A CORNERED OLI PROROGUES THE HOUSE AND CONSIDERS SPLITTING THE RULING PARTY

After finding himself on shaky ground in the wake of growing calls from

within his party to step down, Prime Minister KP Sharma Oli on Thursday

recommended prorogation of the ongoing session of the federal parliament.

The recommendation was swiftly approved by the President.

Oli also reached out to the main opposition Nepali Congress and sought

support in case his government falls in the minority. One option Oli is

mulling, if he runs out of alternatives, is reintroducing the Ordinance to

Political Parties Act, which was shelved in April after a huge controversy.

With the House session prorogued, Oli now has an opportunity to introduce an

ordinance to amend the Political Parties Act 2073 to make it easier to split

the party. Oli could decide to split if he is further cornered in the party,

where the other chair Pushpa Kamal Dahal 'Prachanda' and senior party

leaders Madhav Kumar Nepal, Jhala Nath Khanal and Bamdev Gautam have been

demanding his resignation as both party chair and prime minister. Ending the

House session also saves him from having to pass the floor test, as his

opponents cannot present a motion of no confidence.

According to party insiders, Oli has made his move and now it is up to the

opposing faction to respond.

Prachanda and Oli are co-chairpersons of the ruling Nepal Communist Party. A

crucial meeting of the party central committee has been deferred till

Saturday as efforts are being made to keep the party intact.

NCP spokesperson and former Deputy Prime Minister Narayan Kaji Shrestha

acknowledged that the party was going through a deep crisis and efforts were

on to keep the unity.

BILL TARGETING BANKS OVER CHINA'S HONG KONG LAW PASSES U.S. SENATE

The U.S. Senate unanimously approved legislation on Thursday to penalize

banks doing business with Chinese officials who implement Beijing's

draconian new national security law on Hong Kong, sending it to the White

House for President Donald Trump's signature.

The House of Representatives on Wednesday also passed the bill without

opposition, a rare example of overwhelming bipartisan support reflecting

concern over the erosion of the autonomy that had allowed the former British

colony to thrive as China's freest city and an international financial

center.

The United States and China have been at loggerheads for months over the

handling of the coronavirus pandemic and Beijing's harsh response to

protests in Hong Kong. Washington has also sought to put more pressure on

China over mistreatment of Muslim Uighurs in the Xinjiang region.

"This is an urgent moment. Our timing could not be more critical," said

Democratic Senator Chris Van Hollen, a lead sponsor of the "Hong Kong

Autonomy Act," in a Senate speech urging support for the legislation.

"Through this bill, the U.S. Senate makes clear which side we are on," said

Republican Senator Pat Toomey, a co-sponsor.

The bill calls for sanctions on Chinese officials and others who help

violate Hong Kong's autonomy, and financial institutions that do business

with those who are found to have participated in any crackdown on the city.

CHINA WARNS UK AND AUSTRALIA OF 'CONSEQUENCES' OVER HONG KONG CITIZENSHIP

PLAN

China warned Britain on Thursday it could retaliate with "corresponding

measures" for London's decision to extend a broader path to citizenship for

the residents of Hong Kong.

Britain's offer came in response to a sweeping new security law that China

unveiled for the former British territory this week.

Hong Kong was under U.K. jurisdiction until it was handed over to China in

1997 with a guarantee that Beijing would preserve the city's judicial and

legislative autonomy for 50 years.

The Chinese embassy in London stressed that "all Chinese compatriots

residing in Hong Kong are Chinese nationals".

The British plan covers almost three million Hong Kongers who either have a

British National Overseas (BNO) passports or are eligible to apply for one.

"If the British side makes unilateral changes to the relevant practice, it

will breach its own position and pledges as well as international law and

basic norms governing international relations," it said in a statement.

"We firmly oppose this and reserve the right to take corresponding

measures," it said without elaborating.

Meanwhile, Australian PM Scott Morrison said on Thursday that his cabinet

was "very actively" considering offering citizens safe haven. Zhao urged

Australia to "stop moving further down the wrong path".

UK TO RELAX ENGLAND'S QUARANTINE RULES FOR SUMMER TRAVELLERS

Britain's government said it will lift its Covid-19 quarantine requirement

for people arriving in England from countries including Germany, France,

Spain and Italy from July 10.

A full list of countries covered by the relaxation would be announced on

Friday, the country's transport ministry said.

Under the existing rules, travellers must self-isolate for 14 days on

entering the country, something airlines and the travel industry have said

will cost thousands of jobs and inflict further damage on the economy.

The government said it expected countries included on the quarantine-free

list for England would reciprocate by relaxing their own travel

restrictions.

Britain's foreign ministry would set out exemptions from its global advisory

against "all but essential" international travel from July 4.

The devolved governments of Scotland, Wales and Northern Ireland have their

own powers over public health issues.

Britain said it would require all travellers, except those from the exempted

countries, to provide their contact information including their travel

history on arrival. People who have been in or transited through non-exempt

countries will still have to self isolate for 14 days.

The Telegraph newspaper reported on Thursday the government would end

coronavirus quarantine rules for those arriving from 75 countries so that

people can go on holiday.

The UK would also lift a ban on non-essential travel to nearly all EU

destinations, the British territories including Bermuda and Gibraltar, and

Turkey, Thailand, Australia and New Zealand, the Telegraph added.

MERKEL URGES EU TO PREPARE FOR POSSIBILITY OF A NO-DEAL BREXIT

The European Union must prepare for the possibility that talks for a deal

with Britain over their future relationship could fail, Chancellor Angela

Merkel said on Wednesday.

"I will keep pushing for a good solution, but the EU and Germany too must

and should prepare for the case that an agreement is not reached," Ms.

Merkel told the Bundestag as Europe's biggest economy takes over the

presidency of the 27-member bloc.

Britain officially completed its delayed departure from the European

integration project on January 31.

London and Brussels now have until the end of December to strike a brand new

agreement or end their half-century relationship without specific plans for

how they intend to trade or coexist in other fields.

Without a new agreement, they would see ties reduced to minimum standards

set by the World Trade Organization with high tariffs and serious

disruptions to business.

After several months of disruption by the pandemic, the EU and Britain on

Monday launched five weeks of negotiation on a deal to define their

post-Brexit relations, with London keen to wrap things up quickly.

With both sides still entrenched in their positions, Prime Minister Boris

Johnson had insisted on Saturday that Britain was ready to accept the

consequences of no deal if common ground cannot be found.

Ms. Merkel had also sharpened her tone, questioning in an interview if

London really wanted a deal.

A deal would have to be done by the autumn to give national Parliaments as

well as the EU Parliament enough time to ratify the agreement.

US FIRMS CREATE RECORD 4.8 MILLION JOBS IN JUNE

The US economy created jobs at a record pace in June as firms took on more

staff after the coronavirus downturn.

Payrolls surged 4.8 million, the most since the Labor Department began

keeping records in 1939, helped by the reopening of factories and

restaurants.

It follows May's jobs rebound, when 2.5 million joined the labour market,

and comes after consumer spending data saw a jump in activity.

But a recent spike in Covid-19 cases has raised fears for continued growth.

June's rise is far higher than the three million jobs that many economists

forecast would be created last month.

However, separate Labor Department data also showed that in the week ending

27 June, initial claims for unemployment fell only slightly, to 1.43

million, on the previous week.

Oxford Economics called it a "worryingly small decline".

Meanwhile, President Trump hailed the huge employment gains, but he

continued to downplay surging COVID-19 cases that could reverse the

tentative recovery.

His cheering drew a sharp rebuke from former vice president Joe Biden, who

is challenging Trump in the November election and said there is little to

celebrate with the economy still in a dire state.

KIM JONG-UN HAILS NORTH KOREA'S 'SHINING SUCCESS' AGAINST COVID-19: REPORT

North Korean leader Kim Jong-Un has praised what he described as his

country's "shining success" in holding off the new coronavirus, according to

state-run KCNA news agency Friday.

The head of the hermetic totalitarian state spoke at a Worker's Party

politburo meeting on Thursday discussing the impact of the virus, six months

after North Korea closed borders and put thousands in to isolation.

KCNA reported that after reviewing efforts, Kim "said we have thoroughly

prevented the inroad of the malignant virus" and "maintained stable

anti-epidemic situation despite the worldwide health crisis".

The reclusive leader praised the "shining success achieved by the

far-sighted leadership of the Party Central Committee and a high sense of

voluntary spirit displayed by all people who move as one on orders of the

Party Central Committee," KCNA continued.

But he also stressed the need to "maintain maximum alert" especially in

light of new outbreaks in "neighbouring countries".

"He repeatedly warned that hasty relief of anti-epidemic measures will

result in unimaginable and irretrievable crisis," KCNA said.

MACRON SAYS NEXT PHASE OF HIS TERM WILL HAVE NEW TEAM

French President Emmanuel Macron said on Thursday the next phase of his

presidency will be embodied by a new government team, but he remained coy

about the future of his prime minister.

Mr. Macron told regional newspapers in an interview that one of the reforms

he would want to push in the final two years of his term was the overhaul of

the pension system.

"The new phase entails new goals of independence, reconstruction,

reconciliation and new methods. Behind that there will be a new team," Mr.

Macron told La Montagne newspaper.

There has been mounting speculation of a government reshuffle after last

Sunday's local elections saw the Greens trounce Macron's laRem party and

take control of big cities.