November 15, 2002

Man in the News profile of Hu Jintao, new leader of China; he is veteran Communist Party insider who never strays from party's prescribed oratory; his past suggests that he values power over vision; photo (M)

Deutsche Telekom names Kai-Uwe Ricke as chief executive and simultaneously reports loss of $24.7 billion in first nine months of 2002; rumors persist that many executives approached to run Deutsche Telekom refused position and that changes in its mobile phone division, Voicestream, renamed T-Mobile USA, will be necessary components of remedy for parent company's financial malaise; photo (M)

Plan to name Asst Atty Gen Michael Chertoff to head Securities and Exchange Commission is withdrawn, either by White House or Chertoff himself; sudden turn of events adds to disarray as Bush administration tries to work quickly to find effective overseer of nation's financial markets; some Justice Dept officials say administration is reluctant to transfer Chertoff in light of his role overseeing variety of important terrorism cases; some Wall Street lobbyists say despite his impressive record as prosecutor, he has little experience with important issues before SEC; say securities industry would prefer executive from Wall Street or regulator from one of stock exchanges; administration officials are being cautious about recommending any person whose background may present same kinds of potential conflicts that became fodder for criticism of Harvey Pitt, who represented many firms on Wall Street before he was named chairman; photo (M)

Sen Bob Graham, Democrat and chairman of Senate Intelligence Committee, charges that Bush administration has been distracted from fight against terrorism by preparation for possible invasion of Iraq; American intelligence agencies come under renewed attack in Congress for failing to find Osama bin Laden; increasing certainty that he is still alive prompts senior Democratic senators to say effort to dismantle Al Qaeda is failure; Graham says American intelligence agencies must determine extent of terrorist threat at home before any military action is taken in Iraq; Defense Sec Donald H Rumsfeld, in radio interview, underscores concerns that US could face increased dangers of terrorist attacks if Pres Bush orders military action against Iraq; says Pres Saddam Hussein might orchestrate such attacks; administration officials take FBI to task for warning issued on Nov 13 about possible attacks on hospitals, but FBI issues another warning, saying Al Qaeda's highest-priority targets remain within aviation, petroleum and nuclear sectors, as well as significant national landmarks (M)

Malaysian cellular operator Celcom discovers another questionable deal involving its former chairman and controlling shareholder Tajudin Ramli; new finding concerns fraudulent invoices and improper severance payments; Celcom will attempt to recover additional 185 million ringgit from Tajudin (S)

Embraer reports third-quarter profit fell to 188 million reais ($52 million) from 253 million reais year earlier; company delivered 30 jet aircraft in third quarter, down from 41 year ago (S)

Alestra, troubled Mexican long-distance carrier that is 49 percent owned by AT&T, will be unable to make $35 million interest payment due; proposes restructuring package to avert falling into default; reports third-quarter net loss of $32 million and 12 percent decline in total traffic (S)

Disarray Grows Worse In Search for S.E.C. Chief The White House seemed close to naming as the new Securities and Exchange Commission chairman a lawyer who has been the Justice Department's leading prosecutor on corporate fraud and terrorism cases. But both the lawyer, Michael Chertoff, and White House officials backed away from the idea. It was not clear whether Mr. Chertoff pulled himself out of the running or whether the White House had second thoughts. But the sudden turn of events added to the disarray as the administration tries to work quickly to find a successor to Harvey L. Pitt. [Page A1.] Ford Executive Gets More Duties Ford expanded the duties of David Thursfield, left, one of its top executives, reinforcing speculation that Mr. Thursfield is being groomed to eventually take the No. 2 spot at the company. Ford consolidated its foreign units under Mr. Thursfield. Ford also named James Padilla an executive vice president as well as president of North American operations. [C3.] Decision Is Near on WorldCom Chief WorldCom hopes to introduce Michael D. Capellas, the former president of Hewlett-Packard and former chief of Compaq, as its chairman and chief executive as soon as today. [C3] Ex-Official at Adelphia Pleads Guilty A former official of Adelphia Communications, James R. Brown, pleaded guilty to conspiracy and fraud charges and implicated the company's founder and two of his sons in a scheme to mislead investors and regulators. [C7.] House Passes Terror Insurance Plan The House adopted legislation providing up to $100 billion in support to the insurance industry for terrorist attacks. [A19.] An industry-sponsored bill to make it harder for people to erase their debts in bankruptcy appeared to die in the House. [A28] Argentina Defaults on Bailout Loan Argentina defaulted on an $805 million loan installment to the World Bank and said it would resume payment when the International Monetary Fund agreed to restore a credit line that had been cut off. [World Business, Section W.] Quarterly Income Rises 31% at Dell Dell reported strong gains in quarterly profits and sales, matching expectations. Net income rose 31 percent, to $561 million, or 21 cents, compared with the year-earlier quarter. Sales increased 22 percent, to $9.1 billion. Dell predicted that its strong performance would continue but mainly because of its ability to take business from rivals. [C2.] Interpublic Seeks a Financial Officer The Interpublic Group of Companies is beginning a search for a chief operating officer, a job that is virtually certain to be filled from the outside. Stuart Elliott: Advertising. [C5.] Kmart's commercial about the holiday products in its Martha Stewart Everyday line does not feature Ms. Stewart. [C5.] Discount Plan Adding Generic Drugs The Eckerd drugstore chain is taking part in a discount prescription program started by drugmakers and will begin offering discounts on more than 1,000 generic drugs. [C5.] Stock Markets Rally Broadly The Dow Jones industrial average closed up 143.64 points, or 1.7 percent, at 8,542.13. The Nasdaq climbed 50.18 points, or 3.7 percent, to 1,411.52. The Standard & Poor's 500-stock index rose 21.74 points, or 2.5 percent, to 904.27. [C7.]

New York Knicks hope return of Latrell Sprewell, who has been sidelined since start of season with broken hand, will spark better play and boost team morale; photos (M)

Alex and Derek King, teenage brothers, plead guilty to third-degree murder in bludgeoning death of their father; plea agreement reached through mediation between prosecutors and defense lawyers will spare them much lengthier sentences they faced if earlier second-degree murder convictions had stood; under agreement Alex, 13, will serve seven years in prison and Derek, 14, will serve eight years; Terry King was beaten to death with baseball bat as he slept in recliner in living room of their home in Pensacola, Fla; brothers also plead guilty to burning family home to cover up their actions; say in their statement that they were influenced by family friend Ricky Chavis, who will be tried for sexually abusing Alex; boys will be sent to state prison that houses juveniles separately from adults; photo (M)

A little better than the first installment — and a whole lot longer — mostly thanks to improved special effects and a darker, more gripping story. Fans of J.K. Rowling's books are once again more likely to be satisfied than thrilled, since Chris Columbus and the screenwriter Steve Kloves follow her novel, the second in the Harry Potter series, scrupulously. But their adaptation is plodding where the book is swift, and solemnly portentous without enough leavening wit. The highly distinguished grownup cast includes Richard Harris in his final screen role and Kenneth Branagh as a self-adoring teacher. — A. O. Scott

Shares of China Telecom Corp traded in United States fall 5 percent after weak demand forces company to reduce its initial public offering by 60 percent (S)