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To: Sam Citron who wrote (65723)	6/30/1999 4:55:00 PM
From: Glenn D. Rudolph	Respond to of 164684

FOCUS-French raider Arnault gets Internet fever By Kevin Drawbaugh LONDON, June 30 (Reuters) - Bernard Arnault, one of Europe's most aggressive corporate raiders, launched a multi-million dollar Internet investment firm on Wednesday that puts him at the forefront of the continent's booming e-commerce sector. Europ@web will be capitalised with 500 million euros ($516 million) from Arnault's personal fortune through his privately held Group Arnault, but it may bring in other investors in future and eventually go public, Arnault told Reuters. The fund's holdings already read like a Who's Who of the Internet, including equity stakes in such established and rising Web stars as eBay Inc. <EBAY.O>, Cisco Systems <CSCO.O>, 1-800-FLOWERS, Datek Online, BOO.com, Webvan and e-loan. To each of these investments and others to follow, Arnault said he hopes to bring expertise in Europe and in building brands -- both of which will be important to the future of the so far largely American and under-branded e-commerce industry. "One goal is to help U.S. companies," Arnault said. He added, "We have a special knowledge of marketing brands and, in the future, Internet and e-companies will have to build brands for themselves. In this area, we can help." Arnault is chairman of LVMH <LVMH.PA>, the world's largest luxury goods company with an unrivalled stable of premier brands, including Louis Vuitton, Givenchy, Christian Lacroix and top champagnes Dom Perignon, Moet & Chandon and Veuve Clicquot. The consumer status and trust wrapped up in such prestige names is unmatched to date by the Web's handful of brands. "The Internet is in an early stage of development and there are few brands, but like in other areas, brands will become more and more important to attract customers," Arnault said. "Look at the power of a brand like Yahoo <YHOO.O>. It's strong and itself attracts customers. But a few years ago it was completely unknown," said the restless 50-year-old entrepreneur who ranks as one of France's richest individuals. Beyond bringing branding power to the Net, Arnault said he is also moving ahead nicely on bringing the Net's power to LVMH's core business of selling high-priced luggage, perfume, cosmetics, wines and fashions. In September, LVMH will launch sephora.com as a beauty products website. "We hope that instantly it will become the largest beauty site in the world," Arnault said. "We have other projects for the future which would involve LVMH itself that we will reveal before the end of the year." LVMH is well ahead of other luxury goods companies in exploring the Internet, although Gucci Group <GUC.N> <GCCI.AS> is looking at it, as well, analysts said. "I don't think the Internet will ever be appropriate for ready-to-wear or leather goods," said Morgan Stanley Dean Witter luxury goods industry analyst Claire Kent, adding that consumers prize the cache and service of shopping in luxury goods stores. But for items purchased routinely by some well-heeled consumers -- perfume, watches, Gucci loafers, polo shirts -- the Internet may be an important growth area, she said. Group Arnault, vehicle for many of Arnault's activities, said in April that it had allied with UK retailer Kingfisher <KGF.L> to launch libertysurf.com, a free Internet access service in France. Arnault said the venture is already the largest European free Internet access service outside Britain. Success on the Net could help salve the wound that Arnault suffered earlier this year when a Dutch court derailed his drive to take over Gucci. The protracted corporate battle continues, he said on Wednesday, vowing that his lawyers still see hope. Whether e-commerce becomes a major priority for LVMH is uncertain and may not matter for now. The company is bouncing back from last year's Asian economic slump. Arnault said second-quarter momentum is strong and financial results due out early in July "will be a goo...

To: Sam Citron who wrote (65723)	6/30/1999 7:10:00 PM
From: Rob S.	Read Replies (1) \| Respond to of 164684

Oh come on . . . KIS is fun to have around to poke fun at. One of these days he will be right - everyone guesses right sooner or latter. It's not necessary to read his posts, believe him or agree with him. ----- Amazon has been building a strong base over the past several days. It double bottomed higher and the accumulation v. distribution indicators solidly reversed the negative trend prior to the initial bottom around 95. A nicely bullish chart pattern is now emerging although the mood of investors remains nervous as witnessed by the pull-back from the days high and substantial resistance around 135 and higher can be expected. The fed has taken a less than feared stance - raising 1/4 point but turning to a neutral bias. Oil prices have probably stabilized and food prices probably will be stable or modestly down. Labor is the highest inflationary ingredient but is not likely to spur rapidly rising prices because of continued heavy competitive forces (including Internet created price deflation). Going forward, Greenspan (or anyone else) can't quite figure out yet what effect will be of the "comunications technologies" as an efficiency enhancer and deflation mechanism. One posible scenario will be accelerated rapid growth due to robust acceptance of these technologies and their stimulation of trade followed by a collapse of pricing. I think that collapse scenario is possible but it is not likely for at lest a few years, IMO.