July 7, 1993

Faced with the threat of losing $1 billion in Federal transporation money, Gov. Mario M. Cuomo and legislative leaders agreed on a plan intended to reduce air pollution in New York City and its suburbs sharply by 1996. Once signed into law, the agreement between Mr. Cuomo and legislators will give state agencies broad new powers to curb smog and other forms of air pollution in the New York City metropolitan area.

Blue-chip corporations from Sears to I.B.M. are sending out pink slips by the sackful, leaving millions of qualified workers sifting the want ads for employment. Whole industries, from airlines to cigarettes to computers, are hemorrhaging cash in a struggle to attract price-conscious consumers. Why, then, are economists worried about inflation? One answer is that many are not. "You are looking at a global economy with lots of excess capacity," said Van Doorn Ooms, the director of research at the Committee for Economic Development. "It's difficult to see inflation on the horizon."

Federal regulators are seeking at least $350 million in fines and penalties from Prudential Securities to settle charges of securities law violations stemming from the firm's practices in selling limited partnerships during the 1980's, people with knowledge of the talks said. Negotiations over the settlement have been hectic but fluid, and the cost of fines and penalties could reach as much as $400 million under the terms being discussed, these people said.

Sheik Omar Abdel Rahman, the Islamic fundamentalist whose followers have been linked to two bombing conspiracies in New York City, was hospitalized with "higher than average" blood-sugar levels at the Federal prison where he has been held since Friday. A spokesman for the Bureau of Prisons said the sheik, who has diabetes and high blood pressure, was hospitalized at the prison in Otisville, 72 miles northwest of New York. The spokesman said he was "not aware of any life-threatening condition."

They call it "the whirlpool," and pool employees and regular swimmers say it has become a common, if malevolent, ritual of these sweltering summer days at some of New York City's municipal pools. Groups of teen-age boys lock arms and shoulders and move in circles through the expanse of blue, churning the cool, chlorinated water, chanting rap lyrics and fondling girls at will.

Tipper Gore holds a distinction few can claim: she lost weight during a political campaign. If you want to know how contrary to the norm that is, just ask Bill Clinton. Or his staff. Or any reporter who covers political campaigns. Those who saw Mrs. Gore last July as she began campaigning for her husband, Al, could hardly believe their eyes during the Inaugural festivities in January. There was so much less to see. Today, Mrs. Gore has accomplished her goal and is on maintenance.

Northwest Airlines and its pilots' union said yesterday that they had agreed to grant each other broad and deep concessions as part of an effort to keep the carrier from filing for bankruptcy protection. But none of the conditions will take effect unless the pact is also approved by two other Northwest unions: the machinists and the teamsters.

In the 11 years he has spent patroling California's freeways, Officer John Marinez of the California Highway Patrol has seen more than his share of fender benders and high-speed chases. But the day he saw a driver use her left hand to hold a bowl and her right hand to scoop cereal into her mouth he thought his eyes were playing tricks on him. Officer Marinez recalled his reaction when he watched the woman's measured driving. "I turned to my partner and asked, 'Did you see that?' " he said. "I asked him how she could drive like that, and he shrugged and said, 'With her knees.' "

Until Pentagon budget cuts crippled production of Trident submarines, Tom Kingsley worked as a mechanical engineer at the Groton Naval Base in Connecticut, teaching officers how to operate the nuclear reactors that power the subs. Two years ago his employer, General Dynamics, dismissed him. Now, at age 29, he is caddying under the majestic oaks at the Ridgewood Country Club here.

LET everyone else in the world spend time and money trying to free his inner child. Mickey Rooney's is already free. You might even say it needs a spanking. Listen: "My autobiography, 'Life Is Too Short,' got to be No. 5 on the best-seller lists and Random House sold the rights in England for all of $10,000. Can you believe that? So I wouldn't do anything for them, no promotion, nothing. My original title for the book was 'Me.' But then they called and said Katie Hepburn wanted to call her book 'Me,' so I let her.

Relations between the United States and Egypt, once the linchpin of American policy in the Arab world, have sharply deteriorated over a number of disputes that culminated with the detention of Sheik Omar Abdel Rahman, whom Egyptian officials condemn as a "creation" of Washington. Three years ago, President Hosni Mubarak played the crucial role in assembling George Bush's coalition to fight Iraq in the Persian Gulf war by serving as host for an Arab summit meeting here that cracked the myth of Arab solidarity.

EDUCATION BOARD CHIEF RE-ELECTED In a brief public meeting in the marbled great hall of the Board of Education's Brooklyn headquarters, Carol A. Gresser, a one-time parents' association president from Queens, was re-elected president of the board, with unanimous support from her colleagues. A1. A MALEVOLENT RITUAL AT MANY POOLS They call it "the whirlpool," and pool officials and regular swimmers say it has become a common, if malevolent, ritual of these sweltering summer days at many of New York city's municipal pools. A1. NEW YORK CITY