Volume 7 Issue 6 - November 16, 2010

Stillman News

Ethics

Stillman Students Experience Life in the Fast Lane See p. 6

Should employees be fired for controversial private posts on Facebook?

See p. 8

International Business An appreciating yen may be spelling Game Over for Nintendo as an industry force.

See p. 16

The Stillman Exchange

www.StillmanExchange.com

The Official Business Publication of Seton Hall University

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

TUESDAY, NOVEMBER 16, 2010 - VOL. 7 NO. 6

Oil Giants Invest in Alternative Energy Production

By Brian Daniels, Money & Investing Writer Chevron Corporation (NYSE:CVX), the second-largest U.S. oil company, became the latest energy company to pursue alternative natural gas solutions as it announced an agreement to purchase the Moon Township, Pennsylvania based Atlas Energy for $3.2 billion in cash and stocks this past Tuesday. An additional $1.1 billion was used to cover Atlas’ outstanding debt, bringing the total acquisition cost up to $4.3 billion.

Atlas Energy owns 486,000 net acres of the natural gas-rich Marcellus Shale formation that extends from Pennsylvania into many other Eastern states, including Ohio, West Virginia, and New York.

According to the U.S. Energy Department, it is the largest known U.S. gas field. The deal also provides Chevron with ownership of 623,000 acres in Utica Shale in New York for a total purchase of 1.2 million acres.

Chevron also gets Atlas’ 49 percent share in Laurel Mountain Midstream, and thus more than 1,000 miles of gathering and transportation lines that serve the shale.

The deal comes eleven months after Exxon Mobil Corp., the largest U.S. oil company and Chevron’s main rival, paid $34.9 billion for XTO Energy. XTO energy

By Robert Szeluga, Sports Business Writer

is also known for its expertise in extracting gas from shale deposits. Numerous other companies such as BP and Shell have also purchased U.S. shale assets. In fact, Bloomberg data cites 253 U.S. oil and gas acquisitions announced this year.

Chevron has actually been the target of criticism as of late for not being more aggressive in their pursuit of alternative gas sources. To put things in perspective, even this investment equates to about one-tenth the size of the XTO deal, despite being

Chevron’s largest acquisition since 2005. So why have big oil companies – specifically Chevron – waited so long to purchase these formations and companies?

Companies like Atlas are only now gaining expertise in production, which involves drilling horizontally for thousands of feet, then fracturing the shale-rock formations with injections of water, sand and chemicals.

Continued on page 4...

Midterm Elections Yield Rise in Republicans

By Amanda Genabith, Domestic News Writer Roughly two weeks ago, the nation saw one of the biggest political changes it has ever seen. Republicans captured 60 seats in the House and 6 seats in the Senate, disrupting the Democratic majority in both.

In 1994 and 1946, the Republican Party saw huge shifts in their favor. Yet, they do not compare to this election.

As many of the newly elected Republicans stated, although it is a historic moment, they need to get started. Likely

candidate for the House Majority Speaker, John Boehner (R-OH) told the crowd “We’re humbled by the trust that the American people have placed in us. Our job is to listen to the American people and follow the will of the American people.”

Boehner went on to say, “We hope President Obama will now respect the will of the people, change course and commit to making changes that they are demanding.

To the extent he is willing to do that, we’re ready to work with him.”

According to an article in The Wall Street Journal, “President Obama, [on the

other hand] took responsibility for the ‘shellacking’ Democrats took Tuesday and promised to negotiate on issues from tax-cut extensions to energy.”

So what is next for the government?

Until January, many will be either moving in or out of Capitol Hill. After that they will start getting down to business and trying to do what they promised on the campaign trails.

Continued on page 14...

Stillman Alumni See Entrepeneurial Success

By Meg Reilly, Assistant Managing Editor Imagine spending years dedicated to studying finance and, as graduation rolls around the corner, the economy crashes and

INDEX Money & Investing.............. 2 Stillman News...................... 6 Ethics ................................... 8 Editorials ............................. 9 Sports................................... 10 Domestic News..................... 13 International News.............. 15 International Business........ 16 Front cover image courtesy of keystoneedge.com

UMass Amherst Receives McCormack’s Archives

takes your dreams with it. Unfortunately, this is an all too familiar tale for recent graduates, but two Seton Hall alumni took the bull by the horns and created success for themselves in a time of despair.

Doing their absolute best to make use of resources available to them, Jamie Sawicki and Bryan Jakovcic—2009 Stillman School Graduates—created Uvisor, a premiere job searching website in which your dream job finds you.

When beginning to navigate through the discouraging job market to find some hope after graduation, Jamie and Bryan realized that something was severely lacking. Not only could new graduates be lost in the overwhelming listings of mediocre jobs, but newly unemployed Americans, who have not applied for a job in decades, were just as hopeless.

As a result, Jamie and Bryan began to pull resources together to create the job search website we have all been waiting for.

The co-founders of Uvisor spoke candidly

of all the fantastic support that Seton Hall faculty members provided. Jamie stated that Seton Hall was, “and incubator, so to speak, of like-minded people.” He also urged current students to “use the resources available and consider them to be part of the package of college.”

Armed with their entrepreneurial spirits, Jamie and Bryan took on the daunting task of starting their new business. And due to their exceptional efforts and passion to succeed, Uvisor was able to publicly launch at this fall’s DEMO conference.

Just premiering at DEMO alone shows promise for Seton Hall’s entrepreneurs.

DEMO is considered to be the launch pad for emerging technologies, with industry leaders such as TiVo and Adobe debuting there.

Continued on page 6...

The boxes were sealed and ready to be delivered. The destination of Mark McCormack’s legacy was to be moved to the 24th floor of the main campus library at The University of Massachusetts.

One could only wonder how any man could have possibly accumulated so much valuable material. But if one were to know McCormack, they would not be as surprised.

Mark McCormack was the founder of IMG, a global sports and media business that has achieved global success throughout the years. He is considered the father of sports marketing and regarded as one of the most recognizable figures in sports business.

It all started with a handshake between McCormack and Arnold Palmer in 1960 that laid the foundation for IMG. Since then, the company has represented the most prominent athletes of their times and currently represents clients such as Peyton Manning, Shaun White, and Tiger Woods.

McCormack left IMG in 2003, just 18 months before his death. The company was then sold to Forstmann Little, a private equity firm, in 2004. His wife, as well as his three grown children, all work for the company.

McCormack left behind 35,000 to 45,000 boxes worth of archives and memorabilia that had previously resided in a warehouse in Cleveland. Duplicates of these documents will be terminated, leaving roughly 10,000 boxes of documents in the possession of UMass.

The university also plans to digitize all of the documents to make them accessible to people outside of the university.

The entire process is estimated to take three years, but UMass has planned to reveal the first parts of this process within the next three months.

When the McCormack family decided to change ownership of the possessions, they immediately turned towards college campuses. The family considered six schools, four of which were visited, but ultimately chose UMass for its respected Sport Management program as well as its ability to house the archives.

Along with the documents, the university will receive $1.5 million from the McCormack family which will be put towards a study abroad program for sport marketing students. In appreciation, UMass renamed its department of Sport Management after McCormack.

Contact Robert at robert.szeluga@student.shu.edu

2

TUESDAY, NOVEMBER 16, 2010

Money & Investing This Week’s Poll Question: Do you plan to go shopping on Black Friday?

A: Yes, during the day B: Yes, as soon as stores open C: I prefer shopping online D: No Respond at www. stillmanexchange.com

Last Week’s Poll Question: Will you be looking for a seasonal job this holiday season?

Yes: 39% No: 23% I will apply and see what happens: 11% I am already employed: 27%

Sector Summary Courtesy of Google Finance

NEWS BRIEFS

Earnings Stock to Watch: Target Corporation Graph courtesy of Yahoo! Finance

• The chairman of the Senate Finance Committee has unveiled a plan to repeal a tax reporting provision that passed with the health care overhaul and is widely opposed by business.

• Fresh off big victories on Election Day, Republicans in Congress feel empowered in their fight to extend tax cuts that expire in January, including those for the wealthy.

• New York's latest attempt to tax lucrative Native American smoke shop sales to non-Indian customers has generated mountains of legal briefs, hours of argument and a seemingly constant flurry of court decisions.

• Regulators on Friday shut down two banks in Georgia and one in Arizona, bringing to 146 the number of U.S. banks that have succumbed this year under the burden of bad loans and a tepid economy.

World Currencies Courtesy of Google Finance

THE STILLMAN EXCHANGE

Companies Preparing For Black Friday Deals

By Stephanie Gonzalez, Money & Investing Writer It is November, so naturally the United States is planning for Christmas.

Black Friday, November 26, 2010, is the national holiday for Christmas shopping and this year, the competition is heated.

Sears (NASDAQ: SHLD) is apparently opening on Thanksgiving Day, and WalMart (NYSE:WMT) is offering free shipping. Not only that, Black Friday is being extended, it “is not only being marketed as ‘Black Friday week,’ but for a growing number of stores, ‘Black Friday month.’”

Some stores like Kohl’s (NYSE:KSS) present shopping options that do not require you leaving your house.

The online shopping deals are being kicked up a notch on Thanksgiving Day. What a way to celebrate with family by buying them completely discounted, yet highly known brand presents.

The 2010 Black Friday seems to be a promising day when taking the leaked Target (NYSE:TGT) Black Friday advertisements into consideration. Apparently an internet website by the name of Gottadeal.com got hold of Target’s Black Friday Deals and posted them weeks earlier than the original release date of November 24.

The deals have been rumored to be as low as $3 for appliances that includes brands like Chefmate. These deals are shown to be less than last year’s prices.

For example, “In 2009, Target sold a TomTom GPS system for $97. This Black Friday, a TomTom will only set you back $79.” The suggested retail price for the product is $189. The deals do not stop there. If you are looking for flat screens, Target is the place to go.

Do not be too excited though because none of these prices have yet been confirmed. Black Friday deals are the backbone of this year’s Christmas. Because of the recession, budgets are tight and people are eagerly awaiting Christmas time sales to buy presents for their loved ones at prices that they love.

Target is really “targeting” people who are looking to keep up with Christmas traditions, but who are not willing to burn holes in their wallets. Maybe this is because of the recession, but the premature availability of these advertisements screams that Target wants to draw attention to increase sales Shoppers, here is a few words of advice. Be warned of these early advertisements that are simply looking to reach out and grab your attention weeks in advanced.

This is simply an attention grabber drawing in interest and excitement with low costs associated with big names. Do not forget about Thanksgiving despite this new hype for Christmas shopping. Last but not least, keep an eye out for amazing deals because this Black Friday looks promising. You can have a merry holiday season without running through your cash.

Contact Steph at stephanie.gonzalez2@student.shu.edu

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

Money & Investing

THE STILLMAN EXCHANGE

TUESDAY, NOVEMBER 16, 2010

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General Motors Reports Strong Third Quarter Stefano D’Urso, Money & Investing Writer General Motors released its third quarter earnings this past week, and the numbers were eye-popping. GM reported $2 billion in earnings on revenue of $34.1 billion according to the financial report.

These latest signs of positive growth for General Motors have put them ahead of carmaker giant Toyota, as well as American cornerstone Ford Motor Company, which reported third quarter earnings of $1.7 billion.

A large part of GM’s profit reflects lower operating costs and reduced sales incentives in its U.S. operations, which had posted steep losses totaling $88 billion in the run-up to its 2009 bankruptcy funded by the Obama administration.

Under Chapter 11 bankruptcy protec-

tion, General Motors received $50 billion in federal aid that has left taxpayers with a 60.8 percent stake in the company.

GM said it expected to post solid earnings for 2010, the company’s first year of profitability since 2004. Increased cash earnings in North America for a third consecutive quarter boded well for GM, with its international results only slightly improving and a loss in Europe. General Motors acknowledged they have work to do internationally, as Chief Executive Dan Akerson said, “We still need to fix Europe. We continue to be vigilant in reducing cost in the enterprise, and we have just started doing a better job in marketing our brands to consumers.”

Akerson replaced Ed Whitacre as CEO on September 1 and will add the role of chairman to his resume by the New Year.

Akerson has changed the culture of General

Motors, and expects the automaker to continue its successful climb atop the leaders in its industry.

New vehicle sales for models such as the Chevrolet Equinox and GMC Terrain aided the North American figures. The report also showed an increase in truck production that supported the results since trucks such as the Chevy Silverado carry higher profit margins than smaller vehicles.

GM is expected to build more vehicles in the fourth quarter with the introduction of the Chevrolet Cruze compact, a new model that is designed to compete with the likes of the Honda Civic and Toyota Corolla.

General Motors has been extremely busy in its attempts to complete an initial public offering of stock set for this week.

GM executives have started an investor road show to support the IPO plans. The pitch to investors aims to sell a company

that has sliced costs in North America, has a foundational plan to make Europe profitable and retains more exposure than any other automaker to the developing and rapid-growing auto markets in Brazil, China, Russia, and India.

The U.S. Treasury is expected to sell about one third of its 61 percent equity stake in GM at a loss. The government is hoping the stock’s value rises enough in the future to allow taxpayers to break even on the total investment when it sells the rest.

General Motors appears to be headed in the right track to not only recover its losses and pay back its debtors but to regain control of the automobile industry. Poised with new management, GM now has the leadership and management to do so.

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

Americans Cut $1 Trillion in Debt Since 2008

By Matthew Magi, Money & Investing Writer According to a recent regional Federal Reserve report, Americans have cut nearly $1 trillion in debt since 2008.

Economists think that this repayment of debt is a step in the right direction for the economy in the long term.

“If consumers can continue to repair their balance sheets, that bodes well for the sanity of the economy in the long term,” said economist John Canally of LPL Financial.

By paying off credit card bills, Americans are helping the global economy recover from a recession. As of September 30, consumer debt in the U.S. was $11.6 trillion, this is $922 billion less than its peak

in the third quarter of 2008.

Some of the decrease in debt stemmed from the writing off of debt by banks, which simply eliminated bad debt without repayment. These write-offs are caused by defaulted loans and debts that cannot be paid, which hurt the banks’ financial positions. The more promising debt reduction came from changes in spending habits by consumers.

Lending institutions have made it more difficult for people to take out loans due to all the defaults in recent years, which have kept the amount of new debt low. People have also been paying down their existing debts and saving more.

In addition, the number of open credit card accounts in the U.S. fell by 24 percent since 2008 which further suggests that con-

sumers are trying to eliminate unnecessary debt by paying with the money they have rather than borrow money to purchase goods.

The combined effect is a 7.4 percent decrease in consumer debt and a promising economic outlook for consumers. The economy as a whole is also seeing improvements since the number of foreclosures decreased by 5.5 percent and bankruptcies fell 16 percent from last quarter.

All of these facts and numbers show that Americans have adapted to the harsh economic environment and are ready for a recovery. Less borrowing and more payment have decreased consumer debt but they have also made a major dent in consumer cash-flows, or the amount of cash consumers have at their disposal.

Paying down debts is estimated to have cost consumers $150 billion in 2009, and the lack of borrowing eliminated about $300 billion in spending. This took $450 billion out of the pockets of Americans, which may slow down consumption.

Although the cuts in spending cash and payment of debts have been painful in the short term, economists believe that it is helping the long term forecast of the economy.

Some of the main causes of the current economic crisis were bad and excessive debt, so the elimination of excessive loans is definitely a step in the right direction.

Contact Matthew at matthew.magi@student.shu.edu

Polo Ralph Lauren Continues to Outperform Competition

By Scott Giveans, Money & Investing Writer Riding high and scoring every quarter, Polo Ralph Lauren (NYSE:RL) continues to outperform the competition.

After posting better-than-expected earnings, the company’s stock has hit its highest price ever.

On Wednesday, Polo Ralph Lauren posted an 11 percent revenue growth and 19 percent increase in earnings per share relative to the same quarter last year, causing the stock to reach its all-time high price of $109.28 during intraday trading.

After having been beaten down by the market to the tune of a 5-year low of $32.54 this past July, Polo Ralph Lauren has seen its stock surge over 40 percent in a matter of 5 months.

The company initially had expected

sales to be just short of $1.49 billion.

However, to the delight of Polo stockholders, these expectations proved to be conservative as the company recorded $1.53 billion in sales.

In addition, net income rose by 16 percent to $205.2 million relative to the previous quarter of $177.5 million.

Maintaining this optimism, Polo Ralph Lauren raised its forecast of its fiscal 2011 sales from a 5 to 10 percent increase to a double digit increase. Also expected to rise is third Quarter revenue to the tune of an increase in excess of 15 percent.

Polo has set the bar high having rallied nearly 45 percent in a matter of 5 months.

Polo is certainly hitting on all cylinders and seems poised to continue its upward climb considering it is entering the most profitable time for retailers: the holiday season.

Although the holiday shopping season

has seen declines in the previous three years, Polo, along with other retailers, are again hopeful that consumers will increase their spending habits.

According to a survey conducted by BDO USA, retailers, on average, have purchased an additional 2.8 percent of inventory goods for the upcoming shopping period.

Fortunately for Polo, there is an increasing trend of consumers to higher-priced discretionary goods.

Garnering a higher price point through stores such as Macy’s (NYSE:M) and Saks Fifth Avenue (NYSE:SKS), Polo is an ideal position to take advantage of consumers who are tired of “cutting back” during the last two holiday seasons as a result of the recession, and want to buy themselves or family members premium products.

“Consumers are looking for price, but some are expanding to more indulgent pur-

chases,” says Doug Hart, a partner at BDO USA. “A lot of retailers were laser-focused on price and reducing their assortment [in the last two years]. We are seeing a reversal of that trend.”

Despite the continued troubles of the economic market and jobless rate, people seemed poised to treat themselves this holiday and therefore retailers will likely experience the holiday shopping season they have been waiting for the last several years.

As a result Polo is in an ideal position to continue to its upward trend into the last quarter of this year. The true test will be if the company can sustain itself beyond and maintain its position ahead of the rest of the market.

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

Playboy Reports Further Losses, Possible Buyout

By Scott Watson, Money & Investing Writer On Tuesday, Playboy Enterprises, Inc. reported that they suffered further losses within the company’s television and publishing divisions.

This continued the trend experienced last year where Playboy reported a loss of $1.1 million, compared to $27.4 million this quarter. However, the firm saw growth in revenue from the licensing of its famous bunny logo.

Recently, Playboy signed a licensing agreement with IMG Licensing Worldwide.

This would make IMG the exclusive agent of Playboy in Europe.

Playboy made the move in order to reduce its costs, as well as market their products worldwide. A licensing agreement paid off in China where IMG was able to

get Playboy a deal with a Chinese company that will pay the firm $50 million over the next five years.

To furPlayboy’s bunny logo is a ther market valuable trademark. their brand abroad, the firm will open two new clubs in Macao and Cancun later this month. Both of these locations are popular with college students on spring break, and will likely turn out to be profitable investments.

Also, Playboy plans on reopening one of its clubs in London, which had been closed for more than 20 years. According to company executives, Playboy’s main magazine was able to recover from previous lossPhoto courtesy of Playboy

es and break even for the third quarter.

The recent cause of magazine decline was due to the increasing competitiveness in print media, as well as a decrease in advertising revenue. To counter these disappointing statistics, the company plans on increasing advertisements in their magazines by 7 percent.

Playboy’s entertainment group saw revenue decline by 20 percent. Although there is increased competition from other television networks, Playboy insists that this will not be a consistent trend.

Furthermore, the group that includes the magazine and digital extensions, revenue declined 5 percent to under $22 million.

The Board of Directors is presently reviewing an offer by the founder of the company, Hugh Heffner, to buy all outstanding shares for $5.50. The current price of the stock is about $5.

This offer would value the company at about $185 million. Although this seems like a good offer, once the news became public and the price was revealed, FriendFinder Networks Inc. came in with a counter-offer to buy the company.

FriendFinder owns rival products to Playboy such as Penthouse magazine. The firm offered to buy the company for $210 million, a significant increase over Heffner’s original offer.

As a result, Hugh Heffner stated that he was not interested in selling the company just yet. Heffner owns 70 percent of the company’s voting shares and is the final voice in decision making.

Still, FriendFinder’s Chief Executive said that he hopes that they could come to some sort of deal.

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

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Money & Investing

TUESDAY, NOVEMBER 16, 2010

Electric Cars Recieve Tax Break

BJ’s Prepares to Sell Company

By Alex Buonfiglio, Money & Investing Writer BJ’s Wholesale Club, Inc, one of the most popular consumer hotspots, is reportedly preparing to be sold.

The Natick Massachusetts based company, and number 296 on Forbes’ top 500 public companies, is making news as reports indicate that they may put themselves up for sale. Shares of the company jumped, as reports of a possible acquisition were released.

According to the Boston Globe, the corporation has hired a New York investment bank, Morgan Stanley, to conduct an auction of BJ’s (NYSE: BJ).

Bloomberg News reported that BJ’s management received an undisclosed offer to buy their company.

The persons reportedly interested in purchasing BJ’s are a private equity firm Leonard Green & Partners, which has a portfolio of other brand name retail chains.

The news of an offer was not confirmed, as BJ’s declined to comment.

The firm reportedly interested, is a firm with no shortage of capital to invest.

Leonard Green & Partners, which has approximately $9 billion in assets under management, has investments in retailers such as Whole Foods Market Inc, Petco Animal Supplies, and Equinox Fitness club.

Despite these facts, Green did not confirm the offer. Bloomberg News reported that Leonard took a 9.5 percent stake in BJ’s in July, showing that Green’s firm does have a continual interest in BJ’s operations and success.

BJ’s cash more than doubled to $85

million in the second quarter ending July 31, and its long-term debt shrank by threefourths, making it attractive for a takeover, according to Joe Feldman, an analyst at Telsey Advisory Group in New York.

Reports suggest that any deal for BJ’s would most likely be with private equity funds, not with another retailer. “Month to month, BJ’s has been underperforming,” Feldman said. “It seems like a good candidate for a going-private transaction.” Any acquisition of the firm would require a leveraged buyout.

Retail analysts say the Natick-based chain is an attractive target because of the stability of its membership income, which accounts for roughly 80 percent of its operating income, strong cash flow, cash-rich balance sheet, and BJ’s ownership of 34 percent of its stores.

Rumors regarding a possible acquisition of BJ’s has been talked about for years; it has consistently trailed its rivals Sam’s Club, owned by Wal-Mart Stores, Inc. and Costco Wholesale Corp.

(NASDAQ:COST).

With stock of the company currently rising, and shares jumping, this may be a good time for BJ’s to sell.

If sold, shareholders will likely be paid a premium over the market price of the company’s stock.

No matter what, BJ’s will continue to operate, even if ownership changes since BJ’s has a strong consumer base that is a staple in American Society.

Contact Alex at alex.buonfiglio@student.shu.edu

THE STILLMAN EXCHANGE

By Vincent Lovasco, Money & Investing Writer Federal and state governments have passed tax breaks on electric cars aiding consumers in the United States in order to help the environment.

The Federal government is providing a $7,500 tax credit to buyers of plug-in cars.

Other states also offer additional tax credits such as California, which offers a $5,000 credit. State and the Federal governments are working together in order to entice consumers with various benefits in order to promote the shift from foreign oil towards zero emissions cars.

Electric car drivers in California receive the tax break in addition to the ability to drive in highway carpool lanes.

However, the government warns that buyers should do their research before purchasing a new electric because not all makes and models qualify for the state and federal tax breaks.

For instance, the 2011 Chevrolet Volt does not qualify because it is not considered a zero emissions vehicle. California, Colorado, Hawaii, and Georgia are some of the first states to pass additional tax breaks on electric vehicles, so staying informed about your state and local government’s electric car tax breaks could prove beneficial.

The Colorado state government offers up to a $6,000 tax break plus a credit of up to 20 percent on an electric vehicle charger.

Hawaii offers $5,000 on qualifying vehicles and a 10 percent credit on chargers, as well as carpool lane access. Georgia also offers a 10 percent tax credit on chargers

and a $5,000 tax break on vehicles purchases.

State governments are offering various degrees of assistance with the purchasing of electric cars and chargers, but many states do indeed offer some sort of aid.

This new legislature is being praised by many electric car advocacy groups because they believe this is a step in the right direction.

These tax breaks benefit both sides of the aisle, which value the preservation of the environment, as well as reducing the dependence on foreign fuel sources. Car companies are benefiting from both, because research has shown that many consumers refuse to purchase an electric car if they have to incur an additional expense to their own wallet.

Mark Perry, the director of product planning at Nissan North America, said, “Survey after survey says I’m willing to drive sustainably but I'm not willing to pay one penny more,” meaning the tax breaks will help the electric car zealots’ bank accounts, but will hopefully attract consumers on the fence about parking a shiny new electric vehicle in their garage.

These new tax breaks are hopefully the first of many more to come. It will be interesting to see how the government continues to attempt to distance itself from the U.S.’s dependence on foreign oil and closer towards environmental protection policies.

Contact Vincent at vincent.lovasco@student.shu.edu

Oil Giants Invest in Alternative Energy Production ...Continued from page 1 Companies like Atlas are only now gaining expertise in production, which involves drilling horizontally for thousands of feet, then fracturing the shale-rock formations with injections of water, sand and chemicals.

For example, in Atlas’ press release the company reported that daily output for the third quarter rose 18 percent from a year earlier to the equivalent of 118.3 million cubic feet.

Relatively low production costs and the close proximity of these formations to large population centers in the Northeast make these investments especially compelling.

In addition, the big oil companies simply bought these firms when natural gas prices were low Oil companies such as Chevron are expanding into alternative energy markets, suggesting that this is best time and have bet that prices will rise as to purchase Atlast. Previously, Exxon Mobile Corp. bought XTO Energy which also focuses on natural gas.

economic recovery boosts demand for additional sources of energy.

Specifically, Chevron may have purchased Atlas now because the company believes oil prices have bottomed out. This is risky, because some experts believe the price of oil will continue to be very low for years to come.

In addition, The U.S. Environmental Protection Agency is still studying the effects hydraulic fracturing may have on water supplies and the environment.

Tuesday’s announcement comes after Chevron recently made shale-gas deals in Poland, Romania and Canada; more acquisitions and partnerships are expected in the near future.

The company is also developing enormous gas fields off the coast of Australia in order to prepare for expected growth.

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

New Disclosure Rules for Money Market Funds May Scare Investors, Hurt Fund Providers

By John Ceniza, Money & Investing Writer Starting this month, the Securities and Exchange Commission will require money funds to disclose even small shortfalls that result in money funds trying to cover their tracks in order to avoid angry clients.

According to Peter Crane, president of the money-fund research firm, Crane Data LLC, “the reforms may usher in an era of micro-bailouts.”

This November, the SEC will implement new rules that require money funds to

unveil a figure known as a “shadow NAV.” This figure is a net asset value that reflects a small unrealized and realized gains or losses.

Two of the biggest fund companies, Fidelity Investments and Vanguard Group Inc., expressed opposition to the change saying that it could confuse investors.

Two money market fund providers, Charles Schwab Corp. and T. Rowe Price Group are already spending millions in order to eliminate losses from unsuccessful securities back in 2008. Charles Schwab Corp. spent $132 million last quarter and T.

Rowe Price Group said they will spend $17 million this quarter.

What the firms want is to avoid startling clients after the 2008 failure of the $62.5 billion Reserve Primary Fund affected money funds.

Reserve Primary’s net asset value had fallen to 97 cents per share, which is a big cause of concern for most investors.

Money market funds try to maintain a $1 net asset value, some investors worry when a fund dips below $0.9985.

With the SEC requiring money funds to report every little change to NAV, the figure

will likely fluctuate from $1 quite often.

Fund companies think that this may scare and confuse investors who may withdrawal their investments.

Peter Rizzio, senior director of fund services at S&P said that some companies are being forced to inject money into funds in order to downplay the risk of panic by customers. “It boils down to their feelings over whether shareholders understand what the shadow NAV means,” Rizzo said.

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

THE STILLMAN EXCHANGE

Money & Investing

TUESDAY, NOVEMBER 16, 2010

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Corporations Hoarding Cash, Preparing to Expand Business

By Ian Duncan, Money & Investing Writer U.S. corporations are amassing billions of dollars through low interest bonds, potentially underscoring the ability of the government to stimulate the economy.

Cash rich corporations are now in a powerful position to begin aggressive operations when they are prepared to spend. In the meantime, this limits the ability of the Federal Reserve to stimulate the economy as it emerges from the recession.

As recently as September, Microsoft (NYSE:MSFT) added $4.75 billion through ultra-low interest corporate bonds.

Microsoft, as well as major companies like PepsiCo (NYSE:PEP), Hertz (NYSE:HTZ), and I.B.M. (NYSE:IBM) have been hoarding large sums of money.

The official interest rate has, for two years, been near zero.

This has allowed corporations to offer bonds at rates just above this, often below 1 percent. There is a huge opportunity for corporations to amass “cheap money”.

Amassing money is a strategic choice for corporations for several reasons. In Microsoft’s case, issuing bonds helps avoid the large taxes charged from bringing money to the United States from abroad.

Richard Lane, an analyst for Moody’s

(NYSE:MCO), examining Microsoft, commented that “borrowing new money on the debt markets is now cheaper than bringing [the company’s] own money back from overseas.”

By issuing debt, companies are also able to buy back shares. Mergers and acquisitions of other companies can also be financed. DuPont (NYSE: DFT) made a recent statement that it was using the “cheaper money” to lock in borrowing for the long term.

The official company statement read, “The current low interest rate environment provides DuPont a great opportunity to refinance our long-term debt at lower rates.”

For some companies, borrowing is so advantageous that they will not have to repay their debt for a century. 100-year bonds are being issued by many corporations. Norfolk Southern Corporation (NYSE: NFC), a railroad, borrowed $250 million at an annual interest rate of 5.95 percent. These bonds will not mature until 2110.

According to The New York Times, corporations are sitting “atop a combined $1.6 trillion of cash, a figure equal to slightly more than 6 percent of their total assets.”

The huge amounts of cash put these companies in a unique position. “The nation’s corporations will be strong, well

Photo courtesy of www.ibtimes.com

U.S. corporations amassing cash are interfering with monetary policy, and the efforts by Federal Reserve Chairman, Ben Bernanke, to stimulate the suffering economy.

capitalized and ready to act aggressively when executives finally decide it is time to expand their businesses.”

The large scale amassing of money by corporation may be coming to an end. Since the middle of 2008, the ration of cash holdings to assets has risen sharply quarter to quarter. For the first time, this ration fell slightly.

This indicates that the increases in cash

holdings will begin to slow or stop. Within a few months, this money could begin to be spent, stimulating the U.S. economy with new growth and investments.

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

Oil Prices Reach Highest Level in Two Years

By Doug DeMarco, Money & Investing Writer After a period of stability, the price of oil has risen to $90 per barrel. The last time oil prices hit this level was October 2008.

The cause of the rise has been connected to an increase in demand for oil, while the supply of oil has been limited.

The world’s demand for oil has increased a large amount despite efforts to curb the consumption of the fossil fuel. The world’s demand for oil has grown to 85.78 barrels per day, up 1.6 percent from 2009.

Others believe that the price of oil is increasing due to the weakness of the dollar.

In a report from Merrill Lynch (NYSE: MER), oil prices can continue to rise if the

Federal Reserve agrees to an asset-purchasing program of $500 billion or more.

This will lead to a weaker U.S. dollar, which would leave more room for oil prices to continue to rise. As the gap between the value of the U.S. dollar diminishes relative to the value of other currencies, the price of products and resources, such as oil will rise.

Merrill Lynch projected the price of a barrel of oil to rise to over $100 in 2011.

Only until the supply of oil increases or the dollar becomes stronger will the price begin to decrease.

There are several repercussions due to the rise in the price of oil. Winter is right around the corner, and many homes are heated with oil. The price per gallon of home heating oil will increase, causing a

strain on consumers in the cold weather.

Another effect that the price of oil has on consumers is gasoline prices.

The price per gallon of gasoline will increase, which could derail many travel plans for the holidays.

People will feel the pain at the pump similar to the pain they felt a few years ago when the price per gallon of gasoline hit an astonishing four dollars.

The rise in the price of oil will have a large effect on the economy. The United States has seen glimpses of hope in economic recovery, with consumers beginning to spend and invest their money.

Companies have seen gains and are starting to look into creating jobs and expanding.

For example, the auto industry has

made a huge comeback and is seeing profits after a long period of struggles. The increase in the price of oil however may slow down this progress.

The world depends too much on oil to not feel the effects of an increase in its price. From moving supplies across the globe to the ways products are created, oil plays a large part in the U.S. economy.

With oil becoming a limited resource, the prices of products affected will also increase in a similar manner.

Contact Doug at doug.demarco@student.shu.edu

Proposal Made to Reduce Federal Deficit and Overhaul Tax Code

By Dhara Patel, Money and Investing Writer On Wednesday, November 10, the leaders of a White House commission submitted a plan that would trim $3.8 trillion from projected deficits, over the next decade, by overhauling the tax code to boost federal revenue and by making cuts to military spending, farm deficits, foreign aid, Medicare and Social Security.

This plan is much needed as the federal government needs to alleviate its debt almost immediately.

Last Wednesday, the treasury department released a statement saying that last month’s deficit total was $140.4 billion.

This is now the third consecutive year that the country will bestow a total deficit of $1 trillion.

Two of the leaders of the plan, Erskine Bowles, the panel chairman, as well as the co-chairman, former Wyoming Senator, Alan Simpson are all for the proposal.

The plan calls for large reductions in domestic and military spending, a gradual 15-cents-a-gallon increase in the federal gasoline tax, limiting or eliminating popular tax breaks in return for lower rates, and an increased retirement age for Social Security.

Moreover, the plan lays out options for overhauling the tax code that include limiting or eliminating the mortgage interest deduction, the child tax credit and the

Photo courtesy of www.washingtontimes.com

Plan chairman, Eskrine Bowles (left), and plan co-chairman, former Wyoming Senator, Alan Simpson (right), discuss the various cuts and reductions that the plan will implement.

earned income tax credit.

It also hopes to cut many Pentagon weapon programs and other domestic programs. These changes and others are intended to begin in 2012.

This proposal would reduce projected Social Security benefits for most retirees in later decades, as the retirement age for full benefits would be slowly increased from 67 to 69 by 2075, with a “hardship exemption” for people who physically cannot work past

62.

The federal tax on gasoline, now 18.4 cents a gallon, would increase by 15 cents between 2013 and 2015, so that revenue from the tax and similar user fees could cover all transportation and highway spending programs, and the funds set up for that purpose would no longer require money from the general treasury.

In addition, the proposal would repeal or modify a number of popular tax breaks,

including the deductibility of mortgage interest payments, so that income tax rates could be reduced across the board.

Under the plan, individual income tax rates would decline to as low as 8 percent on the lowest income bracket (now 10 percent) and to 23 percent on the highest bracket (now 35 percent). The corporate tax rate, now 35 percent, would also be reduced, to as low as 26 percent.

“This proposal represents a challenge to both President Obama and the Democrats, to show in the wake of the midterm election that they are serious about their pledges to address long-term deficits, and to Republicans, who for the most part have ruled out consideration of tax increases even as they have promised new adherence to fiscal responsibility,” states Jackie Calmes, a writer for The New York Times.

The commission has until December 1 to submit a final plan of this draft, which they are still negotiating.

President Obama created the commission, with the panel consisting of 12 members of Congress and six private citizens, last February. However, in order to send any package to Congress for a vote 14 of the 18 commissioners must agree.

Contact Dhara at dhara.patel@student.shu.edu

6

TUESDAY, NOVEMBER 16, 2010

THE STILLMAN EXCHANGE

Stillman News

Stillman Students Experience Life in the Fast Lane

By Jessi Lichtenberger, Stillman News Guest Writer

Photo courtesy of Jessi Lichtenberger

W. Paul Stillman School of Business students recently had the opportunity to earn two credits for whipping around a test track in a brand new Camaro at 120 miles per hour at the Consumer Reports auto testing facility. On Friday October 29, Dr. Richard Stern took a class of undergraduate students to the Colchester, CT branch of the Consumer Union for a day of learning about the non-profit organization’s mission to inform and empower consumers when purchasing vehicles and after-market products.

Consumer Reports is a product of the Consumer Union.

Founded in 1936, the Consumer Union is a nonprofit organization that acts as independent experts to inform and empower consumers to protect and educate themselves in the marketplace. The auto testing facility purchases all vehicles and after-market products anonymously to ensure they are testing the same quality vehicle that an ordinary consumer would be driving. The organization operates solely on revenue from subscriptions to its many publications and accepts no outside advertising or endorsements in order to remain completely unbiased in its consumer product testing.

After students became acclimated to the seats of a charter bus on a four hour drive to the facility, the group put on their helmets and strapped into the seats of a 2010 Mazda3.

Suddenly, they found themselves skidding through a swerve test to show the effects of using the Electronic Stability Controls of the new vehicle. The disparity between test runs with and without the stability controls could be judged by the piercing sound of tires screeching as the vehicles lacking ESC barreled into cone after cone; safer alternatives

The Dodge RAM truck traversing Rock Hill to test its off-road capabilities.

than using your neighborhood paperboy or an oncoming tractor trailer.

Next, it was on to Rock Hill, where students rode as passengers in a Dodge RAM and a Lexus GX460 to show just what off-road vehicles are capable of doing. The hill lived up to its name. Students turned to bobble-heads as the rocky terrain pushed each vehicle’s shocks to their limit.

After a quick lunch, students spent the majority of the remaining time speeding around the test track. The group reached speeds of 120 mph on the straightaway and 60 mph around the tight, winding curves in a brand new Ford Mustang GT, Chevrolet Camaro and Infiniti G37.

Unfortunately, the cars then had to be put away, and it was off to the Tire Testing garage, which houses thousands of pairs of over 300 varieties of tires. With a brief science lesson, students learned about the process for testing and

maintaining hydrogen-filled tires. They also got a sneakpeak of the results for which tire pressure test consumers should actually follow.

The result: if you insert a penny head-first into a tire, and the tread touches the top of Abraham Lincoln’s head, it’s time to start shopping for the best tire replacement. If you perform the same test with a nickel, and the tread touches the top of Thomas Jefferson’s head, it’s time to go out and buy your new tires.

Students on this two credit trip not only had fun playing with 5,000 lb toys, they also learned about the types of work Consumer Union does, the benefits to consumers, how it is funded, and the various publications and products available to consumers.

This course is open to all undergraduate students and is offered most years. Dr. Stern often takes students to the Consumer Union’s Yonkers, NY headquarters to give a more broad aspect of consumer product testing as a whole.

Due to the positive feedback from this year’s trip, Dr. Stern says he will highly consider bringing students back to the test track next year as well.

Most classes involve students sitting around, listening to a lecture taking place at the front of the classroom. This group of students had the chance to feel the wind blowing past their faces as they sped along a high-speed test track.

The opportunity to do that while earning two credits is an occasion that no student should passs up.

Contact Jessi at jessica.lichtenberger@student.shu.edu

It All Starts With A Pirate’s Pitch

By Ryan Garrity, Stillman News Editor Facebook. Dell. Napster. Apple. What do these four companies and their products have in common? It’s simple: they were all created by college students who had an idea, and followed through with that idea to see it blossom into something that captivated a nation. The Stillman School of Business and the Center for Entrepreneurial Studies hope to find the student with that next big business idea through the school’s first ever venture fund competition, titled “Pirate’s Pitch”.

Pirate’s Pitch encourages student teams to draw up an idea for a business, or, if a student has already started a business, then an idea to expand that fledgling business.

According to Professor Susan Scherreik, founding director of Entrepreneurial Studies, this is “one of the best ways to learn about business and increase the entrepreneurial spirit in our school.

Competitions like this are extremely

popular at many other universities, so it seemed like the natural next step to bring a contest to Seton Hall.” At the annual Entrepreneurship Hall of Fame dinner, money was raised to fund the initial competition, and the Center was able to create an endowment that will fund this contest every year.

Student teams for the competition can range in size from one to five members, and at least one member of the team must be an undergraduate or graduate matriculated student who is enrolled full-time or part-time at Seton Hall.

Teams will apply by going to www.shu.edu/go/pirates-pitch and filling out the Intent to Compete application before January 25, 2011. The application will include a list of team members, as well as a short summary of the original business idea.

The five best student teams will be selected by a panel of outside judges and will advance on to round two of the competition. In this stage, teams will need to write a 10 to 15 page long business plan, which

will serve as the road map to how the great idea is going to turn into a profit-making venture. The plan will discuss such areas as the company and its services, the industry, competition and the management team itself.

The good news, Scherreik said, is that teams won’t have to worry about going it alone throughout this process. “We’re going to hold informational workshops, walking students through every step of the process” she said. “Every team in the finals will also be assigned a mentor, and teams will be judged by alumni, entrepreneurs, and venture capitalists, so the opportunity to learn is around every corner with Pirate’s Pitch.”

The event will come to an end on Sunday, May 1, with what is being called Pirates Pitch Day. On this day, the five finalists will pitch their ideas in a 10 minute oral presentation to the panel of judges.

After the presentation, the judges will have 10 minutes of their own to ask each team questions. After deliberation, the judges will then select the top two winning teams.

The winning team will receive $3,500, plus legal, marketing and other business services, to launch and grow its business.

The runner-up team will receive $1,500, plus business services. There is also a chance for those who did not make it to Round two to win money—on Pirates Pitch day, the audience will vote on the most popular business idea, with the winner receiving $500.

Scherreik knows that this is one opportunity that students shouldn’t pass up. “This contest will allow students to meet others who share their entrepreneurial passions, and they will be able to apply this experience to their lives,” she stated.

“Entrepreneurs come from all walks of life, and anyone who has a good idea should go for it. Everyone has the skill set to compete.”

Contact Ryan at ryan.garrity@student.shu.edu

Bloomberg Day Educates Students on Professional Software

By Rory Manning, Stillman News Writer Bloomberg is a name that many are familiar with.

Whether it is due to the fact that you read Business Week, you are a business major, you had to enter the trading room to finish that Financial Accounting Project, or you have randomly come across Bloomberg Network flipping through the channels, Bloomberg is a mega-corporation that affects many people every day. So when the Stillman School held Bloomberg Day, it is not surprising that many students attended.

With three sessions offered in two sections, there was something available for everyone. The three sessions that were offered were: Broad Bloomberg Overview where students learned how to actually use the Bloomberg terminal interface; Company Evaluations which taught students how to use the terminals to generate information on specific

companies and then how to interpret the analysis, and finally the last session was Global View on Mergers & Acquisitions in which students learned how to use the Bloomberg Terminals to generate data on all mergers and acquisition activities in specific industries, date ranges, or even by value. Each session was moderated by Mike Landau, a trainer from Bloomberg.

Bloomberg is a tool that is invaluable in today’s business world, and with these sessions, “students have the tools to understand how investments are actually made.” said Landau. By learning to use the machines now, students are “comfortable with the platform.

When asked about the event, Glen Shaw, a sophomore Finance and ITM major said that “it’s really good that someone is teaching the student population how to use this resource. It’s an invaluable tool and students should learn how to use it.”

Landau also stated that “Finance degrees are all theo-

retical. [Having access to the] trading room is the best way to experience a [real] trading environment. Being comfortable with the different environments and being able to set up simulated portfolios will allow students to relate better to the jobs that they will be applying to and the people who are interviewing them.” With all of this praise, it is no wonder that this event is the first of its kind that Landau has been too.

With access to resources like the trading room, there is little wonder why the Stillman School is so well known with companies in the New York Metropolitan Area. By providing two terminals for students to use, the Stillman School is preparing students to reach further and educating them for success for when they leave Seton Hall.

Contact Rory at rory.manning@student.shu.edu

THE STILLMAN EXCHANGE

Stillman News

TUESDAY, NOVEMBER 16, 2010

7

Students Explore Prospective Careers In Business

By Beverly Makarios, Stillman News Assistant Editor One question that lingers in students’ minds in determining their future careers starts out with the words: “What can I do with…?” For many undergraduate students, choosing a concentration can be tough. The Exploring Careers in Business event aimed to answer this question, as well as give students the opportunity to explore the options for someone with a business degree.

Presented by the Career Center, several students gathered in the Chancellor’s Suite in the University Center on Thursday, November 4 to have sit-down discussions with professionals representing different fields in business.

Exploring Careers in Business called for students to examine careers, community, and calling. This was also an opportunity for students to speed-network with professionals and asks in-depth questions about their careers.

The event invited students of all majors to learn from alumni working in Accounting, Finance, Management, Marketing, and the Sport Management fields.

Representing the Finance field was Joe Higgins.

Joe is a Seton Hall alumnus who has been a Financial Advisor for over 27 years and is currently working for UBS Financial Services as Vice President of Investments.

Joe believes he can effectively advise clients based on his actual experience going through many market cycles.

Giving back to the community is also very important to him. He has served in leadership positions on several boards of charities and community organizations.

One student posed a question to Higgins asking him what is the most rewarding aspect of his career. For Higgins, the most rewarding part is seeing the clients that he advises succeed.

When asked what advice he could give to students exploring a career in business, Higgins replied, “try out some internships and find something to make your resume

different.” This can include travelling, charity or even taking up a hobby. “Broaden your horizons,” said Higgins.

Meghan Gerrity was present to speak to students interested in a career in the Marketing field. Upon receiving her Bachelors from Seton Hall, Gerrity began working at a hospital before transitioning into advertising. After receiving an MBA from Pace University, she began work at DRAFTFCB Healthcare as an Interactive Project Manager.

Gerrity currently works with the interactive adverting agency O’Grady Meyers as an Account Manager for the Gerber consumer and professional online business.

She stressed the issue that finding one’s calling for their future career is undoubtedly tough but “once you have your basic skills, you can go anywhere.”

She fielded some questions from students, such as how public relations is related to marketing. According to Gerrity, “PR is the fun arm. There are numerous travel opportunities but pay isn’t as well.” Marketing or advertising on the other hand, does not offer as much exposure, but it offers great pay.

One interesting fact about Gerrity that students got the chance to learn is that she independently owns her own vintage online clothing store. Being able to do this has given Gerrity “an outlet from work life.”

Bob Franco was present to talk about careers in the Management field. Franco is the Assistant Director of the Seton Hall Career Center. His background career varies from a Senior Human Resources Generalist to having corporate experience with a number of companies.

He possesses keen business intuition as well as expertise in leading people, organizations, and change and strategy. At the Career Center, Franco works with Finance, Management, Economics and International Business undergraduate and graduate students and alumni as a career professional.

Franco addressed the burning question of what is out there in the Management field. According to Franco,

there are two sides to Management that students can explore: the customer orientated side and running the business.

The customer orientated side deals with day-today operations, customer service, and building sales. On the other hand, running a business includes staff functions, accounting, human resources and public relations, just to name a few.

“Management is really not complicated. It is just about which side you draw near to,” said Franco.

Representing the Sport Management and Marketing fields was Will Carafello, Marketing Manager at the Prudential Center. Will graduated from Seton Hall in 2003 with a Bachelors of Science in Business Administration and a concentration in Sport Management.

Carafello started off with the Newark Bears and continued on his career path with Madison Square Garden, The Harlem Globetrotters, Meadowlands Sports Complex, and finally the Prudential Center, where he has been for a little over three years now.

Carafello was the inspiration that students interested in this field needed to see, so that they could learn just how far a degree in Sports Management can take them.

Thanks to all the different speakers who came to the event, students were able to take away great advice and information that would make their choice on a career path even clearer.

The Career Center presented the Exploring Careers in Business program, in addition to many other events, as part of the November Career Development Month. Be sure to check out what other events are happening this month on the Career Center website.

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

NYSSA SEMI Scholarship Presents New Opportunities

By Nyala Eddings, Stillman News Writer Succeeding in a career within the fixed income industry can be tricky. Many times, students will want the opportunity to receive advice on a successful career. The Finance Club did just that in early November, welcoming fixed income professional Thomas Mathews to speak on his position, the New York Society of Security Analysis’s SEMI program, and what the keys to success in fixed income are. Mathews earned his MBA at Seton Hall University, and went on to establish his career as a successful fixed income professional. Mathews is the founder of the NYSSA’s SEMI program. Students that attended this event not only walked away with valuable advice, but also with information on a prestigious scholarship.

In 1996, NYSSA established the Heloise S. Ham Education Scholarship, and launched its SEMI Program in 1997. The SEMI acronym stands for Scholarship, Education, Mentoring and Internship. The objective of the program is to provide undergraduate college students who are pursuing degrees in Finance or other related studies with a greater exposure to the finance and investment fields.

Students are provided with a mentor and attend presentations that cover various industry-specific topics. Students also have access to the extensive contacts and resources of the NYSSA. After briefly describing what he does as a fixed income professional, Mathews opened his inspirational speech by introducing what he called the “four S’s”—

social, self, skills and setting. He told students that these four major points are the keys to success—not just for a job in the fixed income world, but for all professions.

Mathews defined “social” as always being courteous and respectable to everyone you encounter, because the people you meet on your journey to success may be the same people that you will call upon for help in the near future. Mathews then connected the ability to differentiate oneself from others to the “self” aspect. As individuals, we

The NYSSA’s SEMI program provides students with the opportunity to learn aout the securities profession.

all have to sell what makes us different from everyone else.

If there was one “s” that Mathews really emphasized, it was “skills.” He went in depth about the significance of processing all the information that one come across. Whether it is life knowledge or education from books, a person must educate themselves in all areas in order to be successful. “As a leader, a person will never stop learning,” Mathews stated.

Mathews defined setting, the final aspect of these keys to success, as the environment in which a person sur-

rounds oneself—the people, the work environment and the community. According to Mathews, a person should take in their surroundings by being receptive to what they experience.

Mathews closed out his speech by restating that the recipe for greatness is founded upon a person’s “four S’s”—their social, self, skill set and setting. After providing his insight to the fixed income world, Mathews informed students of the SEMI program, encouraging students of all majors to look into this opportunity, because he believes that every person who goes after it will benefit. Before students left the workshop, Mathews made sure to leave them with one last piece of advice, in the form of his favorite quote: “Never let the fear of striking out get in the way of playing the game.”

The SEMI Program is a summer program open to undergraduate students who are enrolled full-time in a college or university in the greater New York area. Applicants must have completed at least their sophomore year by the time the program begins in the summer, pursuing a major in finance or related studies, demonstrate academic excellence, and have an interest in the securities profession.

Students can visit www.nyssa.org/semi to apply. The application deadline is November 21.

Contact Nyala at nyala.eddings@student.shu.edu

Stillman Alumni See Entrepreneurial Success ...Continued from page 1 Not only did Uvisor receive the great honor of launching before the top in the technology industry, but PC magazine ranked the site number 4 in the top 12 technologies premiered at DEMO 2010.

So what makes Uvisor so great? Uvisor is a website in which you are your own career advisor. The website guides you through a five step process in order to find the jobs that fit you.

First, Define Yourself: simple things about you such as your name, address, education, skills, hobbies, work experience, certification, photo upload, social media presence, and references. Second, Assist U: personal and unique

questions determine your top 25 characteristics based upon self assessment. Third, U go!: calculates dollar and cents relocation information to compare the cost of living in select cities to your current location. Fourth, ResUme: automatically builds multiple, custom resumes in different formats using the information you already entered. Finally, Get Hired: provides extensive information on all companies in the database including revenue, competitors, notable products, and employee count.

All of these features help determine the right jobs for you. Bryan spoke highly of the new technology such that “the system gets smarter as more people join it. You build relationships and the data collected tweaks the algorithm.” The algorithms and technology utilized provides

jobs that not only match your education, but also those that match your skills and experience. This is exactly why Bryan and Jamie created this website.

The duo both graduated with degrees in finance, but they had a drive to go beyond the limits of their concentration. When asked about his experience as a young entrepreneur, Jamie said, “there are things I would have never seen myself doing. When I look back at what I was doing and what I’m doing today, it has opened up so many opportunities and I don’t have to do one thing anymore.”

Contact Meg at, margaret.reilly@student.shu.edu

8

TUESDAY, NOVEMBER 16, 2010

THE STILLMAN EXCHANGE

Ethics

Did Collahasset, MA, school teacher Dr. June Talvitie-Stiple deserved to be fired for her private posts on Facebook?

After thirty years as an educator in Collahasset, MAssachusets schools, Dr. Stiple lost her job for a post on social networking site Facebook that called Collahasset parents “arrogant and snobby.” In response to this, Dr. Stiple stated, “I got frustrated one day, and I thought I was just sharing with my friends. That was stupid because I have a lot of technology background. I should have checked so it was a stupid mistake. I’m human.”

By Joan Orejuela, Political Science Major

Facebook: Our Private Space Dr. June Talvitie-Siple has a right to privacy, whether on the internet via her Facebook account or the possessions in her own home; what she also has is a privilege against self-incrimination that provides protection of personal information as provided by the Fifth Amendment.

The issue in regards to the resignation of Dr. Siple from her job as a supervisor of Cohasset High School’s Math and Science program then is not what Dr. Siple posted on her Facebook or the Facebook privacy settings that allowed for public view, but why the intense demands of Cohasset parents were able to cause Dr. Siple to lose her job and why anyone would spread such information.

The technologically driven society we live in today allows us to communicate with one another in what has dwindled down to merely seconds. The information on Dr. Siple’s Facebook page, as experienced by many others, can be public knowledge in minutes and apparently cause fury in just one day.

On her Facebook page, Dr. Siple was as she puts it, “blowing off steam with friends in private,” something we all have done more than once. The fact that she mistakenly set her privacy settings so that all users could see her postings should not be penalized with employment termination. For one, the information on Facebook pages, even if not meticulously protected, need not reach the public unless users allow it to. In the case of Dr. Siple, the malice of those who accessed her account and shared her postings with other townspeople must be taken

By Gabriella Petrillo, History Major

The Dangerous Liaison Millions of people worldwide use the social networking site, Facebook, created as a means of communication to connect close friends, loved ones, acquaintances, and old buddies. Many people speak well of the site’s objective: to make it easier to connect all of these different people. The objective is also the main problem. The fact is that it is so easy to connect to all of these people. Due to its user-friendly controls, one’s Facebook page can be socially, and mentally problematic when viewed by everyone.

Facebook makes simple the violation of the constitutional right to privacy; a right in which people have fought so hard to acquire. Of course, it is a person’s choice whether or not they post specific information about themselves, but because it is a person’s choice, one should be responsible

in consideration.

Dr. Siple was well within her rights to post her feelings of the Cohasset school system on her Facebook page. The actions of those who wished to share these private postings with others are the problem that should be focused on. Although our technology may be able to keep us connected, it should not be able to be used as a town square stoning.

The citizens of Cohasset, Massachusetts should acknowledge that in their own daily lives, some snide remarks about their workplace have occurred.

Students of Cohasset, in particular, should be aware that perhaps on their own Facebook accounts, there are “incriminating” photos or postings that the Cohasset school system has allowed to be taken in such a degree of seriousness that it could jeopardize jobs and for students, their enrollment in the high school.

The resignation of Dr. Siple can set a precedent for other incidents involving Facebook in Cohasset and across the nation, which is an unfortunate reality that we now face. Privacy has always been argued from our daily interactions all the way to the Supreme Court.

Incidents like Dr. Siple’s, however, are on their way in creating a new societal norm that says even if freedom of speech exists, the minute it is posted on the internet, your rights are as questioned as the words or pictures you may post. It is a Domino effect that one may only hope does not end in the reexamination of our civil liberties.

Contact Joan at joan.orejeuala@student.shu.edu

for anything he or she posted.

Although people choose who their “friends” are, the reality is that the majority of their “friends” are really not friends at all as exemplified by Dr. Siple’s mistake.

People allow these “other friends” who they barely know to view their everyday lives with the click of a button. While Facebook makes it easier for people to contact each other, it is also redundant. A person’s real friends are the people that one has other means of contact. Is it necessary that one allow strangers to view his or her life?

“Dr. Siple also abused her privilege of using Facebook by mistaking it for a private space when her settings were set to public.”

Many individuals abuse the easy privileges they are given. For example, many young girls use Facebook as a way of acceptance. They feel they will be identified

These are the results of a recent poll of 127 Seton Hall Students asked the question: “Should Dr. Stiple have been fired?”

By Liliana Garcia, Psychology Major

Facebook: Too Public For Private Thoughts Dr. Siple’s employers were fully within their rights to fire her. She made completely inappropriate statements in a public setting, whether she realized it at the time or not. The comments not only spoke poorly of the school system but also misrepresented and tarnished the name of that district for both the community and other teachers employed there. Facebook, other social networking sites, and blogs are not as personal as we would like to believe.

While it is true that Dr. Siple did not have the appropriate “privacy” settings in place on her account, the comments she makes online are still part of the public domain. She and all other internet users, including myself, are posting comments, uploading pictures and blogging on the internet, defined as a network of computers that are connected in order to share data and information throughout the world! Why should anyone familiar with how the internet works think it is in any way private?

The problem here is created by the general population’s misunderstanding of what privacy really means. We live in a world that is full of false privacy. Privacy, on the internet especially, is a notion that almost does not exist, in part because of the social networking technologies that caused Dr. Siple to lose her job. When we post as sexy individuals by posting risqué photos of themselves. The perception of beauty is skewed in posting these pictures because these girls are succumbing to the fact that women must appear a certain way. It is a shame that people have this idea that they must post their entire life on the internet, in order to gain some feeling of acceptance.

Dr. Siple also abused her privilege of using Facebook by mistaking it for a private space when her settings were set to public.

Facebook was originally created as a social network to connect students in college. The website eventually grew to include both high school students and college graduates. Then, it became a way for professionals to connect with their employees. Now, it is used by everyone including teenagers.

There is supposed to be an age limit in order for a person to create an account on Facebook. However, many children are able to easily access and create their own profiles. Facebook can become a dangerous source of communication for

something on the internet we are quick to forget that just as there are ways of keeping information private, there are many more ways for people to slip past those settings and see what we have written.

When considering what we place on the internet, we have to remember that just because one particular person has been denied access to our postings via privacy settings does not mean that what we say will not make its way back to him or her through other people.

Taking Dr. Siple’s example, let us assume that she did have all the commonly accepted privacy settings in place on her page when she posted the comments that caused her to lose her job. Even with these settings in place, she should not assume that her words could never be seen or heard by the people she spoke about. However, she is forgetting that the world is a very small place these days and getting smaller. The internet has allowed us to connect with anyone we want, and even those we do not know. You never know whose sister’s boyfriend’s mother is a Facebook friend of one of her students.

They say that there are only six degrees of separation between you and anyone else in the world. Combined with the internet’s ease of enabling us to find these connections, we cannot risk posting anything if there is at least one person who you would not want to see it.

Contact Liliana at liliana.garcia@student.shu.edu minors.

Facebook has become a way of networking not only for casual purposes but professional purposes as well. Many employers use Facebook to investigate potential candidates. This can be either beneficial or detrimental to prospective employees who have profiles, especially if they express too much of themselves.

If people are so concerned about their private matters, they should either censor some of their postings, or simply not use Facebook at all. It has become such as social and worldwide phenomenon, yet at the same time, so dangerous. I think the only way to prevent these issues is to ban Facebook altogether. However, I know that since demand for such a service is so high, someone will construct an even simpler and more dangerous social network.

Contact Gabriella at gabriella.petrillo@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, NOVEMBER 16, 2010

9

Editorials Marijuana: The Solution, Not the Problem

By Bryan Murawski, Money and Investing Editor California voters recently delayed the inevitable when they voted down Proposition 19, which was the most recent attempt to legalize marijuana in California.

The bill failed with a respectable 54 percent voting “no,” and 46 percent voting “yes.”

But why the lack of support? After all, marijuana is already practically legal in California. The possession of marijuana has been decriminalized making it an infraction, just like a parking ticket. The worst thing that can happen is a fine of up to $100.

What makes little sense is why the government hasn’t noticed the benefits of legalizing the plant. Legalizing the plant would make marijuana the nation’s number one cash crop, far ahead of tobacco. It is estimated that if marijuana were taxed, it would result in $105.4 million annually in California, a conservative estimate.

The government also spends $7 billion annually to fight the drug war against marijuana. If we were to cut all the costs of fighting a harmless plant, but taxed it instead, the current economic outlook could look much better.

After all, it is not like marijuana was made illegal because of scientific evidence

Photo courtesy of nyu.edu

that proved it harmful. In fact, just the opposite is true. Marijuana has scientifically been proven to be a beneficial medicinal plant. If you look at the history of why marijuana was deemed harmful and illegal, you would find that racism is what drove most people to believe so. In the early 1900’s many Mexicans, Latin-Americans, and black jazz musicians used marijuana recreationally. A stigma soon attached itself with the plant making many white Americans

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against its use.

An example of just how racism was the driving factor of marijuana’s illegalization is what a newspaper editorialized in 1934 saying “marijuana influences Negros to look at white people in the eye, step on white men’s shadows, and look at a white woman twice.” These fear tactics eventually were successful when in 1970 Harry Anslinger and his Federal Bureau of Narcotics deemed marijuana a schedule 1

drug, which is reserved for the most dangerous drugs with no recognized medical use.

Now here we are, in the 21st century, and marijuana is still illegal despite all the scientific research that proves everything the government has said wrong. If anything, alcohol is more dangerous to the body than marijuana. It contributes to nearly 15 thousand related deaths annually.

The government is turning a blind eye to the solution they have been looking for.

The taxation of marijuana would successfully cut large amounts of spending in areas of law enforcement, and decrease crime especially in the illegal drug market. The policy towards marijuana is outdated and should be looked at as such.

As long as supply and demand exists, there will always be someone to replace the dealer who gets arrested. The fight against marijuana cannot be won. The prohibition of marijuana has failed and has cost this country countless billions since its start. It is time the government and its citizens realize the truth and make the decision to legalize marijuana. The 2012 ballet will be the next time legalization is up for vote in California.

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

“Pay By Play” Demands

By Anthony Crisci, Editorials Editor

Photo courtesy of espn.com

The Official Business Publication of Seton Hall University

Executive Board Managing Editor Ian Mehok

Assistant Editors Money & Investing Jennifer Crowe

Assistant Managing Editors Margaret Reilly Lee Duan

Stillman News Beverly Makarios

Editorial Board Money and Investing Bryan Murawski Stillman News Ryan Garrity Ethics David Guzik Editorials Anthony Crisci Sports Rich Kimsey Domestic News Morgan Tornetta International News Kaitlin Tonti International Business Alex Cohen

Ethics Elizabeth Nizzi Sports Kayla Mjaatvedt Travis Tosoni International News Raphael Baseman

Faculty Advisers Michael Reuter, M.B.A. E-ma il stillmanexchange@shu.edu Website www.stillmanexchange.com Twitter stillmanXchange Fa cebook The Stillman Exchange

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

Recent headlines in the sports world have been surrounding collegiate athletes with allegations of receiving money from schools in order to attend. The speculation, in most cases, has been extremely accurate, and it makes a sports fan wonder.

Most recently Auburn star quarterback, and Heisman trophy frontrunner so far this season, has been at the top of the heap of these allegations.

This past week, the Auburn star and former Florida Gator, has been accused of making “pay-by-play” demands when his Auburn career began.

Newton started his football legacy at the University of Florida, and during his sophomore season, was Cam Newton’s first season as an Auburn Tiger. arrested on multiple charges including stealing a laptop, and was suspended State University. from the team.

These allegations against Newton, In 2008, Newton and his father decid- while some may be true, are becoming just ed it was time for a transfer immediately another excuse for a reporter to hold a confollowing then star Tim Tebow’s troversial story. Yes, he could have announced return to the Swamp. demanded money in order to play at To show his love for football and his Auburn or Mississippi State, and possibly morality, Newton decided to go to a small could have even taken it. junior college in Texas to earn his way At the same time, Newton did the back to college football supremacy. After right thing by going to a junior college, leading his team to the 2009 NJCAA showing people he could play the game he National Football Championship, Newton loved, and earned his way towards a secwas named the number one recruit coming ond chance. from either a junior college or high school.

Newton is shining in the NCAA world When it came time for Newton to right now and these allegations are only transfer, problems began and persisted. taking away from his performances.

This so called “pay-by-play” theory was Unfortunately this season, the deserving recently brought into the news, and was Heisman Trophy winner may be going said that he and his father negotiated home empty handed. prices when being recruited by Mississippi State and Auburn.

Gossip around the league has stated Contact Anthony at that Newton’s father reportedly demanded anthony.crisci@student.shu.edu $100,000 to $180,000 in order for his son to sign a letter of intent with Mississippi

10

TUESDAY, NOVEMBER 16, 2010

THE STILLMAN EXCHANGE

Sports Business

NHL Announces Changes to All-Star Game, Sponsors

By Travis Tosoni, Assistant Editor At the National Hockey League’s General Manager’s meeting, many topics were discussed like illegal checks, social media guidelines and possible overtime format changes. The biggest surprise coming out of the meetings was that the league has changed the format to its annual AllStar Game.

Instead of going with the traditional Eastern Conference versus Western Conference matchup, the NHL’s Vice President of Hockey and Business Development, Brendan Shanahan, announced a new system.

The new format will have two captains, as voted upon by the players. These appointed captains will then draft their own teams, and the fans will get to vote on the starting rosters of each team. These new ideas are in hopes to bring

Powerade big part of Coke’s NCAA strategy

By Brianna Young, Sports Business Writer Powerade is back on the sidelines for the 2010 Final Four NCAA Championships.

The sports drink’s logos will now be seen on the cups, towels, drink coolers, drink carriers, sidelines, and bench areas. The drink is replacing the previously used Vitamin Water due to Powerade’s sales being up by 25 percent in volume.

Powerade is going to replace Vitamin Water in all 88 NCAA championships especially for basketball. The decision for Powerade to be the replacement drink of Vitamin Water was made Monday November 8.

The first championships to have Powerade as its new representative will Cross Country Division 3 Championships later in the month. Even though Gatorade still has the highest sales of sports drinks at 71.4 percent, Powerade is now at 27.3 percent an increase of three percentage points.

The terms of Powerade’s deal with the NCAA has not been revealed.

The Powerade drink that will be featured in the Championships is the ION4.

Before March Madness it is said that Powerade should have a full media campaign, digital and retail activation.

This is a breakthrough for Coca-Cola who in the last four years has sponsored the NCAA Championships with three sideline brands: Dasani, Vitamin Water, and now Powerade. The hopes are that Powerade will hold the spot in the NCAA Championships for several years.

Coca-Cola hopes that by the NCAA deal with them will help keep the sales up for Powerade. Even though Powerade is taking over the game, some schools still will be representing the Gatorade brand, but not in any championship games. Based off of individual school deals Gatorade may still be on the sideline of some BCS college football games.

Powerade also has deals with pro-athletes like Chris Paul and Derick Rose of the National Basketball Association, Ryan Howard of the Major League Baseball, and Chris Johnson of the National Football League. Powerade also played a big role at the World Cup sponsoring FIFA. So as of right now Powerade is sponsoring over 200 colleges, almost a Dozen Major League Baseball Teams, and a handful of National Basketball Asocciation teams.

Contact Brianna at brianna.young@student.shu.edu

some life back to a game that many fans, quite frankly, don’t care much about.

This year’s All-Star Weekend is set to take place in Raleigh, North Carolina at RBC Center, home of the Carolina Hurricanes. As the league looks to bring the excitement back to its All-Star Game, Discover is looking to capitalize as the game’s presenting sponsor.

On November 8, the NHL announced its partnership with Discover Financial Services making Discover the Official Partner of the NHL in the United States. With the deal, Discover is now the official card of the NHL, as well as official card of NHL All-Star Weekend, NHL Awards, NHL Entry Draft and the NHL Winter Classic.

The newly-inked deal is a huge opportunity for Discover, who can now tailor its already extensive rewards system to its card members to suit hockey fans. Discover card members will be eligible through “Cashback Bonus”

rewards to receive discounts and special offers from NHL.com, the league’s flagship store powered by Reebok in Manhattan, and NHL GameCenter Live.

Discover hopes to reach out to more hockey fans in the United States with this new sponsorship deal, offering fans unique opportunities to be a part of select event throughout the NHL season. Through their new hockey-themed rewards contest and opportunities, one Discover cardmember will win their own day with the Stanley Cup, just like the players do after they win the coveted trophy.

Through the partnership, Discover has an opportunity to advertise through a huge professional market and provide special opportunities for their card members, and the NHL gains an important business partner moving forward in its’ national marketing campaign.

Contact Travis at travis.tosoni@student.shu.edu

Giants World Series win will do wonders for team’s brand

By Scott Kim, Sports Business Writer With the San Francisco Giants clinching of the World Series earlier this month, the team is expecting the normal increase in ticket sales, merchandising and all the other common bonuses that come with the titles, but that isn’t satisfying to their management. They instead are planning on expanding their World Series victory this year to much more than just those normal increases and are designing a whole new marketing scheme that they hope will make them a true economic force in baseball for years to come.

Ever since the Giants moved from New York to San Francisco the Giants had always been looked at as one of the teams that always fell just short until this year. They had not been able to win a title since their move after the 1957 season and with finally reaching the pinnacle in baseball again this year, they want to ride this title for as long as they can.

“This isn’t a brand elevation we’re talking about,” Giants president Larry Baer said in an interview last week. “This is a total transformation of the brand. It’s way more than a refresh. What the Giants are from a brand standpoint is going to be very different going forward.”

After clinching the NLCS, the Giants had lines of more than an hour just to get into their team store. Only 36 hours after their clinching of the National League pennant they had sold over $600,000 dollars of merchandise out of their team store alone. This increased even more after their clinching of the World Series title.

Even before their success this season they had a strong season-ticket base already at 21,000 full-season equivalents and now Baer expects that number to expand into the high 20,000s. The Giants also have a roster that is going to remain almost completely intact for the 2011 season, as stated before their merchandise sales are booming, and they have a strong TV presence on CSN Bay Area.

This is all contributing to a formula that is meant to bring them up into the economic class of the New York Yankees, Boston Red Sox, Chicago Cubs, and Los Angeles Dodgers.

At the same time they have these high expectations, Baer also don’t expect it to be an overnight success.

“We’re trying to grow this methodically,” Baer said. “I don’t see

us going crazy.”

Baer went on to say that he only expects the ticket prices and roster salary to only increase by single-digit percentages.

As exciting as it is for the bay area to have won their first World Series since 1954, they should be just as excited for the direction Photo courtesy of mixcrate.com

Brian Wilson and his crazy beard are part of the Giants appeal to the fans.

their team is now headed in.

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

Brady takes equity stake in deal with Under Armour

By Pete Brett, Sports Business Writer Three-time Super Bowl winning quarterback Tom Brady has joined Under Armour sports apparel as an endorser. Under Armour is rapidly becoming a household name, but still cannot compare to the global icons of Nike and Adidas. Both companies have dominated the sports apparel industry for over a decade. Under Armour has popped up in the conversation now with its dramatic entrance and signing a sports personality like Tom Brady certainly will help them compete with successful rivals such as Nike and Adidas.

In the NFL locker room, players wear clothes and equipment given to them by their respective teams. Tom Brady now wears Under Armour apparel, all with very prominent logos. This almost sounds like a slap in the face to the Nation Football

League, but those who know Tom Brady know he is the last person to disrespect anything. In fact, the move is just further proof of how smart the icon is. There is virtually no downside to an athlete taking equity, yet rarely do athletes participate in exchanging their assets for a piece of the company.

Brady makes almost $20 million a year from football and endorsements.

However, all that is taxed as regular income at rates reaching 50 percent of that.

NFL players generally get paid in 16 weekly checks, the same amounts of weeks in the NFL season, with these checks come file returns in all the states they play games in.

This occurrence is because even a $750,000 check is a target for state and municipal tax authorities. Brady is also 33 years-old, meaning he can only keep making this money for so many more years. By taking equity in Under Armour, Brady has a growth asset for when he retires.

Some of the most lucrative endorsements have been through equities instead of straight fees. New York Mets third baseman, David Wright, scored multimillions of dollars when Coca-Cola bought Vitamin Water, which had given Wright equity for endorsing the product. On the other hand, LeBron James’ deal with Nike doesn’t include equity in the apparel behemoth. Recently a controversial commercial was released by Nike titled “Rise,” which will give Nike huge buzz, but in effect is pounding on James’ image.

If an athlete is tied to a stock, they will lose money if the company doesn’t do well.

This could only be incentive for the athlete to be on their best behavior professionally and publically to receive full potential from the stake in the company.

Contact Pete at peter.brett@student.shu.edu

Sports Business

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TUESDAY, NOVEMBER 16, 2010 11

Puma uses power of social media for cause campaign Nivea for Men Kayla Mjaatvedt, doubt that the team at Magee-Women’s Foundation will translate partners with Nets By Assistant Editor their efforts into some truly impactful work within the field of breast cancer research.”

Puma launched its new program, Project Pink, back in July of for creative locker 2010. In its announcement, they pledged to donate 100 percent of Photo courtesy of soccerequipmentreviews.com from the sale of Project Pink merchandise to a research founroom sponsorship profit dation dedicated to researching breast cancer cures. Project Pink was

By Mark Parisi, Sports Business Writer For years companies have been trying to find the perfect marketing scheme to showcase their company in sports. There have been companies like Reebok and Nike dominate the face of sports in terms of advertising, making it harder for smaller Photo courtesy of cnbc

developed in conjunction with PUMA's partnership with the active female athletes of Women's Professional Soccer.

PUMA created a special collection of pink products, in honor of the pink breast cancer ribbon, including a soccer ball, gym sack, tshirt, and replica jersey. They also promised to give $1 for every tweet using the Twitter hashtag #projectpink.

With the conclusion of Puma’s fundraising, they are pleased to present an organization with a total of $62,730.62, including funds that were raised from 17,867 tweets.

In order to pick the institution to which they would donate the proceeds, they created an open forum on the Puma website and allowed young soccer fans to nominate and vote for the non-profit organization that was most deserving. Magee-Women’s Foundation was the popular vote and ended up being chosen to receive the funds.

“We're so pleased that Project Pink's first beneficiary is such a deserving organization,” said Jay Piccola, Puma North America’s President and General Manager. “So many amazing young women engaged with the program, nominating an impressive group of nonprofits, banding together to vote for them, and tweeting their hearts out in support – they honestly made all the difference. We have no

Puma created a huge buzz via social media for its Project Pink campaign.

The initiative was developed as a long-term commitment. Even though Breast Cancer Awareness Month has passed, the fight against breast cancer still remains. Project Pink will continue throughout the 2011 Women’s Professional Soccer season, with fresh products, new faces for the campaign, and more opportunities for young women and soccer fans to get involved in the fight. This definitely isn’t the last we’ll be seeing of Puma’s Project Pink.

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

Nivea’s deal includes extensive inside branding.

Blackouts plaguing NFL season

companies to get noticed in the sports world.

The Nivea brand has signed a deal with the New Jersey Nets giving them the rights to present its product in the locker room.

Due to the signing, Nivea will be able to place its product in the locker rooms where it will be in use of the Nets players, along with being seen throughout the room during post game interviews. The move can be risky for Nivea by sponsoring the Nets because of their low TV ratings and attendance at home games.

After a market research tracking firm predicted men to spend 10.2 percent less money in the grooming business, Nivea will be hoping this move will keep their name out there.

The locker room will be filled with Nivea products such as towels, rugs, shampoos, soaps, and on top of all that the locker room itself has been titled the “Nivea for Men Locker Room”.

For the Nets, this isn’t the first time they’ve been open to signing with a partner in a untraditional category. The Nets are considered one of the most open and progressive teams in terms of letting companies try new marketing concepts. In the past, the team had sold some of the space that was used in the back of the visiting locker room to the company Marquis Jet. The coach of the Nets, Avery Johnson, believes that if this works out for Nivea, the company will definitely be looking to sign similar deals with other NBA teams.

Although Nivea is trying something new by marketing with the Nets, this isn’t the first time that a men’s grooming business has turned towards athletes to market products.

A couple of Nivea’s competitor’s such as Vaseline Men and Dove for Men have signed several athletes to their respective companies.

Vaseline had signed former New York Giant’s football player Michael Strahan, while Dove had set up deals with the New York Yankees pitcher Andy Pettitte along with St. Louis Cardinal’s first basement Albert Pujols. As players exit the locker room dressed in suits and ties, Nivea will be hoping to keep the New Jersey Nets looking clean and fresh during 2010-2011 season.

By Ian Baker, Sports Business Writer

Contact Mark at mark.parisi@student.shu.edu

This season, the National Football League is on pace to set a record for most games blacked out in one season.

Only nine weeks into the 2010 season, there have already been thirteen games blacked out.

This is more than half of the 22 games that were blacked out in the 2009 season.

The NFL’s blackout rule says that if a game is not sold out within 72 hours of the game, then it will not be televised locally. Sunday November 7, the Oakland Raiders ended their streak of eleven games in a row being blacked out by selling out the game against the Kansas City Chiefs.

MLS website shows increase in popularity

By Ian Baker, Sports Business Writer

This year the NFL has even seen a drop in attendance in games from 2007 to 2010. In 2007, the average attendance of games was about 68,700 people opposed to the average 67,300 through nine weeks of the 2010 season.

The blackout rule is intended to encourage people to go to the stadium to watch teams play instead of watching the game at home. The steady drop in attendance shows that the blackout rule is not working as it is intended to.

Earlier this year, Apex News Network released an article talking about teams that were in danger of being blacked out. The list included some sub-par teams such as the Detroit Lions, St. Louis Rams, and the Buffalo Bills. The list even included the Arizona Cardinals, which is surprising seeing as the Cardinals played in the Super Bowl just two years ago.

What could be the cause of the league wide blackout issue? It could be that the recession hurt a lot of people and they do not want to spend the money to go watch games at the stadium. It could also be due to the performance of the teams. People do not want to spend the money to go watch their teams lose; they want to see their team win and get their money’s worth.

The numbers show that attendance of games has been decreasing since 2007, which causes more blacked out games across the country. With these numbers, should the NFL look to revise the rule to decrease the number of blacked out games?

The Major League Soccer’s website, MLSsoccer.com, has seen an increase in the number of visitors to the site after a rocky first few months of existence.

Since the site was launched in March, statistics released by the MLS show that there are an average 2.5 million unique visitors to the site ever month. This is an increase of about a half a million viewers of their old website, MLSnet.com.

What does this increase in viewers of the website mean for MLS? More people are beginning to visit the league and team websites which means that either more people are beginning to follow MLS or the new website is much better than the old one.

Before MLS went independent and decided to run the website in-house, they had had a six-year agreement with MLB Advanced Media. Unhappy with the rate at which the website was being updated, MLS took the step to launch the new website.

Not everything ran so smoothly for MLS, however. They hired employees in October 2009 for the March 2010 release of the revamped website. Once released, the website was criticized by many fans and bloggers. Many criticized the site for inconsistent design, poorly updated schedules and statistics, and minor stylistic errors. Bill Archer, blogger of Bigsoccer.com, titled his review of the site “MLS Launches Worst Website in History.”

In June, MLS took the steps to revamp the site and fix all of the errors. As a result, the site now has 70 full and part time employees, opposed to the handful of dedicated computer techs and writers it had before. This includes all 16 teams in major league soccer having a dedicated writer.

They even went as far as hiring three big, well-respected names in American Soccer; Greg Lalas, Johan Freedman, and Shawn Francis.

There are many factors that could play a role in the increase in views of the site. It could be that MLS clubs are signing big name stars that played for top-tier teams in Europe. It could be that people watched the World Cup and became interested in MLS.

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

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

Photo courtesy of zimbio.com The Bills and Jaguars have dealt with blackout problems all season as fans are not going to games.

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TUESDAY, NOVEMBER 16, 2010

Stillman Sports

THE STILLMAN EXCHANGE

Auburn’s Newton latest college athlete facing allegations

By Tony Bonkalski, Stillman Sports Writer In the midst of the recruiting violations in the NCAA, yet another allegation brings a new problem to the maelstrom of those in the college football world—Cam Newton being accused of both accepting payment to attend Auburn and cheating while attending Florida.

Cam Newton, the starting quarterback for the Auburn Tigers, and as of now, the frontrunner in the race for the Heisman Trophy is the most recent prominent college athlete to come under scrutiny. It all started when Newton “allegedly was soliciting a six-figure payment to secure his signature on a national letter of intent” according to ESPN’s Pat Forde, Mark Schlabach and Chris Low. This six-figure payment occurred during his re-recruitment out of Blinn College.

When this report became public, no one commented about the report and it began to quiet, but then the situation worsened when Fox Sports’ Thayer Evans alleged that Newton “had three different instances of academic cheating while attending the University of Florida and faced potential expulsion.”

Let the games begin.

Originally, Newton was forced to leave Florida because of an incident involving a stolen laptop, but now it seems as

if there were underlying reasons as well. In response to these allegations, Jay Jacobs, Auburn’s Athletic Director, stated his intent to remain behind Newton all the way, expressing his views on Newton’s integrity.

Photo Courtesy of Getty Images

have done any wrongdoing. Some fans say that the reasoning behind all of these allegations is to make Auburn lose games. Auburn is currently ranked number two in the BCS standings, and if they win all of their remaining games, will be in the National Championship. Andy Staples, writer for Sports Illustrated, insists that all of these allegations are real.

“It’s not a conspiracy” he writes.

True or not, these reports have major implications on the Heisman race. As of now, Cam Newton seems to be the favorite for the Heisman Trophy by a long shot. That being said, all of these allegations are diminishing Newton’s hope for being called the best player in college football. The allegations and reports are starting to make people wary of Newton’s character and in response to his “character issues” the voters for the Heisman Trophy will be more cautious in giving Newton their vote.

The NCAA does not want another Reggie Bush situation where Cam Newton must give up his Heisman Trophy if these allegations are indeed true. For now, all of these allegations remain unclear, but who knows what the future will hold for the NCAA and in particular Cam Newton.

Newton’s Heisman hopes are in jeopardy amidst recent findings

The problem with all of these allegations is that no one has come out with any factual evidence proving Newton to

Contact Tony at antonio.bonkalski@student.shu.edu

Stillman Sports Gebrselassie retires after injury in NYC Marathon Super Seven

By Matt Bartel, Stillman Sports Writer This year’s New York City Marathon featured a turning point in the history of the sport. Thirty-seven-year-old Ethiopian Haile “The King” Gebrselassie was injured in the 16th mile and at the race’s conclusion announced his retirement from the sport.

Gebrselassie came racing into the marathon scene in his teen years compiling numerous wins in different World Junior Championships. He set his first world record at the age of 21, winPhoto Courtesy of Reuters

With Gebrselassie’s retirement, the sport of running has lost an icon

ning the 5000 meter in only 12:56.96.

This would be the first of many great accomplishments for

Gebrselassie, as the 1996 Olympics in Atlanta would see him take home a gold medal in the men’s 10,000 meter race. Haile would continue his success in the 2000 Sydney Olympics, where he would defend his 10,000 meter gold. After not participating in the 2004 Athens Olympics, Gebrselassie would begin to focus on marathons.

Hitting the ground running once again, Gebrselassie set the world marathon record in 2006 finishing in just 2:06.20. In that same year he would break the world half marathon record, and shatter rival Paul Tergat’s 20 kilometer and 25 kilometer world records for road races. In spite of all these records and successes, time and abuse to the body would catch up to “King” Gebrselassie.

Entering this year’s 41st running of the New York City Marathon, Gebrselassie was the odds on favorite to win just as he had in over 130 races that had come before it. However, a day earlier Gebrselassie had his knee drained due to severe tendinitis and decided to participate anyway. The pain overcame him at the 16th mile, and Haile stopped running while on the leg of the race crossing the Queensboro Bridge.

With this what ended was not only the career of a single runner, but of an era in which he dominated. Over his career he had set 27 world records to go along with his two gold medals and over 130 race victories, earning him the aforementioned monarchial moniker of “The King.” Truly saddened by the end of his run, Haile tearfully uttered to the media “I don’t want to complain anymore after this.

It’s better to stop here.”

As his era of amazing performances ends, a new day for competitive running emerges. The sport must now search for a new champion who will attempt to fill the void left in the now vacant King’s throne.

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

Yankees looking to retool through MLB Free Agency

By Nick Costa, Stillman Sports Writer The New York Yankees enter the offseason after a disappointing playoff exit at the hands of the Texas Rangers. For a team that strives to put a championship winner out on the field every year, its reign as World Series winner ended a bit too soon. That result, coupled with the fact that Derek Jeter and Mariano Rivera are free agents, makes this winter in the Bronx a very interesting one.

For many, the return of Jeter and Rivera to the Yankees seems like a foregone conclusion. However, many wonder exactly how much the Yankees are willing to pay to keep Jeter a Yankee for the rest of his playing career.

For many shortstops, batting just .270 with 10 homeruns and 67 RBIs is not enough to get a lucrative four to five-year deal that many feel Jeter will be seeking. However, what comes along with the statistics is the fact that Jeter is one of the most revered Yankees of all time. His marketability along with his personality, leadership, and his chase for numerous milestones, such as 3,000 career hits, are what makes overpaying for an aging shortstop worth it in the eyes of

the Yankees.

Though bringing back these two veterans seems to be the least of the Yankees’ worries, improving on a club that got ousted in the Championship Series remains the Yankees’ number one priority. The Yankees don’t have to look past the team that eliminated them from a chance of a repeat, as Rangers’ ace lefty Cliff Lee will test the free agent market. The Yankees’ ability to outbid any competitor has left many baseball experts to predict it’s just a matter of time before he signs on the dotted line with the Bronx Bombers.

The success of the Yankees offseason will be measured by the team’s ability to bring back key veteran players while improving on a rotation that struggled toward the end of last season. Typically, when the Yankees have their eye set on a particular player they get him. After a 2008 season that saw the Yankees miss the playoffs for the first time in 13 years, the team spent a combined $423.5 million on CC Sabathia, A.J. Burnett, and Mark Teixeira; all three of whom contributed to the championship team in 2009. After failing to repeat, the Yankees hope offseason additions once again bring them back to the top of the baseball world.

Contact Nick at nicholas.costa@student.shu.edu

7. Aaron Kampman, of the Jacksonville Jaguars tore the ACL in his right knee during practice Thursday, leaving the Jaguars without their best pass rusher and their defensive leader.

6 Last week the Dallas Cowboys forgot to renew the registration of their domain name and for some time cowboys.com was replaced with a generic page. When the site was finally registered, fans looking for information on the newly fired coach Wade Phillips could only find a holding page with two soccer player graphics on the front.

5. Cincinnati wide receiver Chad Ochocinco and New York Jets linebacker Bart Scott were each fined $20,000 by the NFL for violating the league's uniform policy. Ochocinco wore gold cleats during the Bengals' 27-21 loss at Pittsburgh and Scott was fined for playing without having his chin straps snapped at all times during the Jets' 23-20 overtime victory.

4. Browns linebacker, Marcus Benard, sat out practice on Friday and one day after fainting in Cleveland's locker room. Benard collapsed in front of his cubicle on Thursday during the interview period with reporters.

3. The Denver Broncos face the loss of leading tackler D.J. Williams to an NFL suspension following his second drunken driving arrest. Williams was charged with a DUI after being arrested in Denver Friday morning.

2. FC Dallas coach, Schellas Hyndman, has been picked as the Major League Soccer coach of the year. Hyndman led FC Dallas to a 19-game unbeaten streak and the team's first postseason berth since 2007.

1.Minnesota Timberwolves power forward Kevin Love notched the first 30 point, 30 rebound game in the NBA in 28 years. He is the first player since Moses Malone to accomplish the feat.

THE STILLMAN EXCHANGE

TUESDAY, NOVEMBER 16 , 2010 13

Domestic News

“Mystery Missile” Off the Coast of California Still Baffling Officials

By Danielle Califano, Domestic News Writer A “mystery missile” contrail was spotted off the Southern California coast the night of Monday Nov. 8. The frenzy started when the missile contrail was captured on video by a KCBS-TV news helicopter flying above Los Angeles at around 5 p.m.

Pacific time.

The crew aboard the helicopter estimated the contrail was approximately 35 miles west out to sea, north of Catalina Island.

More attention was drawn to the video when news stations were told by Navy and Air Force officials that they did not launch a missile Monday night. Military officials spent all day Tuesday trying to determine who or what may have been responsible.

Because the video shows what appears to have been a missile launch at sea, there was speculation that a Navy vessel, maybe a submarine, might have launched a missile off the California coast. However, Navy officials determined that none of their vessels had fired a missile.

So if the military was not behind the apparent missile firing caught on tape, who was?

Some suggested that it may have been a commercial venture. This was not the case, though, because private commercial testing requires contact and coordination with federal aviation and maritime agencies to make sure no civilian aircraft or boats enter a maritime splash or launch area.

Another military base that was inspected was Vandenberg Air Force Base. The base is a regular launch point for missile

has any knowledge of what this event may have been.”

ABC News even brought in an expert

Photo courtesy of New York Daily News A plume of vapor was caught by KCBS cameras off the coast of California on Nov. 8. Officials still do not know what caused the vapor trail.

tests just north of L.A, but Air Force officials confirmed that they had no missile activity either on Monday night.

“So far we’ve come up empty with any explanation,” Colonel David Lapan told reporters. “We’re talking to other parts of the U.S. government. We’re doing everything we can to try to figure out if anybody

News Briefs Bush Admits to Authorizing Waterboarding Former President George W. Bush mentions his authorization of waterboarding in his memoir. A controversial topic since his presidency, the waterboarding interrogation technique had been used on the alleged 911 plotter Khalid Sheik Mohammed, as well as other CIA detainees. In his book titled “Decision Points,” Bush recounts giving CIA officials the permission to go about the interrogation, in a desperate attempt to save the lives of many Americans. Many international legal experts refer to the technique as illicit torture. He claims that the Justice Department officials and other top aides gave him the assurance that the interrogation procedures were legal. However, Bush’s admission to waterboarding can potentially expose him to prosecution.

Privacy Laws Prevent IRS from Disclosing Missing Persons Data According the the government, they have data that could help reunite missing children with their families, but because of privacy laws, they cannot release information. Taxpayer information held by the IRS in some cases can be vital in locating missing children. For example, children can appear on tax documents as dependants to claim them as a tax exemption. The exceptions to these privacy laws are very specific. In criminal cases, there are obstacles, even if the taxpayer is a wanted felon.

Three Senators: Report Was Manipulated Three Republican Senators have accused the White House of editing changes into the Interior Department report on the BP oil spill. They claim that these changes falsely asserted that independent experts endorsed a decision to halt all deepwater oil drilling. The senators are members of the Environment and Public Works committee. A White House spokesman said that there was no evidence that the White House had intentionally misrepresented the views of the scientists and other experts.

from the Federation of American Scientists to screen the KCBS-TV video for one of their news reports. The expert, Ivan Oelrich, could not decide if the video showed a missile launch or an optical illusion involving a plane’s contrail.

Oelrich said it could be a jet contrail because if the jet contrail is horizontal, “it

goes a long, long distance, almost to the horizon, (then) it looks vertical,” which this contrail seemed to show. But he also said that a plane would have had multiple separate contrails that are not seen in the video.

There was a glint of light at the top of the contrail, which Oelrich assumed was the exhaust from a rocket engine. However, the flash of light “doesn'’ appear earlier, which is unusual, because if it were a rocket, you would see that continuously.”

To add to the mystery of what’s on the videotape, The Federal Aviation Administration replayed their radar that scans a large area west of Los Angeles for fast moving unidentified targets, but nothing appeared on the radar.

The FAA said it did not approve any commercial launches around the area on Monday. Also, The FAA did not receive any reports of any unusual sightings from pilots who were flying in the area on Monday afternoon.

Until more information is gathered, this remains an unexplained mystery, but in the meantime, The North American Aerospace Defense Command reassures us that whatever it was, “there is no indication of any threat to our nation and from all indications this was not a launch by a foreign military.”

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

Commission on Fiscal Responsibility Outlines Budget Plan

By Padmavathy Sonti, Domestic News Writer On Wednesday, November 10, Democrat Erskine Bowles and Republican Alan Simpson, the two co-chairmen of the National Commission on Fiscal Responsibility, outlined a plan to reduce the federal budget deficit by cutting spending and reforming the tax system.

“America cannot be great if we go broke,” the plan said, “Our economy will not grow and our country will not be able to compete without a plan to get this crushing debt burden off our back.”

By 2015, the Bowles-Simpson plan proposes cutting domestic and defense spending by $200 billion.

In addition, to ensure adequate tax reform, the co-chairmen have compiled several options to simplify the tax code. For instance, one option would eliminate popular tax breaks and lower income tax rates for individuals and businesses. The measure also permits a gradual tax increase on gasoline and classifies capital gains and dividends as ordinary income.

Other changes include raising the social security retirement age to 69, cutting the federal workforce by ten percent, and reducing health care costs.

For the 2010 fiscal year, estimates reveal that the budget deficit

was $1.3 trillion and accounted for 8.9 percent of the gross domestic product. If implemented, the plan would reduce the deficit by approximately $4 trillion by 2020. The plan’s primary goal is to hold revenues and spending to 21 percent of the gross

“If all I can get is 90 percent spending cuts and ten percent revenue increases...I’ll go for that. The point is, no one’s going to get it all their way.”

-Senator Tom Coburn (R-OK) domestic product.

“Before anybody starts shooting down proposals, we need to listen, gather up all the facts, and be straight with the American people,” stated President Obama.

Although the plan is in the preliminary planning stages, it has been met with significant skepticism from lawmakers.

“The proposal laid out today by Commission Co-Chairs Bowles and Simpsons is a starting point for the conversation about how to rein in the deficit and control spending here in Washington,” said Senator Dick

Durbin (D-IL).

“This draft proposal has some painful cuts, some things that inspire me and some things that I hate like the devil hates holy water. I'll continue to work on making some changes to this draft, but it is an interesting starting point for future conversation,” he continued.

“I think the problem can be solved without any tax increases, but I’ll do what’s best for the country in the long term,” said Senator Tom Coburn (R-OK). “If all I can get is 90 percent spending cuts and ten percent revenue increases…I'll go for that.

The point is that no one’s going to get it all their way.”

In order for the plan to be considered by Congress, it must first be agreed upon by 14 of the 18 members of the commission.

“I set up this commission precisely because I’m prepared to make some tough decisions,” President Obama said. “I can't make them alone. I’m going to need Congress to work with me.”

Bowles is the former Clinton White House chief of staff and Simpson is a former U.S. Senator from Wyoming.

The commission is expected to make its final recommendations to President Obama by December 1.

Contact Padma at padmavathy.sonti@student.shu.edu

14

TUESDAY, NOVEMBER 16, 2010

Domestic News

NY Governor Paterson Releases Draft of LongTerm Climate Action Plan

By Jacqueline Munguia Domestic News Writers On Tuesday, November 9, current New York Governor David A. Paterson released draft of the Climate Action Plan. His plans aim to reduce greenhouse gas emissions by 80 percent in 40 years and expand the economy.

Paterson’s administration hopes to lessen the negative impact on the atmosphere while creating more jobs in the clean energy field. Although he will be replaced

by Andrew Cuomo in a few months, Paterson hopes Cuomo will carry out his plans, considering the similarity between their energy policies.

The plan, which was assembled with the assistance of over 100 industry experts, touches on different areas including transportation, land use, power supply, agriculture, forestry, and waste management.

The plan says that to develop agriculture in an environmentally-friendly way, “New York farms will be net exporters of energy, including market-ready electricity and biogas; farms will serve as a direct source of heat and electricity for surrounding communities, providing consistent, baseload power to the grid from on-farm anaerobic digestion of organic wastes and waste heat for onsite and offsite use. Farms will supply feedstocks for transportation fuels, as advances in bio-technology will have dramatically increased yields of dedicated bio-energy crops.”

Another of the more specific transportation goals is to limit any vehicle that is not mass transportation to electric or biodiesel fuel vehicles. Mass transportation of goods is also expected to run on zero- or low-carbon fuel.

In an effort to lessen pollution, more neighborhoods will encourage consumers to use biking and walking. In addition, shopping centers will be located near public transportation. Newer energy storage sources are projected to become available

including compressed air, batteries, and nuclear power.

In terms of agriculture, the administration envisions farms as a vital part of the economy by providing heat, electricity, and food to neighboring towns and cities.

“Transitioning to clean energy means more than driving a zero-emissions car.

It also meand manufacturing that car right here in New York, employing New York workers, driving the New York economy...”

-Governor David Paterson Three days after his plan was released, Paterson announced $61.5 million would be used to improve water quality in urban, suburban, and rural communities. Projects involve wastewater treatment, creating separate storm sewer systems, and managing water quality.

Money from the grant has also been allocated to restore habitat, stabilize shorelines, and address sanitary sewer issues in certain counties throughout the state.

As Governor Paterson noted in an energy research conference on Tuesday,

“Transitioning to clean energy means more than driving a zero-emission car. It also means manufacturing that car right here in New York, employing New York workers, driving the New York economy and building New York’s tax base.”

However, the recent budget and staff cuts of the Department of Environmental Conservation (DEC) seem contradictory.

The Director of the DEC, Alexander B. Grannis, sent out a memorandum to his staff regarding the cuts. When it was leaked to a New York newspaper, he was asked to resign.

The memo detailed the staff cuts and the negative effects they would have on the agency’s effectiveness. Grannis found it nearly impossible to maintain, much less improve the state’s environmental quality with fewer funds and staff. When Grannis refused to resign, he was fired. Governor Paterson has also cut a state environmental fund in order to help the state’s budget deficit.

Robert Moore, executive director of the Albany-based Environmental Advocates of New York, praised the environmental plan, and suggested the incoming governor Cuomo could fraw on the plan to contribute to his own plans on climate change.

“They want to do something that’s strong and robust, and that’s a real commitment,” he said of Cuomo and his administration, “They can start borrowing from this blueprint immediately.”

As much as Governor Paterson wishes to proceed with his Climate Action Plan, it seems the economy will not let him. The technology exists, the plans exist, but the money is nowhere to be found. Perhaps the transition to an environmentally sound state will take longer than the planned 40 years.

Contact Jacqueline at jacqueline.munguia@student.shu.edu

THE STILLMAN EXCHANGE

Midterms See Republicans Rise ...continued from page 1 To name a few of their major goals, Republicans want to make government smaller, jump start the economy, create jobs, extend the Bush tax cuts for everyone, rather than just to the middle class, and cut spending. The biggest item on the Republican’s agenda is to reverse the Health Care Bill. However, analysts believe that this will be difficult to do.

No matter what they do to alter or repeal the Bill, the President still has the power to veto, which he will most likely do as long as he is in the Oval Office. The only option that the Republicans have is to hold hearings. But there is the chance that these hearings would allow Democrats to educate Americans on this Bill.

The Democrats, conversely, have a few items that they are going to try to push through before January. These items include an arms-control treaty with Russia, allowing gays to serve openly in the military, and promoting First Lady Michelle Obama’s child-nutrition initiative.

Both parties express their hope that they can work on many of these issues with a true bipartisan effort.

In addition to the changes on Capitol Hill, 37 gubernatorial candidates were also elected. Republicans gained 7 states. This change is also important because next year a new redrawing of the congressional districts is to occur.

Both parties already have their eyes on the future. The Democratic, Republican, and Tea parties are all looking for the candidates they plan to endorse in the next two years of campaigning when 33 Senate seats, all House seats, and the Presidency are up for grabs.

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

New Jersey Governor Christie Repeals Former Governor’s Agreement With Union Laborers About Holidays

By Candice Woods, Domestic News Writer In 2009, New Jersey Governor Jon Corzine reached an agreement with New Jersey union workers to have the option to have Black Friday as a day off instead of Lincoln’s Birthday as one of the thirteen scheduled paid holidays that union workers are allowed to have off from work.

Governor Chris Christie is now attempting to repeal this agreement and wants the union workers to work on Black Friday.

Christie guaranteed that the union workers would have Lincoln’s Birthday off next year after mandatorily working on Black Friday this year. While the union workers could use a vacation day to take off on Black Friday, the union workers are dissatisfied with Christie’s retraction of Corzine’s 2009 Memorandum of Agreement because Corzine had already guaranteed that Black Friday would be a paid day off. In the past, Black Friday has been an unpaid furlough day.

David Cohen, the director of the Office of Employee Relations, does not believe that Corzine’s 2009 Memorandum of Agreement is a binding contract between the union workers and the state. Cohen believes that the state legislature would have to approve the paid holiday exchange

in order for the union workers to have Black Friday off this year.

The 2009 Memorandum of Agreement also dictates that legislation should be passed that will alter any contracts with

rent recession, union workers should not have a paid day off. In the memo released regarding Christie’s intent to reverse Corzine’s holiday exchange in October, Cohen wrote “In these tough times, the gov-

Photo Courtesy of The New York Daily News Governor Christie’s proposition will make workers choose to take Black Friday, one of the biggest shopping days, as a holiday.

unions and state employees. Currently, no legislation has been passed or introduced to the legislature regarding the holiday controversy.

Cohen also believes that due to the cur-

ernor also knows that it would send the wrong message to residents of the state to declare an additional paid day off for employees.”

The New Jersey Public Employment

Relations Commission does not support Christie’s mandated Black Friday work day.

On November 11, the New Jersey Public Employment Relations Commission, which acts as a representation and an arbitrator for unions, sided with the union workers.

In a statement made by the New Jersey Public Employment Relations Commission, Stuart Reichman stated “employees denied the opportunity to enjoy the day after Thanksgiving as a paid day off would be irreparably harmed.”

Regardless of New Jersey Public Employment Relations Commission’s plea to allow union workers to have Black Friday off, Governor Christie still upholds his position that union workers should work on Black Friday.

No lawsuits have been filed regarding Black Friday but, concerning the New Jersey Public Employment Commission’s statement, Michael Drewniak, Christie’s spokesman, said “that the governor’s office is exploring its options.”

Despite Christie’s current squabble with New Jersey unions, Christie’s approval rating is satisfactory. According Quinnipiac University, Christie’s overall job approval rating is still at 51 percent.

Contact Candice at candice.woods@student.shu.edu

THE STILLMAN EXCHANGE

TUESDAY, NOVEMBER 16, 2010

International News

Polio Outbreak Shows Surprising Stats

By Danielle Polak, International News Writer

Less than a week following a confirmed case of polio was reported in The Republic of the Congo on November 4, 104 deaths have been reported of the over 200 cases of acute flaccid paralysis.

Although the numbers themselves are cause for concern considering the sheer number of people afflicted, the numbers of the severe cases that result in death or paralysis is much higher than usual for the disease. Usually most people who contract polio experience no symptoms, with less than 10 percent of the population who experience minor symptoms, and less than 1 percent who experience paralysis. Of the 1 percent who suffers from paralysis, less than 20 percent of these cases result in death when the paralysis reaches the nerves that control the ability to breathe.

However, the death rate and the paralysis rate are both much higher than a normal outbreak of polio would suggest.

Experts hope that most of the records being kept of this event thus far have been taken from hospital records, claiming that because hospitals are seeing the most severe cases the numbers may be skewed making this outbreak appear to be more severe than it is.

Should this theory turn out to be true, there are still other statistical anomalies that have yet to be accounted for. Normally, the disease strikes males and females equally, but here the majority of victims have been male, leading some to speculate that the women of the nation have developed a type of possible immunity. Another unusual demographic is the age of the victims. Eighty-five percent of the cases are teens and young adults ages 15 through 29. Polio vaccination did not reach Africa until the 1980s, however the outbreak does not seem to have affected the older demographic who were likely not immunized.

There are two types of polio immunizations.

In the United States, IPV is the main source of prevention since 2000. This is a series of 4 shots given to children when they receive many other types of vaccinations before starting school. The OPV, which is taken orally in two doses, is a type of immunization that has not been used in the US, but is frequently the form delivered to African nations when organizations such as UNICEF or WHO make efforts to eradicate this preventable disease.

The Congo has declared an official state of emergency and many international organizations, as well as the U.S. Center for Disease Control, have offered to assist with the vaccination effort in the Congo, which will proceed starting November 12 with the second wave two weeks later. The entire population, no matter age or previous vaccination status, will be receiving the vaccination, with people going door to door in order to make sure that everyone is reached.

Just last month the WHO began a campaign to immunize 72 million people, mostly young children, in 15 African countries as part of their attempts to eradicate the disease. Results looked promising when Nigeria, usually a problem site for the WHO, reported a 98 percent decrease in polio diagnosis. However, with this most recent outbreak in the Congo, which appears to be an Indian strain, it is unclear if the polio immunization push in October will really make the WHO closer to reaching their goal.

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

15

G20 Leaders Meet Amid Fears of Global Currency War

By Raphael Baseman, International News Assistant Editor As the G20 leaders wrap up their meeting in Gyeongju, South Korea, on Friday, November 12, fears of an open currency war abated, while the shaky nature of the international economy continues to spawn worry.

The U.S. and China, who have faced issues concerning currency evaluation for nearly two months, tried to mend their differences, at least on the surface.

Barack Obama said, “Exchange rates must reflect economic realities…Emerging economies need to allow for currencies that are market driven. This is something that I raised with President Hu (Jintao) of China and we will closely watch the appreciation of China’s currency.”

The final communiqué of the meeting, detailed some determinations made by members of the G20, did not directly address the issue of currency but did state that the members will “minimize any negative impact on trade and investment of our domestic policy actions including fiscal policy and action in support of the financial sector. However, no specific discussion of the currency issue was made.

Just a day before the meeting began, China once again appeared in the news on a bitter note when its trade surplus was released for October, showing a rise of 22.5 percent over last year, while imports jumped 25.3 percent, making for a total surplus of $27.15 billion. While the yuan is no longer pegged to the dollar official-

ly, China’s currency has been estimated to be undervalued by as much as 40 percent.

The U.S. has come under fire for its latest round of quantitative easing measures from finance ministers and homegrown critics of the Federal Reserve’s policies.

While Washington accuses China of continuing to hold down the yuan, and threatens sanctions against Chinese imports, quantitative easing is accused of flooding emerging economies with cheap U.S. dollars, thereby bolstering their own currencies, and discouraging investment.

Other smaller economies from South Korea to Mexico are worried about the effect of currency manipulation, specifically the United State’s use of quantitative easing, on their economies. The Mexican peso made the largest gain versus the dollar on record in 2010, a rise of 7.7 percent.

Meanwhile, South Korea, is considering imposing a 14 percent tax on domestic Treasury and central bank bonds early next year in response to the 9 percent rise of the won against the dollar since June.

When asked about the currency issue following the meeting on Friday, Obama said, “Precisely because of China’s success, it’s very important that it act in a responsible fashion internationally… (the yuan) is undervalued. And China spends enormous amounts of money intervening in the market to keep it undervalued…

China has acknowledged that it needs to transition to a more balanced growth strategy internally where they’re focusing on their enormous domestic market and giving their people the opportunity to buy

goods and services and consume – all of which promote their growth, but also will reduce some of the imbalances around the world.”

Zhou Xiaochuan, head of China’s central bank has rejected what he called “shock therapy” to increase the value of the yuan, saying it will eventually rise to equilibrium on its own.

While China maintains that any sudden rise in the value of the yuan would be disastrous to its economy, it has said previously that a three-to-five percent annual appreciation would be acceptable.

Robert Zoellick of the World Bank, who along with Brazilian finance minister Guido Mantegna had referred to the issue of currency evaluation as a global currency war stressed in a BBC interview China’s internal policies’ emphasis on increasing domestic demand, which would hopefully shift China’s area of economic growth from foreign exports to domestic consumption. While he called currency a contentious issue, he also said, “One has to be wary of the tensions because you don’t want to slip into protectionism.”

Tim Condon, of ING Financial Markets in Singapore said leaders had fallen short of the hoped-for progress in the summit: “They decided just to put down a lot of laudable objectives as the conclusion of the meeting and hope that they can do better, that more can be accomplished in future meetings.”

Contact Raphael Baseman at raphael.baseman@student.shu.edu

Students Turn Violent In Protests Over Increased Tuition dent investigation to bring these criminals in front of a court to answer for their crimes.”

Only eight people suffered from minor injuries, and many arrests were made on the basis of trespassing and criminal damAn initially peaceful gathering turned into a violent protest age. Although their actions are considered criminal, the students as students in London did not intend criminal actions to attempted to invade the occur. building that houses Aside from the increase in tuition, Britain’s Conservative Party their anger resonates from broken on November 10. Anger and promises made by politicians they outrage over the rise in colhave previously trusted to support lege tuition fees from 3,000 them as college students attempting to pounds, approximately make a life for themselves amidst a equaling $4,800 in US doltroubled economy. The cuts were lars, to 9,000 pounds, or agreed to by both Conservatives and $14,500, united 50,000 Liberal Democrats alike, both sides demonstrators in the streets . announcing that their only option is to Considering 50 percent increase tuition and cut teaching of students cannot find suitgrants. able employment and the However, student’s hopes for a Courtesy of nationalpost.com change in these plans had previously increases are paired with a 40 percent cut in the money Students smash windows at the building of the Conservative Party been olstered by Deputy Prime in Britain while protesting raises in tuition fees. used to fund teaching at the Minister Nick Clegg,, member of the universities, students attempted to make their politicians aware Liberal Democratic Party. After deciding to instead side with they find the raise unacceptable. Aaron Porter, president of the Conservatives, he faced much criticism from fellow Liberal National Union of Students, said in a statement before the Democrats, and his constituents. Harriet Harmon, leader of the protest began, “We are taking to the streets in unprecedented opposition Labour Party, spoke harshly of Clegg’s choice. She numbers to tell politicians that enough is enough.” states, “In April he said that increasing tuition fees to 7,000 Unfortunately, students were unable to notify the govern- (pounds) a year would be a disaster…what word would he use to ment of their outrage without turning to violence. Protestors bat- describe fees of 9,000?” Undoubtedly, until changes are brought tled in the street with police, set off flares, threw eggs, and broke to the table, students will continue to denounce Liberal multiple windows. They eventually made their way to the top of Democrats in favor of tuition increases. the building where they proceeded to hurl various objects at the people below. Obscenities were painted on the walls, and the Contact Kaitlin Tonti at behavior was described by police commissioner Sir Paul kaitlin.tonti@student.shu.edu Stephenson, as “thuggish,” and in need of a “thorough post-inciBy Kaitlin Tonti, International News Editor

16

TUESDAY, NOVEMBER 16, 2010

THE STILLMAN EXCHANGE

International Business Can Yen Appreciation Spell “Game Over” for Nintendo’s Industry Dominance?

By Rachel Rosenstrock, International Business Writer

which are largely appropriated in US dollars and Euros, allow Nintendo to limit its transaction Japanese videogame company costs involved in the exchange of Nintendo Co. reported a net loss of 2.01 currencies. Using this diversifibillion yen ($24.8 million) due to the riscation to its advantage, Nintendo ing value of the Japanese yen and a can convert currencies that are decline in game console sales, marking strong relative to the yen. the company’s first interim loss in seven While suffering from years. current losses, Nintendo is The stronger Japanese currency, instead focused on long-term which is at a 15 year high against the dolresults. Appraisal gains and losslar, hurts all Japanese exporters by making es in its foreign currency their goods more expensive overseas. Photo courtesy of kotaku.com reserves have fluctuated back However, Nintendo’s case is unique due to and forth over the past few years. its large amount of foreign currency Higher yen prices have driven down Nintendo’s worldwide However, largely due to the reserves generated from overseas transacincrease in volatility of exchange profits and put the firm in a hole tions, accounting to almost 80 percent of rates, Nintendo President Satoru 54.23 billion yen ($657.5 million), this fig- Iwata announced at the company’s annual its revenue.

As the yen appreciates, Nintendo will ure is down almost 50 percent from the pre- meeting that “We may be at a point where continue to experience greater losses in vious year. we need to reassess the advantages and disNintendo uses this strategy in order to advantages of holding money in foreign reserves. This year, the loss has amounted to 62.1 billion yen ($754.3 million). While profit from higher overseas interest rates. currencies”.

Nintendo maintains an operating profit of The large stockpiles of foreign currencies, Lower profit margins are also the

Restaurant Monolith Takes a Bite Out of the Middle East

By Alexandra Hauenstein, International Business Writer If you are traveling to the Middle East you will soon be able to enjoy a taste of home, because Darden Restaurants Inc. recently announced that it has reached a deal with Americana Group, a franchise operator, to open 60 of its restaurants in the region.

Darden, owner of Olive Garden, Red Lobster, and LongHorn Steakhouse chains, sees the Middle East as an opportunity to expand.

“The Middle East is an attractive, growing market that has shown a strong affinity for American brands, especially American dining brands,” said Darden Chairman and CEO, Clarence Otis.

Americana Group, which will develop and operate the restaurants, is the largest food service franchise operator in the Middle East with more than 1,200 restaurants already, such as U.S. brands KFC, Pizza Hut, and Krispy Kreme Donuts. “Consumer demand for casual dining brands in the Middle East market has grown over the past decade, and we expect that growth to continue in the future,” said Americana Chairman and Managing Director, Marzouk Al Kharafi in a press release.

The restaurants are scheduled to open in countries such as Egypt, Lebanon, Saudi Arabia, and United Arab Emirates over the next five years.

This is not the first time that Darden has expanded outside of the United States. The company currently has five LongHorn Steakhouses in Puerto Rico, and twenty-five locations in Japan.

The decision to expand to the Middle East is interesting for a few reasons. One reason is that many American brands are downsizing because they have been hurt by the economy.

However, Darden reported that its fiscal firstquarter profit actually rose 20 percent.

It is also interesting because globalization is a factor conducive to terrorism. If extremists are resisting change, the spread of American restaurants could have a negative influence.

Contact Alexandra Hauenstein at alexandra.hauenstein

result of lower worldwide video game console sales. Nintendo DS sales fell 43 percent between April and September and Wii sales dropped 14 percent during the same period. In addition, the release of the upcoming 3-D handheld console has been pushed back until February, missing the year- end sales season. The company is instead pushing a special edition Super Mario Brothers Wii console and an enhanced Wii remote. In addition, there are a few hit titles that have yet to be sold overseas, which the company believes “could lead hardware sales strongly”.

Increased competition from Sony’s PlayStation Move and Microsoft’s Kinect system for the Xbox 360 will make it more difficult for Nintendo to stay profitable in the current economic environment.

Contact Rachel at rachel.rosenstrock@student.shu.edu

Britain’s FSA Takes Regulation to Mobile Phones

By Ben Canning, International Business Writer The Financial Services Authority in the U.K. has implanted a new rule that all investment bankers and traders will now have their mobile phone conversations recorded, in order to try and cut down on insider trading and market abuse despite opposition from banks.

Banks are complaining that these new regulations could cost them as much as £500,000 ($807,000) to record just 50 of their employees’ conversations. The FSA did not see enough merit in this complaint.

After the technology was released that allowed them to record, in addition to the repeated complaints from lawmakers that they had not been putting in enough effort to prevent crime, they felt compelled to put the new rule into effect. One spokes-

woman for the agency, Sarah Bailey, said that, “We expect the rules to increase the volume and quality of information available to us to use as additional evidence in insider trading cases.”

This new regulation is in addition to the rules that have already been in place that have required the recording of conversations on office land lines and the storage of business e-mails. The recording of mobile conversations has already proven to be effective, as it was a major part in bringing to justice an insider-trading case in the U.S. against Galleon Group LLC’s chief executive officer Raj Rajaratnam after officials had wiretapped his mobile phone with permission from the government.

The FSA is facing termination by 2012 and it is hoping to become a part of the proposed Consumer Protection and

Markets Authority.

FSA enforcement chief Margaret Cole maintained in a speech earlier this week that, “We continue to work to keep undesirable people out of our financial serves industry. We use information and intelligence from a range of sources to consider whether those who own or run financial firms, as well as people in sensitive roles within those businesses, are fit and proper.”

One of those new sources will now soon be the recording of mobile phone conversations and will be in effect as of November 14, 2011. Hopefully this move is carried out with sufficient effort so that the goals of shutting down insider trading can be achieved.

Contact Ben at benjamin.canning@student.shu.edu

Brazil Booms as U.S. Glooms

By Nicole Blackford, International Business Writer The Brazilian economy is doing surprisingly well while the U.S. is still trying to find ways to fix current economic issues such as unemployment and depreciation. What exactly is going on in Brazil?

Brazil’s economy has many factors on its side. The country is home to numerous industrial and manufacturing companies. In addition, the nation’s exports are continually increasing across the globe. Brazil ranks in the top ten countries in the world in regards to its GDP. Brazil is home to oil company Petrobras who recently launched a fiveyear investment plan for offshore drilling.

The Brazilian government will receive $43 billion in shares of Petrobras in exchange for giving the company permission to drill. This investment is expected to add to the country’s already booming economy.

Brazil’s currency, the Real, has also been on the rise last week. Since the end of the previous week, the Real has risen from $1.67 to $1.72. The currency is currently at a monthly high. This may seem

like an insignificant increase but it could be costly to those Americans, as well as other countries, who rely on generous imports from Brazil.

Not only is the economy in Brazil considerably booming, the nation’s unemployment rate hit a record low at 6.2

ment rate, employee wages have also been on the rise.

For most of the decade, Brazil’s unemployment rate had averaged over 9 percent. The current rate is only another advantage to the economy. The present labor market in Brazil is somewhat resilient. In fact, Photo courtesy of istockphoto.com millions of jobs have been created, which is doubtlessly a reason for the substantial decrease in the number of those who remain jobless.

Many of the recently published statistics have defied the predictions of economists. There is an Brazil’s Real is rapidly rising in value against the dollar optimistic view in percent in September. place for Brazil right now that many other According to an article published in governments are hoping to bring to their BusinessWeek, this is the lowest unem- own nations. ployment rate Brazil has experienced since March 2002 when the country first began publishing these statistics. Besides Contact Nicole at a substantial decrease in the unemploynicole.blackford@student.shu.edu