August 23, 2002

Sears, Roebuck & Co on Aug 25 will begin its current advertising campaign, which carries theme 'Sears, Where else?,' with now-and-then spots that painstakingly recreate scenes of everyday life from 20th century; Sears hopes to recapture consumers who have increasingly been wooed away by discount retailers; campaign was developed by Chicago office of Young & Rubicam Advertising; photos (M)

Bush administration excludes about one-quarter of all imported steel products from steep tariffs that it imposed in spring in effort to protect ailing US steel industry; decision infuriates American steel producers and is applauded by European governments; administration officials justify decision on technical grounds, but it shows that White House has been forced to backpedal on its protection efforts; domestically, companies that use steel complain that they could not obtain specialty products they need; internationally, administration has been fiercely attacked by almost all its largest trading partners; retreat also reflects president's struggle to balance political demands from electorally important steel-producing states like Pa, Ohio and West Va with his international goal of opening world markets; photos (M)

Thyssen-Krupp says net income in third quarter fell to 202 million euros ($195.7 million) from adjusted 331 million euros year earlier; posts pretax profit of 121 million euros after loss of 68 million euros in second half (S)

Rahm Emanuel, Clinton White House aide now running for Congress from heavily Democratic district in Chicago, is antagonizing some House members even before he is formally elected; suprememly confident Emanuel is equipped with legislative expertise and connections to rival those of most senior lawmakers; he is already throwing his influence around, pushing for coveted spot on Ways and Means Committee intended for more established member; some of his own donors have complained when he used his campaign money to contribute to other candidates--and build his influence with them; Emanuel says his actions are being misinterpreted and exaggerated; makes no apologies for refusing to be backbencher in Congress; says his high profile will make him more effective; photo (M)

Philadelphia accounting firm Heffler Radetich & Saitta, which was selected to distribute $3.2 billion from record settlement against Cendant Corp in class action suit led by New York State Pension Funds, donated at least $24,000 to New York State Comptroller H Carl McCall's gubernatorial campaign; Edward J Radetich, partner at firm, says he does not remember what prompted contributions; it is not clear what accountants will earn for role in doling out settlement money because final amount has not been awarded by court; fees in such case are based on hourly rate and can run into hundreds of thousands of dollars depending upon complexity of matter; pension fund has been lead plaintiff in several shareholder suits but McCall, who oversees fund, has come under criticism recently for his failure to rein in legal costs; Democratic opponent Andrew Cuomo has been attacking McCall for accepting money from people who do business with state (M)

Foreign Intelligence Surveillance Court cites 75 cases in which it says it was misled by FBI in documents in which bureau tried to justify its need for wiretaps and other electronic surveillance; court operates in secret and is responsible for approving warrants to eavesdrop on people suspected of espionage or terrorism; court opinion is stinging in its criticism of FBI and Justice Dept, which court suggests had tried to defy will of Congress by allowing intelligence material to be shared freely with criminal investigators; charge of being misled by FBI is included in court decision rejecting secret request made by Justice Dept this year to allow broader cooperation and evidence-sharing between counterintelligence investigators and criminal prosecutors; court finds request 'not reasonably designed' to safeguard privacy of Americans; opinion may be important in documenting why FBI was hesitant last summer to seek court authority to search computer and other belongings of Zacarias Moussaoui, only person charged in Sept 11 attacks; FBI officials have previously acknowledged that at time of Moussaoui's arrest, bureau was wary of making any surveillance requests to special court because its judges had complained year before that they were being seriously misled in FBI affidavits requesting surveillance of Hamas, militant Palestinian group (M)

Colin Skellet, chief executive of Wessex Water, former Enron Corp subsidiary, is arrested on suspicion of accepting bribe of close to 1 million pounds ($1.5 million); police statement links arrest to $777 million purchase of Wessex Water in March by YTL Corp of Malaysia (S)

AOL Deals Scrutinized Regulators are examining AOL's transactions with Qwest and WorldCom that may have allowed it to overstate millions in revenue. BUSINESS DAY, PAGE C1 Volcker Wavers on Post Paul A. Volcker is the top choice to head a regulatory group overseeing accounting firms, but he has been wavering over whether to take the job. BUSINESS DAY, PAGE C1

Article in series An American Summer, which explores way people around country spend their summers, on annual Southeast Asian Water Festival along Merrimack River in Lowell, Mass; festival is summer highlight for thousands of Southeast Asian immigrants from around US; photos; map (M)

Hong Kong's consumer prices were 3.4 percent lower in July than year erlier, compared with drop of 3.3 percent in 12 months through June (S)

Havens article profiles some people who reach celebrity status during summer: Adam Weinstock, Long Island high school drama teacher who produces shows in Provincetown, Mass, Judy Carmichael, Manhattan jazz pianist who organizes weekly softball games in Hamptons and John C Henry, assistant in securities bureau of New York attorney general's office who competes in sailboat races in Maine; photos (M)

Bush Widens Exemptions On Foreign Steel Products The Bush administration excluded more than 178 imported steel products from steep tariffs it imposed in the spring, chipping away at an effort to protect the ailing United States steel industry. The decision, which infuriated American producers, means that nearly one-quarter of all foreign imports are now free to enter the country under normal rules. The decision was the latest twist in President Bush's on-again, off-again commitment to free trade. Though administration officials justified their action on dry and technical grounds, it showed that the White House has been forced to backpedal on its protection efforts, in part because American companies say they cannot get specialty products except from overseas. [Page A1.]