competitive analysis update 18 us terrorism attacks political security update headlines taliban declare jihad us afghanistan targeted heightening expectations retaliatory attacks us targets bush stokes unease among allies international press call bin ladin brought u dead alive taliban offers deliver bin ladin third country likely muslim country offer almost certain rejected bush administration fbi arrests five additional suspected hijackers raising expectations attacks u officials meet saudi foreign minister washington questions asked involvement sons saudi diplomat attacks analysis efforts bush administration build multilateral coalition terrorism address two key foreign policy issues iraq israel palestinian peace process missteps either area could weaken emerging multilateral coalition terrorism important implications oil market multilateral approach work long term administration need provide countries incentives cooperate anti terrorism campaign especially places moderate arab states dismantling networks suspected supporting terrorist groups involve moving internal targets moreover administration need deal root causes provide willing cadres extremist groups especially economic problems political disenfranchisement dealing factors necessitate us financial support well greater us imagination dealing lingering regional issues policy towards iraq washington appears resisting attempts broaden attacks include iraq point despite internal external pressure action leading indicator assuming firm proof baghdad involvement bombings uncovered aggressive us approach towards iraq seemed likely since july moscow blocked introduction smart sanctions last rollover oil food program however given regional sensitivities arab world washington iraq policy interests states russia lesser extent china country bush administration genuinely multilateral approach anti terrorism unilateral hard line iraqi policy need chose one israeli palestinian peace process without equitable solution conflict experts believe bush team anti terrorism coalition doomed failure initially least signs good sharon government israel resistant us pressure rein aggressive policies towards palestinians washington willingness confront israel issue give clue willingness stay anti terrorism course hold broad coalition together market update us equities next 48 hours seen critical yesterday losses fed cut 8750 dow seen key resistance point looking decisive close 8750 intra day test downside risk seen 7500 8750 area hold 7500 key b c nadir asian crisis two wildcards company warnings torrent continue slight positive coming oracle war issue remains scope duration asia overnight bank japan little headline opportunities ease much speculation criticism cut discount rate 15 bps 1 25 late tokyo today nikkei closed 175 47 europe equities european markets 0630 cdt uniformly around 2 losses opening stability since currencies us steady european trading marginal gains currencies may uncertainty conversations last two days uniformly confirm renewed confidence euro swiss franc continues biggest beneficiary crisis central banking bank england mpc decided cut afternoon 25 bps less later expected monthly inflation numbers complicated picture higher expected rise rising 4 aug 2 6 annual rising government target 2 5 first time 28 months european airlines mirroring american counterparts woes today trading klm issued profit warning virgin cut jobs alitalia appealed government assistance airlines trading though badly us infrastructure nuclear power delegates 132 nations opened annual international atomic energy agency conference monday calls tighter security admissions little done shield nuclear power plant airborne assault architects world nuclear plants designed ground vehicle airborne attacks mind buildings house nuclear reactors far smaller targets pentagon posed would extremely difficult terrorist mount direct hit angle could unleash catastrophic chain events u experts proposing installation anti aircraft weaponry manned military personnel would stationed outside nation 104 commercial reactors airlines attorney general john ashcroft assigns federal agents domestic commercial flights said law enforcement officers believe continuing threat associates hijackers ties terrorist organizations may continuing presence united states