A Summary of Special Studies Prepared by
The Global Securities and Research Group
NEW YORK, June 24 /PRNewswire/ -- Merrill Lynch has announced the
following:
The View From The U.S.
Internet toy sales may grow rapidly enough that they may stunt same-store
sales growth at discount stores in the category as early as Christmas 1999.
Further, as retailers develop web sites, the lure will be for investors to peg
values to those of pure "e-tailers." But pure e-tailer growth rates may not
be sustainable once traditional retailers begin to participate and cannibalize
sales. (Peter Caruso, first vice president, 212-449-1927.)
The business service sector -- ranging from janitorial services to
strategic decision-making services -- is growing more than twice as fast as
the remainder of the United States economy and investment opportunities are
likely to continue to outpace the overall market. The business service
sector, with revenue of about $560 billion, is growing at about 16 percent
annually. Moreover, many companies in the sector have recently become public.
Of the 358 companies cited in the report, 209 became public through initial
public offerings or spin-outs in the last five years. (Thatcher Thompson,
vice president, 212-449-8787.)
Residential furniture companies as a group currently are expected to show
an 18.1 percent increase in second quarter profits on a 12.3 percent
improvement in revenues. In contrast, contract (office) furnishings
companies, for the second consecutive quarter, are expected to post declines
of nearly one percent in revenues and nearly 23 percent in earnings from
year-earlier results. (Pamela Singleton, first vice president, 212-449-1914.)
The View From Outside The U.S.
World economic growth should re-accelerate to 2.4 percent in 2000 from
1.9 percent in 1999. On the European continent easy money, low interest rates
and the end of pre-European Monetary Union austerity, all support domestic
demand. Overall, Euroland growth is expected to accelerate to 2.7 percent in
2000 from 1.8 percent in 1999. The United Kingdom's economy should under
perform Euroland in 1999 and 2000. (Holger Schmieding, 011-44-171-892-8961.)
The profit impact from global airline alliances so far has been
substantial and is growing. Overall, global airline families are in the
process of developing global brands and are poised to begin cutting costs, now
that most of the alliances among major carriers are nearing completion.
Although the global brands have had limited impact, their importance likely
will increase as aviation laws are liberalized. (Candace Browning, first vice
president, 212-449-1089.)
Merrill Lynch Global Securities Research and Economics Group
Merrill Lynch Global Securities Research and Economics has more than
700 analysts in 27 countries. Merrill Lynch is the only firm to place first
in five of the six Institutional Investor research team surveys (U.S. Equity,
U.S. Fixed Income, Latin America, Europe and Asia.) In addition, the firm
ranked first in The Wall Street Journal 1998 All-Star Analysts Survey, and the
Financial News' "Poll of Polls," a summary of nine equity research surveys
from around the world.
If you would like to receive copies of the reports mentioned above, please
contact the respective analyst listed or Susan McCabe, 212-449-0389.
SOURCE Merrill Lynch & Co., Inc.
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http://www.prnewswire.com/comp/555800.html or fax,
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CONTACT:
Research Communications - Susan McCabe,
212-449-0389, or Joanne Tutschek, 212-449-7278, both of Merrill
Lynch & Co., Inc.
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