January 23, 2003

Merrill Lynch & Co reports fourth-quarter profit but says it sees no reason to expect rebound soon and forecasts more trouble for securities industry and fewer jobs; reports net income of $603 million, including $100 million charge, compared with net loss of $1.26 billion year earlier; net revenue was $4.2 billion, down from $4.75 billion; commissions fell 10 percent, to $1.07 billion, and investment banking revenue fell 22 percent, to $583 million; chief financial officer Ahmass Fakahany expects more jobs cuts unless market rebounds significantly; graph; photo (M)

Debt-Heavy AOL Considers Sale of Publishing Unit AOL Time Warner is seeking to sell its book publishing division in an effort to pay down some of the debt taken on with AOL's acquisition of Time Warner, people involved in sale discussions said. But in the current market getting a decent price may be difficult and there is no guarantee a buyer will emerge. The move, at a time when many media companies are short on cash, underscores the pressure on AOL Time Warner to pare its $26 billion debt. AOL is also trying to sell its three Atlanta sports teams, its interests in at least two cable channels, and a minority interest in its cable unit. [Page A1.]

Oakland Raiders offensive coordinator Marc Trestman, hired by former coach Jon Gruden, has developed rhythm with quarterback Rich Gannon that has led to great year for Gannon and trip to Super Bowl for Raiders; photos (M)

Possible chaos from breakdown of existing order in Iraq has become overarching fear among ruling members of Saudi royal family, who realize success in ousting Pres Saddam Hussein could send uncertain winds of change sweeping through region; has motivated day-to-day ruler Crown Prince Abdullah to press efforts to motivate Pres Bush to acquiesce in 11th-hour strategy in which decision to attack Iraq would be followed by pause for intensive diplomacy, even coup-making, to remove Pres Saddam Hussein; Saudi Arabia's failed efforts of past 40 years to unite disparate tribes of peninsula and create sense of nationhood discussed; country has existed in state of arrested political development, under monarchy anchored in deeply conservative Islamic ideology that represses women's rights and excoriates foreign 'infidels;' suffers from extensive corruption, arising from enormous oil wealth (M)

Bush administration officials will confront France, Germany and other skeptics of military action against Iraq by demanding that they agree publicly that Iraq has defied UN Security Council on weapons inspections; express exasperation with refusal of longtime allies to back US; are vigorously debating whether to seek second UN resolution authorizing force against Iraq; will insist that nations opposed to American position acknowledge Iraq has not complied with resolutions on weapons of mass destruction; say strategy is based on belief that there may never be 'smoking gun' proving Iraq's possession of illegal weapons and that case must be made in negative fashion; Pentagon announces more than 20,000 members of National Guard and Reservists have reported for active duty, bringing total to 79,000; US military force of 150,000 is expected in Persian Gulf region by mid-February (M)