Should the recent murders in Connecticut make it accepSee p. 8 tible to use capital punishment?
Students attend Careers in Business and Meet the Firms. See p. 6
Peace talks halt between Palestine and Israel. See p. 15
The Stillman Exchange
The Official Business Publication of Seton Hall University
Made possible by the generous support of the O’Brien Family
Too Big to Fail?
Stillman School Develops Young Entrepreneurs
By Stefano D’Urso, Money & Investing Writer
By Ian Mehok, Managing Editor
“Too big to fail” is a term used in regulation that refers to government or central banks not allowing companies to fail that would have a disastrous impact on economic conditions. As a result, favorable governmental policies are provided, resulting in the problem of moral hazard. The phrase became a popular notion after the 2007 global financial crisis left world economies in a state of meltdown. In the United States, commercial banks such as Citigroup, Bank of America, Morgan Stanley, and JP Morgan Chase all fell under the “too big to fail category.” Regulators argued that these banks held too much power and high-risk investments to justify allowing them to close their doors, so they were provided with bailout funds through the Troubled Asset Relief Program. Perhaps these regulators sensed a bigger storm coming? Presently, the United States has seen the largest number of bank failures in close to 20 years. This has led to an insurmountable amount of job losses, an accelerated decline in lending, and left the banking industry’s few survivors in even more control over customers. Precisely 279 banks have failed since September 25, 2008, when Washington Mutual, Inc. became the biggest bank failure on record. Last Tuesday, Standard & Poor’s commented that failures are expected to “persist for some time”, after two more banks went down in the last week. The state with the most bank failures is Georgia, with a total of 46, followed by Florida with 43, and Illinois with 40. New Jersey has only had 3 banks close since 2008: Citizens Community bank in Ridgewood, First BankAmericano in Elizabeth, and most recently, ISN Bank in Cherry Hill. In the second quarter of 2010, the Federal Deposit Insurance Corporation increased its number of troubled banks by 6 percent to 829 nationally. Analysts and economists estimate that when it is all said and done, the amount of U.S. banks that will have failed or been consolidated will grow close to 3,000.
It took an estimated 870 years to build Rome, 28 years for Wal-Mart to become the nation’s number one retailer, and about 12 years for Google to dominate the internet. The world has undoubtedly gotten better at supporting entrepreneurship. Yet, the opportunities available for entrepreneurs have never been better. With this growth in innovation and creativity, the Center for Entrepreneurial Studies at Seton Hall is providing students with courses that develop their inventive talents. The term “entrepreneur” describes a person willing to organize a business venture while assuming the risk of that idea. The Center for Entrepreneurial Studies has attempted to lessen that risk by creating a structured approach of teaching students about the option of self-employment as a career option. Although the notion of developing entrepreneurs might seem far-fetched, the Center has tackled it through a hands-on approach where new student businesses are encouraged and moved forward with the help of the program. A prime example of the work being done by the Center is shown in the “Pirate Pitch” program, where students will take part in a real-life venture funding process. Starting with a January 25 deadline for initial applications, potential businesses will go through a three-round competition before two winners are chosen from the field. The first-place team, with the help of a $3,500
Continued on page 5...
INDEX Money & Investing.............. 2 Stillman News...................... 6 Ethics ................................... 8 Editorials ............................. 9 Sports................................... 10 Domestic News..................... 13 International News.............. 15 International Business........ 16 Front cover photo courtesy of Mike Reuter
TUESDAY, OCTOBER 5, 2010 - VOL. 7 NO. 3
gift from the Center of Entrepreneurial Studies, will receive business, legal and marketing services to help kick off its journey towards becoming the next great business. The program has done more than just provide an avenue for startups though, as it now boasts ten scholarships available exclusively to entrepreneurship students. Starting with two entrepreneurship scholarships awarded for the fall 2010 semester, the program will continue to award an additional
eight David B. Gerstein scholarships throughout the remainder of the year. But nowhere is the growth of the program more evident than in its increased campus and community involvement. The program has forged alliances with the City of Orange to give entrepreneurs there a chance to revitalize its downtown business district.
Continued on page 6...
U.S. House of Representatives Approves Sactions on Chinese Currency By Raphael Basemen, International News Writer On Wednesday, September 29, the U.S. House of Representatives approved a bill by a wide margin calling for sanctions against countries that hold down the value of their currencies. The bill was passed by a margin of 348 to 79, and will now need to pass the Senate in order to become law. While supporters of the bill came from both parties, 74 of those who voted against it were Republicans, and
only five were Democrats. The bill is not aimed directly at China’s currency. Under current regulations, the Commerce Department is allowed to impose sanctions on foreign governments that impose “improper government subsidies.” The bill passed by the House would expand the definition of improper subsidies to include currency manipulation to gain trade advantages. U.S. companies trading with China will also be allowed to bring complaints to the Commerce Department regarding any situation where a Chinese
company is seen as profiting unfairly because of the value of the yuan. Speaker Nancy Pelosi said in a speech on the House floor, “We do this because one million American jobs could be created if the Chinese government took its thumb off the scale and allowed its currency to respond to market forces.” She also said that in the last 20 years, the U.S. trade deficit with China had gone from $5 billion annually to $5 billion weekly. Continued on page 15...
Wal-Mart Invests in Africa through Local Firm By Rachel Rosenstrock, International Business Writer Wal-Mart Stores, Inc. announced on September 27 its plans to enter into the African market through purchasing South African company Massmart Holdings Ltd for $4.2 billion. Massmart, which is South Africa’s third largest retailer, operates 290 stores throughout sub-Saharan Africa. Buying Massmart would constitute Wal-Mart’s largest international deal since its $11 billion purchase of the UK chain Asda in 1999. With slowing growth in the United States following the recession, Wal-Mart has begun to look toward emerging markets for
further expansion beyond the 15 countries it already operates in. International sales have grown rapidly over the past two years, composing roughly a quarter of Wal-Mart’s earnings. Following its success in counties such as China and Brazil, the firm is optimistic about its plans for future development. South Africa has been identified as a rising country with great growth potential. According to the International Monetary Fund, sub-Saharan Africa is expected to grow by almost 6 percent in 2011. This high priced acquisition signifies Wal-Mart’s commitment and confidence in the region. Vice executive president of Wal-Mart Andy Bond in particular sees South Africa as
offering a “platform for growth and expansion in other African countries.” Shoprite, another South African company, had also been considered before the formal bid for Massmart was announced. While Shoprite specializes in mainly food retailers, Massmart manages a large wholesale business which more closely resembles WalMart’s existing business model. Also, with more than 1,100 stores, an acquisition of Shoprite would have required a higher price. While Wal-Mart did express interest in maintaining Massmart’s current management structure, it is keen to expand Massmart’s retail food division. Continued on page 16...
TUESDAY, OCTOBER 5, 2010
Money & Investing
This Week’s Poll Question:
Has the FDA’s warning to mouthwash makers affected your purchase decisions?
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A: I will continue to buy them B: I never bought them
D: I will change the product I buy Respond at www. stillmanexchange.com
Last Weeks Poll Question:
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When do you believe the unemployment rate will begin to drop? 2-4 months (5%) 5-7 months (23%) 8-10 months (37%) a year or more (35%)
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Earnings Stock to Watch: MedQuist Inc. Graph courtesy of Yahoo! Finance
• Ivory Coast opened a cocoa processing factory Friday that will increase its processing capacity to make it the largest in the world, an official said. • Bank of America is delaying foreclosures in 23 states as it examines whether it rushed through the foreclosure process for thousands of homeowners without reading the documents. • Gov. Arnold Schwarzenegger and legislative leaders said they struck a comprehensive agreement after an intensive five-hour meeting Friday night, ending California's record-long budget stalemate after 93 days. • AT&T, Inc. is booking an $8.3 billion gain in its third quarter to cover depreciation of wireless assets, under terms of a settlement with the Internal Revenue Service.
Blackberry to Open Rehab Clinics in 6 Major Cities Nationwide By Patrick Eagens, Money & Investing Writer
C: I will do more research before I buy
THE STILLMAN EXCHANGE
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Research In Motion Limited co-CEO Jim Balsillie has decided to open rehabilitation clinics for BlackBerry users in select states across America. Clinics were opened yesterday in New York, Los Angeles and Chicago. Following their first official day of giving treatment to the afflicted, the Los Angeles location was apparently fully booked for the next 16 years. New York and Chicago are both unavailable for at least a decade. Lines outside of the treatment centers extended up to multiple city blocks. Different types of treatments offered within the facility include group therapy, and a multidisciplinary team that requires the use of behavior, drugs and improvements in the social status of the patient. The withdrawal symptoms include intense cravings, irritability, hunger, anxiety and paranoia. These feelings prevent the individuals from quitting the use of their BlackBerrys. The “Crackberry Addiction” has become prevalent in the United States within the last four to five years. Studies show that 82 percent of Americans own a cell phone, BlackBerry, iPhone or other device that functions as a cell phone. Another study from a website has shown that, “Texting by adults has increased over the past 9 months from 65 percent of adults sending and receiving texts in September 2009 to 72 percent texting in May 2010. Still, adults do not send nearly the same number of texts per day as teens ages 12 to 17, who send and receive, on average, 5 times more texts per day than adult texters.” An average American adult with a BlackBerry addiction is described as having specific symptoms including: red, irritated eyes from lack of sleep due to continuous use, sore thumbs from typing, and excessive communication with friends on BlackBerry Messenger. Studies have shown that users’ lives are centered around the device, with heavy addicts using them as much as 12 hours a day. They are known to appear distant, as if in their own world, constantly texting. These addicts appear distant from you in a conversation. U2 singer and global activist Bono plans to open a clinic in some third world country within the next 24 hours. The widely known humanitarian will also play a benefit concert with Bruce Springsteen and Stevie Wonder to aid the millions of Americans affected by the BlackBerry epidemic. “BerryAid” is being sponsored by Google and MTV, with attendance estimates at around 500,000. Many Americans are using alternatives to avoid rehab, such as switching to the Apple iPhone or Motorola Android. BlackBerry released the BlackBerry Torch 9800 Smartphone on August 12.
Contact Patrick at firstname.lastname@example.org
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, OCTOBER 5, 2010
Smart Grid Receives $200 Billion Investment By Scott Watson, Money & Investing Writer Recently, a hefty investment of $200 billion was made in smart grid technology to rework power distribution methods that are becoming outdated. Since the twentieth century, people have been relying on a few central generators that sent power to a specified area. The plan is for smart grids to deliver electricity to consumers using digital technology so that households can more accurately predict power usage, resulting in energy savings. This new technology would enable a more modernized power grid that addresses both the issue of energy independence and global warming. Using specialized meters, electric companies will be able to keep track of the amount of electricity flowing into households as well as the system as a whole. The companies would then be able to modify the power output to specific locations if there is too much energy flowing into those areas.
ment market. In order to gain a competitive advantage against the competition, Cisco has partnered Photo courtesy of consumerenergyreport.com with Itron, one of the leading providers of intelligent metering. By joining forces, the two companies would be able to optimize the delivery and use of energy. One of the leading competitors is ABB, the This is a layout of how the smart grid system works. It is designed to save largest builder of energy by better communicating with households via new technologies. electricity neting for grants that would allow their energy works. Based in Zurich, ABB is attempting monitoring systems to be used on the new to develop automation devices for power grids. One such company is Cisco Systems lines. (NASDAQ:CSCO). As of September 30, these competitors, Cisco, the largest maker of energy in addition to other companies, have been monitoring devices, has been lured into the actively pursuing the planning and developmassive investment with the hopes of gain- ment of smart grids in order to obtain $3.4 ing access to the project’s power manage- billion in federal stimulus grants. Two major technology companies are trying to get a piece of the action by apply-
These federal grants would provide companies like General Electric (NYSE:GE) and ABB funding to develop power lines for the new networks. With the new power plan in the U.S. taking effect, power consumption will be lowered and the environmental impact will be lessened as well. Cisco has already been testing their power monitoring systems on businesses. In less than one year, NetApp, a storage and data management provider, saved $2 million by using the new monitors. Cisco customers should expect to see similar power management devices in their households by 2011. With these devices being offered, we can expect to see substantial utility savings in the coming years. As a whole, smart grids will enable the world to consume less power and become more energy efficient.
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Gold Hits Record Highs, Continues to Rise By Doug DeMarco, Money & Investing Writer Gold has consistently been a safe haven investment. This remains true as the price per ounce continues to rise. As of last Friday, gold was valued at over $1,300 an ounce. Despite growing to this new peak, investors see no stopping the growth in the value of the metal. Over the past two years, the Federal Reserve has bought a large amount of Treasuries, which is known to cause inflation in the near future for the U.S. economy. However, inflation has not increased drastically. Thus, this does not explain why gold has increased in value to the extent that it has.
In fact, it is possible that deflation sets in which causes more investors to become wary of risk taking. Most of the gains result from the lack of faith in the economy and the decrease in the value of the U.S. dollar. Gold is viewed as potentially more stable than investments in stocks and other volatile investments. According to Valentijn van Nieuwenhuijzen, head of fixed income and economics at ING Investment Management in The Hague, Netherlands, “Gold is not just an inflation hedge anymore. It's a systemic risk hedge. Whatever shock to the financial system you can think of materializing, that’s a reason to buy gold.” David Beahm, vice president of economic research with Blanchard & Company
Inc., described the actual potential of gold. He states that when inflation is accounted for, gold may be able to reach the $2,300 per ounce plateau, almost doubling what it is presently worth. There are only three possibilities that could result in stagnation in the record growth seen in gold prices. First, the Federal Reserve would have to stop printing money. This would mean the Federal Reserve would have to believe that there is enough cash in the economy for substantial economic growth. Another reason would be that the dollar would gain strength in comparison to the euro and other currencies. The final reason is if the Europe Union can put an end to all of its economic woes in a reasonable
amount of time. None of these reasons seem likely in the near future, which is pleasant to the ears of gold investors. Gold can be seen as the indestructible investment during rough economic times. Despite weak company performance, the stock market weakening, and uncertainty over the economy’s ability to recover, gold steadily marches on. With only a few obstacles in the way of gold’s upward trend, look for gold to keep increasing in value and for more people to invest in the precious metal.
Contact Doug at firstname.lastname@example.org
Washington D.C. Workers Highest Paid in the Country By James Donnelly, Money & Investing Writer In Washington D.C, our great nation’s capital, the people are enjoying their salaries, which ranks as the highest in the U.S. The median average income in the D.C. area is $85,198. According to the Census Bureau’s annual survey of income poverty in the United States, D.C’s income fared much better than the majority of the other states. Most states and major metropolitan areas suffered some sort of drop in income. During 2008 and through 2009, D.C and San Antonio were amongst the few
places that showed a stable, flat income. According to Mark Zandi, chief economist of Moody’s Analytics, Washington D.C’s success could be attributed to the fact that the federal government is a stable source of income and jobs. In addition, the city has the largest percentage of college degrees at both the undergraduate and graduate levels. However, the exceptional income is not just limited to the educated government employees; a decent number of private businesses have opened up shop and are swelling in profitability. With the good also comes the bad. Metropolitan areas such as the Rust Belt
and the Sun Belt suffered large income drops. According to CNN Money, “the Rust Belt, Detroit median income fell the most, dropping 10 percent to $48,535; Cleveland recorded an 8.5 percent decline to $45,395, and in Indianapolis income fell 7.1 percent to $50,140.” Sun Belt cities saw similar declines in income. Orlando’s “median income fell nearly 10 percent to $46,856, and Miami dropped 8.2 percent to $45,946.” Nationally, income dropped by 2.1 percent to $50,221 in 2009. San Antonio on the other hand, “did not participate in the housing bubble and didn’t suffer in the bust,” according to Zandi.
The metropolitan area has few financial services companies, an industry that was hit hard in the financial crisis. It also has very limited manufacturing companies which was also an industry hard hit. In the city of San Antonio, wages are low. The average household income is 44 percent below that of Washington D.C, therefore losing companies is not likely. In fact, it is more likely that the area will see expanding businesses due to its low cost of living. Contact James at email@example.com
Blue Collar Jobs Begin to Show Improvement By Jack Arenella, Money & Investing Writer Blue collar jobs, such as factory jobs, are beginning to show improvements in employment. Recently, the number of blue collar jobs has increased throughout America. CNN reports that since the beginning of the year, there has been a 1.6 percent increase in manufacturing jobs. This doubles the amount of growth in other areas of the private market. The ISM Index reports that 20 percent of manufacturing industries are reporting an increase in the amount of staff added. The same report also indicates that only 5 percent of manufacturers are cutting workers. As a result, the unemployment rate for the manufacturing market has improved. According to CNN, the unemployment rate has fallen from thirteen percent in
December 2009 to 9.5 percent in August 2010. In comparison to the overall labor mar-
Photo Courtesy of goauto.com.au The overall unemployment rate in the manufacturing industry has fallen 13 percent since December 2009.
ket, the manufacturing business is doing tremendously better. The overall unemployment rate has fallen from almost 10 percent to 9.6 percent in the same period. This shows that the blue collar employment industry is rebounding at a considerable rate. Even though the blue collar industry is
improving at a positive rate, it still has room for improvement. The economy is still recovering too slowly to instill much confidence. But in comparison to the overall unemployment rate in the market, the future appears to be bright. An increase in manufacturing jobs is a positive sign for the outlook of the economy heading forward. If the private sector is hiring people for manufacturing purposes, this means that factories are producing goods at a rate that requires more workers to help the manufacturing process. If more workers are being hired, more cash is available for consumer purchases. With more money available, people will begin to invest into other types of business, resulting in growth throughout the private sector. This trend will continue and eventually,
the U.S. economy will be back on track for steady and sustainable growth. U.S. history proves that when this country suffers an economic crisis, the result is a stronger and more prosperous nation. The blue collar industry has suffered tremendously throughout the last century; this rebound suggests that this downward trend has ended. It has only been three years since the financial crisis began. There are strong indicators in the blue collar manufacturing industry that suggest the economy is improving. The U.S. has suffered worse but has always recovered. If history is an indicator of things to come, this has only been a slight setback.
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TUESDAY, OCTOBER 5, 2010
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Nintendo’s 3DS Will Miss the Holiday Season By Scott Giveans, Money & Investing Writer In the wake of the immense popularity of 3-D entertainment, movies have never felt so authentic. Unfortunately for Nintendo, its lack of a 3-D gaming system available for the holiday season has made its business less competitive. Previously hyped to be released before Christmas, Nintendo’s newest system, the 3DS, will now be released March 2011 in the United States. This development, combined with a strengthening yen and weakening sales, has led Nintendo to slash its earnings forecast. After projecting profits of 200 billion yen ($2.4 billion) through March 2011, the company announced Wednesday a significantly altered financial outlook with profits of only 90 billion yen ($1 billion). The unfortunate after Christmas release for Nintendo’s heavily anticipated 3-D handheld game console which feature glasses-free 3-D technology was the result of the product’s imperfections. Nintendo will utilize the additional months to perfect the 3-D technology and allow outside developers to originate games that are superior to that of Apple’s iPod Touches and iPhones.
In recent months, Nintendo has seen its sales dwindle as consumer demand has fallen for its current product offerings, the DS and Wii. Since the release of the latest hand-held video game consoles, the Nintendo DS and
other smartphones for games, no additional cost outlay is required for the systems. As a result, even when Nintendo’s 3-D system is released, there is no guarantee that the product will revive the company or even be a success. Photo Courtesy of Nintendo The delayed release does allow Nintendo’s competitors, Microsoft (NASDAQ:MSFT) and Sony (NYSE:SNE), an opportunity to pave the way for advanced gaming technology. With an expected release by November, both the Nintendo is looking to enter the 3D entertainment market with the intro- Microsoft Kinect duction of its 3DS. The product closely resembles the companies DS hand- motion sensor accesheld system which has been on the market for some time. sory and the Sony Sony PSP, the market has undergone a con- Playstation Move motion control device siderable transformation. will look to improve on a hurting video A mixture of improved quality, low game market. costs, large selections, and portability has According to research done by the made smartphone games a comparable NPD group, U.S. video game sales are alternative to traditional hand-held gaming down 8 percent and worse yet, hardware console. sales are down 12 percent relative to August At times, Apple’s Apps can be as much last year. as $40 less to the consumer and, since most Feeling the effects of declining video people do not primarily purchase iPods and game sales, Nintendo, Microsoft and Sony
stock have already fallen 26.71 percent, 17.73 percent and 20.39 percent, respectively. They are in need of an innovative product that they can build a new business around. Unfortunately, each product has yet to be proven or established and will face an uphill battle trying to convince consumers to purchase the new gaming consoles. For Nintendo, the biggest factor will be to sway consumers with the idea of 3-D video games. Given the inability to demonstrate the effects of the 3-D technology in most marketing avenues, Nintendo must get the console in the hands of consumers and hope the technology will sell itself. Nintendo, Microsoft and Sony will “duke it out” over the next couple of months for next generation video game console supremacy. Having put itself “behind the 8-ball” with the delayed release of its 3DS game system, Nintendo will have to hope that its console is as successful as its Wii and can outlast the competition despite being last to the market.
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Walgreens Weathers the Storm By Steven Paramo, Money & Investing Writer With earnings announcements and news articles reporting nothing but massive losses and corporate scandals, there is one company that is going against the trend thanks to cost controls and a massive increase in prescriptions sales. That company is your friendly, neighborhood Walgreens. Walgreens (NYSE:WAG) has effectively weathered the storm, looking at the recession as nothing more than a golden opportunity to by-pass would be competitors. According to Market Watch, the price per shares of Walgreens stock has increased 11 percent to $33.75 per share as of last Friday, surpassing Wall Street’s estimates. Most of Walgreens’ success comes from its increase in prescription sales. Prescription sales, which alone account for roughly 66 percent of the company’s total revenue, saw an increase of 6.5 percent in the fourth quarter. Walgreens profit jumped 7.8 percent to $470 million, compared to
$436 million the previous year. million shots this year, despite flu season In an earnings report, Chief Executive not peaking until February. Walgreens has Greg stated, “We were able to once again set a goal to administer about 15 million generate increased cash flow from opera- shots by year’s end. tions for the quarter and for the year we For the fiscal year ending August 31, returned a record amount of cash to share- 2010, Walgreens earned $2.1 billion, or holders in the form of share Photo courtesy of Crunchgear.com repurchases and an increase in our dividend for the 35th consecutive year.” Another key element of success for Walgreens has come from an increase in employees administering flu shots. According to Medill News, Walgreens has around 26,000 health professionals certified to give immunization shots. This is an increase of Walgreens has outperformed much of its competition 10,000 professionals comduring the recession. Its shares increased 11 percent pared to last year. which surpassed Wall Street’s best estimates. Stemming from the shortage of shots last year, Walgreens aimed to $2.12 per diluted share, which is up 5 permake vaccinations available to everyone all cent from $2 billion last year or $2.02 per day, every day. share. Revenue rose more than 6 percent to They have already administered over 2 $67.4 billion, according to Medill News.
While Walgreens has been able to increase revenue stemming from cost cuts and smart management, they have also launched the nation’s first Safe Medication Disposal Program. Announced via Walgreens website, for $2.99, customers are now able to purchase a specially designed envelope that they can use to mail old over-the-counter and prescription medications for safe and proper disposal. Not only does the envelope provide an easy way for customers to dispose of their old medication, it is also eco-friendly. Walgreens has proven that even with the difficult economic climate, companies can still thrive on simple cost cuts and smart management. Even though Walgreens strives to conduct business operations ethically, it is still able to come up with innovative ideas to help the environment. This is the ideal model that all other companies should follow. Contact Steven at firstname.lastname@example.org
AOL Aquires TechCrunch By Stephanie Gonzalez, Money & Investing Writer AOL, Inc. (NYSE: AOL), the company that once brought dial-up internet to customers across the country has purchased TechCrunch. TechCrunch is a blog company that compiles articles on the emerging technologies of today’s world, as well as the businesses that reign in these technological advances. It began in Atherton, CA by founder Michael Arrington, and eventually grew to one of the most influential tech blogs available on the internet. It is known worldwide and has different sections such as MobileCrunch, CrunchGear, TechCrunchIT, GreenTech, and TechCrunchTV. Now why would AOL buy a company like TechCrunch? AOL was the original American icon of the internet, and has contributed to our technological history. When
one hears the name AOL, one thinks “You’ve got mail,” the little yellow running man, AIM, and America Online internet service. Now, AOL is a growing business that has completely revamped its operating model. However, Photo Courtesy of AOL in 2006 America Online, Inc. officially changed its name to AOL, and in 2009 the running AOL’s Running Man has man became become an icon of the internet. famously recognized by the Advertising Icon Museum and the Madison Avenue Advertising Walk of Fame. AOL has launched over 80 content sites by 2009. This includes MapQuest, Moviefone, and Netscape. AOL has actually won an Emmy Award. It has really
expanded from what used to be a dial-up internet service provider. Now there is no question why AOL would buy TechCrunch. Michael Arrington, founder of TechCrunch, admitted when speaking about the sale that “The truth is I was tired. But I wasn’t tired of writing, or speaking at events. I was tired of our endless tech problems, our inability to find enough talented engineers who wanted to work, ultimately, on blog and CrunchBase software.” Arrington also admits that, “Unlike most startups in Silicon Valley, the centre of attention at TechCrunch is squarely on the writers. It’s certainly not an engineering driven company.” The negotiations started in May between Arrington and Armstrong , the chief executive of AOL. What started out as a casual conversation between the two eventually turned into the acquisition. The deal allows TechCrunch to main-
tain its business model. Armstrong accepted the premise that TechCrunch’s current operations should not be tampered with. On September 29, 2010 TechCrunch sealed the deal with AOL. Arrington is not leaving behind his creation. He will still maintain the site. However, AOL will provide him with the engineering resources that he needs. AOL’s mission statement, “to inform, entertain, and connect the world” is the main idea that TechCrunch embodies with its news of technical advancements. TechCrunch simply wishes to inform audiences on what is new in entertainment, business, and in the world but with a technical twist. Given these commonalities, the merging of TechCrunch and AOL is a match that was meant to be.
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FDA Warns Mouthwash Makers About False Claims By Ashley Perrone, Money & Investing Writer Scared of getting gum disease? Tired of building up plaque on your teeth? Before talking a quick trip down the block to the nearby pharmacy and walking down the aisles of Walgreens (NYSE: WAG) or CVS (NYSE:CVS) looking for mouthwash products, make sure you read between the lines to see just how effective they really are. The Food and Drug Administration (FDA) has been sending warning letters to the leading mouthwash brands that are making “unproven” claims that their products are effective in eliminating plaque and reducing the chance of getting gum disease. Johnson & Johnson (NYSE:JNJ), CVS Corp. and Walgreens Co. have received letters regarding the unconfirmed claims on their products. The FDA has asked the companies to remove the statements from their labels that claim their products remove plaque and promote healthy gums.
According to FDA officials, the leading brands have no record of proof that their products are backed by proven studies displayed by the promotional labels. Listerine Total Care Anti-Cavity Mouthwash, CVS Complete Care AntiCavity Mouthwash and Walgreen Mouth Rinse Full Action, all contain an ingredient that is known to actively fighting cavities. FDA officials have said, “These mouth rinse products contain the active ingredient sodium fluoride.” The FDA claims that “sodium fluoride is effective in preventing cavities but has not found this ingredient to be effective in removing plaque or preventing gum disease.” Deborah Author, director of the Office of Compliance within the FDA mentioned, “It is important for the FDA to take appropriate enforcement action when companies make false or unproven product claims to ensure that consumers are not misinformed or misled.” A company cannot claim that its prod-
New Hundred Dollar Bill Release Date Delayed By Jennifer Crowe, Money & Investing Assistant Editor The Federal Reserve has been in the planning stages of a new design for the one hundred dollar bill that was set to be released on February 10, 2011. The government announced on Friday that the February release date has now been pushed back due to printing issues. The original one hundred dollar bill, which was first printed in 1862, had only a bald eagle on its left side. The design of the bill has seen gradual changes since it’s initial debut. The one hundred dollar bill is currently the largest denomination printed. T h e
Benjamin Franklin’s face will remain on the hundred dollar bill just as it has since it was originally printed in 1862.
new design will feature more color than any bill previously pritned. The bill will also
have hidden features that will help to decrease counterfeiting, such as a 3D security design on the back. Treasury Secretary Timothy Geithner stated, “Like the previous redesign of U.S. currency, this bill incorporates the best technology to ensure that we stay ahead of counterfeiters.” The Federal Reserve released plans for the new bill last April. Aiming for the February release date, they ran into issues regarding the printing process of the bill. The Fed stated that they ran into “sporadic creasing” when the bill ran through the printer. Due to this technological problem, there will not be enough bills ready for a February 2011 release. The current dollar bills will remain in circulation even after the release of the modern and newly designed bills are issued to the public. Just as the current style of the bill has Benjamin Franklin printed as the central feature, the new bill will keep Franklin as the centerpiece. A new date to issue the new bills has not yet been determined.
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Too Big to Fail Continued from page 1.... Some advocates argue that good can be found in failures; the fact is that the industry is beginning to clean up its act after assets more than doubled to $13.8 trillion in the decade ending in 2008. Let’s not be mistaken, bank failures cause more harm than good. They threaten capital, lending, and a global economy which has struggled to maintain its consistency over the past three years. Even large banks such as Countrywide Financial Corporation and Wachovia Corporation were acquired to avert failure. Bank closures alone have been responsible for 11,210 lost jobs which accounts to 32 percent of employees at failed banks, according to FIG Partners, an Atlanta investment firm. The most common cause among all banks that have closed is real estate. A daunting 94 percent of banks that have failed since 2008 had a type of real estate-
based investment as their largest category of assets. More importantly, the riskier loans consisted of 23 percent of failed banks’ total portfolios, compared to an industry average of only 7.2 percent. With small and mid-sized banks failing across the country, the largest banks are only getting bigger. Bank of America, J.P. Morgan Chase & Co., and Wells Fargo & Co. hold 33 percent of all U.S. deposits, an increase from 21 percent in 2006, according to SNL Financial. President Obama’s financial overhaul is aimed at decentralizing power from these big banks, but the statistics show that they are only getting stronger, and obtaining a bigger market share to squeeze out smaller competitors. It seems the phrase “too big to fail” is still true. As long as smaller banks are closing, the phrase will remain. Contact Stefano at email@example.com
uct is effective in treating a disease unless those proven claims have been reviewed and approved by the FDA, a federal law states. The agency has said that they have never reviewed or approved the leading brand names products, therefore making them false statements. In order for the companies to sustain themselves, the FDA has given all three companies fifteen days to change their labels and advertisements in order to correct the violations. If they fail to do so, other penalties and possible criminal charges will surface. Spokesman of CVS, Mike DeAngelis, has stated that the company is reviewing the FDA’s letter and will respond and try their best to meet their requirements within the fifteen days. “Our policy is to fully comply with all FDA labeling requirements,” said DeAngelis. The Johnson & Johnson Company has said its Johnson & Johnson Healthcare Products Division of McNeil PPC, “is in
receipt of the letter from the U.S. Food and Drug Administration.” The company will plans to respond to the FDA’s request appropriately and in a timely manner. However to make matters even worse, Johnson and Johnson has faced other federal charges. Johnson & Johnson, headquartered in New Brunswick, N.J., has experienced a string of regulatory problems over the last year. This includes recalls of hip implants and contact lenses. There was also a substantial recall of Children's Tylenol and other over-the-counter medications that are the subject of congressional and grand jury investigations. This new FDA warning does not bode well for a firm that prides itself on its code of ethics.
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TUESDAY, OCTOBER 5, 2010
THE STILLMAN EXCHANGE
Students Make Careers in Business a Success By Ryan Garrity, Stillman News Editor One of the most important events of the fall semester took place last week, and it was an experience that many students will use to springboard their careers into the working world. Sponsored by The Career Center and co-sponsored by The Stillman Exchange, The Finance Club and Alpha Kappa Psi, Careers in Business 2010 took place on a rainy September afternoon. The rain did not dampen employers however. Over fifty companies came to search for their next interns or future employees. The Richie Regan Field House was packed to the brim with employees handing out materials and doing their best to sell their organizations as the best place to launch your career. The students also came out in full force, ready to show the employers why they should be the next student that will be
Entrepreneurs on the Rise in Stillman Continued from page 1... Inside the Seton Hall community, the program has already held highly successful lecture events, including this past Spring’s China’s Entrepreneurship Revolution, which centered around the entrepreneurial opportunities within that rapid-growth economy. Fast-forward to September 22, the Jubilee Hall fourth floor atrium, where the atrium is packed with entrepreneurs and rising businesspeople. On this night, George Ring and Salvatore Cocco Jr. are being inducted into the Entrepreneur Hall of Fame, and the event has a waiting list including students, alumni and faculty. After cocktails and speeches from some of the most influential entrepreneurs in Seton Hall’s history, awards are given to the inductees and special recognition candidates. The awards come in the form of glass stars, and reasonably so, as the sky is the limit for the Center and the students who find themselves capturing the entrepreneurial spirit. Contact Ian at email@example.com
selected for a prestigious internship or employment opportunity. Upon registration, students were greeted by volunteers, and given the program directory for the day. Not only did this program list each company in attendance, along with a description and what opportunities were available, it also provided a helpful map. As a result, students could easily find where each employer was located. Employers ran the gamut across the entire alphabet, from Automatic Data Processing, Inc. to WithumSmith + Brown. If someone was looking for an opportunity in the business world, they were able to find it at Careers in Business. Employers from multiple industries attended, which catered to every major. Sports management majors could meet with teams like the New York Red Bulls or the New Jersey Nets, and Finance majors could learn about opportunities available at Prudential and many other prominent financial services firms.
However, Careers in Business is not just an event for the big companies. It truly gives the smaller organizations a chance to shine and promote their name. One of the best examples of these smaller companies was Forever Collectibles/Team Beans, LLC. At this table, students were able to speak with Dominick Abramo, a Seton Hall graduate who has been working as a sales assistant at this small, fairly new company. Many students would never ordinary be given the chance to speak with small boutique firms, but the fact that Careers in Business makes that possible is what makes this event all the more special. Students also know exactly how important attending an event like this is. Senior Caitlin Jannucci, an account major feels this is the perfect starting place for her life after college. “Careers in Business is one of the best events of the semester” stated Jannucci. “First, it allows me to get my name to these companies and leave a lasting impres-
sion by making sure they get my resume. It also gives me a chance to practice my interview skills. Many of these companies provided an impromptu interview, and these are sure to help me when the time comes for a larger one.” As the saying goes, “You only get to make a first impression once”, and for many students, Careers in Business is the perfect forum to make that impression. It allows companies to promote themselves to prospective employees, but it also provides the students an opportunity to find out more about the companies they are interested in. Careers in Business has helped to launch the careers of many Seton Hall students, and it will certainly launch many more to come.
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Meet the Firms: Developing Skills that Last a Lifetime By Rory Manning, Stillman News Writer With the end of each Careers in Business comes the event known as Meet the Firms. Meet the Firms is a more informal way to approach recruiters and to lean about a company. With this more informal setting also comes more pressure. Students could be heard talking about how it was harder to approach the recruiters now because the safety barrier of the table from Careers in Business was gone. Companies such as Deloitte,PricewaterhouseCoopers, Prudential, and ADP were all present. When students and recruiters alike were asked why events such as this were important, they all agreed that it helps students to build their confidence and communication skills when speaking to professionals. Nick Fania, a senior management major said “it is important to put yourself out there whenever possible, you never know who you are going to meet.” Bob Fodera, alumni of the class of 1981 and partner at ParenteBeard LLC said that events like Meet the Firms “gives confidence to the students that attend. They
come here to build their communication skills. Being able to communicate effectively in any setting is important, especially in business.” When asked why they came to the career fair, Nick Fania responded that “it’s
Photo courtesy of Mike Reuter Students gain valuable skills speaking to business professionals in an informal setting
another chance to put myself out there,” while, Marissa D’Agati responded “I am looking for a job, and I am interested in the firms that attended.” There were also firms like Roger CPA
in attendance. Although they did not have any employment opportunities available for students, they wanted to spread the word about the services they offered. Roger CPA was looking to fill the position of student representative. As the student representative, one would speak in upper level accounting classes about the review course offered by the company. Along with a stipend, the student would receive a free review course. The exam review company would also pay the fees associated with taking the CPA exam as well. Meet the Firms is an annual tradition at the Stillman School of Business, and it is a very valuable event for many students. The event provides the opportunity to approach industry professionals and just have a simple conversation with them. Students gain confidence that will help them throughout their time at Seton Hall as well as in their business careers. The event provides many different benefits, and students are given the opportunity to develop important professional skills. Contact Roryat email@example.com
Educating Seton Hall’s Next Prestigious Scholars By Beverly Makarios Stillman News Assistant Editor Becoming a prestigious scholar is one of the greatest honors that a student can receive. On Wednesday, September 29, several leadership students gathered at the theater-on-the-round to learn about opportunities to become a recipient of a national scholarship award. The event was a major initiative that taught students how to prepare themselves before applying for these prizes. The event was hosted by Professor James Kimble Ph.D., the University Fellowship Advisor, and Mike Reuter, Director of the Center for Leadership Development. As the fellowship advisor, Kimble guides Rhodes, Marshall, Truman, Goldwater, and Fulbright candidates through the competitive application process. According to Dr. Kimble, there has been less interest in prestigious scholar involvement in the past couple of years
from business students. “The overall trend shows business students are not competing,” said Kimble. The prestigious scholarships encourage students to change the world in positive ways. Many of the past candidates in the different scholar programs have been students in the fields of science or history, but only a few are business students. Reuter welcomed those in attendance with a motivating opening speech encouraging students to “see beyond the mountain and be a good leader.” Kimble then presented information on the four major awards open to business students: the Rhodes, Marshall, Truman and Fulbright scholarships. The Rhodes Scholarship is an internationally prestigious competition that provides students from across the globe the opportunity to compete graduate coursework at Oxford University. Only 32 students are chosen each year for the Rhodes Scholarship but it is open to any major. “There is no reason that we [the
Stillman School] cannot produce students like these,” said Kimble. Seton Hall’s first Rhodes Scholar, Annick Routhier-Labadie, received the award in 2007. The Marshall Scholarship, like the Rhodes, is open to students of all majors and is also highly competitive. This scholarship is given to 40 students and allows students to attend any U.K. university to complete their graduate coursework. The Truman Scholarship seeks student who intend to enter a career in public service. Students are encouraged to apply mid-junior year for this scholarship. Lastly, the Fulbright Scholarship is an international program open to graduate students only. This program provides 1,000 awards and allows students to travel abroad for 10 months to a year in order to participate in research work or to teach English. In order for students to prepare themselves for this prestigious scholarship, Kimble presented a few steps. First, student’s must “groom themselves.” Students should start making plans now and
researching the biographies of previous winners. Writing your own biography will also help envision yourself as a potential candidate. Second, students should get some coaching. “This will help build your credentials,” said Kimble. Coaching in writing is also highly encouraged. The application process involves a few interview questions and one or two essays, depending on the specific scholarship program. Building credentials, however, is more important than the application process. In closing, Reuter encouraged students that they are not alone in the process. He said, “Jump over your fences and go for it!” For more information on how to apply for these scholarships, contact the Academic Resource Center or contact Mike Reuter and James Kimble. Contact Beverly at firstname.lastname@example.org
THE STILLMAN EXCHANGE
TUESDAY, OCTOBER 5, 2010
Standout Senior Rosario Displays Unmatched Leadership Skills By Beverky Makarios, Stillman News Assistant Editor
real estate come about and what do you enjoy most about it?
Ricardo Rosario has made great strides during his undergraduate career at Seton Hall as a Marketing and Finance Major. Currently, he is President of Alpha Kappa Psi, as well as Vice-President of Seton Hall’s chapter of ALPFA, the Association of Latino Professionals in Finance and Accounting. During his four years at Seton Hall, Ricky has already completed an internship program with NBC Universal as an Affiliate & Mobile Distribution Research Intern. Apart from his academics, Ricky is a certified real estate salesman. He recently visited Dublin, Ireland as part of the Stillman School’s study abroad program. In the following interview, the Stillman Exchange talks to Ricky about his internship experience and his advice for business students seeking roles in leadership and study abroad opportunities.
RR: I actually have always had an extreme love for real estate and I needed a way to get into the business, so that’s when I decided to attain my license. You only need to be 18 years old to get the license and I got mine at 19. The one thing I truly enjoy about Real Estate is that every property is different in its own way. It is interesting for me to see dif-
Working in research allowed me to meet other employees in the Sales and Advertising departments, because the research department is the “brain” and the source of information for these departments. My manager allowed me to meet the President of the entire Market Research Department, the Senior Vice President of Digital Products & Services, the Senior Vice President of NBC News Advertising, a Research Editor from Advertising Standards, and a Manager from Sales Planning & Strategy. She also gave me tours of all the historic and interesting television studios at NBC Universal. I got to see the SNL studio, the Jimmy Fallon studio, the NBC News studio, and many others. It was just amazing to be in that type of atmosphere and call it “work”. BM: At a relatively young age, you’ve already attained a license as a real estate salesman. How did your interest in
RR: Alpha Kappa Psi is an organization that is great for any student that has a deep passion for business and professionalism. We aren’t only geared towards business students; we want students that want to grow professionally and that want to contribute to everything else that goes on within our organization. This includes important activities such as fundraising and community service. We look for students who are motivated to push themselves to excel while in college and beyond. BM: What kind of experience did you have while participating in the study abroad experience in Dublin, Ireland?
Ricky Rosario sets a high standard for all Stillman students.
ferent types of homes and analyze them and point out the positive or negative aspects that they might have. Real estate is also a great investment if done the right way, which is why I also have a great love for it. It is something that even if I am working in Corporate America, I would still want to be heavily involved in. BM: You have gained exceptional leadership experience as a member of Alpha Kappa Psi. How has being president of this organization enriched your academic and personal life? What does your position entail? RR: Being the president of Alpha Kappa Psi has really made my college career come full circle. Becoming a Brother of the organization as a freshman really allowed me to grow and emulate those before me. It has helped me engage more aspects of my academic life because becoming a Brother was a huge accomplishment for me and I wanted to put that same effort and hard work into my aca-
Students Come Together to Give the Gift of Life By Katherine Funk, Stillman News Writer If there was ever a time that the Seton Hall community needed to come together, this week is was it. The New Jersey Blood Services, a division of the greater New York Blood Center, came to campus in search of students eager to support an important cause. Last Thursday, Students and faculty pulled up their sleeves in order to donate blood to those who cannot survive without it. The blood drive was held in the Main Lounge from 10 am to 6 pm to allow as many people as possible to donate throughout the day. The main focus of the blood drive was originally to donate more blood than Rutgers. However in light of the recent events surrounding campus, the main focus shifted. Instead, the drive, which was sponsored by the Sports Management Student Association (SMSA) and Phi Beta Sigma Fraternity, Inc., shifted its focus to show support for all those who were affected by last weekend’s off campus incident. Those injured were taken to University Hospital in Newark, where a majority of the donated blood will go. With this knowledge in students’ hands, the
As the president of Alpha Kappa Psi I have to make sure we are doing everything we believe in and what is asked of us as an organization. It is somewhat like running a corporation, which is an experience I will definitely treasure for the rest of my life. My main goal as president is to keep our organization running strongly even when our seniors graduate. I want to make sure that I leave behind something great for the young Brothers now and for all future Brothers to come. BM: Would you recommend students to join Alpha Kappa Psi? Why?
Beverly Makarios: What specific experiences did you gain from your internship with NBC Universal? How were you able to attain this internship position? Ricardo Rosario: My internship at NBC Universal was one of the best experiences I’ve had in the workplace. The internship posting was on Navigator and that’s where I applied for it. I was working with the Cable Affiliate & Mobile Research Team, which basically did research on the certain NBC networks and shows that were being viewed on cell phones and on cable as well. It was amazing to see all the information that is available to these corporations and how the information is effectively used. As an intern I was responsible for putting together the statistics and data that was needed for the Sales department. I was also coordinating certain PowerPoint presentations or reports that were needed.
demics. It has been a great way for me to learn how busy and productive the real world can be once I graduate.
turnout for the event was much higher than originally anticipated. When asked about donating blood, student Zack Valdez said, “I try to give blood as much as possible when I’m back home, and the fact that I don’t even have to leave campus in order to save lives means a lot to me.” After the participants finished giving blood, they received free Rita’s Italian Ice and snacks in order to bring their blood sugar back up. In addition to the food, the first 40 students were given a free pair of SHU basketball tickets as part of an advertising campaign. This provided many students with an extra incentive, especially since the start of basketball season is just around the corner. Seton Hall is planning to host many more blood drives in the future. The first blood drive of the year was a great success, and it showed just how strong a bond exits between the Seton Hall community and those in need. The university hopes that the turnout for future blood drives will be just as high.
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RR: First off, I just want to say that every student should study abroad for some period of time. It was one of my best decisions in college. The experience was not like any other because it can never be duplicated. It was great to be in another country, and learn the culture, history, and everything else about the country. Some people think that all you do is learn in a classroom but you don’t. My study abroad trip consisted of visits to the Dublin Google office, the Citibank office, the Dell office, the Guinness factory, and many other places. The purpose of the trip is to learn about the country and its economy, and the learning comes from experiencing the country firsthand. The experience was also great because we had an amazing group of students who all knew each other from prior business classes, which made it more worthwhile and enjoyable. The trip will be an experience that only those of us that went together can really have; it will be something we remember for the rest of our lives. I will always cherish the great experiences that come from living and learning in Ireland.
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NFL “Rulemaker” Speaks to Students By Andrew Weinstein, Stillman News Writer Before a packed Theatre in the Round, Alan Schwarz, an award winning reporter from the New York Times, came to Seton Hall to discuss his work. Schwarz spoke about how he used investigative reporting, mathematical analysis, and knowledge of the sports business to uncover what many describe as the “epidemic of concussions” in football and other sports. In the beginning of his career, Schwarz was a baseball fanatic. He has published several books about statistics in baseball and why people are so fascinated by the numbers behind the sport. As Schwarz describes it, he himself “is a numbers guy.” It was not until the suicide of former Eagles defensive back Andre Waters that Schwarz became interested in investigating concussions. He had learned that Waters had a rare brain injury called Chronic Traumatic Encephalopathy, or CTE. CTE is caused by repetitive trauma to the brain and has symptoms similar to Alzheimer’s disease. It can lead to depression, memory loss, and even dementia. After learning that Waters and other retired NFL players had sustained
brain damage, the NFL set out to create what is now known as the 88 Plan. Under this plan, the league provides financial assistance to retired players who may have incurred brain damage. Yet, the NFL had previously showed doubts about the extent that brain damage was caused by playing football. Former NFL commissioner Gene Upshaw once said that these cases of dementia in the players were not necessarily caused by their careers because cases of dementia are prevalent in everyday society. To test this idea, Schwarz helped to organize research on the brains of four different retired players. An examination of the four players showed that all four had signs of CTE. As a result, Schwarz concluded that the NFL was “focusing on healthy players and ignoring those who have problems.” Due to Schwarz’s investigation, the NFL now uses refined concussion rules to protect its players. Students in attendance received a speech like no other; they saw and met the driving force behind some of the NFL’s most important rules.
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TUESDAY, OCTOBER 5, 2010
THE STILLMAN EXCHANGE
Should the Death Penalty be applied in a gruesome triple murder homicide? On July 23, 2007, two parolees invaded the home of William A. Petit Jr. They beat him with a baseball bat and tied him up in the basement. Later, he finally escaped but his wife was left raped and burned to death inside the home along with his two young daughters Michaela, 11, and Hayley, 17, tied to their beds in a house that was set ablaze with gasoline. By Enrique Patino-Daly, Junior, Political Science Major
More Death Doesn’t Heal It is an understatement to say that human life is precious; thus, the loss of human life is inherently devastating. This being said, what should the punishment be for someone who takes the life of another? Some would argue that the only way to avenge the taking of one life is by the death of the one who took it. While revenge may ease the pain of grieving family and friends, can any good really ever come from more death? Increasingly more and more sophisticated governments are taking active stances against the death penalty and are fazing them out in their jurisdictions. Also, considering the court system is fallible a wrongfully accused prisoner could later be proved innocent of their alleged crime, freed and possibly even compensated. The death penalty eliminates the possibility of absolution. Thus, it leaves the chance of innocent people being wrongfully killed. Since the death penalty was re-instated in America in 1976, over 80 inmates have had their cases re-opened and been freed from Death Row. All of these cases would have resulted in the taking of lives by this backwards form of punishment. In addiBy Joan Orejuela, Junior, Political Science Major
Time for Justice The heinous triple murder of Jennifer Hawke-Petit, 48, and her two daughters, Hayley, 17, and Michaela, 11, on July 23rd, 2007 shook the small Connecticut town of Cheshire. The sole survivor of the assault, Dr. William A. Petit, Jr., now begins the ordeal of witnessing the trial of Steven J. Hayes, one of the two lifelong criminals responsiPhoto courtesy of librarygrape.com
ble for the deaths of Petit’s wife and young daughters. At the conclusion of this trial, when the jury confirms the guilty verdict and offers justice to Petit after waiting three long years, a new tribulation begins. This time, the decision will be whether or not capital punishment should be the fate of Hayes. In Connecticut’s State Superior Court
tion, many inmates on Death Row were represented by court appointed legal counsel. Historically, these courts appointed defense attorneys are the worst paid and least experienced lawyers. A hot shot lawyer hired by a wealthy family would easily litigate circles around a young, unskilled court appointed attorney representing an innocent person. This inequity would make it unlikely that the defendant will prove that he or she was set up or was just in the wrong place at the wrong time. One would assume that the killing of an alleged criminal would be a cost effective way of dealing with the issue of guilt. However, this is not necessarily the case. After adding up the costs for numerous (sometimes annual) appeals, court mandated defense council and maximum security measures provided killing an inmate may actually cost up to 2 million dollars. This is roughly four times the $500,000 average cost of imprisoning a criminal for life. Ultimately, murder is wrong, and due to the nature of the subject the circumstances will never justify the action.
Photo courtesy of ctpost.com
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the sentencing will be viewed as all other sentences are, with precision, with facts, and based entirely on the evidence gathered throughout the trial. But in instances like these, should such an extreme degree of loss not account for more? On the Tuesday morning when his house was set on fire, with his wife and daughters still inside, Petit lost everything. His wife and daughters lost their lives, his eldest Hayley lost her mother and future, and perhaps most tragically, his youngest Michaela lost her childhood. Yet, even when the Petit family lost so much, Hayes lost nothing. For a man who for much of his life has been in and out of America’s prison system, this crime, one of countless others that he has committed, was routine except for the fact that things, as he describes it, “got out of control”. Connecticut has recognized him as a repeat offender and one that cannot be reformed, not through parole, halfway houses, or rehabilitation. Why then should this man live and be given the opportunity to destroy another family? The time for compassion has long passed. Now is the time for justice. If the punishment fits the crime, let a court’s decision to sentence Mr. Hayes to the death penalty stand. Certainly, no life is worth more than another. However, when an individual becomes so disconnected from one’s conscience, he becomes a threat to those who have learned to sympathize and care. It is then that we must decide as a whole whether to let one person jeopardize our lives. We must be strong enough to realize that questionable decisions are necessary for the sake of goodness.
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Dr. William A. Petit Jr., right, leaving court in New Haven with his father and his mother-in-law, Marybelle Hawke By Gabriella Petrillo, Junior, History Major
No Equal Punishment Imagine you are in your house. Strangers breaks in and demand that you to give them $15,000. Then, they sexually assault your family. They burn down your house while you are still inside.
“ I am a firm believer that there is no deterrence or retribution that can justify the crime that the assailants have committed, other than the extreme, irrevocable punishment, which is the death penalty.” This is a very disturbing scenario. Yet, it can happen to any of us. It happened to three innocent victims in a small town in Connecticut: a mother, and her two teenage daughters. Their father is still alive, having to live with the unbearable pain that his whole family was brutally beaten, raped, and burned to death. Do you think these three innocent women deserved to die in this barbaric manner? Even more importantly, do you think the two people who committed these
immoral crimes care? The truth is that many assailants put on death row do not even care about their own life. It is not fair that they take the lives of others, especially innocent girls. Nothing we can do can change their morals or their mind. They should live if they cannot appreciate humanity. Their defense attorney argues that the two criminals did not intentionally try to harm the victims. Whether or not those were their intentions, the end result is the same. It was not just robbery. It was not just arson. It was not just rape. They took the lives of three innocent women, a crime which is irreversible. According to the defendants, their primary intentions were to steal money. Upon seeing the three women, it did not seem to cross their minds that it is wrong to rape and kill. The fact that they did not have those intentions may even be more frightening. How evil must one be to perform those acts without such intentions? While capital punishment may be a controversial topic, this is a case where very little can be argued against capital punishment. In this situation, the death penalty should absolutely be applied. I am a firm believer that there is no deterrence or retribution that can justify the crime that the assailants have committed, other than the extreme, irrevocable punishment, which is the death penalty. In my opinion, not even the death penalty is as uncivilized as the actions that these men have performed.
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The Stillman Exchange proudly offers students, faculty, and administration the opportunity to write about their views on controversial topics. These opinions are to be read as the opinions of individuals and not the views of the newspaper as a whole.
THE STILLMAN EXCHANGE
TUESDAY, OCTOBER 5, 2010
Editorials Contrary to media reports, the sky is not falling By Ian Mehok, Managing Editor Jon Stewart and Stephen Colbert recently released news of two competing rallies they will hold at the end of this month. At a point where it seems like the entire planet is having a collective nervous breakdown, these rallies couldn’t have come at a better time. For anyone who has missed the news for the last few years, things have not exactly been filled with rainbows and happy days. Everywhere you look, countries are at war, people are losing jobs and companies are claiming blissful ignorance to defend their actions. Although it sounds terrible to say, these same events have been going on since the dawn of time. Now though, with the presence of media that can put global news into our fingertips within seconds, people are outraged. Sometimes it seems like we are living in a super-hero movie, complete with utter chaos and no one thinking rationally except one or two caped crusaders. The situation begs me to ask, why so serious everybody? Stephen Colbert appeared in front of Congress in character, and the House Representatives actually grew angry at the charade. They invited a comedian to speak, and were upset over the comedy that ensued. All the while, not one of them stopped to realize that everything he was talking about was just making fun of the fact that they were so concerned over such small things. He poked fun at dozens of completely irrelevant issues, things that Congress has spent more time on than poverty, hunger or disease. This is exactly what the world is missing these days;
Congress and parts of the American public were outraged when Stephen Colbert recently appeared in front of a House subcommittee in character.
things aren’t any worse than they were a thousand years ago, yet people are reacting as if the sky is falling. Our news comes to us from a thousand different channels every day, through something as simple as word-ofmouth to new social trends like Twitter and Facebook. Notice that all three of those sources are reliant on people who usually aren’t qualified to be capturing news stories, and then you catch on to the underlying problem. The media isn’t made up by a stable voice anymore; it is fragmented by the opinionated voices of millions. When
The Stillman Exchange The Official Business Publication of Seton Hall University
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About The Stillman Exchange is the first undergraduate published business newspaper in the United States. The Stillman Exchange is published on a bi-weekly basis from the Center for Securities Trading and Analysis in the W. Paul Stillman School of Business at Seton Hall University.
one of those voices panics, they all do. In the Netherlands during 1637, people paid over ten times the annual income of a skilled craftsman’s wage for a single tulip bulb. In 1920’s Germany, some people resorted to burning money instead of using the money to buy wood, because the currency had been devalued beyond reasonable estimates. It seems the world still has tulips, Germany and wood-burning stoves, despite the mania during those times. So how do we solve this problem of over-maniacal behavior? Watch the news for once and don’t take every bit of it seriously. Start with the Colbert Report or the Daily Show with Jon Stewart, and laugh about the events going on in the world. No matter what happens on Earth short of nuclear war, things will keep moving forward. Another great way to start is by attending the Rally to Restore Sanity or the March to Keep Fear Alive on October 30. These events have been created as an avenue to look at all of the news we’ve been thrown objectively. This gives everyone an opportunity to get together for a cause, not for a political motive, and calm down after years of hysteria. Outrage over crooked executives and controversial building construction will only make for more such scandals. In fact, just elevating them to the level of true problems will just blow them out of proportion. First you begin to make a big deal out of steroids in a game, or migrant workers on farming fields, and the next thing you know, none of us will get the joke when a comedian waves it right in front of our faces. Contact Ian at firstname.lastname@example.org
Still Fist Pumpin’ Away By Anthony Crisci, Editorials Editor
National Italian American Foundation, called Jersey Shore a “disgrace,” and the behavior of its gel-haired cast members as “outrageous” and “laden with promiscuity, debauchery and violence.” Unfortunately, many believe that the guidos from Jersey Shore are representing Italian Americans as a whole. Yet, the problem is not the cast; the problem is the
You either love it or you hate it, but most people in America cannot honestly say that they have never sat down and watched a piece of an episode. No matter what your opinion on the show, Jersey Shore has worked its way up to one of the most followed and popular reality TV shows in the last couple of Photo Courtesy of MTV.com years. Jersey Shore came to us at the beginning of this year and disturbed many Italian American households all over America. The main problem was that the slang word ‘guido’ was perceived as a derogatory word towards all Italian Americans and became very stereotypical. If MTV expected praises from the Italian American community, it was deeply mistaken. Three The cast of Jersey Shore has caused heated Italian-American groups cried tension in Italian American society. foul, including Unico National, the largest Italian community organization people who stereotype based on the cast. in New Jersey. The Situation and company have repeatedPresident Andrew Dimino had very ly announced that they are not representing little to say about the despicable show: anyone but themselves; not anyone else, “It's a term used to insult us, implying we not Jersey, not New York, and they just are all uneducated people without social happen to be Italian while they do it. graces.” As a group, Italian Americans have Dimino was completely right with his been stereotyped the most among statement and what MTV did was a ridicu- American sub-cultures. These different lous disgrace to the community. At the media outlets show the lives of a certain same time the show is one of the most fol- collection of the group, and the world perlowed shows on television, and being an ceives them all in the same. The Sopranos Italian American, I can’t stop watching it. fumed the same fire on its release, and As much as the show degrades what I tagged all Italian Americans as murdering believe in, it’s a matter of good television. Mafia men. Granted these two shows are Not only did the cast of the Jersey of completely different statutes (Sopranos Shore grace us with their presence at received 21 Emmys and five Golden Seaside Heights, their show did so well Globes), but the stereotypical fever eruptthat MTV brought them to Miami for a ed from both shows. second season. Naturally this irked more Italian American groups more than anyContact Anthony at thing, as they thought it was a one season email@example.com deal. Joseph Del Raso, president of the
TUESDAY, OCTOBER 5, 2010
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Rays take risk with free ticket giveaway By Peter Brett Sports Business Writer In an effort to attract fans, the Tampa Bay Rays gave away 20,000 free tickets to their game on September 29 against the Baltimore Orioles at Tropicana Field. Despite being one of the best teams in baseball, the Rays constantly struggle to put the fans in the stands. The Rays have already clinched a playoff spot and are in contention to capture first place in their division over the New York Yankees. For such a strong team, the Rays still have a hard time attracting fans to the ballpark. On September 27, the night the Rays had the opportunity to clinch a playoff berth, the team had only 12,466 fans in the stadium, an extremely low number for a stadium that seats 40,473. Giving away free tickets seems like a logical way to
spark excitement in the area, hoping fans will return for more games in the future after having such a great time at their “free trial”. With the Rays already set to participate in the 2010 MLB postseason, the free ticket giveaway right before the playoffs is a last-ditch effort to generate interest. With this giveaway, the question of fairness comes to the forefront. Is this fair to people who have always been loyal to the team, purchased season tickets, or had already bought tickets for the Wednesday night game? Regular attendees cannot be happy that they paid at least $42 for a seat while 20,000 simply showed up to the park and walked in free of charge. A large contributor to the free tickets was the Tampa Rays players themselves. The attendance for the Rays game Monday night against the Orioles was less than half the average home attendance the team had all year. The poor attendance spurred some players to criticize the fan base.
Star player Evan Longoria took offense and complained to reporters. “We've been playing great baseball all year,” said Longoria. “Since I've been here in , the fans have wanted a good baseball team. They've wanted to watch a contender. And for us to play good baseball for three years now, and for us to be in a spot to clinch again and go to the playoffs, we're all confused as to why it's only 15,000 to 20,000 in the building. I'm not trying to take a low blow at the fans. I'm actually trying to rally the troops and get more people in here.” While it is nice to see the Rays organization trying to raise enthusiasm in the team, however, there are many other ways to do it instead of giving away free tickets and sacrificing revenue in the tough economic times. Contact Peter at firstname.lastname@example.org
Bauer Hockey adds Toews to list of star endorsers By Travis Tosoni Assistant Sports Editor Jonathan Toews has officially signed on to an endorsement deal with Bauer Hockey. The Chicago Blackhawks star center struck a five-year contract with Bauer on September 22. As part of the deal, Toews will wear only Bauer equipment for the entire 2010-2011 season. Toews is just the latest superstar to endorse the Bauer brand, following players such as Patrick Kane, Steven Stamkos and Eric Staal. Being the industry’s leading designer and manufacturer, Bauer Hockey has become synonymous with winning, making Toews the perfect poster child for its brand. In the past season alone, the 22 year-old Blackhawks captain won the Stanley Cup, the Conn Smythe Trophy as playoff MVP and a gold medal with Team Canada at the Vancouver Games. In addition to product testing and development, Toews will be an important part of Bauer’s global marketing efforts, as well as ad campaigns in North America. Toews has quickly become one of hockey’s most recognizable and popular players; proof of this being Toews’ recent selection to be on the cover of EA Sports’ “NHL 11” video game. Bauer hopes to use both Toews and current Blackhawks teammate and Bauer sponsor Patrick Kane together in upcoming marketing adventures in 2010-2011. With their new line of equipment set to launch in October, the company expects Toews to play a major role in the release. The addition of Toews to the Bauer family will certainly help the company compete with other leaders in hockey manufacturing. Reebok Hockey boasts such superstars as Sidney Crosby and Pavel Datsyuk as part of their marketing contingent, while CCM Hockey’s main endorser is the NHL’s most recognizable player, Alexander Ovechkin of the Washington Capitals.
Photo courtesy of AP
By Kayla Mjaatvedt Assistant Sports Editor
Next, the commercial shows the team lined up for a defensive play during their game. Their opponent snaps the ball and hands it off to the running back. A defensive player reads the running back and tackles him at full force, resulting in the ball carrier doing a flip. Then, the commercial shows people reacting to the play with exclamations of “Boom!” These people include Nick Saban, Ndamukong Suh, Tim Tebow, and a television analyst. The last five seconds of the commercial is a video montage of “boom” plays in baseball, volleyball and soccer. It ends with a man who appears to be the assistant coach of the aforementioned high school football team yelling “Boom!” Aside from these intense, high-activity commercials, Nike has taken the “Boom” campaign one step further by creating a “Boom” iPhone application. This app allows users to pick the sport they are training for and then gives them motivational messages from members of their selected sport. Then the app makes playlists from the user’s music library. Only time will tell if Nike’s “Boom” campaign is a good move. However, Nike has a rich history of successful ad campaigns, leading one to expect nothing less than a great hit.
Many creative new marketing campaigns have been emerging lately in Philadelphia’s sports industry. These new campaigns are evident in their hockey and basketball teams. The Philadelphia Flyers have put together a special package for their hockey fans. As most Flyers fans know, the team’s old venue, the Wachovia Spectrum, officially closed on October 31, 2009 to make way for a hotel in the PhillyLive! complex. The new package offers two lower level tickets in the new arena as well as two actual seats from the Spectrum and costs a total of two hundred dollars. The team realized this new package would positively impact their revenue stream because of the uniqueness and sentimental value it offers. For any long-time Flyers fan, this type of package presents quite some value. The Philadelphia 76ers have also created a special package for their fans. Those who purchase a ten game package for this upcoming season receive the opportunity to have their name on the Sixers’ LED billboards. Although this does not provide much of a purchasing incentive, the “cool” factor will most likely help to push a prospective buyer towards purchasing the package. Not only do the buyers’ names appear on these billboards, but they will also be given a picture of their billboard through the Sixers’ Facebook page. This makes the photos easy to share, so more fans are aware of and can take part in the opportunity. After fans drive past the billboards and see others taking part in the package, they are more inclined to participate themselves, making the billboards more effective. While these new campaigns are certainly unique and creative, the question of whether they will be successful still remains. Because the campaigns are so fancentered, it is only likely that Philadelphia’s fan base will become much stronger than what it already is. A larger fan base provides an increase in revenue stream, making each team much more successful than they formerly were. All in all, it seems that we can expect Philadelphia’s new campaigns to be very effective.
Contact Anthony at Anthony.email@example.com
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Toews, a proven winner, is exactly what Bauer looks for in a sponsor.
In an industry where endorsements are the key to marketing and sales, the addition of Toews to its team will certainly keep Bauer on top of the market, while Reebok, CCM and others will need to play catch-up. Contact Travis at email@example.com
Nike set to launch “Boom-ing” ad campaign By Anthony Holesworth Sports Business Writer Nike has created a new advertising campaign called the “Boom” campaign. This campaign, which emphasizes major moments and big hits in sporting events, is likely to be successful not just because of Nike’s major brand popularity, but also because it focuses on getting viewers and customers “pumped up” and excited. The term “boom” refers to plays and moments in sports that are of game-changing or awe-inspiring nature. This involves all sorts of plays including big hits in football games, plays at home plate in baseball, high-flying slam dunks in basketball and major blows in boxing. Nike’s new commercial campaign is a series of fifteen second spots. The commercials include basketball player Lebron James, baseball player Robinson Cano, boxer Manny Pacquiao, football coach Nick Saban, football players Tim Tebow and Ndamukong Suh, along with many others. Each commercial has its own unique series of athletic events and “boom” moments that occur. One commercial opens up with a high school football team in their locker room during what appears to be halftime. Their coach is designing a play on the dry erase board and passionately explaining the play to his team. He ends this talk by yelling “Boom!” and writing it on the board in big blue letters.
New ad campaigns in Philadelphia are keeping fans in mind
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NFL making marketing push for female fans By Scott Kim, Sports Business Writer Football has always been mostly dominated by male fans but over the past decade the NFL has been trying to change this
Photo courtesy of NFL
TUESDAY, OCTOBER 5, 2010 11
Seahawks’ stat tie-in giveaways make impact By Nick Costa, Sports Business Writer When you enter a stadium it’s impossible to miss the hundreds of advertisements you see just from walking to your seat alone. Today, you would be hard pressed to find a ball park that isn’t named after some major company. However, what businesses are now trying to do is get in touch with fans on a whole new level by pushing the limits of advertising. In 2008, Taco Bell promised a free taco to everyone in America if there was a stolen base during the World Series. In 2009, the NFL passed a rule allowing advertisement patches on practice jerseys, giving these companies a unique way to gain exposure for their brand. This past Sunday, the business of advertising was taken to its latest stage when several different companies had giveaways based on the performance of the Seattle Seahawks during last week’s game against the San Diego Chargers. Since the team scored a touchdown in the red zone, game day tickets could be turned in to 7-Eleven for a free small Slurpee. During the game, Seattle scored three touchdowns and won the game. This earned fans six free toppings on a large pizza at Papa John’s. Among other giveaways, fans earned a free small stack of buttermilk pancakes at IHOP because Seattle scored over
21 points and a free Jumbo Jack burger from Jack in the Box because the team had more than three sacks. Attaching stats to giveaways brings a whole new experience to fans. It is an excellent marketing scheme that is able to bring in those who may not have interest in sports at all. Now, sports teams can appeal to these people by offering them free rewards based on the actions of players on the field. Even though a person may not have a rooting interest for a particular team or player, or just the sport in general, now they can attend a game hoping a player reaches a milestone that will win them prizes for free. For fans that do care about whether their team wins or loses, now that big win for their team can mean that much more when they earn a free lunch or they can be cheered up with a free haircut even though their team lost a tough one. Though giving away prizes to fans based on stats is a good marketing plan, part of what sports really means is lost. No longer are fans rooting for whether their team wins or loses. Instead, they are cheering for individual statistics and achievements and this seems artificial. However, sports are a business and money makes a business run. If giveaways are what is going to fill the ball park, then it must be done to make sure fans are in the seats. Contact Nick at Nicholas.firstname.lastname@example.org
Women’s NFL apparel is no longer only pink.
notion. This year the NFL is again trying to market to female fans by advertizing jeans with logos on the back pockets, flipflops, and yoga mats. In the past the marketing scheme has mostly been taking NFL apparel and making the colors pink to try and make women buy it but they have realized that this hasn’t been working. This is why they are trying a new marketing campaign this year that is more centralized around the team’s colors and logos rather than just trying to sell to women by making the apparel pink. There is a new fad that has been growing called foiling, which is a process that creates a shiny design on the clothing, which they are now including as well. In addition to this they are also expanding their apparel to include spa gift bags that with natural brown sugar scrub, Mediterranean sea salts, and goat's milk and honey lotion with team logos. These bags come with team associated nail polish as well, for example yellow and black for the Pittsburgh Steelers. One more thing that is new for women’s apparel is customizable jeans where the customer can choose where she wants her team’s logos to be. All of these new products will be available in all sizes as well as maternity sizes. This new campaign is a $10 million dollar effort that is strictly driven towards women. The market for women has doubled since 2004, according to vice president of apparel Tracy Bleczinski, but at the same time it is still only one fourth the size of what the market for men is. The market for men in NFL apparel may always be bigger than the market for women but with this new campaign the NFL is at the very least trying to bridge the gap between the two sides. Contact Scott at email@example.com
Pepsi Max makes big splash in sports marketing scene Photo courtesy of magxone.com
Former girlfriend of NFL superstars Reggie Bush and Miles Austin, Kim Kardashian, is also in the mix for marketing Pepsi Max to the sports fan crowd.
By Ian Baker, Sports Business Writer Sports fans should prepare to be Maxed out by Pepsi. Pepsi Co. is beginning to attack the sports industry from all angles. The company is advertising Pepsi Max, the competitor to Coke Zero. Lately, Coke Zero has been outselling Pepsi Max by about four times. In light of this, Pepsi is stepping up advertising in all aspects of sports. Fans entering New Meadowlands Stadium enter through a Pepsi-branded gate and once inside, Max will be front and center. Pepsi Max is also the new face of Pepsi’s NFL sponsorship. According to Yahoo! Sports, Pepsi Max plans to air three ads during Super Bowl XLV, after not running any commercials in Super Bowl XLIV. Last year, Pepsi opted not to run any commercials for the first time since 1987,
instead putting funds towards the Pepsi Refresh project. Pepsi Max is also the lead sponsor of the October 31 game at Wembley Stadium in London featuring the Denver Broncos and the San Francisco 49ers. Adding to the NFL advertising frenzy, Pepsi Max also plans to release its first NFL-themed television ad of the year. Additionally, Pepsi Max plans to advertise in NASCAR, Major League Soccer, Major League Baseball and the National Hockey League. Pepsi has changed the name of one of the races it sponsors from the Pepsi 400 to the Pepsi Max 400. In addition to that, longtime Pepsi sponsor and NASCAR driver Jeff Gordon will also switch to promoting Pepsi Max. Pepsi will likely use its ties to the NHL and MLS to promote Max. Pepsi plans to wrap up its Refresh Project through the end
of the MLB postseason. Assuming that its rights are renewed, Pepsi will make Max the focus of the 2011 MLB season. Pepsi will slowly transform their signage for Pepsi to Pepsi Max. However, Pepsi Max signage is already present at large venues in and around New York City. The ads for Super Bowl XLV will be submitted to Pepsi by fans and winners will be chosen by Pepsi and aired in one of the three time slots purchased. Vice president of sports marketing, Jeff Dubiel, assures that “brand Pepsi isn’t going away.” He also says “there’s a significant opportunity for Max.” Pepsi is using all outlets possible to advertise Max. Hopefully for Pepsi, all of its efforts do not go to wast, and customers begin to see the maximum potential in the Coke Zero counterpart. Contact Ian at firstname.lastname@example.org
Wizards’ owner Leonsis advocates for hard cap in NBA; gets fined By Mark Parisi, Sports Business Writer Wizards’ owner Ted Leonsis was recently fined for making unauthorized comments about the NBA’s collective bargaining agreement. Leonsis was fined $100,000 because he told business leaders on Wednesday that he expects the NBA to adopt a hard cap, similar to that of the NHL. A hard cap is used to prevent high-market teams, such as teams located in New York, from being able to sign all the top players during free
agency. For a team like Washington who hasn’t really been in contention for a championship in a while, it’s obvious to see why their owner Ted Leonsis could want a hard cap salary. Although the hard cap may seem like a good idea for TV ratings because it could possibly make the league more competitive, the change could possibly cause a lockout just like the NHL. The NBA will be making some changes after this year due to it being the last year for its CBA and there has been a lot of talk about lowering the amount of
money each team will be able to spend. Right now each team is limited to $58 million dollars a year, and the problem with lowering the salary cap or making a hard cap could come from the reaction of the players. If the salary cap is lowered, the players won’t be able to make as much money, which hopefully won’t cause the same reaction as the NHL. Players like LeBron James, who is making nearly $20 million dollars a year, who is already taking up one third of the money for his team, don’t leave much room for other players in a hard-capped league.
If the NBA follows through and uses a hard cap salary, these high paid players won’t end up making such big figures which could easily cause problems from the Players’ Union. After having a free agency summer like 2010, where three superstars ended up on the same team making a dream team, it will be interesting to see what approach the NBA will make when they renew their collective bargaining agreement. Contact Mark at email@example.com
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UC Berkeley announces the removal of five athletic teams By Robert Szeluga, Sports Writer The University of California, Berkeley, announced last Tuesday that five athletic teams will be cut from its intercollegiate sports program following this academic year; a move following heavy criticism of university spending by faculty and alumni. The five sports that will be cut are the men’s and women’s gymnastics teams, women’s lacrosse, baseball and rugby. The criticisms of UC Berkeley’s spending methods became public once it was known that the university was making severe cuts to its academic programs, while subsidizing the athletic program at the same time. The university had previously injected anywhere from $7 million
to $14 million each year into its athletic programs. This move by the university is estimated to save $4 million a year. Earlier this year, it was also reported that only 14 out of 120 universities in the Football Bowl Subdivision made money off of athletics. California was not one of these programs. The program cuts will affect an estimated 163 student-athletes and 13 full-time coaches. Athletes affected will still be able to keep their scholarships if they choose to stay at UC Berkeley. If not, the university has stated that it will help athletes transfer. As a result of the five-program cut, UC Berkeley will decrease the number of athletic programs to 24, a number that is still very high compared to other colleges. Administrators explained that these five programs were
chosen to be cut based on the factors of cost, student diversity, impact on donations, and compliance with Title IX, which requires an equal amount of sport opportunities for each gender. One surprising cut by UC Berkeley was the removal of the rugby team, a program that has won 25 national championships in the past 30 years. The team will now play on a club-level in order to keep spending down. Obviously the reaction on campus is not a pleasant one. Any time an athletic program is cut, there is going to be somewhat of an uproar. It will be very interesting to see throughout the next year which athletes remain at UC Berkeley and which athletes decide to transfer. Contact Robert at firstname.lastname@example.org.
MLB attempts to expand overseas to Europe Stillman Sports By Anthony Crisci Editorials Editor When Europe and sports are used in the same sentence, many automatically think of soccer and the glorified World Cup. However, Major League Baseball is now beginning to expand overseas in hope of creating possible European stars. In a small beach town of Italy, many coaches have recently been hired by the MLB to coach and help bring a new talent to the majors. As of right now there is a very minimal number of Europeans playing the game of baseball professionally, as most of the MLB is made up of Americans and Hispanics. With only two European players in the MLB, the need for European players is now more than ever. European baseball is played by semi-professionals in miniscule leagues and even smaller clubs, with fielding conditions nowhere near the pristine fields of the MLB. The countries of Italy, Netherlands, and Germany cover over half of the baseball population. With that being
said, it is difficult to find a large sporting event in any of these countries. In Italy, baseball draws a smaller crowd than volleyball, which has a roaring 1,000 fans for a big event. MLB has tried expanding an outlet to Europe before, but on a smaller level. In 1995 they introduced a merchandising opening in London that drew in over $3 billion of merchandise, some coming from European countries. The following year MLB tried to introduce the game to the youth of the European countries, but the attempt didn’t last longer than an introduction to the sport. “The academy in Pisa, Italy is our primary development structure,” said Clive Russell, the director of MLB in Europe. The academy was opened in 2005, and has been considered by all as one of the most paramount structures for sport training aspects. Even French Open champion, Francesca Schiavone, trains at the facility. Along with this main MLB facility, other countries even have academies for their players. Every year coaches and partners of the Italian facility take 50 prospects
to report to the main academy for training. This past year only two players signed professional contracts. At the end of the day the key attribute for these players to obtain is commitment. European players are having a rough time coping with the time consuming road to the majors that the MLB introduces. As many know, once a minor league contract is signed there is a long process to achieving major league status, and some Europeans don’t make it past the beginning levels. With the 10,000 European players under some sort of contract, only ten percent at most will make it to the majors. The other 9,000 prospects will continue to travel to games in nothing better than high school baseball transportation and receive salaries that range from $850 to $10,000 a month. After all these factors were added into the equation, more players chose to quit the process than continue with the league. Contact Anthony at email@example.com
Is there a future in 3-D sports down the road? By Matt Bartel Stillman Sports This December 11th, new ground will be broken in the world of sports broadcasting, as the CBC announced it will air that evening’s “Hockey Night in Canada” game between the Toronto Maple Leafs and the Montreal Canadiens in 3-D for the first time ever. The milestone broadcasting event will be attempted again a few months later as well when the CBC airs the annual Heritage Classic live from Calgary’s McMahon Stadium on February 20th, 2011. Though this is a breakthrough event in Canada, 3-D sports in the United States has already hit the ground running. American sports broadcasting juggernaut ESPN unveiled their latest branch this past June, aptly titled ESPN 3-D. The station aired its first 3-D broadcast in June; they chose the opening match of the 2010 World Cup in South Africa to be the first event. ESPN has also announced several other events that will be shown in 3-D, most notably the 2011 BCS National Championship Game. Despite the excitement of a new ESPN station, and buzz surrounding the upcoming CBC broadcasts, many are still very wary to join the 3-D revolution. With the benefits of viewing television in a third dimension comes a high cost. High end 3-D television sets range from
$2,100 to over $3,000 and have very high maintenance and repair costs as well. They also require the wearing of 3-D glasses, and most sets only come with two making it even more expensive for families. Not to mention the hassle of wearing glasses that need to be charged before viewing a show in one’s own home. Another factor that comes into play is that many who are
supposed to be in the market for 3-D television have already invested in their High Definition Television, a technology they are not yet ready to accept as obsolete. In spite of these costs, CBC, ESPN and countless others have lunged into the 3-D revolution, as well as television manufacturers who are clearly showing faith in the future of this new product in North America.
Super Seven 7. Dallas Cowboys rookie receiver Dez Bryant solidified his loyalty to the team by buying his teammates dinner. The tab of his meal amounted to $54,896. 6. Alberto Contador blames tainted meat as the reason why he tested positive for the banned substance clenbuterol in this year’s Tour de France. Contador is the reigning champion of this event. 5. Lebron James stated that race was a major factor in how the media covered his special, “The Decision,” a televised event where he stated his intents to play for the Miami Heat. 4. Chad Ochocinco’s cereal boxes are getting recalled because of a misprint on the box. Instead of taking callers to the Feed the Children charity, they are taken to a sex hot line. 3. Shooting Guard Austin Rivers, the No. 1ranked high school basketball player in 2011, committed to Duke University. 2. Donovan McNabb returns to Philadelphia for the first time on Sunday since his controversial trade to the Washington Redskins, a bitter rival of the Eagles in the NFC East. 1. Carmelo Anthony stated in a press conference that he would be happy to play for the Denver Nuggets this season. This comes amidst many different trade rumors involving the Small Forward. In 2009, the James Cameron film Avatar became the highest grossing film of all time, propelled to this success with it’s never before seen use of a third dimension. In the wake of Avatar, many saw consumer faith and excitement in 3-D, making it a viable option for the future. Less than a calendar year later we have a full fledged ESPN 3-D, and now our neighbors to the north look to delve into the 3-D sports world. The years to come will show whether or not 3-D is here to stay, but in the here and now it seems like an all or nothing approach that will determine the future or failure of 3-D sports.
Photo courtesy of AP In a few months, hockey fans in Canada will be able to experience the Montreal Canadiens in 3-D.
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TUESDAY, OCTOBER 5, 2010 13
Study: On Average, Female Managers Are Still Paid Less Than Male Managers By Danielle Califano Domestic News Writer It may be hard to believe, but according to a report from the U.S. Government Accountability Office, women managers in the U.S. are still paid less than their male counterparts. The analysis, called “Women in Management: Analysis of Female Managers’ Representation, Characteristics, and Pay” was released on Tuesday, Sept. 28. It compared U.S. Census Bureau’s American Community Survey data from 2000 and 2007. The reason these specific dates were chosen was to exclude the role of the U.S. recession. The study looked at 13 broad industry sectors, and the average results for all industry sectors together showed that female managers with or without children earned 81 cents for every dollar earned by male managers with or without children in 2007. This was a marginal increase from 79 cents in 2000. In 2007, women comprised an estimated 40 percent of managers and 49 percent of nonmanagers in the industry sectors analyzed. Not much has changed when comparing the statistics from 2000, which reported women made up 39 percent of managers and 49 percent of nonmanagers. However, not all industry sectors showed such a disproportionate range. Women were more than proportionately represented in management positions in construction, public administration, and the transportation
and utilities sector. “What is most startling to me is how little progress we’ve made even though there’s a bright spot in that more women are gaining education, we’re closing the educa-
earned $52,000 and males earned $75,000. Even though the study adjusted for certain factors that were available and commonly used, such as age, hours worked beyond full time, and education, the difference in pay
Photo courtesy of Top News.com A study based on data from the U.S. Census Bureau’s American Community Survey found that on average, female managers are still making less than their male counterparts.
tion gap but we’re not closing the pay gap,” Rep. Carolyn Maloney, a New York Democrat, said. In 2000, an average salary for full-time female managers was $48,000 while males earned $70,000. The pay gap did not increase much in 2007, in which females
News Briefs U.S. Apologizes for Deliberate Infections in Guatemala The United States government has apologized to the Guatemalan President Alvaro Colom for what Colom calls “crimes against humanity.” As part of medical tests over 60 years ago, the U.S. government intentionally infected mentally ill patients and prisoners with gonorrhea and syphilis. None of the subjects consented to the tests. According to Professor Susan Reverby, who uncovered evidence of the program, the Guatemalan government had given permission for the tests. An offer of compensation has not yet been made, but an investigation into the tests will be launched. Arrests Made in International Cyber-Theft More than 60 citizens of the United States, United Kingdom, and Ukraine have been arrested in connection with a multi-million dollar cyber-theft ring. Five of the people detained in Ukraine were the directors of the operation, according to FBI Assistant Director Gordon Snow. Thirty-nine U.S. citizens and 20 U.K. citizens were arrested for helping to carry out the theft operation, which targeted small and medium businesses. The cyber-theft ring had attempted to steal $220 million, and had successfully stolen $70 million already. New Planet May Support Life Though it may only be able to sustain lichen or pond scum, scientists who found water on a distant planet believe it may be able to be a home to plant or animal life. The planet, Gliese 581g, is located 20 light-years away, in the constellation Libra. If findings are confirmed by other astronomers, Gliese 581g would be the first planet considered potentially inhabitable. The planet circles a star called Gliese 581, in an area called the “Goldilocks zone”, where heat given off by the star is neither too hot nor too cold to prevent liquid water to exist on the planet’s surface. The National Academy of Science has called finding planets like Gliese 581g one of its top goals for this decade.
between female managers working full time and male managers working full time narrowed slightly between 2000 and 2007. The study also found that having children aged 18 and under heavily influenced the gender pay differences: “On average for the thirteen industry sectors, an estimated
14 percent of female managers in 2007 were mothers, compared to 17 percent of female nonmanagers.” When the study broke up the average of all workers into two categories, female managers with children and those without, it showed that female managers with children earned 79 cents for every man's dollar in 2007. Female managers without children earned 83 cents for every male manager's dollar. Results were similar in 2000. Maloney also blamed some of the persistent wage gap on discrimination and on gender stereotypes. However, the report claimed to have an unexplainable reason for this discrimination. It stated “researchers have not agreed on reasons for the gap and said some differences could be explained by factors that are difficult to measure such as levels of responsibility, years of experience or discriminatory practices.” Gender pay discrimination has not been completely ignored. A bill has been made to address the gender pay gap, but it has been stalled in the Senate. The Paycheck Fairness Act, however, was passed by the House in July 2008 and then passed again in January 2009. The act would make it easier for women who allege discrimination to file class actions against their employers. It would also remove caps on punitive damages in suits dealing with pay-discrimination. Contact Danielle at email@example.com
Number of Holiday Temps Hired Expected to Rise By Amanda Genabith Domestic News Writer On Main St., USA, Americans cannot understand why experts say the recession ended last June when they are still feeling the effects even today. But companies may have a solution for the 15 million people who remain unemployed. Although the holiday season is still two months away, many companies have begun planning for their busiest time of the year. They plan to hire temporary workers in the next couple of months before the holiday season. Toys R Us, Target, Wal-Mart, FedEx, UPS, and Macy’s are among the many companies who have announced that they plan to hire temporary holiday workers this year. These companies are planning to exceed their previous temporary holiday levels. For example, nationally, Toys R Us is going to hire about 45,000 workers. Macy’s plans on filling 65,000 positions with temporary holiday workers and UPS expects to need 50,000 people for their stores. The demand for temporary workers during the holiday season is not unusual. Last year, 501,400 workers were employed during the months of October, November, and December, a 30 percent increase from 2008. John A. Challenger, CEO of the outplacement firm Challenger, Gray
& Christmas, Inc., said that there is definitely a growth this year in retail, but not an explosive one. He is cautiously optimistic about the increase demand in seasonal workers. Many businesses, especially smaller businesses, are still hesitant about the future. To avoid taking a huge risk, they are most likely going to hold off for as long as possible
“Even if retailers are not ready to make hiring decisions until November, they may begin screening candidates much earlier.” John A. Challenger before they hire anyone--late November to early December. “Retailers do not want to be caught with too many workers at a time when many of the fundamentals needed for strong consumer spending remain a little shaky. This does not bode well for heavy holiday spending,” Challenger said. But the unemployed should not
despair. According to Challenger, “even if retailers are not ready to make hiring decisions until November, they may begin screening candidates much earlier.” If management likes a worker’s performance, as Challenger points out, as a temporary worker, they may consider making the employee full time after the holiday season. In a survey that was conducted, 61 percent of businesses say they plan to hire as many temporary workers as they did last year, which was up 30 percent from 2008. Twenty-two percent of businesses say they will most likely hire more than the number they hired last year. In addition to hiring temporary workers, companies are also planning to open temporary store fronts until January, calling them “pop-up” stores. Toys R Us intends to put their 600 stores, staffed by 10,000 employees in places such as shopping malls and centers. The only concern is that these “pop-up” stores may drive out small businesses in the process. According to a Challenger analysis of Bureau of Labor Statistics data, job cut announcements by retailers have fallen 65 percent from a year ago, from more than 89,000 in 2009 to 30,805 in 2010.
Contact Amanda at firstname.lastname@example.org
TUESDAY, OCTOBER 5, 2010
Times Square Plotter Admits He Was Planning A Second Attack By Candice Woods and Peter Brett, Domestic News Writers
attempt. Shahzad pled guilty to all ten counts of terrorism with which he was charged, including attempt to use a weapon of mass destruction on June 21, 2010. Based on that charge alone, Shahzad
Prosecutors say that while pleading guilty for his actions, Shahzad even took pride in his attempted bombings. Faisal Shahzad was living the Among the material submitted to the American dream. After emigrating from sentencing judge in the U.S. District Court Pakistan on a student visa, he graduated in Manhattan was a 40 minute video which from the University contained footage of Shahzad of Bridgeport in firing a machine gun in what 2002 with a bachemay be mountains is Pakistan. lor’s degree in comThe video also depicts puter science and Shahzad sitting and quoting the engineering and Quran. According to prosecutors, later went on to Shahzad says in the video, “I receive a M.B.A. in have been trying to join my 2005. He married, brothers in jihad ever since 9/11 had two children, happened. I am planning to wage rented an apartment an attack inside America.” in Bridgeport, Shahzad told the judge that Connecticut, and he spent 40 days training with worked as a finanthe Taliban in Waziristan. This cial analyst for sevtraining included five days of eral companies. bomb training. He also said he However, while would plead guilty 100 times to it appeared that his actions. Shahzad was living Preet Bharara, the U.S. the American dream, Photo Courtesy of Reuters attorney in Manhattan said that he was plotting to the goal of Shahzad’s attack was attack his new Faisal Shahzad announced that he was planning another car bombing that was to to “maximize the deadly effect of take place two weeks after his failed bombing attempt in May. homeland. his bomb.” On May 1, 2010, Shahzad attempted can receive life in prison as a conviction A video of a controlled detonation of to bomb Times Square in New York City when he is sentenced October 5. a bomb identical to that that Shahzad conwith a car bomb hidden in a Nissan Though the bomb did not detonate, structed was also included in the material Pathfinder. Shahzad left the Pathfinder in prosecutors have asked Judge Miriam sent to the sentencing judge. The video Times Square with the intent of killing at Cedarbaum to impose a life sentence, say- demonstrated the devastating effects the least 40 people, after monitoring his target ing, “The premeditated attempt to kill and car bomb would have had on the surroundfor three months through live video feeds maim scores of unsuspecting innocent ing area. on the Internet. men, women, and children with a homeShahzad’s attempted car bombing was made bomb can only be described as utterContact Candice at funded in part by the Pakistan Taliban. ly reprehensible.” email@example.com During his trial, Shahzad boasted that According to the government, he planned to detonate a second bomb Shahzad showed no remorse when conContact Peter at only two weeks after his May 1 bombing fessing his crime to investigators in June. firstname.lastname@example.org
House of Representatives Passes James Zadroga 9/11 Health Compensation Act By Padmavathy Sonti, Domestic News Writer
thirds majority, the bill was initially defeated in the House. For months, many New York politicians and Democrats ral-
cost of the proposition, further suggesting that it will increase the role of big government. On Sept. 29, 2010, the House Rep. Joe Barton (R-TX) believes of Representatives passed the James that the measure is a “new entitlement Zadroga 9/11 Health Compensation program that we simply cannot Act to provide free medical treatafford.” Only 17 Republicans voted in ment to 9/11 responders and surfavor of the bill. vivors, who were exposed to harmIn addition, questions remain as to ful debris and fumes. whether there is a connection between In a 268-160 vote, the measure the debris and medical illnesses of the was approved. “To the living vicresponders and survivors. The bill is tims of 9/11, we have good news: named after a New York City detective Help is on the way,” Rep. Carolyn and responder, who died in 2006 of a Maloney (D-NY), an advocate of respiratory illness. While some believe the bill, said. that he contracted the disease from the In addition to allocating fundGround Zero dust, other reports attribing for the research and coordinaute his death to prescription drug tion of medical services, the bill abuse. will also reopen the September 11th Meanwhile, in the Senate, Photo Courtesy of Bloomberg News Victim Compensation Fund. Democrats are trying to push for a vote “It is a critical step for those The House has passed a bill providing free medical immediately. who continue to bear the physical “We have an undeniable, moral scars of those attacks,” President Obama lied in its favor. obligation to pass this legislation and prosaid. “I applaud the House for its support “[The] vote acknowledges that the vide care to the thousands of heroes and of this bill and for standing up on behalf of September 11, 2001 terrorist attacks were survivors who are suffering, dying, and these heroes, who served our country in its an attack on America, and addressing its waiting for us to deliver the care they time of greatest need. I look forward to health impacts is a national duty,” New need,” Senator Kirsten Gillibrand (D-NY) Congress completing consideration of this York City Mayor Michael Bloomberg said. “It’s time to seize every opportunity, legislation so I can sign it into law.” said. “This bill recognizes that the country pass this legislation, and keep our promise According to the Congressional should be there for the tens of thousands of to the heroes of this country who came to Budget Office, over the next ten years, the responders who were there for us on 9/11.” our rescue on 9/11.” bill will cost approximately $7.4 billion. “Members of the House put aside polWith the upcoming midterm elecWhile New York City is expected to pay itics and made history by voting in favor tions, the fate of the bill remains uncertain. ten percent of the total, the majority of the of justice and care for the first responders funding will come from the income taxes and survivors of 9/11,” Rep. Jerrold levied on multinational companies operat- Nadler (D-NY) said. Contact Padma at ing in the U.S. However, many Republicans have email@example.com In July 2010, due to the lack of a two- expressed their concerns regarding the
THE STILLMAN EXCHANGE
Gulf of Mexico Research Hotbed By Malissa Abrams, Domestic News Writer Although the BP Gulf of Mexico oil spill occurred in April of this year, urgency for researchers has risen again recently. Oceanographers are using this environmental mishap as a research opportunity. A large sum of money given by BP for research purposes—a sum of $500 million— and the possibility of media attention have scientists rushing to the Gulf of Mexico. A myriad of research vessels and scientists have been spotted on the Gulf, analyzing the remnants of the massive spill that occurred several months ago. At least 165 studies have been registered with the federal government. This amount of scientific traffic is new to the Gulf. “We’ve never had this many research vessels concentrated in the Gulf at any one time — never,” said Larry McKinney, director of Gulf of Mexico studies at Texas A&M University in Corpus Christi. “It’s been a flatout crazy time.” To try to restore order to the research extravaganza, the White House science office requested that a number of international scientists gather in Florida to discuss coordination efforts. Additionally, states situated along the Gulf of Mexico are expected to devise a plan to determine how the $500 million from BP will be utilized for research over the next ten years. Prior research conducted in the Gulf of Mexico has received very little federal funding. Before the spill, research in the Gulf received $85 million, a much smaller amount than similar projects conducted in other places around the same time. Fifty scientists were chosen by BP to conduct research to help defend the company from legal action. The federal government and attorneys suing BP are also doing their own research with their own experts. BP’s donation will support the federal government’s natural resource damage assessment, or NRDA. BP hopes to determine the current location of the dispersed oil and its affect on the public’s health and the ecosystem. The findings are to be made available to the public. Forty million dollars of BP’s reimbursement has already been given to major academic organizations around the country. The Gulf of Mexico Alliance is formulating a process by which the remaining $460 million will be distributed. Some believe $500 million will not be sufficient to study the breadth of the spill. “I don't think $50 million a year is enough to study the problem as we know the scope of it,” Steve Murawski, chief fisheries scientist for NOAA said. Nor is everyone convinced that the threat of the oil is past. Arizona Congressman Democrat Raul Grijalva says he wants to push for a congressional investigation of the spill. “I don’t want to let BP off the hook,” he said, “and my suspicion is that the numbers may be wrong, and that the oil is still a danger.” Scientists in the Gulf area disapprove of researchers foreign to the Gulf region getting a large proportion of the money. They believe that they should receive better funding because they are familiar with the area and had been shortchanged in the past. Some research is already yielding results. Although the oil is getting harder to find, its impact is not. According to Oregon State University researchers, levels of chemicals in the water off of Louisiana have spiked sharply. Some of these chemicals are carcinogenic.
Contact Malissa at firstname.lastname@example.org
THE STILLMAN EXCHANGE
TUESDAY, OCTOBER 5, 2010
Palestine Halts U.S. House of Representatives Approves Sanctions on Chinese Currency Peace Talks Because ...continued from page 1 New York Democratic Senator Charles Schumer has said he will attempt to push a similar bill through the Senate following the November elections. In a statement he said, “The Chinese ought to be aware that Congress is serious about confronting their currency manipulation.” Rep. Jeb Hensarling (R-Texas) and others who voted against the bill said the bill would cause prices to rise on consumer goods from clothing to toys to school supplies. “The available evidence is that the price of many of these Chinese goods will go up 10 percent,” he said. Ways and Means Committee Chairman Sander Levin (DMichigan) said, “Without a job, you can’t buy goods at any price. This bill is about jobs.” U.S. Treasury Secretary Timothy Geithner told a business conference, “We’re not going to have a trade war.” Referencing the steep rise in the value of the yuan between 2005 and 2008, Geithner said, “If you look at the pace it’s moved since September 2, it’s moving on a path pretty similar to the steep path it was in that period of time. If that continues, that would make a really material difference on their economics and on our economics in ways that we think are important.” Geithner had said earlier in September that the Obama administration is ready to find a more effective method of pressuring China on the currency issue, as well as widespread piracy in China and various barriers to U.S. goods. The Treasury Department said in a statement on Wednesday September 29, “Today’s vote clearly shows lawmakers have serious concerns about this issue…[the President and Secretary Geithner] have said repeatedly that China needs to allow a significant, sustained appreciation over time.” China, under pressure from the U.S., had de-pegged its currency from the dollar this June, but in the last four months, the value of the yuan has only risen two percent - mainly since the beginning of September. U.S. negotiators have expressed frustration over the slow
rise, while Chinese premier Wen Jiabao claimed a quicker rise would lead to economic disaster in his country. “We cannot imagine how many Chinese factories will go bankrupt, how many Chinese workers will lose their jobs,” he said. Although, the White House did not officially support the measure, it did advise lawmakers to avoid allowing the law to conflict with WTO regulations. Chinese Commerce Ministry spokesman Yao Jian told the Xinhua news agency that the law as it stands is unscientific and discriminatory, as well as a violation of WTO regulations. Foreign Ministry spokeswoman Jiang Yu told reporters Thursday September 30, “Using the yuan exchange rate issue as an excuse to engage in trade protectionism against China can only harm China-U.S. trade and economic relations, and will have a negative effect on both economies and the world economy…We firmly oppose the U.S. Congress approving such bills, and urge the Congressmen to be clearly aware of the importance of China-U.S. trade and economic relations, resist protectionism so as to refrain from an y damage to the interests of both peoples and people around the world.” Currency issues have come to the fore in other countries as well, of late. In September, Japan intervened in the currency market for the first time since 2004, holding down the yen over fears for its weak economy. Taiwan and South Korea have also intervened in the valuation of their currencies, while Brazil’s finance minister Guido Mantegna criticized the manipulation of currencies by governments. “We’re in the midst of an international currency war, a general weakening of currency. This threatens us because it takes away our competitiveness.” President Obama had brought up the issue of currency undervaluation at a meeting with Chinese officials in New York, and is likely to do so again when the G20 meet in South Korea next month. Contact Raphael at Raphael.Baseman@student.shu.edu
Protests in Spain Part of Larger Riots in EU By Stephanie Duntham, International News Writer
to make their statement louder and more effective. Madrid did not shut down, but the majority of their transportation systems halted causing travel to and from other cities to be difficult. Proposals made in June by the EU intended to punish On September 29, protesters and strikes spread across EU member states, over the proposed sanctions and cuts in countries in the Eurozone that do not improve their debts and financial systems. Overall, the Brussels. It was the first such proposal cannot be enacted until strike Madrid has seen in over 2012, but until then it is expecteight years. Protesters were dised that countries will balance tressed by new spending cuts spending cuts and reviving their and labor laws that are an effort economies, along with avoiding to halt the spiraling debt crisis political and domestic counteracross Europe. attacks. The sanctions are proposed Many governments are cutto punish governments that fail ting wages, pensions, and on improving their financial employment in order to stop and debt states through new spiraling debts. France raised cuts on labor unions and budgthe retirement age in order to et deficits. The largest of the cut back on spending. Some protests took place in Spain. countries are cutting state Others also took place in spending and increasing taxes, Ireland, Latvia, Italy, and while attempting to revitalize Greece. Photo Courtesy of The Jakarta Post their economies. In macroscopFifty thousand people also A police car lit on fire in protests in Spain in late September. These ic measures, an increase in taxes gathered near the Schumann protests are one of a number in the European Union. and decrease in government area, a location in Brussels that houses many of the EU institutions. New government propos- spending will decrease economic growth, but countries need to als and control efforts are being made to avoid the same finan- try to motivate consumers to continue to spend in order to cial burdens that occurred in Greece, happening in any other improve their financial states. Citizens are upset as they feel they are receiving the punEU countries. Protesters marched through Spain’s capital with the goal ishment and burden that banks irresponsibly put upon the govof shutting it down. Most protests took place outside of mass ernment. Many feel as if the consequences should be taken on transportation systems and many entered shops and banks try- by unions, but it is harder to punish the banks and have them ing to force them to close. Few buses were running, high speed continue to lend to the people and companies, so businesses trains were cancelled, and a quarter of commuter trains were can continue to survive in this economy. Union workers would rather have the governments guarantee stables jobs, protection, left running after thousands of workers joined the strike. In Barcelona, there were smaller protests and strikes, and pensions rather than cutting their wages. however there were several clashes between individuals and Contact Stephanie at the police, and an entire police car was torched by protesters. Stephanie.Duntham@student.shu.edu The strike was to occur in June, but union members chose to wait until other commotion in Europe had calmed in order
of Israeli Building
By Kaitlin Tonti International News Editor After four week long peace talks with Israel, Palestinian leadership is debating suspension of talks until Israeli leadership concurs with their demands. Currently, the Israelis are in the process of constructing Jewish settlement housing on the very controversial area that is the West Bank. A settlement building freeze had previously been issued, but with the freeze recently lifted, Israel has continued construction. Thirty-five Palestinian organizations, including the Palestine Liberation Organization and the Fatah Movement, claim Israel is responsible for the discontinuation of talks, and must once again halt any type of building upon the often fought over territory before they can resume. President Obama’s administration sent George J. Mitchell, who will act as envoy to the region, in hopes of negotiating an agreement that will assist in beginning the flow of conversation between the two states. Although Mitchell met with the Prime Minister of Israel, Benjamin Netanyahu, he left on October 1 managing only to schedule a meeting with the Arab League for Friday. If a deal cannot resume conversations on Friday, they are most likely never to resume. Obama also offered Israel guaranteed security in exchange for a 60 day suspension of building, however, Netanyahu refused the American’s offer, claiming that he would rather keep his word than accept offerings of any sort. While Palestine blames Israel for enabling peace talks, Israel does not believe their settlement building should have any effect on the peace talks’ continuation. Netanyahu has agreed to limit the building, however he will not agree to a full suspension of the settlement construction. He recently said, “Everyone knows that restrained and moderate building in the coming years will not affect the peace map at all…therefore, the International community must call on the Palestinians to stay in the peace talks. It is in the interest of the Palestinians, just as it is in ours.” Though he refused the American offer, Netanyahu still urges Palestinians to remain in peace talks. He said on Saturday, October 2, “The way to achieve an historic peace agreement between our two nations is to sit around the negotiating table, seriously and continuously, and not to leave it, because that is the place where the divisions between us will be resolved.” Palestinian leadership has not responded to this specific comment, but maintains their position that talks cannot continue without cooperation from Israel. The United Nations has also offered their assistance in helping resume negotiations between the countries. Secretary-General Ban Ki-moon is meeting with Mitchell and other Arab leaders on Saturday, in the hopes of pursuing Israel to re-extend its freeze on the settlement building. A statement from the UN said, “He reiterated his belief that negotiations are the only way for Israel and the Palestinians to resolve all final status issues and realize their aspirations.” With assistance from the UN, the U.S., and other Arab nations, both Israel and Palestine will hopefully realize their aspirations for continuing peace talks, and find once again find a suitable medium in which an agreement can be reached concerning the West Bank territory. “The leadership confirms that the resumption of talks requires tangible steps, the first of them a freeze on settlements,” Yasser Abed Rabbo, a Palestine Liberation Official said.
Contact Kaitlin at Kaitlin.Tonti@student.shu.edu
TUESDAY, OCTOBER 5, 2010
THE STILLMAN EXCHANGE
Brazilian Oil Firm Plans Massive Offshore Operation By Nicole Blackford, International Business Writer
The Brazilian government will benefit as well, because in exchange for giving permission to Petrobras to drill, it will receive $43 billion in shares. The government already has a large stake in the company and its investments are only expected to increase. According to The Wall Street Journal, the recent trading of shares for Petrobras has also led to an increase in the Brazilian
Brazilian oil company Petrobras was able to raise 70 million in U.S. dollars to fund offshore drilling, which may lead to the biggest oil discovery in recent years. The $70 million that Petrobras, also known as Petroleo Brasiliero SA, was able to acquire was raised by selling stocks to both Brazilian and U.S. investors Photo courtesy of Paragon Decision Technology who have faith in the company’s plan to further develop its recent oil discoveries. Its five-year investment plan is expected to cost around $224 billion dollars and the drilling will take place in the Tupi Field, which is off the shores of the Santos Basin. The United States has also decided to lend money to Brazil in order to help Petrobras finance its excursion. As of now, $2 billion has been agreed upon, but there is the possibility for that amount to increase if the discovPetrobras hopes to bring its success from the eries seem to be heading in the right negotiating table to the shoreline direction.
stock market. Many investors are confident in this five-year plan. However, there are some who are still skeptical despite an optimistic future. Since final costs of the development plan have not been entirely finalized, it is hard for Petrobras to determine a fixed selling price for its stocks. It is expected that after a few years of drilling, the price may be adjusted based on the operating expenses as well as the oil industry’s economic situation. Oil is one of the leading industries in Brazil and accounts for 10 percent of the country’s total GDP. This five year investment plan is also expected to help Brazil to become one of the world’s top ten leading oil exporters. Brazil’s president, Luiz Inacio Lula da Silva, believes that this investment will play a key role in the nation’s future. Contact Nicole at email@example.com
Britain’s Unilever Purchases U.S. Company to Become a Leading Manufacturer of Grooming Products By Ben Canning, International Business Writer Unilever, an Anglo-Dutch company specializing in consumer goods, agreed on Monday September 27 that it will buy the skin and hair care company Alberto Culver for $3.7 billion. This move promises to make Unilever the world’s number one hair conditioning manufacturer, passing Proctor & Gamble (P&G), as well as the second-leading manufacturer of shampoo. Unilever makes a variety of products such as Dove, Sunsilk, Axe, and Vaseline, but is looking forward to the new additions to its product line from Alberto Culver. These brands include Nexxus, V05, TRESemme, and St. Ives. Paul Polman, Chief Executive of Unilever, spoke about Alberto Culver and the success they have had in creating a wide variety of products. He sees the deal as a good fit for Unilever. The personal care aspect that both Unilever and Alberto Culver share seems to be an equation for success by Polman’s standards. In a statement, Polman remarked that “Bolt-on acquisitions such as Alberto Culver supplement organic growth and add powerful new brands to our portfolio.” This deal, in addition to a previous one made with the body care division of Sara Lee for $1.3 billion, is
what will help Unilever make the gains it needs to surpass P&G. Analyst Graham Jones of Panmure Gordon & Co. took a look at the situation and saw the price as a little high but figures it will work in favor of Unilever’s intentions. According to Startribune, Graham says, “It further skews Unilever to high growth, high margin personal care categories, gives a more rounded category presence in hair care and makes it a global leader in hair conditioning, No. 2 in shampoo and No. 3 in styling.” Illinois based Alberto Culver has about 2700 employees, with six facilities for manufacturing while conducting operations in nine countries. It will receive $37.50 per share from Unilever. In its 12month period, which ended June 30, the firm’s operating earnings were upwards of $250 million and sales were at around $1.6 billion, according to Unilever. Proctor & Gamble, despite knowing it is about to take a runner up spot in the consumer products industry, does not plan to counterbid Unilever. On the other hand they have turned their attention to possibly making an acquisition with Beiersdorf AG, the personal care company based in Hamburg, Germany. Contact Ben at firstname.lastname@example.org
Wal-Mart Gambles on Africa by Purchasing South African Retail Juggernaut ...continued from page 1 This change, alongside becoming a part of Wal-Mart’s global supply chain, would likely increase competition among other South African food retailers and could result in a substantial price war. Union workers are particularly concerned with this proposed entry due to Wal-Mart’s anti-union history. The Western Cape branch of the Congress of South African Trade Unions expressed alarm and called for an investigation of Wal-Mart’s labor polices, claiming that “companies whose practice it is to abuse workers’ rights are not welcome in South Africa.” In response, Doug McMillon, president and chief executive of Wal-Mart International, reassured Massmart that it
Photo courtesy of Massmart union relationships” as well as comply
Massmart’s influence reaches well beyond its South African homeland would “respect and honor pre-existing
with South African labor laws. With the announcement of this bid, many analysts speculate that this deal will open the door for further foreign investment in South Africa. David Shapiro, who heads Sasfin Holdings’ securities unit, believes that “Wal-Mart's offer is going to spark other interest.” International companies including HSBC and NTT, a Japanese telecommunications group, have already begun serious investment talks within other South African industries. Many firms see expansion into South Africa as the first step in gaining access to the greater African marketplace. Contact Rachel at email@example.com
Indian Consumer Goods Giant Eyes Domestic Acquisitions By Rebecca Townsend, International Business Editor Godrej Consumer Products Ltd., a well-established personal care products maker based in India, is seeking to boost its growth through domestic acquisitions. Thanks to the fast-growing market in India, this may very well be a highly profitable move for the company if it can acquire the right firms for the right prices. According to Adi Godrej, the chair of the Godrej Consumer Products Ltd., “[the company’s] first priority will be acquisitions in India.” The company, valued at $2.9 billion, clearly has an excess of cash, and plans on investing that capital into lucrative acquisitions. While the company has been looking into opportunities in other parts of the world, including Rapidol and Kinky in South Africa, it is evident that its ultimate goal is to invest domestically, due to the predicted profitability of such a move. The company is zeroing in specifically on Paras Pharma, an unlisted personal care firm in India.
“While the company has been looking into other parts of the world, it is evident that its ultimate goal is to invest domestically.” Godrej has not yet been approached by Paras Pharma, and therefore cannot definitively determine how much the company will accept for an acquisition. However, the chair of Godrej explained to Reuters that “Typically, valuations tend to be much higher than what we are comfortable with. There is no problem with high valuation if on integration we get a lot more.” Essentially, the company has money to spend, and if it sees an opportunity to make a profit from Paras Pharma, it is willing to pay a higher price. The chances of Godrej making a substantial profit from a domestic acquisition, even at a higher valuation, are quite high considering that India is the second fastest growing economy in the world. With incomes across the country increasing alongside the economy, it is no wonder that the demand for personal care products has also risen, and more importantly, continues to rise. It is projected that newly acquired brands, such as Paras Pharma, will grow at a rate of 15-20 percent in the upcoming year. Godrej unmistakably realizes the opportunity available in acquisitions in India, and would be wise to take advantage of it. Contact Rebecca at firstname.lastname@example.org