Remove mouse and click highlighting
After you make a recording you'll notice in the playback that there is a yellow circle (halo) around the mouse as it moves and that there are flashes of blue or red when you click the mouse. You can remove these indicators if you like.
Hide the cursor from the entire recording
In the Video Editor, you will notice a Cursor control under Show on the right side of the Video Editor.
You can clear the check box next to Cursor to remove it completely from your recording. You can also click 
to display options for which mouse actions to display in your recording and which color the halo will be.
Hide the cursor in sections of the recording
You can hide the mouse cursor for a section of the recording you select. Click on the timeline where you want to start hiding the cursor. Click Tools and then select Hide > Hide Cursor.
Drag the bar along the timeline to hide the cursor in the highlighted section.
The mouse cursor will be hidden in the selected section. You can repeat this process for other areas of the recording where you want to hide the cursor.