The amorphous sector challenge

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The amorphous sector challenge

European equity brokers have been struggling with the challenge of shifting to sector research from country research. The big firms are going even further, with cross-sector analysis of rapidly changing industries. Luciano Mondellini reports.

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The big book Charles Scott picks up from behind his desk "is a very important piece of research because the internet represents a new era for all businesses". Scott, director of European equity research at Morgan Stanley Dean Witter, is talking in his office on London's Canary Wharf, overlooking the Thames. The book, released in June by Scott's firm under the title The European Internet Report, is a 360-page analysis of the impact the internet will have on the European business world.

The report analyzes the growth potential of three groups of corporates in terms of the opportunities that the net offers them. The first group, which includes stocks such as Dutch telecom operator KPN and Finland's telecoms equipment firm Nokia, comprises 11 large companies from technology-related industries such as telecommunications, software and media. The second, featuring some of Europe's best-known companies such as German airline Lufthansa, UK bank Barclays and UK supermarket chain Tesco, comprises 29 stocks from a wide variety of sectors that could boost their profit further through the internet.


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