Vol. 6 Issue 8 - February 9, 2010

Stillman News

Ethics

International Business

The Intersection of Wall Street and Sesame Street - the impacts of the financial crisis on children.

See p. 6

Employee discount based on Body Mass Index: Healthy Incentive or Inequitable Benefit?

See p. 8

Chavez announces $1 billion power fund to combat See p. 16 Venezuelan energy crisis.

The Stillman Exchange

www.StillmanExchange.com

The Official Business Publication of Seton Hall University

Made possible by the generous support of the O’Brien Family

TUESDAY, FEBRUARY 9, 2010 - VOL. 6 NO. 8

Olympics Ring with Sponsorships, Economic Hope

Toyota Faces Crisis: Recalls Over 8 Million Vehicles

By Brian Daniels,

By Stefano D’urso, Yes, the Olympics are back. But who stands to profit the most?

With the 2010 Winter Olympics set to kick off in Vancouver on February 12, Canadians are buzzing with the opportunity to bring in revenue from selling goods such as t-shirts and winter apparel to providing services such as massages, car services and the highly acclaimed ski resorts surrounding the area. With celebrities such as moonlanding astronaut Buzz Aldrin to Hollywood hunk George Clooney, and even U.S. Vice President Joe Biden set to make appearances, there will be plenty of spending in the two week Olympic period.

Canada is going to need it.

With an estimated budget of over six billion Canadian dollars, the government and local officials are growing concerned that they may not be able to recoup all of that money resulting from the financial meltdown of the previous two years. About 600 million Canadian dollars are expected to come from taxpayers, who are not exactly thrilled. Close to 20 percent of the budg-

INDEX Money & Investing.............. 2 Stillman News...................... 6 Ethics ................................... 8 Editorials ............................. 9 Sports................................... 10 Domestic News..................... 13 International News.............. 15 International Business........ 16 Front cover images created and designed by Christine Wotton, Web Manager

et is being put towards security, as 6,000 police, 4,500 military, and 4,800 private security contractors will be patrolling the grounds from day to night. These figures do not even mention the 25,000 blue-shirt volunteers that will be used as guides, informational associates, and extra security. With terrorist threats looming, Canada has been extremely cautious with its preparations.

The personnel that will be needed as officials are expecting over 5,000 athletes and staff, 10,000 members of the media, and 2.5 million fans from over 80 countries worldwide. These are numbers that Vancouver has never seen before.

Having said all this, the Winter Olympics will do well for the Canadian economy and its people. Over 200,000 jobs have been created, mostly in construction, and $2.5 billion in revenue is expected to go directly to the government. Vancouver, British Colombia, and Whistler are all expecting to sell luxury real estate to foreigners looking to get away from their highpaced lifestyles and vacation in the calm, mountainous regions that offer some of the best skiing, scenery and soul. Real estate

has hit the skids, even in some of the most beautiful and affordable places in Canada, but the Olympics are a safe bet to fill vacancies.

The Euro and Pound are significantly stronger than the Canadian dollar, so tourists will be more than willing to spend, and will most likely get more for their money in a location like Canada than someplace else.

Now, where does the United States fit in all of this? Well, the U.S. markets will not be directly impacted by the Olympics, but many big-name corporations have decided to spend big dollars on advertising.

Starting with NBC Universal, who paid a whopping $820 million to receive exclusive rights to air every Olympic event from the opening to the closing ceremonies, has already calculated that it will stand to lose close to $250 million after all is said and done. However, NBC is banking on television advertisement sales that are currently selling at $500,000 for a 30 second spot.

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Unpopular since its origin, the Bowl Championship Series uses a computer rankings system in order to decide who will play for the NCAA Division I National Championship.

Unlike the more traditional system of a playoff used by the lower levels of college football, many find the standings system used by Division I to be unfair.

Senator Orrin Hatch of Utah has been very vocal on the BCS issue since the “snub” of his home state’s University of Utah when they were denied a chance to play for the

President Pushes New Playoff System

By Matt Bartel, Stillman Sports Writer One of the most controversial topics in the world of sports today is now receiving attention from the leader of the free world.

United States President Barack Obama and other notable figures in the U.S. Political arena are trying to push College Football to implement a playoff system, as opposed to the current Bowl Championship Series format.

On Thursday, January 21, Toyota Motor Corp. recalled 2.3 million vehicles in the U.S. because of an accelerator pedal problem that results in uncontrolled acceleration. The next Tuesday, the 26, the Japanese automaker instructed dealerships to suspend all sales of eight different models and temporarily shut down six of its factories. On January 29, Toyota expanded the recall to include 1.8 million vehicles in Europe and 75,000 cars in China.

Model’s from Toyota’s other brands Lexus and Scion were not involved in the fiasco.

This follows the November 2 recall of as many as 5.4 million vehicles for a possible incorrect or out-of-place floor mat on the floor of the driver’s seat which could cause pedal entrapment.

The newest recalls came after the company realized some crashes were not caused by the floor mat problem. As of now, over 8 million cars have been recalled by Toyota worldwide; 6 million of which are in the United States.

According to government documents, Toyota blames the problem on a buildup of condensation in the pedal system, which creates friction that can cause a delayed return of the pedal or in rare cases, sticking. The accelerator pedals may get stuck in a partially depressed position or return slowly to the idle position. Toyota states that the sudden, uncontrolled acceleration is “rare and infrequent”. However, company officials have been very reluctant to give any further details such as a definitive cause or frequency of accidents because the ‘investigation is ongoing’.

Before last August, Toyota had issued three limited recalls to replace floor mats and change an interior part that could catch on the accelerator pedal.

National Title in 2004 and again in 2008. The team’s strength of schedule is lower than teams that play in more difficult conferences, which gives Utah a lower overall rating in the BCS standings, creating these “snubs”.

Many believe that not only would a playoff system be more popular, but it has the ability to bring in even more money than the Bowls do each season. All college basketball fans wait in anticipation for the 64 team brackets to be released for the annual “March Madness” tournament. One could only imagine the hype and money that would surround this same scenario in the college football season.

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TUESDAY, FEBRUARY 9, 2010

Money & Investing

NEWS BRIEFS • Paypal Inc. halted certain types of transactions coming out of India last week, questioning the types of services involved in these deals.

• Alberto Vilar, a philanthropist who has donated millions of dollars to charity, received a nine year prison sentence recently for his role in hiding $40 million in profits from investors in his company.

• Contrary to previous plans, 3.000 workers in GM’s Detroit-based headquarters will not have their jobs relocated, and will remain at the main building.

Two Weeks in Earnings Date Company 2/10 The Coca-Cola Company Walt Disney 2/11 Buffalo Wild Wings Chipotle Mexican Grill, Inc. 2/16 Abercrombie & Fitch Whole Foods Market 2/17 Deere & Company 2/18 Build A Bear Workshop Inc. JCPenney

Symbol KO DIS BWLD CMG ANF TEL DE BBW JCP

EPS $ 0.67 $ 0.39 $ 0.51 $ 0.79 $ 0.86 $ 0.39 $ 0.18 $ 0.10 $ 0.82

Earnings Stock to Watch: Coca Cola Graph courtesy of Yahoo! Finance

• Notes released by Berkshire Hathaway last week garnered an “AA+” rating from the S&P rating service, the secondhighest rating possible.

• A Latvian ghost town was sold to a Russian investor for $3.1 million on Friday, although his plans for the town are not yet public.

Toyota Struggles Through Car Recall ...continued from page 1 In August, however, Toyota could no longer pass the problem off as a minor issue. A highway patrol officer was the victim of a Toyota vehicle which accelerated against the driver’s will. The incident was caught on tape, and the 9-1-1 tape was released to the public. If anyone could have taken control of the car, it would have been him. At this point, Toyota had to take drastic action, as the same incidents were happening ‘repeatedly’. In December another high-publicity accident occurred, and the floor mats were in the trunk. Toyota had announced wrong diagnoses and insufficient fixes, and not just once. One federal inquiry on Toyota Models built from 20022005 found 20 percent of 432 complaints involved sudden or unintended acceleration. Toyota said no defects were found in any vehicles. With such a track record, there is still a chance that after this whole debacle Toyota will still fail to fix the problem. After all, they have been under suspicion for ten years, and have done little to nothing to solve the developing issue.

Further proof of lack of Toyota’s confidence in its answer to the problem comes from the reaction of the company that produces the faulty gas pedals for Toyota, CTS Corp. of Elkhart, Ind. The company has stated that it is aware of fewer than a dozen instances where the brake pedal returned slowly, and says in no instance did the accelerator actually become stuck in a partially depressed condition.

Meanwhile, Sean Kane, president of the Massachusetts-based car safety investigation and advocacy group Safety Research and Strategies, has stated that his firm has identified 2,274 incidents of sudden unintended acceleration in Toyota vehicles leading to at least 275 crashes and 18 deaths since 1999. The National Highway, Traffic, and Safety Administration has given a different set of statistics as well.

Toyota has only been made aware of anywhere from 3 to 19 incidents, depending on

which representative you talk to.

It took until Friday, January 29, for Toyota’s CEO Akio Toyoda to make his first public comments. All he could say was that he was sorry for his customers’ concern. For many customers, however, ‘sorry’ is not going to be enough. Consumers are dealing with all sorts of feelings - fear, frustration, confusion, anger, and being ripped off. Customers have also been having all sorts of trouble getting in touch with the company. Owners of Toyota vehicles want to know if it’s safe to take their cars to a dealership and when a fix will be available, but the company has failed to give concrete answers for each of these questions, and many others.

American car companies General Motors and Ford, which just posted its first market share gain in the U.S. since 1995 last year, are set to gain from Toyota’s woes, as they have a deal going where buyers who trade in Toyotas when purchasing a new car are given $1,000 off. Toyota’s stumble is certainly Detroit’s gain.

In the U.S., many industry analysts have come up with the same conclusion: Toyota’s growth has outpaced its management structures. This is not rare, as many businesses face the problem of getting too big, too fast in this day and age.

Meanwhile, quality goes down. Toyota has a top-down management style; the chimney approach. Everything must go through the company’s headquarters in Japan.

Finally, Toyota has tried cutting costs since 2005, with the most recent coming just a month ago during December, when Toyota executives asked suppliers to reduce parts costs by 30 percent over the next three years.

Auto-safety experts, such as Kane, have been warning the public for years that the NHTSA lacks the manpower and resources to effectively monitor safety defects associated with increasingly complex vehicle technology. The Administration has been leaderless for a year, even though they have had an acting deputy that has provid-

ed leadership. Kane states that the NHTSA has a lack of statistical tools that can quickly spot trends. He claims their Early Warning Reporting System used to track deaths and injuries associated with vehicle defects is a mess and has never been effectively used. For example, it has two dozen categories of incidents often vaguely defined and similar incidents are often reported in varying categories. There is no category for sudden acceleration.

On Monday, February 1, nearly a week after production was stopped, Toyota Motor Sales President U.S.A, James Lentz, among others, described the fix. Executives described the fix as a simple process that involved installing a steel reinforcement bar made by CPS Corp. into the pedal assembly to reduce surface tension that could cause it to stick. The part needed was already on its way to dealers, and Toyota had apparently already begun training workers on how to make the repairs, which will take about 30 minutes each. Notices by mail have gone out urging customers to wait until receiving their letters before contacting their dealer for a repair appointment. However, the letter could take several weeks to reach everyone.

Meanwhile, the U.S. House Oversight and Government Reform Committee is launching an investigation. For the February 4 hearing, Yoshi Inaba, chairman and CEO of Toyota Motor North America, has been called in to testify. A house investigative panel is planning a similar hearing for February 25. In addition, Toyota faces a flood of lawsuits, consisting of several class actions suits and multiple individual accident cases as well. Vehicles will slowly start to begin selling again after the fix is made to them, which will be after all vehicles already bought are fixed. Production is expected to begin again on Monday, February 8.

Contact Brian at brian.daniels@student.shu.edu

THE STILLMAN EXCHANGE

If Toyota Ran the NFL

By Kyle Connell, Money & Investing Writer Though the Lombardi trophy had been smudged by oily fingerprints and sweaty lips only 12 hours earlier, NFL Commissioner Roger Goodell removed himself from the hype of the aftermath of the Super Bowl on Monday morning by apologizing publicly for the safety problems related to the tickets for the recent Pro Bowl and Super Bowl.

Last week, for the first Pro Bowl away from Hawaii in 30 years, a design mistake for the tickets caused them to be printed on paper that was too thin, putting the ticketholder at an extremely high risk for paper cuts. This design error resulted in the recall of every single ticket sold. Luckily, only the tickets that were sold to two Finnish vacationers on holiday in Florida looking for a taste of American culture had to be recalled.

Consequently, initial reports from NFL officials estimate the cost of the ticket recall to be only about one hundred dollars.

The serious safety issue for the league came with the improper perforation of tickets for the 2010 Super Bowl, the best selling ticket model in the United States. Upon opening of the gates before the game, a huddled mass quickly formed at the turnstiles because 50 percent of the ticket holders were unable to be admitted due to their tickets’ inability to be torn at the perforation. The queue was filled with embarrassed, bewildered, intoxicated and angry football fans the combination of which lends itself to a very unsafe atmosphere.

Confusingly enough, despite the quick recall and assurance of repayment for the Pro Bowl ticket fiasco, Goodell offered no recall or solutions for the Super Bowl ticket issue.

The league has begun an in depth investigation into the Super Bowl ticket problems already. So far, investigators believe that the original improper perforation was actually not a cause for concern. It appears that the high corn-starch atmosphere in Indiana, caused by the fact that corn out-populates people in the state, exacerbated the poor perforation of the tickets exposed to that atmosphere, therefore rendering them unable to be torn.

Rumors have surfaced of an intention to hide the safety issues of the tickets, saying that the league’s ticket engineers were in fact aware of this problem beforehand. They reasoned though, that since only the state of Indiana possessed high enough levels of corn-starch in the atmosphere to affect the perforation of the tickets to an unsafe level, it would not be a problem. Thus, the chances of this kind of ticket safety debacle were slim at worst.

On the issue of ticket safety, Goodell has had a mysterious public absence, which lines his recent assurances of safety with cracks of uncertainty. A Congressional hearing has been scheduled to discuss the current dangers of NFL tickets, and when asked why he would not atted, Goodell simply said, “I’m going to eat some corn”.

Contact Kyle at kyle.connell@student.shu.edu

All information contained in this publication is not intended to substitute for the advice of a professional financial planner. It is meant only for informational purposes. The Stillman Exchange assumes no liability for any investment losses incurred as a result of information provided in this publication. Readers should consult a professional financial planner.

Money & Investing

THE STILLMAN EXCHANGE

TUESDAY, FEBRUARY 9, 2010

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Housing Recap: The Good, the Bad and the Ugly

By Scott Giveans, Money & Investing Writer Whether you were a homebuyer, seller, owner or just a precarious spectator, the poor performance of the 2009 housing market has been well documented. Millions of people were forced to foreclose on their property, take a “loss” on the sale of their home or experience a significant decline in equity. The effects of the housing downfall were felt nationwide and some states fared better than others: The Good…

North Dakota - foreclosure rate- 2.36% -unemployment rate- 4.4% South Dakota - foreclosure rate-3.23% -unemployment rate- 4.7% The Bad… California, Florida, Arizona and Illinois -more than 1.4 million properties had a foreclosure file -accounted for more than 50% of the total foreclosure filings

Photo courtesy of the Mortgage Bankers Association

And The Ugly Looking at the charts, it appears the worst of the recession has hit the coasts, with unemployment rates hitting the Nevada hardest in California and Nevada on the West coast. The only exception is Michigan, the notorious state filled with sev-foreclosure rate- 17.24% eral major car companies that have cut jobs in recent months.

-unemployment rate- 13% -over 10% of all homes in states received some sort of foreclosure statement Arizona -foreclosure rate- 12.21% -unemployment rate- 9.1% -more than 6% of Arizona homes were hit with a foreclosure notice According to RealtyTrac foreclosure filing on U.S. residential properties jumped 21 percent in 2009. In total there was a record 2.82 million foreclosure filings nationwide. The report went on to conclude that the monthly number of filings peaked at 361,000 in July, but dropped the following four months until December when the numbers continued to worsen.

Contact Scott at scott.giveans@student.shu.edu

Photo courtesy of the Mortgage Bankers Association

Olympic Games Bring Hope to Countries and Economies Alike ...continue from page 1 The $820 million paid for this year’s Winter Olympics far exceeds the $613 million NBC paid for the 2006 Torino games.

Analysts believe the studio giant increased its bid because there would be more buzz

surrounding these games. The news that NBC would stand to lose money hit its parent company, General Electric, hard on the stock market, as it closed at $15.79 at the end of trading Friday.

Other notable U.S. companies that have decided to latch onto the 2010 Olympics

include McDonald’s, who on Monday announced its sponsorship plan to open three new restaurants in Vancouver, along with limited-time offers and special promotional packaging.

This would be McDonald’s eighth Olympic Games as the official restaurant

sponsor. Verizon, in an agreement with NBC, announced a multi-platform content offering that would make the Olympics available to all Verizon FIOS TV, broadband, and wireless customers.

Coca Cola, which has been an Olympic donor for decades, plans to launch a new environmentally friendly bottle, which will be used to hydrate athletes. Other sponsors are Omega, which will be the official timekeeper, Panasonic, supplier of digital AV and TV equipment, Samsung, supplier of wireless communications equipment and services, and VISA, provider of credit cards and financial services. Each of these companies struck deals with the Olympics committee in hopes of advertising their products and services to a wider audience and getting their piece of the pie.

Overall, expect a boost in the Canadian economy that includes a potential increase in real estate sales, and look for U.S. companies to recoup the money they shelled for their sponsorship contracts.

With the close proximity of Canada to the United States, tourists are expected to cross the border and load up on goods since the U.S. dollar is still weak relative to other currencies. Not much should change for the U.S., but if the hockey team can pull off another miracle, that it is another story.

Contact Stefano at stefano.durso@student.shu.edu

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TUESDAY, FEBRUARY 9, 2010

Money & Investing

THE STILLMAN EXCHANGE

Avatar Saves News Corporation During Trying Second Quarter .By Steven Paramo, Money & Investing Writer No one could have guessed that blue aliens in a science fiction film would have saved such an esteemed company as News Corp., but sure enough they did as the $400 million movie has brought in an estimated $2 billion worldwide, according to estimates from The New York Times.

James Cameron’s Avatar starts in the year 2154, with an Earth-like moon named Pandora. Because of the large surplus of the extremely rare “unobtainium” on this planet, it forced humans to try to gather the resources. The metal leads to a mass warfare between humans and aliens, which creates the visual masterpiece for the worldwide audience.

Many analysts feared the expensive film would drag down News Corp., but sure enough it raised its dividend by 25 percent and fiscal second-quarter net income was $254 million, or 10 cents a share. Comparatively, a year earlier, it posted a net loss of $6.4 bil-

released for 13 days of the second quarter, so analysts predict the film will have a much bigger impact in the third quarter.

Much to the delight of investors, it is being reported that News Corp is in early talks with James Cameron to produce a sequel to Avatar.

Photo courtesy of Lightstorm Entertainment Executives claim News Corp.’s production, Avitar, might have been the saving grace the financing will be key corporation was looking for in this deperate time. After a $400 million if this sequel is ever to production, estimates from sales revenue are over $2 billion worldwide. take place, as Cameron almost lion, or $2.45 per share.

This is a great time to be in News always runs over his budget limit.

Corporation media, as there are reports of According to Dominic Patten of the company’s broadcast television, cable TheWrap.com, the original budget of Avatar television, newspaper and movie portions was $237 million, but after $150 million who have all reported increases in revenue more in promotion, other things drove up and operating income. This comes even the total to an astounding $400 million.

Another issue is the time it takes to prothough the commended film had only been

3D Emerges at CES As Next Step In Television Evolution

By Christine Wotton, Web Manager The economy is no longer the only major threat to business today, with recent attacks on Google, German Emissions Trading Authority, and the United States Government by business hackers. Millions of dollars were lost in the data compromised and millions will be spent to recover and rescue each of these systems.

Within the last month, three major attacks have occurred. Google (NASDAQ: GOOG) reported that part of its source code, the code that controls and runs www.google.com and its various functions, had been compromised. It also reported that a number of Google email accounts and their information were taken as part of the breach.

Google has since announced that it has made a deal with the National Security Agency (NSA) to investigate the source of the attack. This is more or likely due to the rumors that China is behind or was in some way involved in this breach. In response, Google has now uncensored its search engine, www.google.cn, that was previously censored to comply with the Chinese

“With the number of compromised systems growing on a daily basis and money being lost in the breaches and the recovery process, there seems to be no safe way to protect critical information.” government. In the end, this attack might lead to Google pulling out of China and the loss of millions of dollars and users.

This data problem is also an issue overseas, with the German Emissions Trading Authority, a company that deals with carbon credits. The hackers asked companies and individuals to re-enter their information, and were able to record these reentries.

From that information, the hackers were able to transfer the stolen credits to their

own accounts. According to the BBC, it is estimated the hackers stole 250,000 carbon credit permits from six companies which were worth more than $4 million.

The last attack, and the one that has the most potential to cause future harm to the U.S. economy, is the attack against the United States Government. The data breach was in the National Archives and Records Administration (NARA). During the breach, one of the NARA’s commonly-used external hard drives turned up missing.

The hard drive has been said to include the personal information of 250,000 Clinton administration staff members, job applicants and White House visitors. Due to this breach, the 250,000 workers are now at a high risk for identity theft. The Government is providing services to watch out for any signs of identity theft for the individuals during the next year. There has not been a clear reason for why the breach in security occurred or who they intended to target.

There is currently a $50,000 reward for the return of the hard drive.

With the number of compromised systems growing on a daily basis and money being lost in the breaches and the recovery process, there seems to be no safe way to protect critical information. Part of the problem is that companies are being targeted from the inside, a strategy known as Advanced Persistent Threats (APT). The hackers are able to gain access to a system and then manipulate the users to target specific people within the company. The goal is to have a presence in the system, existing without being noticed.

This type of attack is normally started with interpersonal office e-mail. A hacker will find an e-mail address that the target will not be suspicious of and imbed a zero day virus in an attachment. At the zero day, the virus is released and the system is open to the hacker. These attacks are very hard to find since they work with the flow of information not against the flow.

The future for companies facing security issues is a long costly road to secure data.

With the trend in hacking though, cyber security companies are gaining customers daily. The rapidly growing technology market now has one more area to offer profits for the computer-literate, even if it comes at the cost of those who are not paying close attention to their information.

Contact Christine at christine.wotton@student.shu.edu

duce a sequel. Planning for Avatar originally started in 1994, and was supposed to start production after Titanic. However, Cameron knew technology was not quite where it needed to be, so he waited until 2006 to start production. A reasonable tradeoff it appears, as it produced recordshattering numbers for not only the film industry, but also the company.

With another quarter reaping the profits of Avatar’s release, News Corp.’s numbers should be quite impressive when the third quarter hits the books. Investing in News Corporation now would probably be a good idea for most speculative people, as the DVD release of the film should also fetch some large numbers, as well as the potential for another movie. News Corporation looks like a strong company for the future, and the profits from Avatar are impressive no matter what planet you call home.

Contact Steven at steven.paramo@student.shu.edu

Dollar Gains on Eurozone Debt Fears

By Lee Duan, Money & Investing Writer The dollar has surged recently against the Euro, reaching levels not seen since May. As fears of a government debt crisis continue in Greece and new doubts develop regarding the fiscal strength of other EU nations, investors are beginning to expect a quicker economic recovery in the U.S. compared to the eurozone nations.

Weaker European states are suffering from budget deficits that exceed EU limits.

Greece’s debt is currently 12.7 percent of GDP, which is more than four times higher than the three percent limit. Spain’s budget deficit is 11.2 percent of GDP and Portugal’s is 9.3 percent of GDP. Further doubt regarding Greece’s ability to repay its debt has been augmented by strikes from tax and customs workers.

Disputes continue to arise between government and labor organizations as Prime Minister Papandreou ordered an increase in taxes, upping the retirement age and freezing government salaries.

Gains for the dollar continued as a result of the declining unemployment rate from 10 percent to 9.7 percent, a five month low. Its decline was supported by a decrease in the number of people counted as part of the labor force even though 20,000 jobs were shed in January. Analysts polled by Reuters had expected the unemployment rate to increase to 10.1 percent.

Signs of improvement for the U.S. economy came in the form of increased employment in the services, temporary employment and manufacturing industries.

After investors examined this new data, the problem of European debt remains while the U.S. is securely aiming at a slow but steady recovery.

Trading of Greece’s five-year creditdefault swaps, insurance against default, set new records on Friday. According to CMA DataVision, early trading spreads were as high as 4.46 percentage points. Only a month ago, spreads were only 2.56 percent.

The high volatility of credit-default swaps continues to show uncertainty in Greece’s ability to pay its sovereign debt.

The resulting fear of sovereign bankruptcy has caused the dollar to gain almost 11 percent over the Euro since November.

As of Friday, the Euro was trading at $1.368. Although it is still at historically

high prices, the speed at which it has declined may create problems for the Eurozone.

The drop could result in difficulties for European states needing capital from foreign investors. If the capital markets are unwilling to provide necessary financing, it is questionable whether other EU nations would be willing to provide bailout funding. Even though the European Central Bank controls monetary policy for the 16nation Eurozone, fiscal policy remains in the control of each individual state. Political

“Weaker European states are suffering from budget deficits that exceed EU limits.

Greece’s debt is currently 12.7 percent of GDP, which is more than four times higher than the three percent limit.” unity is not an option that can be used to curtail the budget deficits of struggling EU nations.

The increased volatility has brought many to seek safer investments. Technical indicators for equity markets and commodities have moved below certain support levels, resulting in Royal Bank of Canada analysts announcing their recommendation that investors should move “aggressively into cash”.

While investors have recently moved away from cash investments as a result of the broad market rally, it is likely that recent events and market reactions will lead to an increase in traditional safe haven investments such as money-market funds, the U.S. dollar and the Japanese yen. Such a transition will lead to a prolonged increase in the value of the dollar relative to the Euro.

Contact Lee at li.duan@student.shu.edu

Money & Investing

THE STILLMAN EXCHANGE

Volcker Could Be Ruled Out

By Spencer Lawrence, Money & Investing Writer Due to the role that numerous financial institutions played in bringing about the current economic situation in the United States, President Barack Obama has proposed a new set of regulations for the American banking system to abide by.

Named after Paul Volcker, former Chairman of the Federal Reserve and current chairman of the president’s recently formed Economic Recovery Advisory Board, the “Volcker Rule” suggests regulatory reform which would prohibit deposittaking institutions from engaging in risky activities such as proprietary trading, private equity, and hedge fund investments.

Confidence was originally displayed by those in favor of the new legislation; however, after recent events, the future of the “Volcker Rule” remains uncertain.

In front of the Senate Banking Committee, Mr. Volcker was questioned by Senators searching for clarification and reasoning behind the proposed banking restrictions. Mr. Volcker’s plan is aimed at curbing banks’ risk taking activities, which include proprietary trading. Proprietary trading occurs when a firm trades financial instruments using its own money in order to make a profit for itself rather than on behalf of its clients.

In his reply to a question from Sen. Mark Warner of Virginia, Mr. Volcker stated that financial firms with federally insured banking units will not be allowed engage in proprietary trading under his rule.

Regarding Morgan Stanley and Goldman Sachs Group Inc., he said they would have to make a decision whether to shed their proprietary trading operations or their banking licenses if the plan was

pass, it will need republican support, a task not so easily accomplished.

Senate Banking Committee Chairman Christopher Dodd criticized last month’s announcement of the “Volcker Rule,” saying it “seemed to many to be transparently political”.

Dodd is upset at the timing of the proposal, as he struggles to gain Republican support for the existing legislation targeting banks. At Paul Volcker’s recent hearing in front of the Senate Committee, Republican Sen. Mike Johanns accused the White House of adding complexPaul Vockler is looking to change the regulations on banks ity to already confusing proposiafter the problems in the economy for the last few years. tions made concerning bank reform. enaced.

In response to repeated questioning and It is difficult to quantify the effects a possible passing of the “Volcker Rule” will doubts, Volcker replied, “I tell you sure as I have on a firm’s operations. Keefe Bruyette am sitting here, that if banking institutions & Woods analysts have released values are protected by the taxpayer and they are which they stress are only estimates. given free rein to speculate, I may not live According to their research, proprietary long enough to see the crisis, but my soul is trading and asset management businesses going to come back and haunt you.”

Senator Dodd has since reached an that would be affected by the plan total $21.7 billion for Goldman Sachs and $12.4 impasse with Republican Sen. Richard Shelby and has ordered aids to begin draftbillion for Morgan Stanley.

The sale of the affected businesses ing their own version of legislation. Mr. would result in decreased revenue from 9.9 Dodd will likely have the necessary amount percent to 12.4 percent this year for of Democrats in his committee to advance Goldman Sachs and 11.9 percent to 15 per- the bill further, but Republican support is a cent for Morgan Stanley. Furthermore, J.P. necessity in order to receive the 60 votes Morgan analysts estimated the earnings needed to avoid a filibuster in the full impact for major banks under all of the pro- Senate. “While I still hope that we will ultiposed investment banking regulations to be mately have a consensus package, it is time to move the process forward,” stated Mr. minus 21 percent.

Although the newly proposed reform Dodd.

Contact Spencer at would negatively affect banks, it must first spencer.lawrence@student.shu.edu pass the Senate in order to do so. For it to Photo courtesy of the AP

Redbox Troubled By New Retailer Laws

By Michael Pernal, Money & Investing Writer Redbox, the largest operator of DVD rental kiosks in the United States, is starting to be “boxed-out” by some of its main suppliers. Wal-Mart and Target have begun limiting the number of newly released DVDs a consumer can purchase, causing the Redbox company to lack necessary DVDs for its numerous kiosks.

Wal-Mart’s rules, which took effect February 1, include a purchase limit of five of the same DVD. Target has the same cap, which stays in effect for one to several weeks after the DVD is released. It is unclear how long Wal-Mart’s cap will stay in place after the DVD is released.

Redbox, which is operated by Coinstar, and its closest competitor, NCR, are the largest operators of DVD rental kiosks in the United States. NCR, which operates under both DVDPlay and Blockbuster Express, both rent movies for approximately a dollar a day.

According to Adams Media Research, they are the fastest growing distributors of movie rentals. In 2010 alone, Adams expects rentals from DVD kiosks to rise 42 percent to $1.3 billion. A drastic increase in sales would step up the competition for other DVD rental services, including Netflix, traditional Blockbuster stores, and others.

Redbox purchases about 40 percent of its DVDs directly from either Wal-Mart of Target, paying retail prices. Both Redbox and NCR also purchase some DVDs directly from the movie studios. Due to the new DVD purchasing restrictions, it will now be

harder and more expensive for Redbox to acquire DVDs. In talking about the DVD purchase limits, Target spokesperson Joshua Thomas stated, “The idea is that our guests have access to the hot DVDs they want”.

Wa l - M a r t spokesperson Melissa O’Brien echoed that statement by saying, “From time to time Photo courtesy of Redbox Inc. we have placed purchase limits on prod- Redbox has seen increased profits in the last year, but the tides could be ucts at stores so that changing after Wal-Mart announced that, like Target, it would be limiting they can be accessible the amount of purchases by individual consumers. to as many customers as possible”.

Entertainment and Lions Gate The new restrictions have led Redbox Entertainment. An agreement is also in into a fight with movie studios that refuse to place with Paramount Home Entertainment make DVDs available to them the same day to make DVD titles available on a limited they are released to stores. Redbox has basis; in exchange, Redbox has to destroy sued Warner Home Video, Universal the DVDs after the limited time basis.

Studios Home Entertainment and Twentieth Redbox has kiosks in more than 19,000 Century Fox to try to force the studios to locations, including grocery stores, Walsell to Redbox during the initial release.

Mart, and McDonald’s. NCR has over Redbox is trying to reach agreements 4,000 locations, with the majority in with movie studios at the same time it has Safeway grocery stores. If the disputes with come under legal troubles related to $1 mil- studios continue, then the days of dollar-alion in alleged bogus late fees and penalty day movie rentals may be over. charges. According to Arizona’s Better Business Bureau, the lawsuit involves billing errors and unauthorized charges, all Contact Mike at of which have not been resolved. michael.pernal@student.shu.edu To its credit, last year Redbox reached agreements with Sony Pictures Home

TUESDAY, FEBRUARY 9, 2010

5

World Index Suffers Largest Loss in Months

By Bryan Murawski, Assistant Editor Stocks around the globe plunged, making for the largest drop in four months for the MSCI world Index.

Commodities also saw a large decline in part because of growing concern that the increase in U.S. unemployment and an ever-increasing debt total will derail the economic recovery. As the dollar continues to rack up debt, the Euro dropped to its lowest point since May. The MSCI World Index, which is made up of 23 developed markets, dipped 2.4 percent, the largest decline since the beginning of October. The S&P 500 index fell 2.3 percent. Also, benchmark equity indexes for Portugal and Spain plummeted the most in 15 months.

Oil has also seen its biggest drop in six months, with a five percent decrease. The five percent drop left oil at $73.15 a barrel, headed for the biggest daily drop since July 29.

Gold also fell to its lowest point since 2008, with April futures losing 4.1 percent to $1,066.60 an ounce in New York.

The initial applications for unemployment insurance unexpectedly rose to 480,000 last week. This unpredicted rise has sparked much talk.

Diane Garnick, a New York-based investment strategist at Invesco Ltd., told Bloomberg that she believes some current trends are not maintainable in the market.

“Unemployed people don’t spend money.

That means the growth we’ve seen is not sustainable until people get jobs. Also, there are lots of uncertainties on a global basis. That’s certainly negative news for the market. I wouldn’t be surprised if we started to see dramatic increases in volatility again”.

Declining shares in the MSCI World outnumbered rising stocks by almost six to one. Only 22 companies in the S&P 500 advanced and all but one in the Dow Jones Industrial Average declined.

Monster Worldwide Inc., which sells help-wanted advertisements on the Internet, plunged 19 percent in its biggest decline since 2002. The popular Mastercard lost 9.4 percent, the most since May 2009.

The rally in U.S. government debt came even as Nassim Nicholas Taleb, author of “The Black Swan,” said “every single human being” should bet U.S. Treasury bonds will decline, citing the policies of Federal Reserve Chairman Ben Bernanke and the Obama administration.

Even Europe’s Dow Jones Index decreased to 2.7 percent, the most since November. Benchmarks from Britain to Germany tumbled more than 2 percent, while Portugal’s PSI-20 index fell five percent.

After months of seeing a chance for hope in the economic recovery, all this bad economic news might come as a surprise to some. It helps to remind everyone that there is still a long way to go until full economic recovery.

With a huge increase in debt over recent history, the U.S. needs to find its way out of this economic jam. Now with other foreign economies not looking too good themselves, it could mean a longer period of time until we see the economy stabilize than we thought just weeks ago.

Contact Bryan at bryan.murawski@student.shu.edu

6

TUESDAY, FEBRUARY 9, 2010

Stillman News

Study Abroad Experience Connects Students to Ireland’s Captivating History

THE STILLMAN EXCHANGE

The Intersection of Wall Street and Sesame Street

By Beverly Makarios, Assistant Editor

Photo courtesy of Rory Manning Students who studied abroad in Ireland pictured here in front of the Guiness Brewery located in Dublin.

By Rory Manning and Danielle Hudson, Stillman News Writers Shamrocks and leprechauns - when some think of Ireland or the Irish these are the images they conjure up in their minds.

However, what many fail to see is a country going through a recession similar to the one in United States.

With the loss of many industrial jobs across the country and the housing bubble bursting, Ireland is a country that bears watching.

With a population of just over 4.2 billion people, approzimately half the population of New York City, Ireland is a small country that is making a big impact in the global economy.

With a low corporate tax rate, and incentives for corporations to base their European and EMEA (Europe, Middle East, and Africa) operations in Ireland, there is a heavy push for investment in this small region of the world. As a hub for telecommunications connectivity and data hosting services, Ireland holds some power in the global marketplace.

The Stillman School’s Doing Business in Ireland 2010 consisted of a mixture of visits focused on the cultural and historical aspects, as well as the business aspect of Ireland.

On the trip, the group visited sites such as Dublin Castle and Microsoft Corporation. The blending of the two paint-

ed a picture of the social and economic cultures of Ireland for the students on the trip.

Amongst the many locations visited, Microsoft was one of the top two that left significant impressions in the students’ minds afterwards.

“Dawn Balfe, the EMEA supply chain manager at the Dublin Offices was a wonderful speaker,” one student commented, “her discussion partially focused on how Microsoft changed the mission statement in 2009 to refocus the company’s objective.

The presentation showed the passion and drive that Microsoft has for its customers; the new mission statement was focused on the customer and helping the company realize its full potential”.

Another visit took the group to Irish Distillers where the students learned about the importance of branding image as well as how much the global markets and economies centered on certain segments.

Irish Distillers is owned by Pernod Ricard, the world’s co-leader in wines and spirits. The company owns many of the world’s most popular alcoholic beverages.

Whether it is Absolut, Jameson, or Malibu; the brands that this large corporation owns are household names. Jameson, Irish Distillers most popular brand, is the leading spirit brand in Ireland.

Citibank in Dublin was an eye opener for many of the students. The Dublin office focuses on Global Transaction Services (GTS), “the plumbing system to global

commerce” as the Citibank representatives referred to it.

Over three trillion dollars of financial transactions are processed daily out of the Dublin office. Any payments that the U.S. is making into Iraq are through GTS. The Federal Reserve New York accounts are held in GTS. Ten percent of Citibank’s income comes from GTS fees. Citi has the accounts for 80 national banks and 60 central banks across the globe.

The group visited many other sites such as Google and Dell offices, as well as Invest Northern Ireland on the day trip to Belfast. Other sites visited included many historical and cultural locations such as Dublin Castle, the Daíl Eireann, and Irish Parliament, among others.

Despite the standing of the Irish economy, many of the companies visited reported gains and predicted bright futures. After spending time in Ireland, it is clear that there are many changes on the horizon.

With the aftermath of the Celtic Tiger still lingering in many minds, the Irish are still optimistic about their future. With its low corporate tax rate and many incentives for corporations to base their European and EMEA operations in Ireland, there is a bright future coming towards the small island.

Contact Rory at rory.manning@student.shu.edu or Danielle at danielle.hudson@student.shu.edu

Professors and Student Collaborate to Create a ‘Best Paper’

By John Ceniza, Stillman News Writer Professors Lozada and Hunter of the Stillman School of Business collaborated with Seton Hall student, Aaron Gordon, to write a paper that was chosen to be presented at the twenty-first annual conference of the Association for Global Business.

The paper titled “Understanding and Negotiating the Products Liability Pitfalls of Outsourcing to China: Systematic Failures or Isolated Defects?” was initially drafted by Gordon in spring 2009.

That June, the paper was submitted to

the conference and was then accepted for presentation. After that the paper was submitted for publication. It was acknowledged and eventually published in the International Bulletin of Business Administration (Vol. 6) in October 2009.

Dr. Lozada and Dr. Hunter first met in spring 1997 and throughout the years, they have worked together on several projects along with Dr. Gary Kritz and Dr. Ann Mayo. In 2009, Dr. Lozada and Dr. Hunter had a total of six articles published.

According to Dr. Lozada, “Over the past couple of years the press reported several failures of products manufactured in

China.”

The press reports inspired them to write the paper. Gordon was a student of Dr. Hunter when he wrote the initial draft for the paper.

Dr. Lozada continued on to say that through their award, the Annual Conference of the Association for Global Business “corroborated our instincts that the topic is timely.”

Currently Dr. Hunter is on sabbatical leave during spring 2010. He is working on various projects including a few with Dr. Lozada. Additionally, Dr. Lozada is also working with Dr. Kritz on three different

As the U.S. economy undergoes a longstanding recovery, the current economic issues from the past three years have left a huge impact on children’s education.

The Intersection of Wall Street and Sesame Street was held on Wednesday, February 3 to discuss the impact of the financial crisis on children’s sense of wellbeing and educational attainment.

Organized by members of Kappa Delta Pi and Seton Hall’s Career Center, this was the first program of the year for Public Service Month of February. The event was geared towards student-teachers and educational professionals to develop ways that can help children going through stress due to the dwindling economy.

Dr. Laura Palmer and Dr. Margaret Brady-Amoon were the event’s main speakers. Both women are part of the Department of Professional Psychology and Family Therapy here at Seton Hall University.

Dr. Palmer is the Chair of the department and very active in professional advocacy and stewardship within the counseling psychology field at the national level. Dr. Brady-Amoon is the Assistant Professor in the department who specializes in school counseling, college students, and career development.

Dr. Palmer discussed the U.S. economic timeline explaining that since the recession began in 2007, there have been a growing number of homeless families. This problem has raised questions on how children can thrive and learn without a home.

“This is the beginning of stress placed upon children…when the economic crisis looms over families, problems such as unemployment, child abuse, financial stress, and divorce start to develop,” said Dr. Palmer.

“Not only is it an impact on parents and an impact on the child, but moreover, it is an impact on the child’s school performance…children live with a lot of anxiety and parents aren’t always sure of this,” added Dr. Palmer. Dr. Brady-Amoon discussed how teachers can help change children’s well being through educational attainment in a social and cultural context.

“It seems like we’re putting a lot on you. That’s because we are. You as teachers are frontier in this and have an important role to play,” said Dr. Brady-Amoon.

Both professors advised the teachers to validate student’s feelings through “evidence-based interventions.” Teachers today should consult, refer, and advocate or, in some cases, seek other service and career options.

Contact Beverly at beverly.makarios@student.shu.edu

projects.

Over the years Dr. Lozada has worked with several colleagues from different universities. According to Dr. Lozada, “Collaboration is an integral and most rewarding part of academic research in business.”

Once again, congratulations to Dr. Lozada, Dr. Hunter and Aaron Gordon for receiving the Best Paper Award.

Contact John at johnalex.ceniza@student.shu.edu

THE STILLMAN EXCHANGE

Stillman News

Technologically Savvy Senior Steps on Board with Credit Suisse Group AG

By Constanza Lasso, Stillman News Writer This week’s Standout Stillman Senior, Joseph Signorello III, is by far one of the most energetic and unique individuals at Seton Hall University. Whether Joe is working behind the scenes at the WSOU Seton Hall Pirate Radio, actively promoting his support for the Sigma Phi Epsilon fraternity, or just volunteering his ideas during class he has always had an upbeat personality which makes anyone around him want to smile.

The following interview is but a brief insight into the professional life and the many accomplishments Joe has fulfilled during his time at SHU. Photo courtesy of Joseph Signorello

and repairing computers. When a customer has an issue with using their computer and I am capable of making them work for them, I feel a great satisfaction inside. This is when I realized I could make a career out of this so I jumped from Finance to Information Technology Management.

CL: Before gaining a fulltime job at Credit Suisse Group AG, how would you have described your involvement? What is your current position and how did you obtain it?

JS: Before my fulltime offer I was a summer Intern at Credit Suisse. I dealt mostly with the IT Strategy and Governance departments that map out the bank’s IT strategies. I originally applied for the position like everyone else - via the company’s website, however what ultimately helped me stand out was all the networking I did during the internship. I always made it a point to talk to everyone I met.

CL: When you leave Seton Hall this May, how would you like to be remembered?

JS: When I leave Seton Hall I would like to be remembered as someone who joined the business school not really knowing what to do, however, it was through the excellent guidance at Stillman that I discovered what I wanted to do in life. Professor Rosenthal and the ITM department are a fantastic group of individuals. It is my wish that more people follow my footsteps and consider ITM.

Joseph Signorello is one of a few students with three internships under his belt and a full time offer waiting for him upon graduation at Credit Suisse Group AG

Constanza Lasso: Having worked at Geek Squad, the Office of the County Council, the Union County Freeholder’s & Youth Services Office, and the WSOU Seton Hall Pirate Radio, which would you say was the most valuable experience when applying for a full time position and why?

Joseph Signorello: I think the most valuable experience I gained was from the Union County Freeholder’s & Youth Services Office. It was my first time within a professional work environment and I was excited for the opportunity to get my feet wet. I always thought the first internship was very important because it gives you exposure to the less obvious aspects of working in a professional environment and what office culture is like. It also helps open the door to other professional opportunities.

CL: What is Geek Squad and what were some of your responsibilities there? Did this help instigate your desire to major in Information Technology Management?

JS: Geek Squad is a subsidiary of Best Buy and is a huge money maker for them. They install computers and TVs as well as do various repair jobs. While working in the sales and repairs department I learned a lot about how to interact with people and technology.

This then helped my decision to major in IT much clearer. I really enjoy learning about

CL: What is your advice to other students majoring in Information Technology Management (ITM)?

JS: My advice to anyone majoring in ITM: I suggest getting into consulting first.

Through consulting one can receive the best overview of the IT field as a whole. ITM majors and all undecided business majors should know that there is a huge need for competent IT people in America and a large shortage of IT workers. Specifically to IT majors, my suggestion is not to get so wrapped up in working for an IT company.

CL: How do you suggest they seek full time jobs and take advantage of their Seton Hall experience?

JS: Think outside the box when seeking employment. I never thought an investment bank would put so much emphasis on computers and network. More and more companies find their respective business models becoming more integrated with the use of computers.

No longer is it just the case of the IT department serving company X, now it is company X and the IT department working hand in hand to get a faster trade than the competing investment bank or company Y working with IT to make its supply chain more efficient to lower costs and get the edge on the competition.

The more important technology is to a company, the more they spend on it. IT spending is quite often reflected upon the salaries of a field that many people misjudge as dying.

Contact Constanza at constanza.lasso@student.shu.edu

TUESDAY, FEBRUARY 9, 2010

7

Students Granted a Valuable Opportunity with Alumni Pirate Mentoring Program

By Constanza Lasso, Stillman News Writer In an economic time such as this, it is attending various networking events that have kept many students and alumni from remaining unemployed. Professional networking events are being offered to students almost every day at Seton Hall University.

Many of these events are held by student organizations, such as Alpha Kappa Psi and Beta Alpha Psi, but a large part of the events are held by Seton Hall’s Career Center.

On January 28, the Career Center held an Alumni Pirate Mentor Networking Event. This annual event was co-sponsored by the Golden Key International Honour Society and the Student Alumni Association of Seton Hall University.

As part of the agenda, the program started with a warm welcome from Ryan K. Duffy who then introduced the keynote speaker, Mark E. Ganton.

Ganton is the current principal at Brian J. Ganton & Associates. According to Ganton, personal branding is extremely important and there are several steps one can take to portray a good image of themselves or client.

For example, Coca Cola is one of the highest brand investors and one of the most recognizable products in the world. As Ganton later explained, part of the reason is “A brand is a promise of quality. It is trust in the brand that differentiates it from the competitors.” Many customers will choose Coca Cola over other products just because they are more familiar with the product and the company name.

Another factor Ganton stressed was the major influence many internet search engines and online communities have on one’s personal brand. Facebook, for example, has become an extreme menace to any students applying for a job. Making sure websites such as Twitter, Myspace, and Facebook remain as private as possible is very important. Not all publicity is good publicity.

Following the keynote speaker, the event continued with a small networking session where a specific mentor was assigned to a table while students/alumni

Photo courtesy of Simon Xin He Mark Ganton, keynote speaker and SHU Alumni Board Member; Class of 1991

rotated between tables. Since each mentor had a different professional background, each student had the opportunity to meet at least four mentors that gave them an insight into various potential job choices.

One of the mentors, Prosper Bellizia, J.D., was very eager to meet and converse with all the students. Bellizia works as a criminal defense attorney with the offices in Bloomfield, NJ. As a SHU Alumni Board member, Bellizia has recognized this event as a great opportunity to meet students faceto-face and has been a recurring mentor for various years.

Although he has made himself available through the Pirate Mentoring system on Navigator for various years, many students have not requested his services. Other mentors also proclaimed the same issues exclaiming that they are there to help and students should take advantage of this valuable opportunity.

Contact Constanza at constanza.lasso@student.shu.edu

8

TUESDAY, FEBRUARY 9, 2010

Ethics

THE STILLMAN EXCHANGE

Employee Discount Based on BMI: Healthy Incentive or Inequitable Benefit?

“Whole Foods has recently come under fire for their new employee discount program. The elective program offers larger discounts for employees who have a lower Body Mass Index (BMI) in an effort to promote the company’s healthy image. Is this a fair way to distribute employee discounts, or is it unfair to employees who don’t meet the standards?”

Morgan Tornetta: Sophomore, Journalism Major

Christina Bosco: Senior, Marketing Major

Unfair Measurements and Unfair Advantages Yes, it is good to have healthy employees. Yes, it is wonderful to have a discount on groceries, and the bigger, the better.

But, should my employers have to know my BMI to give me that discount?

Absolutely not.

The numbers that Whole Foods uses to gauge “healthiness” are incredibly suspect.

Things such as BMI, cholesterol, and blood pressure are not necessarily reliable indicators of the healthiness of an employee.

Their policy does not sufficiently consider Americans who have genetic predispositions for poor health or are in other ways unhealthy outside their control.

People with thyroid conditions, for instance, have less control over their weight, and therefore higher BMIs or cholesterol levels than people who don’t have preexisting conditions. Blood pressure can be adversely influenced by genetics and stress levels, too.

The use of BMI as a measure of healthiness, common because it is a better indicator than weight alone, comes under some fire because of certain flaws in its calculations.

According to Medical News Today, a study conducted by the Mayo Clinic found that “BMI is a poor measure of body fat. The measurement of weight does not differentiate between fat and fat-free mass, and fat-free mass is progressively lost with increasing

Stephanie Urban: Junior, Accounting Major

Whole Foods: Just Practicing What They Preach

Whole Foods: Doing What They Do Best

Photo Courtesy of www.wholefoods.com

age.”

Most of the mass which is not fat is muscle, which weighs more than fat. This is why some professional athletes are considered “obese” or “overweight” according to the BMI scale, even if they have a low percentage of body fat.

Healthiness is not based on numbers alone, either. A person could meet all of Whole Foods’ requirements, and still be inactive and not eat properly, but be blessed with a hyperactive metabolism. That doesn’t make them healthy, it makes them lucky.

The standards also favor people of taller builds, as taller people can be heavier than shorter ones before they’re considered overweight. Whole Foods’ discount scale doesn’t penalize those who are considered under-

weight, which is just as unhealthy as being overweight.

If Whole Foods’ motivation for healthy employees was actually to keep their employees healthy and not to save money on health benefits for their employees, perhaps they would have rethought their methods for encouraging healthy habits.

It would be better to recommend attending a gym, organize group exercise in the staff, or perhaps give higher employee discounts on foods such as produce or low-fat dairy products and lower or no discounts on processed foods. Being healthy is about having proper habits, not about figures.

achievement marks for employees who wished to participate in the rewards program. As part of the program, Whole Foods, which already gives employees 20 percent discounts on all products, will increase employee discounts to up to 30 percent based on measurable qualifications such as blood pressure, cholesterol level, not smoking, and body mass index (BMI).

According to ABC News, Dr. Kevin Volpp of the University of Pennsylvania believes that while the program is a “step in the right direction” it won’t necessarily serve to improve the health of all employees, because “some of the strata for different discount levels is based on very fine distinctions that may not make a difference in the real world”.

While this may be true, a program such

as the one instituted by Whole Foods obviously requires certain “cut-off” marks in order to successfully establish tiers for accomplishment, and such tiers need to be able to be based upon solid, quantifiable evidence.

Also, according to their website, Whole Foods is a company which prides itself upon its value of encouraging employees to “educate, inspire and communicate the outstanding quality and benefits of our products to promote a lifestyle of health, balance and well-being.”

Whole Foods employees are people helping to sell the company’s mission to customers and in order to perform their job to the fullest, employees must be encouraged to set the example of healthy living. Through this rewards program, Whole Foods can give employees the initiative to stay motivated.

Rather than receiving nit-picking criticism, I believe that Whole Foods should be commended for their dedication to motivating employers to reach higher standards of healthy living and eating. Whole Foods has not done anything wrong by establishing a new rewards program.

They have not taken away any rewards from “under-qualifying” employees. They have simply decided to give more incentive to those who want to pursue better lifestyles.

It’s no news that obesity and the health risks that are associated with being overweight have become as American as apple pie.

In efforts to combat the dangers that years of unhealthy living and eating have wrought upon today’s society, organizations of every kind have made efforts to encourage people to set aside the bags of potato chips and video-game remotes in exchange for healthier foods and calorie-destroying activities.

At some point, it seems that as Americans we become so accustomed to “low-fat” meal options, candy bar-free vending machines, and lunch-break office gyms, that we’re no longer surprised when French fries get pulled from elementary school lunch menus or when you can only find “reduced-fat” cookies on the grocery shelf.

With all these positive and readily-accepted steps towards healthy living, it’s surprising to hear that when Whole Foods decided to encourage healthy employee behavior with a new rewards program, people began to speak out in opposition.

Many people thought that the company, a grocery store specializing in selling natural and organic foods and products, was setting unfair Photo courtesty of www.howstuffworks.com

Contact Morgan at morgan.tornetta@student.shu.edu

Contact Stephanie at stephanie.urban@student.shu.edu

Whole Foods is pretty well-known for its healthy and organic, yet delicious selection of food, but recently it has been making headlines for different reasons; its new take on employee discounts. In part to help its store environment become even healthier, Whole Foods is offering a new approach to employee discounts.

There are two options; you can either use the traditional 20 percent offered for all employees or participate in a new program that provides its healthiest employees with a larger discount (22%, 25%, 27% or 30%).

So, the lower your BMI and cholesterol levels are, the higher your discount.

However, the key takeaway here is that this new plan is voluntary, something that a lot of people seem to be forgetting.

Yet, despite it being optional, this new plan has still been receiving much negative attention. Some argue that Whole Foods is discriminating against its heavier employees, claiming that BMI is not a good indicator of overall health.

If not, then what else does one measure it by? You can’t measure health in terms of weight, as you can still be healthy regardless of your size. For instance, by nature, taller people weigh more than petite people. Besides, it has been proven that the more you lower your BMI and cholesterol levels, the healthier you become. So what’s to argue?

Some are also arguing that this plan punishes overweight people and rewards the naturally thin. I, however, think it does quite the opposite. It rewards those acting in terms of the Whole Foods mentality; healthy. Although the highest discount rewarded is only an extra 10 percent from the original 20 percent offered, this plan motivates others to earn their employee discount all the while becoming healthier.

Aside from the motivational aspect, on top of taking part in this plan, employees are given free health screenings to help track their progress. So now, not only are people participating to save more money on purchased items, but also to help maintain their overall weight and health. If that’s not enough incentive, I don’t know what much else is.

Becoming healthier in general is not easy. Losing weight is even harder, especially when going at it alone. Whole Foods’ new discount program ensures that you don’t have to, as it acts as the perfect support system. In fact, this approach is actually the equivalent to a corporate office sponsoring Weight Watchers (which a lot do) to help their employees lose the weight.

For these reasons, I find no problem with this new program. Whole Foods is simply doing what it does best; promoting health.

Contact Christina at christina.bosco@student.shu.edu

The Stillman Exchange proudly offers students, faculty, and administration the opportunity to write about their views on controversial topics.

These opinions are to be read as the opinions of individuals and not the views of the newspaper as a whole.

THE STILLMAN EXCHANGE

TUESDAY, FEBRUARY 9 , 2010

9

Editorials NBC Saves Leno, Conan Thinks Destruction

By Anthony Crisci, Editorials Editor Hollywood has a sore subject floating around the last couple of weeks, regarding the late night talk shows.

Conan O’Brien and Jay Leno are two of the most popular figures in Hollywood when it comes to late night television. But what has been going on lately? NBC decided that the infamous Tonight Show needed a little change of scenery when they gave

Conan O’Brien the hosting seat. Following the switch, the network also decided not to leave Leno out in the cold, so they presented him with “The Jay Leno Show” airing at 10 p.m.

The idea NBC had seemed to have no flaws, but seven months later the situation could be described with any word but flawless. NBC found out the hard way that Jay Leno couldn’t survive in the 10 o’clock world, and even with their new rookie doing a great job at 11:35, they still felt the

need to protect their veteran.

NBC’s new grand idea is to move Leno back to his glorified 11:35 spot, and push Conan back to the 12:05 timeslot held

by Jimmy Fallon. Obviously, this would push Fallon out of the mix completely, and NBC didn’t show much concern towards the situation. Conan had a choice to make; either kick Fallon off the air and agree to NBC’s program, or take his millions of dollars promised in the contract and just relax.

O’Brien took the greatest approach possible when he took out a full page in the New York Post describing his situation to his beloved fans; “So it has come to this: I cannot express in words how much I enjoy hosting this program and what an enormous personal disappointment it is for me to consider losing it. My staff and I have worked unbelievably hard and we are very proud of our contribution to the legacy of The Tonight Show. But I cannot participate in what I honestly believe is its destruction”.

NBC needs to keep things the way they are and just commit whole-heartedly to their decisions, and learn to live with them. The company couldn’t handle a talk show on primetime television and instead of making valid attempts to solve the prob-

lem; they want to automatically do what is best for business, even if it costs them millions of dollars. Thus being said, it seems that they are simply desperate at this point.

Since the contract that Conan received promised him The Tonight Show at that specific time, the money has to be paid no matter what his decision is.

The Tonight Show is a legacy, and every American knows to tune in to NBC following the late local news and share a few laughs with some of the greatest personalities on television. Whether it was Johnny Carson, Jay Leno, or even seven month host Conan O’Brien, the show is infamous and a great part of American television. NBC will also have to make the decision on what is going to happen with the Tonight Show if Conan decides not to stay on, resulting in veteran Jay Leno regaining the throne.

Contact Anthony at anthony.crisci@student.shu.edu

Resting On Laurels Results in Rocky Times for Japanese Companies

By Meg Reilly, Assistant Managing Editor

The Stillman Exchange The Official Business Publication of Seton Hall University Executive Board Managing Editor Gerardo Pecoraro Assistant Managing Editors Ian Mehok Margaret Reilly

Editorial Board

Assistant Editors Money and Investing Bryan Murawski Stillman News Beverly Makarios Ethics David Guzik

Money and Investing Ian Mehok

Sports Kayla Mjaatvedt Travis Tosoni

Stillman News Tiffany Dindial

Domestic News Morgan Tornetta

Ethics Caitlyn Cafferty

International News Kaitlin Tonti

Editorials Anthony Crisci Sports Rich Kimsey

Faculty Advisers Karen Boroff, Ph.D., Dean Michael Reuter, M.B.A.

Domestic News Rachel Ressler

E-ma il stillmanexchange@shu.edu

International News Danielle Storm

Website www.stillmanexchange.com

International Business Alex Cohen

Twitter stillmanXchange

Website Manager Christine Wotton

Fa cebook The Stillman Exchange

About The Stillman Exchange is the first undergraduate published business newspaper in the United States. The Stillman Exchange is published on a bi-weekly basis from the Center for Securities Trading and Analysis in the W. Paul Stillman School of Business at Seton Hall University.

allowed the company to maintain low cost of production, but exposed itself to the risk that even a small defect could cause global chaos for the company. Also, Japanese companies rely on strong relationships with usually only one supplier, which most likely caused the delay in admittance to the public.

Japan has made its name as the frontrunner for high quality, low cost goods in the auto and tech industries around the world; that is, until recently.

Aside from the well-known recalls of 8.1 million Toyotas due to stickPhoto courtesy of Steve Cotler ing accelerators, many popular Japanese companies have been facing tough times upholding their reputation. Japan Airlines filed for bankruptcy, Honda is suffering from smaller scale recalls, and Sony is losing its competitive edge.

Honda, Japan's number two automaker, is recalling 646,000 cars worldwide due to a faulty window switch. Meanwhile, Sony has lost its lead in consumer gadgets to forward companies such as Apple Inc. and has Tokyo, Japan’s capital and center for business, struggles to suffered its own quality mishaps. keep its global reputation alive Sony met much success in the 1980s with the release of the Walkman, Many Americans are puzzled that their but was slow to make the leap into digital complaints sent to Toyota branches in music players. It has been overcome by the America have not been addressed and that viral popularity of Apple's iPod, as well as they have recently heard news from a variby cheaper gadgets and consumer electron- ety of fronts at Toyota. Japanese compaics from other Asian competitors. In 2006, nies follow a strict chain of command and Sony recalled nearly 10 million laptop bat- all issues concerning American Toyotas teries after some caught on fire. were in the end sent to the Japanese headAmerican consumers cannot fathom quarters and often times lost in translation. how the once steadfast Japanese export In addition, it is common Japanese business market has turned into a nightmare of practice to receive counsel and approval recalls and failures. Toyota owners are from a variety of upper managers before a wondering why it took the company so final decision is made. long to address issues with accelerators as Although Toyota’s image has been tarcomplaints were filed since 2007. nished on the global front, the automaker’s Unfortunately, unbeknownst to American Japanese customers are confident with the Toyota car owners, Japanese business dif- vehicle that conquers the roads and resemfers greatly from American business prac- bles Japan’s success as an international tices and could explain why these problems entity. arose.

Toyota adopted the practice of using Contact Meg at the same part across a range of models that margaret.reilly@student.shu.edu

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TUESDAY, FEBRUARY 9, 2010

Sports Business

THE STILLMAN EXCHANGE

Olympics strive to protect against ambush marketing

By Anthony Crisci, Editorials Editor The Olympics have been slowly losing strength in terms of popularity, but the Games still control a large market share with

no hassle, and are working to protect sponsorship deals from weakening.

The most popular international sporting event still controls the money flow in the sports world, providing a slim number of

Photo courtesy of msn.com

Lindsey Vonn’s sponsors hope their deals won’t be diluted by ambush marketers with unofficial ads.

positions for the most important sponsorships. For a company to have its name next to the symbolic Olympic emblem is an international iconic statement, and proves a very successful corporation.

Sponsorships for the Olympics are hard to come by, and a flourishing business is willing to pay to become a primary sponsor for the Games.

This title is so competitive that lately companies have been proposing ambush marketing campaigns. These campaigns include companies “unofficially” promoting their product in the Olympics without being an official backer.

This is not a new problem within the Olympics, and has happened more than once. During the 1984 Olympics Kodak sponsored TV broadcasts even when Fujifilm was the official sponsor.

Prior to the Olympic Games in Beijing there was never a significant ambush market campaign, making it more than four years since reprimands have been handed to these ambushers. The economy plays a huge role in the ambush movements.

The window that the Olympians have to take advantage of these sponsorships is very small, and has become even smaller as of late. Recently, the Olympic Committee put Rule 41 in effect which prohibits athletes from participating in any campaigns held by

a non-Olympic sponsor.

In order for a Olympian to promote a company that is a non-Olympic funder, the Olympic committee must present that athlete a waiver.

“When I first got into the business of repping Olympic athletes, Rule 41 was for just the two weeks of the games and it was supposed to be a buffer against ambush marketing,” Olympic agent Evan Morgenstein said describing his feelings as an Olympian protector.

“Now it’s essentially five weeks long. I just hope all the U.S. Team medals, otherwise their opportunity to generate endorsements and paid opportunities just might end today.”

The Olympic Committee uses this rule to help prevent ambush marketing to happen and potentially hurt the Games as a whole.

On the other hand the rule hurts Olympians on the count that they cannot sign sponsorships with non-Olympic backers, as these companies are a long shot to be granted waivers.

Contact Anthony at Anthony.crisci@student.shu.edu

NASCAR on FOX ad sales sprint to finish line

By Chris Jandreau, Sports Business Writer NASCAR on FOX has experienced improvements in television ad sales this year. The program has already sold 80 percent of its inventory for the Daytona 500, which is the first race of the season, and is expected to sell out. The ad sales are expected to increase 8-10 percent compared to last season for FOX’s 13-race schedule.

The increase in ad sales is aided by the increased ad market, which has seen improvements in almost all sports. This is great news for NASCAR on FOX, which had its worst ratings of the decade last season.

This year, to increase ad sales, FOX is attempting to get advertisers to buy more onscreen ads. The sponsors that commit to these on-screen ads will get more television coverage, including in-car cameras. Since the sponsors will have more on air coverage during the race, they will be getting much better exposure.

Image impact data, provided by FOX,

showed that a sample of nine NASCAR sponsors that bought this ad system last season, achieved a branding value increase of 301 percent, which adds up to a total of $17.4 million over the 13-race schedule.

The NAPA race team experienced this great increase last year after buying the extra on-screen ads. The company sponsors Michael Waltrip, who finished 33rd in the final standings last season. Despite the low finish, NAPA still had plenty of on-air coverage and made $16 million for the sponsorship.

If NAPA did not purchase the extra onair coverage to its car sponsorship, its value last season would have only been $2.79 million. Based on the car’s performance, NAPA would not have gotten as much air time.

Not only does FOX have increased ad sales for sports on television, but FOXsports.com also has a 30 percent revenue increase.

Contact Chris at chris.jandreau@student.shu.edu

Photo courtesy of BusinessWeek

NASCAR’s popularity is evident through the sponsorships it has been attracting for races on FOX.

Vikings hoping for a Favre comeback from business standpoint

By Tony Cramond, Sports Business Writer

Photo courtesy Chicago Sun-Times

Another year, another Brett Favre story of whether he will or will not retire. This seems as if it has been are reoccurring theme for Favre in the last three years of his career.

First, he did it to the Green Bay Packers in 2007, who eventually traded him to the New York Jets.

Then after his first and only season with the Jets, Favre struggled with retirement again, and ended up with the Minnesota Vikings, and lead them to the NFC Championship. Now, the Vikings get the chance to play the waiting game, and wait for the future Hall of Famer to make his choice.

But this is not just an issue of wins and losses. The Vikings recorded a record year for earnings and it has to be said that Favre was the major reason for this happening.

Favre’s No. 4 jersey was the highest selling jersey throughout the league.

Ticket sales also went through the roof a few days after Favre announced that he was going to join the team. In addition, the Vikings were able to lock down some key sponsorships that were desperately needed because of the lack of funds that the Metrodome was generating.

So what are the Vikings going to do? Do they tell Favre that they are not going to wait for answer when training camp starts, or are they going to let Favre take his time and drag his decision out for so long that it is the only thing that we hear about on ESPN? Favre has been the boost that the team has needed and helped to push them into the elite teams of the NFL this season. Only time will tell if Favre will actually finish his two year contract, but if history tells us anything, time is what Favre is exactly going to get.

Contact Tony at anthony.cramond@student.shu.edu

Sports Business

THE STILLMAN EXCHANGE

Christie plans to revitalize Meadowlands

By Robert Szeluga, Sports Business Writer Governor Chris Christie is determined to change the current state of New Jersey sports. The newly-elected governor organized a seven member commission earlier this month in hopes to save what has become struggling sports, gaming, and entertainment industries in the state.

The group will be led by Jon Hanson, a former chairman of the New Jersey Sports and Exposition Authority, also known as the NJSEA. Other notables selected include former Yankees and Mets pitcher Al Leiter, and Robert E Mulcahy III, the former president of Sports Authority and athletic director of Rutgers. The commission is to give a final report by June 30, and will report on an ongoing basis for important topics that need to be addressed before the deadline.

There are many topics that the commission will have to address, including the decline of Atlantic City, horse racing, the arena and stadium situations, and the Xanadu project, which was scheduled to be completed in 2007.

“All of these things were at one time enormous assets to the state of New Jersey that contributed to the bottom line, both from a tax perspective and an economic perspective,” Christie said. “We need to return those to the positive side of the ledger.”

The potential of a NASCAR track in the Meadowlands has also been proposed, but no decision has been reached.

Atlantic City is one of the main areas Christie wants to address, primarily to protect the 38,000 casino jobs and the hundreds of millions of dollars returned to the state every year. The city and its casinos have struggled due to the economic downturn, a deemed unsafe area, the smoking ban, and greater competition in the Northeast.

The current state of Horse Racing is also not as bright, as state run tracks are slated to lose an estimated $22 million this year

alone. The arena situation has raised concerns as well. There are now two competing arenas within ten miles of each other. The Prudential Center has produced an excess amount of empty dates Photo courtesy of NJ.com

TUESDAY, FEBRUARY 9, 2010

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Archie Manning proved valuable Super Bowl week marketing option

By Scott Kim, Sports Business Writer

Improvements to Xanadu Meadowlands is on the top of Christie’s to do list

and will cost Newark taxpayers in order to fill the revenue hole.

Another issue that will be examined by the commission is the very existence of the NJSEA. NJSEA operations range from the venues in the Meadowlands to the Monmouth Park Racetrack to the new and historical Atlantic City Convention Centers. Due to a budget shortfall, $38 million will have to be made up in state taxes in 2010 because of the group.

Overall, the commission has a lot of work to fix this situation, and the report on June 30 will lay the blueprints on how to do so.

Contact Robert at Robert.Szeluga@student.shu.edu

For the third out of the past four years, Archie Manning had a stake in the Super Bowl, and this year he made the most of it on the marketing scene.

With both the Saints and Colts making it to Miami this year, Archie Manning holds ties to both the teams in the Super Bowl. His connection to the Colts is that his son, Peyton Manning, is the star quarterback.

As for the Saints, the eldest Manning was the quarterback for twelve years. His connection with the Saints doesn’t just end there either. Ever since Drew Brees was a teenager and approached Archie after a speech he gave in Austin, Texas, the two have been friends and still text each other even today. Having connections to both the Saints and the Colts has meant multiple marketing opportunities for the ex-NFL quarterback.

Not many people have such strong connections to both teams that are participating in what is one of the most watched events of the year each and every year. Last year, the

FedEx, PGA team up to create greener golfers

By Ian Baker, Sports Business Writer In order to uphold their commitment to sustaining the environment, FedEx has launched the FedExCup Fore! Ever Campaign during the PGA TOUR’s 2010 season.

FedEx is teaming up with the PGA TOUR, non-profit environmental education foundation Audubon International, and youth golf organization The First Tee. The goal of the campaign is to teach youth of The First Tee about sustainable golf practices and help make eco-friendly changes in communities that host PGA TOUR events.

The campaign is providing grants to six public golf courses used around the country

by The First Tee. FedEx and the PGA TOUR

are identifying and making improvements to the six courses around the country.

Improvements will be in PGA TOUR communities starting at the Brookside Golf Club in Pasadena, California. Members of FedEx and The First Tee will aid in making the improvements to the courses.

Audubon International will determine the improvement needs for each course.

Some improvements will include planting indigenous trees, building bird houses, neutralizing property and fence lines, and revitalizing ponds and waterways.

“The FedEx Cup Fore! Ever program will help teach our young golfers about the importance of respecting and restoring the earth’s natural greenscape,” Kelly Martin, the First Tee Executive Director said to web-

wire.com. “It is such a valuable lesson.”

FedEx is also working with Audubon International to create a curriculum called “Greener Golfer.” This curriculum will teach young golfers involved in The First Tee about sustainable golf practices. The course is intended to be used by The First Tee chapters throughout the country.

PGA TOUR Pro Anthony Kim is excited to see the changes to the game.

“When it comes to making the game of golf more sustainable, every change is a positive change,” Kim said. “It is great to see so many organizations come together for a program that will inspire the golfers of today and tomorrow to make their game greener.”

Contact Ian at ian.baker@student.shu.edu

NFL, players’ association at a standstill

By David Rind, Sports Business Writer While the NFL is drawing significant ratings on TV and the Super Bowl continues to be arguably the most popular sporting Photo courtesy of Washington Post

NFLPA boss Demaurice Smith is fighting for the players for a better CBA.

event in the U.S. each year, there is serious discord between the NFL and its players union that will threaten the league for some time.

The National Football League Players Association (NFLPA), the labor union of the NFL, is in serious battle with the NFL over the Collective Bargaining Agreement (CBA). The current CBA is set to expire in March of 2011, and it has been widely reported that there is no end to the discussions, and no new agreement will be reached in time.

The main disagreement has come over players salaries. It has been speculated, but not confirmed, that the NFL wants players to give more than 18 percent of their salaries back. The NFL has cited that due to the less than favorable economic conditions, the players need to join in the cost-cutting. Teams have seen a drop in sponsorship, luxury box rentals, and even ticket sales in some cases, and teams have felt the impact.

On the other side, the players want to see proof that the economy is warranting pay cuts. The NFL doesn’t want to do this, as they argue it would not help avoid a work stoppage. As the players make the league operate as it does, they feel that they deserve as much money as possible.

Another large issue at the forefront of these talks is the rookie pay scale. The first pick of the annual NFL draft can be awarded a contract close to $50 million, without even playing a down in the NFL. For example, the first pick in the 2009 draft, received a $41.1 million deal. These deals can drain teams of finances and affect the salaries of more tenured players.

In short, the NFL wants to get pay scales for players down in order to offset the expenses needed to finance an NFL franchise. The NFLPA is determined to let this happen, and only time will tell it leads to a future agreement or possibly a league lockout.

Contact David at david.rind@student.shu.edu

Photo courtesy of NY Times Archie and Peyton are attractive endorsements.

Super Bowl attracted 98.7 million viewers and this year figures are expected to improve. Archie is using these connections to both teams to his advantage.

According to Darren Rovell of CNBC, Archie is making appearances for Prilosec OTC, Canon and Reebok in addition to speaking for Gatorade, Mastercard, Sprint, and FedEx. With these companies aligning their brands with Manning, they received an endorsement of the spirit of the Super Bowl, rather than an individual team. Since Manning links to both the Colts and the saints, he offered a doubly valuable option during the Super Bowl festivities.

Creativity was key with incorporating Manning into a marketing plan because he offered many different facets, but companies that used him were sure to come away with a win.

Contact Scott at william.kim@student.shu.edu

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TUESDAY, FEBRUARY 9, 2010

Stillman Sports

THE STILLMAN EXCHANGE

Woods’ return to WGC Accenture Match Play in question

By Kayla Mjaatvedt, Assistant Editor

It is reported that Tiger Woods is making a quick comeback to his beloved game of golf, just in time for the WGC Accenture Match Play Championship in mid-February.

Woods, the world’s number one golfer, has not played since last November. It seems as though he has had a dramatic change of heart since the announcement late last year that he was giving up golf "indefinitely" to concentrate on “being a better husband, father, and person.”

A definite return from Woods is still unconfirmed, but golf fans are hopeful. According to an article from the Arizona Daily Star, even Match Play officials are unsure of whether or not Woods will be joining the rest of the players in the tournament.

“We don't know anything officially yet, but wouldn't that be nice?" said Wade Dunagan, executive director of the Match Play event. "It would mean we'd get Tiger on his

return two years in a row. Very cool.”

It was only last year that Woods made his first comeback to the Match Play Championship after suffering from a knee injury lasting about seven months.

The Match Play tournament will take place from February 17-21 in Marana, Arizona. It frequently features the top 64 golfers in the world. However, if Woods does not return, Match Play would commence without its two biggest stars. Phil Mickelson is said to be missing the tournament for family-related reasons.

Dunagan, along with many fans of golf, think a return from Woods “would be terrific” for the Match Play tournament, says Arizona Daily Star.

“A lot of fans would be very surprised,” he said. “But we'd welcome the chance to see the world's No. 1 golfer.”

As PGA Tour rules state, a golfer must commit to tournament by 5 p.m. on the Friday before the event is played.

Photo courtesy of Augusta Chronicle

A definite Woods comeback will not be decided until February 12.

Contact Kayla at kayla.mjaatvedt@student.shu.edu

Twins, Mauer looking to reach contract extension Stillman Sports Super Seven

By Ian Baker, Stllman Sports Writer

At the young age of 27, Joe Mauer is one of the best offensive and defensive catchers in baseball. So with his contract

free agent first baseman Mark Teixeira a contract worth $160 million.

It is no secret that the teams that are willing to shell out the big bucks are the teams that usually get results. In thirteen of

Photo courtesy of MLB.com

Mauer won the 2009 American League MVP but may plan on leaving the Twins after the 2010 year.

ending after the 2010 season, would resigning with the small market Minnesota Twins be a good move for baseball?

In the history of free agency, the wealthy teams in Major League Baseball usually do not mind offering huge contracts to the most talented free agents. For example, last year the New York Yankees offered

the past fourteen seasons the Yankees have made it to the playoffs, and in five of those trips, they have won the World Series.

So with the big money teams offering some of the richest contracts in baseball history, how likely is it that Mauer will resign with the Minnesota Twins? Mauer is a native of St. Paul, Minnesota and has connections

in the state, so it would seem that Mauer is pretty comfortable playing close to home.

“I definitely enjoy playing in front of my family and friends in Minnesota,” Mauer said in a call with ESPN writer Jim Caple.

“It’s all I really know”.

In 2009, Mauer led the American League in hitting, on-base percentage, and slugging percentage. Mauer was also a gold glove catcher and was the MVP of the American League. Mauer also told Caple that he would have rather won the World Series than the MVP award.

Mauer also said he believes that the Twins have what it takes to win it all.

“Over the years we've proven that we can get to the postseason, and my experience has shown that any team that's hot can win it. It's a matter of whoever is playing hot at that moment. If we can get to the postseason, we definitely have a chance."

The Twins have definitely showed that they have what it takes to make it to the playoffs. They have won the AL Central division title five times in the past eight years.

Twins manager Rod Gardenhire said to columnist Mike Bauman, "I think everybody knows what needs to get done here. From our owners to our general manager to our fan base, we all know what everybody wants”.

It is no doubt that the Twins know what they want and what they need to do in order to keep Mauer in Minnesota.

The Twins and Mauer’s agent Ron Shapiro are currently in talks of a contract extension for the catcher. Kelly Thesier of mlb.com says that the feeling from Minnesota is not so much a feeling of if the Twins will resign Mauer, but more a sense of when the Twins will resign Mauer.

It seems like a good thing not only for the Twins but also for baseball if Mauer were to stay at home and remain with a small market team.

Contact Ian at ian.baker@student.shu.edu

President Pushes New Playoff System ... continued from page 1 However, whether or not the BCS is “fair” or not, or the potential profits in a playoff is not the real issue at hand here. What place do politicians have in the decision making for sports on the college or professional level?

Congress investigated performance enhancing drug use in professional baseball, and that only created a bigger mess than already existed. Not to mention the public outrage that stemmed from the investigation and public hearings which spent taxpayer’s dollars trying to clean up a sport that already had a system in place to counter the problem.

Now exists this problem with the BCS, but what do President Obama and Senator Hatch have to do with regulating the postseason

of college football? In a country that is starting to recover from a massive recession, with an elevated unemployment rate, and a supposed “climate in crisis”, it makes one wonder just what the priorities are in Washington.

The current leaders in the capital should consider taking a step back and reassessing their concerns, and put regulating sports down on the list of precedence. Our Commander in Chief and those around him should not focus on problems in sports, but on those issues that exist that are far more prominent than colligate athletics.

Contact Matt at matthew.bartel@student.shu.edu

7. Former Atlanta Thrashers star forward Ilya Kovalchuk was traded to the New Jersey Devils in a five player blockbuster deal. Kovalchuk was dealt to the Devils after turning down a 12-year, $101 million contract extension from Atlanta. Over the last seven seasons, Kovalchuk has led the NHL with 328 goals.

6. The Detroit Tigers and Justin Verlander have reached an agreement on a contract extension. The star pitcher will be with the Tigers for the next five seasons.

Last year, Verlander won 19 games and led the majors with 269 strikeouts.

5. The United States men’s ice hockey team that will be competing at the Vancouver Games will be without the service of two of their best defensemen.

New Jersey Devils defensemen Paul Martin and Toronto Maple Leafs defender Mike Komisarek are both out with injuries.

4.) New York Jets head coach Rex Ryan will not face fines from the NFL for his obscene gestures at a recent mixed martial arts event. Ryan was pictured giving the middle finger to one of the fans attending the fight. The Jets fined Ryan $50,000.

3. Los Angeles Lakers coach Phil Jackson became the franchise’s winningest coach.

A win over the Charlotte Bobcats on February 3 earned Jackson his 534th win with the Lakers, passing legendary coach Pat Riley. Jackson is also the winningest coach in Chicago Bulls history.

2. With National Signing Day completed for college football, the Florida Gators finished with the top recruiting class.

Florida landed the number one class of incoming players, signing four of the top ten nationally ranked high school players.

1. The Jamaican bobsled team that hoped to compete in the Vancouver Games fell short in qualifying. The team from Jamaica failed to make the cut in the event, but they still have a slight chance of entering the competition if another nation withdraws. The team is still hopeful to qualify the 2014 Winter Games in Sochi, Russia.

THE STILLMAN EXCHANGE

Domestic News

Support for “Don’t Ask, Don’t Tell” Wanes

By Padamavathy Sonti, Domestic News Writer

proponents of the “don’t ask, don’t tell” law could be implemented in a “fairer manner.”

Due to the rising criticism of inaction from gay activists, President Obama

with legislation,” Speaker of the House Rep. Nancy Pelosi (D-CA) stated. “But we’ll have to examine and see what the In the first week of Feb., top military model is for what the review is.” officials and other high ranking officials “This successful policy has been in including effect for the over 15 Chairman years, and of the Joint it is well Chiefs of underStaff and stood and President predomiO b a m a nantly announced supported their supby our port for a military at repeal of all levthe “don’t els…” ask, don’t Senator tell” law.

J o h n In a McCain Congress(R-AZ) ional hearcommenting on Feb. ed, “At a 2, 2010, Photo courtesy of the New York Times t i m e A d m i r a l Defense Secretary Robert Gates and Admiral Mike Mullen, Chairman of the Joint Chiefs of Staff, removed their support when our Mike a r m e d for the military’s “don’t ask, don’t tell” policy.

Mullen, forces are Chairman of the Joint Chiefs, and Defense announced that he would support the fighting and sacrificing on the battlefield, Secretary Robert Gates supported the idea repeal. “This year, I will work with now is not the time to abandon the policy.” of repealing “don’t ask, don’t tell” in order Congress and our military to finally repeal Senator Carl Levin (D-MI), the to enable gay men and women to serve the law that denies gay Americans the right Chairman of the Senate Committee on openly in the military. to serve the country they love because of Armed Services, stated that he plans to pro“Don’t ask, don’t tell” is a policy that who they are,” stated the President during pose a moratorium, which would prevent allows gays and lesbians to serve in the the State of the Union address. the discharge of any further gay troops. The military as long as they don’t reveal their On Wednesday, Retired General Colin moratorium would be included as an sexual orientations. Originally passed in Powell announced that he too favored the amendment to an upcoming defense 1993, the law caused 13,000 discharges. repeal .“In the almost 17 years since the authorization bill. However, it is uncertain “No matter how I look at the issue, I “don't ask, don't tell” legislation was whether this proposition will have enough cannot escape being troubled by the fact passed, attitudes and circumstances have votes to pass in Congress. that we have in place a policy which forces changed,” he stated. This announcement In an MSNBC interview, Vice young men and women to lie about who was a departure from the 1990’s, when he President Joe Biden stated that the White they are in order to defend their fellow cit- was a strong supporter of the law.

House hopes to “eliminate the policy” by izens,” stated Admiral Mullen, the According to a USA Today/Gallup the end of the year.

Chairman of the Joint Chiefs of Staff.

Poll from June 2009, 69 percent of In his testimony, Gates stated that the Americans are in favor of lifting this ban.

Contact Padmavathy at Pentagon would conduct a year-long Congressional members from both padmavathy.sonti@student.shu.edu review to examine the implications of such parties, however, remain skeptical about change. In addition, he called for a 45-day the repeal. review to determine whether the current “It would be my preference to go first

Maryland Corporation Runs for Congressional Office

By Liam Brereton, Domestic News Writer

“Until now corporate interests had to rely on campaign contributions and influence peddling to achieve their goals in On February 2, Murray Hill, a Silver Washington,” the company stated in a press Springs, MD,based public relations firm, release. “But thanks to an enlightened announced its candidacy to run for a seat in Supreme Court, now we can eliminate the Maryland’s eighth congressional district. middle man and run for office ourselves.”

Citing last In a five - four month’s Supreme majority the Supreme Court ruling that Court decided that corporations can corporate funding provide unlimited counts as a type of funding to political speech and that under campaigns, Murray the first amendment Hill has gone an it is unconstitutional extra step and to limit that right. declared its candiThe four dissenting dacy through a votes feared that “designated unlimited corporate human,”Eric funding would corPhoto courtesy of Murry Hill Inc. Hensal. Hensal is rupt democracy and also the company’s Murry Hill, a Maryland based PR firm, is running the elective process. president.

Though corporafor congressional office.

Generally tions have been thought to be a satirical campaign, Hensal involved in a limited capacity in prior polithas insisted he is actually being serious. ical campaigns, Hensal and Murray Hill are However, he has so far provided the cam- thought to be the first “corporate person” to paign with a healthy dose of irony. run for office.

In addition to filing paperwork and selecting a spokesman, the company has also released a television ad. The ad, which can be viewed on Youtube, uses stock

“Now we can eliminate the middle man and run for office ourselves.”

-Murray Hill phrases and inspirational music mixed with sarcastic references to the presence of business in government. Due to the Supreme Court’s recent decision, the ad says, Murray Hill can run for office. It proclaims “We bought it! We paid for it and we’re going to keep it.”

By Saturday, February 6, the campaign’s Facebook page had 2,334 fans, and a goal of 700 more by Monday morning.

Hensal and Murray Hill’s opponent in the race is incumbent Congressman Christopher Van Hollen Jr. (D), who has publicly opposed the Supreme Court ruling.

TUESDAY, FEBRUARY 9, 2010

13

News Briefs Tea Party Convention Wants to Become “Serious Political Force” National Tea Party Convention organizers took what they thought was a step towards their goal of becoming a political force by throwing out anyone deemed “too crazy.” This was an effort to shed the lunatic stigma with which they say they have been branded. Judson Philips, founder of Tea Party Nation, the social networking group which sponsored the convention, believes that the movement is maturing. They aim to elect a conservative Congress in 2010 and a conservative president in 2012, and are forming political action committee to help them achieve that goal.

Scientists Find Evidence of Color of Dinosaur Evolutionary biologist from Yale, Richard O. Prum, and his team have used feathers from a fossil of the dinosaur Anchiornis huxleyi to determine the color of the creature’s body. The feather remains contain pigment sacs called melanosomes that were used to reproduce the color of the dinosaur’s feathers. This is the first time scientists have been able to determine a dinosaur’s colors from a fossil with absolute certainty.

Harvard Poll Finds Reasons Parents Did Not Receive H1N1 Vaccine A poll of adults conducted by Harvard School of Public Health suggests that respondents considered the H1N1 pandemic to be over. The results show that the most common reason that parents did not receive the vaccine was that they thought that the threat of swine flu had passed. The second most common reason was fear of the vaccine itself.

Jackson’s Doctor to Face Charges Monday The doctor who was treating Michael Jackson at the time of his death will be charged with involuntary manslaughter. Dr. Conrad Murray prescribed Jackson the surgical anesthetic propofol, which was incorrectly used as a sleep aid, and an overdose of which caused his death.

Retired NYPD Officials Question Crime Reports Retired captains and higher-ranking officials from the NYPD worry that the pressure to bring down annual crime rates may lead to the manipulation of crime statistics reports. Officials cite examples of precinct commanders who use eBay and other sources to find values on stolen goods lower than those provided by the victim to reduce the number of grand larcenies.

Others also suggest that aides and precinct commanders try to persuade victims not to file crime reports.

Military Bases to stock Plan-B Based on the recommendations of the Pentagon’s Pharmacy and Therapeutics Committee, all U.S. military health facilities will now carry the emergency contraceptive known as the “morning-after pill.”

Current military policy is to send any woman who learns she is pregnant while in a war zone back to the United States. Plan B is already available in most military hospitals, and in virtually every civilian pharmacy and hospital. This decision will allow for more uniformity in military organizaContact Liam at tions, said a Pentagon spokesman. liam.brereton@student.shu.edu

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TUESDAY, FEBRUARY 9, 2010

Domestic News

THE STILLMAN EXCHANGE

Terror Trial’s Location Uncertain After First Conviction

By Renee Callender, Domestic News Writer “Lady Al-Qaeda” was convicted for attempted murder and weapons possession in a Manhattan courtroom on Feb. 3, as concerns about where to hold terrorism trials continued to be risen.

Aafia Siddiqui, a Pakistani neuroscientist accused of trying to kill American military officers in Afghanistan, was found guilty on all seven counts against her.

During her trial, there were a number of outbursts from the defendant that required her being removed from the courtroom.

When the verdict was announced, Siddiqui stated that, “This is a verdict coming from Israel and not from America.

That’s where the anger belongs.” Her lawyers hope to appeal the verdict, questioning whether she was sane enough to stand trial.

Amidst this news of a terrorism trial being successfully held in Manhattan, the Obama administration is currently looking

for other locations to hold the trials of the September 11th terrorists. This change in policy has stemmed from New York officials requesting that the President look elsewhere to hold the trials.

Mayor Michael Bloomberg changed his mind after being told of its costliness, which is being reported as $200 million per year, and the disruption it could cause to the financial district in Lower Manhattan. If it was held in New York City, Police Commissioner Raymond Kelly has stated that he would have to establish unannounced vehicle police checkpoints, vehicle searches, rooftop countersnipers, canine patrols and hazardous-materials and bomb squad personnel ready to respond.

The loss of support from New York City officials for the trials stemmed from the way that they were first notified by the Obama administration. Attorney General Eric Holder called Mayor Bloomberg and Governor David Paterson a few hours before he made the public announcement on November 13 about the trials being held in

New York City.

Officials reportedly felt that the Obama administration did not make an effort to ask officials their opinion on the trials.

The Justice Department is currently looking at military bases and prison complexes to move the trials to. Julie Menin, chairwoman of the Community Board that represents the area where the trials would be held, suggested in a New York Times op-ed article that the trial be moved to Governors Island, off Manhattan. Some have suggested the Eastern District of Virginia, where other terrorism trials have been held, or the prison in Illinois that has been proposed as the place to move Guantanamo detainees.

Others have mentioned the federal courthouse in White Plains, which is 30 miles north of Manhattan, and Newburgh, which is 60 miles north of Manhattan.

Wherever the trials are eventually held, President Obama is trying to assist with the cost by setting aside $73 million for the trials, to avoid anyone being overburdened with the security costs. This funding would

Photo courtesy of NYDailyNews

Lady Al-Qaeda was convicted on Feb. 3 of attempted murder.

not be available until October 1, if Congress approves the funding. Republicans in Congress have already stated that they will try to block financing for the civilian criminal trials when it comes.

Contact Renee at renee.callender@student.shu.edu

MA Junior Senator Scott Brown Sworn in a Week Early

By Amanda Genabith, Domestic News Writer Senator-elect Scott Brown (R) of Massachusetts was sworn into office on Thursday, Feb. 4, a week earlier than expected.

His official reason for the rush was that his certification was completed and he therefore saw no reason to wait. Speculation has abounded, however, saying that his early swearing in is an attempt to rob the Democrats of their filibuster-proof majority before any bills could pass.

The Senator-elect won a major upset victory Jan. 19, against Martha Coakley (D) to fill the seat vacated by the late Senator Edward Kennedy who died of brain cancer Aug. 25, 2009.

The original date planned for the swearing in was Feb. 11. This date provided the Massachusetts government enough time to complete the certification for Senatorelect Brown. However, Brown requested to be sworn in earlier.

The letter asking for the earlier date stated that “[Senator-elect Brown] has been advised that there are a number of votes scheduled prior to [Feb. 11]. For that reason, he wants certification to occur immediately.” However, he did not say which bills he wanted to vote on.

Though it seems as if Republicans pushed for Brown to be installed earlier because his 41st vote would disrupt the fili-

buster Congress, which has existed since April, Brown has stated that this is not true.

A possible reason Brown could have been sworn in early involves the nomination of Craig Becker, who was chosen by President Obama to become one of the five members of the National Labor Relations Board. The Republicans have been trying to stop the nomination of Becker for the last year because they claim he favors labor unions.

According to Brown, however, he has “had no contact with the Leader's office [and that] I’m an independent voter and thinker – I always have been.” In addition, he told reporters that “it’s time to get to work.”

The Governor of Massachusetts, Deval L. Patrick signed Brown’s certification Thursday, Feb. 4, at 9:30 a.m. Then both paperwork and Senator-elect Brown made their way to Washington D.C., where Vice President Biden, President of the Senate, asked the Senate if there were any objections. With none, Senator-elect Brown was then sworn in around 5 p.m.

The now junior senator of Massachusetts will sit at the desk that was once used by Robert Kennedy. Senior Senator John Kerry (MA-D) claimed the desk that the late Senator Edward Kennedy had used.

Contact Amanda at amanda.genabith@student.shu.edu

More Blows to IL Reputation in Gov. Primaries

By Lauren Beauvais and Morgan Tornetta, Domestic News Writers

The vote for the Illinois gubernatorial primary race took place on Tuesday, February 2. The Democratic candidates were incumbent governor Pat Quinn and Comptroller Dan Hynes. The Republican candidates were Bill Brady and Kirk Dillard.

Both races ran very close until Wednesday night, when Quinn and Hynes learned that Quinn had pulled ahead by 8,090 votes. The Republican race remained close, with Brady down by only 406 votes.

Thursday morning Hynes accepted defeat to Quinn in the Illinois Democratic gubernatorial primary. Hynes insisted on waiting until every vote was accounted for before he declared his concession.

Both Brady and Dillard have separately announced their belief that they have come out ahead of the other.

It is very likely that there will be a recount for the Republicans. This would be an extremely expensive and time consuming endeavor. Not only would the number of votes have to be finalized, which could take several weeks, but either candidate can challenge the results.

Throughout their campaigning, both Quinn and Hynes were eager to point out each others’ flaws.

Hynes criticized Quinn’s plan to release prisoners early for good behavior, including murderers. Although Quinn later has admitted that the idea was a mistake, he continues to be accused of trying to eliminate prison costs. Quinn accused Hynes of not doing enough to prevent the removal of

the buried deceased at the Burr Oak Cemetery in Alsip, Illinois, who were exhumed to make room for new graves.

Some suggest that the candidates’ confrontational behavior led to low voter turnout.

However, after conceding, Hynes announced that he would help Quinn win at the end of the year. He said that he and Quinn had a lot in common and that Quinn is better equipped to meet the needs of Illinois than any Republican candidate.

Hynes has brought attention to some of Quinn’s past political actions that have been questioned. These can be used by the Republican Party, which could greatly hinder Quinn’s chances at re-election.

The Democratic Party was also dealt a blow when it was publically announced that Scott Lee Cohen, who is running for Lt.

Governor, has a history of domestic battery.

Cohen’s ex-girlfriend, a convicted prostitute, accused him of holding a knife to her throat. On February 7, he removed himself from the race, at the repeated request of party leaders. Quinn claims he had not been told about Cohen’s prior arrest until after the election on Tuesday and Cohen initially refused Quinn’s request to withdraw.

Quinn has only been in office since the removal of embattled former governor Rod Blagoevich in Jan. of 2009, and he has not appointed a Lt. Gov. Contact Lauren at lauren.beauvais@student.shu.edu and Morgan at morgan.tornetta@student.shu.edu

THE STILLMAN EXCHANGE

TUESDAY, FEBRUARY 9, 2010

International News

U.S.-Taiwan Arms Deal

By Ashish Vaid, International News Writer Despite the current presidential administration’s attempts to seek a stronger partnership with China, the U.S. has hit a roadblock. The Taiwan Relations Act, which was passed by the U.S. Congress in 1979 was recently enacted as the two nations signed a 6.4 billion dollar arms deal.

The deal includes the sale of Black Hawk helicopters, missile interception systems, mine hunting ships, and enhanced command and control systems.

The need for defense is brought forth by China claiming ownership of the country even though Taiwan has been ruled by a separate government since 1949. To date, China does not recognize Taiwan’s independence. In fact, Chinese officials have indicated a desire to have Taiwan reunite with China. If they cannot reconcile through peace, China hints they are ready to resort to military action. This has been made evident as the Chinese have already aimed missiles towards Taiwan.

The Chinese now view the promise made by President Obama as insincere and has accused Washington of practicing hypocritical double standards in their foreign policy. China has stated this deal is a "crude interference in China's domestic affairs.” China has retaliated by warning to suspend military contacts and imposing sanctions against all firms who are involved with the Taiwan deal. These companies include McDonnell Douglass, Boeing, Lockheed Martin, Raytheon, and Sikorsky Aircraft, which is a part of United Technologies. If China acts on their threats, many of these firms will be hurt financially. It will also send a bad message to American businesses already operating within the country.

Many political analysts consider this deal poorly timed as there has been no threat from Beijing to attack Taiwan. The U.S. State Department has stated the deal will promote security and stability in the region.

Bruce Lemkin, Deputy Undersecretary of the U.S. Air Force, remarked that the U.S. and China need to continue building a strong partnership as China plays a key role in global issues, especially concerning nuclear nonproliferation talks with Iran.

In the past year, relations between China and the U.S. have been strained over issues such as trade deficit, China’s reevaluation of its currency and internet censorship.

As of now, China’s threats have not resulted in action. If relations remained strained, some fear that China may stop purchasing America’s debt, which could prove disastrous to U.S. financial recovery.

Contact Ashish at ashish.vaid@student.shu.edu

15

Five Tried for Accidental Manslaughter ICC Reviews Genocide in after Fiery Concorde Crash in 2000 Bashir Case

By Raphael Baseman, legal team told reports "Twenty-five witnesses saw International News Writer

the Concorde catch fire before it struck the metal strip from the Continental Airlines DC10."

February 2, 2010, five defendants are on trial in Continental also argues that the tire blew up France for manslaughter after the accidental crash because of a bump on the runway, and because it of an Air France Concorde jet in July of 2000. was overloaded and missing a piece that stabilizes The defendants include U.S. airline its wheels.

Continental, two former Concorde engineers, two Continental will also claim that problems with Continental Airlines technical staff, and a former the Concorde appeared decades before the crash, French civil aviations officer. They are accused of and could have been corrected by Air France engiinvoluntary manslaughter for their involvement in neers. According to Metzner, former French the design and clearing of the Concorde jet as well President Giscard d’Estaing stated that the as the design and maintenance of a Continental Concorde needed to be improved as early as 1980.

Airlines jet, which is thought to have contributed to Jacques Chirac, president of France during the time of the the accidental crash crash, referred to the of the Concorde.

Concorde as dead.

At the sight of The families of the crash on July victims are not 25, 2000, 109 peoinvolved in the ple on Air France case. Shortly after Flight 4590 and the crash, they four on the ground received compenat Paris’ Charles de sation from Air Gaulle airport France in return were killed in the for refraining freak crash. If confrom legal action.

Photo courtesy of NY Times victed, Continental Despite known faces a fine of Air France Concorde sets fire on takeoff killing 113 people in 2000. m a i n t e n a n c e 375,000 Euros issues, Air France which is equivalent to $523,000. The officials tried itself is not accused of any wrongdoing. Air France would face five years in prison and a fine of 75,000 is seeking damages from Continental, alleging that Euros which is equivalent to $104,000. it is also a victim due to expenses stemming from After eight years of investigation, a French the incident and damage to its reputation. judicial inquiry found that the primary cause of the The crash led to the grounding of France’s crash was a 16-inch scrap of titanium that fell from Concord fleet from 2000 to 2001, and by 2003 all a Continental Airlines DC10 aircraft moments Concords were suspended due to safety concerns. before the Concorde took off. The metal punctured The trial is expected to last four months. one of the Concord’s tires, releasing debris and pressure that punctured the plane’s fuel tank, resultContact Raphael at ing in a fire. This was not the first crash of this kind. raphael.baseman@student.shu.edu Oliver Metzner, a member of Continental’s

DOVE 2010: Students Embracing Servant Leadership in El Salvador By: Magdalena Dewane, International News Writer

anticipation, “MAGGIE!” I was so humbled that she remembered the week we spent together a year prior. Students who volunteered in the nursing For students who were on a DOVE service trip home took on more manual labor than the other for the first time, the week in El Salvador over sites. They assisted kitchen workers in making Christmas break was filled with awesome and juices and meals, and they washed and folded launenlightening experiences. Students who worked at dry. Employees at the nursing home need help in orphanages spent time with children who may have small, daily tasks like shaving the elderly men, been subject to drug abuse or child trafficking. making lunches, feeding individuals, and even cutSome teens had been ting toenails. sexually abused by These often their family members. overlooked tasks are For the orphans, very impactful as stuthe time with SHU dents learn lessons of students is always respect, humility and exciting, for the extra servant leadership. The attention and myriad elderly feel appreciated of new playmates when they are given draws out smiles from attention and dignity. every child. Seton With simple acts of Hall students had fun love, students and playing hop scotch, Salvadorians exchanged coloring, and passing compassion, helping Photo courtesy of Magdalena Dewand around a soccer ball each other to learn more with the children. The Seton Hall students play with children while in El Salvador about themselves and to joy that each individfeel appreciated. Freshman ual involved received is inexplicable. Seton Hall Bill Torres said that the trip both enhanced his relastudents were able to reflect on their own lives, tionship with God and taught him about himself and while the orphans were shown love and affection the world around him. “I truly saw God’s work not for a fleeting week out of the year. only in my relationships with the children or elderThis was my second trip to El Salvador. After ly, but also my fellow SHU students,” said Torres. my first in spring 2009, I kept in contact with several of the girls sending letters back and forth. This year, when we first pulled up to the orphanage a litContact Magdalena at tle face popped around the corner and cried out with magdalena.dewane@student.shu.edu

By Danielle Storm, International News Editior On March 4, 2009, The PreTrial Chambers of the International Criminal Court (ICC) issued an arrest warrant against the President of Sudan, Omar Hassan Ahmad AlBashir, for crimes against humanity and war crimes but rejected the Prosecutor’s request to add genocide to the warrant. At the time, The Pre-Trial Chamber stated the Prosecutor’s evidence did not establish that genocidal intent was the “only reasonable conclusion.”

Raymond Brown and Wanda Akin Brown, both adjunct professors at Seton Hall Law and the Whitehead School, are currently representing four Darfurian genocide victims in the Bashir case and a total of 11 victims in the Darfur situation. Wanda Akin-Brown reported to the exchange, “we were disappointed when the genocide tool was taken out of the prosecutor’s tool box.”

In July, the Prosecutor appealed this decision and on Wednesday February 3, 2010, the Appeals Chamber ruled that the Pre-Trial Chamber committed an “error of law” by applying the incorrect standard of proof in their original decision.

Requiring the Prosecutor to disprove all other possible conclusions and dispel reasonable doubt is generally reserved for trial. The Appeals Chamber stated this burden of proof at the warrant stage is far too stringent. Akin-Brown is enthusiastic about the deeper meanings of this decision as it “is part of the package of possibilities that exist at the international level to redress the horrible wrongs committed against victims.”

While there is little past precedent in International criminal law, particularly regarding genocide, the Appeals Chamber ruled that the Pre-Trial Chamber must re-evaluate the request using the standards of proof outlined in Article 58 of the Rome Statute. These “standards should have been applied in the first place,” Akin-Brown reminds us.

The official date for the new decision is yet to be determined, but this decision marks a historical landmark and is awaited with great anticipation. “It’s still an uphill battle but a broader front for victims of genocide around the world. This decision gives victims the opportunity to have claims of genocide more closely considered by the trial level court. This is one more opportunity to benefit from a trial of genocide against Bashir,” AkinBrown commented, reminding us of the monumental nature of this case.

Contact Danielle at danielle.storm@student.shu.edu

16

TUESDAY, FEBRUARY 9, 2010

THE STILLMAN EXCHANGE

International Business

Chavez Announces $1 Billion Power Fund to Combat Venezuelan Energy Crisis

By Alexandra Hauenstein, International Business Writer Venezuelan President Hugo Chavez announced on Sunday, January 31, plans for a $1 billion national electricity fund.

The fund, created by Electricity Minister Ali Rodriguez, will be aimed at preventing another energy crisis such as the one the country is currently experiencing.

Chavez announced via his weekly radio and television show “Alo President” (“Hello President”) that the money will be used for “electricity development” and increasing capacity by constructing new power plants and repairing old ones.

Rodriguez stated that the plan will increase Venezuela’s installed capacity by 4 gigawatts this year, and a total increase of 15 gigawatts will be achieved by 2015.

The power shortage is perplexing, as Venezuela has the second largest amount of natural gas reserves outside of the Middle East. Despite this, the country relies on hydroelectricity generated by its Guri Dam, one of the world’s largest hydroelectricity plants. Unfortunately, the reliance on hydropower caused Venezuela’s installed electricity capacity to be overstretched after the drought last year, as was predicted by

analysts.

News of the power fund comes after a series of emergency power-saving measures, which were implemented by the Chavez government, resulted in public outrage and protest. In an effort to prevent what President Chavez has called a “nationwide blackout,” Venezuelans have

been given energy-saving light bulbs and been told to limit their showers to three minutes. The most controversial powersaving measure has been electricity rationing, in which the power has been cut off for up to four hours a day in towns and cities.

Additionally, shopping malls have had their hours shortened and factories have Photo courtesy of Telegraph.co.uk been ordered to cut their power consumption by 20 percent. While these measures may ameliorate the energy crisis, they will inevitably exacerbate the laden economic issues in a country deep in a recession.

The power fund will not be an immediate solution, and while the controversial program of electricity cuts has since been canceled, Rodriguez stated that a new power cutting plan will soon be announced. Meanwhile, the Chavez government remains hopeful that the energy supply will reach status quo during the highly anticipated rain season, expected to start in May.

Chavez is trying to greet his country’s energy woes with the proper reforms

Contact Alexandra at alexandra.hauenstein@student.shu.edu

Portuguese Economy Grapples With GDP Drop

By Nicole Blackford, International Business Writer Portugal’s Gross Domestic Product (GDP) totals for 2009 have dropped by 9.3 percent from the previous year. This was an unexpected deficit, as many anticipated minimal losses and did not believe the economy was suffering to such an extent. In addition to this high deficit, unemployment rates have also reached close to 10 percent, a high for Portugal.

Out of fear for a worsening economy, several proposals have been made for cutting the budget deficit in the upcoming year.

These strategies include freezing wages, making spending cuts, and imposing new taxes. The tax was suggested by Bank of Portugal’s governor Vitor Constancio but has been protested by the Portuguese government.

Another downfall for European economies was the recent fall of the value of the Euro; it has reached its lowest value in the past six months. This fall has also affected the investment of government

bonds. According to Business Week, Portugal has been described as one of the most expensive countries to insure against losses. It is considered a country with a “government debt risk.”

Many have been trying to link the financial situation in Portugal to that of the recent financial crisis in Greece. However, according to both Reuters and The Portugal News, officials deny any link between themselves and the latest economic crisis in Greece. Portuguese spokespeople have made it clear that they want no associations made regarding the economic issues between the two countries.

Although there are small hopes for a short-term turn around, an economic recovery is being aimed for by 2013. Portuguese Financial Minister Texeira dos Santos expects that Portugal will be able to push through 2010 and overcome the financial crisis currently facing the country.

Contact Nicole at nicole.blackford@student.shu.edu

Hertz Comes to Strategic Deal With Saudi Firm

By Ben Canning, International Business Writer On February 1, the Hertz Equipment Rental Corporation (HERC) and its superior, The Hertz Corporation (NYSE: HTZ), have formed a joint venture with the Saudi Arabia-based Dayim Holdings Company Ltd. The cooperative business enterprise plans to sell and rent equipment to construction and industrial business markets in the Kingdom of Saudi Arabia.

In a press release, Mark P. Frissora, Chairman and CEO of The Hertz Corporation, made comments on Saudi Arabia’s quickly expanding markets in heavy construction and petro-chemicals and says that the “joint venture with Dayim Holdings will enable HERC to tap into growth throughout the country.”

“With an established presence in the Kingdom, HERC will be able to offer a one stop shop for equipment rental and fleet management needs for this important market,” says Frissora.

The Hertz Corporation is currently the world’s largest general use car rental brand

and completely owns Hertz Equipment Rental Corporation as its subsidiary. HERC is the world’s largest equipment rental business, offering tool and machinery rentals to construction and industrial businesses.

Dayim Holdings, on the other hand, provides investment opportunities in the rapPhoto courtesy of Marketwire idly growing business market Dayim was attracted to the deal by Hertz’s global stature in the Kingdom of Saudi Arabia. It was founded in Vice President and President of HERC says 2006 and focuses on joint ventures with it was “truly a collaborative effort” when large, renowned corporations looking to speaking about how the business partnerfind permanent business enterprises in ship was formed between the Dayim team Saudi Arabia. and the HERC teams from the U.S., Dayim Holdings finds that HERC’s Europe, and Asia. “The combined strength position as a global equipment rental leader of these two organizations will enable outmakes it the perfect choice for the business standing growth opportunities for both and opportunity. “We believe that [HERC] is allow us to deliver the highest level of servideally placed to serve the Kingdom’s ice to those customers in Saudi Arabia,” aggressive expansion plans in all relevant says Plescia. sectors,” says Dayim's Executive Chairman Contact Ben at HRH Prince Khalid bin Bandar bin Sultan. benjamin.canning@student.shu.edu Gerald A. Plescia, Hertz Executive

China Shows It Is Not Afraid To Levy Chicken Taxes on U.S. Imports

By Tesse Postek, International Business Writer On January 31, the Chinese Commerce Ministry put into action a tariff on all imported Chicken from the U.S.. The Ministry is in charge of regulating China’s foreign trade, and is saying that the move will boost the Chinese economy.

“Having American companies dumping is making business difficult,” said a representative from Shandong Yisheng Chinese Poultry Company. American companies have been exporting chicken wings and feet to Southern China markets; according to records held by the World Trade Organization, they have been selling them at about 22 cents per pound less than the Chinese markets. “Problem is, here nobody wants to eat the feet or wings, they’re just not popular,” said a factory worker at Tyson on Saturday. “They sell them for less than Chinese competitors, which is the American method of enterprise. They are worthless here.”

The tax, according to figures in the Wall Street Journal, will be as high as 105.4 percent for some companies, while Tyson will pay the lowest tariff of 43.1 percent. The highly popular American poultry company actively invests and lobbies in China.

“Having American companies dumping is making business difficult...”

“I think that it’s interesting to see how bigger companies with more political clout can get around paying the larger taxes. But I think that this tax is definitely going to create more tension between the U.S and China, in regards to their trade relationship,” said a Seton Hall Whitehead Diplomacy student. According to the New York Times, China “targeted the US chicken products last year” in September, after the Obama administration had put a tariff on “low-end” Chinese tires.

After a five month investigation, this tax has been made known. It will be in effect as of February 13, 2010. Companies that are being required to pay the larger tax will have an opportunity to appeal until this date. “This tax will help China in the area of selling more of their own poultry, but maybe not in the long run in terms of international business affairs. Over the past, we have done a ton of business with them, but these tariffs are going to hurt Americans’ desire of wanting to sell and buy Chinese products,” says Courtney Lambeth, a student at the University of Chapel Hill.

Contact Tesse at tessegianella.postek@student.shu.edu