BIZSCHEDULE (UPDATE 2)

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.