And japanese leaders are doing what they can to make japan an easier place to do business. North korean officials have issued a statement on their threat to conduct another nuclear test. They first warned of the test last month after the u. N. Security Council Condemned their Ballistic Missile launch. Translator theres no statute of limitations on our declaration to not rule out a new form of nuclear test. Such a test is our right to selfdefense that no one can prevent. Analysts at a u. S. Research group have reported more activity at a Nuclear Test Site in the north. And south korean government officials believe north korea has completed preparations for a possible nuclear test. North korean watchers say the statement could mean pyongyang will not carry out a test any time soon. But they also say it might be trying to confuse other countries. The Korea Institute for defense tells us what north koreas recent actions could mean. North koreas provocations are not out of control, reckless actions, but controlled, premeditated maneuvers, i would say. Typically would be yesterdays live artilleries near the disputed western maritime border with just 50 rounds of firing pyongyang received International Media coverage by selecting the timing on the heels of president obamas visit to seoul. Like the similar artillery firing a month ago which triggered exchange of hundreds of artillery shells across the maritime border, the selection of the timing and intensity of provocations may have factored into the effect. The prenotification tactics to justify provocative military maneuvers may indicate he worries about seouls countermeasures and the frustration. Overall these activities may have synchronized for creating a sense of urgency on the Korean Peninsula among sixparty nations. Pyongyang is on standby to conduct a new form of nuclear test for showing off its nuclear capabilities. Instead of carrying out the First Nuclear test, the north has placed a large camouflage screen at the entrance to a tunnel at the testing site. The test timing would depend on a political premedication by kim jongun, obviously. His unpredictable calculation may be affected by possible inflaming of chinese leadership, who are exerting allout efforts to revive the sixparty talks. China may have pressured north korea to refrain from nuclear test in past years. Unfortunately, its influence on pyongyang seems to wane, but still crucial to dissuade pyongyangs nuclear play. The Fourth Nuclear test may be resolved for the time being to select a symbolic timing considering changing Political Landscape in the region. Nuclear has wrongfully acquired effect. They perceive themselves nothing to lose in controlled provocations including nuclear tests. Whatever the form of Fourth Nuclear test may be it is not imminent. Thats my understanding. It seems to me that active movements at the site are pretending maneuver to draw International Attention with the context of president obamas visit to seoul. Pyongyang might even consider International Internal situation due to the very action which has starred harsh done democrat nation toward the park geunhye administration. Pyongyang is likely to manipulate personal attacks and political leaders of the United States and korea. President obama has warned north korea that the United States will not hesitate to use our military might to defend allies. He also raised the possibility of further sanctions if a test goes ahead. North korea will conduct long administer tests first and then conduct additional tests. This spring pyongyang had warned it was preparing to test another nuclear device, and on the day of the committee in hague it tested two Ballistic Missiles. North Koreas Nuclear brinkmanship is aimed at attracting attention of the United States, and that such tactics will not work anymore. For the foreseeable future the flurry of diplomatic activity is likely to be intensified. Pyongyang will escalate even greater willingness to raise the stakes. However, the regime may take control in a belligerent manner but it seems to physically randomize the actions. The focal point should be on kim jonguns decisionmaking style, not the propaganda warnings. In addition, the kim regime is likely to intentionally instigate internal conflicts and antiamerican sentiments within south korea. Russian president Vladimir Putin says u. S. And eu sanctions could end up hurting western companies doing business in his country. Government leaders have heaped more penalties on russian officials and firms over the crisis in Eastern Ukraine. They say separatists there are taking orders from authorities in moscow. More from nhk worlds craig dale. Prorussian separatists in Eastern Ukraine stormed another government building and smashed their way inside. Their campaign for greater regional autonomy isnt losing steam. Armed groups have taken over public buildings across the east. Translator we will continue our occupation until a referendum is completed. Reporter separatist leaders want to vote next month on the regions future, and some are pushing for independence. But members of the interim government in kiev say the referendums would have no legal basis. Theyre debating reforms that would give local areas more power while keeping the country united. Acting president Oleksandr Turchinov blames russian authorities for fuelling the unrest. Western leaders agree. As long as russia decides to continue to fan the flames, rather than help to put them out, we stand ready with our partners to do what is necessary for now that means broader u. S. And European Union sanctions against russian officials and businesses. Deputy Prime Minister commitry kozak is one of the names added to a growing list. Others are members of president Vladimir Putins inner circle including igor sechin the head of energy giant rosneft. Putin denies hes orchestrated the events in ukraine. He says the sanctions will bring nothing good and could backfire on the west. Translator we will have to think about who is working in the key sectors of the russian economy. Including the energy sector. Reporter its one of many things complicating the situation. The separatists continue to detain a group of european monitors who were trying to help defuse the crisis. Negotiations to secure their release are ongoing. Thousands of russian soldiers are tracking developments from across the border. Putin has said he reserves the right to protect ethnic russians in Eastern Ukraine, who account for about a third of the population. But u. S. Officials say an invasion would draw sharp reaction. It would be a dramatically unfortunate development which i think would produce only the most tragic consequences. Reporter nato forces are bolstering their presence in nations near russia and ukraine as a precaution. Prominent figures within the military alliance have vowed to defend their territory. Every single piece of it. Reporter and so, as ukraine remains a nation in turmoil, Eastern Europe remains a region on edge. Craig dale, nhk world. Iranian leaders are sending more signals they want to improve relations with the United States. And travelers could be among the first to benefit. Vice president has told nhk that direct flights between the two countries might be operating again by the end of the year. Translator weve had serious discussions with one u. S. Airline and an agreement appears to be in sight. He also serves as the head of irans tourist organization. He said visitor arrivals to iran climbed 160 in the past month, from the same time last year. He said the two sides are looking to begin flights between the u. S. Mainland and kish island in the persian gulf. Iran has designated the island a free trade zone aiming to attract foreign investment. He says the route could become an important one knowing that many iranians live in the United States. The airline talks are taking place amid progress in negotiations with western countries over Irans Nuclear program. Iran and the u. S. Severed diplomatic relations after the Islamic Revolution in 1979. Lets now get the latest business stories from ron madison. Thanks, shery. Policymakers at japans central bank believe that theyre on the right track so theyre going to keep pumping billions of dollars into the markets. Board members at the bank of japan said an increase in the consumption tax is dampening consumer spending. The tax went up at the beginning of the month from 5 to 8 . Even so, they say the economy is still making a moderate recovery. Now, after the meeting the Bank Released its latest outlook on the economy and on prices. The official said the inflation rate will likely reach 1. 9 in fiscal 2015 starting in april next year. The figure does not include the impact of the consumption tax hike on april 1st. The rate is the same as their previous prediction. Now, for fiscal 2016 they do expect the rate to reach 2. 1 . Officials expressed confidence that they will be able to achieve their inflation target of 2 and pull the country out of deflation. As for economic growth, the official said japans gdp will expand 1. 1 in the current fiscal year. Thats down 0. 3 Percentage Points from their previous forecast reflecting delays in the recovery of exports. Now the officials expect gdp to grow 1. 5 in fiscal 2015. And 1. 3 the following year. Bank of japan governor kuroda has stressed the economy is proceeding on a steady path. He was speaking about the nations Economic Outlook at a News Conference after the boj meeting. We will continue the current monetary easing steps until our 2 inflation target is achieved. But if risks emerge, well definitely adjust our Monetary Policy. Kuroda said that the economy basically remains on a moderate growth path, despite effects from the consumption tax hike. He said the cycle is likely to remain in place backed by solid domestic demand and a moderate increase in exports. All right on to the markets now. Investors in asia in a wait and see mood today. Trading volumes were pretty light ahead of the u. S. Federal reserve policy meeting which is later on today. Major stock markets across asia showing a mixed performance, while hong kong and taiwan saw selling pressure. Some Southeast Asian stocks were up on solid corporate earnings. The hang seng in hong kong did decline day lower by 1. 4 , 22,133. Investors took advantage of the rally on tuesday. Banks came in for heavy selling after one of chinas biggest banks said its First Quarter profit grew at the slowest pace in five years. In the philippines stocks there were up today just over 1 . 6,707. Manila electric, the countrys biggest utility, continued to lead the gainers after the Company Reported strong earnings. And here in tokyo the nikkei average finished higher just a tenth of a percent, 14,304. Tokyo stocks opened higher but the boj decision to maintain its current Monetary Policy did slow the momentum a bit. Now, one sign that japans economy might be improving is a rise in march in industrial output. Its the first increase in two months. This news mainly comes off the back of a recovery in auto production. Officials at the Economy Ministry thought theyd see a big turnaround from february when industrialout put dropped by more than 2 . In march, though, factories churned out 0. 3 more. One big factor in the increase is a jump in auto production. Heavy snow in february made it difficult for auto workers to get parts, but production was up again in march. The officials also said companies are manufacturing more thermal Power Generators and solar panels. They expect the tax hike will cause output to fall this month by 1. 4 , then increase by 0. 1 in may, as the situation stabilizes. And japans Housing Starts in march posted the first decline in 19 months. This reflects the impact of the higher sales tax from april. Officials at the land and Infrastructure Ministry say new Home Building on more than 69,000 units got under way last month. That is down 2. 9 from a year earlier. The decline follows a surge in lastminute demand to avoid the higher consumption tax. The previous sales tax rate of 5 was applied to housing. That was contracted before the end of september last year. Thats even if the homes are handed over to their owners after april. A Ministry Official says demand is unlikely to pick up soon, as consumers are said to be cautious about buying homes. Well, officials in countries around the world do attract businesses from abroad, offer tax breaks, ease restrictions on visas and adopt other incentives. Bank officials analyzed those efforts in their annual else of doing business index. They compared the financial environments, infrastructure and Legal Systems of each economy. Singapore came in first. Followed by hong kong, new zealand, and the United States. Japan, though, came in 27th overall. And when it comes to starting a business it lags far behind at number 120. Government leaders have pledged to make the economy more competitive, and more attractive. And theyre trying to do that by cutting the red tape. More now. Reporter the tokyo metropolitan government set up this facility in the center of the capital to help Foreign Companies enter japan. Yes, Business Department tokyo speaking. Reporter it is a Onestop Center for startups and established firms interested in japan. Applicants used to go to several government offices to file paperwork. The tokyo government provides free consultants who help with obstacles such as visas, finding an office and modifying strategies for japan. This representative of a u. S. Ecommerce Company Learned he can get Corporate Tax breaks and subsidies of up to 50,000 for hiring local people. I think the program fits with our strategies very well. Translator our main rivals in asia have a lot more Foreign Companies interested in investing. Theres still a lot tokyo has to do. Reporter the Central Government is helping efforts to revitalize tokyo by designating the capital a special Economic Zone with eased restrictions. Translator im determined to overhaul tokyo, and transform it into a Business Innovation hub. Reporter the governor plans to allow english language applications for establishing companies. He also wants to reduce the waiting time from about 20 days to 3 days, which is the norm in singapore. But some Business People who have come to the country say Government Policies alone wont be enough. This man started a consulting venture two years ago. He has Business Networks in europe, and southeast asia. He says Japanese Companies are reluctant to deal with startups, especially ones run by foreigners. Certainly theres more effort to do business here, as compared to other countries. It is more the attitude of the company to company, or the btob attitude which has to change. Reporter some japanese firms are breaking down these barriers, and finding new Business Opportunities in the process. A major firm set up this facility especially for venture businesses. Onethird of its tenants are foreign startups. A u. S. Mobile Advertising Company has set up an office here. John greiner gets help finding local clients from his landlord. Representatives of the Real Estate Firm accompany greiner when he meets potential customers. The firm also opens up their best network so greiner can find clients, business partners, and funding. Our biggest difficulties are meeting the right clients, and having the clients believe in us. Introduction to important companies, thats, you know, thats not a money thing. Reporter japan is trying to grow by winning a piece of the global market. In order to catch up with rivals in asia, the public and private sectors of japan must make big changes. Nhk world, tokyo. All right. That is going to do it for biz this hour. Heres the markets. The mayors of hiroshima and nagasaki have renewed their call for the abolition of Nuclear Weapons. They are in new york meeting with member nations of the Nuclear Nonproliferation treaty. Preparations are under way for a conference next year to review the agreement.