Al Qaeda expands reach as Iraq gains ground
U S intelligence chief warns Qaeda remains the top U S threat and now has cells forming abroad as Pakistan's tribal region trains operatives for attacks in Afghanistan the Middle East Africa and the United States fewer than 100 terrorists moved out of Iraq for new cells while Washington debates the 3 1 trillion budget and war funding President Bush faces Senate criticism over debt Medicare and Iraq cost proposed cuts challenged by Democrats and some Republicans
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Max Baucus
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Henry Paulson
U S service sector shrinks signaling potential recession
U S service sector contracts for the first time in five years dashing hopes of avoiding a downturn. Dow Jones drops about 370 points amid worries the economy may slip into recession with economists forecasting varied severity. Allied Van Lines files for bankruptcy while Charming Shoppes plans 200 layoffs as Dollar Thrifty trims 2007 earnings due to weak travel demand and soft used-car sales.
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Joel Naroff
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Lane Bryant
Dollar Thrifty Automotive Group Inc
Detroit mayor settlement documents must be made public
A Wayne County judge ruled that documents tied to a whistle blower suit and a text message sex scandal involving Mayor Kwame Kilpatrick must be released. The city plans an appeal, arguing secrecy. The suit, filed by two officers, led to a verdict and an $8.5 million payout.
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Detroit Free Press
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Funeral prayers in Iraq for slain couple and son
International report details prayers held for an Iraqi couple and their son killed when US forces stormed their Adwar village home. The incident underscores rising tensions after the raid and prompts calls for accountability from local and global observers.
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Adwar
Iraq
U S Faces New Civilians Death Claims in Iraq
In Baghdad, Sunni allies protest additional civilian deaths after a U S airstrike last week and a raid on a mud-brick house in Adwar near Tikrit. The operation followed tips and heightened tensions with anti al Qaida partners critical to the campaign.
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Iraq
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Saddam Hussein
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Rebels threaten Chad capital as hundreds dead in coup bid
Red Cross officials roaming N Djamena report hundreds of civilians killed in a rebel coup attempt. Soldiers blocked two bridges into Cameroon cutting escape routes while France offered possible military aid. government claims to have repelled rebels and needs no foreign help.
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