Biz Watch

Music downloading services are getting their legal act together, but they haven't yet been able to take it on the road. Apple's iTunes Music Store has rung up 14 million sales in the U.S. since its April launch. Napster, the music industry's original villain, reopens in the U.S. this week as a paid, copyright-friendly service. But users in Europe won't be listening in to either any time soon. Apple is unlikely to offer iTunes in Europe before mid-2004, with Napster waiting even longer to make the crossing. Lengthy negotiations to secure licenses from the major record labels don't help.

"Deals will probably have to be negotiated in separate countries for Europe," says Simon Dyson, senior analyst at the Informa Media Group in London. "Some artists won't want their

INDICATORS A Few Small Repairs Network Rail, the owner of the U.K.'s rail infrastructure, moved all maintenance away from private contractors and back in-house — the biggest industry change since privatization. Search For 'Kaching!' Investors drooled over Google's plans for an initial public offering early next year, probably valuing the online search engine at more than $15 billion. Reports suggest the IPO could be conducted through an online stock auction. Magic Money A Norwegian witch has won a €6,400 government grant to run a potion, fortune-telling and magic business. Newts and toads need not worry; she's promised not to try out spells.

music on offer in certain countries." Europe's not completely frozen out: British firm OD2 provides the downloading and distribution backbone for Microsoft's MSN and Italy's Tiscali, offering 200,000 songs Europe-wide. Seattle-based RealNetworks plans to roll out its Rhapsody service here next year. But for now, Europeans who want legal downloads are mostly living with the pause button.

The E.U.? You'll Fit Right In!
Poland's economic troubles deepened late last week as the Polish zloty, wobbling with uncertainty over government fiscal policies, hit new lows against the euro (€1 equals 4.66 zlotys), squeezing imports and pushing up interest rates on euro loans. Meanwhile the country's budget deficit — a whopping 5.2% of GDP — is ringing alarm bells in Brussels as Poland prepares to join the E.U. next year, and the euro zone, possibly, in 2007. Leszek Miller's government is backing a tough new austerity package, cutting spending by €6.9 billion within four years. Among other things it will overhaul the pension system (Poland is the biggest disability-pensions payer in Europe) and increase social-security rates for wealthier Poles. But with public confidence in the Prime Minister currently at 25%, down from 63% in October 2001 when he took office, Miller faces a tough selling job. — By Tadeusz L. Kucharski and Andrew Purvis

Agreeing To Disagree
A U.S. judge declared a mistrial in the case against former Crédit Suisse First Boston banker Frank Quattrone. Jurors failed to reach a verdict on charges that he interfered with federal investigations into alleged unfair allocations of shares to clients in 2000. Quattrone could face a second trial.

The Bottom Line
	In the U.S., it seems money buys everything, even innocence or guilt
		FRANCIS MER, French Finance Minister, on U.S. justice; his government disagrees with U.S. prosecutors over France's role in the failure of insurer Executive Life