A good year under–reported

Private equity firms operate a bit under the radar due to lightweight government regulation, but according to people incipiently on the inside, Blackstone’s current fund has an annualized return of 100%, while KKR’s is coming in around 70%.

Also last year

Taking public companies private in the US in 2005 amounted to $50 billion in deals by private equity firms. In 2004, the deals totaled $19 billion.

Friday’s close

Friday, December 30, was the last day the New York Stock Exchange memberships (seats) could be bought or sold. The record price was on December 1 when a seat sold for $4 million. Last week, a seat sold for $3.7 million. In early January, the memberships will be converted to shares of NYSE Group Inc., a new public company.

US tops in the world

The US corporate tax rate, the combined federal and local taxes, is a fraction more than 39%, which is more than any other country on the planet. Sweden, those socialists, keeps its corporate rate at 28%. The Brits and the Aussies hold theirs to 30%. The average for member countries the Organization for Economic and Cooperative Development (OECD, the rich countries) is 29.2%. Is there any wonder why offshore operations are growing?

Telecommuting

Worldwide in 1998, there were about 25 million people telecommuting more than eight hours a month – working at home. In 2008, projections allow for 100 million workers to telecommute from home. In the US, the number in 2008 will be about 35 million.

Snow caps

Treasury Secretary Snow wants to raise the cap on the national debt above the current $8.18 trillion, enough to pay the nation’s bills.

Hilton returns to global reach

Hilton Hotel Corporation, to include Columbia’s new convention center headquarters hotel, is about to buy Hilton Group PLC for $5.71 billion. The two companies split in 1964, with Hilton Group PLC operating outside the US. The recombined operation is to be headquartered in Beverly Hills, the home of Hilton Hotels Corporation. The company’s hotel total will be 2,800 in 80 countries.

Home sales

In November, the US median price for an existing home was $215,000, 13% more than a year earlier. Existing home sales in November were down 1.7% from October.

Losses

US military deaths in Iraq totaled 841 in 2005, down from 846 in 2004.

City government

Four members of city council are up for re–election this April: Mayor Bob Coble and council members Tameika Isaac Devine, Hamilton Osborne, and Sam Davis. The four make up a majority of the seven–member council.  

SC economy separating from textiles

Since 2000, SC has lost 90,000 jobs, mostly in textiles. In the 1970s, SC had more than 150,000 workers in textiles. Today, SC has 30,000 workers in textiles. For 2005, the SC Department of Commerce announced $2.8 billion in capital investment and 13,500 new jobs, none in textiles.  

Greenwood

Last week, Tech–Wood committed to invest $150 million and to create 250 jobs in Greenwood County. Netherlands–based Tech–Wood is in the building materials industry.

Independence no more

Independence Air shut down system wide Thursday, January 5, at 7 pm. A positive low–priced force at Columbia Airport, Independence held down fares across the board. Now that US Airways has merged with America West, it declares itself a low–cost carrier, and maybe prices won’t hike in Columbia.

Delta downs

For November, Delta AirLines suffered a net loss of $181 million, far less than the $1.4 billion in losses reported in the six weeks following bankruptcy filing September 14. Last week, Delta’s pilots agreed to another 14% pay cut, saving the airline up to $150 million a year.

…they are different from you and me.

Microsoft Chairman Bill Gates spent $23 million in December to buy 260 Class A shares of Berkshire Hathaway, increasing his stake to 3,900 shares worth about $346 million. Berkshire Hathaway’s 52–week high for its Class A shares is $92,000.

Recession looming?

Banks pocket profits from borrowing short–term money and lending it out at higher long–term rates. Recently, the interest on the 10–year Treasury note fell below the yield on the two–year note, setting up an inverted yield curve, blocking bank lending. Financial firms account for a big chunk of the total value of US stocks, maybe a fifth. Also, there are substantial financial arms of major corporations. If lending slows, so goes the economy.