South Carolina Business Hall of Fame induction banquet

Thursday night, May 26, at the Columbia Marriott, one living business leader and one deceased leader will be inducted into the SC Business Hall of Fame: Charles S. Way Jr., C.E.O of The Beach Company, and the late James Roy Pennell (1888-1971), father and engineer of the state Highway Department, and a pioneer in the heavy construction business. Special guests on program are Secretary Richard W. Riley, Ambassador Bob Royall, and Roger Milliken, SC’s National Business Hall of Fame laureate in residence. Established in 1985 by Junior Achievement and The State , the Business Hall of Fame honors SC’s champions of free enterprise and presents business role models to children. For more information and for tickets, call Dianne Chinnes, 252.1974, extension 12.

Jets getting new stadium

Costs of Gamecocks’ decks compare favorably.

New York City’s Metropolitan Transportation Authority on March 31 approved the $720 million sale of its West Side rail yards to the New York Jets, allowing for their $1.9 billion, 75,000–seat stadium on the site.

Anybody wanna be a California architect and go to all those public hearings? Is SC heading that way?

In California in 1989, there were 1,339 new licenses to practice architecture. In 2004, in the middle of the housing bubble and during construction–friendly low interest rates, there were just 398.

The exchange rate is helping out early for your summer in Europe.

By last Friday the US currency strengthened to its highest level against the euro in about seven months, gaining also against the British pound. Last January the euro cost $1.36, and Friday it cost $1.26.

US Airways and America West to merge

In its second round of Chapter 11 bankruptcy proceedings, US Airways is about to merge with America West. Industry observers see the merger as two one–legged men propping up each other. The two airlines can come together once the new $500 million in equity is final. The new and expanded airline gets Columbia better service to the Midwest and to Hawaii.

Chinese apparel gets hit with US import curbs

Restrictions on imports of Chinese cotton trousers, knit shirts, and underwear kicked in last Friday. The value of Chinese imports in the first three months of 2005 ran 54% ahead of the same period in 2004. Consequently, US cotton farmers have gained, while US apparel manufacturers have lost. The US clothes–buying public has saved money. Still, China fails to protect US intellectual–property rights, and its currency–management practices maintain unreasonable trade advantages for China’s world trade position.

Wines cross state lines

The US Supreme Court ruled Monday in favor of interstate wine deliveries across the country to individual consumers. With $21.6 billion in annual sales, the US wine industry should gain substantially.

The French vote May 29 on referendum on the European Union constitution; the Dutch, June 1

The economists are getting nervous because the French could vote No, and Europe’s stuttering economy could slow even more. The Dutch will probably follow France’s lead, particularly if France votes No. The Italians are already falling into a recession. Bottom line for the US: relative stability and growth here look more attractive, and our bonds and stocks here look consequently even more attractive.

The long bonds

The US Treasury is about to return to issuing 30–year bonds, the first since 2001. The French issued 50–year bonds three months ago. Germany is expected to follow. This week the British Debt Management Office announced their 50–year bonds. Spain, Poland, and Greece have recently issued 30–years bonds. Interest rates are rising, and governments have a strong incentive to lock in funds at low rates while they still can.

Hedge your debts

The number of hedge funds worldwide grew from less than 2,000 in 1990 to more than 8,000 in 2003. During the same time, hedge funds’ assets under management grew from $60 billion to $820 billion. Managing hedge funds, even with all the new competition, can be wildly profitable. Typically the hedge fund managers annually charge 2% of assets under management, and they take 20% of fund profits.

Duke leads, USC should follow

According to the Financial Times, Duke University’s Fuqua School of Business has the world’s best executive education program, to include its WEMBA, the weekend MBA. The executive MBA students meet every other weekend for two years, and the successful graduates get the same sheepskin as the weekday students. The Moore School of Business must be looking into something similar. Once the hotel addition to the National Advocacy Center (NAC) is complete, the business school gets adequate hotel accommodations across Pendleton Street for weekend programs. The NAC runs its class schedules Monday through Thursday, and the typical executive MBA schedule holds classes Friday and Saturday, a perfect fit.

Remodelers go with Gillespie

The Gillespie Agency recently was chosen by the Remodelers Council of Greater Columbia for advertising and public relations. The RCGC is one of the 10 largest councils nationwide.