July 26, 2003

Leaders of Connecticut House and Senate say they have makings of deal that would close state budget gap with mix of spending cuts and tax increases; only scant details are disclosed, but it is clear that both sides gave ground to achieve budget, which will be voted on next week (M)

Food industry experts are skeptical about recent pledge by Kraft Foods to help fight global epidemic of obesity; even Kraft officials, who have vowed to reduce portion sizes and cut fat calories of some products, are playing down some of their planned changes; food experts say that while food companies have increasingly offered healthier alternatives, consumers continue to favor snacks and products with tasty fats and sugars; Kraft's research and development team is looking to remove fat and sugar from some of company's popular items without compromising taste; charts; photos (M)

New York Stock Exchange accuses specialist firm LaBranche & Co of failing to comply with request to turn over e-mail communications in connection with ongoing investigation of specialists' stock trading practices; LaBranche has sought appointment of mediator to review and decide relevance of e-mail; company is given until August 12 to respond to request (M)

Michael Phelps breaks world records in 100-meter butterfly and 200 individual medley at world swimming championships; photo (M)

Still-classified section of joint report by House and Senate intelligence committees reportedly says senior Saudi Arabian officials have funneled hundreds of millions of dollars to charitable groups and other organizations that may have helped finance Sept 11 terrorist attacks; section, which focuses on role played by foreign governments, reportedly centers almost entirely on Saudi Arabia; some members of Congress resent Bush administration's refusal to let committees disclose chapter's contents, holding desire to protect ruling Saudi family prevents American public from learning key facts about attacks; photos (M)