Europe’s Cheap Stocks Set For A Long Catch-up Rally

The amount of money invested in European large-cap value equities was 24 billion euros ($32.49 billion) by the end of August, half as much as five years ago, Morningstar data shows. “The common theme is catch-up by lagging assets. That’s a late-cycle theme,” said Christopher Potts, head of economics and strategy at Cheuvreux. “We’re not going to do it in six months. If you’re talking about the recovery of value in Europe, it’s a five-year idea. It took five years to kill that view and it’s going to take years for it to come back.” In 2011, the only other time in the past decade when the price/earnings gap between growth and value was as wide as it is now, the broad market retreat started around three months after that gap began to close. That could be an indicator of when the broader market rally may run out of steam this time although not necessarily. In 2000 the gap between growth and value stocks was narrow yet the overall market downturn did not begin until around five months after the gap began to close. In the past five years the MSCI Europe Value Index has underperformed growth by nearly a quarter, in the run-up to the 2000 market peak, the gap between the two was less than 5 percentage points. SMALLER POOL In the current market rally – European stocks rose in 14 of the last 16 months and the STOXX Europe 600 index is up by around a third in that time, trading near five-year highs – the pool of obviously cheap, “deep value” stocks for investors to choose from has already contracted. The number of STOXX Europe 600 companies trading below their 10-year average price/earnings ratio has halved to around 270 over the past two years. On the flip side, investors’ aversion to companies exposed to the economic cycle during recent years has left many well-established companies with healthy balance sheets trading at lower valuations than the overall market. In these cases, the distinction between value and quality stocks has been blurred.

Hadoop Summit Europe 2014 Marches Toward the Data Architectures of Tomorrow

& LONDON–(BUSINESS WIRE)– Hadoop Summit Europe 2014 , the European extension of the original and worlds largest Apache Hadoop community conference, today announced the call for papers. Hadoop Summit Europe brings together the leading Hadoop minds and ecosystem vendors from across Europe to discuss the open source big data platforms role in the data architectures of tomorrow. The second annual event will be held at theBeurs van Berlagein Amsterdam on April 2-3, 2014. Click to Tweet : Hadoop Summit Europe 2014 marches toward data architectures of tomorrow. Call for papers now open. #hadoopsummit #hadoop Focused on accelerating the next-generation data architecture built on enterprise Apache Hadoop, Hadoop Summit Europe will feature networking and shared best practices between all levels of the IT landscape, including a vibrant community of architects, developers, data scientists, data professionals and solution providers. The event will feature two full days of content and five tracks, all designed to arm attendees with the know-how to successfully harness the power of big data with Hadoop, driving their business into the next level of the information age. Apache Hadoop continues to proliferate across Europe as enterprise organizations and leading IT vendors realize first-hand the tremendous business impact of the open source big data platform, said Dave McJannet, vice president of marketing, Hortonworks. Building on the success of previous Hadoop Summit events in both North America and Europe, Hadoop Summit Europe 2014 will feature nearly double the number of sessions as last years event and energize the community with new ideas and real-world case studies for making Hadoop the cornerstone of the data architecture of tomorrow. We look forward to seeing you there! Hadoop Summit 2014 attendees will hear and share use cases and success stories, best practices, cautionary takes and technology insights, including discussions on whats next for Apache Hadoop. The Hadoop Summit tracks are divided into five key topic areas including: technical deep dives from Hadoop committers; the future of Hadoop with projects such as Apache YARN; data science using Hadoop; deployment and management of Hadoop operations; and using Hadoop with existing applications to derive business value from data. Call for Papers Now Open Hadoop Summit Europe 2014 continues in the tradition of previous Hadoop Summit events, making submitted speaking abstracts available for public voting on which sessions they would like to see most at the conference. The leading vote-getters in each of the five tracks will be automatically added to the agenda. In addition, abstracts will be reviewed and selected by a committee of industry influencers from a number of different companies. All selected speakers will be provided a free, all-access pass for Hadoop Summit Europe.