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)