Police began a murder inquiry today after residents described how a man stabbed two children before going to his local pub for a pint.

A four-year-old boy died and a 14-year-old girl was seriously injured in the incident at a house in Slaithwaite, Huddersfield. Officers said they were called to an address at 1pm today.

The boy was taken to Huddersfield Royal infirmary but died a short time later. The girl was taken to the same hospital with stab wounds to her chest and stomach. Her condition was described as serious.

Police said they were treating the death of the boy as murder and added that two men had been arrested in connection with the incident.

Officers searched for the murder weapon at the Silent Woman pub, at a funeral home on the other side of the road and at a house.

Jez Pierce, who was in the Silent Woman, said the man had walked in, ordered his pint and sat down with the other man later arrested by police.

“I went and sat with them. [The man] looked awful, really pale and washed out and he and [the other man] were speaking in hushed tones,” Mr Pierce said.

He said the alleged killer had confessed to the crime and his friend had called the police.

“The friend later said: ‘I think we should go for a wander. So they supped up and went out, but [the man] didn’t know the police were already after him,” he added. “I have known him since we were kids - we used to work together. It’s an absolute shock, I just can’t believe what has happened. It’s usually a quiet place.

“He is a sound man, very sociable. I saw him last week and he was fine. We were in the pub having a laugh.”

Neighbour Paul O’Shea said he saw the man leave the scene of the attack, which was described yesterday as a well-presented mid-terrace property.

“I saw it happen, and the guy did a runner. It was inside the house,” he said.

“Police have cordoned off both sides of the road, forensic teams are at work and a helicopter has been circling. This is a quiet little place and the murder has shocked everyone,” another neighbour said.

Other neighbours were told to stay in their homes as the police investigation gathered pace.

“We are very shocked,” said Mr O’Shea. “It happened right across the road from us. Seven or eight houses have been blocked off and the residents are not being allowed out.

“The first we heard about anything was when the police arrived. It’s a terrible thing to happen.”

Marjorie Sykes, another local resident, said: “The police have come round and sealed off the road. I wanted to take my car out and go to church this afternoon, but they told me I had to stay inside the house.”

Tonight much of the area was sealed off as forensic officers continued their search for clues.

Slaithwaite was the setting for the ITV rural drama Where the Heart Is, and according to locals the Silent Woman pub, where the suspect went for a drink, has also featured in the show. The programme ended in 2006.

SAN FRANCISCO—Among the companies whose shares are expected to see active trade in Monday’s session are Harman International Industries and Analogic Corp.

Analogic Corp. () is expected to report earnings of 57 cents a share for its fiscal fourth quarter, according to a Thomson Financial survey of analysts.

FIF Financial Federal () is forecast to report earnings of 49 cents a share for its fiscal fourth quarter.

NaviSite Inc. () is expected to post a per-share loss of 8 cents for its fiscal fourth quarter.

Synnex () is expected to post fiscal third-quarter earnings of 46 cents a share.

Watch list

AMR Corp. () said it expects passenger unit revenue at its main American Airlines carrier to rise between 4% and 5% in the third quarter from a year ago, while revenue per available seat mile across its entire system rises 3.7% to 4.7%. Fuel prices are likely to average $2.21 a gallon, lower than the $2.24 forecast in July, said AMR in a regulatory filing.

Fidelity National Information Services Inc. () completed the sale of its Property Insight unit to title insurance company Fidelity National Financial Inc. () . Fidelity National Information expects the deal to lower its third-quarter earnings by about 1 cent a share, and fourth-quarter earnings by about 2 cents a share, exclusive of a gain on the sale.

Gap Inc. () named Todd Oldham design creative director of Old Navy, effective Oct. 1. Oldham will also launch a merchandise line under the Todd Oldham name, to be sold exclusively at the Old Navy stores.

General Motors Corp. () and the United Auto Workers returned to the bargaining table Friday, reportedly turning their attention to wages after failing to make headway on the crucial topic of worker-managed health care. See full story.

GlaxoSmithKline PLC () received an approvable letter from the Food and Drug Administration for Lamictal XR Extended Release Tablets, a once-daily epilepsy treatment. The FDA’s decision doesn’t affect the current formulation of Lamictal, which is a twice-daily immediate-release drug.

Harman International () said that KKR and Goldman’s GS Capital Partners VI Fund LP don’t intend to complete an $8 billion leveraged buyout of the stereo and audio equipment maker. The companies said they believe there was a “material adverse change” in Harman’s business, and that Harman breached the merger agreement. Harman said it disagrees. According to the merger agreement, KKR and Goldman are required to pay a $225 million termination fee for calling the deal off.

Saks Inc. () said its board indemnified certain of its current and former officers and employees for legal fees and expenses during an audit committee investigation in 2005 or a related government investigation, as well as a derivative litigation dismissed earlier this year. The board found that the conduct of the individuals was in good faith, and that each believed his or her conduct was in the retailer’s best interest.

Target Corp. () will hold a mid-month sales conference call.

TJX Cos. () has agreed to settle customer class-action lawsuits in the U.S. and Canada related to claims arising from the criminal intrusions into TJX’s computer system.

Jamaica’s main opposition has won a narrow election victory, preliminary results indicated today.

But the country’s first female prime minister said the race was too close to call, and her People’s National party (PNP) would not be conceding victory.

The opposition Jamaica Labour party (JLP) won 31 of the 60 seats in the house of representatives in yesterday’s poll, enough to oust the prime minister, Portia Simpson Miller, and end her party’s near-20-year hold on power.

The director of elections, Danville Walker, said it would take about two days to complete the final count.

“We don’t usually have too many things change during the final count, but we must remember that this is a preliminary count,” Mr Walker said on Television Jamaica.

But Mrs Simpson Miller said there were a number of races that were so close they could switch in a recount, and she was concerned election rules may have been violated.

“We are conceding no victory to the Jamaica Labour party,” she said.

Despite her announcement, jubilant JLP supporters drove through the streets of the capital, Kingston, in convoys, honking their horns as passengers leaned out the windows.

Hundreds of supporters cheered and waved green flags at party headquarters as Mr Golding took the stage to the strains of the Bob Marley song Coming in from the Cold.

Mr Golding warned that the “tenuous” and narrow victory could make governing a challenge. But he noted that the PNP had won three seats by fewer than 100 votes, and his side’s margin could widen.

“However perplexing some may find the results, the fact is that the people have spoken, and we of the Jamaica Labour party accept and respect the decision of the people,” he said.

Few policy or ideological differences divide the parties but, as the challenger, Mr Golding promised bold attempts to kickstart the economy, create jobs and fight corruption.

About 1.3 million people were eligible to vote for the Caribbean island’s 60-member parliament.

To shore up its popularity, the ruling party appointed Mrs Simpson Miller, 61, its leader 18 months ago, calculating that her humble origins and common touch would secure a fifth consecutive term.

The prime minister, widely known as Sista P, retains widespread affection. But confidence has been eroded by party scandals, violent crime and sluggish growth. When Hurricane Dean swept through coastal regions last month she was accused of hiding in a bunker.

At least 17 people were reportedly killed in political violence in the run-up to the election. Yesterday seemed relatively calm, with soldiers and police guarding polling stations to prevent any repeat of the shootings of previous election days.