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

“We don't think that Greece will actually be able to deliver on the austerity measures they're promising,” Kashkari said today in an interview on Bloomberg Television's “InBusiness with Margaret Brennan.” “Risks in Europe remain, so we're being very selective.”

Europe's approval of a 130 billion-euro ($172 billion) rescue package for Greece, the second such bailout since 2010, doesn't solve 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 are leading Pimco to buy stocks only selectively, he said.

Kashkari said he likes Ensco Plc, a London-based offshore drilling company, and farm-equipment maker Deere & Co., based in Moline, Illinois, because it sells to emerging-market consumers.

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

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

Bloomberg News