July 20 - European shares ease off four-month highs and Spain's borrowing costs climb back above seven percent, despite the expected approval of a bank bailout plan later in the day.
European says -- shy of full month highs investors pausing for breath after a four day rally. -- -- General Electric and is up at 2.5 percent increase in second quarter profits. Solid demand in the US offsetting weakness. In Europe. Joining me straightaway throw some light -- outlook for the equity markets is Tiffany Mason have. Head of global equities. Not to assured us that there's any thanks very much for joining us that today cup without a reasonable run recently what's in your opinion courses the next move up -- down as it concerns about Spain all the earnings in general. I think you earnings being pretty much discounted. In terms of people expecting -- -- really bad set of earnings and actually which you're seeing is some stocks going up. On the earnings -- all bad but not as bad as people expect it's I think we have a -- and we keep going on there. Not Canadian terms of Spain what's gonna matter very much used his speed of disbursement. The bailout fall for the banking system and can be as well hard to bond deals have been -- performs so this is really important to watch them. What about global companies if you -- if you stand back if you can. All of them clearly showing some effect of the eurozone -- that all US companies anymore immune from the month that actually live statement based in Europe. What you know for us as a global stock pickers which we -- -- -- more than a piece of Hastings is -- earnings are coming from. So if you are global companies listed in the US and you do a big part of your business in Europe you going to be affected the same way a European company might be affected. All they said we have seen from US companies have pretty good set of results all -- as they've been able to mitigate. By a domestic economy that's film quite well relative to the rest of the world. So do you expect the European earnings -- jobs he really get into and that running station next week to week to be similar in tone. I think it's gonna be very patchy I think that what we have to do is to look at -- those earnings compared with federations. In some sectors like energy and in some cases materials. We had back to federations that -- -- last seen in the fourth quarter 2008 so again it's not so much talk bout they gonna be. That call but -- they have vs what people expect and -- -- patients so all in all it's a stock by stock you know exercise. I'm Dolly back on the defensive generally just putting our money at the defensive center and Howell not. I think what you want to keep is about his portfolio with a very very disappear and aptitude with regards to trading. Take a bit of money out of -- performance putting money into your under the performance. And clearly in those that case of the cyclical stocks who might be back to fourth quarter 2008. Investigation may be stop talking up a little bit. And assuming what about some -- but says that does that and and strategy as you just mentioned assuming the banks -- somebody else. Very wary of what what weight you put your money now to get the returns that you that you really need to get. I'm still it quite underweight financials I do not have any commercial financial banks. I'm still quite comfortable with some of the -- on US names as well as some of the Asian names. And in Europe as I said I'm very cautious still. OK that's it thank you very much and because that obviously amazement that true this that's it for now join us that this time each week that the market pulse. A snapshot of what's moving on financial markets and why. I'm Nigel Stephenson this is what is.