Things Get Tricky for Trichet and the E.C.B.

Veteran gamblers know not to count their money until the dealing is finished, and now the European Central Bank is learning the same lesson. Jean-Claude Trichet, the governor of Banque de France, was expected to take over the E.C.B. when Wim Duisenberg resigns the presidency next July. But the succession was thrown into confusion last week when a French magistrate ordered Trichet to stand trial for his role in the huge losses at Crédit Lyonnais during the 1990s, when it was still state-owned and he headed the French Treasury.

Trichet protests his innocence and prosecutors previously recommended dropping the investigation. But because the trial won't begin until at least spring 2003, even an acquittal might not come in time to salvage his E.C.B. hopes. President Jacques Chirac lobbied hard to make sure the E.C.B. would get Trichet's — and France's — leadership next year. But now the race is on to find another French candidate from a very short list of suitable alternatives. Christian Noyer, former E.C.B. vice president, has been mentioned, but he may fall foul of rules that say board members' terms are "nonrenewable." Of course there is always the possibility that the French will swallow their pride and let the position fall to a capable outsider. But although the E.C.B. sets crucial monetary policy for 12 nations and prides itself on independence from politics, that's a bet few seasoned gamblers would take.

INTELLECTUAL PROPERTY
A Fight for the Rights to Silence
When Mike Batt, British writer of cutesy hits like Art Garfunkel's Bright Eyes, was finishing his latest work, Classical Graffiti, an album of pop-classic arrange-ments by the Planets, he was careful to credit the ori-ginal composers. He even titled the minute's silence that preceded the bonus tracks One Minute's Silence and credited it to Batt/Cage — a cheeky reference to the late avant-garde composer, right, John Cage's famous, silent work of 1952, 4' 33". Cage's publisher, Peters Edition, got the joke but filed for a share of the copyright dues anyway. While Batt was still "in hysterics", his label, EMI, had already coughed up a first installment of €460 to them. Batt wants it back, denies any intellectual infringement and says, "I'm not backing down and neither are they." The rare good humor of the spat — consecutive perfomances of both "silences" were staged last week in London — could evaporate en route to court; if Clas-sical Graffiti sells as Batt hopes, the final bill could be €150,000. Both sides might care to ponder Cage's own observation that, "the very practice of music ... is a celebration that we own nothing."

THE BOURSE
The Steel Deal
Anglo-Dutch steelmaker Corus will buy Brazil's CSN in a $4.3 billion stock and debt swap. The deal moves Corus from sixth to fourth place in global steel production.

Pfizer Upsizer
The race for pharmaceutical consolidation continued apace as Pfizer announced a $60 billion takeover of Pharmacia. The move solidifies Pfizer's top spot in the global drug industry.

IBM Sings the Big Blues
IBM, the world's largest com-puter company and leading tech indicator, reported a 97% fall in quarterly earnings. IBM warned that technology spending may stay slow this year.

The Sweet Smell of Sale
German drug giant Bayer is selling its Haarmann & Reimer fragrances and flavor unit to Sweden's EQT for 31.66 billion. The move helps cut Bayer's 314 billion debt.

INDICATORS
The Dollar takes a dip
The euro reached and passed parity with the dollar for the first time in two and a half years, ending the week worth $1.013. The dollar's fall is good news for U.S. exporters, but a sustained slump could spell trouble for export-dependent nations like Japan and Germany.

Baby You Can Buy My Car
n Auto prices may be rolling downhill after the European Commission changed car-sale rules to increase competition. Dealers will soon be allowed to sell multiple brands and open showrooms across the E.U., where prices now can vary up to 50% for the same model.

Silver Lining
Fortunately, the London Stock Exchange hasn't been the only thing falling lately in Britain. Inflation also hit a 27-year low of 1.5% in June, making an interest rise by the Bank of England unlikely despite the skyrocketing cost of property.

Where's Le Boeuf?
The European Commission asked the European Court of Justice to impose a €158,250 fine on France for each day it refuses to lift its ban on British beef. The French government has ignored the court's earlier ruling that the ban is illegal.

BOTTOM LINES
"If you saw something, you stopped it. Oh, a good audit was a beautiful thing."
Al Bows, 88, retired Andersen senior partner, on accountancy when Arthur Andersen hired him in 1935

"It looks to me like spring, when the snow melts and you see the dog shit that's been there all winter."
John Malone, chairman of Liberty Media, on the scandals rocking corporate America

"Greed is not an issue of business, it's an issue of human beings."
Alan Greenspan, U.S. Federal Reserve Chairman, on the causes of the stock market bubble