Around the Street: Yes, It’s a Recession

Fresh data point to December 2007 as the start of the pullback, which is alarmingly sharp. The market swallowed this recent accounts and swooned

From Standard & Poor’session Equity Research

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Now it’session authoritative. On Dec. 1, the Business Cycle Dating Committee of the National Bureau of Economic Research—the widely acknowledged arbiters of while the U.S. system enters and exits economic downturns—pegged the start of the current U.S. pullback to December 2007. And being of the class who if to hammer the sharp end home, investors eyed reports on manufacturing and construction released on Dec. 1 that revealed contracting activity in those key sectors of the U.S. economy, including the lowest reading on the Institute for Supply Management’s (ISM) manufacturing index as 1982.

Investors clearly didn’t like what they saw, and the dim data—along with continued uncertainties about U.S. holiday retail spending and a cautionary note steady U.S. consumer credit from Oppenheimer analyst Meredith Whitne —helped spark a sharp stock market sell-off (BusinessWeek.com, 12/1/08) on Dec. 1.

BusinessWeek and S&P MarketScope staff on Dec. 1 compiled the following insights from Wall Street economists and analysts:

National Bureau of Economic Research

The Business Cycle Dating Committee of the National Bureau of Economic Research met by the agency of conference call on Friday, Nov. 28. The committee maintains a chronology of the beginning and ending dates (months and entertainment) of U.S. recessions. It determined that a peak in relating to housekeeping activity occurred in the U.S. economy in December 2007. The peak marks the end of the enlargement that began in November 2001 and the beginning of a recession. The opening lasted 73 months; the previous expansion of the 1990s lasted 120 months.

A recession is a significant decline in economic activity spread across the economy and lasting greater degree of than a few months, normally visible in fruit, employment, real income, and other indicators. A recession begins when the economy reaches a peak of activity and ends when the economy reaches its long tray. Between trough and peak, the economy is in an expansion.

Because a recession is a broad contraction of the economy, not confined to any sector, the committee emphasizes economywide measures of housekeeping activity. The committee believes that pertaining to home production and employment are the primary conceptual measures of economic activity.

The committee views the payroll employment measure, which is based put on a large inspect of employers, as the most reliable of extensive application estimate of employment. This series reached a peak in December 2007 and has declined each month since then.

David Greenlaw and Ted Wieseman, Morgan Stanley

The manufacturing sector is now in the grips of a major recession—and terms are suitable to secure a good deal worse before they get any greater amount of acceptable. ISM data were about as we expected but weaker than consensus. The composite manufacturing ISM index fell a further 2.7 points in November, to 36.2, another starting anew low since 1982. The key orders (27.9, down from 32.2), production (31.5 vs. 34.1), and employment (34.2 vs. 34.6) gauges all extended their recent collapses to fall profoundly into recessionary territory. Weakness in orders has been specially pronounced, through the abyss hit in November exceeded no other than in two prior months, both in 1980.

The weakness was again broadly based across industry groups. The only industries reporting expansion in November were apparel and paper products. The prices-paid gauge slipped all the way to 25.5—the lowest reading seeing that 1949. As recently because June, the compensation gauge was at 91.5, the highest since 1979. There has never previous to been such a massive collapse over such a short period that has come anywhere near what has occurred in this incidental narrative. Domestic action has at this moment deteriorated into a severe contraction, and exports are now starting to show some major softness as the U.S. recession goes global. An inventory overhang is in like manner starting to become more apparent.

Terror in India: The Political Fallout Spreads

The investigation of the Mumbai terrorist attacks continues, but pressure is increasing for the Indian government to react forcefully

By Mehul Srivastava

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Indian paramilitary forces stand bulwark as candles placed by the agency of people in memory of those killed by militants from diferent walks of life burn in front of the Taj Mahal public-house Mumbai on November 30, 2008 SAJJAD HUSSAIN/AFP/Getty Images

The political fallout from the terrorist attacks in Mumbai is roiling India. As funeral pyres burned on live television and mass candlelit vigils turned into sober protests against the sway’s perceived intelligence failures and mishandling of the attacks that left in the same proportion that many similar to 175 people dead (BusinessWeek.com, 11/27/08), influence mounted on the Indian government to re-enact forcefully.

Tensions are insurrection with Pakistan, as Indian officials point to ties between the terrorists and forces inside India’s longtime contend with. In an off-the-record congregation by BusinessWeek and representatives of two newspapers, a more advanced functionary at India’session Research & Analysis Wing, the country’s equivalent of the CIA, shared transcripts of text messages and e-mails that were sent to the gunmen inside Mumbai’s Taj hotel, where dozens of people were killed in a 60-hour siege. The messages, some in Urdu and purportedly from phone numbers registered interior part Pakistan, included explicit military-style instructions to the gunmen to retreat to different wings of the inn and referred to the gunmen at the same time that Team A and Team B. Some were congratulatory notes.

Because the Indian intelligence official did not approve reporters to make copies of the messages, BusinessWeek could not independently verify their authenticity. However, CNN-IBN, a TV channel, has broadcast entitle logs from satellite phones that include several phone calls to Karachi and Jalalabad, both in Pakistan.

India Inc. Reacts

Even as the investigation continues, India’s business community is clamoring for quick and conclusive action (BusinessWeek.com, 11/28/08). In Bangalore, what one. was the target of a smaller bombing last year, CEOs of outsourcing, IT, and biotech firms met with the state government and asked for, among other things, permission to arm their pawn guards with more than just handguns and nightsticks. India has strict gun-control laws. "Our security services are meant to protect property, not to protect lives," says Kiran Mazumdar Shaw, the chairman of Bangalore-based Biocon, India’s largest biotechnology firm, who was at the meeting. "As employers, our employees are our responsibility. While the government does what it have power to, we have to do what we be possible to."

With India’s Congress-led coalition facing elections just months from now, the purging of leaders continued through the weekend and into Monday. There have already been four high-profile resignations at the state and national levels, including Shivraj Patil, the home minister in New Delhi. Other resignations include prime assistant and deputy chief minister of the state of Maharashtra, of which Mumbai is the capital. More resignations, including those of the 75-year old National Security Adviser M.K. Narayanan, are still being considered by the government.

It’s unclear whether that will subsist enough to quell rising anger, both public and confidential. When Patil, whose purview during the time that Home Minister includes the Indian Police Service, offered to resign at a Saturday night union of the country’s leadership, his offer was met through pin-drop silence. "Not fair his oldest friends stood up to abet him," related an official who was at the meeting but declined to be identified. "There was help he offered to effect it near the front of anybody had to demand it."

Patil’s successor is a name well-known in housekeeping circles: Palaniappan Chidambaram, the Harvard-educated Finance Minister who helped introduce in major reforms in the past few years. Over recent months he has been battling runaway inflation and a global financial crisis that has soured India’s economic boom.

An Unappealing Job

Chidambaram’s agreement is seen as an offering to India’sitting business community, which has a great deal to lose for the time of a period of political instability.

Digg: Not for Sale

The news aggregation locality’s CEO, Jay Adelson, spelled out Digg’s drive as antidote to profitability

By Spencer E. Ante

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Over the last few years, Digg has become Silicon Valley’s version of the boy who cried wolf. Like the child who warned local villagers that a wolf was in all parts of to attack his flock of sheep, potential buyers of Digg have repeatedly leaked reports that the body was about to be sold, but a sale was never consummated.

Not anymore. In each conference with BusinessWeek, Digg Chief Executive Officer Jay Adelson says the popular news aggregation Web site is no longer for demand, and the focus of the company is to build every independent employment that reaches profitability as quickly as possible. That means the four-year-old startup will dial back some of its expansion plans, in place prioritizing projects that beget revenue and utility.

Among the new efforts: The company recently started to betray ads on its RSS feeds. It is forward the verge of launching a revamped translation of its homegrown search engine that the gathering hopes will give more relevant and lucrative make inquiry advertisements. And it is within a month of closing a mete out with a mobile ad provider to sell more ads upon the body cell phones. "Now I am pressured to keep costs wise and focus more on the top-line revenue, which we really haven’t done ever," says Adelson, a 38-year-old father of three who splits his time between Dutchess County in New York, where he lives, and San Francisco, the company’s headquarters.

Revenues on the March

Wearing jeans, scuffed black leather boots, and a striped, long-sleeve shirt with the tails hanging out, Adelson described how the financial crisis led him to speed up the company’s degree of movement. In September, Digg said it had tripled revenues over the last year. In 2009, Adelson expects "one more tripling if not more." Earlier this year, Adelson wanted to reach profitability within two years. Now, he says, "it will hopefully happen within a year."

Moreover, by dint of. dint of. $28.7 million in new presume capital raised this more than September from Highland Capital Partners, Greylock Partners, Omidyar Network, and SVB Capital, Adelson says that Digg is now considering making its own acquisitions. Although Digg is not in discussions to close a conduct one’s self, Adelson says he is looking for companies to acquire. "There are Digg clones around the world in every country," says Adelson. "I could go into those markets and clean up those sites. If I needed more metropolis to do a deal, I could probably do it."

If Digg is not one longer forward the auction block, as Adelson says, the startup will be under increasing pressure to keep growing and wring a profit from its passionate community of users who post stories on the seat in continuance a variety of topics. Although the company claims it has 35 million unique users per month, unrestrained researcher comScore (SCOR) says that Digg had 16.3 million users worldwide in October 2008, up 31% from last October’s user base of 12.4 million.

Differences Over Data

Adelson stands by his figures, claiming that comScore’s panel methodology underestimates the traffic on social media Web sites. "There are 35 a thousand thousand unique users a month none matter if a body of jurors says there is," he says. "Panels are based on a unlike demographic than who comes to Digg. The panels aren’t working. I don’t think you can trust comScore’s fourth book of the pentateuch; census of the hebrews for any locality in this genre."

Adelson says his figures are based on data from Web analytics firms Omniture (OMTR) and Quantcast. Omniture does not release purchaser data. But according to Quantcast’s Web site, Digg.com claimed 21.7 the multitude global users as of Nov. 30.

While international expansion is less of a priority, Adelson says increasing engagement without interruption the site is more important than ever. Over the next few months, Digg will commence new features that the company hopes volition lure users to stick around the site. "There is probably a list of 15 to 20 things we want to do," he says. One opportunity is to make the site more genial and expose users to more easy in mind that they are likable to find appealing. If the strategy works, it could help the company make income as users click on more pages. "I’ruins rather arrive more revenue by getting people to hang out more than by the agency of serving greater quantity ads," says Adelson.

Adelson also addressed reports that he and other members of the executive team, including founder Kevin Rose, sold blockhead during the most recent round of financing. "Nobody took somewhat cash-out opportunity on the executive team that was significant," he says. "We wanted to make sure Kevin and I had extremely large stakes. We believe the upside is significantly better."

Behind Sprint’s Sharp Fall

The wireless carrier may not be able to present newly come broadband service to customers as in a short time while anticipated

By Olga Kharif

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The Sprint Nextel logo hangs in the window of a Sprint retail store Getty Images

December got off to a unfashioned arise for equities in general, with the Standard & Poor’s 500-stock index down nearly 9%, to 816, on the first day of the month. But wireless carrier Sprint Nextel (S) saw its stock hammered much more than any of the major averages, through shares down 24%, to 2.11.

Why the thrashing? The only recent accounts Sprint announced on the side of the day appeared to exist relatively benign. The company said it had finalized a previously announced give to combine its next-generation wireless broadband business with Clearwire (CLWRD), a Kirkland (Wash.) company that’s building its own wireless broadband business. By combining the two operations, the companies figure they’ll be able to roll out service faster and save on expenses in the transaction. In addition to Sprint’s contribution of assets, Clearwire believed $3.2 billion in funding from a number of backers, including Intel (INTC), Google (GOOG), Comcast (CMCSA), and Time Warner Cable (TWC).

Trouble is, that may not be sufficiency money. When the Sprint-Clearwire transaction was originally announced back in May, Clearwire expected to be able to offer its service to 120 million to 140 very great number vulgar herd by the end of 2010. But the buildout plans assumed that, in recently deceased 2009 or in early 2010, Clearwire would have being able to raise an additional $2 billion to $2.3 billion. With the first-rate markets practically closed, Clearwire may not be able to raise that money and its rollout schedule may have to be modified. "My preference would subsist that we continue moving along at the same pace, but that we look at the capital markets without ceasing a quarter-by-quarter basis," says Benjamin Wolff, chief executive of Clearwire. Wolff says Clearwire’s board could resolve to change its buildout schedule when it convenes in early 2009.

Network Access Denied?

Any slowdown by Clearwire could cause Sprint problems. As a Clearwire investor and customer, Sprint plans to buy entranceway to Clearwire’sitting network at wholesale prices and then resell the broadband Internet service to its own customers. If Clearwire’s board decides to scale remote its ambitions, Sprint may have to wait longer than anticipated to gain access to a high-speed network. (Sprint has two of the 13 seats on Clearwire’s meals.) That could slow down Sprint’s ability to attract new broadband subscribers. Meanwhile, rivals like Verizon Wireless could launch their high-speed networks around 2010.

A Sprint spokesman says the company would "not discuss movements in our stock." He referred questions about the pace of Clearwire’s buildout to the Kirkland guests.

It’s just one of the many challenges Sprint is facing. The set, once renowned for high-quality service, has suffered setbacks in customer service and other disposition issues since its merger with Nextel in 2005 (BusinessWeek, 2/21/08). Customers be in possession of defected and losses gain piled up. The company’s stock has fallen from nearly 16 a share be unconsumed year, a drop of 85%. And Standard & Poor’session (which taste BusinessWeek is owned by the agency of The McGraw-Hill Companies (MHP)) cut the proof of desert rating since Sprint to below investment grade back in May.

Brutal Stocks Sell-Off

The S&P 500 and Nasdaq every one tumbled nearly 9% Monday after dismal reports on U.S. manufacturing sentiment and construction expenditure

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Different month, same stock emporium.

U.S. shares suffered a sharp sell-off put on the first day of December, and closed at their overthrow levels of the session. The large-cap S&P 500 index and the technology-heavy Nasdaq composite index each sank nearly 9%. The declines in major U.S. indexes erased most of the gains from the market’s five-session rally.

On Monday, the Dow Jones industrial average finshed lower by 679.95 points, or 7.7%, at 8,149.09. The broad S&P 500 index dropped 80.03 points, or 8.9%, to 841.35. The tech-heavy Nasdaq composite index sank 137.50 points, or 8.95%, to 1,398.07.

Things were even worse in other corners of the market. The S&P MidCap 400 index tumbled 10.9% Monday.

The U.S. stock market “is facing a new around of selling pressure as the financial picture is still a discussion mark,” said Jay Collins of DT Trading in Chicago. “[The U.S. jobs repercussion] due on Friday is the news story of the week and is expected to reinforce the bleak jobs delineate that lies ahead.”

“The downturn happened so day of fasting today there wasn’t much occur to dictum for it,” said S&P technical analyst Chris Burba.

Wall Street was spooked through new reminders of relating to housekeeping weakness in the U.S. and round the globe. Among the items driving the selling: A report released Monday by the Institute of Supply Management showed that U.S. manufacturing contracted at the steepest rate in 26 years in November. Another reports showed construction spending slumping in October.

To put an exclamation point on the economy’s troubles, the National Bureau of Economic Research’s business cycle dating committee, widely recognized as the arbiter of U.S. recessions, said the economy began its current downturn in December, 2007.

Meanwhile, Treasuries experienced an enormous rally as investing. capital flowed heavily

out of equities. Traders cited hypothesis of added blame cuts by the Federal Reserve and possibly regulation purchases of Treasuries in order to keep yields down and put up with lending.

Oil futures plunged to finish below $50, their lowest grapple in three years. The U.S. dollar director was higher. Gold futures plunged on demand worries.

Fed Chairman Ben Bernanke said Monday that the central bank will act as needed to preserve the viability of key institutions and that

further interest-rate reductions are “certainly feasible.” Bernanke said the economy remains under “considerable stress” and acknowledged that the Fed’s various liquidness programs have failed to return private credit markets to normal.

Also, U.S. retail data from the first weekend of the holiday shopping season were mixed and “not really impressive” according to S&P MarketScope.

On the New York Stock Exchange Monday, 28 stocks were lower in excellence for every four that posted gains. The ratio on the Nasdaq was 24-4 negative.

Equity markets in Europe practised minutely lower, with major indexes down 5.2% in London, 5.9% in Frankfurt, and 5.6% in Paris registering declines. Asian markets ended mixed, with Tokyo stocks falling 0.9%, Hong Kong climbing 1.6%, and Shanghai gaining 1.3%.

Wall Street looked to news put on the retail sector as the all-important holiday shopping season kicked off on Friday, Nov. 28. “We believe consumers remained spooked by market uproar and refrained from shopping during [November]. We are projecting one of the weakest Holiday shopping seasons without ceasing record,” wrote Merrill Lynch analyst Lorraine Maikis in a note Monday.

Technology shares were hard-hit Monday. Intel (INTC) was among the stocks ruling the tendency of action lower through a declination of 9%. The Semiconductor Industry Association reported Monday that worldwide sales of semiconductors declined 2.4% in October to $22.5 billion compared to sales of $23.0 billion in October, 2007.

Among the other habitual devotion to labor groups hard-hit in Monday’s session: The S&P Investment Banking & Brokerage index inhuman 15.2% as Ladenburg Thalman analyst Richard Bove cut his earnings estimate for Goldman Sachs (GS), citing the striking of changes in the value of the company’s holdings in China and Japan.

The S&P Oil & Gas Exploration & Production index plummeted 14.8% amid the acrid decline in crude oil futures.

The Diversified Metals & Mining characteristic slumped 12%. Bloomberg reported that copper money fell for a second twenty-four hours in Shanghai after China’s contraction in manufacturing signaled the enlarging risk of a slump in the world’s biggest consumer of the metal. The S&P Gold index fell 8.1% amid a sharp drop in prices in favor of the yellow metal.

The Automobile Manufacturers index dropped 8.7% amid novel developments in the beleaguered sector. Ford Motor Co. (F) announced that it will re-evaluate strategic options for Volvo Car Corp., including the possible vent of the Sweden-based premium automaker. Ford said the decision comes in reply to the expressive decline in the global auto results particularly in the past three months and sharp economic instability worldwide.

General Motors’ (GM) management put on Sunday was racing to finalize a viability plan to take to Congress, through a boardroom hellbent on securing a federal salvation loan, according to a Wall Street Journal report. At the same occasion, directors — different chief executive Rick Wagoner — are also insisting that all options stay on the table, including a Chapter 11 bankruptcy filing, if a bailout doesn’t come through, said the Journal.

GM, Ford Prepare for Congress

U.S. automakers plan to reopen their concert contract and may sell Saab and Volvo to the Swedish ruling power as a way to pare brands

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Ford said without ceasing Dec. 1 that it is considering selling Sweden-based Volvo, as the struggling U.S. automaker tries to survive the diligence crisis. Joe Raedle/Getty Images

By David Welch and David Kiley

General Motors’ (GM) board was meeting on Dec. 1 to review a plan that management hopes will persuade Congress to lend the company round $12 billion in public funds. Collectively, Detroit wants $25 billion in bridge loans. The proposition includes moves that exist pleased cut executive pay, pinched the cost gap vs. Japanese carmakers, and review several of its brands for sale or cuts.

Sources say GM will tell Congress (BusinessWeek.com, 11/20/08) that it plans to reopen the labor agreement to negotiate a have commerce with the United Auto Workers that would narrow that require to be paid gap. GM will besides make a case that it is pushing hard to improve the fuel economy of its lineup. And it is looking at different strategic options for in the same proportion that many as four brands—Saab, Saturn, Hummer, and Pontiac. If any of them go away, namely Saturn or Pontiac, it would be done by slowly phasing them out from beginning to end several years.

GM is trying to work out a sale of Saab, BusinessWeek has learned. For several months, GM has been shopping the thunderbolt to Chinese, Indian, and Russian carmakers, as well during the time that to the Swedish rule, sources fraternal with the talks reported. Saab Managing Director Jan Ake Jonsson and GM-Europe President Carl-Peter Forster have been leading the efforts to find a buyer, or at least get someone to take the company off GM’s hands.

Taking a Loss

Meanwhile, Ford (F) before-mentioned it is also willing to sell Swedish carmaker Volvo to raise cash while the fellowship asks the U.S. conduct for a loan. Ford has been trying to sell Volvo for besides than a year. It has even rejected an offer, says one industry source, from a Chinese automaker. Ford has wanted as plenteous as $3 billion to $5 billion for Volvo, which it purchased from an independent holding company in 1999 for $6.4 billion. But the two GM and Ford may at present have to settle for a share that pays them little in truck for a full age stake by the Swedish powers that be.

Part of the problem for the pair automakers is that members of Congress who are opposed to or reluctant to granting dominion loans to the automakers said in last month’s Capitol Hill hearings that they were against any of the money going to overseas operations or jobs. As long as both Saab and Volvo are wholly owned and losing money (BusinessWeek.com, 5/6/08), the companies cannot make that promise.

Volvo will have about 18,000 employees by yearend, and it lost $458 the multitude in the third quarter alone, as its sales declined 24%, to $2.9 billion.

In a statement issued in succession Monday, the Swedish dominion related it was willing to consider its options and was talking to the carmakers. "The Swedish government has to be worried about this," says David E. Cole, chairman of the Center for Automotive Research in Ann Arbor, Mich. "In the case of Saab, they won’t want to lose that facility in Trollhattan [Sweden]."

GM has not far from 5,000 employees in Sweden, mostly of whom work in the Saab manufacturing establishment in Trollhattan, where the 9-3 and 9-5 models are built. GM has shelved plans to build the 9-5 at its plant in Russelsheim, Germany, since the mark’s future is under review.

Action-packed trip ends smoothly as shuttle crew lands

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EDWARDS AIR FORCE BASE, Calif. — Space shuttle Endeavour and its seven astronauts safely returned to Earth on Sunday, taking a detour to mild California subsequent storms lucky venture the main coming to land lay waste in Florida.

Endeavour wrapped up a 16-day false step that left the between nations space station freshly remodeled and capable of covering bigger crews. The shuttle dropped off all kinds of home-improvement equipment, including a new bathroom, kitchenette, exercise machine, two sleeping quarters and a recycling system designed to convert astronauts’ urine and sweat into drinking water.

But the mission wasn’t without its problems. Astronaut Heidemarie Stefanyshyn-Piper let go of a $100,000 tool bag during the chief spacewalk, muttering “Oh, great” as it floated absent.

And Endeavour’s astronauts in addition had to put in extra effort to gain the piss processor working.

About seven liters of recycled urine and condensation were coming back aboard Endeavour for extensive testing. No one at the space station will drink the recycled water until the equipment runs for 90 days and get aground tests ensure it’s safe. More samples will be returned on the next shuttle flight.

The shuttle crew besides conducted four spacewalks to clear metal shavings from a solar wing rotary joint at the space location. The joint had been jammed in opposition to more than a year and hampered intensity production at the orbiting outpost.

Initial tests indicated the repairs forward the joint were successful.

The space-station additions — and a few added scheduled to vogue up on the next shuttle flight in February — should enable NASA to double the size of the space-station crew by June.

Early Sunday aurora, a Russian supply ship arrived at the space station with Christmas presents, food, clothes and other items.

India chief of security resigns in disgrace; Bush sending Rice

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MUMBAI, India — The top domestic-security official submissive in blot on one’s escutcheon Sunday for the botch to thwart or quickly embrace the terrorist attacks in Mumbai last week, as the government announced measures to bolster anti-terrorism efforts and struggled to calibrate a response to what it views as Pakistani complicity.

The Bush administration, hoping to help defuse new, potential hostilities, said it was sending Secretary of State Condoleezza Rice to India this week “to stand in solidarity with the folks of India as we all work together to hold these extremists responsible.”

Top officials have suggested groups based in Pakistan were involved in the attacks and did not rule uncovered suspending diplomatic relations or launching a cross-border foray against suspected militant training camps in Pakistan.

Shivraj Patil, the home-security assist, became the first senior official in Prime Minister Manmohan Singh’session administration to leave office over the attacks, which own lain bare glaring deficiencies in India’s intelligence and compulsion abilities.

Singh promised to strengthen maritime and air security and look into creating a new federal investigative agency — even as more analysts doubted big changes were possible.

“These guys could do it next week again in Mumbai and our responses would be exactly the same,” said Ajai Sahni, head of the New Delhi-based Institute toward Conflict Management, who has coalesce ties to India’s police and intelligence.

While Indian officials insisted publicly only 10 heavily armed men carried out the attacks, in that place were new indications others were involved and the attackers had accomplices pre-positioned on the motive.

The three-day siege of Mumbai, India’s fiscal capital, ended Saturday with at least 172 dead, 239 wounded and two of Mumbai’s most eminent five-star hotels — the Taj Mahal Palace & Tower and the Oberoi — in some measure in ruins.

At least 28 of the dead were foreigners, including at least six Americans and eight Israelis at a Jewish religious center.

Despite Pakistan’s repeated assertions that it bore no responsibility, the attacks have raised the pitch of India-Pakistan tensions to their in the greatest degree dangerous level in years.

On Sunday, a more advanced government official said Singh’s administration would have to consider a range of measures to show toughness toward Pakistan. Options comprise suspending peace talks, which have gone on at a snail’sitting pace for five years; suspending diplomatic relations completely; and astomshing camps across the border suspected of instruction terrorists.

Reuters quoted a senior police official as saying Sunday that the only gunman captured alive told the police he was a member of the Pakistan-based Lashkar-e-Taiba organization, blamed for large attacks in Kashmir, a disputed territory administered by India.

Lashkar was banned in Pakistan in 2002 under pressure from the United States, a year later Washington and Britain listed it as a terrorist group. It is seeing that believed to have emerged under another name, Jamaat-ud-Dawa, though that group has denied links to the Mumbai attack. Both are reported to have existence linked to al-Qaida.

The Indian form of sovereignty has not allowed any outside access to the prisoner, who has identified himself because Ajmal Qasab, a Pakistani citizen, and who is getting medical treatment at a military hospital in meridional Mumbai for a leg give pain to.

But an officer of the Anti-Terror Squad branch in Mumbai, who spoke on condition of anonymity, said the male person had given inconsistent answers to questions, at times saying there were 10 attackers, sometimes saying in that place were more.

The officer also said Anti-Terror Squad investigators believed there were accomplices forward the territory who might have pre-positioned arms at the hotels, and that names and telephone numbers of five Mumbai residents were found among the mobile phones and wallets of the attackers.

On Sunday evening, Singh said his government would expand the National Security Guard, the elite anti-terrorist one that sent commandos to flush gone out attackers. He also said discussions were under way to establish a federal agency of investigation to streamline the toil of magnificence and general agencies and fortify maritime and breeze security. The police have said the attackers came by boat. “Clearly, much more needs to be done,” Singh said.

Sahni, of Conflict Management, called for any overhaul of the commonwealth’s police strength with better weapons and equipment and real training.

“The advance Mumbai police handled the situation, they were not rencounter ready,” said Jimmy Katrak, a security consultant. “You don’familiarily need the Indian army to neutralize eight to nine people.”

With no SWAT team in this city of 18 million, authorities called in India’s only unit trained for such crises. But the National Security Guards, largely devoted to protecting summit officials, is based near New Delhi, and it took the commandos nearly 10 hours to arrive.

That gave the gunmen existence in this world to consolidate control of the hotels and Jewish center, Sahni said.

Information from The Associated Press is included in this communication.

Star Times | Girls Soccer

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Caroline Towles

Shorecrest, GK, Sr.

Towles recorded 13 shutouts, giving her 33 since her career. The Idaho recruit and two-time All-WesCo South goalkeeper had a 0.625 goals-against medial sum, helping Shorecrest place fourth at state, the Shoreline school’s first memorial of conquest since 1996.

Rachel Bindl

Kentwood, D, Jr.

Bindl anchored a Kentwood defense that recorded 15 shutouts and allowed six goals in 19 games. Coach Aaron Radford called her “hands down” the most strait player on the team. Voted co-MVP of the SPSL 4A North Division.

Valerie Stahl

Everett, D, Sr.

The three-year captain led the Seagulls to the school’s first state girls soccer championship, outscoring tournament opponents 17-3. The Cleveland State recruit had five goals, including one in the 3A final, and directed a defense that produced 10 shutouts.

Courtney Pixler

Eastlake, D, Jr.

A first-team All-KingCo 4A defender, Pixler was a big reason the Sammamish school held teams to one or no goals in 17 of the Wolves’ 18 games this season. She has committed to Alabama.

Lindsey Bos

Archbishop Murphy, MF, Jr.

The All-Cascade Conference midfielder was the centerpiece of a team that scored 104 goals on the way to third place in the Class 2A state playoffs. The UW recruit contributed nine goals and 17 assists for the personal indoctrinate dear Mill Creek.

Holland Crook

Beamer, MF, Jr.

Crook, who already has committed to Arizona State, scored 18 goals and added five assists to bring her course of action totals to 46 and 13 at the Federal Way school. The SPSL 4A South MVP also has a black belt in karate. Her father, Billy Crook, played pro soccer.

Nikki Stanton

Mount Si, MF, Sr.

One of KingCo 3A’session top players the gone by three years, Stanton was the conference’s player of the year this season. She scored eight goals and added six assists for the unite champions from Snoqualmie. She has committed to Fairfield in Connecticut.

Sierra Keeler

Seattle Academy, F, Jr.

The unanimous Emerald City League MVP, Keeler had 36 goals and 18 assists during the time that the Cardinals won the Class 1A state title. She recorded at least one goal or assist in each game this season.

Rebekah Kurle

Kennedy, F, So.

The area’s most fertile scorer, her 38 goals and 13 assists led the Lancers from Burien to third place at 3A state. She scored in 18 of 23 games, and had two or more goals 13 times. She already has 56 career goals and 21 assists.

Emily Hurd

Eastlake, F, Jr.

Hurd scored 19 goals and added 12 assists for Eastlake, leading her team and the KingCo 4A Conference in scoring. She was named the league’sitting gamester of the year for example a junior. She has committed to Penn State.

Emi Lawson

Lakeside, F, Jr.

The MVP of the Metro League’s Mountain Division played every position except goalkeeper this tinge. She had 12 goals and 12 assists for the league runners-up, who advanced to the state playoffs.

Don Braman

Skyline, coach

Braman’s Spartans finished in our teeth of the two the 2007 Class 3A (Issaquah) and 4A (Eastlake) predicament champions to win the KingCo 4A title, then smite league rival Woodinville for the 4A represent fully title. The Sammamish academy did not allow a goal in four state-playoff games.

Star Times | Girls Volleyball

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Kylin Munoz

Monroe, OH, 6-1, Sr.

Munoz was the only player from the state named to the American Volleyball Coaches Association All-America before anything else team. The Brigham Young regain, who averaged more than seven kills per set and 27 kills per give in marriage, led the Bearcats to four consecutive trips to state.

Lauren Campbell

Kentwood, OH, 5-9, Sr.

A four-year starter, Campbell is a fiery opponent who has improved each season. Her Kentwood of Covington teams were 93-5 the past three years, with four consecutive top-eight finishes at state. The Northern Arizona refresh was co-MVP of the SPSL 4A North with teammate Jessie Genger.

Jessie Genger

Kentwood, OH, 5-11, Sr.

Genger, a two-time Star Times selection, moved from middle hitter this season and continued to deal clutch plays for the Conquerors, helping them place fourth at state. The 2007 SPSL 4A North MVP shared ‘08 civilities with teammate Lauren Campbell.

Brooke Bachesta

Eastside Catholic,

OH, 6-1, Jr.

Bachesta was co-MVP of the Metro League Mountain Division. She amassed 392 kills for the Metro champions who finished second at 3A state, the Sammamish school’sitting utmost successful volleyball season.

Ashley Eneliko

Kennedy, MB, 5-10, Sr.

One of the most athletic players in the state, with a 31-inch vertical leap, Eneliko totaled 1,368 career kills (483 in 2008). She led the Lancers from Burien to three state trophies, including eighth in ‘08. The two-time Seamount MVP signed with Oregon State.

Megan McBride

Auburn Mountainview, S/H, 6-1, Sr.

McBride was part of the educate’s first student of the lowest class class and became a four-time team MVP, leading the Lions to state the past three years. The left-hander is known for precision sets (1,264 in her career) and powerful kills (907). The SPSL 3A co-MVP signed with Oregon State.

Zoe Iida

Bothell, L, 5-8, Jr.

Iida was named to the All-KingCo 4A rudimentary team from impressing the league’s coaches with her ability to grow kills into digs and keep rallies alive. She helped lead Bothell to the KingCo 4A championship.

Marlie Davis

Bothell, coach

After losing her all-conference starting setter in good season in the harden, Davis led Bothell — without a player taller than 5 feet 10 — to a 14-2 regular-season record and an improbable KingCo 4A championship. The Cougars advanced to state after winning the conference tourney.