December 10, 1992

The economy is improving modestly but unevenly across the country, with retailers expressing optimism about the holiday season, the Federal Reserve said today. In its periodic assessment of the state of the economy, the central bank said almost all regions were experiencing "a slight to moderate pickup in some or all sectors of the economy" while noting specifically that California was doing worse than other states.

The post-cold-war consolidation of the American weapons industry continued today with the announcement that the Lockheed Corporation would acquire the General Dynamics Corporation's military aircraft division for $1.53 billion in cash. The transaction puts Lockheed, based in Calabasas, Calif., neck and neck with the nation's largest military aircraft maker, the McDonnell Douglas Corporation. It also further reduces the number of military contractors available to supply the Pentagon, concentrating a major jet fighter contract at one company.

Garry Shandling slumps on a sofa, sipping Evian water. He's wearing unfashionably baggy jeans ("I'm sorry about these jeans," he says), a floppy sweatshirt and sneakers. The phone rings and he makes an appointment with a friend to go jogging. "I've gained 12 pounds," he says miserably. "I don't get out. I work. And work. I'm trying to jog every day now. Twelve pounds."

Overriding Schools Chancellor Joseph A. Fernandez, the New York City Board of Education reinstated a rebellious Queens school board last night but gave Mr. Fernandez the authority to supersede its members if they continue to refuse to teach respect for gay people. While a rebuff for Mr. Fernandez, last night's action by the central board stopped short of a total rejection of his authority, something that might have forced Mr. Fernandez to say that he would depart as Chancellor when his contract expires on June 30.

In a soft, childlike voice a mildly retarded 21-year-old woman testified today that she was sexually assaulted by four friends in Glen Ridge, N.J., in March 1989. Before a hushed, packed courtroom, she answered questions with responses of only a few words, describing sex acts involving a stick, a bat and a broom. Talking about the four young men who suggested the sex acts, she said at one point, "I still care about them."