Obama raises troop levels in Afghanistan; pledges to remove troops by 2011. See p. 13
Is it unethical to make violent advertisements even if it’s for a good cause? See p. 8
Sofia Iqbal, Stillman undergraduate, shares how she capitalized on her four years at Seton Hall University. See p. 6
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China and H1N1: Interview with Dr. Yanzhong Huang By Amelia Snoblin, International News Writer When H1N1, more commonly known as swine flu, was first detected in April, 2009, it was clear this flu had the potential to cause major repercussions throughout the world. After being declared a global pandemic by the World Health Organization (WHO) on June 11, 2009, H1N1 became a fixture in the news and in the minds of the public worldwide. The United States has been extremely effected by the virus, where there have been an estimated 96,500 Americans total infected by a form of the H1N1 virus and 3,900 related deaths. President Obama officially declared H1N1 a national emergency in October, and the government launched a major advertising campaign promoting the vaccine. In China, however, the government’s response to the virus has resulted in a more dramatic attempt to stem the flow of H1N1 due to their population of over one billion. To date, China has reported nearly 92,000 cases and 53 related deaths due to swine flu. Despite the most aggressive measures taking place within the last few months, the response of the international community has been mixed towards China’s tactics. In an interview with The Stillman Exchange, Director of the Center for Global Health Studies at the John C. Whitehead School of Diplomacy and International Relations, Dr. Yanzhong Huang, noted there was a “shift in the strategy from containment to mitigation” in China’s policy towards H1N1. He also comments that while the measures appeared harsh to the international community, they were believed to have considerably stemmed the flow of the virus within the country. The repercussions on China were not slight, as Dr. Huang explains, “China also paid a heavy economic, financial, and social - even diplomatic cost for pursuing these measures.” At a time when domestic and international public image is important to China, these costs are very high. Domestically, the Chinese government needed to appear in control and on top of the virus, while internationally, it needed to take measures to show the world that it is caring about its people and changing its ways. Continued on page 15...
INDEX Money & Investing.............. 2 Stillman News...................... 6 Ethics ................................... 8 Editorials ............................. 9 Sports................................... 10 Domestic News..................... 13 International News.............. 15 International Business........ 16 Front cover images courtesy of Rachel Ressler, Assistant Editor
TUESDAY, DECEMBER 8, 2009 - VOL. 6 NO. 6
Dubai’s High Ambitions Yield High Costs By Laura Russo, International Business Writer Two months after Dubai’s largest developer, Dubai World, was lacking investments for continuing progress on luxury hotel projects, the company announced on Thanksgiving Day that it was asking banks for a six-month suspension period
ment, and luxury in the Middle East. Once a small fishing village, Dubai is now home to the tallest skyscraper, a man-made island, and the most exclusive hotel in the world. The rapid development has now come to a fast stop. The Dubai market fell 7.3 percent in one day, and with its request to postpone debt payments, Dubai World’s
and analyzing its funding needs. This announcement has calmed some of the world’s fears. “The United Arab Emirates is a strong resource-based economy and we welcome today’s announcement by the central bank of the UAE making available to banks a special additional liquidity facility,” said a statement from the International Monetary Fund.
for its debt payments, totaling $59 billion. This announcement quickly instilled fear of instability among the global markets; London, Paris, and Frankfurt all dealt with their markets entering a rapid downturn. With Dubai’s investors coming primarily from Europe, they were affected the most by the concern that the value of their loans would become worthless, especially if Dubai is forced to default on its payments. Dubai, one of the seven states in the United Arab Emirates, enjoyed worldwide praise and encouragement for its development into a hub for business, entertain-
economic instability worries the global markets that had investments in the company’s project. Europe especially felt the sudden effects because their loans to the emirate world could lose significant value. Banking stocks immediately fell, and prominent financial establishments such as HSBC Holdings, Royal Bank of Scotland, Barclays, and Deutsche Bank saw their stocks take an average 4 percent loss. On December 1, Dubai World announced its proposed restructuring process, including commitment to stockholders, maintainable profit, selling assets,
The United States had modest stock gains after the recent news. “Sentiment is being sweetened by waning concerns about Dubai's debt situation and a plethora of mostly positive economic data around the globe,” said analysts from Charles Schwab. In the case of the U.S. dollar, it appears that investors are currently weary of overanalyzing Dubai in connection to domestic markets, and have not yet moved the market based on this news.
Endorsers Cut Putter Sponsorships By Robert Szeluga, Sports Business Writer The current state of the economy has taken a toll on non-elite golfers. Players are becoming forced to accept steep cuts in endorsement deals, costing them hundreds of thousands of dollars in salary. The majority of an average golfer’s offcourse income consists of playing with a company’s clubs or wearing its logos, and in corporate deals that include apparel brand-
ing, appearances, and image rights for marketing. Golfers depend on such endorsement deals, as income is based on tour winnings rather than a set deal, where players of other sports are guaranteed money before stepping onto the playing field. Agents now expect equipment companies such as Nike and Callaway to cut spending anywhere from 15 to 30 percent from last year. Companies are also moving away from “full staff” equipment deals, meaning players will no longer be offered a full package of equipment (drivers, balls, bags, etc.), but rather individual items. Callaway experienced a number of significant cutbacks and resigned only a small number of players, one being Phil Mickelson who signed a five-year extension
Continued on page 16...
with the company earlier this year. Small equipment companies such as Nickent, which closed in November, are cutting endorsements as well. Corporate sponsors are also cutting back, as deals with more incentives and fewer guarantees are being made. Group deals are becoming more popular as well. Dennis Blake, a representative of several players ranked in the top 100, recently did a deal with Breitling watches for three of his players, including 2009 U.S. Open runnerup Ricky Barnes. “Group deals are going to become more abundant because we can package players together and reduce risk regarding injuries or inability to play on the weekends,” Blake said. Continued on page 10...
TUESDAY, DECEMBER 8, 2009
Money & Investing
NEWS BRIEFS • In President Barack Obama’s speech on Tuesday, December 1, he discussed different ways to improve that job market and the economy. He is also proposed incentives for small businesses that hire new employees and financial support to improve infrastructures by building bridges and roads. • Senate Republicans forced Democrats to cut billions of dollars from in-home care providers.
Two Weeks in Earnings Date Company 12/15 Adobe Systems Best Buy Co., Inc. 12/17 FedEx General Mills, Inc. Nike Pier 1 Imports, Inc. Rite Aid Corporation 12/21 ConAgra Foods Walgreen
Symbol ADBE BBY FDX GIS NKE PIR RAD CAG WAG
EPS 0.37 0.42 0.84 1.43 0.71 (0.05) (0.18) 0.47 0.48
Earnings Stock to Watch: Nike, Inc.
• Unemployment rate drops from 10.2 percent to 10 percent. The government also said far fewer jobs were lost in September and October than first reported.
Graph courtesy of Yahoo! Finance
• North Korea has ordered its border guards to open fire on anyone who crosses its border without permission. This is thought to be in response to the recent currency reform.
Citigroup Looks to Take Off TARP By Scott Giveans, Money & Investing Writer Citigroup has planned to repay its TARP money, but there is just one problem: the government is not sold on Citigroup’s plans. The U.S. Treasury Department has refused to sell its 34 percent stake in the company, which would allow for the board members to sell stock to raise money for repaying the funds. The ailing bank has been looking for ways to put the talks of bad trades in mortgages and credit default swaps behind it, but has been unable to come through given the government’s position. As things stand, Citigroup appears to be the only bank that will fall victim to Treasury paymaster Kenneth Feinberg’s compensation reviews, something that most certainly has executives worried. The list of companies already under his watch is a star-studded cast of who not to model a
company after, including Chrysler and General Motors. Feinberg has already put pressure on Citigroup’s executives before, with a 70 percent decrease in the salaries of the company’s top 25 employees in the last year. Still, the question remains when the government will decide to repay the money. Right now, with the ability to continue to regulate compensation of Citigroup’s executives, it seems like the Treasury will maintain its position for the foreseeable future. Citigroup has struggled to find an identity behind its After all, with a position in a company name in the wake of the TARP funding it has received, and the ability to adjust its executives and the public’s hesitance in investing with the bank. pay, it practically lets the government control its $20 billion investment hands-on. the company will have to find a market for Citigroup will still have to go through the billions of dollars in stock it would sell. additional trials and tribulations to get Either way, Citigroup and the Treasury are itself free of governmental control after far from cashing in on their stake in this paying back TARP funds. First, Citigroup shotgun marriage. Contact Scott at will have to free itself from over $300 firstname.lastname@example.org lion in government asset guarantees. Next, Graphs courtesy of Yahoo! Finance
This Week’s Online Poll Poll Question: Where did you shop for Christmas? A: Online 8% B: Wal-Mart 15% C: Other 5% D: Online and in store 72% Thanks for answering online at www.stillmanexchange.com!
Black Friday Champion vs. Cyber Monday King
Last Week’s poll results Poll Question: Has Sarbanes-Oxley worked? A: Yes, companies are more honest 9% B: Yes, but not for all companies 19% C: No 46% D: Maybe 26%
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Bernanke Blunders, Governmental Troubles, and All in Between By Kyle Connell, Money & Investing Writer Federal Reserve Chief, Ben Bernanke, ran into a tree after tripping over a fire hydrant on Capitol Hill in what appeared to be an escape from his confirmation hearing with the Senate Banking Committee on the morning of Thursday, December 3. The seven year veteran as chairman of the central bank was scheduled for confirmation of another four year term after receiving a re-nomination from President Obama back in August. A neighbor of the Capitol Building, who made the 9-1-1 call, discovered him semiunconscious at the feet of a quiet Senator Chris Dodd, Chairman of the Senate Finance Committee, holding a gavel. Dodd supposedly used the gavel to free Bernanke from the limbs of the tree he had run into. Bernanke was immediately taken to the Howard University Hospital after reportedly sustaining various lacerations to his self esteem. The hospital released him later that same day with a joint statement from both the hospital and Bernanke’s staff, which stated that he was “in good condition.” Questions like why he was running from the building and why his self esteem lacerations are not consistent with the type of injuries from a running-into-a-tree accident that occurred surround the mysterious collision. Speculation and rumors have clogged the internet and the nation’s most trusted news sources. Most revolve around the Senate Banking Committee discovering that Bernanke mishandled the financial crisis with delayed actions and Wall Street bailouts. Allegedly, after this discovery, the entire committee, including long time Bernanke supporter, Senator Dodd, engaged in concentrated harassment, lacerating Bernanke’s self esteem and forcing his quick exit from the hearing, ending with a fire hydrant and a tree outside. The Washington D.C. Metropolitan Police Department has been handling the investigation of the situation. As it was just a pedestrian accident though, the MPDC cannot force him to give a statement in regards to the events. Since the hearing and subsequent crash, Bernanke has canceled three separate meetings with MPDC investigators. He has, however, released one ambiguously worded statement on his Federal Reserve website commenting on transgressions he made and his let down of the United States economy. At the current time, it looks as if Bernanke will miss his own Federal Open Market Committee meeting on December 15 and 16 in an attempt to save face with the public. With these major public relations issues though, the number one Federal Reserve banker is struggling to handle this rapidly intensifying scandal. Most recently, the economies of France, England, Belgium, and Sweden have come forward to claim Bernanke’s mishandling their economies as well. New revelations continue to creep into the public domain daily. Luckily though, the United States has no other important matters to worry about, so the entire country can focus on drowning in this story for at least another month and a half. Contact Kyle at email@example.com
All information contained in this publication is not intended to substitute for the advice of a professional financial planner. It is meant only for informational purposes. The Stillman Exchange assumes no liability for any investment losses incurred as a result of information provided in this publication. Readers should consult a professional financial planner.
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Saab Deal Falls Through Between GM, Koenigsegg By Jazzmyne Morrison, Money & Investing Writer Recently the European car manufacturer Koenigsegg has decided to not go through with the deal to acquire Saab from General Motors. This decision by Koenisgsegg was not anticipated and puts a shadow over the future stability of the company. The last minute decision by Koenigsegg makes the small brand the second General Motors unit to fall through on its expected sale. Unfortunately there have not been too many details released to the public on this broken deal. General Motors released a statement saying the deal was “terminated at the discretion of the buyer.” It is obvious that General Motors President and CEO Fritz Henderson, is very disappointed about what has happened so unexpectedly. Henderson explained to the media that “Many have worked tirelessly over the past several months to create a sustainable plan for the future of Saab by selling the brand and its manufacturing interests to Koenigsegg Group AB. Given the sudden change in direction, we will take the next several days to assess the situation and will advise on the next steps next week.” It seems that Koenigsegg had intended to obtain Saab, including its 9-5 and 9-4x models from GM hopefully by the end of this year. Nevertheless, rumor points to the lack of ability that Koenigsegg may not be able to get a loan from the Swedish National Debt Office and the European Investment Bank. Koenigsegg has said in a recent statement that “The time factor has always been critical for our strategy to breathe new life into the company, Unfortunately, delays in closing this acquisition have resulted in risks and uncertainties that prevent us from successfully implementing the new Saab business plan.” It is quite unclear as to what General Motors is going to do about this sudden break turn of events. This situation compares strongly to the recent decision to close the Saturn brand after its unsuccessful purchasing agreement with Penske Automotive. A full closure of Saab would be more complicated than the Saturn brand. This is in part because of the unit’s comparatively self-sufficient position within the Detroit automakers umbrella. An anonymous source notified the Wall Street Journal that General Motors is really considering scrapping the brand completely. Whether that will be enough to save the struggling company remains to be seen. Investors seem to want a move to happen with Saab soon though, as recent market performance in the automotive industry is improving. Companies like Ford, Daimler and Toyota have seen significant increases in recent months, as previous strong selling pressure is leveling off towards a bullish sentiment. Although a deal for Saab would not change the face of the automotive industry, it would help to mask some of the difficulties still happening in Detroit and the U.S. car market as a whole. At this point, General Motors would take anything to help stop the bleeding from its failing entities.
Contact Jazzmyne at firstname.lastname@example.org
TUESDAY, DECEMBER 8, 2009
Comcast Takes Control of NBC; Possible TV Subscription Price Rise By Bryan Murawski Assistant Editor Comcast (NASDAQ: CMCSA), the nation’s largest cable-TV provider took control of NBC on Thursday, December 3. This merger is not only a large corporate deal, but the largest media merger of the decade. The merger will affect the way viewers watch news, entertainment, and sports. The changes will be both good and bad for television audiences around the country. The merger will allow for a wider variety of TV choices, more programming on cell phones, lapops, and other mobile devices, as well as quicker access to movies. Many TV viewers have been asking for these changes for years now. However, with a larger library of features, larger monthly cable bills are likely to follow. Many viewers might happily accept the higher charges in replace for more convenient features. Viewers could quickly receive their favorite TV shows on mobile devices as part of Comcast’s plan to provide programs whenever wherever. As for movie fans, Universal Pictures films could get to cable immediately, meaning those trips to the theatre might soon come to an end. Comcast’s deal with NBC cost it $13.75 billion. That huge chunk of change is possible because of the span that Comcast reaches. Comcast serves a quarter of U.S. households that pay for television service. With NBC now controlled by Comcast, it brings to the table many other program options that NBC had prior to the merger. Among these are the Spanish language
Photo courtesy of Informitv With this latest acquisition, Comcast’s CEO Brian Roberts has taken the largest cable televesion provider and turned it into a rival for the Walt Disney Co. and Time Warner.
channel Telemundo, two dozen cable channels including USA, Bravo, and SyFy, regional sports networks, and Universal Studios and its theme parks. The goal for the two combined companies is to control both conduit and content. This idea is not a new one in the industry. In 2000, the AOL-Time Warner merger failed on their plan to achieve the same thing. A deal this large is bound to find some people speaking out against it. "The combination of the country's largest cable company, a TV network, a movie studio plus sports networks could present grave dangers to a free and open Internet," warned Gigi Sohn, president of the advocacy group Public Knowledge. “A vertically integrated entity like that naturally wants to favor its own content.” Comcast would have enormous power over who gets what programming and at what price, she said. Not only will Comcast users possibly see a difference with their bills, but many
other subscription-TV customers will too. Once Comcast controls NBC Universal, all competitors such as Verizon and DirecTV will have to negotiate with Comcast for how much they have to pay to carry well established NBC channels. Not everyone is worried, some people like Dave Lougee, president of the broadcast division of Gannett, which owns the KUSA-TV station in Denver are staying optimistic. “I do think in general this is a good thing for NBC,” he said. "GE had an enormously successful run, but times have changed. Comcast is a smart and strategic company. They will be a good steward of NBC. They will focus a lot on improving the entertainment side of the network that is now challenged.” The deal, he said, “will allow them strategically to stay strong in sports.” Sports is a huge focus for the broadcasting giant, and why should it not be? Comcast and NBC might create competition for ESPN. ESPN and ABC have combined forces for its sports broadcasting. This new competition from NBC and Comcast will greatly benefit the consumer. Comcast has called its recent move “pro consumer” because it will now be able to offer a more broad selection of entertainment choices. However, we may soon come to realize that this “pro consumer” move may come at a price. Time will only tell if that price will be worth paying for TV access that the consumer has come to expect from its provider.
Contact Bryan at email@example.com
Cyber Monday Sales Outpace Black Friday Figures By Li Duan, Money & Investing Writer Oil prices remain unpredictable for the near future. Two main components contribute to this lack of certainty on the direction of oil prices: a weak dollar creates upward pressures while weak demand and abundant supply create downward pressures. Although oil prices have increased from a low around the mid-30s last December to the mid to high-70s now, it is uncertain whether or not this growth will continue. The constant weakening of the U.S. dollar generally results in higher commodity prices due to a decrease of the greenback’s worth relative to other currencies; this lowers its purchasing power. The contributing factors that determine the value of a currency reveal a dollar that will continue to decrease. The U.S. dollar is trading at its lowest point since March. It is also trading at near 16-month lows. This is brought about by a trade deficit that continues to increase, a widening budget gap and low interest rates enacted by the Federal Reserve. Furthermore, the greenback is seen as a safe-haven currency that is dependable when there are significant negative economic reports. Recently, this has not been the case and financial markets have recovered, reversing the trend and creating lower demand for U.S. dollars and appreciation for the euro. Since there are no signs these contributors to a depreciating dollar will cease, oil prices will continue to experience upward pressure from a weakening dollar.
Graph courtesy of CME Group
However, the demand for oil also seems to be weak. Stockpiles of U.S. crude oil are at nearly 340 million barrels as inventories significantly beat analyst estimates by 1.3 million. According to the Wall Street Journal, this data suggests that oil inventories are “on target to be at the highest level at the end of November since 1994.” Gasoline inventories are also at their highest levels since November 1994 given a rise of four million barrels, a significant increase over the expected 700,000 expected by analysts. U.S. oil consumption is also at its lowest point for November since 1995, averaging just 18.491 million barrels a day. Intraday futures contracts on December 4 showed light crude-oil futures for January delivery trading on the New York Mercantile Exchange at around $77 per barrel, down from the $82 dollar highs experienced on October 21. Futures markets show a gradual increase in oil prices month-tomonth, revealing the relative stability of oil prices given the additional risk of longer-
term contracts. The International Energy Agency expects global demand for oil to decrease by 1.5 million barrels a day. OPEC continues to be content with their current output quota. They recently stated, “Right now we see that the price is OK. It is between $75 and $80 ... close to the target we have set”. A substantial increase in oil prices is not likely unless economic activity picks up. The 10% unemployment rate will continue to put downward pressures on oil prices as the jobless keep demand at record lows and inventories at record highs. Some analysts believe the range for oil prices will remain between $75 and $82 a barrel in the near future. Others are not as sure whether or not oil prices will trend upward or drop further. Changes in oil prices will continue to be dependent on adjustments to the value of the dollar and U.S. demand. Contact Li at firstname.lastname@example.org
TUESDAY, DECEMBER 8, 2009
Money & Investing
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Obama, Gingrich Head Jobs Summits for Recovery By Chad Giganti, Money & Investing Writer At the Jobs and Economic Growth forum last Thursday, December 3, President Obama gathered union leaders, small business owners, economists and 130 corporate executives to ask for fresh ideas on creating job growth. This summit focused on discussing and devising new ideas for job creation that are both quickly implementable and cheap. Among those discussed were tax credits targeted at businesses expanding payroll and research and development, a “cash for caulkers” plan that gives homeowners and businesses an incentive to make buildings more energy efficient, and using the extra money in the Troubled Asset Relief Program to fund these new ideas. This meeting has been met with open skepticism, some because the Chamber of Commerce and the National Federation of Independent Businesses were not invited, others because a public forum for job creation suggestions combined may have an adverse affect on American confidence, and still others because they believe the end result of any Obama Administration event is more taxes and deficit spending. Republican Newt Gingrich, former speaker of the House, held a rival jobs summit on
the same day in Mississippi, cent in the fourth quarter of 2010 and one he called “the real jobs above 7 percent in the fourth quarter of summit”. 2011. Some of the ideas proAs for more deficit spending, different posed were maintaining a baljobs bills are being formulated in anced budget, developing more Congress with just that intention. When domestic energy sources, and asked about why the first stimulus bill lowering or eliminating a numwas not addressing this issue, ber of taxes that may hurt Democratic Representative Raul smaller businesses from growGrijalva stated, "I think when we did the ing and hiring. first stimulus bill, it was a shotgun These tax cuts would approach. Jobs were a secondary considinclude a 50 percent reduction eration. This next round -- it has to be in Social Security and Photo courtesy of Newt Gingrich about job creation.” Medicare taxes, lowering taxes As for his concern about the deficit, on capital gains to zero percent, Newt Gingrich held a separate jobs conference, a self-pro- Grijalva later stated, “When I went back eliminating the estate tax and claimed “real jobs summit” to get to the root of unemployment. home, I didn't hear that much about the lowering corporate taxes. deficit. I heard about foreclosure and employed by between 600,000 and 1.6 milCritics of the American Reinvestment lion compared with what those values unemployment.” and Recovery Act, like former Senator would have been otherwise” . While many congressional officials are Gingrich, say the stimulus bill is not workworried about the climbing debt, Senator Yet unemployment at 10 percent, down ing, and others are even saying it is making 0.2 percent from October, is still much too Patty Murray summed up the feelings of things worse. high and GDP growth, at 2.8 percent, is not most Democrats with, “Obviously, you have However, according to the non-partisan high enough to foreshadow the rapid job to have a strong economy in order to deal Congressional Budget Office, the stimulus growth desired by the entire country. with the debt.” The question that needs to bill is working. In a recent end of Nevertheless, the situation could be worse. be answered is: When will debt be too high November report the CBO stated that, in the Most economists believe unemploy- to be paid off? third quarter of 2009, the stimulus bill has ment has just about peaked and will start a “raised real GDP by between 1.2 percent long gradual descent between now and the and 3.2 percent, lowered the unemployment first quarter next year; the Federal Reserve’s Contact Chad at rate by between .3 and .9 percentage points, Open Market Committee puts the unemChad.Giganti@student.shu.edu and increased the number of people ployment rate at somewhere above 8 per-
GM Still on the Fritz; CEO Out By Stefano D’Urso Money & Investing Writer On Tuesday, December 1st, General Motors Chief Executive Officer Fritz Henderson resigned after the board of directors came to the conclusion that he had not done enough to repair the finances and culture of the historically-largest U.S. automaker. Since the company emerged from bankruptcy one hundred days ago, the board felt that Henderson failed to make sufficient progress, and they did not want to wait around any longer to see what could happen. Henderson had only been at his position for eight months, and although it was a mutual decision by both he and the board, it still came as somewhat of a surprise. Henderson was a contributor in working to get GM out of bankruptcy, and was personally endorsed by President Barack Obama. The board handed Henderson a written report of the hundred days that he
Photo courtesy of GM
Fritz Henderson, former CEO of General Motors, speaking days before his resignation at General Motors. had been in power post-bankruptcy and the results just did not show the board enough to retain him. Although Fritz Henderson did make some progress, there was a long line of poor decision making that ultimately led to his downfall. He appointed GM insiders to key executive positions, failing to bring in fresh blood for the revamp was against both the board and governments wishes. Henderson received more poor publicity
after an ad campaign went sour which led to a cancelled eBay sales experiment. The ceiling is said to have caved in when deals to sell Saturn and Saab fell through, citing a lack of resources by GM as the deal breaker. Henderson was also under pressure to return GM to profit after more than $88 billion in losses since the end of 2004. GM’s 2009 U.S. sales through November tumbled 32 percent, and its market share was 19.8 percent, down from 22 percent a year earlier. Replacing Henderson atop General Motors on an interim basis is Ed Whitacre, former AT&T CEO and current GM board chairman. Whitacre said that he does not plan on being the chief operating officer for a long time, as the search for a replacement has already been underway. Despite Whitacre’s comments, the job search will most likely be a long process due to the fact that salary for the position is restricted under the Obama Administration’s “compensation czar”, which limits the pay of top executives across the country. One possible executive candidate is current Vice Chairman Bob Lutz. While certainly an industry insider, Mr. Lutz has spent time at all three Detroit automakers and thus is not considered old blood. He is known for his vocal and blunt style that has at times run him into trouble, but has also earned him many fans. Now what about General Motors? GM is cutting its U.S. brands from eight to four, keeping the Chevrolet, Cadillac, Buick and GMC brands. In addition to ending its affiliation with Saab, GM is winding down Saturn and Pontiac and has a deal to sell Hummer to Chengdu, a China-based auto company. General Motors has played a prominent role in American society dating back to the 1900s. It is sad to see a company deal with financial woes like this, but it is only a sign that maybe we have to take a look at all of our American companies, for they are performing far below the global bar. Contact Stefano at email@example.com
Cyber Monday Taking Hold; Sales up 13.7 percent By Shant Morkosian, Money & Investing Writer Sales for post-Thanksgiving online shopping were up 13.7 percent this year compared to last year’s Cyber Monday according to Coremetrics. Cyber Monday sales were also 24.1 percent higher than sales on Black Friday. It was evident that online shoppers appeared willing to spend more money where the average Cyber Monday shoppers spent nearly $180.03 per online order which was up approximately 38 percent from the 2008 level where the average consumer spent $130.24. Cyber Monday shoppers also bought nearly 30 percent more items per order compared to last year’s Cyber Monday and nearly 10 percent more items than this year’s Black Friday shoppers. One reason why online buying momentum has been positive is because consumers are looking for the best deals on the internet and are going online for the most convenient way to shop especially with free shipping promotions available. Apparel and jewelry retailers enjoyed the largest increase in the average dollar amount consumers spent per online order. Apparel was up 26.4 percent while jewelry was up 14.3 percent. Department stores had a 33 percent increase in customers this year compared to last year’s Cyber Monday. According to the Wall Street Journal, there were numerous websites that had record sales on Cyber Monday including handbag retailer EBags Inc. who had an increase with 55.5 percent with Cyber Monday sales compared to last year’s Cyber Monday sales. A survey conducted by the National Retail Federation’s Shop.org, found that 96.5 million Americans planned to shop online on Cyber Monday this year. This figure was also up from 85 million last year. Consensus analyst opinion believes that Black Friday spending was up only 0.5 percent over last year. 23 million more shoppers participate in Black Friday but may spend less perhaps because they need to look at the products in person before buy-
ing them online. Companies like Amazon (NASDAQ: AMZN) had traffic on Cyber Monday which was up 44 percent compared to last year. Apple’s (NASDAQ: AAPL) traffic was up 71 percent over last year. Amazon attracted 15 percent of the total traffic on Cyber Monday. Amazon announced its wireless Kindle e-reader was the best sell-
Photo courtesy of CNN
With a higher number of retailers offering deals online, scenes like this are becoming less frequent on Black Friday. ing item across all of Amazon’s product categories on Cyber Monday. Other hot sellers on Amazon were the Apple’s 8GB iPod Touch for $158 and the hugely popular Zhu Zhu pet hamsters with a retail price of $9.99. In North America alone, approximately an average of 4.3 million consumers-perminute visited shopping websites throughout the day, according to Akamai which tracks traffic trends for many companies. They announced traffic peaked the most around 9:30 p.m. ET which reached 5.1 million visitors per minute. With the increased amounts of consumers finding their holiday wish lists online, stores now have a different method for capturing sales. Although sales have dropped with the recession in the last year, the strengthening online markets, coupled with decent sales on Black Friday, have left retailers optimistic about the future outlook on sales. Contact Shant at firstname.lastname@example.org
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Money & Investing
AOL Spinoff Fires Up New Hopes in Company By Ian Mehok, Money & Investing Editor One of the worst, or at least most laughable, marriages will end on Wednesday, when Time Warner finally cuts loose its floundering AOL branch. The move, officially slated to hit Wall Street the next day on December 10, will see Time Warner stockholders receiving one share of AOL for every 11 shares of Time Warner owned, and will result in 105.7 million shares outstanding of the Photo courtesy of AOL
Time Warner will cut loose its AOL branch on Wednesday, December 9. AOL has hired former Google employee, Tim Armstrong, as CEO to help lead the company afterwards.
new spinoff. Disaster was almost inevitable for Time Warner and AOL, as the popular entertainment company merged with AOL, and almost instantly began writing off goodwill associated with the AOL brand name. At one point, over 99 billion dollars in goodwill was written off of the company, the largest write-off of goodwill in history at that point. As the struggles at AOL continued, the spinoff became the only reasonable course of action for the company. To spearhead the maneuver, AOL hired former Google employee Tim Armstrong as CEO, and began work on a new “brand identity,” according to Armstrong. That brand identity will take shape even more on Wednesday, when Armstrong plans to release the official
AOL model at an analyst meeting in New York City. From that point, the plans already in place will begin to take shape. First, AOL has plans to increase its content to users online. In recent months, according to numbers provided by AOL, the staff of writers embedding content on AOL’s news site has increased from 500 to over 3,000, a number that could rise based on Armstrong’s full plan. By far the hardest part of restructuring the company will be convincing investors that AOL will not burn them again. To execute this plan, Armstrong is working with his staff on creative ways to “reintroduce” the brand identity of AOL. According to Bill Wilson, content chief of AOL, the infamous logo may not even be placed on all the sites. Rather than just promoting a site with their logo, Wilson wants the company to “begin to see a more consistent effort to promote the AOL brand on the sites themselves”. This could involve slowly bringing back the AOL name through the building of content, something targeted by the staff additions. The main determining part of the plan could come in a somewhat ironic twist, as AOL is looking to innovate in social media. Although Armstrong failed to elaborate in depth about any of his plan, he mentioned the need for AOL to focus more on social media, something AOL began more than a decade ago with the start of instant messaging. With the failure to innovate after that point though, AOL fell out of graces in the ever-changing internet business. Soon, the company became a laughable choice for any of its core services, and only has recently begun moving into the content business, the one dominated by the Yahoos and Youtubes of the world. Now, with a new platform, it is time to see if Armstrong can bring AOL back, or if the spinoff is just a way for the company to fall faster. Instead of being the first one on the block, as it was twentyfive years ago, AOL now has to beat the best at their own game. Contact Ian at email@example.com
TUESDAY, DECEMBER 8, 2009
The Age-Old Debate: Renting vs. Buying By Scott Giveans, Money & Investing Writer “If you rent, you’re throwing away your money.” “Owning your own home is a forced savings plan.” “Home ownership is an excellent path to build wealth.” No matter who you are you have probably read or heard about one of these phrases in terms of the renting or home owning. There are a number of perceptions of the real estate market that exist, but not all of them are true. Here are the realities of the common misconceptions. “If you rent, you’re throwing away your money.” Chances are if you have rented in your lifetime you have heard this phrase. The
Percentage towards interest
common notion is that if you rent, you the money that you spend each month in the form of rent is being wasted. After all, any improvements or little touches you had to your place is wiped away when you move. So in essence any improvements made will not see a return on investment. While it may be a little extreme to say your money is being thrown away entirely because you are receiving the service of having a place to life. Nevertheless if we look closer at buying a home you will see there is a lot of money “thrown away” too. When you buy your
home and buy your mortgage, a majority of that money, especially early on, goes towards interest. Not until years 16-20 of a typical 30-year fixed mortgage do you begin to even start paying off more principal than you do interest. “Owning your own home is a forced savings plan.” Owning a home is a forced saving plan, yes, a good one, no. Sure if you own a home some of the money you spend on your monthly mortgage, you will see when you go to buy the home. The key is some money because as we say before, a majority of equity is not built until the second decade of owning a home. If a person chose to rent, instead of spending the money on interest, the “saved” money, the difference between renting and owning a home, could be put into the stock market which typically has a better return on investment than owning a home. And the only way to see any of this savings plan is to either sell your home or refinance, with option just beginning the process of “throwing” money away again. The investment is not liquid and can be put in much more profitable forms of securities. “Home ownership is an excellent path to build wealth.” If I had the choice I would prefer to be rich as opposed to wealthy. Owning a home can make you wealthy which means having a lot of value in illiquid assets. You can be as wealthy as can people and own a number of homes, but it does not mean anything if you cannot pay your lunch bill because you have no money on hand. Being rich means having on hand to do what you want, when you want. In order for home ownership to be a superior form of building wealth, real estate markets would have to see double digit increases in order to outperform the stock market. And if we have learned anything from this current housing debacle it is that the days of the housing bubble are gone and get rich-quick schemes in real estate are things of the past. Contact Scott at firstname.lastname@example.org
The Stillman Exchange Company of the Year: Google By Christine Wotton, Assistant Editor Google has had an impressive year looking back since January 2009. Google’s (NASDAQ: GOOG) stock has grown from $307 to $585 as of December 4th. At the rate they are launching new services, products and ideas there seems to be no stopping point in the future for Google. These are the nine things that Google has introduced in the past year and what we have to look forward to next year. First we have the new Google Chrome OS, an operating system that Google will release in the second half of 2010. It is aimed mostly for netbook users that spend all their time on the internet. There is a minimal user interface and Chrome OS is geared to making the most of the internet experience. Google Android, is the platform that Google had developed for mobile devices. It is designed to rival the most popular platform which it currently the Apple iPhone. Google bought the startup company Android Inc. in 2005 and since then have been working to the release this year. Google Wave, is an online tool used for collaboration. It is a real time way to work on
a document Photo courtesy of Google Wave. and chat at the Google same time. Voice, is a Wave features application voice tools, that features maps, and voicemail, looking to inteconference grate with procalling, and grams like other voice MediaWiki. It communicais currently tions. Users available by get a phone invitation only. number and a With the new Google Wave, users can integrate all types of social G o o g l e media into one convenient window, shared with any Wave-using mailbox. It Latitude, it was previouscontact. joins Google ly Grand Earth, Moon, Mars, and Sky. Latitude was Central until Google bought it. It is also released in February 2009, and allows peo- invitation only. ple to be tracked based on Google Maps. Admob, is a service that distributes ads Users are tracked by their mobile phones on mobile devices. Google bought it for and can shut off the tracking application and $750 million in early November 2009. It restrict who sees where they are. will be integrated into Android which is Google Docs, is Google’s venture into Google’s platform for mobile devices. the world of cloud computing. Google Docs Gizmo5, is a voice over IP (VoIP). It is also allows users to keep documents online and the only Session Initiation Protocol (SIP) allow others to modify them to end up with service that can be used with Google Voice. a collaborative product. Google has also On November 12, 2009 Google announced included helpful templates. It will soon be that it bought Gizmo5. taken out of its current Beta version. Google DNS (Domain Name System) resolver, has expanded on this to create Google it has been released by Google in December
2009. The DNS resolver will allow for users to connect to a webpage faster. People on the internet perform hundreds of DNS lookups every time they are on the internet. Some pages need multiple lookups and this can slow down the internet. Google thinks that its DNS resolver will be the solution to this problem but it has some issues with security. Since Google’s creation in January of 1996, it has become an internet staple. Google was named by misspelling “googol” which is the name for ten to the power of one hundred. It is currently in the dictionary as a verb for the act of searching something on the Google search engine. Now, there is no mistake about what people are looking for when they look to “Google,” and hardly anyone would question the company’s choice of words, let alone anything else. With the new waves Google is about to make, coupled with its previous innovations, it is a great choicee for the company of the year. Look for major innovations that will vault the company into 2010 and beyond, on top of those that are already on the market. Contact Christine at email@example.com
TUESDAY, DECEMBER 8, 2009
THE STILLMAN EXCHANGE
Senior Sofia Iqbal: Leading the Way One Venture at a Time for students to attain during their undergrad years. Companies are seeking to recruit students who show evidence of having leadership skills. Excelling academically by having a stellar GPA is not enough; you should show dedication outside of the classroom as well. Leadership is not necessarily about being elected or appointed to a position. Rather, leadership is an attitude developed over time and requires demonstrating initiative. I believe that it is important to get involved and continuously challenge yourself. Also, you should seize every opportunity, even if you never envisioned yourself taking on a particular role.
By Beverly Makarios, Assistant Editor Sofia Iqbal has proved to be an excellent student, displaying influence in her studies as well as the various leadership positions she holds. Majoring in finance with a minor in Legal Studies, she is a Resident Assistant, the President of the Phi Alpha Delta, Leadership Development Honors Program, and a member of National Residence Hall Honorary. She studied abroad during Seton Hall’s first Doing Business in Egypt trip, and currently interns with Prudential under their investment division. In the following interview, Sofia shares the importance of leadership roles, her interests in banking and financing, as well as her post-graduation plans. Beverly Makarios: As President of Phi Alpha Delta, what would you say are the gains of becoming a member of this organization? Sofia Iqbal: The Pre-Law Chapter of Phi Alpha Delta at Seton Hall works very closely with St. Thomas More Pre-Law Society in providing students with an opportunity and supportive environment to interact with others interested in law. Together we plan and execute events aimed at helping students decide whether a legal career is right for them and assisting in planning for law school. We take trips to visit law schools; host LSAT prep sessions with Kaplan and Princeton Review, and have law student panel discussions and attorney guest speakers. As a member of P.A.D., one becomes part of an extensive network of pre-law students, law students, legal educators, attorneys, judges and government officials.
Photo courtesy of Tiffany Dindial Sofia Iqbal displays admiral determination as she will head steadfastly toward an opportunity infused career with the Office of the Comptroller of the Currency.
Also, P.A.D. members are eligible for numerous discount programs including costly LSAT prep courses. Leadership the Through BM: Development Honors Program, Richard Smith, former President of Chubb Insurance, has served as your mentor. What are your three most valuable takeaways from your Junior Mentorship Project with him? SI: The Leadership Development Honors Program has provided me with a lot of learning opportunities. Dick Smith has been a great mentor and also serves as the councilman of the Leadership Council. As part of my Junior Mentorship Project with the guidance of Dick Smith, I chose to research the lives of two outstanding women, Indra Nooyi, CEO of Pepsi Co. and Sandra Day O’Connor, the first women to serve on the
BM: What are your plans for post graduation?
U.S. Supreme Court. Based on the qualities of leadership I extracted from these women I created my own personal plan for success. From this project and my meetings with Dick Smith, I learned the importance of setting goals, striving to achieve them with steadfast determination, and recognizing no boundaries and accepting no limits. In addition, I now recognize that my professional aspirations will demand that I make constant decisions. I vow to treat each decision I make with utmost consideration for others while weighing the consequences of my choices and the impact of my actions. Lastly, according to Dick Smith, the most sought after quality in business is ‘leadership’ based on knowledge and integrity.
SI: I recently accepted an offer with the Office of the Comptroller of the Currency, a bureau of the U.S. Treasury Department as an Assistant National Bank Examiner. Getting behind the scenes of the national banking system excites me! As an Examiner I will be evaluating the policies and systems, quality of bank assets, and management expertise of all national banks to ensure operations are fiscally sound. I like the fact that I will be able to tailor my career path at the OCC based on my interests. My goal is be commissioned as a National Bank Examiner by successfully completing the Uniform Commissioned Examination so that I could manage an entire bank examination as an Examiner-in-Charge and focus on a specialized area of international banking or compliance.
BM: What advice can you give students interested in attaining leadership positions such as yours? SI: I believe leadership experience is vital
Contact Beverly at firstname.lastname@example.org
Young Entrepreneurs Prosper With The Path of Passion By Ian Mehok, Assistant Managing Editor Students of the Leadership Development Honors Program got to witness entrepreneurship on a personal basis last Thursday, as members of the Young Presidents Organization (YPO) held a panel discussion in front of the group. The YPO, founded sixty years ago to connect the world’s most successful presidents and executives, features more than 17,000 members across 100 countries. On this night, four of its members came to speak about their experiences in the field, mistakes they have made, and steps they have taken along the way. The evening began with Seton Hall’s Fred Ganning asking the panel to talk a little about their career paths. Dan Carson, who also helped in moderating the panel, spoke about his work going up through the construction business, starting out with just a backhoe to feed his dreams of running his own successful business. He was followed by Michael Lucciola, who also built his business from scratch, all while getting his graduate degree at Seton Hall. His business, consulting, led him to sell off two different firms that he managed, and now has him searching for additional business ventures while serving on the Board of Regents. The next two panel members, Robert Lazarus and Jaswinder Chadha, brought a different dynamic to the talks. Lazarus, who runs a fourth-generation business started by
his great grandfather, spoke about the troubles in dealing with a family-run business. He also mentioned the need for diversity in a business, and that business would be getting harder as China took more market share from U.S. companies. Finally, Chadha spoke about his transition from India to the U.S., and how his true learning did not occur in a classroom, rather on the job itself. Next, the panel went through a list of popular questions asked at past YPO events by leadership students. The first question, “what is one tip you can offer for soon-to-be graduating students?” led every panel member to reinforce the importance of keeping your options open. When asked what they would look for in new hires, the panel members had several different ideas of great leadership. First, Chadha suggested that the best workers were those who were “eager to learn, fun to work with, and have a great work ethic,” before elaborating on the idea of being a good employee. Lazarus echoed this idea, saying that he looked for someone he felt comfortable around, and an employee that could wear “many different hats”. The panel finished the evening with a short question and answer session with the Leadership Development Honors students and faculty, before turning over the evening to dessert and exchanging business cards. As students began to approach the entrepreneurs, it was clear that the hard work ethic and drive spoken about by the entrepreneurs was alive in the room, only
Photos courtesy of Mike Reuter From left to right: (top) Robert Lazarus, Dan Carson (bottom) Michael Lucciola, Jaswinder Chadha
this time it was coming from the other side of the table.
Contact Ian at email@example.com
THE STILLMAN EXCHANGE
TUESDAY, DECEMBER 8, 2009
Fitzpatrick Excels With Grey's 'Famously Effective' Strategies By Constanza Lasso, Stillman News Writer The Marketing Club celebrated their last meeting for the fall on December 1 with Bridget Fitzpatrick, a current account supervisor at GreyNYC. “There’s famous and there’s effective,” says Fitzpatrick. Grey prides itself in being one of the most famously effective advertising agencies companies since 1917; serving one-fifth of the Fortune 500 companies and one-fourth of the Fortune 100. “Humans first, consumers second” is the philosophy Photo courtesy of Xin He
Fitzpatrick is an integral part of her advertising team, contributing to their receipt of the prestigious Clio Award.
Photo courtesy of Grey Group The Evolving Agency Model is a developmental plan created by the Grey Group. It evolved over the years as departments within the advertising division became further connected through advances in technology and communication.
that the company abides by. Some of their famous and effective brands include; the Olive Garden, CoverGirl, and Canon. CoverGirl’s, “Easy, breezy, beautiful CoverGirl,” Canon’s, “So advanced it’s simple,” and Olive Garden’s “When you’re here, you’re family,” are only a few of the successful taglines that Grey’s clients have experienced. Brand recognition can be attributed to a company’s logo, but these taglines have supplemented their brand recognition and have become exceedingly recognizable to the public. Members of the Marketing Club were introduced to the many components that make-up an advertising agency such as Grey. There are just ten steps to creating a memorable advertisement. First, the client provides a marketing brief to the agency
who then writes a creative brief. The creative team is briefed and creative development begins. The concepts are presented, tested, revised, and produced. Once approvals are made, the advertising is made available to the public. Fitzgerald emphasized the success of one of Grey’s clients by adding a few short videos on the famous E*TRADE baby commercials during the presentation. Upon graduating from Syracuse University, Fitzgerald immediately began working for GreyNYC. Over the past two years she has grown her digital expertise by spearheading creative and strategic online planning for various named companies, such as the American Egg Board, Frontier Airlines, and Playtex Infant Care. She leads weekly online reporting calls where real-time optimizations are made
based on current result. She also developed a strategic foundation for Frontier as they underwent a full media and creative shift from traditional to online advertising in a category where sales are driven by online bookings. Within less than four years at GreyNYC, Fitzgerald excelled earning two consecutive Silver Effie Awards as well as the Clio Award, the first to be awarded in 25 years. Fitzgerald and her team were recognized for their unique creativity, strategy, and the all around effect the Frontier Airlines campaign had on the public. For more information on Grey please contact Bridget Fitzpatrick at firstname.lastname@example.org. Contact Constanza at email@example.com
Holiday Gatherings and Networking: A Perfect Opportunity for Career Exploration With the holidays nearing, we know it will be a busy time and we will be visiting with friends and relatives and likely thinking little about exploring careers or jobs. This, however, is one of the best times of the year to make connections with people you might not get to see at other times of the year and to learn about careers and professional fields of work. For students who will be graduating in the spring and those seeking internships, you will want to update your resume during the winter break and begin proactively looking for job opportunities since the market will continue to be challenging in the coming year.
And since statistics show that many job opportunities are the result of personal networks, you will want to take advantage of cultivating and building your networks now. Think about reaching out to people you may have worked with in internships or other jobs to let them know how you are doing in school and what you are thinking about after graduation. They will be glad to hear from you and may even have ideas about who else might be helpful to you as you think about jobs in various fields. And, do not forget about connecting with others through LinkedIn, or through professional associations you may be a
member of and attending holiday networking events such associations might sponsor. Seton Hall’s Pirate Mentors can help as well. As alumni who volunteer to help students learn about fields and careers, they once were in your place as students trying to figure out how to find a job matching their interests and skills. You can find Pirate Mentors by going to Navigator on the Career Center’s web site and clicking on “Mentors.” From there you can search for mentors by industry, job title, or field. You might also want to share your experience of working with a Pirate Mentor and possibly earn some Pirate Gold by sub-
mitting an essay to the “Alumni Pirate Mentor Connection Essay Contest” (see the Career Center’s web site). So, think about the coming holidays as a time to connect with family, friends, past work associates and Pirate Mentors. You can learn valuable lessons from these people’s experiences that can help you as you look forward to and begin building your professional future.
Regards, The Career Center
Sponsors for Educational Opportunity Strive for Exclusivity and Diversity By John Ceniza, Stillman News Writer The setting was very intimate, as students interested in networking and internships joined the Sponsors for Educational Opportunity for an informative presentation on their exclusive educational and career programs. On November 17, Nicole Smith, Director of the SEO Career Program, introduced SEO as a provider of training programs and summer internships for college students of diverse backgrounds. “We will work with all majors…Eighty percent of these internships lead to full-time jobs,” Smith stated. Highlights to an SEO summer program include extensive training, networking events, mentor support, and community service. Interns have three different mentors, network with both specific firms and alumni, and unlike other internships that only network within the firm, SEO interns have the opportunity to network with a vast array of firms. SEO has plenty of partners and programs, which include Global Fortune 500 companies, bank and asset managers, cor-
porate law firms, and foundations or nonprofit organizations. All firms partnered with the SEO focus on specific internship areas. For example, bank and asset managers provide a variety of possible internship sections including accounting, finance, information technology, and sales and trading. SEO recently created an investment banking area within the finance division, the largest and most prestigious area. They also continue to expand with transaction services being introduced just last year. A few companies involved with SEO are Bank of America, Goldman Sachs, JP Morgan and Teach for America, the only partnered company under their philanthropy division. SEO also has a Global Corporate Leadership program that has an impressive 90 percent full-time offer rate. It is the newest program and it provides determined individuals an opportunity to become the next corporate leaders in the finance field. The program has been recognized by firms like Xerox and IBM, who have had managers and executives join their firms through their partnership with SEO.
Photo courtesy of www.seo-usa.org Sponsors for Educational Opportunity give students within the Global Corporate Leadership program the ability to intern with leading Fortune 500 companies such as Johnson & Johnson, Xerox, and IBM.
An ideal candidate must have ability, willingness, and fit in their respective area of interest. The candidate must also have a 3.0 GPA at the time of admission. Apply
online at www.seo-usa.org. Contact John at firstname.lastname@example.org
TUESDAY, DECEMBER 8, 2009
THE STILLMAN EXCHANGE
Graphic Advertisement by activist group Plane Stupid is questionable “The activist group, Plane Stupid, released a graphic advertisement depicting polar bears falling from the sky and crashing on the ground. The basis for the advertisement is environmental protection and the awareness of airplane pollution. Polar bears are used because a full grown adult bear weighs 400kg which is the same amount of pollution released per passenger on a standard flight.” Morgan Tornetta: Sophomore, Journalism Major
Violent Ads Send the Wrong Message Even as a Journalism major, I occasionally wonder if the freedoms of expression and speech are entirely healthy for us. Some people take pleasure in pushing the boundaries of these liberties to the extent that it stretches the limits of tastefulness. There’s little difficulty in offending a great deal of people by saying only a few words. Don Imus, anyone? Visuals, by their nature, pack a stronger punch. Have you ever watched a PETA advocacy “educational” video? It’s not a pretty sight. Luckily, Plane Stupid, a UK anti-aviation group which protests the adverse effects flying has on the environment, only violently dropped computergenerated polar bears from the sky, other-
commercial. The images of the plunging polar bears, now the poster-children for global warming activists, distract from the message, as the viewer could be more concerned about the polar bears then they would be about Plane Stupid’s movement against airport expansion. Violence isn’t the only thing used by advertisers to gain the attention associated with shock ads. As we all know, sex sells. In my Communications Research class we are currently studying content analysis, especially of ads. Our professor showed us one ad from Dolce and Gabbana 2007 spring-summer collection which depicts a scantily clad young woman being pinned down by the wrists by a half-naked man while several other men look on. The image screamed “gang rape” to those who saw it; it was banned in Italy five days before publication. Clearly, shock is not a universally acceptable method of advertisement. Photo courtesy of Plane Stupid This type of shock advertisement is, in my view, merely stylized it certainly is enough to be incredibly physical or sexual violence which is not unpleasant, and probably disturbing to okay, no matter what you’re trying to pedeven younger audiences. dle or promote. Though studies suggest that shock works as an advertising technique, I think Contact Morgan at it is poorly employed with Plane Stupid’s email@example.com wise PETA would be incensed as well. It’s not the cute, fluffy animals being hurled into skyscrapers that I particularly object to-- though I would prefer not to see it-- but rather the idea of using excessive violence as a tactic to further an agenda, whether that agenda is saving the world or marketing a product. Though I don’t think that Plane Stupid’s commercial is as graphic as it could be (again, see: PETA),
Photo courtesy of Plane Stupid
Liliana Garcia: Junior, Psychology Major
Shocking Commercial, Why Not for a Good Cause? In a society in which we are constantly being bombarded with images, what better way to get our attention than to show us something that we have never seen before and is completely shocking. We are numb to the basic “buy this product because works” comm e r c i a l . Companies have to resort to crazy means to capture our attention and retain it long enough for the product or message to stick in our minds. Even when advertising companies are using their best tactics to get our attention, we barely notice what they are selling. We turn the page in the magazine or change the channel on the television without giving the ad a second
what the ad is about and very carefully read they have to say. Thus, they were able to grasp your attention and keep it. So, what is wrong with them showing the public a scene that is a bit graphic if it gets the point across? There are graphic scenes all around us that have more blood and gore. Just watch the commercial for a video game like Resident Evil; they show you all the gore and blood that they have in store for you. I would consider that to be graphic but you do not hear people complaining about those ads. Plane Stupid and other companies like them are just shocking us and making Photo courtesy of Plane Stupid things hit home dropping out of the sky, hitting the ground so that we can draw the links between our and dying on impact. Some people may actions and the consequences. think that it is too harsh and graphic to be shown on television, but I ask did you sit and watch the whole thing? I know I did. Contact Liliana at When the text comes up on the screen firstname.lastname@example.org after the video, you are dying to know thought. How does a company that is not trying to sell us a product, but make a public service announcement get our attention? Shock us so much that we can’t believe what we are seeing and leave us sitting there, staring in a daze. In the particular ad that is in question, the company Plane Stupid has polar bears
David Guzik: Sophomore, Political Science Major
Graphic Ads are Effective Ads Graphic advertisements are produced in that manner for a reason; they are meant to make an impact. Plane Stupid, the activist group who is against aviation created this advertisement to motivate others. The graphic sense of the advertisement isn’t meant to be disgusting in the sense of killing polar bears or advocating the death of polar bears; they are just simply using the polar bear as a tool to relay their message. This group wants to raise awareness of the danger of the extreme amount of pollution from the aviation industry.” Therefore, it is my belief that it is ethical for groups to make graphic advertisements such as the one by Plane Stupid. We need to look at the larger picture in these sorts of advertisements. Plane Stupid is an activist group and therefore their advertisements will reflect this mentality. They are not against polar bears in any way. They love the environment and are actually worried about climate change. The climate change that Plane stupid is worried about will eventually affect polar bears first with the melting of the ice caps, so in reality the ad has a double affect stating that, 400kg of greenhouse gases are emitted per flight which is equal to the weight of an adult polar bear, but also that the deaths of polar bears will come to pass if we do not act on the climate change taking place. Obviously, polar bears will not fall out of the sky, but their homes and habitats will melt and they will be left sinking in the sea.
The climate change that Plane Stupid is worried about will eventually affect polar bears first with the melting of the ice caps, so in reality the ad has a double affect stating that, 400kg of greenhouse gases are emitted per flight which is equal to the weight of an adult polar bear, but also that the deaths of polar bears will come to pass if we do not act on the climate change taking place. Moving away from Plane Stupid’s graphic ad, even if a different group or organization created a graphic ad for a good cause it would still be justified by that good cause. The principle of utilitarianism says so in that, “the ends justify the means.” The end is the good cause, whatever it may be and the means would be the graphic advertisement. We see graphic advertisements all the time for various horror or action films on television, so why not one for a good cause such as environmental protection and that’s just plain common sense? Contact David at email@example.com
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, DECEMBER 8, 2009
Editorials Four Years and 12,000 Words Later By Magdalena Dewane, Managing Editor New ground-breaking information on minerals found in the polar ice caps are said to have the key to curing some of the world’s most devastating diseases. Okay, so my last article as The Stillman Exchange Managing Editor has nothing to do with that, but it was a good lead, huh? Now you’re hooked. Go ahead, read on. My time with this newspaper began in 2006 when my freshman roommate received an email requesting writers for a new publication on campus. Therefore, my first thanks for this incredible experience go to Alana Anderson. Little did I know how much a part of my life the newspaper would become. Our first meeting we were briefed by the Managing Editors, whose enthusiasm and excitement drew me in instantly. I look back at my first article: Fidel Castro, Hugo Chavez; Who’s the Better Man? and shudPhoto courtesy of Magdalena Dewane der. Not only was that a horrible headline, but my “news-reporting” was so novice! The Stillman Exchange celebrating at the annual Stillman Dance. Pictured with the staff is Dean However with the help of the Managing Karen Boroff and Professor Tony Loviscek. Editors I was able to develop my writing tional documentarian, attended NY Giants am also applying to graduate schools for and find a niche in the realm of news reportgames and interviewed professional play- next fall. However I’m not a Stillman stuing. ers, met the vice president of the New York dent, I’m in the Diplomacy School, so even Mike Bellom and Frank Anguiano have Fed, attended Chinese university delegation though international studies seems up my been outstanding mentors throughout my dinners, and interviewed brigadier generals alley for grad school, working with TSX has college career and have made huge positive of the US Army. All of these opportunities shown me that writing and journalism are impacts in my life. For their guidance, I am have been made possible by the enthusiasm some of my favorite things to do. I’ve conextremely grateful. of Dean Karen Boroff. Her genuine interest sidered several journalism programs for As Mike transitioned me into a leaderin this paper and its staff has been a constant graduate school and I’m currently looking ship role freshman year, he said I needed to asset. into internships that focus on policymaking bring friends on board with me. I quickly As I am about to graduate college in and news reporting (so if anyone’s hiring, enlisted the help Jerry Pecoraro, Meleleng less than two weeks, I am not only ripping give me a call!). Tchalim, Danielle Storm, Sini Stephan, my hair out and screaming frequently, but I As my experiences here must come to Rusty Stauder, and Eric SoHayda. Perhaps a close, my biggest thanks must go to you’ve seen these names on our my partner in crime, Jerry Pecoraro. He Editorial Board in the past. I would like has been a tremendous asset to this to thank each one of them for their skills, paper, his work ethic and perseverance input, and dedication which have prois some of the most dedicated I have pelled this newspaper to the forefront of ever seen. His friendship and mentorcollege publications. ship have helped to carry me through When I joined TSX, we had a staff my college years. I can only hope I have of ten people. Now, we have over 60 in some manner been able to return the writers and 20 Editors and Assistant favor. Editors. We’ve created and recreated a So let me wrap up – you’re most defiwebsite (be sure to check out the new nitely tired of reading by now and you one up and running next semester), we probably have a meeting or class to get have entered statewide competitions for to. If you know me, you know that The newspapers, created the nation’s first Stillman Exchange has been my life for international edition – printed in both the past four years. If there is one thing English and Chinese, and just began a Photo courtesy of Magdalena Dewane I could brag about endlessly, it would be research development project. the character and quality of our paper Over the years, I’ve been extremely Inside the Giants’ locker room before interviewing the and the experiences derived from it. fortunate to have interviewed an internaplayers after a regular season game in 2008. Thank you to all the editors of this
newspaper: past, present, and future. To them and to the staff, continue to love what you do and your results will show it. Utilize the resources given to you, don’t be afraid to ask questions or speak up. Make time to have some fun and never stop pushing the envelope. Contact Magdalena at firstname.lastname@example.org
The Stillman Exchange The Official Business Publication of Seton Hall University
Editorial Board Managing Editors Magdalena Dewane Gerardo Pecoraro Assistant Managing Editor Ian Mehok Money and Investing Ian Mehok Stillman News Tiffany Dindial Ethics Caitlyn Cafferty Editorials Anthony Crisci Sports Rich Kimsey Domestic News Steven Riedel International News Danielle Storm International Business Alex Cohen Special Edition Herbert Chao Xu Webmaster Christine Wotton
Assistant Editors Money and Investing Christine Wotton Bryan Murawski Stillman News Beverly Makarios Ethics David Guzik Sports Kayla Mjaatvedt Travis Tosoni Domestic News Rachel Ressler International News Kaitlin Tonti International Business Margaret Reilly
Faculty Advisers Karen Boroff, Ph.D., Dean Michael Reuter, M.B.A. E-mail email@example.com Website http://www.stillmanexchange.com Twitter www.twitter.com/stillmanXchange 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.
TUESDAY, DECEMBER 8, 2009
THE STILLMAN EXCHANGE
Tiger Woods’ revelations shake sports world By Anthony Crisci, Editorials Editor The greatest golfer in the world is not so great when it comes to operating a motor vehicle, let alone a huge Cadillac Escalade. The number one professional golfer was involved in a single car accident on November 27, right outside his Windermere, Florida home. Woods was backing out of his driveway at 2:25 a.m. when he struck a tree and then a fire hydrant outside of his neighbor’s house. Woods’ wife came to the rescue, bashing the back window of the SUV with one of her husband’s golf clubs. Elin, Woods’ wife, was found hovering over the golf star as he was going in and out of consciousness. When the officers approached the scene, they stated that Elin was “frantic and very upset”. Windermere Police Chief Daniel Saylor said, "She supposedly got him out and laid him on the ground.” Saylor said Woods had lacerations to his upper and lower lips, and blood in his mouth. The officers at the scene treated Woods for about 10 minutes until an ambulance arrived. When the ambulance arrived, Woods was conscious enough to speak. It was reported that no alcohol was involved in the accident.
Tiger Woods was treated at the nearby hospital in Ocoee, Florida and after being
Soon after on Wednesday, the high-tempered superstar let out a statement apologizPhoto courtesy of ESPN
Contact Anthony at firstname.lastname@example.org
Stillman Sports Super Seven Tiger Woods recently admitted that he committed “transgressions” against his family in past years.
released, was faced with the concerns of fans and media. On Tuesday, Woods was charged with careless driving and fined $164 by Florida authorities.
ing for his actions, “I have let my family down and I regret those transgressions with all of my heart.” There is high speculation churning in
Bowden steps down from Florida State By Matt Bartlett, Stillman Sports Writer Florida State University football coach Bobby Bowden retired last week after 34 seasons with the school, leaving behind an unparalleled legacy. Since his hiring in 1976, Bowden amassed 388 victories, trailing only Joe Paterno of Penn State for the most all-time coaching wins. In addition to regular season success, Bowden guided Florida State to national championships in 1993 and 1999, and the Seminoles were the model of consistency throughout his tenure. He was the first coach to lead a team to bowl games in 27 consecutive seasons, and is the only coach to win 10 or more games 14 seasons in a row. Under Coach Bowden, Florida State produced Heisman trophy winners such as Charlie Ward and Chris Weinke, and since 1984 at least one player from the school has been selected in the NFL Draft each year. Despite the Seminoles’ success with Bowden at the helm, the
team’s performance had started to decline in the last decade. Since their 2001 championship loss to Oklahoma, the team has recorded 10 or more wins in a season just once and finished the 2009 season 6-6. While Bowden will always be recognized for his on-field success, perhaps one of his greatest achievements was his ability to develop meaningful relationships with his players and help them grow into mature adults. A devout Christian, he would often preach to his players the same values that his father instilled in him earlier in life. “Coach Bowden was a father figure to us,” said former Florida State defensive end Andre Wadsworth. “He told us he was going to treat us all like his sons, and that’s what he did. He cared about us – more than he cared about football.” Bowden will coach one final time for the Seminoles when they compete in their upcoming bowl game. Contact Matt at email@example.com
Favre, Manning, Brees tops in league for MVP candidates By Scott Kim, Stillman Sports Writer The race for MVP in the NFL this year is currently a four way battle between three familiar faces-Brett Favre, Peyton Manning, and Drew Brees-and one newcomer who has exploded onto the scene in Chris Johnson. Year in and year out we see Peyton Manning among the favorites to win the MVP. Last year he won his third MVP and now he’s looking to add a record setting fourth. He currently has the most passing yards with 3,415, highest completion percentage at 70.4%, and is tied for second in touchdowns with 24 (print date 12/4). He is arguably the most important asset to any team in the league as well. Since starting as a rookie in 1998, the Colts have gone 127-59 in the regular season and are currently 11-0 this season. In the previous eight seasons before they drafted Peyton Manning, they went 50-78. Manning has been forced to shoulder a large load in Indy so far this season being given relatively no rushing attack with the Colts sitting in second to last place in total
the media world about Woods’ alleged two year affair with once VH1 reality star, Jaimee Grubbs. Grubbs claims that she has over 300 text messages from Woods, and a voicemail asking her to change her I.D. so that Elin would not know she was calling. Grubbs also reports that she met with Woods at a Las Vegas nightclub, only two weeks prior to Woods’ wife giving birth to their first child.
rushing yards with 964. He has also done so without Marvin Harrison or who was supposed to be his replacement in Anthony Gonzalez who was hurt in the first game of the season. Besides his normal weapons in Dallas Clark and Reggie Wayne, he has otherwise been forced to resort to newcomers Pierre Garcon, a second year receiver coming into this year with only four catches career, and fourth round pick Austin Collie. Besides Peyton Manning, only one other player has three MVP awards from the Associated Press. Oddly enough, that player is Brett Favre who is right with Manning in the running for it this year. Nobody quite expected Favre to be doing this well thus far into the season after he was again expected to retire this past offseason. Now he is ranked second in quarterback rating, completion percentage, and touchdowns and has the fewest number of interceptions among all starting quarterbacks (print date 12/4). He has taken advantage of the talent around him and has turned the Vikings from solely a playoff contender to one of the
favorites to win it all. The third quarterback in this race who is not to be forgotten is Drew Brees. Like Peyton Manning, he has also led his team to perfection thus far with the Saints currently at 11-0. Brees is also leading the league in touchdowns with 27 and in quarterback rating at 112.6 (print date 12/4). Then there’s Chris Johnson who has been giving us highlights after highlights every week. These have amounted to him leading the league in rushing by over 200 yards more than anyone else, tied for fourth in rushing touchdowns, and averaging an astonishing 6.4 yards per rushing attempt. With Vince Young now lining up under center, they have been able to carry the Titans to a five game winning streak after dropping their first six. All of this amounts to what is sure to be a close MVP race at season’s end.
Contact Scott at firstname.lastname@example.org
7. After losing the first 10 ACC/Big Ten Challenges, the Big Ten was finally able to win the series for the first time, 6-5. Illinois, Northwestern, Ohio State, Penn State, Purdue, and Wisconsin all earned victories for the Big Ten Conference. 6. FIFA president Sepp Blatter announced that that there would be no institution of video replay at the 2010 FIFA World Cup. He also stated that there would be no addition of a fifth referee at the tournament, after a controversial play in the qualifier between France and Ireland led to the initial questions regarding officiating. 5. In a game between the Florida Panthers and Atlanta Thrashers on November 30, Florida defenseman Keith Ballard accidentally struck his own goaltender Tomas Vokoun in the head with a stick after an Atlanta goal. Ballard swung his stick in frustration and hit Vokoun on the side of the mask. 4. Controversial point guard Allen Iverson came out of retirement to sign a one-year contract with the Philadelphia 76ers. Iverson was drafted by Philadelphia first overall in 1996, and during his 10 seasons as a Sixer, Iverson was NBA MVP and led the team to the NBA Finals in 2001. 3. New York Yankees shortstop Derek Jeter was named the Sports Illustrated Sportsman of the Year. Jeter becomes the first Yankee ever to win the prestigious award. He led the Yankees to the World Series title this year, as well as winning his fourth Rawlings Gold Glove award. 2. After a loss to the Dallas Mavericks on December 2, the New Jersey Nets fell to 0-18 on the season, earning the team the worst start in NBA history. Earlier in the week, the Nets fired head coach Lawrence Frank, who was in his sixth season on the job. 1. The University of Notre Dame fired head football coach Charlie Weis. In five seasons with the Fighting Irish, Weis posted a 35-27 record, including a mediocre 66 mark this season. Notre Dame is currently looking to hire its fifth head coach in ten years.
THE STILLMAN EXCHANGE
TUESDAY, DECEMBER 8, 2009
“The Body Issue” big success for ESPN Magazine By David Rind, Sports Writer ESPN the Magazine bared its skin, and advertisers and readers bared their wallets for a peek. In October, “The Body Issue”, was ESPN the Magazine’s spread of scantily clad athletes, such as Serena Williams and Dwight Howard, exposing their physiques. It was met with much success on the newsstands, as well as on the pages themselves. This particular issue sold 35 percent
more advertisement space than the same week in the prior year. The topic likely enabled advertisers to market the young men and women who would most likely be reading the issue, and pick the products that appeal most to them. Advertisers appeared to foresee the success of the issue, which sold twice as much as normal issues. Sex appeal can be a powerful thing, especially in an industry such as sports, which has such a zealous following to begin with. When the issue itself is eye
World Cup host doesn’t profit from staging tourney in house By Kayla Mjaatvedt, Assistant Editor One of the world's leading sports economists claims that the 2010 World Cup host, South Africa, will not be reaping any benefits from next year’s tournament. “The next World Cup will not be an airplane dropping dollars on South Africa,” authors Stefan Szymanski and Simon Kuper write in their new book “Soccernomics.” According to Szymanski, the World Cup tournament will not be an economic treasure for South Africa and that spending by spectators will be much less than the South African government had expected when preparing for the tournament. “The problem for South Africa is that they have to spend quite a lot to build stadiums,” Szymanski explained in a telephone interview. “Germany could afford this, and it had stadiums anyway. But South Africa is a nation that can ill afford to fritter away a few billion on white elephants.” For example, after the 2002 World Cup, South Korea's K-League found it difficult to
catching, advertisers will jump at the chance to catch the reader’s eye with a new product. “The Body Issue” also had its affect on the Internet. To see additional views of the athletes, consumers can pay $39.99 for an ESPN.com Insider account. Six hundred and fifty new subscriptions were purchased near the time of the issues release. Increased traffic to ESPN’s website is simply an effect that an issue of this caliber can have on a company’s multimedia. Sports Illustrated has cornered the hybrid
The NBA’s developmental league is finally starting to take off. The D-League is now gaining support from local businesses and from fans that are starting to come out and watch these players that could eventualPhoto courtesy of nba.com
Contact David at email@example.com
Photo courtesy of msn.com
fill the 10 new stadiums built for the tournament, altogether costing more than $2 billion. Szymanski argues in his book that hosting a World Cup or Olympics is an inefficient way to revitalize a city, or enrich a nation. This is especially the case for a country like South Africa, where a third of the population lives on less than $2 each day. Hosting the World Cup can definitely boost a nation's spirits or image, but it will not do much else. “If you want to regenerate a poor neighborhood, regenerate it,” Szymanski and Kuper write. “If you want an Olympic pool and a warm-up track, build them. You could build pools and tracks all across London, and it would still be cheaper than hosting the Olympics.” Even still, with the tournament drawing closer, excitement is building in South Africa. Many people hope to gain from or play some role in the football spectacular. Contact Kayla at firstname.lastname@example.org
South Africa’s new soccer stadium for the 2010 World Cup won’t bring in any extra cash for the host
NBA’s D-league model causing success increase By Anthony Cramond, Stillman Sports Writer
market of “sex and sports” for years with their annual Swimsuit Issue. It is also the more widely read print publication in sports. “The Body Issue” is a full scale move by ESPN to grab readers and advertisers and attract them to their magazine.
ly play in the NBA. The D-League is also using something that minor league baseball has used for a long time. They are going to cities that do not have a professional sports team and are passionate about sports, and starting franchises there. Both minor league baseball and the D-
League are the same, expect for the fact that any NBA team can call up a player on any D-League team. An example of this is the Maine Red Claws. They are a franchise based out of Portland, Maine. The Maine Red Claws are a first year team in the D-league, based in Portland, Maine, and they have already sold nearly half of the 3,100 seats in the arena for the season. Also, the local businesses are helping out with getting the Red Claws name out to the public by putting their logo on dessert cakes and beer bottles. By just looking at the average attendance at a D-league game, only 2,800 fans per game, it is hard to say that this league is getting better. But the most important number is 2.25 million. That is the amount that Oklahoma City Thunder owner Clay Bennett shelled out to buy the rights to the D-League team in Tulsa. To the owner of the league, Dan Reed, that number has confirmed the fact that the league is moving in the right direction. The value of the franchises has quadrupled in the last few years. Plus, with the economy the way that it is now, people are starting to cut back on driving to the big city and watching an overpriced NBA game. Instead, they are staying local and going to watch the pre-NBA talent of the D-League. This is something that the league can and will use to their advantage to help it thrive even more. Contact Tony at email@example.com
Endorsers Cut Putter Sponsorships ...continued from page 1 Players like K.J. Choi and Robert Allenby have not resigned with their respective equipment companies. Choi was offered a substantial pay-cut for his one and a half million dollar contract with Nike and Allenby was offered a 70 percent pay cut from his one million dollar contract with Srixon. As for the two prominent figures in golf today, Tiger Woods and P h i l Mickelson, there has been very little effect in terms of income. Woods curr e n t l y receives an Photo courtesy of golf.com estimated Nike wants Choi to take a $128 million substantial pay cut. dollars per year, $105 million in endorsements alone. Phil Mickelson earns an estimated $62 million, $53 from endorsements. The average golfer, however, earns an estimated $973,000, an amount that is rapidly declining. Contact Robert at firstname.lastname@example.org
TUESDAY, DECEMBER 8, 2009
THE STILLMAN EXCHANGE
Hall stays undefeated through start of OOC schedule By Anthony Holesworth, SHU Sports Writer The men’s basketball team is off to a perfect 5-0 start in the early stages of their season. The season started off with a game against St. Peters. Many expected this game to be dominated by Seton Hall. However, due to a sub-par shooting performance and sloppy play by the Pirates, the game came down to the wire and the team found itself down a point with only 3.6 seconds left in the game. It appeared the game was lost. However, senior guard Eugene Harvey had other plans. He launched a one-handed shot from around thirty feet out to beat the buzzer and give the Pirates the 53-51 win. Since then, the team has been playing much more solid, consistent basketball. They followed up their win against St. Peters with a win at Monmouth. In this game, junior guard Jeremy Hazell shook off his preseason rust and scored twenty-six points, including five three-pointers. Herb Pope, a junior forward, scored fifteen points and grabbed an impressive seventeen rebounds to help the squad get the 87-72 victory. The next game on the Pirates’ schedule was against Cornell. Seton Hall got off to a slow start missing their first four shots and going down eight points to none. Nonetheless, they soon hit their stride and got control of the game. Jeremy Hazell scored thirty-three points and led the Pirates to the 89-79 win. Sophomore guard Jordan Theodore scored twenty points, and Herb
Pope recorded another double-double with eleven points and twelve rebounds. Seton Hall came back to the Prudential Center to play Long Island University on November 28. The Pirates put on an impressive performance, with five players scoring in double-digits. They were able to cruise to a 95-66 win. Herb Pope got his third straight double-double with nineteen points and ten rebounds. Also, Jeremy Hazell had his third straight game scoring twenty or more points. Their most recent game was a home game against NJIT on November 30. This was their first game back from Thanksgiving break. However, the Pirates were still celebrating Thanksgiving as they feasted on the Highlanders, winning by forty points, 93-53. Jeremy Hazell continued his solid scoring with twenty-one points. Herb Pope kept his double-double streak very much alive, scoring twenty-two points and grabbing eleven rebounds. Marksman, Jamel Jackson (a junior guard), scored fifteen points on five three-pointers. Thus, the Seton Hall Pirates are perfect so far this season. Although the season is still young, the squad is looking increasingly more sharpened and prepared for the always-competitive Big East. Another thing the team has to look forward to in the next few weeks is the return of junior guard Keon Lawrence, who gets off suspension on December 19, just in time for Big East play. Contact Anthony at email@example.com
Photo courtesy of SHU Athletics
Sophomore point guard Jordan Theodore has been a big piece of the Pirates early success this year.
Green, Lady Pirates off to a strong start to the season By Ian Baker, SHU Sports Writer Upon entering the LIU Turkey Classic on November 27th, the Lady Pirates basketball team held a respectable 3-2 record. The Lady Pirates first game was against a Georgia Tech team who carried in a record of 2-1. After a hard fought game, the Lady Pirates fell to Georgia Tech by a score of 57-51 and dropping to 3-3 on the season. The Lady Pirates had three players with double digit points. Guard Ebonie Williams had 15, Forward Nicole Emery had 12, and Forward Kandice Green had 11. The team shot a total of 38 percent from the field and shot a respectable 68.4 percent from the free throw line. The Lady Pirates out rebounded the Yellow Jackets by four. The team was led by Guard Shanai Heber, who pulled down 12 boards. In a consolation match in the LIU
Turkey Classic, the Lady Pirates faced Brown who came in with a record of 2-3. The Lady Pirates fought a close game and edged out the Brown Bears by one point with a score of 57-56 and improved to 4-3 on the year. The Lady Pirates were led by the double-double performance of Green who had 13 points and 12 rebounds. Seton Hall also had two other double digit scorers in Williams, who had 13, and Center Whitney Wood who came off the bench to put up 12. The team shot 32.2 percent from the field and 78.9 percent from the line. Five days after the close win against the Brown Bears, the Lady Pirates looked to gain another win against the New Hampshire Wildcats. The Lady Pirates were able to slide past the Wildcats by a score of 54-45 and improve to 5-3 on the season. Green led the Lady Pirates with a doubledouble performance; she put up 16 points
and pulled down 11 boards. The Lady Pirates also had two other double digit scorers, Williams, who had 13, and Emory had 10. Seton Hall shot 35.2 percent from the field and 91.7 percent from the free throw line. They also out rebounded the Wildcats by seven. Sunday, the Lady Pirates traveled to Boulder, Colorado in search of their third straight win and sixth of the season. They faced the Colorado Buffaloes, who entered the game with a record of 5-1. The Buffaloes looked to keep their perfect home record against the visiting Lady Pirates. As a team on the season, the Lady Pirates are shooting 35.9 percent. They are shooting 68.6 percent from the free throw line. The Lady Pirates have hit a good stride at this point in the season. They have found a reliable trio of scorers who can consistently put up double digit points. Williams
and Green both already have triple digit points on the season with Emery edging ever closer. Williams leads the team with 118 points followed by Green who has 107. Emery has 87 points on the season. The players of that reliable trio are all averaging respectable numbers per game. Williams is averaging 14.8 points per game, Green is averaging 13.4 points per game, and Emery is averaging 10.7 points per game. The Lady Pirates are a fierce rebounding team this year, out rebounding opponents by 47. The Lady Pirates are shaping up to be a second half team; they are outscoring opponents by 230 to 187 in the second half. With nine games in the bag so far, the season seems to be shaping up nicely for the Lady Pirates. Contact Ian at firstname.lastname@example.org
Seton Hall’s Buried Treasure Seton Hall Baseball Pitching Coach Phil Cundari has been inducted into the 2010 Seton Hall Athletics Hall of Fame. Cundari pitched on the 1985 team as the BIG EAST Pitcher of the Year and leads the conference with a single-season record 1.22 ERA. The women’s soccer head coach will test out his international leadership skills as he leads the U.S. under 17 Women’s National Team in Argentina. Coach Kazbek Tambi looks forward to matches against Argentina, Uruguay, and Chile. Freshman swimmers Ian Keyser and Ryan O’Shaughnessy show off their talent behind the monster in the pool, Kevin Webster, as they combined for seven point scoring finishes at the Patriot Invitational. Keyser and O’Shaughnessy join 11 other members qualified for the BIG EAST Conference Championship. Senior Allie Matters, All-BIG EAST Second Team selection, has broken Seton Hall’s single season and career dig marks this season. Matters also hold a nation-wide record with an active double figure dig streak at 68 matches. Photo courtesy of SHU Athletics
THE STILLMAN EXCHANGE
Obama Raises Afghanistan Troop Levels Photo courtesy of NYDaily News
By Padmavathy Sonti, Domestic News Writer A week ago, President Obama announced the deployment of 30,000 additional troops to Afghanistan for eighteen months. While the troops may be sent out as early as 2010, the withdrawal date has been set for July 2011. In his speech, the President outlined three important goals: destroying al-Qaeda safe havens, preventing Taliban momentum, and strengthening Afghani local forces. In addition, the President called for improving the Afghan civilians’ conditions in order to sustain greater security. He also emphasized the need to build a partnership with Pakistan. “We're in Afghanistan to prevent a cancer from once again spreading through that country,” stated Obama, “But this same cancer has also taken root in the border region of Pakistan. That's why we need a strategy that works on both sides of the border”. Following the President’s announcement, NATO Secretary General, Anders Fogh Rasumssen, pledged 7,000 troops. It is expected that the combined troops will be sent to areas in southern Afghanistan, such as the Helmand and Kandahar provinces, where the Taliban is the most active. In a USA TODAY/Gallup poll, 51% of Americans supported President Obama’s decision, while 40% opposed it. Obama’s announcement came after three months of review. In Sept., Gen.
Obama orders an increase in troop levels in Afghanistan during a speech at West Point.
Stanley McChrystal, the commander of American and Allied forces in Afghanistan, requested 40,000 additional troops. Meanwhile, many Congressional Democrats have expressed significant concern regarding the continuation and funding of the Afghanistan war. For this year, President Obama expects the military costs to amount to $30 billion. “I do not support the decision to prolong and expand a risky and unsustainable strategy in the region,” said Senator Russ Feingold (D-WI). “I do not believe more American lives should be risked for a war that no longer
serves our most pressing national security interests”. “The president made a courageous decision knowing full well that people in his own party would be the most vocal critics,” stated Rahm Emanuel, the White House chief of staff, in response to the continuing criticism, “But that won’t interfere with the things we agree on: the economy, health care and energy independence legislation”. Contact Padmavathy at email@example.com
Federal Reserve Chairman Defends Nomination for Second Term By Marc Nation, Domestic News Writer Chairman of the Federal Reserve Ben Bernanke took the stand on Capitol Hill at a hearing held by the Senate banking committee to consider his nomination for a second term last week. It appears that Mr. Bernanke will indeed have enough support in order to be awarded a second term leading the Fed. Though he and the Federal Reserve have fallen under a significant amount of criticism from citizens and politicians alike, Bernanke is poised to take up the reins for another four years. Mr. Bernanke originally became head of the Federal Reserve in 2006 under the Bush Administration; he developed a strong relationship with President Obama during the financial crisis and earned his nod for a second term. Throughout the hearing, Mr. Bernanke defended his record and policies, although he did admit that in some respects the Federal Reserve had been ineffective. Bernanke conceded to some of the criticism raised by senators, commenting that he had not foreseen an economic crisis of this magnitude and that the Fed had been too slow in acting to protect consumers from things such as high-risk mortgages. “In the area where we had responsibility, the bank holding companies, we should have done more…that is a mistake we won’t make again.” Bernanke told the Senate banking committee. In the hearing, Mr. Bernanke faced scathing disapproval from both sides of the aisle. Sen. Bernard Sanders (I- VT)has gone so far as to threaten to place a hold on
Bernanke’s re-nomination process, which to prevent future economic meltdowns, he would require a vote of 60 or more senators did not agree with some proposals such as to break the hold. the creation of a separate regulatory instituThe head of the Fed has however, con- tion. sistently enjoyed a fair amount of staunch “At the Federal Reserve, we have been support. Sen. Photo courtesty of the AP a c t i v e l y Chris Dodd (Dengaged in CT), the chair identifying and of the Senate implementing banking comimprovements mittee strongly in our regulaendorsed tion and superBernanke for a vision of finansecond term cial firms,” and declared Bernanke said. his intention to He cited vote for him. the Fed’s Sen. Dodd efforts of had kind words implementing for Bernanke, stricter rules on saying that subprime mort“Under your gages and leadership, Mr. credit card Chairman, the fees, and new Federal policies to regReserve has ulate executive taken extraorcompensation dinary actions at financial to right the institutions and economy. I banks. believe that you deserve another term as Mr. Bernanke speaks to The Economic Club of New York. chairman of the Bernanke’s Federal Reserve, and I intend to vote for term expires on Jan. 31, but he will continyour nomination”. ue to serve as the chairman until Congress Much of the debate in the hearing grav- confirms their choice for the new term. itated around the Federal Reserve’s role in financial regulations. While Bernanke agreed that the Fed should play an active Contact Marc at role in regulating financial markets in order firstname.lastname@example.org
TUESDAY, DECEMBER 8, 2009
News Briefs President Obama’s Approval Rating Drops Below 50 Percent Despite high approval rates for his recent announcement about a troop surge in Afghanistan, President Obama’s approval rates in a CNN poll have dropped. While 48 percent of Americans say they approve of Obama’s track record, 50 percent say they do not. The poll has indicated that the seven percent drop in those who approve occurred mostly in white, non-college-educated voters, showing that the drop may be related to economic policies. Six out every ten people questioned by the poll said they agree with the President’s new Afghanistan plan. Sen. Baucus’ Girlfriend Removes Name from Consideration for U.S. Attorney Sen. Max Baucus’ and his girlfriend, Melodee Hanes, withdrew her name from consideration for the Montana U.S. Attorney position. After resigning from her position as Sen. Baucus’ state director, Ms. Hanes submitted her name for consideration as the U.S. Attorney from Montana. She was nominated by a third party, as well as recommended by Sen. Baucus. When their relationship began, Ms. Hanes withdrew from the nomination process. New Orleans Gets Surprise Snowstorm In Southern Louisiana, almost eight inches of snow had accumulated by afternoon on Dec. 3, according to the National Weather Service. A rare occurrence in Louisiana, the snow accumulated measured more than what Boston, New York City, and Philadelphia have received so far this winter season- combined. The snowfall record for New Orleans was set on Dec. 20, 1963, with five inches of snow. American Student Sentenced in Slaying of British Roommate Amanda Knox, a 22 year old college student from Seattle, was sentenced in Italian courts this week to 26 years in prison for the 2007 murder of her 21 year old British roommate, Meredith Kercher. Two others, Knox’s former boyfriend and a friend, have also been sentenced to over 25 years of prison time. Knox’s defense attempted to prove character assassination by the Italian prosecution and media. Obama Postpones United Nations Climate Change Visit President Obama’s visit to the United Nations climate change conference in Copenhagen has been pushed back to the last day of the conference, Dec. 18. Originally timed to coincide with his acceptance of the Nobel Peace Prize, his administration feels it will most effective to the talks if President Obama speaks on the last day. The conference hopes to create a political agreement to take immediate action for climate change and an agreement to meet to draft a formal treaty next year. College Stops Plan to Create a Mandatory Fitness Class Historically black Lincoln University, outside of Philadelphia, has dropped plans to require students with a body mass index over 30 to take a fitness course to graduate. The plan was meant to address obesity rates, particularly in the African-American community. The “fat course” has been dropped due to complaints about equal treatment. Instead, certain students will be suggested for the course after a basic freshman wellness class.
TUESDAY, DECEMBER 8, 2009
New York State Rejects Gay Marriage Bill By Morgan Tornetta, Domestic News Writer
Republican from Binghamton, “I just don’t think the majority care too much about it at this time because they’re out of work, they want to see the state reduce spending, and they are having a hard time making ends
New York City Council Speaker Christine Quinn called the defeat “a loss for every family in New York”. Wednesday, Dec. 2, the New York “This is a loss for every lesbian, gay, Senate shot down a bill proposing to legalbisexual, and transgender New Yorker,” she ize gay marriage by 38 Photo courtesy of the New York Times continued. votes to 24, a margin Those who opposed which was much wider the bill celebrated. than previously Maggie Gallagher, presexpected. ident of the National This closely folOrganization for lows the overturning of Marriage, which leads a similar piece of legisopposition in Albany, lation in Maine last told the Washington month. The bill Post, “I think you put it required 32 votes to all together and it most pass, falling eight likely spells the end of votes short. the idea that you can Some senators pass gay marriage demwho voted against the ocratically anywhere bill told the New York else in the United Times that the public is States”. worried about the New York would economy and was have been the sixth state NY Gov. Paterson visits the Senate chambers after the vote wary about the state to pass gay marriage redefining marriage. The New York Times meet. And I don’t mean to sound callous, legislation, along with Connecticut, Iowa, also said that the legislation is basically but that’s true.” Massachusetts, Vermont, and New dead until 2011, when a new Assembly is The bill’s sponsor, Senator Tom Duane Hampshire, whose laws take effect January elected. (D-Manhattan), said “I'm angry, I'm disap- 1. Reactions to the bill’s rejection were pointed, I'm sad, I'm let down, I'm betrayed strong. “Certainly this is an emotional issue - but I am not going away.” Duane is the Contact Morgan at and an important issue for many New only openly gay member of the senate. email@example.com Yorkers,” said Senator Tom Libous, a According to the Los Angeles Times,
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Graduating Domestic News Editor Says Goodbye to Readers By Steven Riedel, Domestic News Editor To the readers, Nearly two years ago I was approached by the International News editor about my interest in writing an article for this newspaper. I decided to give it a chance and for my first article in the coming issue I wrote about America’s military struggles in Iraq. My initial decision was due in part to the editor being a good friend. Since then, my continued involvement has been a direct result of the relationships that I would soon form with the members of the paper and my desire to produce a quality publication. With the expansion of the newspaper, I eventually stepped into my current role and for the last year and a half I have been Domestic News editor. In that span of time, events of varying subject matter and importance have occurred in the United States. But despite the knowledge and experience I have gained in my position, I can only offer simple advice. The world and the lives we live are constantly changing and the best thing we can do is remain true to ourselves. Understand your priorities and when you come to realize them be prepared to adapt and constantly work in pursuit of them. These principal beliefs have sustained me over these years and they will be a source of strength in the coming years. The Stillman Exchange has also transformed over the years and all have been for the better. But room for improvement will always exist and it is my hope the paper will continue to grow and strive to be a complete source of information for its readers. I am optimistic and excited to witness these changes. The time for me to move on to the next stage of life, however, has quickly arrived and I am truly excited for what the future has in store. I am grateful for the opportunity I had to be a member of this paper. The memories, lessons learned, and personal relationships I have had with many amazing people will be what goes with me on the next journey and I am certain I have become a better person for them. I offer the editors, writing staff, and readers my sincerest wishes for continued success and happiness in the future.
Contact Steven at Steven.firstname.lastname@example.org
GM CEO Resigns By Amanda Genabith, Domestic News Writer After only eight months on the job, General Motors Chief Executive Officer Frederick “Fritz” Henderson resigned on Tuesday, Dec. 2, and GM Chairman Edward Whitacre, Jr. became the actingCEO. Henderson and Whitacre were selected by the Obama Administration in March and June, respectively. Henderson replaced GM CEO Rick Wagoner who served for eight years and was with the company for 30
years prior to that. A definititive reason was never cited for Wagoner’s resignation. Now, eight months later, Wagoner’s replacement is also resigning with unclear explanation. Possible reasons cited for Henderson’s resignation include that his vision for GM not match that of the board or Whitacre. Others speculate that his resignation is rooted in deals regarding Saab, Saturn, and Opel, GM’s European brand, that fell through. Penske Automotive Group was expected to acquire Saturn but they pulled out in September. In addition, Henderson had
made a deal with a Swedish luxury car brand Koenigsegg for them to buy the Saab brand. Now, GM is still looking for a buyer. Whitaker, the former CEO of AT&T, Inc., it appears, intends to make a quick transition, and has already made several changes in company structure and leadership. He has promoted many younger executives to company-wide leadership positions, while consolidating the sales and marketing divisions. He spoke to reporters saying “Henderson has done a remarkable job in
leading the company through an unprecedented period of challenge and change. While momentum has been building over the past several months, all involved agree that changes needed to be made.” When asked if the White House was aware of the decision to change CEO’s, since they are the largest stock owner of GM, they responded that “this decision was made by the Board of Directors alone,” and reiterated that they never intended to be involved in GM’s day-to-day activities. Contact Amanda at email@example.com
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TUESDAY, DECEMBER 8, 2009
Honduras Endures Presidential Woes
China’s Response to H1N1: “More about Public Image than about Public Health”
By Raphael Baseman, International News Writer
...continued from page 1
On Wednesday, November 2, Honduras’ Congress voted overwhelmingly not to allow the reinstatement of ousted President Manuel Zelaya. The vote was held under a deal brokered by the United States, and agreed to by both the current interim president Roberto Micheletti and Zelaya on October 29. Zelaya has been charged with acting unconstitutionally in attempting to initiate a vote to begin a constitutional referendum that would lead to the removal of the one-term limit on running for the Presidency. This referendum had previously been declared unconstitutional by the Honduran Supreme Court. Zelaya was removed in a military coup on June 28, the day the referendum was to be held, and is currently living in Brazil’s embassy to Honduras. The UN, Organization of American States, EU, and the US all rejected the summer coup as illegal and demanded the immediate reinstatement of Zelaya. Brazil and several of Honduras’ South American neighbors have refused to recognize Honduras’ new government. They feel the acknowledgement of an election as a result of a coup may lead to dangerous precedents in the future. On Sunday, Conservative Porfirio Lobo was
Perception has played such a major role in the Chinese policy towards H1N1 that Dr. Huang refers to it as “more about public image than about public health.” According to Dr. Huang, incidents such as the Chinese ban on US exports of pork to China are not unique, but what is interesting is this is quite evidently “selfserving protectionism” and has nothing to do with the flu. In fact, on May 1, the Chinese Minister of Agriculture admitted that eating pork is not going to spread the virus. Rather, this is “all about the trade disputes between the United States and China.” Indeed, prior to the H1N1 flu outbreak, China had deployed several arguments to try to keep out American pork. The more worrisome issue to the Chinese response of H1N1 is the allegations of improperly reporting swine flu related deaths. China has reported over 10,000 more confirmed cases of swine flu than in the United States, yet the number of reported deaths is less than 5 percent the number reported in the US. Dr. Zhong Nanshan, director of Guangzhou's Institute of Respiratory Diseases, stated that he believed Chinese officials were covering up deaths due to swine flu in order to appear successful in
their handling of the virus. In an interview with The Stillman Exchange, Dr. Huang agreed with this assertion, noting that “for a long time there was zero case fatality—this was very hard to believe.” Dr. Huang
Photo courtesy of China Daily Student receives H1N1 vaccination at an elementary school in China.
expressed this doubt as early as September but few believed him, even representatives of WHO were skeptical of his thoughts. Now, even the Chinese government has implied there was widespread misreporting, or under reporting, by local authorities and have issued directives requiring these authorities to use “international standards” when reporting fatalities. Dr. Huang points to the October 1 celebration of the 60th anniversary of the People’s Republic of China as part of the reason for the under reporting of fatali-
ties, as the government essentially did not want these numbers to “cause a panic and ruin its party.” The government could have been more active in ensuring that local authorities were reporting accurately and promptly, but rather chose to project a nice domestic image during this pivotal time. Distribution of the swine flu vaccine is one of the main areas in which a major difference is seen between the US and China. Both countries have pushed the public to receive the vaccination but as the side effects rise, the public is reacting to issues concerning the vaccination differently. The Chinese public has been more hesitant than the American public about receiving the vaccine or allowing their children to be vaccinated. When polled by Beijing Municipal Health Bureau, 40 percent of people said they did not want their children to get vaccinated. Shortly after this public poll two recipients of the vaccine perished. As Dr. Huang notes, “even one case of fatality is going to deter a disproportionally high number of people from getting the vaccine.” This, he says, is in part due to the inherent distrust the Chinese people feel towards their government. Contact Amelia Snoblin at firstname.lastname@example.org
NATO: Contributing Anything but Clarity in Afghanistan Photo courtesty of CNN Honduran resident submits his vote during the election to elect a new president.
elected to the Presidency, and the vote of 125 to 111 prevents Zelaya from returning to fulfill the last two months of his Presidential term. Lobo is scheduled to take office on Jan. 27 from the current interim President Roberto Micheletti. Lobo had narrowly lost to Zelaya in their 2005 election but now claims the presidentially victory. US assistant secretary of state to the Western Hemisphere, Arturo Velenzuela, congratulated Lobo on his victory and declared US support for the elections, but was guardedly optimistic. “He will be the next president of Honduras. We recognize those results, and we commend Mr. Lobo for having won these elections.” Velenzuela also told reporters, “While the election is a necessary step, it is not a sufficient one. It's not the last step.” Zelaya rejected the Congressional vote categorically. He states, “This decision ratifies a coup and condemns Honduras to living in illegality.” He had also called for a boycott of Sunday’s election and refused to recognize its result, saying, “I’ll stay in the Brazilian embassy fighting for this dictatorship to be condemned, and now against the electoral fraud committed on Sunday. The elections are no solution for the country.” On Monday, Lobo told CNN he would seek to bring the country back together. “Nobody wins with this situation. We all lose. It’s unjust to maintain a polarized country.” When asked if he would meet with Zelaya he said, “I will do all that is necessary to bring peace to Honduras.” Lobo has stated his intention to form a unified government and has asked other nations to “understand the Honduran reality and stop punishing the country”. Contact Raphael at email@example.com
By Danielle Polak, International News Writer
Netherlands have already decided to begin pulling out their 5,000 troops over the next two year, further complicating the number of non-US forces truly stationed in Afghanistan. While NATO’s
about troops levels based upon the discussion which takes place there, not Obama’s recent speech. They have been asked to add 3,500 troops in two countries where the war is particularly unpop-
phased out given General McChrystal’s plan for foreign troops with an Afghan counterpart. On December 1, 2009, It seems that much of the world watched President NATO’s preoccupation Obama announce plans at regarding troop commitments West Point Military Academy is due to the exit strategy. for a new surge strategy in The problem here is the Afghanistan and now the ambivalence of what peoworld’s reaction and subple actually want to hear. sequent strategies are a While there was no masprimary focus of attention. sive, wide scale pull out NATO allies do not appear being offered by the to be in sync with each Obama speech, Clinton other or the US as mixed spent much of her time in messages are being sent Europe explaining that over discrepancies from July 2011 was the begintroop commitment to exit ning of a withdrawal, not a strategies. date by which all forces While the Obama will be removed. It seems administration is temthat other countries are porarily satisfied with Photo courtesy of The NY Daily News wary of a withdrawal NATO’s promise of 7,000 troops, a breakdown of the Troops in Afghanistan, where NATO has promised to send an additional 7,000 which they fear could lead to a revival of extremist numbers may not fully secretary general, Anders ular and a hard sell to the pubforces in Afghanistan, but please the Obama administraFogh Rasmussen, claims that lic. they are at the same time tion’s request for assistance. 25 countries will take part in While NATOs part in the unwilling to contribute more The NY Times alleges that achieving the 7,000 many troop increase remains troops, especially when it 2,000 of the 7,000 troop countries have yet to publicly unclear, the actual role of seems as if the commitment is increase are currently staannounce their planned conthose troops that have been open-ended. tioned on the ground in promised makes it more diffiAmidst all the confusion, Afghanistan and have been tributions. Some of the most imporcult to assess the real contrithe only thing that seems cerfor several months. The 500 tant countries have not directbution. The capacity in which tain is that troop levels and a troop increase from Britain ly responded to President forces have been promised true agreement between counand the Italian contribution of Obama’s speech and are could also factor in to the tries on strategy and commitan additional 1,000 was insisting upon waiting until strategy as there was previment remain unclear. thanked by Secretary of State conference on ously a distinction between Clinton and is part of what the the Afghanistan held during the role of a combatant and Contact Danielle at Obama administration’s temJanuary in London. Germany the role of a trainer. Clinton firstname.lastname@example.org. porary contentment with edu NATO contributions is based and France have both stated claims the difference between they will make their decisions these two tasks is being upon. Canada and the
TUESDAY, DECEMBER 8, 2009
THE STILLMAN EXCHANGE
Russian UC Rusal Restructuring Debt By Ian Mehok, Money & Investing Editor On Thursday, Russian UC Rusal, the country’s leader in aluminum production, declared it was restructing its $16.8 billion in debt. According to a statement released by Rusal, the debt restructuring will have several facets, including a two-step payment to its 70 different international lenders. This part of the restructuring will take the longest, with the first portion lasting four years. Along with the moves in its international lending debts, Rusal will also restructure debt with Russian lenders and investors. This includes $2.1 billion to specific Russian lenders paid out over four years, with an option for three more years. One interesting aspect of the restructuring plan is the decrease in major shareholder Oleg Deripaska’s stake in the company. The billionaire executive, who now holds more than 56 percent, will give a portion of his stake to Mikhail Prokhorov’s investment company, thus restructuring the nature of the loans he has made to Rusal. Prokhorov, who runs Onexim investment
By Tristan Hugo-Webb, International Business Writer
Photo courtesy of The Guardian
Billionaire and major shareholder of UC Rusal, Oleg Deripaska, sits left of Russian Prime Minister Vladimir Putin. company, currently has loans of $2.7 billion extended to Rusal. The whole entire plan leaves UC Rusal an opening to finally declare its Initial Public Offering, which is now slated for the end of December. The company has already spoken of plans to launch in Hong Kong, and it appears this debt restructuring
was the last order of business. The company will be awaiting news about its application for initial public offering, and barring any flaws in its restructuring plan should be a major publicly traded player within weeks. Contact Ian at email@example.com
Dubai Debt Shakes Global Markets; UAE ...continued from page 1 If something were to occur, it would almost certainly come after new jobs data is released this week, when investors might use that as a sign of a larger global problem. After a five point loss last Friday, Hong Kong’s market index rose three points over the weekend. The Tokyo, Shanghai, and India markets also saw increases. The increases do not indicate a
Thomas Cook Looks Set to Soak up the Sun
healthy market, however, since the volatile aftermath of Dubai World shows instability. If Dubai were to default on its debt, it would be harmful for the growth of emerging markets out of the economic slump. The larger markets that are invested in Dubai’s growth would lose money, and then would have trouble in their own economies, let alone the emerging markets that they assist. Since Dubai is a government-owned holding company for the UAE, there have
been concerns as to whether the government will back its debts. The emirate’s Department of Finance said responsibility should be placed with the investors who put interest into the projects. This idea would mainly affect the European banks HSBC Holdings, Royal Bank of Scotland and Standard Chartered.
One of the largest and oldest travel and holiday companies in the United Kingdom, Thomas Cook, has announced that the company has seen a sharp income rise despite predictions from economic experts that travel companies would see record losses due to the economic downturn and the recent swine flu outbreak. However, from the end of September of last year, Thomas Cook has seen their profits rise from $38.9 million (£23.7 million) to $95.3 million (£38.9 million) before tax in part thanks to strong growth in vacation sites in Turkey and Egypt. “We have delivered a strong performance in 2009, achieving full year results ahead of market expectations,” announced the company’s spokesperson. But the recession and the swine flu outbreak did not go unnoticed, according to Thomas Cook. Cook claims that the company lost at least £12.6 million or $20.7 million because of cancelled booking and reservations among other costs. Looking forward, the future also appears somewhat sunny for Thomas Cook with the company at least 50 percent booked for the winter. However, this is down 11 percent, although the losses have been offset with overall vacation prices up 6 percent. Perhaps an indication of the economic turnaround, Thomas
Contact Laura at firstname.lastname@example.org
Trail-blazing Chile Carries the South American Continent Into the OECD By Rachel Rosenstrock, International Business Writer
set forth by the OECD. Bachelet called Chile's admittance into the organization "very good news" and said it shows the South American nation was recognized as having solid economic man-
President Bachelet sees Chile’s admission as “an international seal of approval” that confirms their status as a developed nation. Chilean President Michelle Bachelet In addition to Chile, Estonia, Israel, announced December 2 that Chile will be Russia and Slovenia applied in 2007 to admitted into the Organization become full members of for Economic Cooperation and the OECD. Development (OECD) later this The incorporation of month, becoming the first South Chile into the OECD came American country to join. soon after the OECD This admittance into the OECD released predictions for 1.6 comes after Chile began the percent per capita growth process in 2007. To attain memin the Latin American bership, Chile was required to economy for 2010. This reform many of its economic report asserts Latin policies involving the areas of America is rebounding corporate governance, exchange from the financial crisis at of tax information, and legal a rate greater than most responsibility. developed countries and is An official statement from doing so “without comprothe OECD regarding Chile’s mising its significant membership is expected on progress towards its longPhoto courtesy of the OECD December 15, but President term development goals.” Bachelet publicized at the IberoChile in particular has been President Michelle Bachelet Speaks at an OECD press conference in May American Summit in Portugal, applauded for its responsi“All the signals we've received clearly indi- agement. With Chile's entry, Bachelet ble fiscal policies and building up of forcate that on December 15, Chile will argues “more jobs will be generated and eign reserves. become an active member of the OECD.” more wellbeing will be created.” The OECD is currently made up of 30 Chile’s congress ratified the final permanent states. Member nations are pending legislation concerning the Contact Rachel at known for their high economic standing exchange of international tax information email@example.com two weeks ago, fulfilling the requirements and democratic principles.
Photo courtesy of UK gov. Thomas Cook has been in the travel business for over 150 years
Cook has seen a steady stream of bookings for the summer of 2010. “Although it is still early in the cycle, bookings for summer 2010 are also in line with our expectations,” said Thomas Cook chief executive Manny Fontenla-Novoa. These promising figures have caused Thomas Cook to look at their current showing on the London Stock Exchange. The company recently gained full control of their stocks after the bankrupt German retailer Arcandor was forced to sell their remaining stocks. There have been internal discussions within the company on whether or not to raise their dividend. The main proposal being discussed is that Thomas Cook would raise their dividend by 10 percent to 10.75 pence.
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