Kookmin Bank, Korea's largest commercial bank, reports 36 percent drop in net income in second quarter; graph (S)

World Business Briefing | Asia: South Korea: Income Falls At Bank

Market Place column on Ronald O Perelman's accord to unwind 2001 deal in which M&F Worldwide, company he controls, agreed to buy his controlling stake in Panavision at huge premium; Danny Breen, money manager who filed original suit challenging deal, hails victory; accord leaves Perelman in control of both companies; New York Stock Exchange says it will delist Panavision because its market value is below $30 milllion minimum; photo (M)

THE MARKETS: Market Place; A Perelman Coup in 2001 Is a Retreat in 2002

Leading population geneticist Dr Neil Risch of Stanford University, in report in online journal Genome Biology prompted by 2001 editorial in New England Journal of Medicine, challenges widely held view that race is 'biologically meaningless' concept; counters that race, defined as geographically based ancestry, is helpful for understanding ethnic differences in disease and response to drugs (M)

Race Is Seen as Real Guide To Track Roots of Disease

New York Yankees defeat Texas Rangers, 9-2; photos (M)

Hernández Makes Case to Stay

Congressional investigators say Merrill Lynch replaced research analyst who angered Enron executives in 1998 by rating company's stock 'neutral' at time brokerage was eager to win more investment banking business and that Merrill subsequently upgraded rating; move by brokerage followed memo from investment bankers Rick Gordon and Schuyler Tilney to president Herbert Allston complaining of loss of lucrative stock underwriting deal because Enron executives had visceral dislike of research analyst John Olson, and what he told investigators about its stock; contents of their memo discussed; Merrill vigorously denies allegations; disputes there was any link between its rating on Enron and desire to win more business; says firm never asked superiors to take action against Olson and that its employees behaved properly in dealings with Enron; says it was focused primarily on getting into Enron underwriting on basis of long relationship between both companies (M)

MERRILL REPLACED RESEARCH ANALYST WHO UPSET ENRON

Criminal trespassing and other felony charges against Philadelphia 76ers guard Allen Iverson are dropped, but he still faces two misdemeanor counts; photo (M)

Felony Charges Dropped Against Iverson

Rare first edition of Jane Austen's Pride and Prejudice sells at auction for over $62,000 (S)

Footlights

Stock prices surge over 5 percent in broad rally; Dow Jones industrial average has risen over 1,000 points since hitting 5-year low, in biggest four-day gain since 1933; Dow rises 447.49 points for day, 5.4 percent, to 8,711.88; Standard & Poor's 500-stock index rises 46.12 points, 5.4 percent, to 898.96; Nasdaq composite index rises 73.13 points, 5.8 percent, to 1,335.25; Treasury securities prices fall sharply; 10-year note falls 1 11/32, to 102 15/32, to yield 4.55 percent; graph; tables of stock prices and key rates; photo (M)

Broad Rally Sends Stocks Up 5 Percent

Honda Motor Co reports earnings for April-June quarter of 107.5 billion yen ($905 million), up 20 percent from a year earlier, thanks to strong demand overseas for its minivans and sports utility vehicles; global sales rose 10 percent, to 194 trillion yen; company remains confident about its prospects for rest of year despite weaker sales at home, stronger yen and potential slowdown in US; Toyota Motor raises its 2002 production forecasts by 3.8 percent, to 5.5 million vehicles, with all the projected gains overseas; photo (M)

Sales Abroad Push Profit 20% Higher At Honda

Escalation of Middle East violence intrudes on Arab-Israeli production of Sesame Street children's television program, jointly developed in afterglow of 1993 Oslo accords and broadcast in Arabic and Hebrew to receptive audiences; name Sesame Street has been changed to Sesame Stories because concept of street where people can mingle freely has become untenable; original shows were built around notion that Israeli and Palestinian children might become friends, but producers now see best hope as helping children to humanize their historic enemies through separate but parallel stories; say goal of friendship is beyond reality under present circumstances; drawing (M)

Israeli-Palestinian Battles Intrude on 'Sesame Street'

 Merrill Replaced Analyst On Enron, Inquiry Finds  In 1998, eager to win more investment business from Enron, Merrill Lynch replaced a research analyst who had angered Enron executives by rating their stock ''neutral'' with one who soon upgraded the firm's rating, Congressional investigators said.    The move highlights the debate over one of the most contentious issues on Wall Street: To what degree do investment banks adjust their stock ratings in order to try to win business from the same companies. [Page A1.]

BUSINESS DIGEST

Placer Dome of Canada adds 35 cents a share in cash to its hostile, all-stock bid for AurionGold of Australia; revised bid values Aurion at 2.97 Australian dollars ($1.59) a share (S)

World Business Briefing | Americas: Canada: Bid For Miner Is Raised

Spain's largest bank, Santander Central Hispano, reduces 2002 profit forecast (S)

World Business Briefing | Europe: Spain: Bank Lowers Forecast

Intense summer heat, with temperature near 100 degrees, sets free and accentuates odors baked into New York City's streets giving city pungent aroma all its own; only hope for relief is breezes that can pick up speed in canyons of Manhattan's tall buildings; photos (M)

How Hot Is It In New York? Take a Whiff

Justice Carol Berkman sentences Joseph Sean Salley and Andre S Smith to life in prison for killing of three people and wounding of two others in execution-style shooting above Carnegie Deli in Midtown Manhattan; prosecutors say they do not believe Salley and Smith can ever be rehabilitated, and victims' relatives recount their pain and anger prior to sentencing; photo (M)

Two Men Are Sentenced to Life For Slayings Above Carnegie Deli

Westchester County Budget Dir Kathleen M Carrano recently laid out some of options for county officials trying to close $102-million budget gap in coming year; cutbacks and others account for only $65 million in county expenses, leaving another $37 million to go; County Executive Andrew J Spano warned last week that county might be forced to cut programs and services drastically, or raise property levy by 29 percent or higher; has called for 1 percent increase in sales tax that would collect extra $100 million per year, of which $75 million would pay for increased costs for Medicaid and other state-mandated progams; graph (M)

A Grim Choice In Westchester: Harsh Cutbacks Or Higher Taxes

Analysts predict closeness to anniversay of Sept 11 terrorist attacks will influence everything from primary candidates' advertising to tenor of stump speeches; predict any negative campaigning is not likely to play well with voters in somber mood; say anniversary is likely to change tactics of New York State Democratic gubernatorial candidates Andrew M Cuomo and H Carl McCall, including how they spend money and content of their advertisements; will also deprive winner of much-desired boost day after primary: even as their Republican opponent Gov George E Pataki is sure to be prominent at public events, neither Cuomo nor McCall expects to campaign on Sept 11; photo (M)

9/11 Memories Cast Shadow On Primary

France Telecom plan to eliminate its stake in STMicroelectronics, semiconductor maker, by selling $500 million Eurobond that must be exchanged for shares in company (S)

World Business Briefing | Europe: France: Phone Concern Is Selling Assets

Converium Holding, Swiss reinsurer, reports first-half net profit of $31.6 million, compared with loss of $60.5 million a year earlier (S)

World Business Briefing | Europe: Switzerland: Insurer Misses Profit Forecast

Officials respond to criticisms of plans to rebuild Lower Manhattan by saying they wish to open design effort to more architects and planners; proposal, which originated with directors of Lower Manhattan Development Corp after six initial plans were released two weeks ago, would broaden process to include smaller design firms and foreign teams (M)

Officials Seek More Designers For Downtown

Thomas Middelhoff's ouster as Bertelsmann chairman and chief executive reportedly followed clash with Reinhard Mohn family, which controls company, over his aggressive plans to remake old-line media company as new-era media machine and issue public shares; also represents rejection of American way of doing business; similarity of his ouster to that of Jean-Marie Messier at Vivendi Universal discussed; graphs of revenue and income at Bertelsmann units; photos (M)

The Fraternity Of Corporate Exiles: Europe Executives Undone

British Judge Richard McCombe, ruling in suit by Cantor Fitzgerald, finds rival bond brokerage firm Icap unlawfully poached one broker, Luigi Boucher, after Cantor lost 658 employees in Sept 11 World Trade Center attack; dismisses Cantor complaint that Icap lured two other brokers from its London offices; casts doubt on Cantor's claim that Icap deliberately tried to weaken rival after Sept 11 (M)

British Judge Splits Ruling On Suit by Cantor Fitzgerald

Japan's industrial production falls 0.7 percent in June from previous month, but is expected to rise the rest of summer (S)

World Business Briefing | Asia: Japan: Industrial Output Declines

New York City Mayor Michael R Bloomberg appoints Joel I Klein, publishing executive and attorney best known for leading antitrust prosecution of Microsoft, as first chancellor of city's reconfigured school system; move is final step in series of historic changes by mayor and State Legislature aimed at bringing greater accountability for education of 1.1 million children, which Bloomberg says rests with mayor; appointment of former federal prosecutor who grew up in housing project and attended city's public schools begins process by which Bloomberg says entire mayoralty should be judged; he says school system has been organization unaccountable to anyone and has basically been isolated from rest of city government and public's demand for good education for for their children; lauds Klein as innovator and scholar, an individual of 'impeccable integrity' with management skills; Klein pledges to do all possible to give city's children first-rate education; says he owes school system more than he can ever repay; photo (M)

BLOOMBERG PICKS A LAWYER TO RUN NEW YORK SCHOOLS

Effort to raise remains of Civil War ironclad warship Monitor from sea bottom off Cape Hatteras, NC, continues as crews prepare to lift 160-ton gun turret; experts have recovered and are treating more than 400 Monitor artifacts, which will be displayed in new $30 million museum; new light is being shed on ship's construction, innovations and demise; photos; diagrams; drawings (M)

July 30, 2002

Headlines from July 30, 2002

World Business Briefing | Asia: South Korea: Income Falls At Bank

THE MARKETS: Market Place; A Perelman Coup in 2001 Is a Retreat in 2002

Race Is Seen as Real Guide To Track Roots of Disease

Hernández Makes Case to Stay

MERRILL REPLACED RESEARCH ANALYST WHO UPSET ENRON

Billboard 200

Nellyville

By The Way

The Eminem Show

Let Go

Hard Candy

Historical Context for July 30, 2002