Asian stocks tumble after heavy sell-off on Wall Street

Japan's main Nikkei 225 index shed 3.4% to 9,329.75. South Korea lost 4.2%, while Australia slid 2.4%.On Thursday, shares in the US and Europe tumbled on fears about the strength of the US economic recovery and the eurozone debt crisis.Asian stock markets have slumped on Friday, extending a global equity sell-off after Wall Street had its worst day in more than two years.Analysts warned that global markets may remain volatile in the coming weeks."People were cautiously optimistic that we would get back on track in the second half of the year. But with the US recovery stalling and the possible repercussions for the global economy, stock markets have been under pressure for a while."The sell-off in global equities has hit investors hard.Over the past nine trading sessions, the US S&P 500 stock index has lost $1.37tn (£843.6bn) from its total market value.In Europe, the UK's FTSE has seen £160.9bn ($261bn) wiped off its market value. In Germany, the Dax has shed 85.5bn euros (£74.2bn; $120.5bn), with France's Cac losing 13.6bn euros."Fear is the major theme," David Cohen of Action Economics told the BBC in an interview.

Syria unrest: UN condemns government crackdown

It is the first clear condemnation issued by the Security Council, which includes longstanding allies of Syria such as Russia.The UN Security Council has condemned the Syrian government for a deadly crackdown on protesters.It comes as the Syrian army attacks Hama, a centre of opposition protest, with reports of much loss of life.It was adopted over the fears of some members that any action could lead to Libya-style intervention.Dozens of people are believed to have been killed in the action against Hama, with residents saying tanks have now shot their way into Assi (Orontes) Square, in the centre of the city of 800,000 people.Human rights groups say at least 140 people have been killed in the Syrian unrest since Sunday, mainly in Hama, adding to a civilian death toll believed to be more than 1,600 since March.In Wednesday's statement, the council says it "condemns the widespread violations of human rights and the use of force against civilians by the Syrian authorities".
European members of the 15-nation council had pushed for a strong resolution condemning the Syrian government and calling for a rights inquiry.The statement said those responsible for the violence should be held accountable.The BBC's correspondent at the UN in New York, Barbara Plett, says the statement is less than what the European states on the council would have liked, but more than might have been expected given the strong opposition from some members to saying anything on Syria.It also called for "an immediate end to all violence and urges all sides to act with utmost restraint, and to refrain from reprisals, including attacks against state institutions."The statement stressed that the only solution to the crisis was a Syrian-led political process, in effect ruling out outside intervention, says our UN correspondent.

US avoids default as Obama signs debt bill into law

The bill cleared its final hurdle in the Senate by 74 votes to 26.President Barack Obama has signed legislation to increase the US debt ceiling and avert a financial default after Congress voted in favour of a bipartisan compromise deal.It raises the debt limit by up to $2.4tn (£1.5tn) from $14.3tn, and makes savings of at least $2.1tn in 10 years.The deal was struck after negotiations between Republicans, Democrats and the White House went down to the wire.Without a deal to raise the debt ceiling, the US would have been unable to meet all its bills, the treasury department had warned.Speaking at the White House shortly after the decisive vote in the Senate, President Obama said it was "pretty likely that the uncertainty surrounding the raising of the debt ceiling for businesses and consumers has been unsettling".The bill's signing came roughly 10 hours before the expiry of a deadline for Washington to raise its borrowing limit."It's something we could have avoided entirely," he added.
He urged Congress to now look to boost the economy through measures to create jobs and increase consumer confidence.The president said more action was needed, saying it was impossible for the US to "close the deficit with just spending cuts"."We can't balance the budget on the backs of the very people who have borne the biggest brunt of this recession," President Obama said, reprising one of his key themes of recent weeks.

PM acting under secret 7-pt deal: NC

It seems the already troubled relation between the ruling and opposition parties is set worsen further following Monday´s cabinet reshuffle by Prime Minister Jhalanath Khanal.The main opposition Nepali Congress (NC), which had repeatedly warned the prime minister against the reshuffle and has been obstructing parliament, has said it will launch still more stringent protest. NC has alleged that Prime Minister Khanal is bent on reviving the controversial seven-point deal reached secretly between him and UCPN (Maoist) Chairman Pushpa Kamal Dahal hours before the formation of his government on February 
NC chief whip Laxman Ghimire alleged that the fresh bid by the prime minister to induct new Maoist ministers was tantamount to throwing away the five-point deal into the dustbin."We can no longer expect Prime Minister Khanal to deliver on peace and new statute. The prime minister is moving ahead on the path set out by the controversial seven-point deal," he said. "We will continue with the House obstruction until the five-point deal is implemented and the prime minister steps down," he further said. The NC has been obstructing the parliament for past several days to exert pressure on Prime Minister Khanal to step down immediately.
  Prime Minister Khanal had visited the residence of NC President Sushil Koirala on Sunday to court NC´s support for cabinet reshuffle. NC leaders said the fresh move of the prime minister only vitiates the environment of national consensus. "The move of the prime minister to administer oath of office and secrecy to new Maoist ministers is an attempt to revive the controversial seven-point deal," said NC leader Ramesh Lekhak.
     Among other things, Prime Minister and UML Chairman Khanal and UCPN (Maoist) Chairman Pushpa Kamal Dahal in the ´secret´ deal had agreed to lead the government by turns. NC has grown suspicious as the Maoist leaders have been publicly saying that Maoist would lead the government after August 31 -- the deadline of the extended term of the CA -- as per the secret seven-point deal. 

Obama announces US deficit deal between party leaders

He said the deal would cut $1tn of spending over 10 years, and set up a committee to report by November on a proposal to further reduce the deficit.US President Barack Obama says Republican and Democratic leaders have reached an agreement on raising the US debt limit and avoiding default.But Congress still has to approve the deal, and no votes are expected until Monday at the earliest."I want to announce that the leaders of both parties in both chambers have reached an agreement that will reduce the deficit and avoid default, a default that would have had a devastating effect on our economy," Mr Obama said.The parties face a Tuesday deadline to raise the $14.3tn (£8.7tn) debt limit.Democrats and Republicans in Washington have been deadlocked over finding a plan on how to cut spending and raise the debt limit as the Tuesday deadline approaches.The US president said it was not the deal he would have preferred, but noted that the compromise plan would make a "serious downpayment" on the US deficit.

US Republicans confident about deal on US debt limit

Republican Senate leader Mitch McConnell said there was "a level of seriousness with the right people at the table".Republican leaders have expressed confidence that a deal can be struck to raise the nation's debt limit before Tuesday, and avert possible default.In a sign of the level of anxiety over the issue, troops in Afghanistan asked Adm Mike Mullen if they would be paid.Senior Senate Democrat Richard Durban spoke of "a more positive feeling".The admiral, who as chairman of the Joint Chiefs of Staff is on a visit to southern Afghanistan, said he did not know whether that would be the case if the US fails to raise the $14.3tn (£8.7tn) limit by 2 August.Democrats and Republicans have so far rejected each others' proposals for cutting spending and raising the debt limit.Late on Saturday, Mr Reid said he was postponing a planned procedural vote on his bill in the Senate.President Barack Obama backs Senate Majority Leader Harry Reid's proposal, which would cut $2.2tn from deficits and raise the debt ceiling by $2.7tn, meaning the issue would not have to be revisited until after the 2012 elections.

Plane from New York crashes at Guyana airport

The Caribbean Airlines Boeing 737-800 flight BW-523 from New York had 163 people aboard.A plane has crashed and broken in two on landing at Guyana's main airport in the capital, Georgetown, causing injuries but no deaths.The plane apparently overshot the runway at Cheddi Jagan International Airport during wet weather.Guyana's president said it halted near a 200-foot (61-metre) ravine that could have resulted in dozens of deaths."We are very, very grateful that more people were not injured," Bharrat Jagdeo added, quoted by AP news agency.The airport was due to re-open at 1000 local time (1400 GMT).A woman quoted by Guyana's Kaieteur News service described hearing a loud sound when it landed in Guyana, and said everyone began screaming."It was terror," she said. "I was praying to Jesus."The plane had made a stop in Trinidad en route from New York.
Rescuers struggled in the dark to free other passengers from the wreckage.One woman described how a taxi driver got to the scene before the emergency services and charged her to be driven back to the terminal.Her husband opened the emergency door and passengers began escaping, she added.There were 157 passengers and six crew on board, it said.The accident occurred at 0132 local time, according to a statement from Caribbean Airlines.They are being treated in hospital in Georgetown.Caribbean Airlines, which is majority-owned by Trinidad and Tobago with Jamaica holding a minority stake, does not have a history of serious safety problems.Health Minister Leslie Ramsammy told the French news agency AFP one person had suffered a broken leg and several others sustained minor bruises.