The attacks in India continue to dominate the newspapers this morning

Indian soldiers stormed the last hideouts of Islamist militants in Mumbai yesterday after a day of bloody confrontation that left 120 dead, hundreds injured and the country's prime minister pointing the finger of blame at "external forces".
Over 24 hours, gangs of heavily armed young men had attacked two luxury hotels, a hospital, a popular restaurant and a railway station. Trapped by gunfire and explosions were bankers, businessmen and women, actors and members of an ultra-orthodox Jewish group - many of whom were freed by security forces.

reports the Guardian

The Independent reports that

Confusion swirled as reports of the sieges being over were swiftly followed by reports of fresh gunfire and new explosions, and the Israeli and Italian authorities said their nationals were still being held hostage more than 24 hours after the ordeal began. But there were hopes the violent drama might be drawing to a close as police appeared to be gaining the upper hand.

The Times meanwhile reports that

The only Briton confirmed to have died in the terror attacks in Bombay gave a harrowing account of the unfolding drama just moments before he was shot dead.
Andreas Liveras, 73, a British yachting tycoon who emigrated from Cyprus to London in 1963, telephoned the BBC from a locked room in the Taj Mahal Palace hotel as terrorists fired AK47 automatic rifles and set off grenades outside.
“The hotel is shaking every time a bomb goes off,” he said. “Everybody is just living on their nerves.”
Hours later, at 9.30pm local time, Mr Liveras was pronounced dead by doctors at St George’s hospital. The circumstances of his death remain unclear, but a hospital spokesman said that he had been shot “multiple times”.

The Telegraph tells how A British man told how he escaped gunfire from Mumbai's (formerly Bombay) Taj Mahal hotel.

Mark Coutts-Smith described how he saw terrorists roam through the hotel setting off bombs and starting fires after fleeing along with other guests.
He explained the panic as desperate people tried to escape. Those that fled then watched the terror unfold from the nearby Gateway to India.
"It was dreadful to be so powerless and imagine what was happening to people still inside. There were just five of us foreigners who got out early, but gradually groups of people who had hidden in various locations around the hotel came dashing out and we gradually pieced together the events," the fifty-three-year-old from Hertfordshire said.

Boy from Hell says the Sun reporting how

A BABY-FACED gunman coolly walks through the hellish carnage in Mumbai after terrorists unleashed an attack that killed at least 119 people.
One Briton was last night known to be dead in the horror in India which shocked the world. He was Cyprus-born tycoon Andreas Liveras, 73, of Newark, Notts.

Home-grown militants are prime suspects says the Guardian

The Mumbai attacks are unique in the history of recent violent militancy, Islamist or otherwise. As Indian security agencies race to work out who was behind them they will be negotiating a maze of conflicting clues.
A group calling itself the Deccan Mujahideen claimed the operation. The name indicates a local group - the Deccan is the central Indian plateau - and a probable link to the Indian Mujahideen who started a bloody bombing campaign a year ago.

The Independent adds that

Two questions hang over the massacres, for which Indian security forces appear to have been completely unprepared: who did it, and why?
Security analysts said yesterday that, while the involvement of al-Qa'ida could not be ruled out after foreigners were targeted for the first time in a major Indian attack, initial suspicions focus on home-grown Islamic militant groups which have become a major concern for authorities.

Away from India and the main news at home is that Terror police seize Tory MP Damian Green over 'immigration leaks to the media'

A senior Conservative frontbencher was sensationally arrested by anti-terror police yesterday.
Shadow immigration minister Damian Green also had his home, his Commons and constituency offices searched over claims that he leaked confidential Government documents.
The arrest, in an operation described by Mr Green's colleagues as ' Stalinesque', plunged the Tories into an unprecedented row with the police and the Government.

The Times reports that

The Metropolitan Police denied any ministerial involvement in the decision to arrest Mr Green. “A 52-year-old man . . . has been arrested on suspicion of conspiring to commit misconduct in a public office and aiding and abetting, counselling or procuring misconduct in a public office,” it said.

The Telegraph reports that

Thai protesters brace for raids on Bangkok

after Prime Minister Somchai Wongsawat declared a limited state of emergency authorizing police to take back the terminals. Mr Wongsawat's elected government is struggling for survival amid mounting rumours of a military coup.
The city's second airport, Don Muang, which carries mostly domestic traffic, was closed on Thursday morning after being overrun by anti-government protesters, severing the last air-link between the city of 8 million people and the outside world.

The Mail continues to probe the case of the British Fritzl

A single doctor examined the pregnant daughters of the 'British Fritzl' for two decades and never suspected anything sinister within the 'peculiar' family.
Dr Thakur Singh could not say why, incredibly, he never spotted the vile incest before him when he saw the pregnant daughters on dozens of occasions when they were being kept as sex slaves by their father.
Battered and raped almost weekly, the girls were made pregnant 19 times during 28 years, but the family's long-serving GP said he did not realise they were being abused.
Over a 20-year period, Dr Singh tended to the girls countless times – first for childhood ailments and later for various issues and complications

The Sun meanwhile has an exclusive

TWO sisters who had nine children by their rapist father have told The Sun how they even pretended to their MOTHER that other men were to blame for their pregnancies. Last night the sisters told how they had begged their father to stop the torture.
One said she even began PAYING the benefits-obsessed 56-year-old not to abuse her.

Baby P 'could have ended up a parasite' reports the Independent

The head of one of the country's leading charities provoked anger yesterday after he suggested that Baby P could have grown up to be "feral, a parasite, helping to infest our streets".
Martin Narey, the chief executive of Barnardo's, was accused of being "insensitive and provocative" after focusing on the case of the little boy who died in a blood-splattered cot after months of abuse. Charities and MPs insisted he should have steered clear of focusing on an individual case, particularly one that had engendered such an outpouring of sympathy.

Shannon's mother sobs as she denies involvement in kidnap conspiracy reports the Guardian

Matthews' trial was adjourned to allow her to recover after an hour of gulping and choking back sobs, as she claimed she was told to take the blame for the failed plot - to claim a £50,000 reward for finding the schoolgirl - because she was a woman without convictions who "would get off lightly".
More than 50 times in two hours she denied involvement in the kidnap, after walking the few yards to the witness box from the dock at Leeds crown court where she has sat silently for a fortnight. She repeatedly answered "I did not" and "no" as barristers asked her about alleged bullying, threats and lies surrounding the nine-year-old's disappearance from her home in Dewsbury, West Yorkshire, for 24 days in February and March.

The Times reports that

Support for Gordon Brown plummets over economic rescue

according to a special Populus poll for The Times. This shows that only just over a third of voters think that the Government’s measures to boost the economy will make things better in either the short or long term.
As many people think that the package announced on Monday by Alistair Darling will “make no real difference to the economy”. But fewer than a fifth believe that the measures will make things worse in the short term, over the next few months, and a quarter say that they will get worse in the long term, over the next few years.

The Independent says that

A Conservative Government would start to dismantle the generous pensions schemes enjoyed by 4.5 million public sector workers, David Cameron has said.
But the Tory leader will not spell out his plans in detail before the next general election for fear of provoking a backlash from workers and their families, which could harm his party's prospects on polling day. His move will put pressure on Labour to reconsider its support for the inflation-proof final salary schemes for civil servants, teachers, NHS workers, local government staff, the police and armed forces.

The Mail reports that

With nearly 900 Facebook ‘friends’, schools minister Jim Knight is an enthusiastic participant in the social networking craze sweeping the country.
Which is why a lecture to parents about the long hours their children spend on the addictive site has laid him open to accusations of hypocrisy.
Yesterday, Mr Knight told them it was their responsibility to stop youngsters from obsessively ‘cultivating their empire of Facebook friends’.

The Express reports that

The number of criminals jailed each year has plunged to the lowest level since Labour came to power, it was revealed last night.
Fewer than 96,000 offenders were given prison sentences by the courts in 2007, the lowest number since 1997.

Finally the Telegraph reports that

The Vatican has warned that our obsession with modern technology, such as the internet and mobile phones, is not leaving people enough time for spiritual pursuits.Father Federico Lombardi, the Pope’s spokesman, said that without a spiritual life, people risked losing their souls.
“In the age of the cell phone and the internet it is probably more difficult than before to protect silence and to nourish the interior dimension of life,” Father Lombardi told the Vatican television show Octavia Dies. “It is difficult but necessary.”