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News Wrap: 12 Arrested in France Amid Suspected Terror Plots

October 5, 2010 at 4:42 PM EDT

HARI SREENIVASAN: Police in Southern France arrested a dozen suspects

today in raids aimed at Islamic militant networks.

The arrests came amid warnings of a possible terror plot aimed at cities across Europe. Police said three of those taken into custody today have links to a network that recruits fighters for Afghanistan.

In Pakistan, a small bomb damaged another NATO oil tanker. It was the

fifth attack on supply convoys headed to Afghanistan since Pakistan closed a key border crossing last week. But, in Washington, Pentagon spokesman Geoff Morrell said he expects the problem to end soon.

GEOFF MORRELL, Pentagon Spokesperson: We have been given indications

that we are making progress on that front, and hope to have the gate reopened as soon as possible. We obviously have a number of supply lines from the north as well which provide us the ability to keep resupplying our forces.

HARI SREENIVASAN: The Pakistanis shut down the border crossing after a

NATO helicopter raid killed three border guards.

This was a big day on Wall Street, as stocks hit some of their highest

levels in five months. The rally followed news that the service sector grew again and that Japan’s central bank cut interest rates to near zero. The Dow Jones industrial average gained 193 points to close above 10944. The Nasdaq rose 55 points to close near 2400.

A former trader at the French bank Societe Generale was convicted today

on all counts in one of history’s biggest trading frauds. Jerome Kerviel was sentenced to three years in prison, and he was ordered to repay the bank a staggering $6.7 billion in damages. Defense lawyers promised to appeal. They said, at his current salary, it would take Kerviel more than 175,000 years to pay those damages.

The U.S. Supreme Court will decide how far the government may go in

background checks of employees. The court today heard a case involving private contractors working for NASA. They oppose having to give personal information, including medical history and past drug use. The outcome could have far-reaching effects because the same employment questionnaires are used throughout the federal work force.

Hungary declared a state of emergency after a torrent of toxic sludge

from an aluminum plant tore through several towns. The death toll rose to four, with 120 injured. The reddish mud burst through a containment reservoir yesterday, and gushed down roads, pushing cars out of its way. The sludge covered entire villages, forcing hundreds to evacuate. The toxic waste from aluminum production can burn skin on contact and cause cancer if it’s inhaled.

Those are some of the day’s major stories.