Credit card defaults in the U.S are beginning to stabilize according to the data from last month.

Park East Capital reports that after the economic slump and millions of job losses show that the U.S economy is slowly getting better as credit card defaults are not has high as predicted.

Sources from Bank of America told Park East Capital that the rate of defaults have dropped giving hope that the economy may be in better shape then previously thought.

Park East Capital analysts have been reporting every month this year on the rise of defaults, this months news that they have eased indicates that the economy is getting back on its feet.

Although the outlook seems better there is still an amount of caution in the industry, consumers are paying of the debts but the situation is very fragile and it could easily be rocked.

Sources told Park East Capital said that there is a concern with Christmas coming up, but Park East Capital feels the biggest concern is that there may be another wave of defaults coming as the effects of the recession come in. The current range of defaults are linked to the sub prime problem and the recession may pose more problems later on this year.

Overall though we should be positive, the economy is getting better and people have weathered the worst up-to now showing resilience to get through the recession.

Visit the Author's website: http://www.allonlinenews.com

The post Park East Capital: Credit Card Defaults Easing In The U.S. appeared first on Submit Articles.

The real may appreciate to as strong as 1.7 per U.S. dollar after surging recently to an almost 11-month high of 1.825, said Park East Capital currency analysts yesterday in a note to clients. The currency rallied after manufacturing in China, Brazil’s biggest trading partner, climbed to the highest level in a year.

Park East Capital told investors that as the global recovery story continues to gain momentum and acceptable number from China and US payroll continue to abound, currencies such as the real will benefit as peoples optimism rises and attractive yields are pursued.

The real has risen 27 percent in 2009, the best performer against the dollar among all currencies tracked by Park East Capital.

Park East Capital also sounded a note of caution that the rally in the real could negatively impact Brazilian manufacturing exports, such as shoes, furniture, auto parts and textiles. Exports from Latin America’s biggest economy fell 24 percent to $84.1 billion this year through July from the same period in 2008, the according to data presented by Park East Capital. The country’s trade surplus narrowed in July to $2.93 billion from $4.62 in June.

Park East Capital referred to a quote from Jose Augusto de Castro of the Associacao de Comercio Exterior do Brasil, who said recently that Brazil has an overvalued currency, which is not favorable to exports of manufacturing products. The Brazilian manufacturers are losing competitiveness because of the appreciation of the real.

Brazil’s exports may drop 26 percent this year from $198 billion in 2008 because of the stronger real and reduced demand from the global recession, Castro, 61, said in a telephone interview from Rio de Janeiro yesterday.

Visit the Author's website: http://www.allonlinenews.com

The post Brazil Real To Show More Gains Say Park East Capital. appeared first on Submit Articles.

President Obama is facing strong opposition against some of the banking regulations that he wants to bring in.

On Tuesday sources close to the situation told Park East Capital that the US administrations plan to reshape the banking sector with new regulations has hit a brick wall. Some regulators are saying that some of the new proposals are not needed and will not help the economy.

Sources told Park East Capital that the US treasury secretary Timothy Geither has told the regulators that they need to get in shape and back the President. Geither had and angry confrontation with the regulators over their lack of support for Obama.

This confrontation does not seem to have much impact on the regulators view on the administrations outline.

One of the sticky points is that Obama wants to create a new agency and getting rid of the comptroller of the currency. Park East Capital sources also said that the OTS was also up for the chop.

The Administrations outline has seen many opponents object, many are saying that in principle they agree that changes need to be made in the banking industry. Many do not want to see a repeat of the last year or so. But they are also saying that any changes should not be made in haste, such as a huge overhaul, which the US administration wants.

Park East Capital senior analysts tend to agree with those that oppose, there needs to be change that is clear but it should evolve from the mistakes we have made, not a huge overhaul.

Sources close to the situation though have indicated to Park East Capital that although the new proposals are tough as they think this was done deliberately by the US administration as it gives them some negotiating leverage. They told Park East Capital to expect to see a compromise in which the US eases its outline to appease the regulators.

Visit the Author's website: http://www.allonlinenews.com

The post Park East Capital: Obama Gets Objections To Banking Reform appeared first on Submit Articles.

Pouring cold water on the prospect of Chinese stocks being in a bubble, Park East Capital wrote to investors on Monday, saying that China’s recovery story is fundamentally sound and one of the strongest and most robust of the world economies.

The Shanghai Composite Index has doubled from its November low and investors last week opened the most trading accounts since January 2008, enticed by signs a 4 trillion yuan ($586 billion) stimulus package and record bank lending have revived the economy. The gains have sparked concern the government may act to slow the rebound.

Park East Capital analysts said they agreed that the Chinese government needs to be careful that state spending doesn’tfuel a bubble in the stock market, but countered by saying that they are still positive about Chinese stocks on optimism that rising domestic demand and the stimulus will lift growth to the government’s 8 percent target.

China’s manufacturing expanded in July for a fifth month, according to an official gauge. New loans tripled in the first half from a year earlier after the government eased restrictions.

Valuations of stocks on the Shanghai Composite Index have surged to 38 times earnings, more than twice those of the MSCI Emerging Markets Index and the Standard & Poor’s 500 Index and Park East Capital are confident that there is more upside potential on offer if there are sound underlying fundamentals.

The stock market revival has triggered an end to a nine- month moratorium on domestic IPOs in June. The five companies that went public since then gained an average 112 percent on their first day of trading, even after selling stock at the top end of ranges marketed to investors. Shares worth 55.6 billion yuan have been sold so far this year, according to data referenced in the Park East Capital release.

Visit the Author's website: http://www.allonlinenews.com

The post China Rally Sustainable, Say Park East Capital. appeared first on Submit Articles.

Google’s chief executive has had to quit his position on the Apple board because of pressure from shareholders saying it’s a conflict of interest.

Eric Schmidt agreed to leave the apple board by mutual consent this week, something that Park East Capital had predicted several weeks ago would happen. Especially since Google now has a phone operating application and operating system that is in direct competition with the Apples products.

There has been over the last few months’ intense pressure from shareholders on the relationship of Schmidt and the two boards. Sources told Park East Capital that Schmidt has decided to leave the Apple board because the US Federal Trade Commission was starting to investigate the situation.

A spokesperson from the FTC told Park East Capital that both Apple and Google now compete in many of the same markets, both have phones out, operating systems and Internet browsers.

Park East Capital believes that what is more telling is that they both want to bring down Microsoft’s dominance.

Schmidt has been a Director on the Apple board since 2006 and he has always let it be known that any discussion on the iPhone he would leave the meeting. But with the introduction of Google’s new Chrome operating system it put huge pressure on Schmidt to resign his position due to conflict of interest.

It’s not surprising to Park East Capital that Schmidt is leaving the board, what is more surprising is that why was he was the board in the first place and why it took so long for him to leave.

The post Park East Capital: Google Chief Exec Finally Leaves Apple. appeared first on Submit Articles.