THE GLOBAL

AN ERA OF TUMULTUOUS CHANGE: FROM JAPANS BUBBLE TO THE TRIUMPH OF THE NET

1989
The Japanese rule. Booming Tokyo real estate prices drive Japanese banks to the top of the rankings. No one predicts an end to Japans prosperity. Elsewhere in Asia, though, some are not feeling so secure: Hong Kong stocks lose a quarter of their value after the June 4 Tiananmen Square massacre in Beijing. In America, meanwhile, the great takeover era is nearing an end: The takeover premium for Northwest Airlines stock reects one of the last, hotly contested acquisition bids. And in Europe, the prospect of a single market in 1992 drives a record wave of mergers.

1990
Japans stock market slides, sending even Tokyos bluest chips into a downward spiral. Europe rises amid predictions of the coming European Decade.

1991
America rises to No. 1 againat least in total market capitalization in New York, which regains supremacy over Tokyo. While investors back away from Japan, U. S. names such as Philip Morris and Exxon become market darlings, along with U.S. drugmakers. One telling ip: retail Sam Walton giant Wal-Mart Stores surpasses mighty Toyota Motor in market value. Europes blue chips feel the bite of recession.

German unication sparks Europhoria.

C o nt i n u e d

TOP TEN BY MARKET CAPITALIZATION

1. NIPPON TELEGRAPH & TELEPHONE/Japan 2. INDUSTRIAL BANK OF JAPAN/Japan 3. SUMITOMO BANK/ Japan 4. FUJI BANK/ Japan 5. DAI-ICHI KANGYO BANK/ Japan 6. IBM/ U.S. 7. MITSUBISHI BANK/ Japan 8. EXXON/ U.S. 9. TOKYO ELECTRIC POWER/ Japan 10. ROYAL DUTCH/SHELL/ Netherlands/U.K.

$163.86 71.59 69.59 67.08 66.09 64.65 59.27 54.92 54.46 53.46

1. NIPPON TELEGRAPH & TELEPHONE/Japan 2. IBM/ U.S. 3. INDUSTRIAL BANK OF JAPAN/Japan 4. ROYAL DUTCH/SHELL/ Netherlands/U.K. 5. GENERAL ELECTRIC/ U.S. 6. EXXON/ U.S. 7. SUMITOMO BANK/ Japan 8. FUJI BANK/ Japan 9. TOYOTA MOTOR/ Japan 10. MITSUI TAIYO KOBE BANK/ Japan

$118.79 68.89 67.61 67.14 62.54 60.00 55.81 53.17 50.44 49.80

1. NIPPON TELEGRAPH & TELEPHONE/Japan 2. ROYAL DUTCH/SHELL/ Netherlands/U.K. 3. EXXON/ U.S. 4. GENERAL ELECTRIC/ U.S. 5. INDUSTRIAL BANK OF JAPAN/Japan 6. PHILIP MORRIS/ U.S. 7. IBM/ U.S. 8. FUJI BANK/ Japan 9. MITSUBISHI BANK/ Japan 10. DAI-ICHI KANGYO BANK/ Japan

$103.00 72.91 72.81 67.45 64.18 63.33 60.77 58.68 58.08 57.38

THE GLOBAL 1000: 1989-1999

500 400

DOW JONES INDUSTRIAL GERMANYS DAX NIKKEI 225

300

THE NIKKEI DECLINED 48% FROM THE START OF 1989 TO THE END OF MAY 1999

200 100 0

JAN. 89

JAN. 90

JAN. 91

JAN. 92

JAN. 93

JAN. 94

JAN. 95

JAN. 96

JAN. 97

JAN. 98

JAN. 99

INDEX: 1989=100

1992
Britains once-ailing corporate giants surge, racing to catch up with Americas world dominators. Outts such as drugmaker Glaxo Wellcome, brewer Guinness, and consumer giant Grand Met draw investor dollars as Britains market capitalization rises 26%. Still, the U.S. leads the pack with the most companies and the most dollars in the Business Week Global 1000. Recession slams old standbys such as Exxon, Guinness: a good year Philip Morris, and General for the black stuff. Electric.
COMPANY/ COUNTRY MARKET VALUE BILLIONS*

1993

1994
As recovery takes hold in the U. S., European companies still struggle with middling economic performances. But all across the world, privatization takes root, with companies such as Lufthansa becoming poster-boys for the trend. Declining interest rates help stir renewed excitement about Japan.

1995

1996
Capping the return of U. S. equities, General Electric takes the No. 1 spot in the Business Week Global 1000. U. S. companies ll six of the top 10 slots, ranked by market capitalization. Not all is rosy, though: Apple Computers slide gathers momentum, even as Microsoft, Sun Microsystems, and upstart Netscape Communications make names for themselves. In Asia, the boom is at its peak. Telecom operators, banks and real estate developers in Singapore and Hong Kong surge in value.
COMPANY/ COUNTRY MARKET VALUE BILLIONS*

1997

1998
Deals dominate, especially across international borders. Mergers such as, DaimlerBenzs purchase of Chrysler, and Northern Telecoms acquisition of Californias Bay Networks grab investor attention. Technological advances drive up the values of Microsoft and Dell Computer. The Japanese liberalize, giving limited access to foreign outts such as Merrill Lynch.

1999
The Net reshapes everything, Net players such as Microsoft, Intel, and Cisco Systems claim top billing in investors minds. But investors the world over rush to put money in their stock markets: Bill Gates Even Japans markets soar, while some observers warn that European and U.S. markets are too superheated to continue their pace. The euro falls at, but peace breaks out in Europe, after NATOs assault on Yugoslavia ends. Hopes revive for renewed growth on the Continent.
COMPANY/ COUNTRY MARKET VALUE BILLIONS*

Lou Gerstner to the rescue.

Recessionary gloom prevails. Europe especially feels the pinch, with political disarray, weak currencies, and depressed markets. Once high-ying American stalwarts, such as drugmaker Merck, are hammered. Even though Japans economy still looks shaky, investors turn to it again, hoping for an upturnjust one of several episodes of misplaced optimism.
COMPANY/ COUNTRY MARKET VALUE BILLIONS*

Lufthansa going public, taking wing.

Corporate America again rmly leads the way for investors. Outts such as Exxon and AT&T cement their leads in market capitalization. Meanwhile, Japans companies keep losing market value as their prots slide. Nonperforming loans slam Japanese banks particularly. In Europe, French and German outts suffer under at markets. But Europebased global marketers, like Unilever and LVMH, benet from the boom in emerging markets. And Germanys Hoechst takes over U.S. drugmaker Marion Merrell Dow.
COMPANY/ COUNTRY MARKET VALUE BILLIONS*

Yamaichis Shohei Nozawa weeps.

Japans slide accelerates, as its companies make up just 16% of the market cap in the Business Week Global 1000down from 39% in 1990. Crisis at rms like Yamaichi shake the Tokyo market. U.S. high-tech titans, such as Microsoft and Compaq Computer, capture investors fancy. In Europe, deregulation staggers along with high jobless rates.
COMPANY/ COUNTRY MARKET VALUE BILLIONS*

Chronos concept car: A prize of the DaimlerChrysler merger.

1. ROYAL DUTCH/SHELL/ Netherlands/U.K. $77.82 2. NIPPON TELEGRAPH & TELEPHONE/Japan 77.52 3. EXXON/ U.S. 75.30 4. PHILIP MORRIS/ U.S. 71.29 5. GENERAL ELECTRIC/ U.S. 66.00 6. WAL-MART/ U.S. 60.82 7. COCA-COLA/ U.S. 58.47 8. MERCK/ U.S. 58.41 9. AT&T/ U.S. 55.85 10. IBM/ U.S. 51.82

1. NIPPON TELEGRAPH & TELEPHONE/Japan $140.52 2. AT&T/ U.S. 82.40 3. ROYAL DUTCH/SHELL/ Netherlands/U.K. 81.59 4. EXXON/ U.S. 81.35 5. GENERAL ELECTRIC/ U.S. 79.34 6. MITSUBISHI BANK/ Japan 73.56 7. SUMITOMO BANK/ Japan 65.97 8. WAL-MART/ U.S. 64.07 9. INDUSTRIAL BANK OF JAPAN/Japan 63.21 10. SANWA BANK/ Japan 61.19

1. NIPPON TELEGRAPH & TELEPHONE/Japan $128.94 2. ROYAL DUTCH/SHELL/ Netherlands/U.K. 91.93 3. GENERAL ELECTRIC/ U.S. 84.94 4. MITSUBISHI BANK/ Japan 77.05 5. EXXON/ U.S. 75.92 6. TOYOTA MOTOR/ Japan 75.06 7. AT&T/ U.S. 73.87 8. INDUSTRIAL BANK OF JAPAN/Japan 73.25 9. SUMITOMO BANK/ Japan 67.53 10. FUJI BANK/ Japan 66.99

1. NIPPON TELEGRAPH & TELEPHONE/Japan $129.01 2. ROYAL DUTCH/SHELL/ Netherlands/U.K. 107.63 3. GENERAL ELECTRIC/ U.S. 98.24 4. EXXON/ U.S. 88.65 5. AT&T/ U.S. 80.30 6. COCA-COLA/ U.S. 78.63 7. TOYOTA MOTOR/ Japan 72.43 8. MITSUBISHI BANK/ Japan 68.75 9. INDUSTRIAL BANK OF JAPAN/Japan 68.34 10. FUJI BANK/ Japan 66.40

1. GENERAL ELECTRIC/ U.S. 2. ROYAL DUTCH/SHELL/ Netherlands/U.K. 3. NIPPON TELEGRAPH & TELEPHONE/Japan 4. COCA-COLA/ U.S. 5. BANK OF TOKYOMITSUBISHI/Japan 6. EXXON/ U.S. 7. AT&T/ U.S. 8. TOYOTA MOTOR/ Japan 9. PHILIP MORRIS/ U.S. 10. MERCK/ U.S.

$137.34 128.29 115.70 115.07 110.29 105.27 99.72 85.78 82.09 78.62

1. GENERAL ELECTRIC/ U.S. 2. COCA-COLA/ U.S. 3. ROYAL DUTCH/SHELL/ Netherlands/U.K. 4. NIPPON TELEGRAPH & TELEPHONE/Japan 5. MICROSOFT/ U.S. 6. EXXON/ U.S. 7. INTEL/ U.S. 8. TOYOTA MOTOR/ Japan 9. MERCK/ U.S. 10. PHILIP MORRIS/ U.S.

$198.09 169.86 168.99 151.57 148.59 147.15 124.08 108.67 108.49 106.58

1. GENERAL ELECTRIC/ U.S. $271.64 2. MICROSOFT/ U.S. 208.98 3. ROYAL DUTCH/SHELL/ Netherlands/U.K. 195.68 4. COCA-COLA/ U.S. 193.53 5. EXXON/ U.S. 172.50 6. MERCK/ U.S. 139.85 7. PFIZER/ U.S. 133.03 8. NIPPON TELEGRAPH & TELEPHONE/Japan 130.91 9. WAL-MART/ U.S. 123.47 10. INTEL/ U.S. 121.16

1. MICROSOFT/ U.S. 2. GENERAL ELECTRIC/ U.S. 3. IBM/ U.S. 4. EXXON/ U.S. 5. ROYAL DUTCH/SHELL/ Netherlands/U.K. 6. WAL-MART/ U.S. 7. AT&T/ U.S. 8. INTEL/ U.S. 9. CISCO SYSTEMS/ U.S. 10. BP AMOCO/ U.K.

$407.22 333.05 214.81 193.92 191.32 189.55 186.14 180.24 174.09 173.87

* NOT ADJUSTED FOR INFLATION. CREDITS: GRAPHICS BY JONI DANAHER/BW, DENISE EDKINS, ALBERTO MENA/BW, JAY PETROW/BW, DAVID RUDES/BW, RAY VELLA/BW; PHOTOGRAPHS BY PATRICK FORESTIER/SYGMA, ROBIN NELSON/BLACK STAR,MARK RICHARD/CONTACT, ANDREW POPPER/BW, DANUTA OTFINOWSKI/MATRIX, D. GOLDBERG/SYGMA, MAINICHI/SYGMA, REBECCA COOK/SIPA, KERMANI/GAMMA-LIASON; DATA: DRI/MCGRAW-HILL, MORGAN STANLEY CAPITAL INTERNATIONAL, BUSINESS WEEK