[118020] in Cypherpunks
Eye Contact
daemon@ATHENA.MIT.EDU (Market-Eye Internet)
Fri Sep 17 17:46:00 1999
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From: "Market-Eye Internet" <wavelengthonline@datastreamicv.co.uk>
Date: Fri, 17 Sep 1999 22:17:33 +0100
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WELCOME to the second edition of EYE CONTACT. This week
sees EYE CONTACT move onto a regular footing.
In this issue we have our regulars, David Schwatz, John
Piper and The View from Hoxton expounding their views on
what happened to the markets this week, where they may be
going and what you can do about it!
In addition, we an exclusively commissioned piece from
first-e, europe’s first ever internet only bank on the
history and future of on-line banking. Internet banking
is coming of age and in the next few months you will all
undoubtedly be offered internet bank accounts - find out
in EYE CONTACT first what this means to you as an investor.
We hope you enjoy Eye Contact and let us know your thoughts
on EYE CONTACT or any Market-Eye related issue at
meiweb@datastreamicv.co.uk.
Regards
Richard Barden
Product Manager, Market-Eye.
http://www.marketeye.co.uk
CONTENTS
1. Market-Eye Internet update
2. The view from Hoxton
3. John Piper - The trader’s report
4. David Schwartz - A historical perspective
5. Internet Banking by first-e
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1. Market-Eye Internet Update
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As some of you will have seen, we had some gremlins in our
BT lines on Tuesday. Firstly, let me apologise for any
inconvenience this caused. We are spending a great deal
of time, effort and money on bolstering our communications
infrastructure to prevent this recurring, so please rest
assured on this subject.
We are currently in discussions with some exciting
contributors about having their views on the markets and
trading appearing exclusively on market-eye. We hope to
announce the first of these contributors appearing in the
next fortnight.
The Eye to Eye forum has been buzzing lately as the recent
market volatility has thrown up a whole of investment
opportunities. Have a look at the best forum on the web for
the serious investor and see how we can all help each other
to invest better.
free Investor Service users :
http://www.marketeye.co.uk/scripts/forum/
Premium Service users :
http://www.marketeye.co.uk/pscripts/forum/
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2. The view from Hoxton
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By Jamie Chisholm, Senior Research Specialist at
Primark First Contact Jchisholm@datastreamicv.com
I think the word is ‘indecisive’. Markets in the UK and US
appear to be range bound - held up by earnings forecasts,
yet held back by interest rate concerns. Since the last
‘Hoxton’ the Bank of England, much to everyone’s surprise,
has raised the cost of borrowing by 0.25% to 5.25. It
appears many investors expect rates to go significantly
higher judging by the bets being placed in the Short
Sterling contract trading on Liffe. Here the talk is of
interest rates in June 2000 of around 6.6%. Meanwhile in
the US, where the Fed has also placed rates at 5.25%,
expectations are for credit to cost 6% by next June. It
appears the market still perceives the UK as having the
greater propensity to inflate!
Some markets have performed well over the summer. In
particular the FTSE Small Cap which has risen since the 1st
of May by 7.64%, while the FTSE100 has fallen 7.82. This
appears to have been primarily due to buy-out and take over
activity - actual and mooted. Within this sector ‘Techs’
continue to shine and with this in mind we shall create our
own Hoxton Internet Index.
Hoxton Internet constituents will be:
Voyagerit.com
Startit.com
Sports Internet
Netvest.com
Netbenefit
Gameplay.com
Exchange Holdings
Affinity internet
Freeserve
Let’s see how the Brits do compared to the established
US dot coms! If you can think of any other stocks to add
which match the criteria - let me know.
Story of the Week?
Continued consolidation by the large financial institutions.
Now even the previously cosseted Italian behemoths face a
good shake up as Generali goes hostile with INA. This
process seems certain to continue in all major regions as
banks and insurance companies seek global coverage and
extra firepower. Place your bets.
Speak to you soon.
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3. The Traders Report
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By John Piper.
Catch up on John Piper’s latest report and his unique view
of the markets, exclusive to Market-Eye at
http://www.marketeye.co.uk/free/johnpiper/fullarticle2.asp?id=29
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4. A historical perspective
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By David Schwartz.
Read David Schwartz’s latest thought provoking report,
"September 16 - 23: Poor Profit Prospects" at
http://www.marketeye.co.uk/free/davidschwartz/fullarticle.asp?id=49
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5. Internet Banking
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By John Kelly, Marketing Manager, first-e.
Internet banking is currently undergoing a period of rapid
growth on a worldwide scale with an increasing number of
users around the world choosing to conduct their financial
affairs online.
Although on-line banking is a phenomenon, which has been
around in various formats for almost a decade and a half
in the US, it was not until early 1996 that it began to
materialise as a realistic method of personal banking.
Today, more than 5% of the US population use some form of
Internet banking, with this figure expected to top 20
million US users within four years.
Retail Banking has been virtually unchanged in the UK for
the last 25 years despite the emergence of various new
choices for consumers - most notably telephone banking
organisations such as First Direct.
Admittedly, many UK banking establishments have began to
introduce new banking services over the last two years
from telephone banking to PC and also Internet banking.
Banks such as the Woolwich are also researching the
viability of offering Internet banking through emerging
channels such as Interactive Digital Television and kiosks.
Nevertheless, up to a few years ago, consumers were
statistically more likely to get divorced than to change
their bank.
Telephone banking has had some impact on the banking industry.
Consumers are now aware of the significant benefits it offers,
particularly access and flexibility. More importantly, as these
telephone businesses become more accepted by consumers as quick
and easy lifestyle enhancers, many of the issues which initially
dogged the industry - such as security and reliability - have
faded away.
The runaway success of Freeserve and other ISPs offering free
services have helped the Net to become accessible to virtually
every household in the UK. Almost 11 million UK citizens are now
on-line and the Internet banking model in the UK will probably
mirror the trends set in the U.S. and Europe (where the number
of retail Internet banks in Europe has doubled in the last six
months alone).
Transactions carried out over the Internet cost less than one
percent of the equivalent transaction in a branch office.
However, to date only a small percentage of the cost benefit has
been actually passed on to consumers. This is unlikely to happen
as long as banks are either burdened with the cost of staffing
and maintaining large call centres, or are forced to maintain
costly branch networks and ageing IT structures.
However, the arrival of true internet banks like first-e
http://www.first-e.com/index.html?i
means that internet banks can now deliver some real benefits,
including 5.65% interest AER(*) on its savings account and no
charges for normal banking services.
By the end of this year first-e will offer a full portfolio of
banking products on-line, including a current account and
investment/ trading account facilities. The retail banks will
some have some real pause for thought then.
Find out more about first-e at
http://www.first-e.com/index.html?i
* AER (Annual Equivalent rate) - A notional rate that
illustrates the gross rate as if paid and compounded on an
annual basis.
How will internet banks affect traditional banking stocks?
Check on Market-Eye Portfolio - we will even email you a daily
round up of your portfolio. See a demonstration of the premium
service to see how portfolio can help you :
http://www.marketeye.co.uk/free/premiumdemo.asp
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