in europe, mosof the companies wee investing in do have a more global outlk aspposed to being focused within the eupean comme community. >> pa: what industriesare your favorites and why? >> one area we find very attractive right now is the technology area. this isan area being a value investors don't have an opportunity tonvest in frequent. right now the valuaons loo very good. this group undperformed in the markets the last 1 years. i think we have a nber of stocks we like one of whh is taiwan semiconduct manufacturing. this is listed on the big board simple tsm. world leader and semiconductor manufacturing. great technology. great balance sheet. ca in excess of debt, 5% dividend yld. very, very strg competor in all its maets. we look to have this company growing nicely i the next few years. >> paul: ok. another industryou like? >> tecommunications is one which s been a little under the radar over the last few mont but we think it still offers very goodvalue, escially on a total return basis. many stocks have strong balance eets, good dividend yields. one we likeis telefonica in spai

no ask yourself a ye from now when the deficit outlk thate're discussing he becomes the univeal vw what the public reaction will be. i spect it will be nsiderably more adverse an we saw in last month's poll a there will be a lot of pressure on the congres, for example on the esident and so forth, to do sometng about it. and this is th conundrum you discussed the beginning. the economy ll be weak and in macroecomic theory one suld not withdraw stimulu at a time when the ecomy is that we. but the public may be and/or e financial markets may be demandg it. and how will the handle that? that's why i sayt's... the litical equivalent of gettysburg. rose: i'll come back to that point interms of what theyan in terms of the political equivalent. t is there nothing the administration can d to make the economic recovery faster? >> relatively little. >> rose: dothey recognize tt? >> well, as we discussed a minute ago, there's a debate that's brokeout in theast really 4 to 7 hours about a send stimulus. we had a roughly $0 billion, $787 billion stimulus passed, as weell know, in the early days of th

the outlk, fdr makes a good play here, the second quarte going to be noy. e we going to get a good picture of finanals gog forward in termsf beyond the past quarter? >> i think a lot of us driving the story is l provisions. what is the credit quality is it continued deterioratio >> unemployment wnr higher? >> it's not good for any consumer loans they have outstanding and big credit cd portfolios at ba of america and jpmorgan which goldmanfor exame, doesn't have much exposure. they suld have commercial real estate exposure where a loof banks have overlapping same credit issues there. that's goingo be iortant which is why i come jpmorgan as bellwether. >> all of america is watching in awe. general motors promisi that the fallen giant will be reform and business is as usual. th is ov. what does thatn for the industry and the econo as a whole? phil lebu, our reporter joins us from outside of gm's headquarters in deoit. it's interesng they're trying lose a chapter on a compan that's not knownor acting very quickly inhe past. >> it . the fact thathey believe they

. >> suzanne: terpillar's latest results weret much to write ho about but it's improved outlk helped boost the market. coming up, a look at what th latest flood of rnings says abouthe economy. >> sunshine ishe best disinfecnt and it will discoura and deter bad bevior. >> paul: the special insctor general overseei the $700- billn tarp bailout fund tells wmakers transparcy is needed now. >> suzannethen, apple shines, posting a 15% jump in profs as i-phones and mac computs continue to fly off stor shelves, even in aecession. >> pau i'm paul kangas suzanne: and i'm suzanne pratt. sue gharib is off tonight. this is "nightly busins report" for tuday, july 21. "nightly business port" is madpossible by: this pgram was made possible by conibutions to your pbs station from viewers likyou. thank yo 7//& >> suzanne: od evening everyo. the federal reserve is not de yet helpg to fix the u.s. economy, that is. that was chairman bebernanke's messagfor congress today, saying t fed intends to keep interest rates low and cret easy for quote an extended period. bernanke said it'she right licy, even thou