September 4, 2001

New York City restaurants, which for months seemed impervious to economic downturn, have suddenly seen phenomenal double-digit growth in sales come to screeching halt; unluckiest have seen business drop as much as 30 percent, and top restaurants whose stature makes them least vulnerable to cooling economy are starting to feel chill; on brink of fall season, traditionally time when lavish new places open and luxury factor is pumped up on menus across city, restaraueurs are instead worrying about filling tables in oversaturated market; photo (M)

Many employees, particularly managers, will probably receives drastically lower bonuses at end of year or early 2002 because of economic downturn and poor performance of stock markets; companies are now deciding whether to tell employees and their shareholders months ahead of when they would normally find out (M)

Interview with biographer Antonia Fraser, author of new book Marie Antoinette: The Journey; photos (M)

New Step for Stem Cells Biologists at the University of Wisconsin report that they have transformed human embryonic stem cells into blood-making cells, a step that they say lays the basis for a novel set of therapies. PAGE A14

New York Yankees defeat Toronto Blue Jays, 7-5; photo (M)