April 5, 2005

Clyde Haberman NYC column discusses newsworthy events in New York politics, including news that while New York State Legislature passed budget on schedule for first time in 21 years, it may be incomplete (M)

Justices Rule Creditors Cannot Go After I.R.A.'s A unanimous Supreme Court interpreted federal bankruptcy law to shield individual retirement accounts from creditors. The decision had the effect of giving middle-income consumers the same protection in bankruptcy that higher-earning workers receive for their 401(k) plans and company pensions. The company plans, as well as Social Security payments, were already exempt from creditors. But the bankruptcy code's treatment of I.R.A.'s was sufficiently ambiguous to have resulted in much uncertainty and conflicting lower-court decisions. [Page C2.] Trade Quotas Might Be Revived Reacting to a flood of Chinese clothing imports since January, the Commerce Department announced that it would begin an investigation into the need to re-impose trade quotas that were lifted just three months ago on a wide variety of Chinese apparel. [C5.] A Coming-Out Party for Madden Steven Madden, left, the founder of the namesake shoe company, is coming out of federal prison in Florida after serving a 41-month sentence for cheating investors in a stock-fraud scheme. The company has decided to promote the return of its creative leader in a series of eye-catching posters and print advertisements. Stuart Elliott: Advertising. [C10.] Illegal Immigrants Pay Taxes The seven million illegal immigrant workers in the United States are having Social Security and Medicare taxes withheld from their wages, but they will not be able to collect. [A1.] Concessions by Microsoft Microsoft plans to meet most demands by European Union regulators on making software blueprints available to competitors, including cuts in licensing fees. [C13.] Satellite Radio Gaining Popularity Satellite radio is still unprofitable, but it has a total of five million customers after fewer than three and a half years of operation. [A1.] Verizon Says It May End MCI Bid Verizon signaled its unwillingness to raise its $7.6 billion offer for MCI and said that it was prepared to walk away from its agreement to buy the company, which also has received an offer of $8.9 billion from Qwest. [C13.] Cost-Cutting Expected at Pfizer Pfizer is expected to announce annual spending cuts of $2 billion to $4 billion to help stabilize earnings at a meeting with investors. Shares of Pfizer are near a five-year low, sales are flat and profits are under pressure. Moreover, the company has few new drugs to make up for the $14 billion in sales it will lose over the next three years as some of its biggest-selling medicines lose patent protection. [C20.] Interest in an Allied Domecq Bid Shares of Allied Domecq rose after it was reported that Fortune Brands had hired bankers to consider a bid for Allied Domecq. [C4.] Poor Results From Some Car Seats Four models of child car seats performed poorly in crash tests when used with a new federally required safety system, according to a study by Consumer Reports. [C2.] The Economic Toll of Bird Flu Investment banks are starting to issue warnings on the risks that avian influenza poses to the economies and markets of East Asia. [C4.] Slight Increases in Stock Gauges The Dow Jones industrial average rose 16.84 points, to 10,421.14; the S.&P. 500 gained 3.20 points, to 1,176.12; and the Nasdaq composite climbed 6.26 points, to 1,991.07. [C13.] Wanted: A Good Night's Sleep Hotels are adding alarm clocks that can wake travelers with music, and luxury beds and bedding. Flat-bed seats on airplanes help travelers get enough sleep before an important meeting. Joe Sharkey: On the Road. [C8.]

Dr Bryan Fry, University of Melbourne biologist, is compiling data in hopes of deciphering evolution of snake venoms over past 60 million years; research, some of which has been published in journal Genome Research, would have been unthinkable before technological innovations developed for Human Genome Project; supports theory that venom developed through gene recruitment from other organs, which then produced proteins in venom gland; various levels of venom toxins in snakes described; photos; graphs; drawings (L)

University of Chicago researchers discover that liquid droplets do not generate splash when surrounding air pressure is lowered; findings are presented at American Physical Society meeting; photos (S)

Morgan Stanley chief executive Philip J Purcell, in abrupt strategy reversal, says its board has authorized him to pursue spinoff of company's Discover credit card business; Daniel B Strickler Jr, former Morgan Stanley top executive, writes letter to Morgan's board, demanding that Purcell step down; letter paints picture of Purcell as manipulative and out-of-reach chief executive; Strickler's 3.8 million shares make him larger shareholder than any of eight retired Morgan Stanley dissidents; his stake also exceeds 2.9 million shares Purcell owns, although Purcell also owns another 2 million in options; Morgan's board releases letter supporting Purcell; five retired Dean Witter executives also wrote letter to board last week, defending Purcell's leadership; graph (M)