Macro outlook: Low growth and low interest rates remain the key risks for financial stocks as central banks run out of ideas. China, Japan and Europe will need more central bank support to manage growth slowdown while there are cracks beginning to appear in the US and UK recovery stories. The rising currency and low growth outlook will drive global investors back to the Australian banks in the short term due to the risk weighted yield premium. The growth and yield to value outlook continues to favour banks and global diversified financials while property stocks look stretched. Preferred picks in Banks: ANZ, NAB. Preferred picks in Diversified Financials: BTT, HGG, MFG, MQG, PTM. Preferred picks in Property Trusts: LLC, VLW. (VIEW LINK)