In the Region
Fed: Economy still expanding
The Federal Reserve said the economy maintained its expansion in all 12 of its regions in the last six weeks as manufacturing, hiring and retail sales showed signs of strength in the face of higher fuel prices. For the Philadelphia region, the Fed's so-called Beige Book said, business activity "has continued to show slow, steady improvement." It said overall sentiment improved, aided by unseasonably mild weather. "Manufacturing activity has grown further, and many manufacturing industries have contributed to this growth; however, the pace has slowed slightly. Retail sales continued to grow modestly. Motor vehicle dealers experienced unseasonably strong sales growth in February, but sales were less robust in March." Banks in the region "have reported slight growth in demand and continued strong credit quality." — Bloomberg News
Tasty bakery expanding in Oxford
Flowers Foods, which bought Tasty Baking Co. last year, said it will invest $31 million to expand its Tasty bread-baking facility in Oxford, Chester County. Flowers said the decision is based on an expectation that the project will receive economic support and assistance from the state as part of a Keystone Opportunity Zone. When completed in 2013, the new bread production line will add approximately 77 jobs at the Oxford bakery, Flower said. "Tastykake snack cake production will continue at our Philadelphia Navy Yard and Oxford bakeries," it said. — Reid Kanaley
Tabas stepping down at Royal Bank
The three top executives of Royal Bancshares of Pennsylvania Inc., including CEO Robert R. Tabas, will step down by the end of the year. The Tabas retirement would mark the first time since 1980 that a Tabas family member will not have a management role in the bank. Daniel Tabas acquired the bank in 1980 and it went public in 1983. In a statement, the company, which operates its branches under the Royal Bank America name, said Robert Tabas, who has been chief executive since 2009, will retire by the end of 2012. He will remain on the board of directors as chairman. Murray Stempel III, Royal's vice chairman and chief lending officer, will retire by year's end, but remain as a member of the board. James J. McSwiggan, who is president and chief operating officer, also announced he will retire on or before Dec. 31, and step down from the board. — Mike Armstrong
Horsham developer sells tech park
An affiliate of Horsham-based MRA Group said it sold the 800,000-square-foot TEK Park in Breinigsville, Lehigh County, to a New York investment group for more than $50 million. Tenants include Buckeye Partners L.P., CyOptics Inc., and Kutztown University. MRA bought the once largely vacant 137-acre property, which had been built by AT&T in the late 1980s as a Bell Labs research center, for $9.3 million in July 2005. — Mike Armstrong
Natural gas prices fall to 2002 level
The futures price of natural gas declined to $1.984 per 1,000 cubic feet, its lowest level since January 28, 2002, when the price hit $1.91. If the price falls to $1.75, it would be the lowest since March 23, 1999. Natural gas production has boomed in Pennsylvania and across the country as energy companies employ a new drilling technique to tap previously untouched reserves. The process has raised concerns about water safety, and has been temporarily banned in New York and New Jersey. But where it has been allowed, it has led to increases in drilling, job growth and production. The falling price of natural gas has been a boon to homes and businesses that use the fuel for heat and appliances, and for manufacturers that use it to power their factories and make chemicals, plastics and other materials. — AP
Sunoco affiliate named in Pemex suit
Mexico's Pemex Exploracion Y Produccion filed a new lawsuit against six U.S. energy firms, including Philadelphia-based Sunoco Partners Marketing & Terminals L.P., after a judge refused to add the firms to a previous case seeking more than $300 million for stolen Mexican natural gas condensate sold in the U.S. The Mexican state-owned oil company filed the new claims after regular business hours in Houston federal court after its production unit was denied permission to add the six U.S. firms to the existing litigation. In addition to the Sunoco affiliate, Pemex sued ConocoPhillips Co., two Royal Dutch Shell P.L.C. affiliates, Marathon Petroleum Co. and FR Midstream Transport L.P. in the new action. Pemex had tried to add the companies to litigation pending since 2010 against BASF Corp., Murphy Energy Corp. and a number of other U.S. gas transportation and processing firms. — Bloomberg News
Elsewhere
Pump prices may have peaked
U.S. gasoline pump prices may have peaked for the year as demand slides, job growth slows and crude prices moderate. Regular gasoline, averaged nationwide, has fallen five straight days to $3.915 a gallon, the longest streak since December, after surging 20 percent and peaking at $3.936 on April 4, according to data from AAA, the biggest U.S. motoring club. Americans have purchased 5.3 percent less gasoline so far this year than in 2011, data from credit-card receipts analyzed by MasterCard Inc. showed. — Bloomberg News
German cars selling like kuchen
BMW AG and Volkswagen AG reported record sales for the first quarter, continuing an export-driven surge that contrasts with Europe's chronic debt woes and slack economy. Luxury maker BMW said its worldwide sales were fueled by rising deliveries in China and the United States. It said that January-March deliveries by the BMW Group — which also includes the Mini and Rolls-Royce brands — were 11.2 percent higher than a year earlier at 425,528 vehicles. Volkswagen sold 1.36 million vehicles, an increase of 10.5 percent, as a difficult European market was outweighed by strong gains in North American and Asia. — AP
Money-fund yields mixed
The average seven-day yield on taxable money-market funds was 0.03 percent this week, unchanged from last week, according to iMoneyNet Inc. A seven-day yield is an annual yield that is based on the preceding seven days' level of income by the fund. The average yield on tax-free funds was 0.01 percent this week, down from 0.02 percent last week. — Reid Kanaley