July 11, 2002

Europe's telecommunications giants have lost half trillion dollars in market value since early 2000; European investors are realizing too late that big, seemingly solid telecommunications companies--household names like British Telecommunications, France Telecom and Deutsche Telekom--were actually high-risk bets; losses suffered by investors in European companies seem to be fostering special resentment because companies whose businesses had seemed so conservative turned out to be almost recklessly aggressive; staggering debt at most of companies, especially Deutsche Telekom, detailed; graphs; photo (M)

Interview with convicted software pirate John Sankus Jr, 29, gives unusual glimpse into world of Internet piracy; United States Customs Service investigators and prosecutors say Sankus was ringleader of international gang of software pirates that deprived companies of millions of dollars through illegal distribution of copyrighted software, games and movies on Internet; piracy group, known as DrinkorDie, was among chief targets of more than 100 coordinated raids in United States and abroad last December; drawing (M)

Murray Chass analysis contends that All-Star Game is now mere entertainment vehicle, and holds that premature ending to 73rd All-Star Game is example of baseball's current state of corruption that includes labor disputes and talk of steroid use; photos (M)

Mood and agenda on Capitol Hill about corporate responsibility have changed in recent days as Congressional elections near; lawmakers are feverishly advancing proposals that would have been considered too radical about half year ago; Repr Dick Armey, who three weeks ago aggressively defended corporations that move their headquarters offshore to avoid taxes, is standing up against dishonest corporate executives; new political dynamic might lead to compromise and to laws being passed; Pres Bush is on defensive because of his administration's close ties to corporate America, and Republicans do not want to get on wrong side of volatile issue in election year; Republicans, fearful about plunging stock market, say they have to act fast and decisively to restore investor confidence before elections; Sen Charles E Schumer says in matter of weeks, perspective of lawmakers on issue has been turned on its head; Schumer spells out four ideas, including one to make publicly traded corporations give Securities and Exchange Commission their tax returns for public viewing; Corporate and Criminal Accountability Act is passed by Senate unanimously hours after Democratic majority leader Tom Daschle proposed bill; House Appropriations Committee on July 9, unexpectedly and by wide margin, added to bill financing Treasury Department and Postal Service ban on government contracts to companies that situate their corporate headquarters overseas to avoid taxes; House Ways and Means Committee agrees to similar restriction by Customs Service; Democrats plan to broaden restrictions in committee; Sen Trent Lott says he hopes that era of heavy-handed regulation is not returning; Sen John McCain plans to introduce bill that would require executives to hold stock from options as long as they work at company; photos (M)

Deutsche Post may cut 10,000 jobs, or 3 percent of its work force, as order from regulators to lower postage rates erodes profits; lower rates will cut earnings by 1.5 billion euros ($1.5 billion) through 2007; company says most of job cuts will be among mial delivery workers; postal workers union says it will fight cuts (S)