Pacific Investment Management Co.'s Neel Kashkari, who headsglobal equities at the Newport Beach, California-based investmentfirm, said Greece and Portugal will need additional bailouts.

“We don't think that Greece will actually be able to deliver onthe austerity measures they're promising,” Kashkari said today inan interview on Bloomberg Television's “InBusiness with MargaretBrennan.” “Risks in Europe remain, so we're being veryselective.”

Europe's approval of a 130 billion-euro ($172 billion) rescuepackage for Greece, the second such bailout since 2010, doesn'tsolve the region's sovereign-debt crisis, Kashkari said. While U.S.economic indicators have been improving, risks of further “shocks”coming out of Europe and slowing growth in the emerging markets areleading Pimco to buy stocks only selectively, he said.

Kashkari said he likes Ensco Plc, a London-based offshoredrilling company, and farm-equipment maker Deere & Co., basedin Moline, Illinois, because it sells to emerging-marketconsumers.

“We do think that China will have a soft landing,” Kashkarisaid, citing Pimco's forecast of 7 percent to 8 percent real GDPgrowth in the country. “It's still very strong growth relative tothe rest of the world.”

Pimco hired Kashkari, a former U.S. Treasury official, inDecember 2009 to lead the expansion into equities and reduce itsdependence on traditional fixed-income strategies.

Bloomberg News