LEHIGH VALLEY BUSINESS

International and local small business news on economics & finance

Three of the Lehigh Valley's representatives in Washington, D.C., were focused on the ailing auto industry Thursday and what should be done to bolster it.

Sen. Bob Casey, D-Pa., was on Capitol Hill grilling the Big Three CEOs, who are lobbying for a $34 billion bailout they say is crucial for their survival. The New York Times liveblogged the hearing.

Continue reading "Bob Casey, Charlie Dent and Arlen Specter focus on auto industry" »

A litany of job cuts at several major companies announced Thursday on top of others this week reinforce the reality of the economic climate.

On Thursday, a series of job cuts announced by corporate heavy hitters AT&T, DuPont, Credit Suisse and Viacom suggests the wave of layoffs is increasing just as the government is expected Friday to report a higher unemployment rate for November.

This from the Associated Press: "United Auto Workers union President Ron Gettelfinger, aligned with the industry in pressing for the aid, told senators at a Banking Committee hearing that any kind of bankruptcy, even a pre-packaged one, was not 'a viable option.' Gettelfinger said consumers would not buy autos from bankrupt companies, no matter the terms of the arrangement.

Sometimes I wish people would just be plain honest.

Here's what I'd like to see: "United Auto Workers union President Ron Gettelfinger today told the Senate Banking Committee that his union opposes any sort of bankruptcy for the Big Three because it would hurt the union. 'If we make good cars at a good price, people will buy them. We just think it's more important to serve the union than the American people. Bankruptcy would void our contracts and we would make less money.' "

Why wouldn't people buy cars from a company that's in Chapter 11 as long as the government guaranteed warranties? No one shopping at Circuit City this holiday season? If the price is right on a flat-screen, we're buying. Which airlines have been reorganized under bankruptcy protection and which have not? Don't remember, do you? Just know that they're flying and you'd buy a ticket with whomever charges the least and gets you there sort of on time. Continue reading "The question is not about Chapter 11 reorganization, it's about building quality cars at a quality price" »

State regulators have approved a pilot program by PPL Corp. that would offer customers varying rates of electricity depending on the time of day and season.

The Pennsylvania Public Utility Commission's approval today allows PPL Electric Utilities to enlist 1,200 residential volunteers for the program in 2009. PPL said it plans to offer the option to all customers by 2010.

"This type of pilot allows us to get some good feedback from our customers," spokesman Ryan Hill said.

PPL said the pricing option enables customers to save money by shifting their electricity usage to off-peak hours. Residents who consume during peak hours, when generating electricity is more expensive, would pay more.

Continue reading "PPL gets approval for electricity pricing options" »

The government shouldn't run America's auto industry, but if Congress is going to bail out the sagging-at-the-chassis Big Three auto makers to the tune of $34 billion, then there must be some form of accountability and transparency regarding where that money goes.

That was the consensus this morning when Sen. Arlen Specter, R-Pa., and Rep. Charlie Dent, R-Lehigh/Northampton/Monroe, held a roundtable discussion at the Brown-Daub dealership in Lower Nazareth Township on the state of America's auto industry as seen through the eyes of local bankers, attorneys, laborers, auto parts suppliers and auto dealers.

Continue reading "Arlen Specter, Charlie Dent meet with local auto industry stakeholders" »

Team Capital Bank has opened its second bank in Lehigh County at 4285 W. Tilghman St., South Whitehall Township.

This marks the fourth Lehigh Valley branch for Team Capital, which opened a branch in Allentown in March. A grand opening for the South Whitehall bank is set for 11 a.m. Thursday, the company announced today.

Headquartered in Bethlehem Township, Pa., Team Capital formed in 2005 to serve Pennsylvania and New Jersey. It has a total of seven branches.

There is nothing playful about lead poisoning in toys. It can cause irreversible learning disabilities and behavioral problems and, at very high levels, seizures, coma, and even death. The Ecology Center, which also tests for chemical content in other products, began testing toys last year after a spate of recalls. A watchdog group released a study Wednesday that shows lead was detected in 20 percent of toys, compared with 35 percent last year.

Lack of accountability. That's the gist of the Government Accountability Office's report that maintains the Treasury Department has no mechanism in place to track how institutions are using $150 billion in taxpayer money that the government injected into the banking system.

A quick economic primer. What officially defines a recession?

One benchmark is when the gross domestic product, the total output of all goods and services, declines for two consecutive quarters. The GDP turned negative in the third quarter this year, and many economists think it's far worse this quarter.

But the National Bureau of Economic Research uses broader and more precise measures, including employment data.

Based on that criteria, the economists say, unquestionably, the United States has been in a recession for one year now. Almost on cue, Bears clawed Wall Street on Monday, as the Dow Jones imploded, losing 679 point in trading.

First Star Bancorp. today reported a $90,000 loss for the quarter that ended Sept. 30. That compares with a profit of $809,000 for the same period in 2007.

The decrease is largely attributable to a write-down of the market value of preferred stocks held by the company. The write down was $998,000, net of taxes.

Continue reading "First Star Bancorp reports 3Q loss" »

Northampton Community College is offering a hand up to those struggling with the economic downturn.

The college today announced a two-pronged program aimed mainly at helping the unemployed by waiving tuition.

The school also will host an expo for those who recently lost employment or who simply are nervous about job security.

"Hopefully, this will be the start of other initiatives as we go through this economic crisis and try to get out of it,"

NCC President Arthur Scott said.

Starting in spring semester, which begins in January, the unemployed will be eligible for tuition waivers on up to 12 full-time credits, equal to a full semester's course work.

Continue reading "Northampton Community College to aid the unemployed with free tuition" »

Ask Subaru owners why they love their vehicles so much and many of them will say something to the effect of the car's versatility, dependability and affordability.

It's new marketing slogan - "Love. It's what makes a Subaru, a Subaru." - rings true for auto columnist Scott Wasser as this week he reviews the new-for-2009 Forester, one of the most lovable Subarus he's ever tested.

Check out the nuts and bolts of this vehicle here.

The Paul Green School of Rock Music is coming to Easton.

The Lopatcong Township couple who plan to open the franchise, Sue and Ray Thierrin, were inspired by their son's commitment to practicing his instrument after beginning lessons at another School of Rock location.

"We can't get him off the bass," Thierrin said.

The Thierrins plan to lease the South Bank Street site that is currently home to the Easton Museum of Pez Dispensers.

Married 46 years, Brian Pitcher and his wife Jeanette, have been in business together -- on and off -- for more than 30 years. They entered their current venture, Baby Gift Clouds located in downtown Easton, riding the winds of chance. Meanwhile Karen Sampson had a professional dream fulfilled after experiencing heartbreak proving that sometimes, the best things do come to those who wait as our "Best and Brightest" series, examining the mindset and philosophies of small business owner and entrepreneurs continues.

Data released today suggests Black Friday may live up to its name this year, despite predictions that consumers worried about the nation's economic outlook would be less likely to spend.

Post-Thanksgiving Day shopping sales rose 3 percent over last year to $10.6 billion, according to preliminary figures from the research firm ShopperTrak RCT Corp. Last year, Black Friday sales totaled $10.3 billion.

lehighvalleylive.com reader lvteacher contributed to retailers' Black Friday haul with a trip to the Sam's Club in Lower Nazareth Township.

"I went to purchase the Wii for my sons, and the Wii Fit for myself," lvteacher wrote.

"The store was thoroughly stocked with everything except the Wii Fit. That one was tough to come by...Thank goodness I was like fifth in line."

Check out a collection of Black Friday photos from shopping hot spots all over the Lehigh Valley and northwest News Jersey.

What was the verdict on this year's version of Black Friday? Shoppers were out in force on Black Friday, just like in past years, although this time around, most kept tighter hold of their wallets.

Retail stores are between a rock and a hard place. Stuck with merchandise they must move in an effort to salvage something from what has been a dismal year, many retailers are discounting and giving away merchandise at a torrid pace in an attempt to increase sales.

Check out some of the incentives to shop this holiday season.

When will the "free market" ever return to the banking sector? That's a question for another day, but on Wednesday KNBT owner National Penn Bancshares, a "well capitalized" financial institution, took advantage of the nation's financial rescue plan and augmented their portfolio with $150 million in federal funding from the U.S. Treasury Department.

The federal government has agreed to purchase stock in KNBT owner National Penn Bancshares as part of the nation's financial rescue plan.

Under the agreement announced today, National Penn will receive $150 million from the U.S. Treasury Department.

Continue reading "'Well capitalized' National Penn Bancshares to receive $150M in rescue plan cash" »