www.forbes.com Reuters, 02.03.03, 5:01 PM ET THE REUTERS BUSINESS REPORT Monday, Feb. 3, 2003 Editors: Frank McGurty Eddie Evans, Toni Reinhold Tel. 646-223-6200 Technical assistance: 800 435-0101 (** Denotes stories added since latest Bizschedule) (Some earlier stories may have been dropped from this update) ------------------------------------------------------------- TOP STORIES WASHINGTON - President Bush sends Congress a $2.23 trillion budget for next year that would expand the military, slash taxes for investors and overhaul government-subsidized health care, racking up record deficits even without a possible war with Iraq (BUDGET (UPDATE 3), BY ADAM ENTOUS, EXPECT BY 5:30 P.M.) SEE ALSO: BUDGET-ECONOMY (UPDATE 2), MOVED BUDGET-HIGHLIGHTS, MOVED NEW YORK - Upbeat reports on the manufacturing and building sectors suggest the tempo of economic growth is likely improving from last quarter's funereal pace (ECONOMY (WRAPUP 2), BY WAYNE COLE, MOVED) SEE ALSO: ECONOMY-MANUFACTURING (UPDATE 1), MOVED ECONOMY-CONSTRUCTION (UPDATE 2), MOVED ECONOMY-HOUSING-AFFORDABILITY, MOVED NEW YORK - Frank Quattrone, an investment banker whose success in the '90s technology boom was legendary, is suspended by Credit Suisse First Boston amid an internal investigation of hot stock offerings (FINANCIAL-CSFB-QUATTRONE (UPDATE 2), BY GREG CRESCI, MOVED) CORPORATE PHILADELPHIA - WorldCom, the bankrupt phone company, will cut 5,000 jobs, more than 8 percent of its work force, and trim annual costs by $2.5 billion in an effort to emerge from bankruptcy (WORLDCOM-JOBS (UPDATE 2), BY JESSICA HALL, MOVED) CHICAGO - Shares of Boeing, Lockheed Martin and Alliant Techsystems, all major space shuttle contractors, drop in the first trading day after the Columbia shuttle disaster (SHUTTLE-AEROSPACE-STOCKS (UPDATE 2), EXPECT BY 5:30 P.M.) DETROIT - Auto sales slowed in January from December's breakneck pace, but aggressive incentives and hot products helped some automakers eke out gains (AUTOS-SALES, BY TOM BROWN, MOVED, WILL BE LED) SEE ALSO: AUTOS-INCENTIVES-CHRYSLER (UPDATE 1), MOVED EARNINGS AND OUTLOOKS ** ARLINGTON, Va. - US Airways Group reports the industry's second-biggest quarterly loss, as slower demand and cost pressures hurt results while it worked to restructure in bankruptcy court (AIRLINES-USAIRWAYS-EARNS (UPDATE 1), MOVED, WILL BE LED) CHICAGO - Wendy's hamburger chain expects 2003 earnings to miss its target, citing a price war among larger fast-food rivals and rising costs (LEISURE-WENDYS-OUTLOOK (UPDATE 3), BY DEBORAH COHEN, MOVED) LOUISVILLE, Ky. - Managed care company Humana Inc. posts a quarterly net loss, reflecting severance costs from job cuts, charges related to acquisitions and other items (HEALTH-HUMANA-EARNS (UPDATE 3), MOVING SHORTLY) NEW YORK - Mattel, the No. 1 U.S. toy maker, says earnings rose 35 percent, led by strong sales of Barbie dolls and Fisher-Price toys (MANUFACTURING-MATTEL-EARNS (UPDATE 3), BY ANGELA MOORE, MOVED) MARKETS NEW YORK - Stocks climb after surprisingly strong data on the manufacturing sector lifts hopes for better economic growth this year, but the threat of war keeps investors' enthusiasm in check (MARKETS-STOCKS (UPDATE 10), BY ELIZABETH LAZAROWITZ, MOVED) SEE ALSO: MARKETS-FOREX (UPDATE 8), MOVED MARKETS-BONDS (UPDATE 3), MOVED MARKETS-USA, EXPECT BY 6 P.M. MARKETS-COMMODITIES, EXPECT BY 6 P.M. MARKETS-OIL (UPDATE 4), MOVED MARKETS-EUROPE-STOCKS (UPDATE 7), MOVED ALSO IN THE NEWS ** BOSTON - Former Tyco International general counsel Mark Belnick is charged with stealing $12 million in a scheme that hid lucrative bonus payments from the conglomerate's board (MANUFACTURING-TYCO-BELNICK (UPDATE 3), BY TIM MCLAUGHLIN, MOVED) NEW YORK - You could be forgiven for investing in Global Crossing once, during the height of the Internet boom. But twice? That's the question facing investors as the high-speed network operator prepares to emerge from bankruptcy (TELECOMS-GLOBALCROSSING, BY SIOBHAN KENNEDY. EXPECT BY 6 P.M.) AMSTERDAM/SAN FRANCISCO - Global chip sales grew a feeble 1.3 percent in 2002 after a weak December but are expected to grow much faster this year, industry groups say (TECH-SEMICONDUCTORS-SALES (UPDATE 3), BY LUCAS VAN GRINSVEN AND ELINOR MILLS ABREU, MOVED) CANADA OTTAWA - Corel Corp., best known for its WordPerfect and CorelDraw products, posts a wider fourth-quarter loss, but the software maker says it will return to profit in 2003 (TECH-COREL-EARNS (UPDATE 1), MOVED) LATAM ** MEXICO CITY - Mexican telephone giant Telmex, the most closely watched stock in Latin America, reports earnings for what is expected to be its fourth weak quarter in a row as Mexico sluggishly emerges from an economic recession (TELECOMS-MEXICO-TELMEX, BY FIONA ORTIZ, EXPECT BY 7 P.M.) CARACAS - Venezuela's opposition hails as a victory a petition for constitutional reform aimed at ousting President Hugo Chavez, but they face a tough battle to force the leftist leader to accept elections in the world's No. 5 oil exporter (VENEZUELA, BY PATRICK MARKEY, EXPECT BY 3 P.M.) SEE ALSO: VENEZUELA-STRIKERS, MOVED SAO PAULO - Banco Bradesco SA, Brazil's biggest private bank, posts better-than-expected earnings, due in part to cash it put aside earlier to protect against currency volatility (FINANCIAL-BRAZIL-BRADESCO-EARNS (UPDATE 3), BY NICHOLAS WINNING, MOVED) MORE INTERNATIONAL STOCKHOLM - Swedish telecommunications equipment maker Ericsson reports a weaker-than-expected end to 2002 and says first-quarter sales may fall by more than a third (TECH-ERICSSON (UPDATE 4), BY JAN STRUPCZEWSKI, MOVED) LONDON - A new anti-impotence pill goes on sale in Europe, signaling the start of a multibillion-dollar battle for a market dominated by Pfizer Inc.'s Viagra (HEALTH-IMPOTENCE, BY BEN HIRSCHLER, MOVED) TOKYO - Prime Minister Junichiro Koizumi dismisses speculation he will select Nobuyuki Nakaharaa, a proponent of inflation targeting, as the new Bank of Japan chief (ECONOMY-JAPAN-KOIZUMI (UPDATE 2), BY YONGGI KANG, MOVED) FEATURES NEW YORK - Forget war fears, a sagging stock market and other worries. When it comes to pension accounting, many companies just refuse to take off their rose-colored glasses (BIZFEATURE-ACCOUNTING-PENSIONS, BY DEEPA BABINGTON, MOVED) NEW YORK - A few years ago, the online grocery business was all about buzz, with not much said about profits. Now, the buzz has gone, and for profits, the few survivors are still not saying much (BIZFEATURE-RETAIL-ONLINE, BY ELLIS MNYANDU, MOVED) COLUMN BOSTON - The idea of setting aside money for future goals can be hard to swallow during a period of economic weakness. But saving even modest amounts can make an enormous difference in your long-term prospects (COLUMN-FUNDS, BY CLINT WILLIS, MOVED) Please e-mail comments and questions about the Reuters Business Report (RBR) to frank.mcgurty@reuters.com, eddie.evans@reuters.com or toni.reinhold@reuters.com, or call (646) 223-6200.

abcnews.go.com The Associated Press CARACAS, Venezuela Feb. 3 —

Workers in all sectors but the vital oil industry returned to their jobs Monday abandoning a two-month general strike that devastated Venezuela's economy but failed to oust President Hugo Chavez.

As life began returning to normal in stores, factories and banks, the government made gains toward restoring oil production to pre-strike levels in a nation that is a major supplier of crude to the United States and the world's fifth-largest petroleum exporter.

The fear of bankruptcy and shortages of gasoline and other essentials prompted leaders to end the strike, which began Dec. 2, said Albis Munoz, vice president of the country's biggest business chamber, Fedecamaras.

Chavez, elected in 1998 and re-elected in 2000, vows to defeat his opponents in the streets and at the ballot box. He said Sunday he will prosecute strike leaders for sabotaging the economy.

Venezuela's opposition still hopes to generate international pressure for new elections.

The United States, Brazil, Chile, Mexico, Spain and Portugal joined the Organization of American States in mediating 3-month-old talks. Over Chavez's objections, they endorsed an early election.

After meetings here Friday, diplomats from the six nations said early elections were the best way to restore stability.

Seeking to capitalize on the strike's momentum, the opposition organized a massive signature drive Sunday for early elections the strike's original goal. Organizers claimed 4 million people signed the petitions, a claim that could not be verified.

Strike leaders are a mix of conservatives, leftists, business associations, labor unions and civic groups. Their often conflicting petitions reflected their various agendas.

One called for a constitutional amendment declaring Chavez's term over. Another would cut his term from six years to four, allowing elections this year. A third would create a constituent assembly to rewrite the constitution and call general elections.

Yet another option: A binding referendum halfway into Chavez's term, or in August, as permitted by the constitution. That idea was supported recently by former President Carter.

Chavez says he prefers the August option a referendum he could win because the opposition, while condemning political and economic unrest, has yet to present an alternative to his populist "revolution" for the poor.

While Manuel Cova, secretary general of the Venezuela Workers Confederation, claimed some sort of vote could be held as early as March, Venezuela has no one to organize a vote.

The Supreme Court ruled last month that the Chavez-dominated Congress must appoint a new board of directors for the National Elections Council. Without a council, no one can verify the signatures collected Sunday.

The strike reflected "the disorganization of the opposition," said Riordan Roett, director of Western Hemisphere studies at Johns Hopkins University.

"It was anti-Chavez but never pro-anything. What were they going to replace Chavez with?"

Lines disappeared at banks, traffic jams reappeared, and janitors swept the halls at Caracas' multistory Sambil shopping mall Monday in anticipation of a Tuesday opening.

The strike "lasted too long and now we are paying the consequences," said Luis Lange, 24, manager of an electronics store.

Like Lange, hundreds of thousands of businessmen had counted on holiday sales to make up for last year's poor sales.

According to the Fedeindustria business chamber, the fallout from the strike and continuing recession will cost 200,000 jobs and close more than 20,000 small- and medium-sized businesses by August.

Chavez also fired more than 5,000 striking oil workers.

Lack of oil and tax income forced Chavez to cut 10 percent from Venezuela's $25 billion budget for 2003. Economists forecast the economy will shrink 25 percent this year after an 8 percent contraction in 2002.

Venezuela's crude oil output rose to 1.2 million barrels per day Monday, compared with 1.1 million barrels over the weekend, according to dissident staff at the state owned monopoly Petroleos de Venezuela, S.A.

That is about a third of normal production, but Venezuela is expected to add 200,000 more barrels per day in the coming weeks, the staff's daily report said.

www.ghanaweb.com

Accra, Feb. 3, GNA - Mr. Kwame Owusu, Special Adviser to the Minister of Energy, said on Monday that the current fuel pricing system might undergo a review in three months after its announcement.

The review is necessary to assess the performance of the new pricing system and to find out if the world price of crude oil would have come down to enable the Petroleum Tender Board to incorporate the amount for the payment of the debt at the Tema Oil Refinery.

Speaking to the GNA in an interview, Mr Owusu admitted that the Ministry of Energy has a formula that could incorporate a total of 530 cedis on a litre of fuel to pay the TOR debt in 10 years.

He said if government had added the amount to pay the debt to the current price, it would have pushed the price of petrol to 23,000 cedis. "That would have been too much for th! e people to bear."

He said the Ministry is waiting for some time before going to Parliament for the review and possibly the addition of the debt payment, which is already incorporated in the current formula. The GNA interviewed the Special Adviser on the possibility of reducing the price of LPG to encourage its use, and Mr Owusu said if the price of any of the petroleum products has to be reduced at the time of the review, it would have to come about through cross subsidies.

He explained cross subsidies to mean a reduction in the price of one product for subsequent addition to another product. The interview by the GNA followed concerns expressed by a section of the public that there was the need for the government to reduce the price of LPG, a by-product of crude refining, to serve as an incentive for people to use the product instead of relying on fuelwood and charcoal which has been contributing to the depletion of the country's forests.

Mr Owusu said apart fro m cost recovery, the current petroleum pricing formula enables the Tema Oil Refinery (TOR) to spread the total cost of production on each of the products that comes out of the refined crude oil.

He expressed the hope that despite the situation in Iraq and Venezuela other oil producers would produce more crude oil to reduce the world market price. He said this would enable TOR to record total cost recovery and at the same time pay off the debt.

www.granma.cu Havana. February 3,  2003

ON February 2nd, President Fidel Castro attended the launch of the second edition of El Golpe Fascista Contra Venezuela (Fascist Coup against Venezuela), a book containing speeches and public statements by the country’s leader, Hugo Chávez.

Published by Ediciones Plaza, the volume contains the Venezuelan president’s reiterated exposés, including his recent contribution to the 3rd World Social Forum in Porto Alegre, Brazil.

Cuban Foreign Minister Felipe Pérez Roque described the book as a weapon for combat and thought, and went on to emphasize that the coup in Venezuela has been totally defeated now, thanks to the heroism of the Venezuelan people and their leader Hugo Chávez.

Pérez Roque reflected on the events that occurred in that Bolivarian nation last April and December and pointed out that the solution to a dilemma is being played out in Venezuela, not just for that country but for Latin America as a whole.

He added it will be increasingly difficult for transnational corporations and the oligarchy to impose their designs and interests on the Venezuelan people.

During the launch Julio Montes, Venezuelan ambassador in Havana, stressed that the battle against the coup has been decisively won. He explained that the deceptionally termed "general strike" has been called off, amounting to an admission of defeat. He also noted the resulting profundity of awareness within the Bolivarian process.

Twice-published in record time – less than 48 hours – the release of this key testimonial relating to the truth of recent events in the Andean nation was made possible by Ediciones Plaza, who carried out the project on the initiative of President Fidel Castro.

Pedro Alvarez Tabío, editor of the publishing house, stated that this expanded edition is published in English, French, Italian, German, Russian and Arabic.

From Caracas, President Hugo Chávez praised the Cuban edition of the book, reported Prensa Latina. The head of state applauded the speed with which his most recent public statements have been collated and printed.

english.pravda.ru 23:58 2003-02-03

On Sunday night, the Venezuelan opposition movement decided to terminate the strike which had lasted almost two months. The strike was intended to topple the government of President Hugo Chavez, who has been democratically elected to be Head of State until 2006, something which it has failed to do.

Timoteo Zambrano, the spokesperson for the “Democratic Coordination”, the organism controlling the opposition to Hugo Chavez, declared to the Press that he would not abandon the thousands of workers dismissed by the Venezuelan State Oil Company, Petroleos de Venezuela, SA (PDVSA) due to their support for the strike.

He added that the opposition will adopt a new strategy, working together with the President of the Organization of American States, Cesar Gaviria.

Marcia MIRANDA PRAVDA.Ru BRAZIL