September 20, 2002

Hennes & Mauritz says third-quarter profit rose 53 percent; net income rose to 1.24 billion kronor ($133.3 million) in quarter from 810.2 million kronor year earlier (S)

Federal health officials say they are nearly certain West Nile virus has been transmitted through blood transfusions, and that they are accelerating efforts to develop tests to detect virus in blood; say chance of contracting virus from transfusion is very low and that there is no chance at all of contracting it from donating; blood banks are being advised to ask donors to call back if they develop mild fever or flulike symptoms from West Nile fever in days after they give blood; officials say it will be months before effective blood screening test for West Nile is developed; suggest that patients consider postponing any elective surgery in which transfusion might be needed; photo (M)

Obscure trade dispute between Europe and US has turned into political brawl over $100 billion in corporate tax breaks that pits many of America's biggest companies against one another; business interests are so divided and corporate intrigue so intense that Congress has become all but paralyzed over issue; consequences of stalemate could be severe; World Trade Organization has repeatedly ruled that American tax break for what are known as foreign sales corporations amounts to illegal trade subsidy; arrangement provides huge benefit to many multinationals by allowing American companies to reduce their taxes on profits from exports by channeling sales through foreign sales corporation, based in low-tax country; trans-Atlantic trade war could develop if US refuses to eliminate or fundamentally change break; European Union is entitled to impose up to $4 billion in retaliatory tariffs on American exports; House Ways and Means Committee chairman Bill Thomas has sponsored bill aimed at resolving dispute; many fellow Republicans, including Rep Jennifer Dunn, oppose plan; photo (M)

Miles Dabord, brother of former basketball player Bison Dele, is found comatose in California hospital and is arrested in connection with disappearance of Dele, Serena Karlan and french boat captain Bertrand Saldo while they were sailing after last being seen in Tahiti (M)

Floyd Norris column urges change in way stock options are taxed; says current tax rules are perverse; holds employees owe high ordinary taxes on stock option profits, while companies that issue options can get big tax deductions when options are cashed in; says taxing options upfront would indicate to employees that options being issued have value, and it would provide incentive to companies to reasonably estimate that value, rather than push for lowest possible number; graph (M)

Clyde Haberman comments on Mayor Michael Bloomberg's campaign to outlaw smoking in bars and restaurants, noting are there some who protest his crusade (M)

OPEC leaves current production quotas intact at 21.7 million barrels per day, meeting in Osaka, but declares that it is ready to pump extra oil on short notice if shortages develop, including any resulting from American attack on Iraq; price of crude oil rises 2 cents, to $29.50 per barrel, in New York trading; chart (M)

House and Senate negotiators reach agreement on new fuel economy rules that would increase oil consumption, rather than decrease it, unless Bush administration takes more aggressive action; bill would allow Congress to extend by four years, through model year 2008, credits automakers receive for making vehicles that can run on ethanol and gasoline; automakers use credits to offset their growing production of sport utilities and other vehicles that get relatively low gasoline mileage; agreement would also direct National Highway Traffic Safety Administration to rewrite fuel economy standards so that fuel consumption by light trucks would be reduced by at least five billion gallons of gasoline by 2012 model year, compared with consumption expected under current standards; Repr John D Dingell, who sponsored bill, says package is equivalent of taking all SUV's and light trucks off road for two years, and it is good place to start; environmental groups call his calculations misleading; photo (M)

Horrors of driving Cross Bronx Expressway described; Cross Bronx--potholed, truck-clogged, chassis-mashing brute of expressway that bulls its way through heart of Bronx--is arguably most savage road in New York City; problems described; photos; map (L)

WorldCom Creditors Said to Be Restless Bert C. Roberts Jr., WorldCom's chairman, and John W. Sidgmore, its chief executive, are coming under increasing criticism from creditors concerned about the two men's inexperience at restructuring, their control of the search for a new chief executive and their possible involvement in an expanding accounting scandal, people close to the company said. That pressure is expected to increase because WorldCom is close to identifying $2 billion to $3 billion in additional results it will have to restate. [Page C3.]

Palestinian suicide bomber blows himself up in Tel Aviv bus outside city's main synagogue, killing five people and wounding scores; hours later, Israeli tanks and armored vehicles encircle Yasir Arafat's compound in Ramallah and demand over loudspeakers that he surrender wanted men who are inside with him; Israeli military is expected to impose further restrictions on Palestinian towns; bombing attack is second in less than 24 hours, ending 45-day stretch of no terrorist attacks inside Israel; during that time, new political and diplomatic initiatives had stirred faint hopes that violence of past 24 months was abating; Islamic Jihad and Hamas claim responsibility for attack; both groups have rejected all efforts by moderate Palestinian leaders to abandon attacks within Israel, and have threatened more attacks; photos; map (M)

Pres Bush asks Congress for sweeping authority to use 'all means' to disarm Iraq and dislodge Saddam Hussein, 'including force'; warns that if United Nations Security Council does not deal with problem, US and 'some of our friends' will; this is Bush's hardest push yet for swift action on Iraq; Secretary of State Colin L Powell and Defense Sec Donald H Rumsfeld take administration's case to Capitol Hill, where senior leaders of both parties express general support for Bush's request but signal there will be changes in wording, particularly to line about restoring international peace in region; request includes long string of charges, including Iraq's repeated violations of decade of UN resolutions on disarmament, its repression of minorities, its attempt to assassinate first Pres Bush in 1993, its support for international terrorist organizations and presence of Al Qaeda members who, Bush says, are 'known to be in Iraq'; photos (L)