
DINOSAUR, ADVENTURE THEME PARK OPENS ON OKINAWA ISLAND
A jungle-themed adventure park opened on Japan's main Okinawa island on Friday. It includes a dinosaur chase and hot air balloon rides over subtropical forest.
Junglia Okinawa was created on a former golf course in the north of the island at a cost of 70 billion yen, or about $476 million. It has 22 attractions and 15 dining spots spread over 60 hectares of land. The Dinosaur Safari features an off-road vehicle ride to escape from a Tyrannosaurus Rex. Visitors can also enjoy island and jungle views from a hot air balloon.
Dinosaurs. Dinosaurs. Dinosaurs.
There's a lot of people, but it was really fun. The dinosaurs is really like the real dinosaurs. Very cool. Yeah. It's a very realistic experience.
The park also features zip line rides and a spa with infinity pools offering views over tropical forests. The park uses a two-tiered pricing system for residents and overseas visitors. A one-day ticket for adults living in Japan is 6,930 yen, or $47. The same ticket for non-residents is 8,800 yen, or $60. Local officials hope the park will create jobs, stimulate the economy, and boost tourism in the northern region of Okinawa.BIZPICKS
Next, NHK World's John Ladue is here with Bizpicks, a look at upcoming business and economic stories.
FED, BOJ STRUGGLE UNDER UNCERTAINTY
Let's look at the topics we'll be tracking. On Wednesday, the US Federal Reserve will set its latest monetary policy, and the next day, the Bank of Japan does the same. Today's feature looks into what policies are likely to come out of these two central banks. The Fed's previous meeting in June was the 4th in a row that ended with interest rates kept the same. The benchmark rate is locked between four and a quarter to four and a half percent.
Fed Chair Jerome Powell says before cutting rates, there should be confidence that inflation is coming down. He stressed the need to assess the effect of President Donald Trump's tariffs. An expert predicts that the Fed will once again keep rates unchanged in order to further scrutinize prices and other data.
Recent economic indicators show the economy is steady, with employment remaining strong and personal consumption in not very bad shape. On the other hand, prices for some goods are showing signs of rising. I think before the Fed decides to cut rates, it will need to look at two more rounds of data to determine if inflation will accelerate or not.
But President Trump has been calling for rate cuts and criticizing Powell for moving slowly. Iwashita says despite the pressure, the Fed makes decisions based solely on data. She predicts that the US economy will gradually slow down, prompting the Fed to lower rates, most likely in winter.
Given the solid economy, the Fed will probably start cutting rates at the end of the year, when the jobless rate approaches 4.5%, and will lower rates consecutively in December, January and March. There will be preemptive cuts to prevent the economy from deteriorating quickly.
Looking to Japan, the consumer price index, excluding fresh food, has climbed 3% or more for seven months in a row, and the US will impose tariffs on Japanese imports of 15% on August 1. Under these circumstances, Iwashita expects the BOJ won't hike rates from around 0.5%.
The BOJ is likely to keep rates on hold, citing a high degree of uncertainty on the influences of Trump's tariffs.
Iwashita says Japan's auto industry and related sectors have been hit by the higher US tariffs, but the service industry is posting steady growth, buoyed by brisk inbound tourism. Iwashita says the Japanese economy is basically not in bad shape. She predicts that the next rate hike will come in January next year.
By January, we will know how spring wage negotiations are likely to go and the influence of US tariffs. We will know the worst-case scenario for the economy, and that will at least ease some uncertainty. But if political instability in Japan causes the yen to be sold off, or the dollar rises as expectations fade for US rate cuts, there's a slight chance that the BOJ will raise rates a bit earlier.
Prolonged uncertainty is creating a tough situation for the central banks in both the US and Japan. I'm John Ladue, and that wraps up this edition of BizPicks.
OK, let's get a check on the markets.
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And that is it for business news.
WEATHER
Let's check, check in with our meteorologist Setsi Monari for an update on world weather.
Hi there. We start immediately by looking at the temperatures across Japan. It's been quite a hot week and it looks like it's not even going to be stopping there. Some of these temperatures have tied to their all time records. You can see up north in Hokkaido, a place that is usually. Much cooler for this time of day and here in Tokyo, again exceeding 35 degrees Celsius.
Let us take a look at this following video. Lots and lots of people are just trying their best to deal with the heat as the temperatures in Tokyo have been above average for 9 consecutive days. Many people were seen using parasols or drinking cold beverages to cool down from the heat. According to the Tokyo Fire Department, the number of people taken to hospital with heat stroke has exceeded 3,600 so far, more than at the same time last year. So yeah, that is basically what we are dealing with. Temperatures are not going to be cooling down much, except maybe if you're in Sapporo. Only for Saturday though, 28 just below 30 degrees, that's basically all I can give you for now. And then we've seen those mid 30s from Osaka, Tokyo, including Fukuoka down in Kyushu.
And on top of all of that, if you move further down, this is Japan as you can see up north there. She moved further down, got a couple of tropical storms active in various places leading to rough seas and also heavy rainfall bringing. Some flooding in certain places. If you're out on holiday in the Philippines, for example, please make sure you stay safe at all time.
And the rest of Asia will be seeing a sharp rise in temperature as well. Seoul 38 and it's going to be quite dry. Manila 29, a lot better there, but rainy weather is going to be something that you need to be extra cautious of.
Finally, across Europe, dry weather can be seen across the Iberian Peninsula going all the way into the Balkans because of that high pressure system. Other than that, Temperatures into the upper 20s, Paris, Vienna, including Berlin, and then Istanbul jumps up to 34 degrees.
That's all for the weather. Bye for now.
♫~ 3-DAY FORECAST ~♫
More to come here on NHK World Japan, so stay with us.