Morning Brief: Zardari pledges 'strong action'

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Pakistani President Asif Ali Zardari promised U.S. Secretary of State Condoleezza Rice he would take "strong action against any Pakistani elements found involved in the attack" on Mumbai.

His government continues to deny any involvement, however, and has expressed skepticism about Indian claims that the attackers came from Pakistan.

"Pakistan is determined to ensure that its territory is not used for any act of terrorism," Zardari said, though analysts doubt Pakistan's civilian leadership has much control over the country's military and intelligence services, which in turn may have lost their hold over militant groups such as Lashkar-e-Taiba.

"They've turned against the hands that once fed them," says Daniel Markey of the Council on Foreign Relations, adding, "[T]here appears to be evidence of continued complicity or at least passive relations between the Pakistani state and some of these groups."

U.S. Presidential Transition

Microsoft founder Bill Gates met with Vice President-elect Joe Biden yesterday, according to Marc Ambinder.

The New York Times looks into incoming White House Chief of Staff Rahm Emanuel's banking ties.

The Washington Post rounds up reactions to President-elect Barack Obama's choice of New Mexico Gov. Bill Richardson as commerce secretary.

Economy

Oil prices have sunk to $46 a barrel, a four-year low.

A record number of European companies are at risk of default, the Financial Times reports.

The U.S. Treasury Department is considering a deeper intervention into the mortgage market.

Americas

The U.S. government has released nearly $200 million in funding to help Mexico fight drug trafficking. The situation is out of control: Drug gangs in Ciudad Juarez are now shaking down schoolteachers for money.

Canadian PM Stephen Harper is fighting for his political life.

Hate crimes against Arab-Americans have steadily declined since 9/11.

Asia

In a turnabout, Chinese officials are now lecturing the United States about the need to stabilize the U.S. economy.

Thailand's popular king was too ill to deliver his traditional birthday speech.

On top of terrorism, India is grappling with a worsening economic downturn.

Middle East and Africa

Zimbabwe's cholera outbrook is a full-blown emergency, officials now admit. The death toll is at 565 and counting, accoring to U.N. figures.

Insurgent attacks in Iraq are at their lowest monthly level since the war began, according to the U.S. military.

Iraqi PM Nuri al-Maliki's bid to accumulate power is provoking a backlash.

Europe

Sweden slashed its benchmark interest rate by a record 175 basis points Thursday. Other European countries may soon follow.

French President Nicolas Sarkozy is pushing for a $33 billion stimulus package, massive by French standards.

Credit Suisse announced a fresh round of layoffs.

The Vatican's reiteration of its stance on homosexuality is coming under fire.

Today's Agenda

Ben Bernanke, the U.S. Federal Reserve chairman, gives a talk on "concentrated poverty."

U.S. auto industry executives appear before the Senate Banking Committee for another grilling. This time, they drove fuel-efficient cars to Washington.

U.S. Treasury Secretary Henry Paulson is in Beijing for his final Strategic Economic Dialogue summit. His opening remarks are posted here.

Russian PM Vladimir Putin is holding his annual live call-in show.

Photo: FILE; Rick Gershon/Getty Images