European Equity Markets to Rise by 14% in 2014, Nomura Says
--> Sees total return of 17%. * Driving force likely to switch to earnings growth rather than multiple expansion * Says earnings growth can come from continued external demand, early signs of some domestic recovery and margin expansion greater than consensus expectations * Over longer horizons, says falling risk premium and flows back into asset class likely to add support; within mkt, retains a pro-Risk and anti-Quality stance * Within Europe, remains Overweight Spain, Italy, Germany, Sweden, and Underweight U.K., Switzerland, Belgium * “Selectively” buys more cyclicals, specifically Airlines, Logistics and selected Capital Goods to be Overweight those sectors * Cuts Insurance, Telecoms to Neutral vs Overweight * Reduces size of Underweight on Healthcare * Main portfolio Overweights in Banks, Asset Managers, Industrials, Airlines, Logistics, Media, Tech * Has zero positions in Mining, Consumer Staples, Utilities * Additions to European Recommended Portfolio: Lufthansa, Ryanair, Deutsche Post, DSV, HeidelbergCement, SKF, Schneider Electric, Novartis, Sanofi, Alcatel-Lucent, WPP * GlaxoSmithKline, Ericsson, Hochtief, Legal & General, TeliaSonera, Reed, ArcelorMittal removed