TOP 10 STORIES Aug. 28-Sept. 1

1. College Student Arrested in Emulex Hoax: The FBI arrested a 23-year-old El Segundo man for allegedly concocting the bold stock market hoax that briefly but dramatically drove down shares of Costa Mesa-based Emulex Corp. a week earlier. Authorities alleged that Mark Simeon Jakob, an El Camino Community College student and active stock trader, carried out the hoax to recoup severe losses suffered on earlier trades in the company. The scam--in which a bogus press release claimed that securities regulators were investigating the company and that its chief executive had resigned--demonstrated the relative ease with which stocks can be manipulated in the fast-moving Internet Age. But the quick arrest also may indicate that authorities are getting better and faster at investigating cyber crimes.

Walter Hamilton

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2. Tire Recall Widened: Federal safety regulators warned consumers that an additional 1.4 million Firestone tires are subject to the same problems that forced a recall of 6.5 million tires last month, expanding the investigation beyond Ford vehicles to include Nissan and Chevrolet trucks. The National Highway Traffic Safety Administration said Bridgestone/Firestone had declined its request to voluntarily include the additional tires in the recall. NHTSA also said it had received reports of more deaths related to Firestone tire failures, raising the total to at least 69, according to Los Angeles Times figures. Meanwhile, a Venezuelan safety agency recommended criminal charges be pursued against both Bridgestone and Ford.

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3. Buyout Could Cut DLJ Presence in L.A.: Credit Suisse Group agreed to acquire Donaldson, Lufkin & Jenrette Inc. in a deal that could mean a major shake-up of the financial landscape in Los Angeles, where DLJ has been the region’s dominant investment banking presence for the last decade. Though the $11.5-billion merger could eventually create a global powerhouse, some rival Wall Street firms are questioning whether the large Los Angeles DLJ staff can keep its prized autonomy--and whether many of the firm’s well-connected deal makers will opt to stay put.

Debora Vrana

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4. PacBell Stumbles on DSL Service: Tens of thousands of California consumers who ordered high-speed Internet access from Pacific Bell are fuming over no-show installers, “lost” orders and broken promises in the wake of a six-week systems meltdown at a company affiliate called SBC Advanced Solutions Inc. Frustrated customers had filed 692 complaints with the California Public Utilities Commission by the end of July, up from 162 for all of 1999. Regulators are taking notice, but it’s unclear whether they have the authority to step in on behalf of consumers.

Elizabeth Douglass

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5. Skimpy Parts Supply Crimping Tech Shipments: Soaring demand for everything from the computer servers that run office networks to the latest Pokemon toys has led to an unprecedented shortage in electronic components that is expected to last through Christmas and well into next year. Many retailers are out of Palms and other hand-held computers made by Hewlett-Packard Co., Casio Computer Co. and others. Parts suppliers blame the decade-long U.S. economic boom that has spurred demand for waves of new products in cycles far shorter than the year or more it takes to build computer chip or component factories.

Joseph Menn

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6. Rising Prices Deepen Energy Woes: Energy in its many forms slipped deeper into crisis territory as oil futures hovered near $34 a barrel, the price of natural gas set a record, the price of heating oil hit a 10-year high and spot gasoline prices jumped sharply. California’s electricity emergency commanded political attention with bills passing to provide rate relief to consumers and to speed the building of new power plants. Cool temperatures kept the state’s electricity grid operating smoothly, but big power users are complaining about the unforeseen frequency of electricity interruptions because of tight supplies, which are behind all the market gyrations.

Nancy Rivera Brooks

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7. Economy Easing Slowly: The unemployment rate edged up slightly to 4.1% from 4% in July, but much of the rise in joblessness came from temporary Census Bureau workers going off the government payroll and striking workers at Verizon Communications. Other signs that the economy is slowing but still strong came in reports of a decline in manufacturing activity and in factory orders, a drop in construction spending and a decline in the leading economic indicators. Personal spending continued to outpace income and new home sales jumped in July, but consumer confidence began to edge down in August, other surveys showed.

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8. August a Cool Summer Month for Retailers: Back-to-school shopping proved a bust in August. Retailers overall saw sales grow a paltry 3% during the month, mostly because of weakness in the apparel market. Sluggish sales prompted Target Corp., J.C. Penney Inc. and Pacific Sunwear of California Inc. to warn of potential earnings shortfalls for the third quarter. Discounters Wal-Mart Stores Inc. and Kmart Corp. posted healthy sales gains, however. Hardest hit were department stores and specialty clothing stores, such as Gap Inc., which posted a 14% sales decline in stores open at least a year. Meanwhile, Nordstrom Inc. restored members of the founding Nordstrom family to top management spots in a shake-up that saw the chief executive and chief financial officer quit.

Abigail Goldman

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9. Intel Broadens Patent Fight Against Broadcom: Intel Corp. filed a sweeping federal lawsuit against Broadcom Corp., charging that “nearly every aspect” of the Irvine firm’s business violates Intel patents. The lawsuit is the latest and broadest legal challenge that Intel, the world’s largest maker of microprocessors, has leveled against a company it helped build. Intel was an early investor in the communications chip maker. Broadcom said it’s “confident in the soundness of our business practices” and will defend against the accusations vigorously. Broadcom shares ended the week at $242.06 on Nasdaq.

10. Beringer Wine Goes Global With Sale: In an attempt to tap global markets, Beringer Wine Estates Holdings agreed to be acquired by Australia’s largest brewer, Foster’s Brewing Group Ltd., for $1.5 billion. The deal would allow Foster’s to get its Australian wines more exposure in U.S. stores. The merger also would give Beringer, which had struggled to find enough capital to expand overseas, access to a global distribution network.

Melinda Fulmer