Domestic News
Ethics
Survey: Are American colleges too concerned about budget; not enough focus on education. See p. 13
Examining the European Union
Anti-Abortion Billboard: Promoting Helpful Message or Fueling Racial Tensions? See p. 8
International Business takes an in depth look at the See p. 15 economic situation of the European Union.
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TUESDAY, FEBRUARY 23, 2010 - VOL. 6 NO. 9
Golden All the Buzz about Google’s Management By Matt Bartel, Stillman Sports Writer The day Mark Ervin had last week during the 2010 Winter Olympics comes once in a lifetime. The IMG agent represents the two most marketable athletes in the Games, Shaun White and Lindsay Vonn, and he watched both of them capture gold medals within hours of each other. Entering these games, the U.S. had high expectations for the Winter Olympics’ top talent, White and Vonn, and both came through in a big way. Ervin has represented White since he was 15-years-old and Vonn since 2005. He is being rewarded with golden dividends this year in Vancouver for managing the winter Olympics two biggest stars, which will lead to many more endorsement opportunities following the Games. Vonn had another obstacle to overcome as she entered the Olympic Games. With a serious shin injury, many believed she wouldn’t be able to participate in Vancouver. Despite having very little preparation and the injury, Vonn was able to persevere, taking gold by 0.56 of a second over her teammate Julia Mancuso in the alpine skiing event. “Lindsey’s ability to overcome adversity is truly remarkable,” Ervin said to Sports Business Journal writer Tripp Mickle. Ervin’s day was far from over as his other big ticket client was going to the half pipe in attempt to defend his Torino gold. White entered the games as the odds on favorite to win this event again and the California native delivered in stunning fashion. Despite the fact that he had already won the gold medal before his final run in the half pipe, the amazingly skilled snowboarder ended the competition on a high note landing a Double McTwist 1260, which consists of a double backward flip with two and a half revolutions. “I honestly in my wildest dreams couldn’t dream of a day like this,” Ervin said. Ervin’s day was complete with two gold medals to his clients’ credit. Now, though, he is moving on securing lucrative business pursuits for his White and Vonn to capitalize on their major Olympic successes. Contact Matt at matthew.bartel@student.shu.edu
INDEX Money & Investing.............. 2 Stillman News...................... 6 Ethics ................................... 8 Editorials ............................. 9 Sports................................... 10 Domestic News..................... 13 International News.............. 15 International Business........ 16 Top front cover images courtesy of Christine Wotton, Web Manager and Ian Mehok, Assistant Managing Editor
Potential Monopoly
By Brett Morse, Money & Investing Writer Two weeks ago Gmail users signed on to find themselves involuntarily signed up for a new public social network, Buzz. It has come as a surprise for many because it was created from their own private email and chat contacts. Furthermore, Buzz shares a user’s publicly shared items from Picasa photo albums and Google Reader without his/her consent. The initial excitement over Google Buzz quickly turned into concerns and fears of poor privacy safeguards. With the information now available to Google, and the swiftness of its new product releases, the technology giant is growing closer to monopoly status. Through the implementation of Buzz, monopoly worries are now a serious threat. A rush of criticism ensued after the launch of Buzz and just days later the search giant was backtracking fast. In the past, Google privacy issues revolved around the company knowing too much and whether or not it has sufficient controls in place to protect the information from illegal access. In order to satisfy demands, Google came up with some quick remedies. It stopped automatic sign-up and the links to Picasa photo and Google Reader are no longer accessible. Although Google tweaked the social networking service to satisfy its users, you can still use Buzz to chat with friends, share news stories, photos, and videos. The most delicate information that Google Buzz exposes is the identity of a users e-mail correspondents. The recent update by Google has made this de-selection easier, but the default is that the list will be shared with everyone.
This quick invasion comes after several Google projects that have bordered on monopolization. Just last week, Google representatives stood in court for another hearing on Google Books, software that is aiming to digitize every book in the country. With one centralized location for every book ever printed, Google is effectively eliminating competition from libraries and publishers, the number one characteristic of a monopoly. Books are not the only area where Google is seeking to oust competition. In fact, it is hard to find a subcategory or sector that Google has not entered. Google now boasts its own web browser, online video viewer in YouTube, maps program and chat platform similar to the popular Skype. Competitors are starting to take notice more and more, as companies like Apple have begun making exclusive products that do not work with Google platforms. Along with competitors, some countries have begun to notice the power that Google has amassed. China recently threatened to remove Google completely if the search engine did not share its information with the government. China has defended its extensive censorship after the U.S. Internet search giant threatened to leave the country following cyber attacks last month. Although Google still operates in the country, Secretary of State Hillary Clinton supported Google’s decision and declared Internet freedom a diplomatic priority. The resulting battle showed just how strong Google has become, as the California company muscled a war against the world’s most populated country. Continued on page 5...
Concern Over Iran’s Uranium Enrichment By Jake Holl, International News Writer The Islamic Republic of Iran has been a facet of controversy in diplomatic circles and media outlets around the world as U.N. nuclear inspectors announced Thursday, there is “extensive evidence of past and current undisclosed activities by Iran’s military to develop a nuclear warhead”. Last week, Iran incited fear within the international community as reports confirm that the Iranian government has enriched uranium to 20 percent. While this action could lead to the development of nuclear weapons, the Obama administration has noted Iran is currently only producing 100 grams of enriched uranium daily. At this rate it would take years for Iran to develop the capacity to produce enough uranium to create a weapon. However, the International Atomic Energy Agency’s most recent report divulges that Iran is taking actions that may be perceived as intent to develop nuclear weapons. These actions include: prior tests of ways to detonate weapons, the creation of warhead designs small enough to fit on a missile, the acknowledgement of a secret enrichment plant in Qum, and preparations to make uranium into a metallic form - an action necessary to making the core of an atomic bomb. At this time, Iran claims to be enriching uranium at higher levels for the purpose of fueling a medical reactor in Tehran. This explanation has been met with skepticism as the amount of enrichment is “far in excess” of the amount needed for this purpose. Secretary of State, Hillary Clinton, has been the most vocal component in Washington to address growing concerns regarding the future of Iran and regional security in the Middle East. Clinton recently completed a tour of the region, visiting allies and members of the Gulf Cooperation Council such as Saudi Arabia and Qatar to voice concerns over shifts in Iranian politics and rhetoric. Her bold statement that the government of Iran, at all levels, was “slipping towards a military dictatorship” brought a sharp response from Iranian officials. Tensions between Washington and Iran have escalated over the past few months in an ongoing saga with deep set historical roots. Among these tensions, nuclear ambitions have taken center stage in the past two weeks. The revelation that Iran started developing highly enriched uranium at the Natanz plant without the knowledge of the International Atomic Energy Agency has sparked calls for new sanctions. The Iranian government has expressed that any impediment to its nuclear program will be “regretted.” At this time, the United States is spearheading an international effort to increase monitoring of Iran’s civilian program and press for a halt toward advancement of a nuclear weapons program.
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TUESDAY, FEBRUARY 23, 2010
Money & Investing Toyota’s Top Sellers
NEWS BRIEFS
Google’s New Expansions By Kyle Connell, Money & Investing Writer
• The Farm Credit System, a U.S. government sponsored enterprise and a major lender to U.S. agriculture, said on Friday its fourth quarter net earnings for 2009 were up 52 percent year-onyear as net interest income rose and loan losses fell. • J.C. Penney Co. posted fourth-quarter profit that surpassed its expectations and issued an upbeat forecast for 2010 on Friday following a holiday season where it did all it could to avoid clearance discounting. • U.S. stocks on Friday finished higher for a second consecutive week, with investors finding little to fear from the Federal Reserve's decision to begin disassembling its emergency lending measures for banks. After the fiasco involving the Toyota braking system, the company struggled across the board in
• U.S. stocks rallied modestly as January, posting some of its lowest numbers in all of its models. investors focused on the optimism underpinning the Federal Reserve's dis- Editors Take: Toyota will continue to see low purchasing throughout the first few months of 2010, count-rate increase and boosted such but this should not be confused with a dead company. With the major losses that have come with the major automakers in the U.S., Toyota has just hit a bump on the road, not its grave. Look for the industrials as Boeing, while Pfizer auto dealer to feed off of its foreign sales while it attempts to right the ship on U.S. sales and conclimbed as a rival suffered setbacks. sumer opinions.
Home Depot Chart provided by Yahoo Finance Despite a decline in home sales and construction, Home Depot has continued to grow its company around the idea of consumers fixing up the homes they already own. A recent marketing campaign has helped the company to gain the upper-hand over competitors like Lowe’s, and it is evident in the rise in stock price since 2009.
This Week’s poll question What do you think about Google Buzz? A: I will definitely use the new tool B: I prefer using Twitter C: I’m sick of Google rolling out new products D: What’s Google Buzz?
Respond at the all NEW stillmanexchange.com What are your feelings about the possible Apple tablet?
Two Weeks in Earnings Date 2/23 2/23 2/23 2/24 2/24 2/25 2/25 2/26 2/26
Company Barnes & Noble DreamWorks Animation SKG, Inc Home Depot Inc Dollar Tree Stores Zale Corporation Gap Inc. SunPower Corporation Frontline Ltd.. Southwest Gas
Symbol BKS DWA HD DLTR ZLC GPS SPWRA FRO SWX
EPS $ 1.34 $ 0.37 $ 0.16 $ 1.43 $ 0.02 $ 0.49 $ 0.48 $ 0.11 $ 1.08
Earnings Stock to Watch: Ford
A: I like the idea, but rather paperback 25% B: I like the idea and would try it 40% C: I’d rather use traditional books 20% D: I’d love to use the tablet 15%
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Graph courtesy of Yahoo! Finance
Google, the internet search engine turned verb, trudges on with Microsoft in their unending game of Monopoly. Traditionally a lengthy game, the two stubborn companies refuse to concede and only continue their trend of acquire and develop. With hotels on every space and the recent addition of Google Buzz to Park Avenue, consumers are skiving with curiosity for a hint of what will be next for the tech giant. Luckily, the hippie run company lacks the understanding of a secret and leaked these upcoming Google Labs: Google Lung. Google’s enterprise does not limit itself to the tech world. In June of 2008, Google acquired the atmosphere for a measly $250 quadrillion, which may not be the best deal considering its carbon deterioration. When questioned about it though, a Google spokeswoman said, “Oh, we had some extra cash lying around, so we thought it wasn’t a big deal.” Google Lung: The idea behind Google Lung is to take breathing to cloud. This way, oxygen can be accessed by anyone at anytime. This new beta lab is set to be released within the first half of 2010 by invitation only, of course, along with the usual complementary 80 minute explanation video for those having trouble breathing. Google Jail: Google actually opted to stay in jail for an extra turn to develop this new beta. Clearly, it is still under development, as that initial research was skewed by high prisoner turnover because of both the “get out of jail free” card and prisoners’ ability to roll doubles. Thus far, Google has acquired Guantanamo Bay from the United States military. The acquisition was covered up from anti-trust investigators with a convincing campaign led by Glenn Beck calling President Obama radical. There is work to be done on Google’s behalf as they aren’t quite sure how to take imprisonment to the cloud yet or what use it would actually be. Google Sight: This app will be the first in the line of Google Senses. Operated through use of Droid phones’ cameras, it will highlight others’ possessions that could be acquired in hopes of taking over the world. Currently, only Google executives have been privileged to test it out, but Iranian President, Mahmoud Ahmadinejad, is on the short list for the next wave of testing. Google Life: Finally, and most revolutionarily, is Google’s latest idea. It is a common misconception that Google’s recent exit from China was related to human rights issues and its Do No Evil motto. In reality though, Google pulled out because it was ready to release Google Life. Google saw China as a major competitor in the industry of controlling people and thus opted to go elsewhere rather than release in China, where the market is dried up. The life controlling app, will work in conjunction with Google Lung, providing Google with complete control of everything, and for a change, it requires no invitation. 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.
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Money & Investing
TUESDAY, FEBRUARY 23, 2010
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Toyota: Moving Backward By Stefano D’Urso, Money & Investing Writer Toyota’s catchphrase in America has always been “Moving Forward,” but over the past few months, a more appropriate phrase could be “Moving Backward.” The leading carmaker in the U.S. has been under an increasing amount of pressure and public criticism as it deals with safety issues related to its top selling automobiles. Refusing to act on issues that arose in the past five years, Toyota is now scrambling to maintain its credibility and most importantly, its profit. Dating back to 2006, reports surfaced that drivers reported surging in the company’s popular Camry and Tundra models. There seemed to be an accelerator pedal glitch which caused vehicles to uncontrollably increase speed. The result was car accidents, and unfortunately, deaths. These reports were never taken seriously, until the same glitch started occurring in 2009, resulting in the deaths of 19 people. This began the downward spiral for a global brand that had been one of the most respected for decades. Last September, the automaker issued a safety notice for 3.8 million vehicles due to safety concerns regarding the possibility of vehicle accelerator pedals getting caught under floor mats. This caused the National Highway Traffic Safety Administration to take action, as they accused Toyota of providing owners with “inaccurate and misleading information about its floor mat recall.” On January 26, Toyota was forced to suspend the sale and production of eight models, which included the Rav-4, Corolla, Matrix, Avalon, Camry, Highlander, Tundra and Sequoia. Vehicles recalled totaled around 8 million nationwide. Toyota is expecting a
loss of $2 billion from reduced sales and recall costs, crippling its profitability for the current fiscal year. On February 5, Toyota CEO Akio Toyoda made his first public appearance and apologized for the problems that led to a frenzy of panic from drivers worldwide. He did not announce a solution for the pedal problems but simply stated that a full scale internal investigation is underway to determine the severity of quality control problems so immediate fixes can be performed. So, what happens next? CEO Akio Toyoda was recently asked to testify in Washington in front of Congress over allegations that Toyota mishandled the way they informed the public about crucial security measures regarding their vehicles. At first, Toyoda balked at the interrogation, but upon growing pressure from U.S. lawmakers, he has agreed to appear before Congress; the congressional hearing is scheduled for February 24. The U.S. House Oversight and Government Reform Committee has now stepped in and has issued a subpoena to obtain internal company documents that a former Toyota official alleges show the carmaker purposely hid evidence of safety defects in vehicles from regulators and consumers. Officials are uncertain as to what sort of ruling could be handed down to Mr. Toyoda and his company, but many analysts believe it will be no slap on the wrist. Toyota Motors Corp., based in Toyota City, Japan and the world’s largest automaker, has lost $29 billion in market value since announcing fixes for accelerator-pedal defects in January. Toyota seems to be “Moving backward” instead of “Moving Forward.” Contact Stefano at stefano.durso@student.shu.edu
Fiduciary Responsibilities Targeted in Latest Law Proposal By Michael Pernal Money and Investing Writer Wall Street is changing with the times. Much of the debate in Congress about financial regulation overhaul is related to how the big banks do business, notably the banks who received bailout funds. But, the piece of legislation that is receiving little public notice is one that would affect consumers directly: that is the proposed amendment to the financial regulation bill that would require stock and insurance brokers to act in their customer’s best interests. At issue is how brokers perform their job duties – do they put the brokerage firm’s interests first, or do they put their client’s interests first? Putting a client’s interests first is known as fiduciary duty. The professionals in the industry known as investment advisors are already held to this high standard. Barney, or those insurance agents who sell variable annuities, are held to a lesser standard. That lesser standard only requires them to steer clients towards investments which are “suitable.” Often times, those investments are lucrative for the broker at the client’s expense. Over the years, it has become increasingly more difficult for investors to distinguish between brokers and investment advisors, and where their loyalties lie. In 2008, a study sanctioned by the Securities and Exchange Commission (SEC) was completed by the RAND Corporation, a nonprofit group, which studied the business practices of broker-dealers and investment advisors.
The study found that investors had trouble distinguishing among industry professionals. With the overhaul of Wall Street, both the Senate and the House have included measures that would hold brokers to a higher standard. The House bill has already passed. It would require the SEC to define and police the fiduciary standard outlined by the House. It should be noted that the brokerage industry and respective lobbyists supported the passing of the House bill. They believe that the SEC will draw out the rules so that it still favors the brokers. On the other hand, the bill being proposed in the Senate is being argued about and held up on multiple fronts. The bill, sponsored by Senator Christopher Dodd (D – Connecticut), the current Senate Banking Chair, is considered strong. It would eliminate the distinction between investment advisors and brokers by erasing the broker’s exemption from the Investment Advisors Act, bringing them under the same fiduciary standard. This bill would give little to no power to the SEC to make rules. Dodd is being held up as he seeks Republican support, which he is not receiving. Also holding up the Senate bill is fellow Democratic Senator Tim Johnson, of South Dakota. He is calling for a study of the brokerage and advisor industries. Advocates say that if this study is commissioned, it would delay the entire bill and most likely find the same results that were found in the RAND Corp. study of 2008. The insurance industry is severely
Photo courtesy of Internet Cafe Guide With the overhaul of Wall Street, both the Senate and the House have included measures that would hold brokers to a higher standard fighting this legislation as this additional law would force insurance agents to fully disclose the compensation they would be receiving. According to Mercer Bullard, associate professor at University of Mississippi’s law school and member of the SEC Investment Advisory Committee, “it would make clear the excessive incentives insurance agents have for mis-selling variable annuities, which has been the cause of regulatory problems in that area.” Lobbyists are also fighting the Senate bill as well. Even if the bills pass and are signed into law as part of the overhaul of the financial industry, there is doubt about how much
the new rules will actually accomplish. Since 1979, mortgage brokers in the state of California have had a fiduciary duty to the people they are providing with home loans. That did not do much to stop the real estate market from completely falling apart. But, at this point in an election year, politicians are not worried with that fact; they are worried about doing enough to please the voting public to be re-elected for another term. Contact Michael at michael.pernal@student.shu.edu
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TUESDAY, FEBRUARY 23, 2010
Money & Investing
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TED Conference Brings Innovation in Technology, Global Issues By Christine Wotton, Web Manager Earlier this month in Long Beach, California, the annual TED conference took place. These 50 short, 18 minute talks are costly in person but free online. TED which stands for Technology, Entertainment, and Design, is a small nonprofit organization known worldwide that is living up to its slogan - Ideas Worth Spreading. TED is owned by The Sapling Foundation. It was created in 1984, and was recognized as a non-profit in 1996. For a small non-profit organization, there is more money spent by members and participants than most small companies. Currently membership is $6,000 a year, which includes a ticket to the annual TED conference. People and businesses pay this membership each year for the honor of attending. The conference can also be viewed by members in a hotel nearby. TED is most known for their speakers or TED Talks. Every year members of TED gather in California to attend four days of
Gates known as the head of Microsoft. He addressed the global warming crisis. He feels the solution to the world’s problems is to use nuclear energy, but not the traditional form of it. Currently nuclear energy uses two percent of the uranium, leaving 98 percent left over as nuclear waste. Bill Gates told a large TED conference audience that he believes the Gates is propossolution to global warming will come with nuclear energy. ing that we burn the 98 percent left over. short speeches surrounded by the most brilWith the waste presently available there is liant minds in the world. These speeches cover topics ranging enough energy to provide power for centufrom medicine and technology to eating ry. Don Levy, the Senior Vice President of habits and optical illusions. After each 18 minute speech there is a question and Sony Pictures said, “TED is a think tank for humanity. It is a gathering of exceptional answer session guided by an expert. This year’s featured speaker was Bill individuals, all with the ability to make a Photo courtesy of Presentation Zen
difference. We come, we listen, we participate, we learn, we apply and we improve.” At its core, TED is a community built on innovation and invention, and this is consistent with our principles. We also sponsor TED because it inspires us and helps inform our thinking, both personally and professionally, throughout the year." TED is funded by a number of very notable sponsors such as Cisco, GE, IBM, and Rolex. TED also awards three grand prizes to the three people who have the most innovative world changing idea. This prize is more of a grant for the individual to implement their idea or spread the idea. For those who do not have a spare 6,000 dollars lying around, TED films every talk and slowly releases them throughout the year on their website, ted.com. As of now there are three TED 2010 talks available to be viewed. Contact Christine at christine.wotton@student.shu.edu
Goldman Sachs Seeks Damages from Exited Employees By Nigel Drew, Money and Investing Writer Goldman Sachs (NYSE:GS) has recently sued former employees after claiming they violated the company’s rulebook. It is no secret that Goldman Sachs has had its fare share of problems during this economic period. These problems have lead to the eventual departure of many of the company’s employees. After what to some may seem like a difficult job search, some employees able to find jobs at other places of employment. One of these places includes the Credit Suisse Group (NYSE: CS). The Credit Suisse Group is a financial services company, headquartered in Zurich, Switzerland. It has three major divisions: Investment Banking, Private Banking, and Asset Management. Recently Goldman has alleged, among other things, that the seven employees from
its Atlanta office had contacted numerous clients after abruptly leaving the firm and asked them to move their accounts to Credit Suisse. This is a strict violation to the rulebook in which Goldman Sachs maintains all employees must follow. After Goldman learned that their clients were contacted by the seven terminated employees, Goldman filed a restraining order against its former employees in an effort to prevent the solicitation of advice to Goldman clients and employees while it proceeded with a separate arbitration claim related to the matter. Soon after, the lawsuit sought a court order against former employees David Greene, Craig Savage, Andrew Thompson, Sharran Srivatsaa, John Pitt, Stephanie Dennard and Kim Tyson of the asset management division was dropped for reasons unknown. Goldman declined to comment about
its decision to drop lawsuit, other than to say the matter has been resolved. The dropped lawsuit did have some form of an impact on the price of stock for the companies. Goldman Sachs rose 19 cents to $155.92 as of 3:20 p.m. in New York Stock Exchange composite trading. The shares have declined 7.6 percent this year. Credit Suisse fell 31 centimes to 47.29 Swiss francs in Zurich. There are multiple rules which the company wishes their employees to abide by. On the issue of telephone usage the rulebook states, “Avoid using cellular or cordless telephones to discuss confidential business matters. Such devices are radio transmitters and are frequently monitored by hobbyists and professional information brokers. Do not use a speakerphone when discussing proprietary or confidential information unless you are in a secure place. These phones have the potential of being overheard”.
There is another rule which revolves around conversation outside of the workplace and states, “Use care when working on confidential documents on any airplane, subway, railway, or other public conveyance. Curtail confidential conversation in elevators, taxis, or limousines, and in public setting outside the office, such as social gatherings. If you must discuss confidential information outside a secure office, use code words to identify any key players.” These rules are instituted by Goldman Sachs to maintain a workforce which is firmly determined in maintaining confidentiality. Some can argue that this level of confidentiality has lead to the economic situation that is occurring at this moment.
Contact Nigel at nigel.drew@student.shu.edu
Investors Finally Confident in U.S.; Dollar Sees Gains 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.
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 creditdefault 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. Photo courtesy of jutiagroup.com Although it is Weaker European states are suffering from budget deficits that exceed still at historicalEU limits. The dollar has felt the squeeze, but is now looking to grow ly high prices, the speed at which from its miniscule worth just months ago. it has declined After investors examined this new data, the may create problems for the Eurozone. problem of European debt remains while The drop could result in difficulties for the U.S. is securely aiming at a slow but European states needing capital from forsteady recovery. eign 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 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
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Money & Investing
Real Estate Rates Falling Again By Scott Giveans, Money & Investing Writer
not last so if you need to finance your new home or refinance an existing one, the clock is ticking.
According to Freddie Mac’s weekly survey the 30-year fixed rate mortgage averaged 4.97 percent last week which is Photo courtesy of Bankrate.com down from 5.01 percent a week previously. Nevertheless, these numbers more than likely represent “rock bottom” for interest rates and will only increase in the near future. The 15-year fixed mortgage rate has undergone a drastic decline and averaged 4.34 percent last week. However, like the 30-year rates these numbers are simply not sustainable and will likely inch higher and higher from here on out.
For the first time in approximately three months the interest rates on a 30-year fixed mortgage fell below 5 percent. The dip below 5 percent represents an opportune time for homebuyers to capitalize on the uncharacteristically low rates. Interest rates have remained relatively stable over the past year due to the FED’s decision to purchase billions of dollars of mortgage-backed securities. However, after recent comments from the FED, it appears as though the housing sector will soon lose its “crutch” and be According to Freddie Mac’s weekly survey the 30-year fixed rate forced to sustain a recovery on its mortgage averaged 4.97 percent last week which is down from own. 5.01 percent a week previously. Beware these rates will
Contact Scott at scott.giveans@student.shu.edu
Wal-Mart Investors Losing Confidence By Bryan Murawski, Assistant Editor The all-powerful retail giant Wal-Mart (NYSE: WMT) has finally run into a problem. To be more specific, their average customer seems to have stopped spending as much money, if anything at their retail locations. Wal-Mart, the world’s largest retailer reported on February 18 that they took in $112.8 billion worldwide revenue last quarter. This number is surprisingly up 4.6 percent from a year ago. However, with this good news comes more depressing news. Wal-Mart also announced that U.S. samestore sales fell 1.6 percent last quarter, and traffic in U.S. stores fell slightly. The news sent shock waves through investors who noticed that the bad news outweighed the good. The company has recently been cutting expenses and inventory. This is a desperate move to save money and keep profits rolling in. However, Wal-Mart’s international sales growth is still remaining strong. Its reported earnings from last quarter were $1.17. This was higher than the expected estimate of $1.12. Regardless of what its earnings were, investors still seem to be troubled by the sales which are falling. This can be seen after Wal-Mart’s shares fell 1.1 percent on Feb 18. Wal-Mart announced that prices of gro-
ceries and consumer electronics continued to fall, this Photo courtesy of Wal-Mart caused customers to spend less on each shopping trip. Wal-Mart chief financial officer Tom Schoewe told reporters that “We see the influence of the paycheck cycle as pronounced now as it’s been in the past,” according to Bloomberg News. What he means by that is the average customer is now living paycheck to paycheck and does not have the disposable income they once did. The tough economy plays Wal-Mart’s international sales growth is still remaining strong. Its reported earnings from last quarter were a huge role in that, especially $1.17. when you look at the staggering unemployment rate. low-end shopper spending less on the items Once the economy turns around and they had. Now we are seeing that even a customers start to increase their earnings company which sells at lower prices does and finding jobs, it is always possible that not necessarily guarantee it is recession Wal-Mart’s numbers will return to where proof. they once were. It seems that now Wal-Mart is in a Even though Wal-Mart is seeing a limbo, waiting for this market to turn decrease in its profits, it is not alone. They around. Its efforts to boost sales by cutting are one of the lucky retailers who are still costs to raise profits is not appealing to the afloat in such troubled economic times. investors anymore. Other competitive retailers have all but They now need to wait the long wait fallen off the face of the market. Some for its core customers to start spending like which are staying alive are still worse off they used to. than the retail giant. At the beginning of the recession it Contact Bryan at seemed that Wal-Mart benefited from the bryan.murawski@student.shu.edu
TUESDAY, FEBRUARY 23, 2010
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Google Buzzes With Talks of a Monopoly ...continued from page 1 From your mobile device you can easily post and tag your location, read what people are buzzing about near you, and follow your friends on the go. In other words, the software has found a way to incorporate all of a user’s personal information into one package, creating a monopoly on consumer trends and affinity group data. Does this all sound familiar? Perhaps that is because all of these offerings already are available through different technology companies, like Facebook, Twitter and Verizon. Now think back to when Microsoft finally was broken up as a monopoly; they had perfected the art of becoming the second company into a product. Microsoft had eliminated the need for innovation by just reinventing previously created products, and now Google is doing both to come out on top. Google has begun to receive backlash for its new software, and could be seeing the initial stages of a probing into the nature of its monopoly. Google is facing legal actions over claims that it breached privacy laws with its new service. A class action lawsuit has been filed in the U.S. on behalf of a Florida resident and the plaintiff is seeking injunctions to prevent Google from taking similar actions in the future. The China incident continues to linger as Google consistently fights away lawsuits from Youtube and Google Books. Google is now on the defensive, faced with numerous parties worried about privacy, not to mention just how much the company actually should be allowed to know. For now, Google is expected to continue with its expansion, including additional controls for Buzz that allow IT administrators to control the overall Buzz program. The future of Google will hinge on the growth of all of its entities, including Buzz, especially as more competitors fade from the market. Although Google might be able to avoid the talks of a monopoly for the foreseeable future, the buzz on the street suggests that Standard Oil is back, only this time in the form of a technological superpower. contact Brett at brett.morse@student.shu.edu
JPMorgan Chase Gains While Other Banks Struggle By Spencer Lawrence, Money and Investing Writer JPMorgan Chase & Co. (NYSE: JPM) recently announced its fourth quarter and full year 2009 results, and the numbers did not disappoint. The global financial services firm toppled estimates while posting record revenues of $108 billion and net income of $11.7 billion for the last fiscal year along with fourth quarter revenue and income of $25.2 billion and $3.3 billion respectively. JPMorgan’s success was spearheaded in part by its dominant role in the investment banking industry last year. It was ranked number one in global investment banking fees for full-year 2009 with 9.2 percent market share and number three in Global M&A, according to Thomson and Dealogic. Other highlights include solid growth in retail banking thanks to the acquisition and successful integration of Washington Mutual as well as solid fourth quarter results in asset management and commer-
“The global financial services firm toppled estimates while posting record revenues of $108 billion and net income of $11.7 billion for the last fiscal year...” cial banking. JPMorgan finished 2009 with strong results and management hopes to carry that momentum into the New Year, but two new forms of legislation could prove detrimental to the company’s financial position in 2010. Due to the threat a potential passing of the “Volcker Rule” imposes, JP Morgan decided to renege on their decision to purchase all of RBS Sempra Commodities businesses from the Royal Bank of Scotland. The Financial Times reported that the bid was revised due to “revelations about a likely crackdown on bank trading” in the United States.
Named after former Fed Chief Paul Volcker, the Volcker Rule seeks to prohibit banks from engaging in private equity and hedge fund investments as well as proprietary trading. The rule is currently being reviewed by congress as a part of the Restoring American Financial Stability Act which has passed through the House and is awaiting confirmation in the Senate. The future of the bill remains uncertain but JPMorgan is hedging against the potential risk of its implementation. The company will purchase only the European and Asian arms of the business for an expected price of $1.7 billion, a significant reduction from the original $4 billion discussed which included the company’s US operations as well. To make matters worse, another piece of legislation referred to as the CARD Act went into effect on February 22. The CARD act is a new law regarding credit cards which has put in place even more financial shields for consumers. The new law prevents issuers from raising rates
on a customer’s existing balance and requires them to wait at least 60 days before raising rates on delinquent customers. Like most other consumer protection laws, this one will also affect the firms engaging in business with them, and it is not cheap. The credit card advisory firm R.K. Hammer expects the new law to cost the industry as much as $5.5 billion in lost revenue this year and more than $50 billion through 2015. As the nation’s largest credit issuer last year, J.P. Morgan Chase does not expect to escape unharmed. The firm, which posted a $306 million loss for its card services division in the final quarter of last year, has warned its credit card business could lose up to $750 million this year as a result of the new legislation. JPMorgan analysts estimated the earnings impact for major banks under all of the proposed investment banking regulations to be minus 21 percent in 2010. Contact Spencer at spencer.lawrence@student.shu.edu
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TUESDAY, FEBRUARY 23, 2010
Housing and Residence Life “Thirsty for Student Feedback” By Ryan Garrity, Stillman News Writer Have you ever wondered how Gourmet Dining Services knows what improvements to make at the end of every year? Or how Housing and Residence Life (HRL) knows what they can do to make residence life better? The answer lies in the EBI Survey, a simple questionnaire filled out by students at the end of every year. The acronym EBI stands for the company that publishes the survey, Education Benchmarking Incorporated. They are known as a catalyst for continuous improvement and offer a multitude of education based entities and assessment tools for housing, greek life, student centers and first year initiatives. According to Housing and Residence Life director Tara Hart, the EBI survey is the “single best investment we can make to improve the life of resident students.” The EBI is an annual benchmarking survey that Seton Hall has been participating in for about 11 years. It is sent to students through a personalized link and email, and it is completely anonymous. However, HRL can tell whether or not a select student has completed the survey. Hart explained that the survey is done every year so that HRL can get a sense of how satisfied students are with services and staff, among other things. She can also compare our results to what is called the “select 6”—six competing schools that are chosen as benchmark institutions. The survey consists of questions mostly focusing on the satisfaction of students, and is also grouped into what are known as “factors”, such as campus environment, sense of safety, thoughts on Resident Assistants (RA), helpfulness of HRL staff and Gourmet Dining services. These questions remain year after year, so HRL can go as far back as 1999 to look at areas where we have improved and where we have stagnated. After these initial questions, Hart is able to choose what are known as “institution specific questions”. These are branching questions that focus solely on elements around campus, and change from year to year. Not only is the survey helpful to HRL, it also allows Tara Hart to work hand-inhand with a multitude of other departments on campus, including PC Support Services and Gourmet Dining Services. She is able to send out results to these different departments, so that they can focus on what needs work. As in past years, there are prizes associated with this year’s survey. The first 150 students to complete the survey and go to HRL will receive 24 oz Pirate blue aluminum water bottles. The grand prize, chosen by the EBI system at random, will be a Wii console and Wii Fit video game. The second prize will be an American Express Gift card and the third prize winner is awarded $50 in Pirate’s Gold. This year, the survey will run from February 22 through March 5, giving HRL an opportunity to be sure that half year students have had a month to experience everything asked about. For more information, students can look up HRL on Facebook (Seton Hall ResidenceLife) or visit the housing blog online http://tltc.shu.edu/blogs/projects/housing/. Contact Ryan at ryan.garrity@student.shu.edu
THE STILLMAN EXCHANGE
Stillman News
Career Fair Brings In Top Companies to Work For By Beverly Makarios, Assistant Editor
Aflac
Students did not miss the chance to network with employers for potential internships and jobs at the annual all-campus career fair at Career Fair 2010, held on February 11. CNNMoney.co m, along with Forbes, lists annual rankings on the 100 Best Companies to Work For. Out of these companies, we chose three that were present at the Career Fair.
What type of candidates Someone who wants to run are you looking for? their own business.
What position are you recruiting for?
Sales and Account Representative/Manager
What is the interview process like?
2-Step process: 1. Information session 2. One-on-one interview
Where can students apply?
www.aflac.com
Recruiters from Aflac, Ernst & Young, and PricewaterhouseCoopers shared with The Stillman Exchange
Ernst & Young
PricewaterhouseCoopers
Declared Accounting majors; sophomores and juniors
Junior Accounting majors; 3.4 GPA+
Summer Leadership Program Intern/Audit
Assurance National Professional Group Intern
3-Step process: Behavioral-type interview; 1. On-campus interview scenario questions regarding 2. Office Interview leadership skills and team3. Meet 3 partners work. www.ey.com/careers
the type of candidates they each were recruiting, and the different career positions available.
www.pwc.tv
Contact Beverly at beverly.makarios@student.shu.edu
Pitcher Perfect Stillman Senior Shines By Sofia Iqbal, Stillman News Writer This week’s Standout Stillman Senior, Danielle Zanzalari, a distinguished scholar who has earned an array of top honors in her academic career. As a Leadership Development Honors Finance major, her top honors include a John Deehan Scholarship, a Business Honor Society Scholarship via Beta Gamma Sigma, and she continues to shine in her academics. She is a dedicated leader and an outstanding athlete. Danielle continues to pursue her career in finance and economics through the research projects she is currently working diligently on, and she shares her experience with those projects with The Stillman Exchange. Sofia Iqbal: How would you describe the valuable experience you have gained from working on several research papers? Danielle Zanzalari: The papers I am writing are because I am looking to become a professor in Economics. I am currently awaiting responses from graduate schools for a Ph.D. in Economics. I decided at the
Ph.D. in Economics. Furthermore, I am writing two research papers with Professor Rotthoff. In the academic world, research is what really counts for your credibility and the more I publish and the sooner I start, the better I will be when I look for a job four to five years down the road. SI: What are some takeaways you have gained from your research experience?
Photo courtesy ofSHU Athletic Communications Besides excelling at academia, Danielle is a pitcher on the Seton Hall Softball team
end of my sophomore year, after three finance internships, that I did not like the financial world. I did not like the 9 to 5 schedule or the same workload day after day, with new numbers or clients. I was bored. So, I approached Professors Rotthoff and Overbay to ask for advice. They encouraged me to pursue an advanced degree and thought I would be perfect for teaching at the collegiate level in business. It is because of them that I am pursuing a
Celebrations for the Chinese Lunar Year of the Tiger By Cindy Qi Zhang In this snowy winter days of the United States, Seton Hall celebrated the Chinese Lunar Year of the Tiger on February 15 during its annual “China Night”. During the event, symbolic performance teams between the Dragon team and the Tiger team took place. The reason these two animals were picked is simply because the Dragon is a traditional symbolic animal sign for the Chinese and this year is the Year of Tiger. The performances of the Dragon team included:
DZ: A key take away is definitely the network that I have developed at SHU. If it was not for Professor Overbay and Professor Rotthoff, I would definitely not be in the position I am today. Students should really read some of the research/work that they publish in, because it is not only original or well-thought out but it is truly interesting! And it gives them insight to who their professor really is not only as an academic, but as a person as well. For the complete interview with Danielle, visit www.stillmanexchange.com. Contact Sofia at sofia.iqbal@student.shu.edu
Photo courtesy of Simon Xin He
Mongolia Dance; Advanced Chinese Class Chorus; Chinese Traditional Opera of Facing Changing; Chinese Traditional Instrument Performance of Koto; as well as the National Dance of Cai Yun Zhui Yue. The performances of the Tiger team included: Ballet; F.L.A.S.H. Dance Troupe; Piano performance; and Three-section Cudgel. The setting up of both gaming and lottery enabled the hosts to interact with the audience, which added more value
Cultural Chinese dances filled the evening in celebration of the Chinese Lunar Year of the Tiger
and achieved more effect for the party. With the hard work of the Chinese professors and students, “China Night” was a success. There was enthusiastic participation from native students here which made us exhilarated. When we look back, the success absolutely generates the
perspiration and endeavors from all of the staff members and the enthusiasm from students. “China Night” was definitely a memorable event. Contact Cindy at qi.zhang@student.shu.edu
Stillman News
THE STILLMAN EXCHANGE
TUESDAY, FEBRUARY 23, 2010
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Are you LinkedIn? Social Networking Provides Means to Attaining Jobs By Jessica Sladewski, Stillman News Writer Many college students ar econnected to Facebook, Twitter or other social networking sites, but how many are connected to a site that will actually help us find internships and jobs? This is exactly what LinkedIn does – it connects participants to different people and groups that can help one get ahead with his or her career. LinkedIn is the world’s largest professional networking site which allows all who use it to establish a professional profile, stay in touch with colleagues, and friends, explore opportunities, and find experts and advice. On Tuesday, February 16 students gathered in the University Center to learn about LinkedIn from Jim Dipietropolo, Seton Hall alum, who is now an executive recruiter for companies including Johnson and Johnson, Pepsi, and Kraft. Dipietropolo has to be able to fill almost every position for the companies he works for and he uses LinkedIn to do all of his recruiting. Here are a few steps to get started on LinkedIn. 1. Set up your profile. Every profile has a picture so pick a professional picture. Wearing a suit is a must. 2. Sell yourself. List all current and past experience on your profile. Also include educational experience and any relevant activities in order to look as appealing as possible. Your profile should also contain your e-mail address and phone number as a way for employers and recruiters to contact you.
beneficial because managers usually with impressive credentials can recommend your profile if they are on LinkedIn as well. Students who have never had an internship can still benefit from past managers or present managers because they can also recommend your profile.
Photos courtesy of www.businessinsider.com
6. Network. LinkedIn is a great resource to learn about different events such as job fairs and job postings. By searching different companies, results will show the availability of jobs all over the world. Likewise, by limiting the search, results will show opportunities that are available closer to a certain location. After interesting jobs are found, begin networking with profiles affiliated with that company. According to Dipietropolo, the most important way to network at this point is to “start from the top and work your way LinkedIn, a fairly new networking site, incorporates professionalism and socializing. Users are gen- down.” Contact top executives before contacting HR because being exposed to the top erally older and more affluent to the business world and job market. executives and impressing them may give 3. Add contacts. Uploading contacts you more leeway into the company rather either manually or via an e-mail address 4. Seek recommendations. People can than impressing the HR representatives book is crucial when setting up your recommend individuals on LinkedIn based first. Always be sure to sell yourself. LinkedIn profile. Having several contacts on past performance from job experiences. allows your profile to be linked to others, Recruiters use recommendations as a referthereby increasing the chances that your ence and many LinkedIn job posting require Contact Jessica at profile will be seen by potential employers. recommendations. Having internships is jessica.sladewski@student.shu.edu
Speaker Educates Students on Importance of Relationships By Ryan Garrity, Stillman News Writer It is not often that students are given the opportunity to pick the brain of someone who has worked with the likes of Allen Iverson, Venus Williams, and Jay-Z, but that was exactly what Sports Management students got the chance to do last Thursday. Stillman students gathered in the Jubilee Hall Auditorium the night of February 18 to meet Marc Williams, CEO of Williams Communications, LLC, a fullservice marketing firm specializing in developing strategies, coordinating special events, entertainment talent management, marketing strategies, brand awareness, and brand development for clients who span the worlds of sports, music, entertainment, corporate, and not-for-profit. After graduating from William Paterson University, Williams was able to attend graduate school in the prestigious Sport Management program at the University of Massachusetts. After spending some time researching the sports industry in Nebraska, he was offered a job in the NBA Front Office. Unfortunately, the NBA went on strike that year leading to that position being frozen. It was then that he was snatched up by Reebok, where his first job was to look after Allen Iverson in Philadelphia for two months. This was followed up by spending time with Venus Williams in London. Marc Williams soon felt like he wanted to do more, and eventually moved in order to work for Footaction, where he accomplished enormous feats, such as launching the first national sports retail partnership with a music artist, and was even thanked by Outkast at the Grammy Awards. He was taken in by Champs and made
5. Join groups. Joining groups allows unlimited group messaging, meeting new people and asking questions. LinkedIn participants join groups based on their major or profession and individuals can post questions on the group page. In addition to adding value to group discussions, joining groups can also enhance your written communication.
their Global Brand Director after he was able to put on a concert at the Apollo Theatre called the Nike Wake Up Call. It was through this that he met some of the music industry’s biggest players. Williams was also a key player in starting up the And 1 Mix Tape Tour and has been able to successfully negotiate product placement in numerous feature films. The main focus of Williams’ talk was something that we work on every day and that many of us take for granted—relationships. He told students that one never knows who he or she is going to meet or where the person sitting next to one will be in five years, so it is important to treat our personal and business relationships much the same. The importance of relationships cannot be emphasized enough and should always be cared for and maintained. He also told students that integrity is the number one trait in the business world—a person’s word is their bond, and it is not something that should be broken. After approximately 50 minutes of regaling students with stories and countless pieces of advice, the floor was opened to a question and answer period where Williams left those in attendance with a few final pieces of advice: the first was to make sure to always treat others with respect. The second was the one that truly resounded—if an opportunity presents itself, take it. Approach it with heart and passion, and make sure that shines through in everything that is done. That heart and passion will be what takes a person places.
Contact Ryan at ryan.garrity@student.shu.edu
Chinese Reality Show Teaches Chinese Citizens about Entrepreneurship By John Ceniza, Stillman News Writer Businessmen, alumni and students gathered to watch a game show documentary, “Win in China” by Ole Schell, and to listen to a panel consisting of Shau-Wai Lam, chairman of DCH Auto Group, Stillman Professor, Dr. Jason Yin, and award-winning documentary filmmaker, Ole Schell himself in Jubilee Auditorium on Tuesday, February 10. Win in China, a documentary, follows a Chinese reality show that is the first of its kind. As described by the panel, the show is a cross between U.S. hit TV shows, American Idol and The Apprentice where entrepreneurs competed for the grand prize of $1.5 million. The show has great significance because it is an excellent example of the capitalist system China recently adopted. Not only was the show entertaining, it also taught the viewers what it takes to start and operate a business - a new concept that the majority of Chinese citizens have no idea about. Win in China started with 120,000 contestants but only 108 were chosen for the competition. The show was split up into three basic parts. The first stage taught the contestants and audience what entrepreneurship really means. In the second stage, challenges were provided to these contestants and eliminations took place regularly. The third and final stage involved only a handful of contestants split into two teams. The third stage was filled with drama as disagreements regularly occurred along with cheating and fighting. The documentary interviewed a few favorite contestants who shared their histo-
ry and future business plans. Each person had a strong personality. One of the interviewees, Song Wenming, became the champion of the competition.
“The point of the show was to stimulate the economy and encourage people to start their own business in part to supply jobs for these people who wanted to join... modernized China” The completion of the documentary led to a panel discussion, moderated by Dr. McCrea, Seton Hall Department of Management professor. When asked what factors contributed to the tremendous success of China’s economy, Schell’s responded, “The point of the show was to stimulate the economy and encourage people to start their own business in part to supply jobs for these people who wanted to join … modernized China.” When asked how entrepreneurship in China is different or similar from the U.S., Lam stated, a big difference was that in the Chinese business world, “Relationships and trust are more important than financial numbers.” All three panelists also supported the idea that China’s rapid growth calls for fast-thinking businessmen who can react to the many changes that occur even within a year. China’s fast growing economy seemed to confirm the belief that China will continue to emerge as an economic superpower. Contact John at johnalex.ceniza@student.shu.edu
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TUESDAY, FEBRUARY 23, 2010
Ethics
THE STILLMAN EXCHANGE
Anti-Abortion Billboard: Promoting Helpful Message or Fueling Racial Tensions? “An anti-abortion group from Georgia has recently made headlines for putting up a series of racially charged billboards. These billboards, which state “black children are an endangered species”, have the group accused of racism and distasteful advertising. Is this message an effective way for the group to make the public aware of abortion rates, or is it a demeaning and racist advertisement?” Liliana Garcia: Senior, Psychology Major
Empathy and Education, Not Public Embarrassment Georgia Right to Life, an anti-abortion group, has taken it completely too far! They are getting their message nowhere with their use of these racially targeted billboards; the only thing the ads do in my opinion is degrade black women and promote racism. This organization claims that the issue of abortion is bigger than any one of us and that is a human crisis. Instead of trying to understand if there are other factors contributing to why black women are having more abortions than other women, they are singling them out by ridiculing them in public. Are we supposed to believe that black women are irresponsible and don’t want to raise their children? I understand that
according to the Centers for Disease Control and Prevention, a majority of the abortions in Georgia in 2006 were performed on black women, even though they only comprise a third of the population, but this only shows that there are bigger issues facing that community. If this anti-abortion group is worried about the amount of black women seeking abortions, they should provide empathy and education, not single these women out in public. Georgia Right to Life is going about this in a completely wrong way. They are supposed to be promoting their side of the abortion issue; it should be about being against abortion. They make it seem like they are against black women, not abortions. They are asking black women to get outraged, well if I was a black woman I would be more outraged that they dare to place an ad like this, not that other black women were getting abortions. This ad cre-
ates a stigma against black women and shows it to the whole community. It allows for any person that is not black that happens to be pro-life in that area to now look down on any person of color, because they supposedly are going to make the “wrong” decision to have an abortion. They are also trying to pass legislation that bans abortions based on race according to an article on diverseeducation.com. So, instead of working on banning all abortions, this group is focusing its efforts on only black abortions. The idea behind anti-abortion groups is supposed to be the fetus has a right to live, that you are killing an innocent life and that there are other options, but they are not stating this at all. Abortion is the issue that they are supposed to be tackling, not race.
Contact Liliana at liliana.garcia@student.shu.edu
Photo courtesy of NYDaily News
A copy of one of the billboards put up by Georgia Right To Life, an anti-abortion group.
Christina Bosco: Senior, Marketing Major
Advertising Genius For AntiAbortion Group The ideal purpose of an advertisement is to do one thing and one thing only, grab your attention. As a marketing major, I’ve learned the various techniques by which advertisers tend to do so. Some ads use sexual, emotional, or physical appeal, whereas others, such as PSAs and disease-prevention ads, use vulgar or suggestive images and text to promote awareness or evoke a sense of social responsibility within consumers. This particular pro-life ad, for example, creates awareness through shock and vulgarity. Some may call it offensive; others, effective. Although I don’t necessarily agree with the values or views of the anti-abortionists who created this newsworthy billboard, I will agree that it is a brilliant way to achieve the primary goal of advertising; to get people talking. I must admit that when I first saw this ad, I agreed it was a bit distasteful. This ad not only exploits children, but targets a specific racial group. However, the more I researched, the
more sense the ad made. To be clear, this ad is in no way suggesting that black women do not want or care about children; it is simply stating the fact that black women have higher statistics of using abortion to resolve an unwanted pregnancy, as compared with other ethnicities. In fact, according to the Centers for Disease Control and Prevention, black women are three times more likely than white women to get an abortion, making up 37 percent of the total number of abortions nationally.
“Although I don’t necessari ly agree with the values or views of the anti-abortion ists who created this news worthy billboard, I will agree that it is a brilliant way to achieve the primary goal of advertising; to get people talking.” In any case, the most intriguing part of this ad and the aspect that provoked me to research like crazy is the text to the left of the baby. The notion of comparing the living, non-aborted black babies to an endangered species is ingenious.
It does exactly what it needs to do: create anti-abortion awareness. It stops you in your tracks. It makes you think, even if the only thought you have is, “wait, what?” This ad is successful on two accounts. On one hand, it is getting attention. Just like publicity, any attention is good attention. On the other hand, it is creating such a stir that people are being forced to voice their opinion. They are taking sides and debating; is the ad offensive or not? Are you pro-life or pro-choice? Whether you agree or disagree, the point is, you are talking. All of that talking is helping to form one of the oldest tricks in the book; word-of-mouth marketing. This ad may be making a brash statement, but it is doing nothing legally wrong. The issue of race is still very dynamic in America; if statistics showed that white women aborted more than black women, would this ad be creating so much attention? Maybe, maybe not. But, just like pro-choice activists speak their minds, so can the other side. This ad may be bold and may be crude, but in the end, it is just another display of our right to freedom of speech and opinion.
Gabriella Petrillo: Sophomore, History Major
History Should Not Repeat Itself It is not the question in regards to freedom of speech and opinion we should be asking. Instead, we should be concerned with the prejudicial remarks made by the “Too Many Aborted Campaign”. Nobody made a biased comment or opinion, because yes, the statistics may be right, in that black women have abortions three times more than white women and that the majority of abortion clinics are located in urban areas. Yes, it is true that almost 40 percent of pregnancies of black women end in abortion and African Americans only make up 13 percent of the U.S. population, but must we use undermining comments to make a point? Focusing on race in this way only serves to pedal our country backward in our attempts to enjoy equality. We have come such a long way in the United States in terms of unity and equality, and the fact that we are still even using words like “black” and “white” just shows that perhaps, although we are all free and “equal,” we are still left with the remnants of our past history of slavery, segregation, and injustice. We are still segregating against not only black people, but other ethnicities as well. Is calling black children “endangered species” the best we can do? Instead, if the statistics are true, we should be assisting all women in getting the proper knowledge in abortions and sex education. It is not even the fact that it is black women who make up a large percentage of abortions; it is the fact that it is women in underprivileged areas, specifically urban settings, who use the immediate alternative of having an abortion. A majority of the women living in these areas happen to be black. If women in urban areas are not as well educated as those in more prosperous locations, then they need to have the right guidance. At a point in U.S. history, race was a way to show superiority and inferiority, but in 2010, with a black president in office, it is important to re-evaluate our social issues. Calling any child, or group of children “endangered” is ignorant, especially when this label is attached to a race group. Haven’t we come farther than that? This group should take a different approach if they really want to lower the abortion rate. Contact Gabriella at gabriella.petrillo@student.shu.edu
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 23 , 2010
9
Editorials Obama Ignores Innovative Energy Plans By Rachel Ressler, Domestic News Editor President Obama this week announced a plan to finance with government dollars a nuclear reactor plant in Georgia. His plan has drawn extreme criticism, and legitimately so. President Obama’s plan, while somewhat environmentally and economically friendly, ignores more innovative energy plans like windmills in favor of nuclear power, which Erich Pica of the Huffington Post called “as old as the hula hoop, and … just as technologically advanced”. The two reactors that President Obama announced are located in Burke County, GA, and are scheduled to be finished by 2016-2017, and would receive a little over $8 billion in funding. Some site preparation has already been done. A new nuclear power plant has not been built in the United States in almost 30 years, since the explosion at Three Mile Island in Pennsylvania, for good reason. Past power plant projects have taken large amounts of time and money – according to Greenpeace, the average nuclear power sta-
Photo courtesy of Around the Sphere Wordpress
President Obama plans to grow energy through nuclear power plants, despite their risky and outdated nature.
tion costs three times as much and takes twice as long to build, as its budget and plan says it should. Though the loan guarantee will undoubtedly help the project maintain some semblance of a schedule, perhaps one of the more important aspects is that of job creation. One of the positives viewed by the administration is that the project will create
The Stillman Exchange The Official Business Publication of Seton Hall University Executive Board Managing Editor Gerardo Pecoraro Assistant Managing Editors Ian Mehok Margaret Reilly
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thousands of construction jobs, and will afterwards provide about 800 permanent jobs. Even this part of America’s New Nuclear Plan, though, has come under fire. The United Steelworkers Union has already started protesting the plant, saying that if the Obama administration plans to spend billions of taxpayer dollars on the construction of a new nuclear power plant, the jobs created should be going to
American workers. Currently, the company which designs the reactors holds contracts with steel mills in Japan and South Korea. The same company, Westinghouse, has also been told by the Nuclear Regulatory Commission that it needs to redesign parts of the reactor because they don’t meet safety regulations. Last but not least, though nuclear reactors are an undeniably environmentallyfriendly way of creating energy, they come with side effects like nuclear waste – and there is currently nowhere to store this nuclear waste. A proposed, started, and abandoned site in Yucca Mountain, Nevada has been declared after many years a failure, and nuclear waste cannot actually be stored there. President Obama and his administration would do better to stop pandering to Republican nuclear-power lovers and should instead start concentrating on less expensive, cleaner, and more modern energy options which have not already proven to be costly, ungainly, and dangerous. Contact Rachel at rachel.ressler@student.shu.edu
Senator Steps Away as Partisan Politics Cross the Line By Kaitlin Tonti, International News Editor Last Monday, February 15, Senator Even Bayh of Indiana announced he no longer plans to seek a third term this election season. A surprise to his fellow democratic senators in congress, they now worry his seat will be filled by a Republican as the state of Indiana commonly leans toward the conservative side. The late Teddy Kennedy’s senate seat was recently won by a Republican, Scott Brown, and more seats are at stake in the states of Colorado, Delaware, Illinois and North Dakota. The Democratic Party is beginning to worry about its majority in Congress. However, is the problem for both parties this constant fight for a one to hold the majority? The reason behind Senator Bayh’s withdrawal from the race is due to the partisan politics that have overwhelmed the senate floor for the past decade. “There is too much partisanship and not enough progress- too much narrow ideology and not enough practical problemsolving. Even at a time of enormous challenge, the people’s business is not being done”, Senator Bayh stated during his press conference. Although political partisanship is not breaking news, the way in which parties interact with each other has become hazardous for the well-being and success of
this country. The United States is involved in many situations that need true leaders with a genuine interest in change to not only step forward but learn the definition of the word compromise. Senators Bayh’s recent decision and statement has made this problem extremely clear to his fellow colleagues, but does this mean politicians will begin to change their ways? The Democratic Party may be worried, but overall it is most likely politics will continue to proceed as normal. In a poll conducted by the New York Times, and CBS, 75 percent of responder’s disapproved of the work congress was doing while only eight percent believed current members merit re-election. These numbers are quite staggering and prompt the question: what should we expect of our politicians? Not only our politicians as individuals but working together as groups of professionals advancing toward a common goal? If this country cannot find cohesiveness in which they find the smallest area on which an agreement can be made, than this country will never find a way to affectively produce what we so desperately need; and that is change.
Contact Kaitlin at kaitlin.tonti@student.shu.edu .
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TUESDAY, FEBRUARY 23, 2010
Sports Business
THE STILLMAN EXCHANGE
Speedskater Celski gained creative sponsorships from injury By Tony Cramond, Sports Business Writer JR Celski has become one of the stars of the 2010 Winter Olympics, but not long ago his chances for participation were in question.
Photo courtesy of LA Times JR Celski will continue to garner endorsement opportunities from his performance at the Olympics.
amazing story of perseverance. The 19-year-old skater suffered a serious leg gash at the U.S. Championships in September and his Olympic dream was in serious doubt. But, Celski was able to recover from the injury, and was also able to land some related sponsors in the process. Celski partnered with 24 Hour Fitness and Aflac Insurance, who were all impressed by Celski’s resolve and determination. Both companies’ services aligned with Celski’s recovery process from the injury. Celski’s story is something that marketers dream of. In addition to 24 Hour Fitness and Aflac promotions, Celski is going to be starring in an advertisement for Comcast SportsNet Northwest in his home state of Washington. Also, Celski’s agent, Brandon Swibel of The Agency Sports Management, says that he is working on contracts with Wheaties and McDonalds. Swibel said that sponsorships for Olympic athletes are “really important considering they don’t get paid by the governing bodies—so he is able to compete, continue training, and traveling because of the support he gets from the sponsors.” So what is next for JR Celski? If he is able to continue to perform well in the Olympics, more endorsement opportunities will present themselves. Swibel believes that they will get more offers from companies by the time the Games end. While the question of if JR Celski will follow fellow Olympic medal winning speed skater, Apollo Ohno, into TV with “Dancing with the Stars” remains to be seen, he is just focusing on his skating as of now. Celski would definitely be open to bigger opportunities in the future, though. “He’s a fun guy and well spoken, so I think there could be some big opportunities down the line for him,” Swibel said. Contact Tony at anthony.cramond@student.shu.edu
Celski captured a bronze medal in the 1500-meter men’s short track event and also has an
Resurfice slips up when two machines fail By Robert Szeluga, Sports Business Writer The biggest mistake of the Vancouver Olympics may not have been made by an athlete. Last Monday, just the fourth day into the games, a one hour delay occurred during the men’s 500-meter speedskating event due to the failure of two ice resurfacing machines. The major problem, however, goes far beyond the one hour delay. Resurfice, an ice resurface company based out of Canada, was chosen as the official machine of this year’s Olympic Games. The failure of its two machines at the Richmond Oval forced the Olympic Committee to look in a different direction. Immediately after the delay, another resurfacing machine was ordered from Calgary. The machine was a product of Zamboni, a competitor of Resurfice. Zamboni is the current market leader and an Americanmade machine. Resurfice official Don Schlupp feels his machines have received unfair criticism. “Do I take it personally? Yes.” said the director of sales and marketing of the Elmira-based company. “This is our baby, our lifetime work.” Don and his brother Andy will remain in the Vancouver area for the rest of the games, overseeing their company’s 17 Olympia brand machines which are scattered in three different locations. Zamboni has also faced criticism as it was widely reported that the broken machines were Zamboni products. The company said that it was “deeply concerned” over the issue shortly following the false headlines. Sponsorships weren’t considered when trying to resolve the resurfacing issue according to John Furlong, CEO of the Vancouver Olympic committee. “I don’t have any opinion on any of the marketing questions, the
higher power here is that the venue must be perfect -- we have to have certainty. We now think we have it.” Zamboni was the official ice resurfacing company of the Olympics from 1994 to the 2006 games. Once again, the company has found itself a part of the Olympics. The night after the delay, a
Photo courtesy of Time Resurfice may have lost business when its competitor, Zamboni, was brought in after malfunctions during the Olympic’s speed skating event.
Zamboni and Resurfice machine shared the ice during the men’s 1000-meter speedskating event. Contact Robert at robert.szeluga@student.shu.edu
Sirius XM uses interesting marketing strategy to draw new subscribers to the radio provider By Rich Kimsey, Sports Editor The time has come for a company to skip the traditional marketing standby of paying for celebrity endorsements of their products and figure out a way to make the Photo courtesy of Sirius.com celebrities themselves into products. Sirius
Satellite Radio is doing just that. Howard Stern, the headline star for the subscription based radio service, earned a 5-year $500 million contract (less production expenses) for his show in 2004, which first aired on the satellite service in 2006. Many customers bought subscriptions almost solely to listen to Stern and his either love him or hate him style. This laid the foundation for Sirius’ strategy of attracting more customers. If the company can create shows hosted by popular celebrities, then those fans will come to Sirius and pay to listen. However, there is a potential problem with relying on paying celebrities to push Sirius’ revenue—it can get expensive. Sirius, which has a $2.46 billion market capitalization, has acknowledged that
most expenses incurred involve attracting new customers. Now that Sirius not only attaches its name to many celebrities, but creates programs specifically around those celebrities, it in turn cuts the cost of attracting new customers. Personalities like Stern have such enormous followings that fans are drawn organically to Sirius to hear his show. This aspect underlines the importance of Sirius making the right choice regarding show hosts to “endorse” the company. Heavy hitters, such as Martha Stewart, whom the company has invested $30 million over four years, and Oprah, have shown the satellite radio company’s willingness to aim big and broadly to attract celebrities with major followings. ...continued on page 11
NBA to test market with office in Russia By Scott Kim, Sports Business Writer With Russian billionaire Mikhail Prokhorov in the process of buying the New Jersey Nets for $200 million pending approval by the league owners, the NBA plans on using this new ownership to its advantage. The NBA has been consistently trying to spread the NBA brand internationally and with a Russian owner joining the league, the NBA has decided to open up an office in Russia. There has been a television contract already established in Russia for years and Scottie Pippen, along with A.C. Green, have recently held youth basketball in the country. Until now, that has been the extent of the NBA’s involvement in Russia. The NBA does not plan on using outside investors on their Russian office, as they did a few years ago when the league began operations in China. With the NBA not having much popularity in Russia yet, it plans on getting the youth interested in order to try and grow the popularity of the sport. The league is attempting to do this through the conduction of youth basketball camps, similar to the ones that were conducted by Pippen and Green. With the NBA reaching the apex of its potential in the United States, league sponsors are encouraging expansion internationally in order to maximize marketability. This has led to the opening of offices in London, Paris, Milan, Istanbul, Madrid, and now Russia. The NBA hopes to become as popular as soccer and hockey are internationally. David Watts of GSC, a Moscowbased sports consultancy, believes that the league has the potential to be, “a wellknown brand like the NBA in a very undeveloped sports market has huge potential.” This is why the NBA is so eager to take any openings, such as the one created by the purchasing of the Nets by Mikhail Prokhorov, to expand their brand internationally. The Russian branch isn’t the end of the NBA’s expansion either, with the league hoping to open up a new branch in India by the end of this year. With the continuous expansion of basketball, the NBA is hoping to become an even stronger global brand. Contact Scott at william.kim@student.shu.edu
Sports Business
THE STILLMAN EXCHANGE
TUESDAY, FEBRUARY 23, 2010
Miller improves from ‘06; impresses sponsors By Chris Jandreau, Stillman Sports Writer Four time U.S. Men’s Olympic skier Bode Miller still manages to keep sponsors even after failing to win any medals in the five events he competed in during the 2006 Winter Olympics in Torino, Italy. In the eyes of many Europeans, who watch skiing all year round, Miller is one of the best, but to those Americans who don’t follow it as much, he is just an athlete who didn’t win any medals. Stories came out, reported by Time Magazine, Newsweek, and 60 Minutes that Miller may have drank before some of the events in the 2006 Olympics. There were pictures taken of him at bars in Italy during the 2006 Winter Games. In 2006, Miller stayed right in the middle of the Olympic parties, but this year he was forced to live in condos that were bought by the United States skiing team that were secluded from that environment. Miller was given a room with Ted Ligety, who won the gold in the combined event in 2006. Both have the opportunity to attend the festivities, but Ligety has barely been seen at them and Miller hasn’t been seen at all. After the 2006 Olympics, Miller lost around $3 million from his
sponsorships, but is still sponsored by Nike, Head, and other European companie such as Superfund, an investment group from Austria, Hublet,a watch company with a special edition Miller watch from Switzerland, and Kjus, a ski brand store in Norway. Two of the bigger sponsors he lost were Barelli Pasta and Atomic, the company that made his skis. In his first event in this year’s Winter Olympics in Vancouver, Miller won the bronze in the downhill skiing event. Miller has also been very successful in the past. He won the overall World Cup in 2005 and 2008. He also won the World Cup six times for individual events in the past eight years. He had a great performance in the 2002 Winter Olympics in Salt Lake City when he won two silver medals, one for the combine and the other for the giant slalom. Miller’s past proves that he had the talent to be very marketable and if he continues to be successful in this year’s Winter Olympics, he will regain his marketability. Contact Chris at christopher.jandreau@student.shu.edu
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....Sirius XM continued from page 10 The company also has exclusive content with the NFL, NBA, MLB, NHL, NASCAR, PGA Tour, IRL, and English Premier League, essentially making it the radio medium of choice for national and international sports. There will come a time, though, when Sirius will have trouble keeping up with the salaries for its vast celebrity products. Through talent procurement, Sirius has found a way to create programming and also cut down on customer turnover. The company’s lower advertising costs and lower subscription acquisition costs have strengthened it enough to acquire competitor XM radio for $4.6 billion in 2008. It appears the strategy of creating content surrounding endorsement deals is the clearest channel for Sirius success for the time being, but it could prove too costly to continually hire celebrities in the future. Contact Rich at richard.kimsey@student.shu.edu
U.S. Formula 1 team in trouble without sponsorship help By Kayla Mjaatvedt, Assistant Editor Entry into the Formula One competition by the United States is now being threatened due to a lack of sponsorships for the team. Formula One is the highest class of auto racing, consisting of a series of races known as the Grand Prix. USF1 suffers from financial problems and Formula One CEO, Bernie Ecclestone is skeptical about the U.S.’s future in the competition. “I don’t think we will see the Americans,” he told The Express this month. Ken Anderson and Peter Windsor, founders of the United States team insist that the team will be in Bahrain for the opening race of the season. Anderson understands the trouble the team is having. “It’s always a struggle for new teams, any new business. Yeah, a couple sponsors have let us down a little bit, but we’re on track. It’s not an option not to be there,” he said in early February. The team is still missing a fully built racecar and will be missing a crash test in England this week. USF1 driver Jose Maria Lopez claims that the car will be tested in Alabama in late-February; however, there are no records of a test scheduled. Unfortunately, sponsor money did not come through in the way it was supposed to, which is now causing the company to be put on hold. They are now having trouble making payroll and paying suppliers.
The company apparently did not make January payroll. The employees, however, have been paid since that time and are working in the shop to try to finish a racecar and engine. According to some people, the only chance the team has of making it to the opening race in Bahrain is to buy a racecar, rather than building their own. On a lighter note, the team has brought in about $8 million from the sponsorship deal, for signing Lopez from Argentina. Anderson and Windsor had insisted that USF1 would have American drivers, like Danica Patrick and Kyle Busch. However, most American drivers seem to turn to NASCAR. “No Americans have licenses to race in Formula One at the moment, sadly, because all the money in America the last 10 years has been in NASCAR,” said Windsor. “Any good American racecar driver like Danica now, for example, goes to NASCAR because that’s where the future is, that’s where the money is.” Windsor hopes to have an American driver as early as the year 2011. This can only happen if USF1 can stay in Formula One. It is possible that if the team misses the race in Bahrain, it could be considered an infringement. Meanwhile, Anderson and Windsor focus only on USF1 making it to the opening race, despite the troubles that have occurred. Contact Kayla at kayla.mjaatvedt@student.shu.edu
Fleischer used tact and experience to help McGwire with apology By Travis Tosoni, Assistant Editor
Photo courtesy of ESPN
As Mark McGwire prepares for his first season as hitting coach of the St. Louis Cardinals, he requires a little help in regards to his public image. Former White House press secretary Ari Fleischer has been hired to serve as public relations adviser for the retired base ball star. Fleischer served as press secretary of President George W. Bush. McGwire’s public image has been tarnished ever since he admitted to using steroids in 1998, the year he broke the record for single-season home runs previously held by Roger Maris. Fleischer is the chief executive of Ari Fleischer Sports Communication; which deals with media training and management for sports and corporate figures. Fleischer and the Cardinals determined that McGwire would have a tough time ahead of him in regards to media pressure, so the two sides reached an agreement.
In December of 2009, McGwire and Fleischer met for the first time, and the two drew up an action outline. The first part of this plan was a press conference in January in which McGwire admitted his steroid use. The press conference was then followed by numerous interviews with media outlets. While McGwire’s apologies seemed sincere, he did make one critical error in his public apology campaign. He still insisted that his steroid use had no connection to his career home run totals and that he used the steroids for health reasons. Mark McGwire will still face scrutiny from media and fans, but with help from Fleischer, McGwire will be able to make all of the right moves. Back in the city where he gained most of his fame, McGwire can focus on helping the Cardinals hit, now that the steroids issue is in the past. Contact Travis at travis.tosoni@student.shu.edu
Twitter makes it easy for Olympians to promote brands By Anthony Holesworth, Sports Business Writer Over the past year, Twitter has exploded onto the social networking scene. Friends and fans can see the tweets to stay updated on peoples’ activities. It didn’t take long for professional athletes to get involved in tweeting. Led by the NFL’s Chad Ochocinco, athletes have consistently been in the news for their tweets. Sometimes the tweets are simple updates about players’ excitement on game day; other times, tweets are risqué statements and taunts to opposing athletes and teams. Most recently, tweeting has been used by athletes in the Vancouver Winter
Olympics. Right before the Olympics began, U.S. ski racer Lindsey Vonn tweeted to her fans that she would not be able to tweet during the Olympics. She thought there were Olympic rules against tweeting. However, the only Olympic rule against tweeting is that athletes are not allowed to make negative statements about the host country. When Vonn realized this she promptly posted a new tweet stating her excitement about the fact that she would be able to tweet throughout the Olympics after all. Since then, she has consistently updated her fans every step of the way on her Olympic journey. Some Olympic athletes have taken tweeting one step further; they have started promoting brands through their tweets. For
example, US speed skater, Apolo Anton Ohno recently tweeted the following: “Big ups to AT&T for sending me an international phone in time to use for the Games in Vancouver! Sweet!” An additional example is a tweet from another U.S. speed skater, Allison Baver. It read: “I just showered with Olay Body Quench Body Wash and used Olay Body Quench Lotion and my skin feels awesome! Aaaaaahhhh.” Both athletes are sponsored by the brands they are promoting in their respective tweets. The brands love this type of advertisement because it is cost effective. The IOC doesn’t encourage athletes to advertise products that aren’t Olympic partners.
Nonetheless, there are no policies in place that prevent athletes from doing so. Therefore, until new rules are put into effect, athletes will continue to plug their brands via social media. Technology is constantly changing and advancing. Rules will eventually be put in place to establish the extent to which new technology can be used. Athletes promoting products on Twitter is a new, unprecedented form of advertisement that makes it cheaper and easier for brands to market their products. Contact Anthony at anthony.holesworth@student.shu.edu
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TUESDAY, FEBRUARY 23, 2010
Stillman Sports
THE STILLMAN EXCHANGE
Tiger’s timetable for return to golf still in question By Anthony Crisci, Editorials Editor Tiger Woods went back to the state where it all started, and apologized to friends, family, and fans for his recent actions. In November, Tiger Woods was in an auto accident that changed his life forever. The accident sparked simple rumors about the number one golfer in America and by December ended with speculation of Wood’s having a handful of affairs. Now it is late February and Woods is reported to have been with somewhere near 10 or more women. On February 19, Woods came out of the dark and made his first public statement since the accident. He sincerely apologized
to a large group of people, including his wife. Woods admitted what he did was wrong and selfish, and seemed to be deeply sorry as tears formed in his eyes. “I was unfaithful,” Woods said. “I had affairs. I cheated. What I did was unacceptable and I am the only person to blame.” His wife, Elin, wasn’t present during the statement and there were about 40 people in attendance for the apology. Woods chose not to take any questions after his announcement and hugged his close friends and family before exiting immediately. As for his return to golf, Woods was very uncertain simply saying that the day of his return would come, he’s just not sure
when that day will be. “I do plan to return to golf one day,” he said. “I just don't know when that day will be. I don’t rule out it will be this year.” Woods also announced that he will seek further treatment for his problem that many have called a sex addiction. He reported that his therapy towards treating his problems would start immediately tomorrow. Woods has been absent from the game of golf since the November and doesn’t plan on a return until his personal issues are solved.
Photo courtesy of Getty Images
Contact Anthony at anthony.crisci@student.shu.edu
Woods addresses media in Ponte Verde Beach,FL
Stillman Sports U.S. sailing team captures America’s Cup Super Seven By Ian Baker, Stillman Sports Writer
7. The first ever outdoor American Hockey League game is scheduled for February 20. The minor league affiliate of the National Hockey League, will have the Syracuse Crunch and Binghamton Senators on display outside at the New York State Fairgrounds in Syracuse, New York. 6. New York Jets quarterback Mark Sanchez underwent successful surgery to repair a ligament in his left knee. Sanchez played through the injury for the majority of last season. The surgery will cause Sanchez to miss the beginning of offseason workouts. 5. The International Olympic Committee will allow United States men’s hockey goaltender Ryan Miller to keep some of the designs on his helmet that were originally deemed a violation by the IOC. Miller has a tribute on the back of his helmet to a cousin who died of leukemia and, which the IOC considered a violation against their rules against advertising. 4. Denver Nuggets head coach George Karl has been diagnosed with throat and neck cancer. Karl will be missing upcoming games in order to go through a treatment program consisting of radiation and chemotherapy. This is Karl’s second battle with cancer, after overcoming prostate cancer in 2005. 3. Danica Patrick finished 35th in the Nationwide Series DRIVE4COPD 300 race at Daytona Speedway. The race was Patrick’s first official race in the stock car series, after racing several years with Indy cars in the Formula One series. 2. Spring training has officially begun for Major League Baseball. The defending World Series champions New York Yankees enter training camp with new centerfielder Curtis Granderson, and the New York Mets begin spring training with their newly acquired outfielder Jason Bay. 1. The United States Olympic team set a new record on February 17 by capturing the most medals in a single day. Team USA won six medals in total on that day, including three gold medals.
Larry Ellison and the BMW Oracle team recaptured the 33rd America’s Cup after an 18 year absence from the United States. Sixty-five-year-old Larry Ellison, CEO of Oracle Corporation, financed the creation of the Cup winning vessel. The ship was a trimaran with an unusually large sail that measured 223 feet high. BMW Oracle beat two time defending champion Alinghi on the 39 mile course by five minutes, 26 seconds. Alinghi is a team from Switzerland sponsored by billionaire Ernesto Bertarelli. The America’s Cup is a best of three leg race. BMW Oracle swept the series, claiming the America’s Cup after winning the first two legs of the three part series. With the victory, team BMW Oracle brought the Cup back to the Golden Gate Yacht Club in San Francisco. Not only was there drama on the water, before the race even took place Bertarelli and Ellison were locked in various legal battles. The two took turns suing each other over everything from the type of boat used, to the country where the race should be held. “The only thing we ever wanted was to meet Alinghi on the water with a fair set of rules, and that's what we got,” Ellison told the Wall Street Journal. During the post-race news conference, Bertarelli congratulated Ellison and the BMW Oracle team on their victory. “They were faster, so good on them,” Bertarelli said.
However, he still believes that the Americans had an unfair advantage in the race. “They got a little help from the legal system in New York,” he said. “That always makes things difficult for us Europeans to get the same advantages.” This edition of the America’s Cup had some alterations to it. Usually the challenger is selected through a separate regatta. The winner of the regatta faces the defending Cup champions. However for this race, there were no pre-cup regattas. The other change made was the fact that instead of racing with single hulled boats, the teams used multi hulled boats. For BMW Oracle CEO Russell Coutts, the victory marks his fourth time winning the America’s Cup. In 1995, Coutts captured the Cup sailing for Team New Zealand. In 2003, he sailed for Alinghi, defeating his native country of New Zealand. Bill Koch is the latest American to win the America’s Cup. He was also a part of the team in 1992 that defeated a team from Italy. Now that the 33rd America’s Cup is concluded, the next question to be answered is where the 34th America’s Cup will be staged. Ellison said he would like to see the race be raced in San Francisco, where the U.S. yacht club is based. He also said that he would like to have the next America’s Cup be a multi-challenger competition. Ellison hopes that this will help boost the popularity in the United States. Contact Ian at ian.baker@student.shu.edu
SHU baseball adds new member for 2010 season By Kevin Fountain, Stillman Sports Writer For many young baseball players, childhood was spent roaming the town’s baseball field and enjoying the fun of tossing a ball against a wall. Unfortunately for kids like Connor MacKay, this simple pleasure seems like nothing more than a dream. Luckily for Connor and his family, the Seton Hall Baseball team paired up with the Friends of
“The determination this young man has to stay alive sparked interest in sophomore pitcher Collin McGowan” Jaclyn (a non-profit organization dedicated to pairing children suffering from brain tumors with NCAA teams) to make this dream a reality. The newest addition to the Seton Hall Baseball team for the 2010 season is sevenyear-old Connor MacKay, a passionate young man with a love for sports and a desire to live. In May of 2007, Connor was diagnosed with Craniopharyngioma, a slowgrowing calcified cystic tumor that caused him to experience countless surgeries and
treatments that no child should ever endure. After spending two years in and out of countless hospitals, including a trip to Boston for a Proton Radiation, Connor was found to have MoyaMoya Syndrome, a very rare condition in which the walls of the internal carotid arteries, which supply blood to important areas of the brain, become thickened. The determination this young man has to stay alive sparked interest in sophomore pitcher Collin McGowan to bring Connor aboard. With a team focused on the dedication and determination of its players, Seton Hall baseball head coach Rob Sheppard contacted the MacKay family in hopes of bringing Connor aboard the Seton Hall Pirate Baseball team. As an avid sports fan, Connor and his family were invited to the Prudential Center on December 12 for a chance to meet the entire team before watching a Seton Hall Basketball Game with special courtside seats. Following the game against VMI, Connor was able to stay and watch his favorite New Jersey Devils beat the Philadelphia Flyers 4-1. After spending an entire day with his new teammates, Connor couldn’t wipe the massive smile from his face as he instantly became part of something he could only dream of experiencing: a team and a tradition. This past Christmas, Connor received a brand new baseball glove, bat, helmet, and
bag that he hopes to show off during the upcoming season with the rest of the team. The team made an incredible impact in the heart of Connor and his family, but even more so, took on a teammate that would forever change the baseball team’s lives. Connor and his family can be found on
Photo courtesy of Kevin Fountain Connor MacKay with the Pirates baseball team
Facebook under ConnorIsATrooper as well as at www.connorisatrooper.com. Contact Kevin at kevin.fountain@student.shu.edu
THE STILLMAN EXCHANGE
Domestic News
Survey: American Colleges Too Concerned About Budget; Not Enough Focus on Education By Amanda Genabith, Domestic News Writer Sixty percent of Americans feel that colleges and universities are more concerned about their bottom line than they are about educating their students, says a new survey released February 17. According to participants in the study, college is an important choice, with 55 percent saying they feel it was necessary to have a college degree in order to succeed. That percentage is up by 24 percent from 2000. In contrast, only 28 percent — down from 45 percent in 2000 — feel that college is accessible for the majority of graduating high school students. John Immerwahr, an author of the report, said in a New York Times interview, “It’s a new kind of misery index. This is really important, and it’s really inaccessible.” The survey, which asked over 1,000 Americans a variety of questions during December, was compiled by Public Agenda and the National Center for Public Policy and Higher Education into “Squeeze Play 2010: Continued Public Anxiety on Cost, Harsher Judgments on How Colleges are Run.” In the survey, the public did provide college and university leaders with possible solutions such as accepting more students or lower spending, two options they feel would not decrease educational quality. But as Terry Hartle, the senior vice
president of government and public affairs for the American Council on Education, said “It’s nice to think that we can have guns and butter, but it’s not that easy.” This survey, according to Patrick Callan, the president of the National Center for Public Policy and Higher Education, makes clear that the public has a “vote of no confidence…in those who are working in higher education.” He notes though that nine out of ten Americans voted “somewhat
or very likely” that they would send their high-schooler to college. While Americans are trying to send a message to colleges and universities to stop raising tuition, it is likely that they will continue, as Hartle said, “to grin and bear it.” The survey had a 3.05 plus or minus sampling error. Contact Amanda at amanda.genabith@student.shu.edu Photo courtesy of St. Louis Post Dispatch
TUESDAY, FEBRUARY 23, 2010 13
News Briefs Doctors Suggest Progesterone as Treatment for Head Injuries Dr. David Wright, associate professor of emergency medicine at Emory University in Atlanta, will be running a trial that uses the sex hormone progesterone as a preventative measure for patients with serious head injuries. Previous studies show that progesterone supports neuron development and protects damaged brain tissue. Patients involved in the trial will receive an infusion of natural progesterone derived from yams which will last four days. The study will involve 1,000 patients from American trauma centers who have sustained blunt force injuries. F.B.I. Closes Anthrax Letters Case The F.B.I. has accused Bruce E. Ivins, a biodefense expert for the United States Army, of being the sender of the anthraxlaced letters which killed five people eight years ago. The report released theorizes that Ivins embedded coded messages into the letters he sent using biochemistry DNA. The F.B.I. has been criticized by Rush Holt, a New Jersey Democrat and physicist, for calling the case closed too soon, saying the evidence was too circumstantial and would not hold up in court.
Courts Waiting for Ruling on ‘Drew’s Law’ An Illinois court may allow hearsay in a court proceeding against a local police sergeant who is accused of murdering his Cartoon from St. Louis Post Dispatch illustrates the economic burden third wife and is a suspect in the disappearthat students endure for higher education ance of his fourth wife. There is no physical evidence connecting Drew Peterson to either incident, but witnesses have testified that the women were afraid of Peterson. Hearsay, a statement made outside of judicial proceedings, is considered unreliable By Padmavathy Sonti, missionaries. before.” and not permissible in court. Drew’s Law In Haiti’s capital, Port-au-Prince, two Throughout the ordeal, the Haitian and would allow hearsay if the prosecution can Domestic News Writer members of the group, group leader Laura American governments have kept in touch. use it to prove the defendant is guilty of “The United States Government murder. Eight out of the ten American mission- Silsby and Charisa Coulter, still remain in custody. Judge Saint-Vil intends to further respects the sovereign right of the aries who were arrested for kidnapping a investigate the purpose of the women’s Dec. Government of Haiti to conduct its own Veteran Rescues People Trapped in group of Haitian children after the earth2009 trip to Haiti. judicial processes," P.J. Crowley of the U.S. Office quake were released on Wednesday, Feb. 17, In addition, many questions continue to State Department stated. "Haitian authoriIn Austin, Texas, an Iraq war veteran 2010. ties have been cooperative the ladder in his company truck to used The missionaries, most of in ensuring the individuals' people who were trapped in a five save them from two Baptist churches in safety and welfare since building. Robin de Haven, office burning Idaho, were caught as they their arrest and we have a glass company, noticed a for works who attempted to transport 33 Haitian every expectation this will plane crash into the buildlow-flying small, children aged two to 12 into the continue.” to climb up and help ladder his used He ing. Dominican Republic on Jan. 29. Transported in a U.S. software engiplane’s The out. workers the Lacking proper documentation for Air Force C-130 cargo flew his plane IRS, the with unhappy neer, the children, they were charged plane, the eight missionarwhere building, the of floors lower the into with child trafficking and jailed for ies arrived in Miami, . worked. agents IRS 200 three weeks. Florida late Wednesday In the wake of the devastating night. Angry Professor’s History of Violence 7.0 magnitude Haitian earthquake, According to Gary Under Investigation the group was on a “rescue misLissade, the lawyer for one The University of Alabama professor sion” to transport children left of the Americans, “the fact with killing her three colleagues charged homeless to an orphanage in the that there were no condidenied tenure says she does not being after Dominican Republic. tions or bail is a great indiincident, but is sorry for it. the remember “The reason I went was for the cation that the charges will six of her colleagues, shot Bishop Amy relief,” stated Jim Allen, one of the be dropped.” on Friday, Feb. 12. fatally, them of three eight missionaries to return to the Photo courtesy of Fox News "We hope and pray accused of fatally previously was Bishop United States. “They still need that our release will allow family’s home in the in brother her shooting Eight missionaries charged with kidnapping Haitian children were released to the your help. I hope that that can coneveryone to focus again in 2003 in conquestioned was and 1986 United States Feb. 17 tinue.” on the dire conditions that bombing of mail attempted the with nection While in jail, the group, named New be raised about Silsby’s relationship with a remain in Haiti. People are still suffering shooting brother’s Her professor. Harvard a Life Children’s Refuge, attracted significant fugitive named Jorge Puello. Wanted by the and lack basic necessities," said a statement to according and accidental, ruled was media attention. Haitian officials, including governments of El Salvador and the United released by four of the missionaries. the by told was she husband, Bishop’s Prime Minister Jean-Marx Bellerive, have Whether the missionaries will have to Bureau of Alcohol, Tobacco, and Firearms called the kidnappings a “distraction” that States for human trafficking and the smuggling of illegal immigrants, he volunteered return to Haiti for further questioning that she was no longer a suspect in the took away from the relief efforts. to act as the legal adviser for the group. remains uncertain. attempted bombing. Testimony from parents of 21 of the “The two cases are completely sepachildren revealed that they had voluntarily given their children to the missionaries. rate," Judge Saint-Vil stated, "but we obviContact Padmavathy at Hearing this, Judge Bernard Saint-Vil ously need to make sure that Ms. Silsby and Mr. Puello didn't know each other [from] padmavathy.sonti@student.shu.edu signed an order to release eight of the ten
Eight Missionaries Accused of Kidnapping Released
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TUESDAY, FEBRUARY 23, 2010
Domestic News
THE STILLMAN EXCHANGE
Stimulus Bill Still Obama Announces New U.S. Drawing Fire a Year Later Nuclear Reactors to be Built By Rachel Ressler, Domestic News Editor and Lauren Beauvais, Domestic News Writer
ulus bill. Rep. Mike Pence (R-IN), stated that “not one net job has been created.” Most critics, though, have agreed that the unemployment and job loss rates would have been far worse without the stimulus bill. Mark Zandi, who once advised Sen. John McCain (R-AZ), and the St. Louis Post-Dispatch both agree with this assessment, with Zandi pointing out that without the stimulus bill, unemployment numbers
Despite renewed attacks from Republicans, President Obama and his administration have continued to stand by the $787 billion stimulus bill set into motion one year ago. During his speech on Feb. 17, President Obama took the time to enunciate the reasons he still believes in last year’s stimulus bill, touting the bill as having saved the U.S. from a second Great Depression. In the same speech, he also called out Republican leaders who opposed the stimulus bill last -Mark Zandi, co-founder and chief economist of year, but have been Moody’sEconomy.com active in calling for and using funds provided by the bill for their probably would have been around 5 million districts. by now. The Post –Dispatch also pointed out The Republican National Committee that the bill has been successful in providing and party leaders have started waging a funding for food stamps, unemployment, heated campaign as mid-term election sea- and health care at the state level, and has son begins. The RNC posted a web video provided over $30 billion to infrastructure titled “Broken Promises” and Rep. John A projects, as well as almost $120 billion in Boehner (R-OH), has released a report on tax relief. The Obama administration has the “So-called ‘stimulus’”. In his report, estimated that almost 95 percent of Rep. Boehner provides a list of projects Americans saw tax cuts this year as a result regarded as “pork” in last year’s bill. In of the stimulus bill. addition, other party leaders like Michael The administration continues to stand Steele, Chairman of the RNC, joined Rep. behind their stimulus package, as experts Boehner in pointing out that with unemploy- have indicated that in the next year, even ment at almost 10 percent, almost 3 million more money should be going toward infrajobs lost, and a $1.6 trillion deficit, the structure and construction projects, since economy is hardly improving. there are still almost $200 billion that has Although Obama admits that there are been earmarked for such projects and has still many Americans without jobs, he says not yet been spent. unemployment numbers would have been In addition, in the next few years, the much greater had he not passed the stimulus bill is projected to add or save American Recovery and Investment Act. about another 2.5 million jobs. Most independent economists, including the Though funding is expected to drop Congressional Budget Office, suggest that sharply at the end of 2010, more visible the bill has created or saved between effects of the stimulus efforts are projected 900,000 and 2.3 million jobs. to occur in the coming years. In recent weeks, the Obama administration has added $267 billion to its proposed Contact Rachel at budget specifically for job creation. In rachel.ressler@student.shu.edu Congress, there is much debate that enough and Lauren at jobs have not come out of the original stimlauren.beauvais@student.shu.edu
“The economy has shed some three million jobs over the past year, but it would have lost closer to five million without stimulus”
By Liam Brereton, Domestic News Writer
rower’s debt, to the Southern Company to build twin reactors in Burke County, Georgia. The money for these loan guarantees comes from a 2005 act that provides for $18.5 billion. Obama hopes to triple that sum. According to the corporate website “Southern Company (NYSE: SO) is an investor-owned public company.” It is concerned with alternate energy sources and operates power plants in Alabama, Mississippi, Florida and Georgia. Those plants have the capacity to produce 42,000 megawatts of power and provide for 4.8 percent of the U.S. market. In addition to the scheduled plant, Southern Co. already operates three nuclear plants in Alabama and Georgia. When completed, the plant is expected to create 800 jobs. During construction, 3,500 workers will be needed. Southern Company won the first issued loan guarantee for nuclear energy.
On Tuesday, Feb. 16, President Obama announced plans to allocate government funding to help build new nuclear power plants in Georgia. These power plants will be the first to be built in America in 30 years. In an address given at an International Brotherhood of Electrical Workers jobtraining facility in Lanham, MD., the President discussed the current status of energy in the U.S. He listed several strategies which could reduce both environmental impact and dependency on foreign oil. Among those mentioned were an increase in fuel-economy standards and the exploration of alternate energy sources. Nuclear energy has become of greater importance in Obama’s alternative energy plan, because nuclear power is dependable and carbon free. President Obama acknowledged the potential controversy of his plan: Photo courtesy of the NY Times "There will be those who welcome this announcement, and those who strongly disagree with it." Critics of Obama’s plan have suggest that new technology like wind turbines would be a better use for federal money. Senate Republican leader Mitch McConnell said through a spokesman that the plan “won’t cause Republicans to support the national energy tax.” On the other hand, a representative of Alaskan Republican Lisa Murkowski said that nuclear power constitutes “a core component of a President Obama announces two new nuclear power plants to be built in Georgia in the next comprehensive energy plan.” decade. This clash of opinions causes Obama to warn, "Investing in nuclear energy remains a necessary step, and what I Among its contenders were companies such hope is that this announcement underscores as Scana Corporation, Constellation Energy both our seriousness in meeting the energy Group Inc., and NRG Energy Inc. Those challenge—and our willingness to look at companies and others are expected to subthis challenge not as a partisan issue, but as mit plans in order to win funding for a matter far more important than politics." nuclear power plants around the country. As an incentive, Obama has authorized $8.3 billion in loan guarantees, an arrangeContact Liam at ment that assures the borrower that the govliam.brereton@student.shu.edu ernment will pay a percentage of the bor-
Pilot Program May Let Tenth Graders Receive a Diploma By Morgan Tornetta, Domestic News Writer A program will begin next year in high schools in seven states that could allow students to earn their high school diplomas as early as tenth grade. These eight states, Connecticut, Kentucky, Maine, New Hampshire, New Mexico, Pennsylvania, Rhode Island and Vermont, have already pledged to sign up ten to 20 schools each for the intensive coursework, which will begin in the fall of 2011. It will require participating students to take rigorous classes, leading up to a battery of tests, called board exams, during their sophomore year. If the students pass the tests, which will cover not only math and English, as the SATs do, but also science and history, they will be allowed to immediately enroll in a community college. Students who pass the exams and wish to attend more selective colleges are encouraged to continue their college preparatory work during their junior and senior years. Those who fail can take them again at the end of 11th and 12th grades. The program was initiated and organized by the National Center on Education
and the Economy, a Washington, D.C. non- needs improvement without putting their profit organization pushing for higher aca- future in jeopardy. demic standards. Their goals include teachA $1.5 million planning grant from the ing students a basic set of requirements and Bill and Melinda Gates Foundation will reducing the number of students taking help the NCEE work with the participating remedial classes their first years of college. states and districts to prepare the schools for Estimates from mid-2009 say as many as the program, said Marc S. Tucker, president one million students require remedial class- of the center. Starting costs for the program es. They also hope to reduce the number of students who drop out of college before even getting a degree. The project’s backers say the need for community college to offer remedial classes would Photo courtesy of US News decrease because Students would take a standardized test in order to deterimine their the board exams’ level of preparedness for college. standards will be set at the necessary level to pass first-year are estimated at $500 a student, the costs of college courses. They hope that the curricu- which will be offset by $350 million in fedlum will make it clearer than previously for eral stimulus dollars for which the eight students to decide where to concentrate states will apply. their academic efforts. Failing the board The project’s backers and supporters, exams would tell students where their work which include the National Association of
Manufacturers and the National Education Association, hope that the program will first spread to other schools in these eight states, then to other states. The program bears a resemblance to other early college movements, which have students taking college-level courses while they are still in high school, earning college credits through neighboring institutions. Such programs include Advanced Placement, the International Baccalaureate Diploma, and the International General Certificate of Secondary Education. This performance-based system is a departure from the traditional system that allows students to graduate based on the number of credits they have earned. It was one of a number of reforms suggested by a bipartisan committee of national education policy experts four years ago. Other suggestions included state control over school finances and starting most children in school as young as three. The program was modeled after the exam systems of high-performing countries such as England, Denmark, Singapore, Finland, France and Singapore. Contact Morgan at morgan.tornetta@student.shu.edu
THE STILLMAN EXCHANGE
TUESDAY, FEBRUARY 23, 2010
International News
Renewal of Peacekeeping Forces in Chad By Raphael Baseman, International News Writer
15
Concern Over Iran’s Uranium Enrichment
the humanitarian operation.” LeRoy has stated that a plan to only keep civilian peacekeepers is “not an ...continued from page 1 option…we cannot keep the civilians without the miliThe P-5+1 group, which consists of the United States, Great On Wednesday, February 17, the UN Security tary to protect them.” Britain, France, Russia, China and Germany, has led on-going Council expressed support for further talks negotiations with the Iranian government to come to some resolubetween the UN and Chad in order to ensure the tion and allow Iran to pursue a peaceful, civilian nuclear program. continued presence of the UN’s MINURCAT misIran has sought nuclear power capabilities for domestic use sion. since the 1970s. In fact, the United States supported a nuclear Iran In January, officials of the Chadian governuntil the Iranian Revolution of 1979 and the ensuing Hostage ment asked the UN not to extend the UN Mission Crisis. Additionally, the international community, legally and in the Central African Republic and Chad (known covertly, continued to support a domestic nuclear program at by its French acronym, MINURCAT), who’s conplants, such as the Bushehr, until the early 1990’s. tract is up for renewal in March 2010. A high level report issued by the United States intelligence On Wednesday, Chad’s Ambassador to the community, compiled in November 2007, speculates that Iran UN, Ahmad Allam-mi, said his country wishes for halted its nuclear weapons program due to international pressure. the UN mission to be reduced or ended, possibly Recently, the United Nations passed three rounds of resolutions leaving a thousand civilian staff. He told reporters, targeting Iranian officials and assets to curtail any attempt to "We want the civilian component to remain, but develop nuclear weapons. The resolutions target the enrichment were told they are a package. The military and of uranium, the import and export of Iranian weapons technology civilian component go together. And that's what and individuals that are known to be key components of Iran’s we're discussing currently, to find out if there is an nuclear program. interim solution.” The P5+1 members are currently grappling with new proposAllam-mi said that both improved security als to pressure Iran into compliance of its Nuclear Nonconditions within Chad and better relations with Proliferation obligations signed in 1968 and the Additional Sudan had contributed to Chad’s conclusion that Photo courtesy of VOA News Protocol signed in 2003. The United States is the most vocal proMINURCAT was no longer needed. He said, A United Nations Peackeeper interacts with children while on duty at ponent for stronger, more targeted sanctions that would expand "Given the changed context ... Chad is able to Refugee Camp in Eastern Chad. the list of individuals, notably those in the Iranian Revolutionary guarantee security in the east of Chad in order to Guard Corps. Great Britain and France have pushed for further take over from MINURCAT's military component and At this time, MINURCAT is responsible for ensurmediation, supported also by Germany, to return Iran to its that is why we are calling for its withdrawal." ing security in the northeast of Chad, and is authorized to October 2003 agreement to have uranium enriched abroad. China The UN Ambassador from France read the Security have up to 5,500 troops in the country. UN spokesman has remained typically tight-lipped over a renewed round of sancCouncil’s statement expressing “full support” for the UN Martin Nesirky said last week that about 70 percent of tions as analyst’s sight possible concerns over their petroleum force, and encouraging “further consultations (with the force’s full strength has been deployed. The UN misimports should new sanctions become enforced. Chad) on the way forward.” He also advocated for the sion also operates in the neighboring Central African The nuclear issue is the most visible aspect of a perceived continuance of the UN mission to Ndjamena to pursue Republic, and is tasked with providing safety and aid to further talks under Alain LeRoy, the head of UN peacekeeping operations who is also a French national. LeRoy and Robert Holmes, the UN humanitarian chief, both said that withdrawing the UN force would hurt the civilian populations. “We want MINURCAT to stay and we want it to stay with its full complement," Holmes told reporters. "We think they're very important for the safety and security of the people in the camps, the civilians in general and for
displaced refugees from the Darfur region of the Sudan, as well as humanitarian convoys. Final decisions on MINURCAT’s peacekeeping operations in Chad are awaited with great anticipation as they have a great affect on the stability of other surrounding conflict zones. Contact Raphael at raphael.baseman@student.shu.edu
Another Military Coup in Niger: Finally A Chance for Democracy? By Maggie Dougherty, International News Writer On Thursday, February 18, an assault in the presidential palace in Niamey, Niger resulted in the removal of the President Mamadou Tandja. Troops stormed the presidential palace during a cabinet meeting and announced they were suspending the constitution and dissolving all state institutions. President Tandja was whisked away as a hostage. The junta coup leaders have not divulged the precise location of Tandja but is said to be “safe and well” in a military camp. To print date only 10 deaths have been reported making this a fairly bloodless transition of power. For the people of Niger life goes on as normal, businesses are open and children are going to school. Tandja has been president of Niger since his election in 1999. On August 7, 2009, Tandja held a controversial referendum to abolish limits on presidential terms of office. According to the Election Commission the referendum passed with an overwhelming 92 percent of the vote. Following this referendum, Tandja’s popularity steadily dwindled as his policies became more autocratic in nature. The military junta that overthrew the president calls themselves “the Supreme Council of Restoration of Democracy.” The coup leaders promise to bring “democracy and good governance” to Niger and to save its citizens from “poverty, deception and corruption.” Niger suffers from chronic poverty with 61 percent of its 14 million people living on less than a dollar a day. The international community has condemned the coup. The European Union asked all those involved to “engage immediately in a democratic process allowing for rapid establishment of constitutional order,” while the chairmen of the African Union Commission, Jean
Photo courtsey of CBC News Iranian President Ahmadinejad receives a tutorial on Iran’s laser science technology
Ping, said there should be “zero tolerance” of those taking power by force. Also, the AU has suspended Niger and called for its citizens to be allowed to elect the leader they want. On Friday, the leader of the junta, Salou Djibo, spoke at a news conference stating, “For the moment we are at a starting point, and we will create a consultative body.” To print date, no actions have been made to hold democratic elections. Citizens of Niger are taking action holding rallies in support of the coup. On Saturday, thousands of people took to the streets of Niamey carrying signs in support of democracy and the overthrow of Tandja. “We say thank you to the junta for their intervention” an opposition spokesman, Bazoum Mohamed told the rally. “We are for the restoration of democracy and we are committed to joining the army in this mission.” The question now remains if this coup is beneficial for Niger. Some analysts claim that the overthrow of Tandja could create the opportunity to hold the elections that were postponed by his unpopular constitutional reforms. Sebastion Spio-Garbrah, an Africa analyst for Eurasia Group, claim, “The junta will likely defer to international and domestic pressure for a return to democracy, and organize elections in the medium term.” Until the Supreme Council of Restoration of Democracy makes more definitive move, the future of Niger is unclear. Currently, the people are rejoicing in the liberation from Tandja and looking forward to the return of democratic elections. With a history of military coups, Nigerien citizens are hopeful that this coup will bring peace and stability.
shift toward a more militant Iran. The Iranian Revolutionary Guard Corps was created in the aftermath of the Iranian Revolution to “safeguard the revolution,” from foreign influence and domestic subversion. Analysts have noted a rise in power of the Revolutionary Guard as both a paramilitary power and political organization. Iranian officials are increasingly promoted from the ranks of the Corps, most notably Iran’s current president. Guardsmen control banks, businesses, contracting firms and are key individuals in the drive for nuclear power. The Revolutionary Guard has been cited by US officials, such as Clinton, as subverting the political make-up of the country and pushing it toward a military dictatorship. Analysts question the overall impact of the Revolutionary Guard on the mindset of the population, but their role in suppressing anti-government protests in June clearly demonstrates their continued conviction to “safeguarding the revolution.” Recent political under-currents show the Iranian political landscape is not as stable as Iranian officials proclaim. Revolutionary Guard actions continue to ensure a conservative view of the “Islamic revolution” remains strong. The history of Iran and the conflicting social make-up of Iranian society make it difficult to predict the future. Iranian nuclear ambitions can either derail efforts at promoting global nuclear non-proliferation and world peace, or bolster the claims of weaker countries that peaceful nuclear power is an inalienable right. Moderation and continued diligence are the touchstones of the diplomatic process. It can only be hoped that the international community continues to seek answers to the Iranian question that has drawn so much world attention: does Iran seek nuclear weapons and how will such a militant stance effect world peace?
Contact Maggie at margaret.dougherty@student.shu.edu
Contact Jake at jacob.holl@student.shu.edu
16
TUESDAY, FEBRUARY 23, 2010
THE STILLMAN EXCHANGE
International Business
Eurozone Members Forced to Wrestle with Greek Financial Struggles By Ben Canning, International Business Writer
week, the members of the EU quickly began talking about a bailout for Greece and the need for coordinated action. The recent debt crisis in Greece has The Euro, created in 1999, was an forced the team of 16 European Union attempt to bring the countries of Europe to countries, which all use the Euro, to take on a united stance. Eleven years later, it has higher responsibility as they try to regain seen the worst predicament since its crethe value of their currency and prevent ation and is now threatening the EU. themselves from falling into deeper crisis. Although details for a plan have yet to be As the troubles in Greece led the Euro released, the EU understands that it needs to fall even lower against the dollar last to take uniform action. Simon Tilford, chief economist at the Center for European Reform in London told the New York Times, “Now is the time when Europe needs to speak as one voice. The crisis should lead to political unity, but it could just as easily lead to a divided Europe.” Political leaders in Greece have understood the importance to step up in this situation and are set to launch a new bond offering in the next few days. If the offerPhoto courtesy of EPA ing is successful, it could help diminish Frustrated Greek citizens take to the streets the anxiety of the weak bond markets
across Europe. If the bond fails, the EU might be required to initiate a bailout for Greece but it would come at a high cost. First and foremost however, Greece has one month to demonstrate that it can cut its deficit from 12.7 percent of the country’s economic output to 8.7 percent. In the past five years, the government of Greece carelessly increased public payrolls, which evidently kept the unemployment rate at a minimum but also pushed Athens into borrowing large sums of money to pay for high wages and pension costs. This spending crisis has not only weakened the Euro to value at $1.37, but has also placed sizable pressure on the financial members of the 16 eurozone countries to ensure that it can maintain its economic strength. Contact Ben at benjamin.canning@student.shu.edu
Russia Looks to Avoid Past Controversies with Direct Gas Transportation to EU By Alex Cohen, International Business Editor The way Europe gets its natural gas is about to see a major shakeup as a deal between Russia, Germany, and the Scandinavian countries will allow for a new pipeline that flows under the Baltic Sea. The plan will also allow this crucial process to bypass many of the geopolitical snares that have threatened the EU’s gas supply in recent years. The initiative, known as Nord Stream, is led by Russia’s stateowned oil giant Gazprom, with support from German energy firms E.ON Ruhrgas AG and Wintershall AG. Holland’s Nederlandse Gasunie NV also owns a stake. The pipeline had previously been held up by Finland’s hesitation to participate, but with the Regional Administrative Agency for Southern Finland giving the green light last week, the project was finally ready to be launched after previous agreements from Denmark, Sweden and Germany. Technologically, the new system, which will begin operation in the fall of 2011, will use 760 miles of pipeline to travel from Siberia to the EU by going under the Baltic Sea, rather than over land. This change is especially significant because it removes countries like Ukraine and Poland from the equation. Last winter, a controversy between Russia and Ukraine emerged over disagreements
regarding transit fees and the logistics of gas transportation. Observers also speculated that Russia’s unwillingness to acquiesce to Ukrainian demands stemmed from its frustration with its neighbor’s closer ties to the EU and NATO. Regardless of the reasons, the disagreement resulted in dwindling gas supplies across Western Europe, and a loss of revenue for Russia in its economy’s most important sector. The new pipeline gives the EU states the advantage of a less fragile means of obtaining oil, while Russia will not have to negotiate with its traditional neighborhood rival. There are still a number of issues present, however, in this often contentious process. Firstly, former Soviet states like Poland and Ukraine fear that they are now even more likely to have Russia threatening them with shutting off the flow of gas, as it would not negatively impact Russia’s business in Western Europe. Secondly, environmentalists are apprehensive because they predict the construction of the pipeline will stir up toxins in the already-polluted Baltic Sea. Finally, local fishermen will see their trade disrupted, although Nord Stream spokesman Mika Seppala said his company will reimburse those affected. He added that the company will adopt a “close monitoring system” to comply with each country’s procedural demands. Contact Alex at alexander.cohen@student.shu.edu
Lufthansa Could Be Grounded by Pilots’ Strike By Rachel Rosenstrock, International Business Wrtier Lufthansa pilots voted on February 17 to strike over a four day period following the breakdown of negotiations regarding job security and the increase of salaries. It is expected that $142 million will be lost for both Lufthansa and Lufthansa Cargo due to their proposed brief halt in operations. Negotiations deteriorated in December after a seven month period when an agreement for a 6.4 percent pay increase fell through. At the center of the pilots’ concerns lies the shifting of jobs to subsidiary branches. During the past two years, Lufthansa has begun to rely increasingly on utilizing the lesser-paid foreign counterparts. This walk-out by pilots will be the first in over nine years for the German airline carrier. With a majority vote of 94 percent from the pilots belonging to the labor union Vereinigung Cockpit, this strike will mean damaging losses for the already struggling company.
Executive board member Stefan Lauer told reporters that the strike would be “disproportionate” and unduly harmful to the company. Lufthansa’s savings target of $1.38 billion would be severely compromised following a four day strike. In addition, Lufthansa’s sales in 2009 had fallen 13 Photo courtesy of Getty Images percent while continuing to It is not yet certain how many of recover from the economic Lufthansa’s 2,000 daily flights will be affected downturn. Lufthansa is preparing for massive small as possible.” Lufthansa officials are, at this time, delays and cancelations. Company spokeswoman Claudia Lange said it is not yet pos- investigating the legality of the strike, but sible to say how many of Lufthansa’s 2,000 they hope to settle on a deal before the pilots commence their strike planned for daily flights will be affected. Passengers will be able to rebook February 22. Both parties have expressed flights without paying a penalty as well as interest in furthering negotiations. receive full refunds if their flights are canceled or they choose not to fly during the Contact Rachel at strike. These measures coincide with rachel.rosenstrock@student.shu.edu Lufthansa’s pledge “to do everything to keep the impact on customers and guests as
Online Music Sales Seen as Last Refuge for UK’s Indie Record Labels By Tristan Hugo-Webb, International Business Writer In an endeavor to save small retail music stores across the United Kingdom, the Entertainment Retailers Association (ERA) has created an online music database of the remaining independent record stores in order to help save the struggling industry. The independent record stores, more commonly known as indie stores, have been one of the hardest hit sectors of the economy as the vast majority of music sales have gone digital. In 2009 alone, 98 percent of the roughly 150 million singles sold were online. The direct result of this online transformation has been disastrous for indie stores: in the past five years over half of indie stores closed, leaving less than 300 stores compared to 744 in 2004. While the website IndieRecordShop.org, launched by the ERA, is not designed to compete with the larger music retailers by offering online music downloads, it is set to offer unique features like indie store locators, stock inventories and planned events within the indie store community. “What we're hoping to do is support those that are still in the market,” says Kim Bayley, director general of the ERA. “It's hard to tell whether it's going to stem the tide, but I think, to be honest, we've seen most of the fallout in the sector and the stores which are left are probably the best of the best.” The online music movement has not only hit the small local stores but the larger music chains as well, which were once thought to be immune. According to the British Phonographic Industry (BPI), which monitors the British music industry, in 2008 there were 7,753 record stores across the United Kingdom, including music giants like Zavvis, Woolworths and Borders. However, since 2008, over a thousand of the big chain music stores have closed down, including 115 Zavvis, 807 Woolworths and 60 Borders stores. In order to compete with online vendors, some British retailers like HMV have undergone vast renovations to become more profitable. During the 2007 fiscal year, HMV entered a three-year “transformation plan” which was designed to address falling sales of CD’s and the growth of illegal downloading. As part of the project, HMV bought a 50 percent stake in the online music retailer 7digital, bought venue owner MAMA Group, in order to increase HMVs presence in live entertainment and created a revolutionary three screen cinema in Wimbledon. All these renovations within the industry are aimed at making the once lucrative music sector profitable once again. Contact Tristan at tristan.hugowebb@student.shu.edu