Ethics
Sports Business
International News
Is it ethical to provide material aid to Lybian rebels? See p. 8
Advertisers look for alternatives to NFL in event of a lost season; is anything comparable? See p. 10
Civil unrest in the Middle East reaches Syria. See p. 15
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Utah’s Immigration Law Raises Questions on National Policy
TUESDAY, APRIL 5, 2011 - VOL. 7 NO. 12
Google Chooses Kansas City, Kansas to Test Google Fiber Gigabit Network
By Alina Fernandez, Domestic News Assistant Editor Utah passed an immigration bill in March that would allow undocumented workers to apply for work permits. The new law comes as a surprise to many because of Utah’s strong conservative tendencies. The law lays out provisions for illegal immigrants who pass a criminal background check and pay a fine of up to $2500 to obtain two-year work permits. It also requires that police check the immigration status of anyone arrested for a serious misdemeanor or felony. The law would also allow Utah citizens to sponsor two foreign individuals or a whole family to live in Utah. The new law also acknowledges the federal government’s role in authorizing immigration policy: it gives the governor until 2013 to acquire a waiver from the federal government for the guest worker program. Despite the provision for a waiver, the law will go into effect in 2013. The president of the American Immigration Lawyers Association, David Leopold, said Utah’s new laws were “another ill-advised attempt by a state to regulate immigration.” He added that the bill “dangerously treads into a policy area that is the sole province of the federal government.” In 1986 a law was passed that made it illegal to hire undocumented immigrants; this coupled with the Constitution’s supremacy clause place the issue of illegal immigrants and their employment firmly in the hands of the federal government. By applying for a waiver for the bill, Utah is trying to avoid the issues that arose when Arizona tried their hand at immigration reform. The Justice Department sued the State of Arizona on the grounds that S.B. 1070 gave the federal government exclusive control of immigration policies. ...Continued on page 13
INDEX Money & Investing.............. 2 Stillman News...................... 6 Ethics ................................... 8 Editorials ............................. 9 Sports Business ................... 10 Domestic News..................... 13 International News.............. 15 International Business........ 16 Image courtesy of Extensions Demo
By Steven Paramo, Money & Investing Writer It has been nearly a year since Google (NASDAQ:GOOG) announced their proposed plan of providing a community with internet access at speeds of one gigabit per second, which is more than 100 times faster than what most American consumers have at their disposal. Various cities tried to persuade Google to choose them, with cities such as Topeka,
Kansas informally changing their name to “Google” for a day, and Google humorously responded by changing their name to “Topeka” last year on April Fools’ Day. After making many metropolitan areas wait anxiously, Google finally opted for Kansas City as the lucky recipient to test their new high-speed network, leaving the other communities disappointed with the outcome. However, this is not the Kansas City that features big name sports teams such as
the Kansas City Chiefs and the Kansas City Royals, because both of these teams are based in Kansas City, Missouri. Instead, this Kansas City is located in the state of Kansas, coincidentally located only a few minutes away, but it has a significantly smaller population of 145,786 people compared to its cross-state rival which hosts a population of 459,787. Once they get the necessary approval from the city’s Board of Commissioners, Google declared that they plan on launching their service, which is slated for sometime in 2012. They are going to be working alongside local organizations such as KCNext, the University of Kansas Medical Center, and the Kauffman Foundation to help create the gigabit applications of the future. According to the official Google blog, their goal was to find a location where “we could build efficiently, make an impact on the community and develop relationships with local government and community organizations,” declared Milo Medin, Google’s vice president of access services. In a news release, Mayor Joe Reardon expressed that Google’s new high speed network will help young people in his community “fully realize their potential in a global economy.” He went on by stating that “the wonderful diversity of our community, neighborhoods and industry make Kansas City, Kan., a microcosm for the rest of the country. We feel Kansas City, Kan., is the perfect location for Google to launch its fiber project.” ...Continued on page 4
St illm an Hos t s S ocrat ic Pan el on C ris is Man agem en t
By Beverly Makarios, Stillman News Assistant Editor
As part of the Integrity and Professionalism Convocation, The Stillman School of Business hosted the Socratic Panel of Crisis Management, an entertaining and informative experience that illustrated the potential dynamics that take place in a company during a crisis. Held on Tuesday, March 29, the Stillman community and invited guests witnessed an engaging and humorous panel show the challenges associated with managing a crisis and demonstrating, via role play, the various roles that exist and the types of
decisions that are made in crisis management. A Socratic Panel of leaders from the realms of corporate and media demonstrated how businesses navigate a hypothetical crisis scenario. The panel was unique in that the audience learned how to effectively respond to a crisis by observing a group of experienced counsel and top corporate executives in action. The audience observed the interaction between the different corporate roles, the questions asked and the processes employed in crisis management. Acting Dean of the Stillman School, Joyce Strawser, provided a welcome and
opened the unique presentation. Dean Strawser comented that the event is a “Stillman tradition to come together as a community to reflect on our core values: integrity and professionalism.” Keynote speaker and Socratic Leader, Richard Torrenzano got the crowd to their feet and waving their hands in the air as he demonstrated the key message of the night: leadership! “In a crisis, leadership is what’s important. Not management,” said Torrenzano.
broke an earlier agreement requiring BP to inform AAR of any other oil and natural gas deals with rival Russian firms, was first blocked in February by a UK High Court injunction. The injunction placed the BP-Rosneft deal on hold until the dispute could be resolved by an unbiased arbitration settlement panel. While BP was disappointed by the ruling, a statement released by the oil giant looked to the future: “BP looks forward to finding a way to resolve its differences with its Russian partners to allow these important Arctic developments to pro-
ceed in the future.” Formed in 2003, TNK-BP has seen a steady rise in profits since its formation, with the company making a record $5.8 billion in 2010, a rise from its initial profit of $2.7 billion in the company’s first year. TNK-BP was created through the merger of joint assets in Russia and Ukraine, and has become Russia’s third largest oil company with BP and the AAR consortium each holding 50 percent of ownership.
...Continued on page 6
BP Frozen Out of Arctic Oil and Gas Deal
By Tristan Hugo-Webb, International Business Writer A Swedish arbitration panel in London has ruled that the recent Arctic exploration deal struck by British Petroleum (BP) and Russian state-owned company Rosneft is a direct violation of a previous agreement between BP and TNK-BP, a company set up by BP and Alfa-Access-Renova (AAR) to gain a larger market share in Russia’s rich oil reserves. The dispute, brought by shareholders in the AAR consortium who claimed that BP
...Continued on page 16
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TUESDAY, APRIL 5, 2011
Money & Investing
Company Comparison
This Week’s Poll Question:
Graph courtesy of Google Finance
How often do you purchase a new cell phone? A: Whenever the next best thing comes out B: Every time my contract runs out C: Never, I still have my brick D: If my old phone breaks, I’ll get a newer phone
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Money Funny Corner
U.S. Gov. to Make Large Tech Stock Purchases to Boost Economy By Danny Jones, Money & Investing Writer
Last Weeks Poll Question: Graph courtesy of Google Finance
Do you believe nuclear power plants in the U.S. should be shut down because of what is happening in Japan? Yes, they are too dangerous (14%) Yes, they should be moved to remote locations (29%) No, it was an unlikely accident (14%) No, they should update older power plants (43%)
Sector Summary
NEWS BRIEFS
Courtesy of Google Finance
Earnings Stock to Watch: Sun Hydraulics Corp. Graph courtesy of Yahoo! Finance
• Lloyd Blankfein, the CEO of Goldman Sachs Group Inc., saw his 2010 compensation rise to $14.1 million from just over $1 million in 2009, according to an Associated Press analysis of data filed with regulators on Friday. • The Labor Department said the unemployment rate fell to 8.8 percent, the lowest since March 2009, as companies added workers at the fastest two-month pace since before the recession began. Approximately 216,000 new jobs were created last month, offsetting layoffs by local governments. Economists had expected the unemployment rate to remain at 8.9 percent. •Nasdaq is teaming up with IntercontinentalExchange to make an $11.3 billion counteroffer for the parent of the New York Stock Exchange. • Manufacturing activity cooled off a bit last month after expanding in February at the fastest pace in nearly seven years.
World Currencies Courtesy of Google Finance
Two weeks ago, President Obama and the U.S. Government made an extremely bold decision to, once and for all, get our country out of the worst economic funk since the Great Depression. Using the age old “spend money to make money” slogan, the government will be borrowing $500 billion dollars from China and using all of it to purchase stock in Google Inc., and Apple Inc. President Barack Obama commented, “Have you seen the new iPad?” when asked why on earth he would invest so heavily in Apple and Google. “It’s phenomenal. It does everything my iPhone does, except it’s much larger so I can’t carry it around, and it can’t make phone calls like my iPhone can. But other than that, it’s the most futuristic appliance I’ve ever owned.” Although both companies have shares that fluctuate on the stock market, the technology giants are in the green much more often than in the red. With facts like these, you cannot go wrong. “Investing in Google was my idea,” stated Vice President Joe Biden. “Mr. Obama never lets me do anything around here and just keeps telling me to eat my vegetables.” However, Biden also said that Obama promised him a say in the second company to invest in if “he went to bed before 10 p.m. every night this week.” “This is it, the single greatest idea I’ve ever had,” claimed President Obama when speaking about his new investments, “No longer will our country be in debt, in the next two months; our net value is predicted to be higher than ever!” The government may have just found the perfect method that will dig us out of the massive sized hole we’re in. Increasing the tax rate did not seem to work. Increasing the amount of spending did not seem to work. Even trying to force West Virginia to leave the 50-state union did not seem to work. As long as people keep buying all of the ‘amazing’ inventions that Apple produces and keep using Google to do their homework, America may be saved. The Stillman Exchange ran into Steve Jobs, the CEO of Apple Inc., and asked him how he felt regarding the U.S. investing billion dollars in his company. In response, he started foaming at the mouth and was completely speechless. Now that’s patriotic. In a related story Greece will be using the same tactic to save their failing economy; the indebted nation will be using the remainder of its cash to buy stock in a company they can afford: General Motors Inc. This is great news for a rebounding American company. Contact Danny at daniel.jones@student.shu.edu
All information contained in this publication is not intended to substitute for the advice of a professional financial planner. It is meant only for informational purposes. The Stillman Exchange assumes no liability for any investment losses incurred as a result of information provided in this publication. Readers should consult a professional financial planner.
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Money & Investing
TUESDAY, APRIL 5, 2011
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BP S h ares Fall Tw o Percen t as C h ief Execu t ive May Be C h arged w it h Man s la u g h t er By Matthew Magi, Money & Investing Writer U.S. federal authorities may charge Tony Hayward, former Chief Executive Officer of BP, with manslaughter for criminal negligence connected to the oil rig explosion which occurred on April 20 of last year. The explosion not only caused a devastating oil spill in the Gulf of Mexico, but also took the lives of 11 employees on the rig. In most cases involving work-related deaths or disasters, the company is charged with the crimes and pays the price of the damage. In this case, charges may be made against Hayward himself as well as a few other employees of BP who may have made decisions which were unsafe and placed the oil rig at risk. This extra step, of prosecuting the individuals in charge of the company, is being taken in order to deter future repetition of the disaster. Jane Barrett, a law professor at the University of Maryland, said to Bloomberg, “You’ve got to prosecute the individuals in order to maximize, and not lose, the deterrent effect.” The negligence of the supervisors in not implementing the proper safety measures was the main cause of the explosion, which took the lives of BP employees.
Photo courtesy of trendyflorida.com
BP executives may be charged with criminal negligence as a result of not implementing proper safety measures that could have prevented the explosion of Deepwater Horizon.
In the weeks before the oil spill, BP was warned that the design of the oil rig could allow some oil to leak. BP was told to use 21 centralizers to ensure that the cement which seals the well was evenly distributed; the company used only 6 centralizers. In addition, test results regarding the strength and stability of the cement seal were also misinterpreted. This allowed drilling despite doubts about the seal’s ability to contain the oil.
All of this evidence could be used against top executives at BP to prove negligence in allowing the explosion and the ensuing spill to occur. However, proving negligence is not enough to convict the individuals of manslaughter. Criminally Negligent Manslaughter is constituted by a homicide resulting from the taking of an unreasonable and high level of risk, or when one fails to perform a duty of some kind. If Hayward is charged with
manslaughter, the courts will have to prove that he was unreasonably negligent and failed to perform his duty to follow safety procedures in order to convict him. This could be more difficult than it appears, however. Anthony Sabino, business professor at St. John’s University, explained to CNN the substantial differences between criminal negligence and gross negligence. Sabino cautioned that if prosecutors choose to act, they should have “substantial proof before they bring such a serious charge.” On the financial side of the issue, BP’s stock price dipped 2 percent in response to the possibility of the charges. Investors are uncertain about the company’s future and how these charges may affect it. If the past is any indicator, it will likely take a long time before investors regain confidence. Almost a year after the disastrous explosion, BP is still coping with the consequences of the poor decisions that lead to one of the worst environmental catastrophes in U.S. history. We can only hope that this will deter other companies from making similar mistakes in the future. Contact Matthew at matthew.magi@student.shu.edu
EBay to Buy GSI Commerce for $2.4 Billion By Christian DiCarlo, Money & Investing Writer EBay, Inc. (NASDAQ: EBAY), one of the nation’s largest online retailers, announced last Monday that it is going to buy GSI Commerce for $2.4 billion. This purchase could make eBay an even larger and more expansive company than it already is. EBay hopes that they will now be able to attract buyers and sellers from all around the world. GSI Commerce runs websites for many other companies, such as Toys “R” Us, Bath & Body Works and American Eagle Outfitters (NYSE: AEO). GSI also handles the packing and shipping for these corporations. GSI shares recently climbed 51 percent from $9.82 to $29.20 per share as a result of this announcement. The acquisition of GSI could help eBay compete with Amazon, whose stock has been increasing at a higher rate because of
its ability to sell products to large, dominant corporations. Last year, eBay’s sales rose five percent to $9.2 billion, while Amazon’s increased 40 percent to $34.2 billion. Clearly, Amazon has the edge on eBay; this acquisition is an attempt to change this. Along with the acquisition, eBay has been trying to boost sales by redesigning the websites homepage to make it more appealing and easier to use for customers. The online auction site is also making their search engine better. EBay’s Chief Executive Officer, John Donahoe, said about the company’s willingness to expand: “Commerce is at an inflection point where the lines between online and offline commerce are blurring. We see retailers of all sizes; merchants of all sizes, looking for partners that can help them grow their businesses.” He believes that GSI is a perfect fit for his company’s efforts to help retailers grow. Donahoe also expects some of GSI’s retailers to start selling their
goods on eBay. Analyst Brian Walker from Forrester Research said that the purchase of GSI is a good one for eBay because it adds diversity to its business and provides it access to larger businesses that would not normally sell products on the website. He continued to say, “It makes them a solution for large, regular-price retailers and consumer brands that would not see eBay or PayPal as solutions.” The $2.4 billion purchase of GSI Commerce is eBay’s second largest ever. The firm bought Skype in 2006 for $2.6 billion, which it has already divested. EBay will also place ShopRunner, a members-only shopping service, and Rue La La into a new holding company run by the founder of GSI Commerce, Michael Rubin, and provide them with a loan of $467 million. The decision to divest its majority stake in Rue La La is an interesting one consider-
ing the company’s struggles. EBay has shown interest in the field when they bought Brands4friends, a German competitor, last year for $200 million. The deal, which is expected to close later this year, includes a 40-day period in which GSI may consider rival bids. Contact Christian at christian.dicarlo@student.shu.edu
A u t o I n d u s t ry Feels I m p a ct o f Ja p a n ’s D is as t er By Scott Watson, Money & Investing Writer The earthquake that hit Japan took many lives and destroyed tracts of real estate. Although it has been difficult to examine anything but the tremendous loss of life, in the weeks that have followed the disaster, companies and industries are feeling the aftermath. The auto industry, in particular, is feeling the burden of the disaster, because a large percentage of microchips used in cars and trucks are produced in Japan. In the U.S. specifically, auto manufacturers have slowed the production of cars; in some cases, car companies have even temporarily stopped producing cars as a result of this supply shortage. Besides the microchips, Japan provides manufacturers with other electronics, sensors, rubber, and forged metal parts. Overall production volume is not likely to be affected by the plant shut downs and the supply shortages, but it could affect profit margins in a negative way. Many of the essential parts that are
Photo courtesy of sikkimonline.info Japanese-based automakers such as Honda have felt the aftershock of the disaster as thousands of vehicles that were ready to be shipped were washed away by the tsunami that swept the country.
installed in cars were already scarce in the U.S. before the earthquake, causing some companies to close down plants. For example, Ford Motor Co. has been suffering from a shortage of these essential parts for months. They have already halted production at two plants which produce the
popular Ford F-150 pickup truck. The disaster has hindered their ability to recover from this and reopen the factories that were closed. General Motors has had similar problems, causing them to close a plant in Shreveport, Louisiana. This plant produced
small trucks and was closed to ensure that parts were available for other models. The microchips that the Japanese companies produce for the auto industry are not solely made for cars and navigational devices; the manufacturers provide parts to many companies who operate in consumer electronics. The bad news for the auto industry is that these needs will likely be met first. This would further slow the production of automobiles in the U.S. In Japan, Toyota Motor Co. and Honda Motor Co. have continued to shut down plants as the recovery continues. Some of these production centers were in quake affected areas and Toyota is trying to get them operational as soon as possible. With continued halts in production and companies struggling to gain access to the essential materials required for vehicle production, it may be a few months before business continues as usual. Contact Scott at scott.watson@student.shu.edu
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TUESDAY, APRIL 5, 2011
Micros o f t ’s Ph on e t o S u rp as s iOS an d A n d roid b y 2015
Photo courtesy of PBX Phone
By John Cenzia, Money & Investing Writer The International Data Corporation (IDC), released a smartphone market report on March 29 which included a prediction that Microsoft’s Windows Phone 7 will surpass Android and iOS sales by 2015. Currently, Microsoft’s Windows Phone 7 is dead last in terms of market share. Google’s Android is currently on top with 39.5 percent while both Apple’s iOS-based iPhone and Research in Motion’s BlackBerry have around 15 percent market share. Symbian, Nokia’s smartphone operating system, is currently second to Google (NASDAQ: GOOG) with 20.9 percent market share. This is all about to change. Microsoft (NASDAQ:MSFT) recently announced a partnership with Nokia (NYSE:NOK), which will cause Nokia to abandon Symbian. Nokia has also been working with Intel on another operating system called MeeGo, which they also have decided to sideline as they focus on collaborating with Microsoft in developing and marketing Windows Phone 7. A similar strategy was employed by Motorola who struggled to create a marketable device to replace its popular RAZR. Instead of producing another phone independently, they implemented a third-party operating system, Google’s Android, resulting in their very successful Droid smartphone. According to Ramon Llamas, an analyst for IDC, “Microsoft has steadily lost market share... the new alliance brings together Nokia’s hardware capabilities and Windows Phone’s differentiated platform.” Nokia held a 33 percent share of the smartphone market in 2010. Although it has been down from 48 percent in 2006, Microsoft can still benefit from such a partnership since they only currently hold an insignificant 5.5 percent of the marketplace. This deal is the biggest reason why IDC believes that Microsoft is going to surpass other phones by 2015. They predict that the smartphone market will be 20 percent larger in 2015 as well, with uneven growth from each company. Google’s Android is expected to continue its rapid growth by the end of 2011, but over the next four years, it’s expected to slow significantly. Apple and Blackberry on the other hand, are simply expected to stagnate with minimal growth. The only platform that is predicted to see growth is Microsoft’s Windows Phone 7, which is predicted to hold 20.9 percent of the market by 2015. Though there are sound reasons and data to support this claim, it is important to acknowledge that the smartphone market is unpredictable. About half a year ago, IDC predicted that Android’s market share would rise to 25 percent by 2014. Android has already surpassed this figure. Android, the most popular OS today, only came to existence barely three years ago, so who knows what new advances in the smartphone market will be made by 2015? Contact John at john.cenzia@student.shu.edu
Money & Investing
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Possible Reform for U.S. Patent System By Amanda Bronson, Money & Investing Writer In order to reduce the number of patent applications, which totals over 700,000 annually, and to expand new innovation, the American Invents Act was passes by the Senate with a 955 vote on March 8, 2011. In turn, the House of Representatives is now crafting their own version of the bill. House Judiciary Chairman Lamar Smith introduced a revised version to the House of Representatives, which has some provisional differences compared to that of the Senate’s proposal. Smith commented that, “Our outdated patent system has become a barrier to innovation and invites lawsuits from holders of questionable patents seeking to extort millions of dollars from companies.” Many large technology corporations, including Intel (NASDAQ:INTC), Microsoft (NASDAQ:MSFT), and Apple (NASDAQ:AAPL), have been advocates of patent reform for years. These companies are tired of paying multimillion-dollar patent infringement settlements as a result of litigation. These vendors argue that companies holding questionable patents are easily able to collect large damage awards. One of the most disputed aspects of the new bill is the introduction of a “first-to-file” system. This would mean that the right to the permit of a patent for an invention would be given to the first inventor to file an application for protection, no matter the date of the invention. The current law is on a “first-to-invent” basis. This recognizes the earliest inventor as attaining rights to the patent, regardless if another person files a patent application or not. Another major controversy, if the bill is implemented, would be the stipulations of adding a third type of patent review in addition to inter partes reexamination and post-grant reviews. According to inter partes reexamination, patents could be challenged only on the basis of patents or printed publications. But due to post-grant reviews, patents can be challenged on more varied grounds. The proposed third type of review would also have special
Photo courtesy of The Washington Times
Lamar Smith, House Judiciary Chairman, supports the possible patent reform, calling the current system, “a barrier to innovation”.
procedures for business-method patents. This addition was not originally included in the version proposed by the Senate Judiciary Committee. However, this new legislation could be facing an uphill battle, with some lawmakers questioning whether the bill would have an adverse effect on U.S. innovation. Alexander Poltorak, the founder and president of the American Innovators for Patent Reform, argues that these new changes will hurt small-time inventors. Many smaller firms argue they will not have the ability to file patent applications early due to lack of resources and will be disadvantaged under a first-to-file system. The bill would also expand prior user rights, which allows a company that has already been using an invention without patenting it to continue usage after a different company patents it. Some representatives argue that expanding prior user rights will, in fact, discourage inventors from sharing their knowledge. America Invents Act, if approved, will undoubtedly mark the first major change to the patent system in over 60 years. Contact Amanda at amanda.bronson@student.shu.edu
U t ah Elim in at es Ta xes on t h e Ex ch an ge of Gold a n d S ilver C o in s By Doug DeMarco, Money & Investing Writer Have you ever thought that paying with gold and silver was a thing of the past? Well think again! This past week, Utah introduced a law that eliminates state taxes on the exchange of gold and silver coins. The move is the beginning of a major study on alternative forms of legal tender. The law also enforces a policy that allows gold and silver coins issued by the federal government to be recognized as legal tender in the state. The move is significant due to the fact that gold and silver will now be viewed as a form of currency in Utah. Because gold and silver will not be taxable by the state, it will be on the same playing field as paper money. The precious metals will no longer be seen as an asset or an investment in the eyes of the state. Despite the reintroduction of gold and silver as a form of legal tender, there is still a major catch. For example, imagine that you were to buy a gold coin that is worth $100. If you were to make a purchase with that gold coin, you could only buy $100 worth of products. The gold coin would not be judged by the market value of gold, but rather the face value at which it was acquired. This situation can potentially hurt the way a person may perceive the introduction of gold and silver as legal tender. The main purpose of the law is not to gain attention or to
return to the roots of interpersonal exchange. However, the purpose of the law was to take a shot at the Federal Reserve. Utah, as well as a few other states, believes that the Federal Reserve has abused its power to distribute money into the economic system. The continuous pumping of trillions of dollars into the marketplace has brought the value of the dollar down, which, in turn, hurts its purchasing power. According to Larry Hilton, the author of the Utah Sound Money Act, “This is a great development for the cause of sound money, which makes sense for Utah, and all Americans for that matter. It provides the means to opt out of the insidious ‘inflation tax’ that has deprived so many of vast amounts of personal wealth.” Jeffrey Bell, Policy Director for American Principles in Action, also has a strong stance on the new bill. She states, “Utah’s decision to endorse gold and silver as legal tender addresses the dysfunctional monetary policy at the federal level and fulfills the authority given to states in the Constitution.” Many states are looking for a way to increase their purchasing power, while at the same time decreasing the amount of power the central bank has over them. The introduction of gold as legal tender allows states to fulfill their wants, while protecting innocent Americans from the effects of deflation. Contact Doug at doug.demarco@student.shu.edu
Google Chooses Kansas City, Kansas to Test Google Fiber Gigabit Network
...continued from page 1 Faster internet services have led to a host of new innovative ideas over the past few years for not only average everyday consumers, but also for many businesses and corporate giants. Consumers have seen video games created such as World of Warcraft, which now consists of over 10 million users. In addition, online services such as Skype, iTunes and Facebook, among others, have turned internet-based offerings into a billindollar industry. Big businesses and corporations have also utilized faster internet services such as video conference calling, which can
allow users to communicate with one another via video and audio feed straight from a computer, cutting out the hassle of air travel and other transportation systems in order to attend faceto-face meetings. New innovations are key to economic expansion. Superfast internet service provided by Google may help spur another round of internet-based innovation just as broadband did when it created a range of new services. Google’s test bed in Kansas could be a key that spurs on new inventions to come. Contact Steven at steven.paramo@student.shu.edu
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I n crea s in g Fea r of a R eal Es t at e D o u b le D ip A s Hom e Prices Fa ll f o r S ix St ra igh t Mo n t h s By Kobbie Darkwah, Money & Investing Writer U.S. home prices declined for the sixth month in January, according to the S&P/Case-Shiller home prices index numbers released on March 29; an indication that the dreaded double-dip recession in the real estate market may be materializing. The drop was the most in over a year, with the index of property values in 20 cities falling by 3.1 percent from levels seen in January. New home sales, which contribute to GDP and are vital to economic growth, plummeted to a record low. There was also a 10 percent decrease in the median price of existing home sales, according to a Commerce Department report. Sadly, there are continuous price decreases in the forecast for the rest of the year as analysts believe that the housing market recession is far from over. This raises questions about the future of the American dream of home ownership. According to a release from the Census Bureau on Tuesday, 11.4 percent of all U.S. homes are vacant. Although there have been many indications of a sustained economic recovery such as increases in payrolls and manufacturing, the unemployment rate remains stubbornly high at 8.8 percent. This seems to be the leading factor behind declining home prices; when unem-
Photo courtesy of paidcontent.org
The prices of U.S. homes have been on the decline for the sixth month straight. This drop in January was the largest decrease in property values in over a year.
ployment is widespread, many individuals cannot afford mortgage payments. Thus, they lose their property to foreclosure. These ‘residential vacancies’ remain on the market for awhile, and depress property value as well as sales prices. For over two years, the Federal Reserve has kept interest rates extremely low, dramatically reducing monthly mortgage payments for new homeowners. However, this has not been enough to encourage potential buyers to purchase homes.
They are reluctant to do so as properties lose value and owners’ equity becomes virtually nonexistent. David Semmens, an economist at Standard Chartered Bank in New York spoke of falling prices saying, “They won’t turn around until you have consumers feel that housing is genuinely cheap and until they feel a lot more secure about their labormarket position.” Confronted with the growing number of unsold homes and declining prices, resi-
dential real estate developers are reluctant to boost construction because they cannot generate profits competing in such a market. The Commerce Department reported on March 16 that new home constructions slipped, more than forecast in February, to the slowest pace since April 2009; building permits also took a dive. Out of the 20 cities surveyed for the S&P/Case-Shiller index, Washington, D.C. and San Diego were the only two cities that recorded increases in home prices of 3.6 and 0.1 percent respectively. Washington’s substantial increase is said to be attributed to solid job growth among private and government employers. The labor market area generated 74,600 more jobs in February than it did last year: 8,000 in government, 5,000 in construction, the rest from sectors such as health, education and retail. Prices in Phoenix fell 9.1 percent compared with January 2010, more than any other city covered. Detroit dropped 8.1 percent and Minneapolis fell 7.6 percent. The big question now is how to stop the projected double-dip housing recession from derailing the fragile economic recovery. Contact Kobbie at nanakwabena.antwidarkwah@student.shu
Bes t Bu y R eeva lu at es Bu s in es s Pla n a s S ales Fa ll By Dylan Mortensen, Money & Investing Writer Low consumer demand has caused Best Buy (NYSE:BBY) sales to trickle down, as burning competition is on the rise. One would think that with the birth of the “technology era,” a store such as Best Buy would flourish. Cool new gadgets, 3-D televisions, smart phones and whatever else Steve Jobs has to offer should bring nothing but good news to Best Buy, right? Unfortunately, this is not the case. The Minnesota-based company experienced a 15 percent decline in stockholder value year-to-date; it has also experienced a 30 percent decline in share prices over the last 12 months. The electronic retailer’s net income for
the quarter was $651 million, which is down 16 percent from the same quarter one year ago. Last Thursday afternoon, Best Buy shares dropped 4.4 percent; this came shortly after Best Buy’s decision to close operations in Turkey and cut similar stores in China. In China, Best Buy will continue operating under its subsidiary, Five Star Appliance, which announced the opening of 50 new by next year. Best Buy struggles to contend with superstore retailers such as Target (NYSE:TGT) and Wal-Mart (NYSE:WMT), and e-retailers such as Amazon (NASDAQ:AMZN) and eBay (NASDAQ:EBAY). People are simply saving the hassle of dragging themselves to the store by doing all of their shopping online.
Apple (NASDAQ:AAPL) has further expanded their stores across the country, enabling more Apple users to try out and purchase the newest ‘cool’ devices. Low demand for flat screen televisions and PC laptop computers added to Best Buy’s declining share value. Television sales are projected to decrease in fiscal year 2012. The largest U.S. electronics chain also warned that for fiscal 2012, same store sales would be down close to three percent. With these ill-fated numbers, Best Buy is attempting to reconstruct an innovative sales approach. By the end of the year, Best Buy is planning to open 150 smaller-format mobile stores which would double its total. The company is also planning to cut space devoted to slower-selling products by half and to offer a wider selection of televisions
online. CEO Brain Dunn, while on a call with analysts, said, “We are exploring and redefining what the optimal big-box footprint is for us… we sell thousands of products and services in dozens of different categories. Applying a single pricing strategy across all of our products in categories would not be practical or rewarding.” On a more positive note, international sales continued to grow by rising four percent, which was due in part to the launch of multiple stores in new countries. Best Buy’s home office category produced strong results in the domestic market with a recent four percent growth. Contact Dylan at dylan.mortensen@student.shu.edu
Federal Reserve Releases Documents on Financial Crisis Loans By Stefano D’Urso, Money & Investing Writer The Federal Reserve, known as the central banking system of the U.S., was created in 1913 as a lender of last resort for banks across the country. The theory behind the Federal Reserve was to prevent a “run on the banks”, and ultimately, to prevent a severe panic. Last Thursday, the Federal Reserve released thousands of pages of documents detailing the sequence of events leading up to the financial crisis of 2008 in which banks used the Fed as a lender to cover reserves and cash on hand. This type of information has not been disclosed to the public in the Fed’s 98 year existence. There was external pressure to do so after a lawsuit filed by Bloomberg LP’s Bloomberg News and News Corp.’s Fox Business Network, as well as 2010’s new Dodd-Frank law went into effect requiring the Fed to disclose borrowings after a two year delay. While major banks attempted to keep the figures confidential, the Supreme Court threw out their requests. The documents contain loans made by the Federal Reserve between the periods of
Photo courtesy of www.flickr.com
The Federal Reserve released information that has never before been disclosed regarding loans provided banks during the financial crisis.
August 2007 through March 2010, outlining the entire crisis and the bailouts that went down as the largest in U.S. banking history. According to the Associated Press, the Fed lent out a whopping $110 billion through its discount rate at the apex of the financial disaster. During this time frame, most of the
leading commercial banks knocked on the Fed’s door for assistance. Citigroup Inc. (NYSE:C) borrowed a combined $3.85 billion in the span of two months during the summer of 2007. Bank of America Corp. (NYSE:BAC) took out loans totaling $1.5 billion in 2007, and $6 billion
in 2008. Rounding out the heavy hitters are Wachovia, which borrowed $29 billion in October of 2008, and Morgan Stanley, which borrowed $3 billion as well. Disclosing data of this magnitude has resulted in additional transparency of one of the most influential entities in the world. The Federal Reserve already has a reputation for being one of the most obscure organizations in the capital; Chairman Ben Bernanke pledged change would be made in regards to overall communication between the Fed and all surrounding parties of interest, including the general public. Lawmakers led by Vermont Independent Senator Bernie Sanders pressed to open up the Fed after complaints that it had been operating in secret for most of its history. It is likely that the Fed will be under greater scrutiny with the release of additional information regarding its activities. The Fed will now be under greater surveillance, with the public ready to pounce on its next bit of intelligence. Contact Stefano at stefano.durso@student.shu.edu
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TUESDAY, APRIL 5, 2009
Stillman News
THE STILLMAN EXCHANGE
St illm a n Tea m Tak es on J& J C as e C o m p et it io n By Tara Stafford, Stillman News Writer The 2011 Johnson and Johnson National Case Competition was held in New Brunswick, New Jersey last Friday. Seven Stillman students headed to compete against nine other prestigious schools for a first place prize of $3,000. The students chosen to represent Seton Hall University included Craig Cognetti, Lee Duan, Andrew Jewell, Vincent Lovasco, Lauren Schleuning, Tara Stafford and Brittany Tumminia. Other competing schools attending the Case Competition were Rutgers, Penn State, Rider, University of Illinois, University of Florida, among several others. The event began Thursday evening as Johnson and Johnson welcomed teams with a casual dinner and introduction ceremony upon which the groups proceeded to stay at the nearby hotel for the night. The next morning, teams were placed into three large groups that moved through sessions that
consisted of presentations, mock interviews and information regarding their Financial Leadership Development Program (FLDP). There were guest speakers from Johnson and Johnson that offered their experiences and the undergraduate positions that were available. Every employee made it a point to congratulate the Stillman students in making it to the corporate competition. This year’s business case focused on a Medial Innovation Corporation that was launching an allergy drug from prescription to a convenient over-the-counter market. The team was responsible for determining the best pricing strategy that aligned with a packaging, marketing, selling, and research and development plan. In support of the decisions, a twenty minute presentation incorporated each team’s final strategies; this consisted of detailed financial metrics, and a S.W.O.T. analysis. A ten minute question and answer session concluded the presentation. After a long day at headquarters, the
University of Illinois placed first, followed by the University of Florida and Rider University. Although, the Seton Hall team did not place in the top three, they represented the university well. The team grew their network and gained an unforgettable experience. The Stillman team advanced to the national competition by putting multiple days aside during their busy semester to fully discuss and analyze the strategies the team would defend before the judges. The diverse majors represented, including Marketing, Finance, Sport Management and Accounting, proved to be a key factor in their success. The team thoroughly prepared every aspect of the case and continuously practiced their presentation. They enjoyed working together and definitely made the most out of this experience. Several members of the Seton Hall team, including Vincent Lovasco, voiced their positive opinions about their experience. “I thought J&J was a fantastic opportu-
nity and a great experience. I would recommend it to any students considering it. It’s a lot of work, but it’s worth it because it is a great program,” said Lovasco. In addition to Vincent’s experience, Lauren Schleuning expressed her perspective on the competition. “I believe this was a great learning experience which incorporated real world aspects such as networking and interacting with other schools.” As a Seton Hall business student, the case can be taken in lieu of your group assessment that is required in order to graduate or can be completed for two additional credits. This case brings what you’ve learned from the classroom into a real world business scenario where you and the members of your group become the leaders that make important strategic decisions for your company. Not only is it a great opportunity to learn, but it’s an excellent experience to add to your resume as well. Contact Tara at tara.stafford@student.shu.edu
Stillman Hosts Socratic Panel on Crisis Management ...continued from page 1 Torrenzano, a world renowned crisis expert and chief executive officer of the Torrenzano Group, introduced issues concerning crisis in a corporate arena, including topics about leadership, building and protecting corporate reputations, and the critical new dangers for organizations and individuals in today’s fast-paced digital world. Following his presentation, the panel commenced as Torrenzano led the discussion by describing a relevant and broadly based issue and engaging the panel to explain the action plans they would develop in response to the issue. The panelists and their respective roles included: Frank Sorrentino III, Chairman
and Chief Executive Officer of North Jersey Community Bank as “The CEO,” Robert J. Michel, Chief Financial Officer of Asta Funding, Inc. as the “The CFO,” Alfred F. Kelly Jr., former President of American Express Company as the “The Independent Director,” Linda Willet, Senior Vice President and General Counsel of Horizon Blue Cross Blue Shield as “The General Counsel,” Ronald Levine, Co-Chair of Herrick, Feinstein’s Litigation Department as “The Outside Legal Counsel,” Edward Orgon, President and Chief Operating Officer of the Torrenzano Group as “The PR and IR Counsel,” Mayor Pasquale Menna, mayor of Red Bank, NJ as “The Local Official,” and lastly, Thomas Curran, Associate Editor of the Star Ledger and Greg David, Director of the Business and
Fin alis t s A n n ou n ced in Pira t e’s Pit ch C on t es t By Andrew Weinstein, Stillman News Writer Eight student teams, ranging from one to four members, have been selected as finalists in Seton Hall’s new Venture Fund Competition sponsored by the Center for Entrepreneurial Studies in the Stillman School of Business, known as Pirates Pitch. The competition encourages student teams to dream up an idea for a business, or, if a student already has started a business, an idea to expand that fledgling business. The teams are competing for cash prizes and professional business services including legal and marketing help. Contestants for the competition ranged from students majoring in biochemistry and diplomacy, to education and business. According to Susan Scherreik, Director of the Center for Entrepreneurial Studies, “The selection process was very difficult because we had nearly two dozen entries, and the business ideas were all very good.” In the first round of Pirates Pitch, teams were required to submit a two to three page executive summary describing their business plans. These summaries were then judged by executives from a number of companies based on their creativity, quality of the written plan, and the business’ feasi-
bility. The second round of the competition requires the eight teams to prepare a more in depth business plan that describes the product or service being offered, the competition and the industry of their business, and to discuss the team’s management skills. The teams will then present their business plans to a panel of judges on Pirates Pitch Day, who will then select the top two teams. The first place team will receive a $3,500 prize and the second place team will win a $1,500 prize. The teams that do not make the final cut of eight will also have an opportunity to win a prize on Pirates Pitch Day. The audience will select the best business idea from the non-finalists as a winner of the “Audience Choice” award, a prize of $500. Students, faculty and members of the public are welcome to attend Pirates Pitch Day and vote for their favorite teams, which is scheduled for Sunday, May 1, from 1 p.m. to 4 p.m. in Jubilee Hall Auditorium. For more information, visit the Pirates Pitch website at www.shu.edu/go/piratespitch. Contact Andrew at andrew.weinstein@student.shu.edu
Economics Reporting Program at CUNY as “The Journalists.” Spontaneity was the basis of this discussion in order to guarantee authentic responses from the panel. “It’s all fun, and that’s how a crisis happens,” said Torrenzano jokingly. The scenario, in which a fictional highend computer manufacturing company, Giant Technology, faces a crisis when a lawsuit is filed against the company, was spontaneous and not revealed to the panelists beforehand. The attending audience observed the interaction between the different roles in the particular crisis and the action plans each of the panelists proposed. The overall process of the Socratic panel was to allow the audience to interact by commenting on or ques-
tions the issue at hand themselves and the responses made by the panelists. The event concluded with Dean Strawser’s closing remarks and words of thanks to the panelists, the attending Stillman community and guests, and the organizers, including Mr. Torrenzano, who worked to bring the event together. The students who attended the Socratic Panel not only enjoyed and intellectual and humorous exercise, but were sure to have learned a great deal. Those in attendance gained a better understanding of the various roles that exist and decisions made in different companies and organizations. Contact Beverly at beverly.makarios@student.shu.edu
Stillman News
THE STILLMAN EXCHANGE
TUESDAY, APRIL 5, 2011
7
Stillman Standout Senior Prepares for Career in Public Accounting Photo courtesy of Stephanie Urban
tions have you held? Stephanie Urban: I’ve been interning since my sophomore year. I began with a small communications company called COLOTRAQ, which I found through Seton Hall’s Career Center. When I started at COLOTRAQ, I worked every day during the summer and my main responsibility was to watch over the status of accounts receivable. As I became more familiar with the company, I began to work more closely with the Controller and began auditing receivables, assembling reports, and performing forecasts of company revenues. Following my junior year, I began a fulltime summer internship with Ernst & Young.
Senior Stephanie Urban has made the most out of her time at Seton Hall.
By Beverly Makarios, Stillman News Assistant Editor Stephanie Urban is a Stillman senior with a promising future in her field of accounting. Stephanie has held previous internships with Ernst & Young and COLOTRAQ that have put her skills in accounting into practice. Stephanie shows dedication to the Seton Hall community as a peer advisor in the Freshman Studies program and as an organizer for the D.O.V.E. service trip program to El Salvador. Her involvement on the Dean’s Advisory Board as well as her position as Secretary for the Financial Information Honor Society, Beta Alpha Psi, exemplifies her dedication to enact positive change on campus. The following interview gives a glimpse into Stephanie’s internship experience and her unforgettable experience in El Salvador. She also provides insightful advice on how to have a fulfilling experience at the Stillman School. Beverly Makarios: What internship posi-
BM: What were your duties at your internship with Ernst & Young? SU: I interned in Ernst & Young’s audit practice, which means that I worked at client sites to verify that the clients were representing themselves accurately to the public and were recording their financial statements in according with accounting rules. I had a very fortunate experience as an intern in that I was given very involved responsibilities and witnessed the end of a complete audit. My daily work consisted of looking through bank statements, verifying that invoices were sent to real customers, and reading through reports. Many people associate accounting with math, but auditing is more comparable to a lawyer’s profession as it involves lots of reading, matching data for accuracy, and connecting data to laws and historical information. My experience also allowed me to learn about a company from the ground up and to see how every detail of financial information affects a company’s success. As an auditor, you spend a lot of time meeting and discussing information with top
managers in the company you are auditing, and it was really neat to have exposure to key management such as the CFO on a daily basis. BM: Given your four-year experience as a Stillman undergraduate, what advice can you give to students who are also tracking the field of accounting? SU: Take advantage of your connections to your professors! By the end of my junior year I realized the importance of maintaining such relationships. Especially at Seton Hall and within the accounting program, the professors are passionate about students’ success and will work hard to make sure students get recommendations for jobs and scholarships. Talk to your professors about their experiences, their recommendations, and their networks within the field! Also, the accounting major is very rigorous and the course-load is tough. I recall feeling overworked and even burnt-out, especially during my junior year when my classes were really difficult and a single exam required 25 or more hours of studying. Psychologically, it’s important to engage in an enjoyable stress-relieving activity, so play a recreational sport, pick up a new hobby like biking or jewelry making, read magazines, and make sure to reward yourself for the hours spent studying before a big test!
preparing for a service trip to El Salvador, which I just returned from a few weeks ago. BM: Going along with your involvement with D.O.V.E. service trip in El Salvador, how has this involvement with the program enriched your life? SU: Going to El Salvador was truly one of the best experiences I had yet to have. Many of my friends had been on the trip before me and would come back raving about it, but I never grasped how impactful it was until I experienced it myself. My team and I went to an orphanage each day, and it felt very special to love children who have felt neglected at times. It is such a simple thing to be able to share your love with others, and it feels so amazing to have it returned. Living so close to poverty for even just that week was very inspirational, not only because of the realization of how insignificant my daily concerns are in comparison to theirs, or of how luxurious the American way of life is. Their motivation to share with the world love laughter and the joy of looking forward to a life with Christ is better than anything imaginable here. The Salvadorian people are very open to Americans’ affection and experiences, and it is remarkable how impactful every person can be in service. BM: What are your plans following graduation?
BM: What are you involved in on campus? SU: I’ve been a Peer Advisor in the Freshman Studies department for the past three years. I also serve as secretary for the Financial Information Honor Society, Beta Alpha Psi. This year I began participating in the Dean’s Advisory Committee, because it was important to me to be able to influence positive change and reinforce the great things about our campus and programs. This year, I also spend time with D.O.V.E.
SU: After my summer internship, I accepted a job to begin working full time with Ernst & Young’s audit team, beginning in September of 2011. I will spend this summer studying for and taking the CPA. Once I’m done with that, I really would love to pursue more service opportunities in thirdworld countries. Contact Beverly at beverly.makarios@student.shu.edu
Annual Stillman Dance Provides Great Food and Fun By Rory Manning, Stillman News Writer Music was blasting, people were dancing and it was a good time. These were the words people used to describe the Stillman Dance last Thursday night. The The dance was held on March 31 at the Hanover Manor in Hanover, New Jersey. This was a sort of trial run for the Stillman School, because the Dance has been historically held at the Jersey City Hyatt. Due to cost concerns and student advice, the adminis-
tration decided to see if a change in location would be beneficial. The Stillman Dance had around 100 students and faculty members in attendance. The food was delicious, the location was beautiful, and there were smiles seen across the room. The deans were even spotted dancing from time to time. The Dance was coordinated by the help of students. A group of undergraduates helped to plan the whole event. There was a major push on Facebook with a campaign to sell tickets. Others were selling tickets to
everyone they knew; it was genuinely a great effort. The dance did not go off without a hitch though. The scheduled DJ and entertainment, Kinetics & One Love, cancelled at 3 p.m. the day of the event due to a lack of equipment. Stillman student DJ Amlan Gangopadhyay of DJ Raj Entertainment, and Stillman Alum James Capriglione stepped in at the last minute to put on a great set with lights and music. The students in attendance did not seem to mind since the dance floor was
packed for the majority of the night. The Stillman Dance Committee and the Stillman Professors and Deans who put together this year’s Stillman Dance did a wonderful job. The venue was beautiful, the food was outstanding, the entertainment was wonderful and students will definitely be buying up tickets to attend next year. Contact Rory at rory.manning@student.shu.edu
Masters of Disaster Educate Students on Turnaround Industry By Juliet Payseur, Stillman News Guest Writer The Center for Entrepreneurial Studies and Epsilon Nu Tau hosted the Masters of Disaster panel discussion and networking event on Thursday, March 24. Students filled the Jubilee Hall auditorium to hear CEOs, CPAs, CFAs, and Lawyers from the Turnaround industry discuss how they help bring ailing companies back to life or see them through bankruptcy. Dinner was provided following the panel discussion, where students were able to network with the panelists. Students learned of the vast career opportunities available in the restructuring industry. One does not have to be strictly a business major to enter this industry; the panelists mentioned that former history majors, engineering majors, and law school graduates are just a few of their colleagues, besides business major. Even so, companies
Photo courtesy of Juliet Payseur
Masters of Disaster panel with Epsilon Nu Tau President Juliet Payseur.
often ask consultants to stay on through the growth stages of the company, so there are a many employment opportunities available in this particular industry. One of the major takeaways for entrepreneurs-to-be, in the panel’s opinion, is that nine out of ten companies fail for one major reason – the management! When you start up your company, you will spend years
of sweat getting the company going, but you must be smart enough to know when to hand the management of your company over. The second most important advice for future entrepreneurs is to hire a good CFO. Stillman sophomore, Kimberly Camperlino agreed saying that, “For somebody who wants to open their own business, it was helpful to hear the top reasons why
companies fail so I can prepare for and prevent it from happening to my company in the future.” The panel discussion on the restructuring industry was followed by a session of career advice to students. What was the main emphasis? Social Media. The panelists warned young job seekers to be very careful with their online image. Francesca Laraque, a senior in the Stillman School and one of the ENT cofounders stated that “the turnaround event was really a glimpse into turning tragedy into treasure.” “The Turnaround Management Society is a group of people we want to look at when times get rough, which they always will. They take mistakes and make companies’ dreams come true, it’s admirable.” Contact Juliet at juliet.payseur@student.shu.edu
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TUESDAY, APRIL 5, 2011
THE STILLMAN EXCHANGE
Ethics Should the U.S. provide material aid to the Libyan rebels?
The United States is contemplating providing the rebels with weaponry and supplies, which would violate an arms embargo on Libya by the U.N. Security Council. The tensions in Libya began with protests on February 15, 2011, which quickly escalated to all out rebellion. America became involved on March 18 to enforce a U.S. sanctioned “No fly zone”. Currently, America and its allies are using bombs to flush out government troops. Gabriella Petrillo, Junior History Major
Make Peace, Not War The United States should be promoting peace, not war. Giving weapons to the rebels will only cause more death and destruction instead of saving lives. Although we are trying to assist the rebels to defend themselves, we should seek safer alternatives to both them and the United States. There is no doubt that we should assist the rebels in taking down Gaddafi. There is no good excuse to let innocent civilians endure injustice anywhere in the world. We must remember to not repeat other instances in which the world came to one’s rescue too late. Where was the world when the hundreds of thousands of innocent people were killed unjustly in the Holocaust? Where was the world during the Armenian genocide? Why did it take so long for the United States to intervene in these horrifying events? How long can the world pretend that injustice is not happening around the globe at this very moment? We cannot be ignorant of the world around us, but understand that we are part of this same world, and are the same human beings. We must not make the mistake again to let dictators control and corrupt innocent civilians for so long. However, we must be careful to interfere in
a territory which is not our own. There are several reasons why we should not arm the Libyan rebels. One, they have never been trained to use these kinds of arms before. Putting the weapons in the hands of inexperienced users may be dangerous because they may be uncooperative or take advantage of the weapons. Once the U.S. gives the weapons, the rebels are allowed to do anything they want with them. This causes the concern that the weapons may be used against the United States in the future, such as in the past when the country tried to help Afghanistan. This grim situation can be a reality especially if the weapons are put in the hands of the wrong users. We need to be careful who we are becoming involved with before we start putting our soldiers lives into the fray. It may seem as if we should arm the Libyan rebels now, but we need to think about the future and what will happen after Gaddafi steps down. The United States of America is an example of liberty, honor, and morale all over the world. Being that it is one of the most powerful nation, the government has the ability to help other countries without destroying its own. Contact Gabriella at gabrielle.petrillo@student.shu.edu
Photo courtesy of Fox News Fighting is fierce; Libyan rebels are slowly being pushed back by government forces.
Joan Orejuela, Junior Political Science Major
Lessons From The Past The United States’ involvement in foreign affairs has never been the result of pure concern for a “far away friend”. As a major actor within the international community, the interests of the U.S in being involved in international disputes have always held a larger priority than the needs of those being aided. U.S support of Iraq during the Iraq-Iran War during the 1980’s solidified this process of decisions regarding foreign aid based upon U.S. benefits, but the consequences seen later in the 21st century for supporting Iraq also showcased that even our interests sometimes lead us astray. For this reason, in the case of providing material aid to the Libyan rebels, in the forms of weaponry, the most ideal decision that can be made by the current administration would be to do nothing. If our history in meddling in international affairs has taught us anything, it’s that it is a bad idea and that what we set out to accomplish is often muddled along the way. There is, of course, no denying that the people in Libya are in the midst of an atrocious
civil war and that their fight for democracy is an incredibly noble one, but there can also be no denying that for the first decade of this century, the U.S. has been involved in such a seemingly endless war that the casualty count of American soldiers has become a staple in our nightly news. So the only question really is: how can we help others when we can’t even help ourselves? It is an instinct to want to help the suffering, and in some ways the United States still can without threatening the progress of our own international dilemmas, and of our need to see some, any troops come home. It is clear that weaponry cannot be supplied without causing a disruption of neutrality, but more specifically a violation on a Libyan arms embargo by the U.N. Security Council; however, there are other ways to help. The real victims of this rebellion are all the innocent civilians fighting to survive the chaos around them and it is these individuals that we must seek to protect. If we cannot provide them with democracy, we can see to it that they are still alive to witness when they themselves achieve it. Contact Joan at joan.orejuela@student.shu.edu
A recent poll of 120 Seton Hall University Students who were asked the question: Should the U.S. provide material aid (as in weaponry, supplies, etc.) to the Libyan rebels, which would also violate an arms embargo on Libya by the U.N. Security Council?
Ashley Lorenzo, Sophmore English and Pyschology Major
U.S.: World Police By aiding the Libyan rebels with weaponry and other supplies, Americans might create another Taliban. During the 1960s and 1970s, the U.S. government armed rebels in Afghanistan, who were at the time called Mujahedeen, giving them our weapons and other various aids. In 1994, the Mujahedeen morphed into the Taliban; further expanding Al-Qaeda and causing the 9/11 attack; a friend became a foe due to our involvement and not allowing a civil war to progress naturally. The problem dealing with the rebels in Libya is that American officials will not know if they will become a similar regime, like the Taliban. Americans cannot afford to create another terrorist group; further expanding their power. What’s worse is that America is giving the rebels aid when our own troops are in need of proper gear, artillery, medical care and other supplies to better sustain themselves. Instead of sending the funds to the Middle East, we should be focusing on our own troops and our people; yet we are giving most of our artillery to potential future enemies.
According to the New York Times, America has already spent over 500 million in the Libyan mission. Surely, this is not necessary. If we want to prevent genocide we can tightly monitor the regimes actions via satellite and immediately intervene to prevent it. But currently there was no significant threat of genocide. There was plainly a civil war just like America went through their own civil war two centuries ago. How would we feel if someone intervened on the Confederate side and starting equipping them with new high tech weapons. Where would we be now? One critic from the New York Times believes that “giving air support to one side of a ‘civil’ war, may be too much” for America to handle. I am not saying that Gaddafi should go unpunished but the French, the British, and other countries in the Middle East, have their own ideas of how to uproot him out; why not let them help the rebels while we Americans should help ourselves in our tough economic crisis. We already have two wars at hand that we are fighting solely and it is about time that other countries take responsibility, it is not the U.S.’s job to police the world. Contact Ashley at ashley.lorenzo@student.shu.edu
Photo courtesy of the Associate Press
Libyan rebels on the frontline fighting against Gaddafi’s regime.
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
Editorials
TUESDAY, APRIL 5, 2011
9
D o n a ld Tru m p Tak es a St an d on Politics By Morgan Tornetta, Domestic News Editor Donald Trump recently felt the need to release a copy of his birth certificate to the public as a form of criticism toward President Barack Obama. With rumors spreading of a possible 2012 president election run for The Apprentice creator and host, Trump has achieved fame with a new audience, not for another casino, but as a new leader in the “Birther” movement. He stated in reference to Obama, “Now, this guy either has a birth certificate or he doesn’t…And I didn’t think this was such a big deal, but I will tell you, it’s turning out to be a very big deal because people now are calling me from all over saying, please don’t give up on this issue.” Although most eloquently stated as the voice for the people, a few problems exist with his new pursuit of justice. The first, Mr. Trump, is President Obama has already released a copy of his birth certificate, available on line for the public’s viewing pleasure. Therefore, “this guy,” does indeed have a birth certificate proving he was born in the very American state of Hawaii on August 4, 1961. Consequently, The very issue by which the “Birther” movement was developed in the first place in now null and void- the President has released a birth certificate, and it is time to get over John McCain’s 2008 loss. Most importantly,
Photo courtesy of realitypod.com
One of the worlds most notorious millionaires takes a gigantic stand at the nations leader.
Trump claims he is releasing his birth certificate as criticism of the President, a new corner stone, if you will, by which delusional right wing citizens may continue to pursue a point that is already proven invalid.
The Stillman Exchange The Official Business Publication of Seton Hall University
Executive Board Managing Editors Lee Duan Margaret Reilly Assistant Managing Editor Rich Kimsey
Editorial Board Money and Investing Bryan Murawski Stillman News Ryan Garrity Ethics David Guzik Editorials Anthony Crisci Sports Business Travis Tosoni Domestic News Morgan Tornetta International News Kaitlin Tonti International Business Alex Cohen
Trump’s real reason for releasing his birth certificate, however, is because he was recently challenged as to the location of his birthplace after criticizing Obama. See what happens when you question information
Photo courtesy of Flickr
Stillman News Beverly Makarios Sports Business Tony Bonkalski Domestic News Alina Fernandez International News Raphael Baseman International Business Alexandra Hauenstein
By Kaitlin Tonti, International News Editor
Faculty Advisers Michael Reuter, M.B.A.
The federal government has proposed rules which would require chain restaurants and other food-serving to disclose the nutritional information of their food on menus. These rules have a few exceptions, like alcoholic beverages in restaurants. Movie theaters put up a fight and won—you won’t be finding out how many calories are in that jumbo popcorn you’re eating while watching the newest Hollywood blockbuster. The place where it is easiest to overeat is the one place that the government will not be guilt-tripping us into not eating. In the darkness of the movie theater it is difficult to recognize how much you’ve eaten. You’re also paying very little attention to how much you’re eating. You paid to watch the movie, why watch the popcorn disappear from the bag? I can’t say I’m concerned about these
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Assistant Editors Money & Investing Jennifer Crowe
E-ma il stillmanexchange@shu.edu
that has already been proven true, Mr. Trump? Furthermore, after producing what he thought was an official document proving his birth, the multi-millionaire realized the document was not official and was forced to re-release the “real” thing. After considering all of this information, I am forced to ask, why now? Mr. Trump has never demonstrated previous interest in the validation of President Obama’s birth certificate, or the “Birther” movement in general. One may presume, therefore, his actions are centered at the heart of campaigning in its most raw form: jumping on one side of the “bandwagon,” and “riding out the wave,” until the people who are supporting you find reasons to no longer do so. Instead of appealing to the wants and needs this nations citizens who are already burdened with the most ridiculous political shenanigans, Mr. Trump chooses to appeal to a very small portion of American citizens who receive pleasure out of attaching their political choices on a falsehood. The year is 2012, and Mr. Trump needs to understand it is time to move away from the campaign mud-slinging of 2008. Politics should be left to the politicians, not the celebrities.
rules impinging upon my rights to eat junk food. This is not a mandate to avoid junk food. It has not been outlawed. This is just a shove in the right direction. Americans need help finding out what they should and should not be eating, and even more help sticking to it. Hopefully legislation like this will point them the right way. I fought back against the freshman 15 after my first year in college. I was overweight, but I disciplined myself. I started watching what I was eating and exercising regularly. That battle was enough to make junk food pretty unappealing. It is still difficult, however to eat at restaurants because I can never be sure just what I’m eating. I’ll be happy to know, even if it means cooking my meals all the time and staying away from restaurants entirely. A 2009 study from the CDC concluded that no state in the country had an obesity rate of 15 percent or less. Nine states had obesity prevalence of 30 percent or more. The study was based on self-reported weight and height and considered a body mass index of 30 or more obese. The CDC also reports that 34 percent of adults 20 years old and over are overweight. I am ready to embrace legislation that would make people think twice about what we are eating, and I think that food establishments who have the means to calculate their nutritional information should. That includes you, movie theaters. I learned firsthand to stop making excuses for myself. I stopped saying I was “big boned” and just did what needed to be done. I have friends who did the same thing. We should take steps as a country to fight the epidemic. With any luck, these proposed rules will raise awareness. Contact Kaitlin at kaitlin.tonti@student.shu.edu
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TUESDAY, APRIL 5, 2011
Sports Business
THE STILLMAN EXCHANGE
NFL Sponsors, Advertisers Set Contingency FX Set to Plan as Lockout Threat Continues to Loom Tackle College Football This Fall
By Robert Szeluga, Sports Business Writer
Sunday afternoon programming may experience a drastic change due to the current NFL lockout. Both advertisers and networks have already begun forming contin-
gency plans in case the lockout carries over into the fall, cancelling NFL games and possibly voiding a season altogether. Networks, who have relied on a constant viewing of NFL games over the past few years, may take a hit for the worst. Current networks that carry NFL games are
Photo courtesy of Wayne Drought- NZPA
CBS, FOX, ESPN, and NBC. Fox has stated that it plans to air Major League Baseball games if the lockout continues into the fall and ESPN, which has an array of sports it can air, plans to broadcast college football games on Sundays. NBC has already bought the rights to air the 2011 Rugby World Cup as a hard hitting alternative to attract fans. NBC, along with Universal Sports Network, will air all 48 matches of the tournament. Since there is a seven hour difference between Eastern Standard Time and New Zealand time, many of these matches will be shown on tape delay. A 1pm start time, however, does however offer NBC an opportunity to broadcast a game at 8pm, making it a prime-time television event on the east coast. NBC may also drop NHL games into the Sunday night slot once the rugby tournament ends in October. Also hit hard by the lockout are advertisers, who spend an estimated $3 billion on NFL games alone. Last year, it cost $3 million to air a 30 second commercial during the Super Bowl broadcast. The game, however, did set a U.S. record in television audience each of the past two years. Advertisers have yet to change their plans for May, which is typically the month for buying NFL ads, but will be forced to do so if talks continue to fall through. One alternative some companies have already sought out is buying commercials for Viacom Inc. television, which owns popular networks such as MTV, VH1, Comedy Central, and Spike TV. They may also look towards other popular fall sports, such as golf and college football, as an alternative to NFL games. In addition, commercial spots on popular prime-time dramas or sitcoms may also be an alternative advertiser’s look towards if the lockout continues. Other cable networks that do not show NFL games are also forming new ways to attract the deserted NFL fan base. Spike TV, for example, is using this opportunity to market “Blue Mountain State”, a show about a college football team and the shenanigans it experiences both on and off the field. Spike has already moved up airing from October to September in preparation for the lockout, and may move the show’s time slot from Tuesday to Sunday night.
Contact Robert at robert.szeluga@student.shu.edu Rugby could serve as a possible alternative to football this fall if the NFL was to lockout.
By Tony Bonkalski, Sports Business Writer FX, a popular basic cable television station, is joining up with FOX Sports Media Group (FSMG) for the new season of college football to air a major college football game every week. The Fox Network Group’s station’s president John Landgraf announced this teaming up on March 28, 2011. “Sports programming is a key component that has been missing on FX for a while and we look forward to its return on our schedule,” said Landgraf. “This NCAA football package will feature some of the nation's marquee schools and matchups, and it will be a great addition to our lineup. It will also provide an excellent promotional platform for our returning hit original series and primetime movies this fall.” FX is well known for its entertainment and movies, but does not normally carry sports. Fox Sports has a deal already with conferences in the NCAA including the Big 12, Pac-12 and Conference USA. The package deal will allow FX to air college gamesof-the-week in primetime. The actual game broadcasts will be aired by Fox Sports and then distributed to FX. According to the deal, the first three games will be scheduled in June and the remaining games will be picked six to 12 days before their actual airing to make sure that the actual games will be exciting for the viewers. The reasoning behind all of this is to allow more sports to be included in their station’s programming. The station already aired such sports as Major League Baseball, NASCAR, boxing and NFL Europe, but has not entered the sports industry since 2006. Sports have become one of the main sources of revenue for television stations today, and this deal should ensure more profits for FX. FX is already off to the best start in its history this year by averaging 1.6 million total viewers, including 883,000 adults. The figures show a 22 percent and 19 percent respectively compared to the calendar year of 2010, according to the Washington Examiner. Contact Tony at antonio.bonkalski@student.shu.edu
N BA Pla n s t o Mak e A n ot h er S p la s h Ov ers eas By Travis Tosoni, Sports Business Editor In an effort to build on previous success, the National Basketball Association and Women’s National Basketball Association have struck a deal to play a series of games in Manchester, England over the next few seasons. In a separate deal, USA Basketball has also agreed to have both the men’s and women’s national teams each play an exhibition game in Manchester in 2012 against Great Britain in preparation for the Summer Olympics in London. Manchester City Council, who negotiat-
ed both of the deals, is very excited to host the NBA. The games represent the first in England that will be played outside of London. Sophie Goldschmidt, senior vice president of NBA Europe, could not be happier with the agreement. “We are delighted to bring NBA, WNBA, and USA Basketball games to the internationally renowned sports city of Manchester. This comprehensive schedule of premier basketball events will help grow the sport for years to come,” said Goldschmidt. “This partnership shows our ongoing commitment to deepen basketball’s footprint in the country.”
For the past four seasons, the NBA has held numerous pre-season games in London. In 2011, the league decided to take it a step further by playing two regular season games between the Toronto Raptors and New Jersey Nets. The March 4 and 5 contests held at the famous O2 Arena in London were both sellouts, with 18,689 fans in attendance. As an added bonus, fans at the March 5 game were treated to a triple-overtime thriller, which saw the Nets edge the Raptors, 137-136. The WNBA will kick off the string of games in Manchester this May, when the defending Eastern Conference champion Atlanta Dream take on the British Women’s
National Team at the Manchester Evening News Arena. The MEN Arena, which was built in 1995, seats 18,100 for basketball games and is seen as an ideal venue for the NBA, WNBA, and USA Basketball. With this sustained success overseas seen by both professional leagues and the national team, playing games in other countries is not only providing a strong line for profits, but it also serves as a channel to help grow the game of basketball around the world. Contact Travis at travis.tosoni@student.shu.edu
Sports Business
THE STILLMAN EXCHANGE
TUESDAY, APRIL 5, 2011
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NBA Plans to Refund All Season Ticket Holders if Work Stoppage Occurs, According to League-Wide Policy By Anthony Holesworth, Sports Business Writer In the world of sports, lockouts and work stoppages are scary for players, teams, leagues and fans. The NFL lockout, which began on March 12, has all parties involved worried about the future of their league. The current collective bargaining agreement for the NBA expires on June 30 of this year. The NBA has established a league-wide policy which states that if there is in fact a work stoppage, teams must pay season ticketholders back for their purchases, including interest payments to cover the time factor of the potential lockout. This is an attempt to maintain the strong NBA fan base throughout what may be a prolonged period of inactivity. When players have to sit and wait for a new collective bargaining agreement to be worked out, they are on their own in terms of maintaining their fitness, drive and precision of skills. Furthermore, as they are out of work, they have to face the possibility of living without their primary
source of income. Lastly, as athletic careers have a relatively limited longevity, every passing day of a work stoppage has a significant effect on athletes’ careers. Sports teams make the majority of their money from ticket sales. When there are work stoppages, there are no games being played and, therefore, no use for tickets. When there are no games being played, team merchandise sales inevitably drop as well. Leagues, like teams, make revenue from ticket sales, merchandise sales, television exposure and more. If no games are going on, these revenue sources are either heavily diminished or cut off completely. Fans, who make up the largest group affected by lockouts, do not want to miss out on seeing their favorite teams and players play. There are fans who try to attend all of their team’s home games and some road games as well. Fans who are not attending games love to watch the games that are televised most days of the week, whether on local or national television. A lockout would but an automatic stop on the fans’ ability to follow their favorite teams. Without games to watch, fans are likely to end up losing interest in the NBA.
Since the fans are the NBA’s largest source of income, the league sees the serious importance of maintaining a positive relationship with them. The required interest payments on season tickets appear to be the most effective method of maintaining fan base and positive publicity through a potential lockout. David Carter, the executive director of the Sports Business Institute at the University of Southern California, commented on the subject: “When you think about the amount of money involved in giving interest over what is hoped to be a short period of time, they would lose so many more millions of dollars in bad publicity if they didn’t take care of those fans,” said Carter. All parties involved would prefer no stoppage at all, and the NBA’s precautionary measures should create a strong sense of urgency for players and owners to work out a new collective bargaining agreement as soon as possible. Contact Anthony at anthony.holesworth@student.shu.edu
Ticket Prices Set to Rise on Broad Street By Nick Costa, Sports Business Writer The Philadelphia Flyers will be increasing season tickets for the 2011-2012 season. According to the Flyers’ senior vice president of business operations, the changes were made in order to properly value seats due to various factors which include seating and location among others. The best example of this is shown in the prices this year, which shows many fans are paying the same amount for seats further than ones closer to the ice. The reason the club is raising prices is so it can stay competitive with other teams in the National Hockey League. The Flyers have gone the extra mile to do research about its ticket sales, looking into which seats tend to sell faster than others and how much people were willing to pay for certain tickets. According to the team, the average season ticket will go up about $6 per ticket. Top seats like the ones at center ice that used to sell for $79 have increased to $95. A major factor in these ticket increases
Photo courtesy of Associated Press
Flyers fans are going to have to pay a little more to watch their team celebrate wins on home ice.
has been drastic rise in the Flyers’ salary cap. During the 2005-2006 season, the salary of the Flyers was $39 million compared to the $60 million the team is spend-
Food Network Look to Hit a HomeRun with New MLB Sandwich By Brittany Hammer, Sports Business Writer Chances are if you are a baseball fan, you have had your fair share of hot dogs and hamburgers. Small concession stands dot the 30 professional baseball stadiums across the United States and Canada, serving up these typical concessionary foods game after game. Though some argue that this dull menu marks a steadfast tradition with America’s favorite pastime, Food Network wants to add a little spice to the experience. In the heart of New York City, a Food Network kitchen created a new sandwich fit for a World Series title. Due to a new partnership between Food Network and Delaware North Companies Sportservice, the Red, White and Blue steak sandwich will be making its debut at eight Major League ballparks during the 2011 season. The Food Network branded item boasts Maytag blue cheese and a sweet and spicy pepper mayonnaise on a French demi baguette. The sandwich will be served with Food Network-branded tissue paper, as well as napkins and network slogans. Though the core of the sandwich will remain the same countrywide, each of the eight stadiums will feature a unique and local twist on the steak creation. For exam-
ple, the Milwaukee Brewers’ ballpark – Miller Park – will add a topping of sharp and hoppy beer cheese. Other stadiums offering the Food Network invention include Oriole Park at Camden Yards, Rangers Ballpark in Arlington, as well as several others scattered across the country from San Diego to Detroit. The Food Network has over 30 experts willing to work on the development of future concessions stands. Even so, the wellknown network still wishes to remain cautiously optimistic. With past attempts involving specialty foods at ballgames failing miserably, Food Network hopes to slowly build on the sandwich’s expected popularity. With this most recent partnership, Food Network continues in its long line of branded items. It has previously offered food items on Friday’s menus from its popular television show Ultimate Recipe Showdown, among others. You can expect to see even more delicious branding combinations pop up during this MLB season, as well as at other professional sporting events in the near future. Contact Brittany at brittany.hammer@student.shu.edu
ing this year. Though the salary cap has increased by 52 percent, their payroll has gone up only five percent in the past eight years.
For fans, it is hard to agree with the ticket prices being raised during various circumstances, but if the changes are being done in order to support a team who has spent their money on improving, then it is something that has to be done. Not only is Philadelphia improving, but the investment in the team has reflected on the ice, as they went to the Stanley Cup Finals last season and currently hold the best record in the Eastern Conference. Many fans are spending their hard earned money to watch these games, and although the increase in ticket prices may hurt their wallets, being able to attend games in which your team is competitive improves upon the experience and brings greater value to the money you are spending. The Flyers’ decision to increase ticket prices is a smart idea, as long as they continue to put that money back into the team and continue to do well on the ice. Contact Nick at nicholas.costa@student.shu.edu
Slacker Radio Now Airing ESPN Channel By Travis Tosoni, Sports Business Editor Subscribes of Slacker Personal Radio will now be able to add ESPN to their list of audio stations. The Internet radio service provider has recently struck a deal with the sports channel to air content for its users. Through the deal, Slacker Basic Radio customers will have the ability to listen to various sports-talk programs provided by ESPN including “The Herd with Colin Cowherd”, “Mike & Mike in the Morning”, and “SportsCenter”. Also available through the ESPN station are leading national and regional sports headlines, as well as up-tothe-minute coverage and score updates from games. Another unique feature of the ESPN station available through Slacker is that users will be able to have hourly “SportsCenter” updates played on any station they are listening to. This feature will be available in both English and Spanish. Slacker Radio, which offers its listeners free programmed news and radio stations without any commercial interruptions, will now offer the ESPN station among its other sports channels. These channels can be customized by users based on personal preferences such as favorite sports, favorite teams,
and geographic region. Senior vice president of marketing for Slacker Radio Jonathan Sasse expressed his thoughts on the deal. “ESPN Audio is the authoritative voice of sports news and original programming, which is key to Slacker's goal to offer our listeners access to the most diverse content and programming possible,” said Sasse. The deal comes shortly after Slacker reached a similar agreement with ABC to provide an exclusive news channel. Slacker Radio, which is available in both the United States and Canada, hopes the new features and available content will attract more users as well as sales opportunities with outside companies. Slacker Radio is currently available online as well as a downloadable application on smartphones. The recent moves by Slacker will diversify the range of options available for online radio listeners, as well as make it stand apart from competitors such as Pandora Online Radio, which offers only music with commercial interruption to its subscribes while also limiting their ability to skip unwanted songs. Contact Travis at travis.tosoni@student.shu.edu
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Sports Business
TUESDAY, APRIL 5, 2011
THE STILLMAN EXCHANGE
With One Football Season in Doubt, Will Fans Begin to Follow Another? U.S. Soccer Hopes it Will Help Out By Matt Bartel, Sports Business Writer
Photo Courtesy of EP
One football season will definitely not be locked out in 2011, except this “football” is called by another name, soccer. In the United States, soccer has continually struggled to gain a permanent fan base and be respected as a “major” sport in the country. A sign of this changing was hinted at this summer, when United States soccer superstar Landon Donovan scored in dramatic fashion in the closing moments of the final opening round game against Algeria to send the U.S. to the next round. They met Ghana and suffered a heart breaking loss, and then everyone went back to not caring. This seems to be a recurring theme as the United States performance in the World Cup matters to American viewers who do not regularly watch soccer. They are excited at the Olympic style competition that pits our best against the rest of the world, and the National team does have some level of success. Yet when their run is finished we seem to lose interest again, until the international competition resumes. A few weeks ago at the New Meadowlands Stadium complex we saw the intensity of an American fan base shine through the clouds of disinterest. Nearly 79,000 fans packed into and cheered raucously during an exhibition of team
Landon Donovan has provided fans a reason to watch U.S. soccer.
USA against the Argentinean national squad. The game ended in a 1-1 draw and is seen as a victory for U.S. soccer as Argentina is considered one of the top teams in the world. In the surprisingly competitive exhibition or “friendly” the U.S. had the benefit of meeting someone outside their Confederation. This helps them improve because other than Mexico, the United States does not meet any other truly competitive teams. As FIFA organized the settings for international play, they divided the world teams into six regions or “Confederations”.
In CONCAF (Confederation of North Central and Caribbean Association Football) the U.S. team is, for the most part, trapped against inferior competition for exhibitions and when qualifying for international competition. In her article for the Wall Street Journal, Gabriele Marcotti believes that it would benefit the U.S. to compel FIFA to combine CONCAF with its South American equivalent CONMEBOL, which contains heavy hitters like Brazil and Argentina. This creation of what she calls a “PanAmerican Confederation” would benefit all teams as the ten team CONMEBOL would have new teams to face, and CONCAF teams would grow from facing the rest of the meridian’s elite. Marcotti and others warn that this is extremely unlikely to happen, as there exists too much red tape within FIFA to gain any sort of change in international confederations. With limited competition in their way, the U.S. will continue to have its growth stunted, but in time changes may come. With greater success, they will also see change in the fan base at home, who want to see nothing more than their country succeed. Contact Matt at: Matthew.Bartel@student.shu.edu
Mets Strike Out with 2011 Minnesota Twins Aquire Deal with Fox Sports North Ticket Sale Numbers By Anthony Crisci, Sports Business Writer Most professional sports teams face financial problems because of their lack of ability on the field. The New York Mets face these serious issues for a completely different reason. The Mets aren’t looking like a very successful team on or off the field this season. After losing $50 million in 2010, the team looks like it will falter even more this season. With all of the speculation with the Wilpon family and their involvement in the scheme with Bernie Madoff, the Mets now have even more problems to deal with. Advanced ticket sales have been anything but promising with Met fans dealing with a very unstable team. With the additions of new manager Sandy Alderson and new head coach Terry Collins, this stability is hopefully going to take a turn for the better sometime soon. The New York Times reported that the team lost $10 million even after pouring in over $350 million in 2009. The same was true for the following year as they lost over $60 million and over half a million fans from the year before. According to an internal report, the team has sold 600,000 tickets so far for the
2011 season which means that less than 7,000 season tickets have been bought .That being said the cross-town rival New York Yankees have sold well over 3 million tickets for this upcoming season. The Wilpons and co-owner Saul Katz have made promises that aren’t looking very solid. They have told possible investors that the attendance at City Field will exceed three million next season. The Mets are facing these problems because they are spending too much money on mediocrity. Last season the Metropolitans had the fifth highest payroll in Major League Baseball and did not even finish above .500. The opening day payroll was $132 million, while the San Francisco Giants, the World Series champs of last year, spent less than $100 million. Not only are the Mets paying too much money for mediocre players, but in 2011 they released veterans Oliver Perez and Luis Castillo, whom they are still playing. All of these reasons sum up one thing: the Mets are completely and utterly unprofitable. Some drastic measures need to be done in order to revive the long lost Amazin’ Mets. Contact Anthony at anthony.crisci@student.shu.edu
By Anna Negron, Sports Business Writer On March 30th, Fox Sports North announced an exclusive deal with the Minnesota Twins. This deal would air 150 games to subscribers of Cable TV, amounting to almost every game that is not covered by a national television network. This may seem like “home run” for Twins fans, but Fox Sports North is not a part of the basic cable tier, leaving almost 18 percent of viewers with the ability to view only eight scheduled games that will be airing nationally on the Fox network. However, most cable subscribers are sign up for more than the basic tier. About 90 percent of Comcast’s subscribers get FSN in Minnesota, which reaches over 2 million homes across the Minnesota, Wisconsin, Iowa, and North and South Dakota area. This deal ends the 5-year long coverage by MyNetworkTV affiliate WFTC, which serves twin cities Minneapolis and St. Paul. One fan, Adam Woolhouse, was left very upset by the change. As stated in the Star Tribune of Minnesota: "It leaves a bad taste in my mouth," Woolhouse said, adding that he doesn't plan to spend the money to upgrade his cable. “It's not going to affect my love for the team.
I know Ron Gardenhire and Joe Mauer didn't make the call. But it's going to affect what I think about management. The Twins have always been a small-market team and this screams of a big-market move." Twins president Dave St. Peter commented on the fans reaction, stating that cable exclusivity in local markets was “inevitable” as reported by the Star Tribune. This deal will give the Twins the ability to maximize their profitability, and gain more support from more fans in the area. The Twins will be featured during FOX’s Saturday baseball when playing teams like the Boston Red Sox, Anaheim Angels, Texas Rangers, and the Chicago White Sox. Qwest Twins Live, the official pre and post game special will also be aired on Fox Sports North. Fox Sports broadcasted five spring training games, including games against the Florida Marlins, Pittsburgh Pirates, Baltimore Orioles and the Atlanta Braves. Coverage began April 1st against the Blue Jays in Toronto, and the network will celebrate the Minnesota Twins at Target Field against the Oakland A’s on April 8th. Contact Anna at anna.negron@student.shu.edu
Mesut Özil Scores a Deal with Nike, Now Ranks Amongst Ronaldo, Messi By Tony Cramond, Sports Business Writer German soccer star Mesut Özil has signed a five-year endorsement deal with Nike worth $28 million. The Real Madrid superstar, who is only 23 years old, will make $5.6 million per season. With his new contract with Nike, Özil will become the highest paid German footballer of all-time. Özil now passes Bayer Leverkusen midfielder Michael Ballack, who originally signed a deal with Adidas for $3.5 million. The reports out of Germany are that Özil is now the third highest paid footballer in the world. Özil is apparently only behind Portugal and Real Madrid’s Cristiano Ronaldo and Argentina and Barcelona’s Lionel Messi for being the highest paid footballer in the world. Ronaldo is the highest paid footballer and makes a reported $8.4 million per season from Nike. Messi report-
Photo Courtesy of Getty Images
Mesut Özil celebrates his skills on the field with a blockbuster deal with Nike.
edly collects $7 million dollars per season from Adidas. Özil believes that this is a perfect situa-
tion for him. He believes that the shoes that Nike is creating are the best shoes he can have and he hopes that this will give him an
edge out there on the field. Özil will be wearing the new Mercurial Superfly III boots as part of his new deal with Nike. Özil said in an interview “The superfly is the lightest shoe Nike has made and I cannot imagine playing with heavier football boots.” Özil will now be a part of Nike’s new advertisement campaign with Cristiano Ronaldo and Wayne Rooney. The German footballer has been able to cash in on the coverage that he received when he played for the German national team in the 2010 World Cup. His performance in the World Cup warranted him with a transfer to Real Madrid and now has landed him a massive deal with Nike. Contact Tony at anthony.cramond@student.shu.edu
THE STILLMAN EXCHANGE
Domestic News
TUESDAY, APRIL 5, 2011
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Obama Lays Out Updated Energy Policy in Speech at Georgetown University By Padmavathy Sonti, Domestic News Writer On Wednesday, March 30, in a speech at Georgetown University, President Obama outlined his energy policy, which focuses on reducing U.S. dependence upon foreign oil. “We cannot keep going from shock to trance on the issue of energy security, rushing to propose action when gas prices rise, then hitting the snooze button when they fall again,” President Obama said. “The United States of America cannot afford to bet our long-term prosperity and security on a resource that will eventually run out.” The speech was delivered in the wake of rising gas prices and international unrest in Libya and the Middle East. According to the Energy Information Administration, in this year alone, the U.S. is expected to import approximately 9.7 million barrels of oil per day. Although the U.S. consumes 25 percent of the world’s oil, it only stores 2 percent of it as reserves. According to the President the primary goal is to reduce oil imports by one-third by the year 2035. “There are no quick fixes. Anybody who tells you otherwise isn’t telling you the truth,” President Obama said. “And we will keep on being a victim to shifts in the oil market until we finally get serious about a long-term policy for a secure, affordable energy future.” In particular, he spoke of the administration’s effort to extend an increasing number of drilling permits for offshore drilling. Because millions of acres of land remain
Photo courtesy of The New York Times
President Obama speaks at Georgetown Univeristy about his new energy policy. He reinforces the premise that nuclear energy is a viable option for the U.S.
unoccupied, the administration is focused on promoting the “responsible development of these resources.” As further outlined in the Blueprint for a Secure Energy Future, a report released by the Obama administration, other energy initiatives include investing in renewable biofuels, producing fuel-efficient automobiles, and opening additional manufacturing plants. “By 2035, 80 percent of our electricity needs to come from a wide range of clean
News Briefs Every Vote Counts An election in Syracuse, N.Y. was decided by one vote. Marc Baum lost the election for a place on the board to Harold Hopkinson. The issue with the decision is that, Arnold Ferguson died three weeks before the election, but had submitted an absentee ballot before his death. Although election official said the vote should not have been counted, the State Supreme Court ruled that any challenge to the vote needed to take place before the ballot was removed from the envelope and counted. Baum, who lost the position by a single vote, said he’s through with politics for the time being. Schumer Spills the Beans In a conference call last Tuesday, Chuck Schumer (DNY) explained to other Democrats why he typifies Republican proposed spending cuts as “draconian” and “extreme”. The conversation would have gone unnoticed if the exchange had not been caught on tape by reporters. Schumer thought he was going over his budget talking points in private and was unaware reporters were already listening to the call. He was recorded saying “I always use the word ‘extreme,’ that’s what the caucus instructed me to do the other week.” He also said “The subtext of this is, the only way we can avoid a shutdown is for Boehner (the speaker of the House) to come up with a reasonable compromise and not just listen to what the Tea Party wants.” In response to Schumer, House Majority Leader, Eric Cantor (R-VA) said “He says every spending cut is unreasonable.” Southwest Airlines Grounds 81 Planes Southwest Airlines grounded 81 airplanes to inspect them for skin fatigue. The inspection comes after a Boeing 737 lost a piece of its fuselage midflight on Friday. The plane was cruising at 36,000 feet when passengers heard a “gun-shot-like” sound. The aircraft was in route to Sacramento, but was able to make an emergency landing at a military base in Yuma, Arizona. There were no serious injuries, and all 118 passengers continued their trip on a replacement jet. The inspections are precautionary, and the FBI reported that there was no reason to suspect terrorism.
energy sources -- renewables like wind and solar, efficient natural gas,” the President said. Although nuclear power has become an ensuing concern in the aftermath of Japan’s earthquake, President Obama reaffirmed that it is still a viable option within the U.S. “Right now, America gets about onefifth of our electricity from nuclear energy. And it’s important to recognize that nuclear energy doesn’t emit carbon dioxide in the atmosphere,” the President said. “So those
of us who are concerned about climate change, we’ve got to recognize that nuclear power, if it’s safe, can make a significant contribution to the climate change question.” However, Congressional officials remain skeptical as to how effective President Obama’s energy policy will be. “I just think that the President doesn't have a plan, unless the plan is to discourage domestic production and run up the cost of everything from gasoline to manufacturer goods and agriculture products that depend on energy,” Senator John Cornyn (R-TX) said. On the other hand,environmental groups are criticizing the President for pursuing measures which are not sustainable enough. “This speech was more about polluting the future than winning it,”said Damon Moglen, a representative for Friends of the Earth. Meanwhile, political strategists, who are looking ahead to the 2012 presidential election, believe that the constituents are paying more attention to the issues. “I understand we’ve got a tight fiscal situation,” stated the President. “And as we debate our national priorities and our budget in Congress, we’re going to have to make some tough choices.”
Contact Padmavathy at padmavathy.sonti@student.shu.edu
Utah’s Immigration Law Raises Questions on National Policy
Photo courtesy of the Associated Press Protestors rally together in support of Utah’s compromise bill. The law returns immigration reform to the national spotlight.
...continued from page 1 Supporters of the new law hope to avoid the issues that surrounded Arizona’s immigration, and signed the Utah Compact. The proposal laid out principles that ranged from support of a free-market business approach to the opposition of deportation measures that would separate families. The Compact was signed by the Roman Catholic Church, the Salt Lake Chamber, mayor’s office, local immigration advocate groups, the statewide business group and the Salt Lake City Police Department. The Mormon Church did not sign the issue, but endorsed it immediately. Alfonso Aguilar, director of the Latino Partnership for Conservative Principles offers another reaction to Utah’s prevention of an Arizona-esque scandal. He said “[Utah’s legislature] saw what happened in Arizona. They passed an enforcement-only law. It was not businessfriendly, and it would drive away workers and investment.”. Aguilar supports the Utah’s new law and says it shows that Republicans can find middle ground, adding that “The Utah solution balances enforcement with the needs of the market.”
Others also view the law as a moderate alternative to a polarizing issue. Among them is Wesley Smith, director of public policy for the Salt Lake Chamber, who said “The extremes have dominated the immigration debate for so long, it makes it so refreshing to see that a practical solution is possible.” Frank Sharry, founder of America’s Voice, an organization that supports immigration reform said, “The Utah legislation is a very rough draft of what we call comprehensive immigration reform at the national level…it combines enforcement and a program to make those here legal.” These supporters’ sentiments are reflective of Wright’s when he wrote a portion of the law. State Rep. Bill Wright said “I’m of the opinion that we really don’t have the ability as a society to remove that large a portion of a segment from our society — either the cost, or just the damage it would do.” Rep. Chris Herrod, (R-Provo), a critic of the law, said it would attract more illegal immigrants to Utah. He said “People think we’ll be seen as compassionate… People will actually see us as weak. They will see we don’t care about the rule of law.” Adding to the controversy surrounding the provision is the requirement that those who apply for the worker’s permit learn English and a worker’s program that would recruit workers directly from Mexico. Despite all the controversy surrounding immigration laws, it is in both parties interest to address the issue. NPR reports that some Republican’s think the White House cannot be won if the party appears anti-Hispanic, and that Obama wants to push for immigration reform again before facing Hispanic voters in 2012. The issue is on the White House Agenda in upcoming months, and Utah’s guest-worker law will be front and center of the debate. Contact Alina at alina.fernandez@student.shu.edu
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TUESDAY, APRIL 5, 2011
Domestic News
THE STILLMAN EXCHANGE
Defense of Marriage Act Still Oh io Pas s es Bill Lim it in g U n io n R ig h t s Enforced for Immigrants By Fred DeRitis, Domestic News Writer Since Attorney General Eric Holder announced that U.S. attorneys would no longer enforce the Defense of Marriage Act (DOMA) in court—claiming it is unconstitutional—Americans in the LGBTQ community have been on a roller coaster. Despite the lack of enforcement of DOMA domestically, the United States is still acknowledging the Defense of Marriage Act in dealing with immigration. The LGBTQ community was dealt a new blow last week when the United States Citizen and Immigration Services announced that it would continue to deport foreigners married to same-sex partners. According to the Defense of Marriage Act, marriage is defined as between a man and a woman. When it comes to immigration, the U. S. cannot recognize a marriage between two members of the same sex as an actual marriage. Therefore, if a foreignborn person is in a same-sex marriage, they are not guaranteed citizenship, unlike a heterosexual marriage. This conclusion was reached after a group of lawyers from the Department of Homeland Security concluded that even though the Obama administration has not defended the constitutionality of the law in court, it still must be enforced. With the development of this new conclusion about the law, protest is rising up amongst lawyers in the United States. The Associated Press reports that Bob Deasy, a representative of the American Immigration Lawyers Association, has called the recent conclusion a “disappointment.” In response to the controversy, the policy toward same-sex couples applying for immigration benefits has changed. The new policy puts their applications on hold until the courts make a decision on the laws legitimacy instead of automatically denying their applications. According to Steve Ralls, spokesman for the LGBTQ advocate group Immigration Equality, 35,000 couples will
Photo courtesy of nj.com
Henry Velandia faces deportation because the U.S. does not recognize same-sex marriages.
be affected by the policy, nearly half of whom have children. After the announcement of the change in policy, the major problem facing LGBTQ immigrants is the emotional toll this uncertainty places on the couples. ABC News reports the story of Henry Velandia, a man from Venezuela whose husband is an American citizen. Velandia may face deportation upon the decision of lawyers reviewing the law. “I am a scholar of ancient Greek political thought and the Renaissance and politics,” Joshua Vandiver, Velandia’s husband, told ABC. “I never intended or wanted to be an activist. But I have to do what is necessary to save my marriage and to keep the one I love in this country.” Contact Fred at fred.deritis@student.shu.edu
By Doug Tatz, Domestic News Writer Every statehouse sees its share of protestors, and Ohio’s is no different. State employees have been marching in front of the Statehouse to demonstrate their disapproval of Senate Bill 5, a piece of legislature intended to overhaul collective bargaining rights of state employee unions. Despite the outcry, the Senate passed the bill with a 17-16 vote and Ohio Gov. John Kasich signed it. The law will impact about 360,000 public workers. Because Ohio is currently running an almost $8 billion deficit, many Republicans believe serious measures need to be taken to cut government spending. The result of this belief is Senate Bill 5. This law originally completely banned collective bargaining, but after extensive protests, the law was modified to only limit bargaining rights. Employees can bargain for hours and for wages, but they cannot bargain for benefits. Other important results of the law will be a cut in raises for employees, a requirement that employees help to pay their health insurance premium, a ban on government deducting part of an employee’s paycheck for a union’s political action committee, a focus on a merit-based pay increase system, and caps on vacation time. This law is extremely controversial because of the impact it will have on hundreds of thousands of employees, including police, firefighters, and teachers. It could also save as much as $1.3 billion a year. Many agree that the deficit needs to be resolved, but they disagree on which method is best. One alternative is to raise taxes, though this often results in citizens being intensely dissatisfied. However, it is hoped that by saving so much money with Senate Law 5, the government can actually lower taxes instead.
“With some of the highest taxes in the country, Ohio is struggling to create a climate that is attractive to the businesses that create jobs,” Kasich said in a press release last Wednesday. “Helping local governments reduce their costs so they can begin lightening Ohio’s tax burden helps us compete better against states that are far friendlier to job-creators.” One of the stickiest issues is the fact that some employees are required to pay a “fair-share” to the union if it provides them with protection, even if those employees are not actually a part of the union. With the law, employees would no longer be forced to pay the “fair-share,” but could potentially still be protected by the unions. The debate over this law was largely divided among political lines. Many Republicans favor the law because it will result in the much needed budget balancing. However, Democrats believe that the law is unfair to state employees and will destroy the middle class. During the vote on Wednesday, Sen. Charleta Tavares, a Democratic member of the 15th district in the Ohio Senate spoke against the law. “Local government didn’t ask for it, and we’re eliminating the middle class,” Tavares said. A few Republican members split with their party and voted against the bill with Democrats. This law also has important implications nationwide. Wisconsin has been struggling with similar issues such as worker bargaining rights. Other states are also considering legislation similar to Senate Law 5. If the law is passed in Ohio, it is sure to have powerful implications for other states and unions across the nation. Contact Doug at douglas.tatz@student.shu.edu
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F.D .A . t o St u d y Ef f ect s of A rt if icial C olorin gs By Amanda Genabith, Domestic News Writer From Wednesday to Thursday of last week, an expert panel for the Food and Drug Administration, F.D.A, met to determine if a requirement to place warning labels on the packaging of foods that contain artificial food dyes should be enacted. The 8 to 6 vote determined that companies do not need to put warning labels on their items. However, they did advocate for more studies to be conducted. The Center for Science in the Public Interest, filed a petition, asking the F.D.A. panel to consider banning the use of food dyes or at least placing warning labels on the packages, because there has been some studies that show a correlation between food dyes and increased hyperactivity in children. Hyperactivity affects five percent of the United States of America’s children. Michael Jacobson, the executive direction of the Center, was disappointed with the results of the panel but feels that because this topic has been brought to the F.D.A.’s and public’s attention, that may be changed in the future. He further explained that the wrong question had been posed. Instead of “is there proof?” it should have been “are the dyes safe?” Some people, such as, Lisa Lefferts, who serves on the F.D.A. panel as the con-
Photo courtesy of Getty Images
An F.D.A panel is concerned that artifical food colors used in popular foods could have negative effects on the health of children.
sumer representative said “consumers can make informed choices, but they need to be informed.” She voted in favor of the warning labels. Dr. Roberto F. Lopez-Alberola, chief of pediatric neurology at the University of Miami Miller School Of
Medicine says that there could be neurological problems associated with food dyes. But many others such as Barbara Blakinstone, a food scientist who is also on the F.D.A. panel as the food industry representative, argued that there are not enough
scientific proof to result in warning labels or banning of them. In Europe, food companies are required by the European Parliament to put warning labels on any packages which contain six specific food dyes. And the British government “urged food makers to stop using those six dyes”. As Dr. Lopez-Alberola said “the European Food Safety Authority has made it the law that foods that contain these additives have a warning label. This is already old news in the Old World.” The Washington Post also reported that “to avoid placing the warning labels on their products, many companies, including U.S.based companies like Kelloggs and Mars International have found natural substitutes for those dyes.” The dyes that they are referring to include Blue #1, Green #3, and Yellow #5. Their use has increased by 50 percent since this debate was first introduced in the 1970s. These dyes, along with a number of others, can be found in products like Froot Loops, Jell-o, Doritos, Twinkies, Mountain Dew, Skittles, and Lucky Charms. The dyes only purpose is to enhance the aesthetic appeal of the product; they are of no nutritional value. Contact Amanda at amanda.genabith@student.shu.edu
THE STILLMAN EXCHANGE
TUESDAY, APRIL 5, 2011
International News
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Developing Stories Portuguese Debt Crisis Brings Down Government By Raphael Baseman, International News Assistant Editor
By Wesley Satterwhite, International News Writer
Radioactive Water from Damaged Japanese Reactor Leaking into Pacific
Portugal is the latest European economy to fall into a debit crisis. The nation is currently faced with two debt redemption dates, April 15 and July 15, with totals of €9 billion or $13 billion. The country also has to refinance €4.3 billion of their debt by April and another €4.9 billion by June. However, according to analysts at Barclay’s capital, the nation has less than €5 billion in cash. This is only enough to run the country for the next eight weeks. Portugal’s ten year bond yield rose to eight percent, a record for the Euro. Eight-eight percent of Portugal’s GDP is debt. The nation’s deficit is eight percent of the GDP, over a full percentage point from the 7.6 percent that Lisbon was aiming for. Another victim of the debit crisis is Portugal’s government. Prime Minister Jose Socrates, a member of the Socialist Party, resigned from office when parliament voted against his own set of strict austerity measures. Socrates maintained that Lisbon required no bailout and through his new measures could crawl out of economic woes. His plan included reducing pensions and cutting tax benefits. The nation is already raising taxes and enduring the largest austerity measures seen in more than 30 years. Many are concerned that Portugal is the next European zone nation to require a bailout from the E.U. and the IMF. Their current political crisis is only leading to further doubt. Leading opposition party, the Social Democrats, are receptive to a bailout from the international community. Portugal would be the third of “PIIGS” nations in the euro zone to receive such financial assistance.
Japanese officials recently reported that a cracked concrete shaft located near the Fukushima Daiichi nuclear plant is leaking radioactive water into the Pacific Ocean. Although power plant employees are eagerly working to fix the leak through the application of more concrete into the shaft, it is not stopping the large amount of water that continues to pour. Tokyo Electric states that if the amount of water does not begin to lessen, they will resort to “Plan B” and insert polymers into the 2-meter deep shaft. Radiation levels are measuring at 300 times the normal dose any citizen would come in contact with on a regular basis.
Outtara Forces Take Ivory Coast Capital, Close in on Economic Hubs Forces loyal to Alassane Outtara, the winner in last year’s UN certified elections captured Yamoussoukro, the political capital week, and shortly after, the port of San Pedro, the main export location for the cocoa production. On Thursday, Outtara’s forces entered the economic capital, Abidjan, where street-fighting entered the economic capital of Abidjan on Thursday, March 31, where sporadic street fighting has continued. On Saturday, Outtara’s forces were approaching the home of incumbent President Larent Gbagbo, while violence intensified in the city. Gbagbo himself has not been seen since this past week’s offensive began. As many as 800 have recently been killed.
Gaddafi, Rebels Reach Stalemate As Western nations debate sending military supplies to rebels and Colonel Moammar Gaddafi’s isolated government attempts to reconnect with the international community, war still rages across Libya’s sandy heartland. Rebel forces said they had captured the city of Zawiya (the closest city to the capital, Tripoli) on Wednesday, while Gaddafi’s government maintained that it had repulsed the assault. In the east of the country, Rebels were forced to withdraw from the strategic town of Bin Jawad, after heavy artillery attacks by Gaddafi’s forces. Some reports said that bombing had come from gunboats and the Libyan airforce. The tide of the war has swung back and forth along the Mediterranean coast in the past week, with rebel forces complaining of a lack of heavy weapons and armored vehicles to compete with Gaddafi’s forces, and pleading for outside reinforcement.
Taliban Fighters Attack NATO Base in Kabul On Saturday, April 2, between two and six Taliban fighters attacked Camp Phoenix, a NATO base in Kabul, Afghanistan. Early reports said that two insurgents blew themselves up against the camp, while two more attempted to escape disguised in burqas, but were killed by fire from inside. Another attacker was reported to have fled the scene. Three friendly troops were injured as well, though no reports have been put out regarding whether the injured personnel were with Afghan or NATO forces.
Photo courtesyof the New York Daily News
Socialist Party Prime Minister, Jose Socrates, resigned on Wednesday, March 30.
The PIIGS consist of Portugal, Italy, Ireland, Greece and Spain. Each of these countries is the weakest and most vulnerable of economies in the euro zone. Greece and Ireland have already received bailouts. Greece’s bailout totaled €110 billion from the IMF, Ireland’s came out to €85 billion and it is feared that after Portugal, Spain will fall. Despite conflicting reports from leading financial institutions, the Portuguese government claims they have the ability to pay its debts. The nation has recently sold €1.65 billion of short term debt, at a yield of 5.79 percent, 2.5 points higher than it paid for identical bonds last year. Portugal’s treasury secretary, Carlos Costa Pina said, “Portugal has conditions to face up to the debt redemption commitments scheduled for 2011, especially the redemptions of long-term debt that will
take place in April and June.” Portugal’s President, Anibal Cavaco, accepted Socrates resignation and has set for legislative elections to take place on June 5. He also dissolved the Portuguese parliament, stating that “In the current parliamentary framework it was not possible to generate a government solution that could run the country’s affairs. I have taken this decision having in mind the difficulties of the minority government to approve the necessary measures to face the country’s problems. There is also a lack of confidence between the political parties.” The Social democrats are currently ahead of Socrates’ Socialist in recent polls. Contact Wesley at wesley.satterwhite@student.shu.edu
Civil Unrest in Middle East Reaches Syria
Photo Courtesy of of the Global Post Protesters gather in the city of Old Damascus in Syria on March 25.
By Angela Kelly, International News Writer Just over two weeks ago, citizens in Syria began staging demonstrations and protests throughout the country. Located between Lebanon and Turkey, Syria has been under the rule of the same authoritarian family, the al-Assads, for over forty years. Although talk of anti-government and secularism is strictly prohibited, Syrians are not prevented from accessing technology appreciated by the western world, such as use of the internet, including social networking sites like Facebook and Twitter. While Al-Assad has yet to receive the same negative media attention as Mubarak and Quaddafi, the citizens of Syria are still looking toward future government reform. As of this past Tuesday, the president accepted the resignation of his cabinet. However, Al-Assad has does
not believe his people’s concerns are valid, claiming they are brought to the streets by outside sources rather than the problems Syrian citizens feel are griping their own country. Furthermore, Al-Assad believes that although many protestors had good intentions, no action has taken place in order to address the concerns of Syrian citizens. Media attention surrounded Syria when reports of arbitrary arrest and imprisonment without trial surfaced. Twelve children were arrested for graffiti on public property that revealed anti-government messages, which then prompted the stunned town of Daraa to react. One of the messages that were written on a wall stated “The people want the regime to fall.” Since then, it has been a dominoeffect of so called “rebellious acts” performed by the citizens of at least five Syrian cities. The acts of arbitrary arrest and
imprisonment without trial are what many Middle Eastern countries, including Syria, call ‘emergency laws’. Ironically, these particular laws are a main reason for the recent gatherings of protest from the Syrian people. Put into action in 1963, this form of government has gone unrestricted, and can allow many human rights violation to occur on a regular basis. As of March 22, they have called for the government to launch an independent investigation on the death of at least six anti-government protesters in the same city as the graffiti incident. Security forces have started opening fire on its own people, as well as releasing tear gas into the demonstrating crowds. Amnesty International’s Deputy Director for the Middle East and Africa, Philip Luther, states “The use of lethal force by the Syrian security forces against protesters who, by all accounts, were not putting others’ lives at risk is totally unacceptable. People must be allowed to assemble and protest peacefully.” Since this violent attack, the death toll of Syrian casualties has reached beyond seventy, and there are no signs of the Syrian government recalling the ‘emergency laws.’ Currently, the White House has made no decisive comment on the situation except to relate the message that those who commit violent acts upon their own people must be held accountable for their actions. Contact Angela at angela.kelly@student.shu.edu
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TUESDAY, APRIL 5, 2011
THE STILLMAN EXCHANGE
International Business
Spectrum Shortages Rattle Two Global Telecom Deals By Alexandra Hauenstein, International Business Assistant Editor Two very different telecom deals, AT&T’s acquisition of T-Mobile USA and Vodafone’s acquisition of Essar, are facing the same obstacle: how to manage spectrum shortages in the wake of increasing demand for mobile broadband. According to an AT&T press release, the largest carrier in the U.S. will pay $39 billion in cash and stock to acquire TMobile USA from German-owned Deutsche Telekom AG. If the AT&T-TMobile deal goes through, T-Mobile customers will have access to AT&T’s attractive fleet of smart phones, notably the iPhone. Smart phones require additional mobile broadband, and thus additional spectrum. Even without the merger, AT&T does not currently have enough spectrum to be able to sustain its growing mobile broadband demand.
Photo Courtesy of The New York Times
Vodafone is becoming ubiquitous in the developing world.
Acquiring T-Mobile would immediately increase AT&T’s spectrum supply, addressing this issue in the short run. While this will improve service quality by making voice calls crisper and dropped calls less frequent, Americans are worried
that the AT&T deal will lead to a network monopoly. T-Mobile currently anchors the price of cellular phone plans and does not require a contract, but with the company out of the picture there will likely be a hike in future prices. British company Vodafone, the world’s largest carrier, has agreed to pay $5 billion to Essar Group for the Indian company’s 33 percent stake in Vodafone Essar. This will give Vodafone majority control over the third largest mobile operator in India. The rules of the game in emerging markets are largely being made up as they go, allowing governments to take advantage of companies like Vodafone, which has faced multiple unexpected hurdles during the process of finalizing the deal in India. The firm is currently fighting the Indian Supreme Court over a $2.5 billion tax. Both deals would contribute to expanding network infrastructure, giving more people access to service.
AT&T, opting to strengthen existing infrastructure in the U.S., said in a press release that it would increase its infrastructure investment in the U.S. by $8 billion. This would primarily expand and improve service to rural areas. Rather than use its resources to improve service and coverage domestically by investing in already existing infrastructure, Vodafone has chosen to tap into the emerging markets where infrastructure is underdeveloped. In order for the cost of building this infrastructure to pay off, however, Vodafone must have access to spectrum in these countries. Vodafone has already paid $3.7 billion in spectrum costs in India following its Essar acquisition. Contact Alexandra at alexandra.hauenstein@student.shu.edu
BP Frozen Qantas Raises Prices and Cuts Costs in the Face of Predicted Losses Out of Arctic Oil and Gas Deal by Arbitration Court By Nicole Blackford, International Business Writer
...continued from page 1 While BP downplayed its most recent business venture setback with Rosneft, Stan Polovets, AAR chief executive believes that this dispute has harmed the working relationship between BP and AAR. “We expect [BP chief executive] Bob Dudley to make every effort to rectify the situation and rebuild the trust that has been lost between BP, AAR and the management of TNK-BP, says Polovets.” Following last summer’s environmental disaster, BP invested heavily in the Russian market and the deal between BP and Rosneft was to be unprecedented. The Arctic sea bed has become an increasingly potent source of new oil reserves as the decline of ice flows has allowed companies to gain access to more land mass. In 2009, the United States Geological Survey estimated that the Arctic may be home to 30 percent of the earth’s undiscovered natural gas reserves and 13 percent of its undiscovered oil. The deal, which BP and Rosneft described as a “strategic alliance” would have allowed the two companies to share expertise and technology when exploring the Arctic sea bed. The proposed plan between BP and Rosneft would have included Rosneft taking 5 percent of BP shares and BP would proceed to take close to 10 percent of Rosneft shares. Contact Tristan at tristan.hugo-webb@student.shu.edu
Australian airline company Qantas has announced that prices will increase for the fourth time this year due to skyrocketing fuel costs. High ticket prices are expected to threaten demand for fares, especially for those looking to use Qantas as their airline provider for vacation travel. Although domestic flights are only rising by a small percentage, approximately 5 percent, international travelers are getting hit hard with $50 to $250 increases each way. These increases do not make up for the fuel costs but keep the company from sustaining even greater losses. Qantas has not promised that there will be no more increases in fares because the situation regarding oil prices is still unpredictable. The company blames natural disasters as part of its reasoning for hiking prices and cutting costs this year. The recent flooding in Queensland and the recent earthquake in Japan are expected to cause a decrease in
profits that totals over $100 million. According to an article in The Herald Sun, an Australian news website, CEO Alan Joyce announced that cost-cutting measures will include reducing both domestic and international flying capacity, retiring aircrafts, and cutting staff positions. The staff layoffs will mostly consist of a reduction in management positions throughout the company. In addition, Qantas will be downsizing planes from Boeing 747s to Airbus A330s between Sydney and Tokyo. Also, four outgoing flights to Japan will be cut out of the weekly schedule from now until August. Joyce also said that the significant increase in the price of fuel is one the biggest challenges the company has faced in the years since the global financial crisis. Uprisings in the Middle East have only been adding to the challenge and it is unknown when that situation will come to an end. On a positive note for investors, Qantas shares were up at the middle of last week in response to the cost-cutting plan that is
Photo courtesy of The Telegraph
expected to help maintain some of the company’s profits. The S&P index had also increased during this week. In attempt to aid Australian travelers stuck in Japan after last month’s earthquake, the company has made competitive rates available in all cabins. A spokesperson for Qantas said that its lowest fares have been made available without any restrictions. Contact Nicole at nicole.blackford@student.shu.edu
China’s Lenovo Looks to Eye-Tracking Technology for Laptops By Rebecca Townsend, International Business Writer Chinese computer manufacturer Lenovo has recently teamed up with Swedish eye-tracking company Tobii Technology to create 20 prototypes of the first ever laptop with built-in eye-tracking technology. Although the companies are not yet finished developing the product, built-in eye-tracking technology is shaping up to be a promising endeavor. This groundbreaking technology allows computer users to navigate their computer screens without a computer mouse. Users simply have to look at the computer screen and the pointer will follow their eyes. The interface is described by The New York Times as “walking around” the computer screen, as the tracking device, which is accurate within 2 millimeters, allows smooth zooming and scrolling func-
tions. This new technology is not only interesting, but is also incredibly useful. Tests done by Lenovo and Tobii have proven that eye-tracking speeds up most computer processes. It makes working on multiple screens and browser windows easier, as it activates whatever the user looks at. The elimination of mouse controlled scrolling eases the stress put on the human hand from using the computer. Quadriplegics, who have been using similar technology for years will find this technology especially positive, because it is much quicker and cheaper than older versions of eye-tracking technology. Lenovo supplies Seton Hall students with their laptops. Sophomore Samantha Woodington, when asked how she felt about the concept, said “It’s a great idea, but I think it wouldn’t be user friendly, and would take a while to perfect.”
This sophisticated technology is expected to eventually be applied not only to PC’s, but to televisions and video games as well. Although eye-tracking is currently a novelty, and is still in stages of development, Lenovo and Tobii are working on ways to make the technology more accurate and user-friendly, and less expensive. By the time the product is released, it is expected to be practical for most consumers. Elvesjo from Tobii reported to Businessweek that “we’ve never had anything this cheap, small, and functioning. The goal is to put it in every desktop and laptop.” If the companies are successful, this technology will literally change the way we look at computers. Contact Rebecca at rebecca.townsend@student.shu.edu