Washed It!

LOUISVILLE, Ky. — Perfection eluded Zenyatta in the Breeders’ Cup Classic on Saturday night when horse racing’s superstar lost for the first time after 19 consecutive wins.

Blame won by a head in a thrilling finish with the 6-year-old mare, who threaded her way through traffic from last place while the crowd of 72,739 urged her on down the stretch under the lights at Churchill Downs.

Hall of Fame jockey Mike Smith blamed himself for the loss. He walked off the track with his head down, dirt stuck to his face.

“It was my fault,” he said, sobbing. “She should’ve won.”

It was so close, a matter of inches, the result had to be resolved by a photo — a picture that broke the hearts of not only Zenyatta’s owners and trainer but millions of fans around the world.

Blame went to the front in mid-stretch, then fought off another gutty run by Zenyatta, who lagged well behind 11 rivals — all boys — in her customary style.

Blame ran 1 1/4 miles in 2:02.28 and paid $12.40 to win at 5-1 odds. Fly Down was third, while Preakness winner Lookin At Lucky finished fourth.

Zenyatta was the sentimental even-money favorite, playing to the crowd at every chance on her way to the starting gate. She high-stepped her way to the paddock, playfully pawing the ground as they roared. Co-owner Ann Moss held her finger to her lips as a signal for the fans to quiet down.

Zenyatta proved she could beat the boys last year when she rallied from behind to win the $5 million Classic at Santa Anita. It was one of her 17 wins on synthetic surfaces in her home state of California.

This time, though, she was facing the deepest, most talented field of her career on a surface on which she had limited experience. Still, trainer John Shirreffs had said she preferred it to synthetic tracks.

It was her third time running on dirt; in her two previous races, she beat other girls at Oaklawn Park in Arkansas.

But Blame owned home-court advantage. He won twice before on dirt at Churchill, where Zenyatta had never raced.

“She ran an excellent race and just came up a little short,” Shirreffs said. “She ran her heart out.”

Zenyatta’s 19 consecutive wins tied her for most all-time with Peppers Pride, who retired last year after running against much lesser competition. Peppers Pride never raced outside New Mexico and all her wins came against fillies and mares.

American horses earned 12 victories over the two-day championships, with Europe-based horses winning twice.

Goldikova wins $2 million Mile race

Goldikova won the $2 million Mile at the Breeders’ Cup for the third consecutive year, giving Europe its first win of the two-day championships.

The 5-year-old mare bred in Ireland ran the distance on the turf in 1:35.16 on Saturday at Churchill Downs. She became the first three-time winner in the event’s 27-year history.

She paid $4.60 to win as the 6-5 favorite in the field of 11.

Zenyatta loses Breeders’ Cup Classic by a head to Blame

A terrorist attack apparently aimed at two Jewish centers in Chicago was thwarted when two packages the size of bread boxes containing explosives were intercepted in Europe and the Middle East, President Obama and counterterrorism officials announced Friday.

The packages, which had originated from Yemen, were found on cargo planes after a tip from an official in Saudi Arabia. The targets were a synagogue and another Jewish center on the North Side of Chicago, a U.S. official said.

As they launched a terrorism investigation on three continents, authorities said suspicion fell in particular on Al Qaeda’s affiliate in Yemen, which has been linked to the attempted bombing of a Detroit-bound U.S. airliner on Christmas Day. The explosive material found in the two packages is the same as that used in the failed airliner attack, according to a U.S. official.

Authorities discovered the packages late Thursday in UPS cargo planes that had flown from Yemen to an airport in East Midlands, England; and Dubai, United Arab Emirates.

An initial examination of the packages found that “they do apparently contain explosive materials,” Obama said in an announcement from the White House on Friday afternoon. Officials said it was still uncertain whether the devices were operational or whether they were to be picked up and activated by someone in Chicago. One official said federal law enforcement authorities believe the latter scenario to be the most likely.

The events “underscore the necessity of remaining vigilant against terrorism,” the president said. He warned that authorities believe Al Qaeda in the Arabian Peninsula, the Yemen-based group, “continues to plan attacks against our homeland, our citizens and our friends and allies.”

A federal law enforcement official said the cargo packages resembled the kind of smaller but deadly attacks recently urged by Anwar Awlaki, the American-born radical Muslim cleric thought to be living in Yemen. Awlaki sent e-mail to U.S. Army Maj. Nidal Malik Hasan encouraging him to militant activity before the November attacks at Ft. Hood, Texas, in which Hasan is suspected of killing 13 fellow soldiers. The cleric is also suspected of being behind the Christmas Day airliner plot allegedly carried out by Nigerian Umar Farouk Abdulmutallab.

“He is pushing the less sensational,” the official said, asking not to be identified because the investigation is continuing. “There appears to be a good amount of debate within Al Qaeda, and Al Awlaki is pushing for more hits, but on a smaller scale. He also believes that even when attacks are scrubbed or foiled, they nonetheless are successful if it terrorizes the United States.”

Federal authorities searched cargo planes at airports along the Eastern seaboard on Friday as well as a delivery truck in Brooklyn, N.Y., but found no explosives.

An Emirates Airline passenger jet carrying cargo from Yemen was escorted from the Canadian border to New York City by two military jets, in what U.S. officials described as a precautionary measure. A package aboard the passenger plane appeared similar to those found in England and Dubai, officials said, but was found not be contain explosives.

John Brennan, Obama’s counterterrorism advisor, said the explosives “were in a form that was designed to try to carry out some type of attack.”

A federal law enforcement official said initial reviews of the two suspicious cargo packages showed that the one found in England apparently contained a printer or ink toner cartridge with “some kind of white powder” and syringes and wires. He said the package uncovered in Dubai apparently contained cellphone components and a timer. He cautioned that both were still being evaluated and that no firm conclusions had been made.

Obama said that Brennan had spoken with the president of Yemen, who had pledged full cooperation in the investigation.

According to officials, the White House called a 1 a.m. meeting Friday to evaluate the cargo package intelligence, which included video participation with Homeland Security officials. They said the White House decided it was “good enough intelligence” to alert allies in Europe to start checking cargo packages coming from Yemen and bound for the U.S.

At 3 a.m., they said, the U.S. ordered every package from Yemen headed for the U.S. to be pulled off planes and inspected.

Homeland Security officials took a series of steps to enhance security, including heightened cargo screening and additional safety measures at U.S. airports. “Passengers should continue to expect an unpredictable mix of security layers that include explosives trace detection, advanced imaging technology, canine teams and pat downs, among others,” Homeland Security officials said.

A Jewish Federation of Greater Chicago spokeswoman said the group was “taking appropriate precautions” and was “advising our local synagogues to do likewise.” One of the targets was a Jewish congregation that meets at a Unitarian church, according to a U.S. official.

Oren Segal, director of the Anti-Defamation League’s Center on Extremism in Washington, said Rahm Emanuel has been the focus of some attention on extremist blogs since long before he resigned as White House chief of staff to run for Chicago mayor. Segal said that vitriol on message boards peaked when Obama named Emanuel his top aide in early 2009.

The two incidents highlight a known vulnerability in the air cargo industry, one that has been the subject of extensive discussion between the Transportation Security Administration and the industry for several years.

The federal government has mandated in recent years that all cargo on passenger aircraft be screened, a goal that was achieved only this August. But the issue of parcels aboard cargo-only aircraft has been far more difficult to resolve. As far back as March 2009, the industry warned Congress it would not be able to meet the August deadline that 100% of cargo would be screened.

A TSA official acknowledged Friday that not all cargo inbound from abroad is screened and that the cargo that does get screened is handled differently than passenger luggage, which is subject to X-ray. That means that the two suspicious packages may not have been subject to screening when they were originally loaded in Yemen.

paul.richter@latimes.com

richard.serrano@latimes.com

bbennett@tribune.com

Christi Parsons in the Washington bureau and Times staff writer Ralph Vartabedian in Los Angeles contributed to this report.

Explosives found in two U.S.-bound packages, thwarting terrorist attack

The toxic red sludge that inundated three Hungarian villages reached Europe’s mighty Danube River on Thursday but no immediate damage was evident, Hungary’s rescue operations agency said.

The European Union and environmental officials had feared an environmental catastrophe affecting half a dozen nations if the red sludge, a waste product of making aluminum, contaminated Europe’s second-longest river after bursting out of a factory’s reservoir.

The spill Monday released a toxic torrent into local creeks that flow into a network of waterways connected to the Danube. Creeks in Kolontar, the closest town to the spill site, were swollen red and villagers said they were devoid of fish. Kolontar is 42 miles (70 kilometers) south of the Danube.

The red sludge reached the western branch of the Danube early Thursday, Hungarian rescue agency spokesman Tibor Dobson told the state MTI news agency. He did not address concerns that the caustic slurry might contain toxic metals but said its pH content had been reduced to the point where it was unlikely to cause further damage to the environment.

Dobson said the pH content, originally above 12, was now under 10 and no dead fish had been spotted where the slurry was entering the Danube. The National Disaster Management Directorate, in a separate statement, said the pH value was at 9.3 and constantly decreasing.

South of Hungary, the 1,775-mile (2,850-kilometer) Danube flows through Croatia, Serbia, Romania, Bulgaria, Ukraine and Moldova before emptying into the Black Sea.

After Hungary, the Danube flows into the Croatian village of Batina, where experts were taking water samples Thursday which they will repeat daily for the next week, the state-run news agency HINAS reported.

In Romania, water levels were reported safe Thursday, with testing being carried out every three hours, said Romanian Waters spokeswoman Ana Maria Tanase. She said the Danube water had a PH of 8.5, which was within normal levels, but tests were being done to check for heavy metals.

Hungarian Prime Minister Viktor Orban on Thursday visited the three villages coated by the red sludge and declared the worst-hit area a write-off. Orban said he sees “no sense” in rebuilding in the same location.

Local officials said 34 homes in the village were unlivable. However, furious residents said the disaster had destroyed the whole community by making their land valueless.

Angry villagers gathered outside the mayor’s office in Kolontar late Wednesday and berated a senior official of MAL Rt., the Hungarian Aluminum Production and Trade Company that owns the Ajkai Timfoldgyar plant, demanding compensation.

“The whole settlement should be bulldozed into the ground,” bellowed Janos Potza. “There’s no point for anyone to go back home.”

“Those who can, will move out of Kolontar. From now on, this is a dead town,” fumed Beata Gasko Monek.
Toxic sludge spill in Hungary reaches Danube River

The State Department issued a travel alert Sunday for American citizens in Europe in light of increased U.S. and European intelligence that a large-scale Al Qaeda attack may be imminent.

Intelligence officials in the U.S. and Europe have said an increase in activity in recent weeks suggests that a small cell of potential terrorists hiding in North Waziristan, a Pakistani tribal region, are preparing an attack that could be as spectacular as the 2008 raids in Mumbai, India, that killed 166 people.

Plotters could be planning to use “a variety of means and target both official and private interests,” the State Department said, adding that Americans abroad should be careful on trains, subways and other transportation systems, and in visiting hotels, restaurants and tourist spots.

“U.S. citizens should take every precaution,” the travel alert said.

It is thought that Al Qaeda leader Osama bin Laden is behind the plot, and that if successful, it could become the largest terrorist action since the Sept. 11 attacks nine years ago.

Hundreds of thousands of Americans are traveling in Europe at any given time — as tourists, college students and business professionals. But the State Department did not upgrade its alert to a warning, which could have led to widespread cancellations of airline and hotel bookings.

Nevertheless, many in Europe found themselves quickly aware of the situation.

With the Los Angeles Lakers and Minnesota Timberwolves in London preparing for a preseason game, the National Basketball Assn. promised to take “appropriate” measures to ensure their safety.

“The NBA is staying in contact with the U.S. Embassy, the CIA and Scotland Yard,” said Lakers spokesman John Black. “They are keeping us informed of the situation.”

European governments began warning of a possible attack last week.

In Britain, the threat of terrorism has been listed as “severe,” meaning an attack is highly likely. Britain’s Foreign Office also warned its citizens to be careful traveling in France.

French Defense Minister Herve Morin told Le Parisien newspaper that “the terrorist threat exists and could hit us at any moment.” But Morin said law enforcement officials were continuing to pursue would-be terrorists.

“Networks organizing themselves to prepare attacks are constantly being dismantled around the world,” he said. “It is good for the French to know this.”

The U.S. military in recent weeks has stepped up drone missile attacks on suspected hideouts in regions of Pakistan, and the U.S. is passing its intelligence to its European counterparts.

According to intelligence sources, the threat apparently arose after the arrest and interrogation of a German man of Pakistani origin who was being held at the U.S. air base in Bagram, Afghanistan. He is said to have provided information about the activities of half a dozen other men from Germany and England who were linked through Al Qaeda and were reportedly talking to other operatives in several European cities about upcoming strikes.

richard.serrano@latimes.com

U.S. issues travel alert for Europe amid threat of Al Qaeda attack

After a difficult August, Wall Street began September with a big rally thanks to encouraging news about the manufacturing sectors in the United States and China.

The Dow Jones industrial average shot up 254.75 points, or 2.5%, to 10,269.47. The broader Standard & Poor’s 500 index soared 3%, as did the tech-dominated Nasdaq composite index.

In Europe, key stock indexes shot up 3.8% in France and 3.5% in Spain.

The surge came after the major U.S. indexes sank more than 4% in August on economic data that indicated a slowdown in economic growth and raised fears of a double-dip recession.

The manufacturing data Wednesday encouraged investors who thought the bearish sentiment had gone too far. Only 20.7% of investors ended August with a bullish outlook, the smallest percentage since the stock market hit bottom in March 2009, according to a index of market sentiment compiled by the American Assn. of Individual Investors.

“The catalyst allows you to look at things with a clearer head,” said Jim Paulsen, the chief investment strategist for Wells Capital Management. “The pessimism got extreme at the end of August there, and extreme pessimism is a sign that people are overdoing it.”

Wall Street opened higher Wednesday after a report from China indicated faster-than-expected growth in the country’s manufacturing sector.

The rally soon accelerated on an unexpected increase in a similar index of U.S. manufacturing activity. The Institute for Supply Management’s gauge rose to 56.3 from 55.5 last month; anything above 50 suggests the sector is growing.

The manufacturing numbers were particularly encouraging because factory sector has been one of the leading drivers of the economic recovery since it began.

The positive news relieved some of the pressure on the market for U.S. Treasury bonds, which some investors had bought as a hedge against a worsening of the economy. The yield on the benchmark 10-year T-notes jumped to 2.58% from Tuesday’s 19-month low of 2.47%.

The shift in sentiment Wednesday was such that investors appeared to shake off some economic reports that were less encouraging.

ADP, a payroll-service company, said private companies cut a net 10,000 jobs in August; analysts had expected an increase.

Analysts on average expect the Labor Department to report Friday that U.S. employers, including governments, shrank their payrolls by 100,000 jobs in August.

Other reports Wednesday showed weak car sales in August and a bigger-than-expected drop in construction spending in July.

Despite Wednesday’s sharp gains, stocks are unlikely to see a sustained rebound as long as the U.S. continues to suffer from high unemployment, said John Stoltzfus, chief market strategist at Ticonderoga Securities.

“The reality is we’ve been here before where we’ve seen rallies followed by sell-offs,” Stoltzfus said. “We expect that until some substantial catalyst arrives on the landscape the market is likely to be a giveth and taketh market, with short rallies and short sell-offs.”

nathaniel.popper@latimes.com

Stocks surge amid signs of growth in manufacturing

Stocks and interest rates tumbled Wednesday as investors around the world took an bleaker view of the U.S. economy.

The Dow Jones industrial average fell more than 200 points and all the major indexes fell more than 2 percent. The yield on the Treasury’s 10-year note fell to its lowest level since March 2009 as investors sought the safety of government securities.

Companies across a wide range of industries were down Wednesday. Only 324 stocks rose on the New York Stock Exchange, while 2,564 fell, a sign that investors expecting all businesses to suffer if the economy continues to weaken.