July 13, 2004

Leucadia National Corp is seeking permission from Federal Trade Commission and Justice Department to buy controlling stake in MCI, troubled telecommunications company formerly known as WorldCom; announcement comes two days before MCI relists its shares on Nasdaq market (Market Place column) (M)

Jennifer Dunning Critic's Notebook column on ballet dancer Margot Fonteyn, subject of exhibit at Vincent Astor Gallery at New York Public Library for the Performing Arts at Lincoln Center; photo (M)

Former inmates of a Jordanian prison remember Abu Musab al-Zarqawi as a tough guy. ''People listened to him because they feared him, '' one said. American officials contend he has come a long way and is now the biggest terrorist threat in Iraq, accused of orchestrating suicide bombings, kidnappings and beheadings.

Pres Bush vigorously defends his decision to go to war against Iraq, saying invasion was right thing to do even though no banned weapons have been found there and claiming progress against terrorism and spread of unconventional arms; reaffirms his approach to heading off potential threats from terrorists and nations seeking or holding nuclear, chemical or biological weapons; does not dispute Senate Intelligence Committee report that found that main assessments used to justify war had been overstated or unspported by underlying intellignce; makes speech at Oak Ridge National Laboratory, where he can point to parts of Libya's uranium enrichment program now housed there; Vice Pres Dick Cheney accuses Sens John Kerry and John Edwards of criticizing Bush on Iraq after voting in 2002 to authorize use of force in confronting Saddam Hussein; Kerry responds by saying Bush has failed to reach out to allies to promote global effort to stop spread of nuclear weapons and materials and implies that war in Iraq has diverted US from other urgent threats; photo (M)

Morgan Stanley agrees to pay $54 million to settle sex discrimination case rather than stand trial on EEOC accusations that it denied equal pay and promotions to women in division of its investment bank; settlement would cover as many as 340 women, with at least 12 million going to Allison K Schieffelin, lead plaintiff; Morgan Stanley, which does not admit to any wrongdoing, agrees to spend $2 million on diversity programs overseen by outside monitor to improve chances that women will succeed there; must also provide antidiscrimination training for managers and employees in division that deals with stock trading for institutional clients; Shieffelin photo (M)

Morgan Stanley Settles Bias Case for $54 Million Morgan Stanley agreed to pay $54 million to settle a sex discrimination case rather than stand trial on the federal government's accusation that it denied equal pay and promotions to women in a division of its investment bank. The settlement, which could cover as many as 340 women, is the second largest the Equal Employment Opportunity Commission has reached with a company it sued and is the first with a major securities firm. [Page A1.]

Ben Brantley London Notebook reviews three London productions: Roger Michell's revival of Harold Pinter's Old Times at Donmar Warehouse, Connor McPherson's Shining City at Royal Court and Michael Frayn's Democracy at Wyndham Theater; notes influence Pinter has had on other playwrights; photos (M)

Federal health officials say people who are at moderate to high risk for heart disease should take medication to bring their levels of LDL, harmful cholesterol, under 100, threshold 30 points lower than the one recommended only two and a half years ago; calls for more aggressive treatment of people at high risk and says people at highest-risk, who have established heart disease plus another condition like diabetes, smoking, high blood pressure or recent heart attack, have therapeutic option to drive LDL level below 70; new recommendations will increase by a few million the number of Americans who meet criteria for therapy with powerful cholesterol-reducing drugs called statins, and many people who already take medications will be advised to increase doses (M)

China's exports rose 47 percent to record in June, up from 33 percent increase in May; exports totaled $51 billion, but imports rose 51 percent, to $49 billion, biggest gain in more than decade (S)

Article on Jeopardy! contestant Ken Jennings and impact he is having on show's popularity; Jennings, 30-year-old software engineer with unprecedented 29-day winning streak, is poised to hit $1 million mark and has made game show one of hottest television topics of summer; photos (M)

Golfers prepare for British Open; photos (M)

Citigroup is reportedly moving 1,000 employees from Lower Manhattan (NYC) to New Jersey and could move 700 employees from Midtown to Long Island City (M)