One thing can be said for 1999 – it was an unprecedented year for movement of analysts, sales people and traders across Asia, Japan and Europe.

Turnover was huge, with established teams and both seniors and juniors shifting jobs in a climate where gazumping of offers and multiples of existing packages were common. Almost all investment banks were hiring last year. Mike Battle, head of global research at Dresdner Kleinwort Benson, agrees: "It has been unprecedented and across all markets. It is the backlash of consolidation of the industry and equally the buoyant markets.' One European head of equities adds: "There have been bidding wars like you wouldn't believe and some houses, nursing the wounds of team losses, really did just open their cheque books. this often meant buying people out of expensive lock-ins. Many very senior people also moved firms, but in the heavy consolidation of 1998 that is probably to be expected.' Indeed, 1999 was a quieter year for consolidation than many anticipated. The most interesting but drawn-out merger soap was between Banque Nationale de Paris, Société Générale and Paribas. But the fight, which ultimately ended in BNP securing Paribas' business without getting its hands on SG, caused huge unrest at Paribas. More than 40% of the 650-plus team worldwide left in the first seven months of 1999 as confidence plummeted. SG rebounded in December by acquiring a 3.8% stake in the recently privatised Credit Lyonnais SA. In June, Deutsche completed its difficult takeover of BT Alex. Brown, giving it the largest European equities research department of any firm. Surprisingly, BT faces made up almost 40% of the research team but the fall-out from both sides helped boost other houses' rankings. Now the storm has cleared and Deutsche is keeping its head down and getting on with running the business. Russell Duckworth, head of research, wants the pan-European equities research team to be ranked number one by the year end. Meanwhile, not all are convinced that Deutsche has backed the right horse in its bid to have a US presence. This remains an issue for many houses, such as Warburg Dillon Read, Dresdner Kleinwort Benson and Commerzbank. As one global head of equities says: "No European firm has penetrated the US big time. But the Americans have come over and dominated. Some European names will be looking to become bulge bracket, maybe through acquisition.' The super league of brokers in European equity trading and research is dominated by Merrill Lynch, Warburg Dillon Read, Morgan Stanley Dean Witter and Goldman Sachs. This year the likes of Dresdner KB, Deutsche Bank, JP Morgan, Credit Suisse First Boston, Lehman Brothers, Salomon Smith Barney and even fledgling operations of Commerzbank and Donaldson, Lufkin & Jenrette will want a share. The success of Commerzbank and DLJ has encouraged others to launch in Europe. Bank of America also joined the new entrants this year. It launched a European equities business in September with some high-profile hires. Although initially selling the bank's US equity and trading product to UK and European investors, it will be a name to watch, particularly if a European product emerges on the scene. Sanford C Bernstein & Co, the US research and investment management firm, signalled its intentions for a European set up in September. Little has been heard since, but the company has one of the best research products on Wall Street. Meanwhile, ING Barings, owner of Williams de Broë, which had a rocky year, made its first big hires as part of its plans to build a pan-European equities business. It picked up the sales and sales trading teams from Rabobank, which closed its equities business in July. ING Barings also launched a Latin American equities business – for the third time. However, the bank's long-awaited E10bn bid for Credit Commercial de France, which owns UK-based Charterhouse Securities – itself currently in negotiations to buy UK rival Sutherlands – was abruptly withdrawn in December. Although CCF quickly reacted by promising to remain independent, many doubt its survival in the current form. DLJ started building its European equities operation from scratch at the end of 1998 and in September it launched a portfolio trading service in Europe. DLJ ultimately wants to be a bulge bracket global player and Hector Sants, its dogged head of equities, still sees a gap for a bulge bracket US research-led broker in the European market. Meanwhile, the two-year-old equities business of Commerzbank completed the final stage in the creation of its global equities research coverage. Much money has been spent by Mehmet Dalman, global head of equities, to strengthen the division, particularly on the research side. Last year the ambitious newcomer leapt into the top 15 research houses in the UK. However, Commerzbank is on many people's list for being swallowed up. Lehman Brothers' headcount has grown 20% year-on-year and further additions to equities research and investment banking are planned. The focused team, which has been boosted by many high-profile senior faces, including the recent arrival of Xavier Rolet, deputy managing director responsible for trading and risk at Dresdner KB, is ambitious. It has steadily risen up the rankings in continental Europe, but many question whether Lehman will need to go through an acquisition or joint venture to make it. Credit Suisse First Boston, following the acquisition of BZW's UK and European equities and corporate finance arms in 1997, surprised many by leapfrogging Merrill Lynch and Warburg Dillon Read as the biggest trading firm in UK equities for 1998, according to confidential market share figures from the London Stock Exchange. It is steadily hiring across Europe and globally.JP Morgan's equities business, under the leadership of Ron Dewhurst, concentrated on introducing strong UK coverage to become truly pan-European. Dewhurst leaves this month to join JP Morgan Investment Management in the US, but the robustness of the team across the division leaves the firm in a strong position for 2000 as it builds on its global reach. It also plans to establish a European portfolio trading desk. Dewhurst echoes the views of many: "We must stay disciplined and not be all things to all people. You have to make money and provide a quality product to your target client base. I want us to be ranked at the top end by our clients, rather than being number one at any cost.' Dresdner Kleinwort Benson has made huge inroads across Europe and the UK over the past 12 months, despite the loss of Nigel Lester, deputy managing director of global equities, early in the year and a number of sales and research names. Like many, DrKB restructured to put its European research into a global context. It has, however, now lost Rolet, who has been credited with much of the firm's success and Alan Yarrow, DrKB's global head of equities, has been moved up to deputy chairman. The investment bank has been given autonomy from the struggling retail operation. Now it needs a management board to give it the flexibility to be more dynamic in going forward into Europe and integrating its product ranges. HSBC Securities had a mixed year. Krishna Patel, chief executive, has injected some much needed discipline into the equities business. Despite this, a number of leading analysts and some key sales names left in 1999. But HSBC is still afloat, and has been hiring over the past six months. Charismatic Jim O'Donnell, former chief executive of HSBC Securities who resigned in 1997 to train for the priesthood, reappeared this year at Salomon Smith Barney as head of European equities. Salomon came second to Commerzbank for the most-improved UK broking product and service last year and, like Commerzbank, has been extensively hiring high-profile people. The recruitment looks set to continue in 2000, and this could be Salomon's year in equities, particularly if high morale is anything to go by. The challenge – despite the primary deal flow – will be to ensure that the price for going up the rankings is worth paying. Goldman Sachs created a few millionaires in its ranks following its IPO last year, and is now bedding down after all the excitement in a bid to ensure, like Merrill Lynch, Warburg and Morgan Stanley, that it does not loosen its grip on the market. Meanwhile, Merrill Lynch is leading the way, at least vocally, in the move to embrace new technologies and tackle the threat to its traditional business. Merrill hopes its online plans for the institutional and retail business will position it ahead of the pack in Europe. But Merrill was not alone. Information technology was a major focus for most houses last year – having got through the euro launch and transition relatively smoothly. Almost all have been exploring ways of using the internet and intranet for the dissemination of information internally and externally. Having sown the seeds of IT development in 1999 by spending billions of pounds, many expect an explosion this year in new technologies once houses have weathered any Year 2000 compliance problems. Those without a plan may get left behind, particularly with disintermediation of securities trading threatening to marginalise global equity broking houses' business. Others have also decided not to cover the waterfront. Albert E Sharp's niche UK broking operation was boosted by Edmond Warner, the former head of European equities at BT Alex.Brown, who is now chief executive at the Birmingham-based broker. Sharp, together with thriving small company broker Teather & Greenwood and others, is banking on building a niche product – believing there is a vacuum in the UK equity market as most securities firms are moving global or pan-European. JP Morgan's Dewhurst agrees: "There will always be demand for local houses as much as for regional and global houses. But the strategy must be right so that you actually get paid for it.'