FedEx Corp will increase rates for domestic shipments by 4.9 percent; rise comes on top of two fuel surcharges imposed earlier this year, but reaction from catalog companies, online merchants and other heavy users of overnight delivery services is muted, since they do not expect problems passing the added cost on to customers; FedEx announcement appears timed to pre-empt an expected rate increases by United Parcel Service; rivals focus on different segments of shipping market, FedEx on overnight shipments and UPS on deliveries in two to three days, but FedEx has been losing some business customers to UPS in recent months; photo (M)

FedEx Rates To Increase 4.9 Percent

New York Giants are optimistic about their playoff prospects despite injuries to Tiki Barber, leading rusher, and recent poor play of Ron Dayne, another key rusher; Barber says he will play hurt; graph of Dayne's yardage by month; photos (M)

Barber's Broken Arm Can't Dim Giants' Optimism

Digital television, which enables cable companies to transmit signals of hundreds of channels into television sets that once carried about 80, has arrived in New York City; is quickly becoming New Yorkers' latest addiction; DTV also offers up to 39 music channels, online television guide, other features; seems on its way to remaking television-watching culture and businesses that make money off it; photos (M)

400 Channels and (Click); Digital Television Changes City's Cable Landscape

Arts Abroad article on Hermitage Museum's inaugural exhibition at Somerset House in London, The Treasures of Catherine the Great; photo (S)

A Foothold In London For Imperial Treasures

Hedge funds turn in strong performance in 2000 even as stock markets decline sharply; one reason for funds' success is that they generally protect profits by short-selling; strong performance drives sales, lifting hedge fund industry assets from $324 billion at the end of 1999 to about $400 billion projected for the end of 2000; overall growth comes despite the fact that George Soros and Julian H Robertson Jr, the most visible hedge fund mangers, moved to sidelines after suffering stinging losses; graph (M)

THE MARKETS: Market Place; As Markets Have Declined, Hedge Funds Have Shown Their Mettle

Internet is increasingly being used to expose adoptable children to potential parents; sites generally provide a photograph and information like a child's age and interests; children who are old enough to understand are asked if they are comfortable being listed on the Internet, and their desire for a family generally overcomes any qualms about loss of privacy; some experts say listings on the Internet should be used cautiously even with the precautions being taken to prevent children from being harmed through exposure on it; photos (M)

Going Online To Build a Family

Biotechnology companies oppose legislation to allow regulatory approval of generic versions of so-called biologics--drugs that are made from living cells, like vaccines, blood factors and genetically engineered proteins; procedures for quick approval of generics now apply only to drugs made by chemistry; biotechnology companies say their products are hundreds or thousands of times larger and more complex than chemical drugs, making it virtually impossible for a generic drug maker to show that its product is the same as another biotechnology drug; FDA also has reservations; Sen Orrin Hatch has indicated an interest in updating 1984 law that governs generic drugs, and surging drug prices have created public support for generic drug companies' position (M)

Biotechnology Companies Try to Ward Off Generic Drugs

Smithson Smith is charged in 5 bank robberies and is suspect in 13 others committed near his Manhattan office, where he works as computer operations supervisor, and his Brooklyn home; allegedly has passed threatening notes to tellers and made off with over $73,000 since Aug 1998; photo (M)

Office Worker Accused in 2-Year Series of Bank Robberies

Leaders of Egypt, Jordan and Saudi Arabia said to react favorably to Pres Clinton's proposed Middle East peace settlement; all voice support for concepts in plan, which essentially envisions giving Palestinians full control over Temple Mount and Arab neighborhoods in East Jerusalem, in exchange for Palestinian agreement to forgo demand that all Palestinian refugees be allowed to return to Israel; Prime Min Ehud Barak of Israel has announced that Israel is prepared to accept proposals if Palestinians accept them; Palestinian side has not issued clear-cut reply, forwarding instead list of questions and objections; Clinton hopes that support from leaders of Jordan, Egypt and Saudi Arabia will persuade Yasir Arafat to agree to proposal (M)

3 ARAB COUNTRIES REACT FAVORABLY TO MIDEAST PLAN

 Stocks Gain on Sales Surge And Hope of Fed Rate Cut  Stock prices climbed broadly as traders and investors took some comfort from a report of a late surge of holiday shopping and what seemed a growing suspicion that the Federal Reserve will prove to be a friend to the market as it seeks to prevent an abrupt slowdown from possibly turning into a recession.    The Nasdaq composite index gained 45.83 points, or 1.8 percent, to 2,539.35. The broader Standard & Poor's 500-stock index climbed 13.73 points, or 1 percent, to 1,328.92, and the Dow Jones industrial average rose 110.72 points, or 1 percent, to 10,803.16. [Page C4.]

BUSINESS DIGEST

New York Knickerbockers defeat Washington Wizards, 89-82; photos (M)

The Knicks Just Barely Shrug Off the Wizards

Pop critics list worthwhile albums most people missed this year; photos (M)

The Pop Life: Undeservedly Obscure; Pop Critics List the Worthwhile Albums Most People Missed

European Free Trade Assn, which comprises Iceland, Liechtenstein, Norway and Switzerland, is pursuing expansion, and new web of bilateral trade agreements are being formed elsewhere in the world, particularly in Asian-Pacific region; trend reflects a fear that multilateral trade progress is paralyzed (M)

Regional Trade Pacts Thrive As the Big Players Fail to Act

David Pogue column says it would be foolish to buy a computer with an Intel Pentium 4 chip because it costs more and is actually slower than the Pentium III in everyday computing despite its faster clock speed; says Pentium 4's power will not become evident until Windows programs are rewirtten to take advanage of it; drawing (M)

Higher, Stronger, Slower

Museum of Modern Art show, The Path of Resistance, charts 40 years of film and video as tools of social criticism; Academy of American Poets gives Frank Bidart its annual $150,000 Wallace Stevens Award for poetry; Brooklyn Museum of Art will remain open late on Jan 6 for First Saturday, free program of art and entertainment; listing of some musical events on New Year's Eve around New York City; photo (M)

Footlights

At a time of year when gifts fly fast and furious, it is unnerving to catch practitioners of the musical arts removing their presents from under the tree. What a Grinchlike atmosphere, and what a lot of turmoil has been created in the process.    Newspaper readers found out the other day that Franz Xaver Ohnesorg, brought in from Germany to lead Carnegie Hall to new heights of innovation and achievement, would retreat to his homeland and what he hopes will be a more peaceful job at the Berlin Philharmonic. Then came the news that Rob Gibson, for 10 years executive producer and director of Jazz at Lincoln Center, had been put out of a job before we or even many of the organization's top figures could blink an eye.  

In So Many Musical Bowers, a Season of Gifts Withdrawn

Michael Anastassiades, Cyprus-born designer now living in London, says his work explores psychological relationship between person and object; photos (M)

Still Objects That Run Deep

New rules in China will allow privately owned companies access to country's capital markets, which until now have been off limits for nearly all of them; under existing system, government, not market, decides which companies can sell stock to public, and state-owned companies get almost all money raised on Chinese markets; government will continue to play heavy role in market, but simple reform of allowing private investors could ultimately reshape China's economic landscape; private companies with easier access to capital have chance of becoming main engine of China's economy for first time since brief period earlier this century and otherwise since Song Dynasty 1,000 years ago; change has political implications: as China's ranks of private businesses grow in number and wealth, their owners will become increasingly powerful constituency whose demands government will not be able to easily ignore; photo (M)

Sharp Shift for China's Economy As Entrepreneurs Woo Investors

Michael Morgan McDermott, arraigned on charges that he murdered seven co-workers at Edgewater Technology Inc in Wakefield, Mass, is described as loner who was frequently on edge of financial trouble; question of whether McDermott was man adrift, or one who simply marched to his own rhythm, is theme that occurs again and again in words of people who knew him; police find what were apparently bomb-making materials in his apartment; McDermott appears in court, heavily bearded and looking powerful at 6 foot 2 inches and more than 250 pounds; his lawyer says McDermott has been under psychiatric care and is taking medication; lawyer refuses to elaborate on McDermott's mental condition; McDermott pleads not guilty to all charges; photos (M)

In Wake of Killings, Strands of Suspect's Life

Federal and state governments will pay $100 million over next year to teach chastity as only realistic strategy for avoiding disease and pregnancy; aside from spending on abstinence and HIV programs, federal government designates no other money for sex education; abstinence-until-marriage programs have flourished since conservative Republicans in Congress stepped up federal financing to promote chastity, in little-noticed amendment to Welfare Reform Act of 1996; polls taken over last decade find more than 80 percent of parents object to fact that abstinence-until-marriage programs do not tell youngsters how to obtain or use birth control and condoms; growth of abstinence courses reflects inroads by conservative, often religiously based groups on local school boards and at federal and state level, rather than ground swell of popular support for such classes or evidence documenting their success; educators predict vigorous debate next year, when most of money available faces reauthorization; photo (M)

Sex Education With Just One Lesson: No Sex

Pittsburgh Penguins defeat Toronto Maple Leafs, 5-0, as Mario Lemieux, making historic return to hockey, scores goal and gets two assists; photos (M)

Lemieux Lights Up Ice on a Goal and 2 Assists

Sega shares rise 10.5 percent on report that Nintendo is in talks to buy it; photo (S)

SEGA'S SHARES SURGE

The World Business section, which appears Tuesday through Friday and includes the stock market tables, will continue in 2001. Although the section was created to accommodate the volume of news and advertising in the last three months of 2000, its printing schedule has also permitted improvements in the production of the newspaper, with the prospect of timelier distribution for some readers.    On Saturdays, market tables will remain in Business Day.

About World Business

 Rumsfeld Seen as C.I.A. Pick  Republicans said former Defense Secretary Donald H. Rumsfeld was the favorite to lead the C.I.A. and Gov. Tommy G. Thompson of Wisconsin for secretary of health and human services.   PAGE A18    Second Cyber-Thoughts  After expressing skepticism about the use of computers in enriching education, William J. Bennett, the onetime secretary of education, is helping found an online school for children taught at home.   PAGE A14

INSIDE

Circuses in Switzerland, which has more than two dozen troupes, face rising costs and serious competition, and they are being forced to devise new ways to make money and avoid being edged out of their small market; venerable Knie Circus in Lausanne rents out its elephants to department stores for small parades to advertise their wares; circuses large and small lease tents for private parties; some play host to families, and some run circus schools; photo (M)

December 28, 2000

Headlines from December 28, 2000

FedEx Rates To Increase 4.9 Percent

Barber's Broken Arm Can't Dim Giants' Optimism

400 Channels and (Click); Digital Television Changes City's Cable Landscape

A Foothold In London For Imperial Treasures

THE MARKETS: Market Place; As Markets Have Declined, Hedge Funds Have Shown Their Mettle

Billboard 200

1

Black & Blue

Now 5

Human Clay

Oops!...I Did It Again

Historical Context for December 28, 2000