BUSINESS HIGHLIGHTS

Kaufman sees US dilemma on deficits Tokyo Rapid cuts in the American budget deficit would probably drive the economy into a recession, while large US trade deficit cuts would harm the world economy, Henry Kaufman, chief economist at Salomon Brothers Inc., said in a speech here Tuesday.

``Some advocate that we reduce the US budget deficit in order to trim the US trade deficit,'' he said. ``I believe that we should tilt only moderately in this direction. Quick large reductions in both our budget and trade deficits will mean a US business recession. The rest of the world could not escape the negative fallout of such an event.'' Threesome bids for French TV channel Paris

Three bidders have applied to buy a 50-percent stake in France's oldest and most popular television channel as part of the government's plans to privatize the state-run television, a government agency said Tuesday.

The National Commission for Communication and Liberties said consortia headed by French publisher Hachette, the leading construction company Bouygues, and a group formed by two Paris advertising agencies, called T^ete `a T^ete, formally applied to buy the half share in TF 1. Franchises for two other channels went to supporters of conservative Prime Minister Jacques Chirac. Brazil's debt freeze chills US banks New York

Brazil's indefinite halt to repaying part of its $108 billion foreign debt has sent a chill through the stocks of major American banks on Wall Street.

Many bankers were caught off guard by President Jos'e Sarney's announcement that Brazil would suspend interest payments until lenders renegotiate loans. Bank stocks tumbled on Monday but recovered somewhat by midday Tuesday.

Brazil's biggest US bank lenders are Citicorp, with about $4.7 billion in loans; BankAmerica, $2.7 billion in loans; Chase Manhattan, $2.8 billion; Manufacturers Hanover, $2.3 billion; and J.P. Morgan, $1.9 billion.