Volume 7 Issue 8 - February 1, 2011

Stillman News

Ethics

Domestic News

Johnson & Johnson Case Competition set to kick off See p. 6 February 2.

Is the use of full body scanners in airports an invasion of privacy?

See p. 8

Obama’s State of the Union Address wins some public approval.

See p. 13

The Stillman Exchange

www.StillmanExchange.com

The Official Business Publication of Seton Hall University

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

TUESDAY, FEBRUARY 1, 2011 - VOL. 7 NO. 8

Egypt’s New Voice, What is it Saying?

By Meg Reilly, Managing Editor As youth and other good citizens across Egypt take the aftermath of last weekend’s protests into their hands, many are speculating what will become of the country.

The majority of the protestors have only known one Egyptian ruler, due to nearly three decades of rule under President Hosni Mubarak, but are still certain that their country deserves better. While age and experience may not have been on their side, Egyptian youth know how to harness the power of their resources and fellow disgruntled citizens.

Demonstrations in Egypt have been propelled by the use of social media, which are at the roots of the country-wide internet shutdown. Aside from organizing on Twitter and Facebook, protestors are expressing their discontent in a variety of ways.

After Omar Suleiman, Egypt’s intelligence chief, was appointed vice president on Saturday, someone edited his Wikipedia biography to read that Lieutenant General Omar Suleiman was born July 2, 1936 and died January 29, 2011. Although the page has been edited a plethora of times since the potential threat, it emphasizes the internal turmoil that exists in Egypt.

President Hosni Mubarak could have feared that the explosive power of social media will lead to his demise, much like the revolution in Tunisia, and thus ordered the

Since police have left the streets and the looters have taken over, groups of men are gathered to protect the citizens and their country. This particular volunteer neighborhood watch group sits in front of Arcadia shopping center to prevent it from further looting on Sunday, January 30.

internet shutdown. The success of Tunisia’s social collaboration has ignited similar movements across the Arab world, and President Mubarak could have been authorizing defense mechanisms to prevent the

Egyptians from following suit. As of Saturday afternoon, most cell phones were working but SMS was still blocked. Some internet access has been restored although it is only working for 8 percent of Egyptians.

Wael Abbas, a well-known Egyptian blogger and journalist, claims that Egyptian television and radio are exaggerating the reality of looting to convince protesters to go home. Nevertheless, in many areas, the looting and violence are very real.

Mona Safar, a Stillman sophomore of Egyptian descent, describes the brief accounts from her family in Alexandria despite the limited communication, “Looting is a bigger problem than it seems.

My family has stayed in their home since the violence started, and because Egyptians shop on a day-to-day basis, they are running out of food and supplies.”

Egyptians, which Mona describes as a “close-knit group”, have banded together in local groups to protect citizens from the unfortunate looting that does not represent the mission of the protests. Despite the internet shutdown, media bias, and fear-ridden areas, citizens are spreading the word through the use of social media sites.

Social media, however, is not a failsafe medium for social revolutions.

Although social technologies were claimed to be a major player in Iran’s Green Revolution, the ‘paper trail’ left by the public announcements gave police concrete information regarding demonstration times and locations that led to thousands of arrests.

Continued on page 15...

Marathon Sponsors See Miles of Benefits

By Rich Kimsey, Assistant Managing Editor With the upcoming marathon season, brands are presented a unique opportunity in sports sponsorship space. There are few events that attract as large and diverse a collection of participants and spectators as a marathon, but the real value in sponsoring a 26.2-mile race is that many of the athletes are also consumers that fit into an active lifestyle segment of the market.

Three of the top four sponsors of the Boston Marathon, Adidas, Gatorade, and Poland Spring, can target the marathon participants, who most likely have a need or interest in each company’s product.

Increasing brand equity at an event of this magnitude can be accomplished through activating advertising campaigns, special events, premier signage location, and onsite experiential marketing that leverages

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

the event’s large consumer population amongst the runners and fans.

Brands also have the opportunity to ambush official sponsors by signing a deal with a specific runner, such as what Nike did with last year’s Boston Marathon winner Robert Kiprono Cheriuiyot and with former New York Marathon winner Meb Keflezighi. ASICS holds the exclusive footwear and apparel category rights for the New York race. Nike’s lone official major U.S. marathon sponsorship is with the Chicago Marathon.

Financial companies may play the biggest role in marathon sponsorships as John Hancock presented the Boston Marathon, while ING and Bank of America hold the title-sponsorship for New York and Chicago. The high visibility of the marathons in major metropolitan areas makes it a valuable partnership for increasing and enhancing brand awareness.

Brands that sponsor marathons also receive the added benefit of associating with a specific community. Showing loyalty to an area, along with sponsoring an event that promotes good health, can leave a lasting impression on consumers. There is a strong opportunity to connect with consumers through marathon sponsorships that many other sports do not offer.

Athletes, fans, and consumers merge in many instances at a marathon, allowing for brands to reach a concentrated and specific section of the market without wasting resources on marketing initiatives that may not reach the intended target.

Sponsors can receive additional value when a celebrity decides to participate, increasing attention and coverage of the event, such as when Sean Combs ran the New York Marathon in 2002, Katie Holmes in 2007, and Ryan Reynolds in 2008.

Furthermore, Will Ferrell’s participated in

the Boston Marathon in 2003 while Lance Armstrong competed in 2008 after spending the previous two years running in the New York race.

Marathons give sponsors the probability of a strong return on investment. It is a good cause with a large reach that includes high performance but also a casual element all rolled up into one event.

It has the ability to capture consumer attention, especially if a brand’s activation integrates several physical marketing aspects into the race, as well as taking advantage of digital tools to achieve maximum exposure.

Brands that sponsor marathons have one day to complete objectives, but successful activations will provide long-distance results.

Contact Rich at richard.kimsey@student.shu.edu

Visit of Chinese President Hu Jintao Signals Promising China-U.S. Future

By Laura Russo, International Business Writer The week of January 16 was a modernday meeting of the minds, as President Hu Jintao of China represented his country’s people with a four-day visit to the United States, to discuss opening up economic markets to increase trade with President Obama.

This visit is hailed as “the most important by a Chinese leader in 30 years.”

President Hu and President Obama spent the four days discussing various international issues, including North Korea, the Chinese

currency, investment banks, and trade barriers.

This visit was also monumental to improving the historically rocky business relationship between China and the U.S. China has recently dominated the headlines, reporting an unprecedented 10.3 percent increase in annual GDP for 2010, which is only one indication that the country is on a rapid rise to becoming a dominant world power. For years, experts have predicted China’s potential to be a top player, and now, those predictions are proving to be reality.

President Obama negotiated a $45 billion trade deal with China that will benefit both parties. Hu urged Obama to consider easing export controls, especially for the high technology market, while the U.S. asked for China to purchase more American-produced goods and services. This agreement was one of many that the two presidents signed on January 21 in Chicago.

Among the many parts of the agreement was a deal with the largest bank in China, ICBC, to acquire U.S. retail bank branches.

Continued on page 16...

2

TUESDAY, FEBRUARY 1, 2011

Money & Investing This Week’s Poll Question: With the iPhone now going to Verison, will you switch?

A: Yes, I plan on switching B: No, I will not switch C: I do not want an iPhone D: When the price is right Respond at www. stillmanexchange.com

Last Week’s Poll Question: How much did you spend on Black Friday and Cyber Monday? $0 - $50 (47%) $51 - $100 (23%) $101 - $150 (3%) $151+ (27%)

Sector Summary Courtesy of Google Finance

NEWS BRIEFS

Earnings Stock to Watch: Netflix, Inc. Graph courtesy of Yahoo! Finance

• The nation's largest cable TV company, Comcast Corp., took control of NBC Universal after the government shackled its behavior in the coming years to protect online video services such as Netflix and Hulu.

• Regulators on Friday closed banks in Colorado, New Mexico, Oklahoma and Wisconsin, lifting to 11 the number of bank failures in 2011 following last year's toll of 157 taken down by the weak economy and piles of soured loans.

• A federal jury in Texas on Friday ordered Johnson & Johnson and a subsidiary to pay $482 million in damages to an inventor who claimed the health care giant infringed on his patent for a cardiac stent.

• An effort is under way around the country to expand broadband Internet access to rural areas.

World Currencies Courtesy of Google Finance

THE STILLMAN EXCHANGE

Tech Sector Continues to See Positive Future

By Dhara Patel, Money & Investing Writer

The Silicon Valley job market finished 2010 on an optimistic note. As the unemployment rate continued to decline, employers added 8,300 jobs over the course of the year.

A recent report by the Economic Development Department declared the tech sector- 2010’s big winner. The EDD reported heavy gains made by the technology, information and business services markets.

The biggest yearly loss was reported by government workers, who saw 2,600 jobs vanish in 2010, almost half of which were in public schools. Construction and finance sectors remained stable with no significant increase or decrease.

Stephen Levy of the Palo Alto-based Center for Continuing Study of the California Economy says that there are essentially two economies. Regions with strong tech sectors such as Silicon Valley are doing well, while areas dependent on construction and government employment are doing poorly.

“The economy is definitely improving for people in the right sectors who have jobs in a bifurcated economy,” Levy said.

“It’s a tale of two economies.”

Andy Ehlers of San Martin, California just landed a test engineering job with a company in Fremont two weeks before Christmas after being unemployed for eight months. “It seemed to bottom out in the first part of October,” he said. “Then all of a sudden I started seeing things open up.”

Rolando Monsanto, a high-tech sales executive from Sunnyvale, California states, “We’re starting to see a slow pickup,” Monsanto said. “All the organizations have new sales figures they’ve got to achieve. I think companies are cautiously optimistic that things are going to pick up this year.”

The yearly 2010 figures obscure the gains that were made in finance the last quarter of the year, said Heather Martin, Silicon Valley division manager in finance and accounting for the recruiting firm Robert Half International. Martin comments that demand has begun to increase.

Hiring in finance means companies are beginning to think about growth, she notes.

However, there are still tens of thousands of people looking for work in a tech industry that learned how to do more with fewer employees during the recession.

“It’s a slow recovery, but it’s starting to look better,” said Janice Shriver, labor market specialist with the Employment Development Department. “I’m excited that maybe people are starting to spend a little more, things are starting to stabilize and the unemployment rates are starting to inch down.”

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

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

THE STILLMAN EXCHANGE

Money & Investing

TUESDAY, FEBRUARY 1, 2011

3

General Motors Plans to Create 750 Factory Jobs Steve Paramo, Money & Investing Writer Back in 2009, General Motors (NYSE:GM) was on the brink of elimination. The sluggish economy resulted in reduced consumer spending, and General Motors had its lowest sales totals in years, forcing the automobile giant to file for bankruptcy.

Now, things are looking up as the company has just announced that they would add a third daily shift and 750 more jobs at their Flint plant.

Flint, Michigan is the original birthplace of General Motors, and was also one of the most powerful manufacturing towns during its prime by providing tens of thousands of jobs; it was the center of opportunities for people in the area.

However, over the past few decades, jobs for General Motors have been cut, and the city has steadily been declining, forcing thousands to relocate elsewhere.

Dana Rouse, the chairman of United Automobile Workers Local 598 expressed that “Less than two years ago, we didn’t even know if we were going to have a company.”

Currently, demand has surged with

Photo courtesy of autoincar.com GM plans to create 750 more jobs, which will provide the downtrodden city of Flint, and the state of Michigan, a much needed boost after years of high unemployment.

sales of Chevrolet pickup trucks and other models to small businesses up 39 percent in November and 54 percent in December, according to The New York Times.

The plant at Flint specifically builds heavy-duty Chevrolet and GMC Sierra crew and regular cab trucks, along with the light-duty Chevrolet Silverado crew and regular cab trucks.

General Motors will call back those

workers who were laid off during the recession to fill up those 750 recently added job spots, while adding a third daily shift at the Flint plant.

This will only help the struggling State of Michigan, whose unemployment rate for December 2010 was at 11.7 percent, a full 2.3 percent higher than the national unemployment rate, according to the Bureau of Labor Statistics. Flint has an unemployment

rate of 12.5 percent, which is among the highest of all metropolitan areas.

General Motors seems to be riding the ship along the right path. For example, one of the most prevalent factors of its recent accomplishments has been the firm’s growing success in China.

According to The New York Times, General Motors sold more vehicles in China than in the United States last year, a first for the company. General Motor’s sales in China rose 29 percent to 2.35 million, versus 2.22 million, a 6 percent increase, in its home country.

This signifies China’s importance in uplifting the United States’ fragile economy; the country’s continued interest in American cars has helped propel General Motors to newfound success following its bankruptcy.

With continued demand from global markets, as well as increased consumer spending by small businesses and individuals, General Motors seems to be rebounding, which comes to the relief of many in the Motor City.

Contact Steve at steve.paramo@student.shu.edu

S&P Cautions of Further U.S. Muni Bond Downgrades

By John Ceniza, Money & Investing Writer Standard & Poor issued a warning on January 24 stating that municipal bonds issued by state and local governments could see numerous downgrades this year.

According to the S&P report, although the number of rating downgrades may increase in 2011, the majority of state and local government borrowers will uphold their medium to high investment-grade ratings.

The increased number of downgrades stems from S&P’s proposal on changing the way it rates bond insurers. Basically, unless insurers with investment-grade ratings raise capital or reduce risk, they would face cuts of one or more tiers if the proposed criteria

were implemented.

After the two biggest bond insurers, MBIA Inc. (NYSE:MBI) and Ambac Financial Group Inc., lost their top AAA ratings in 2008, ratings companies are currently revamping the way they grade their creditworthiness.

The S&P also expects the municipal bonds market to be more volatile in 2011.

Certain states such as California, Illinois and New York are currently experiencing deep budget deficits which lead investors to question states’ and cities’ ability to fulfill their payment obligation to muni bond holders.

Gabriel Petek, Standard & Poor’s credit analyst, admits that he does not think the budget problems will result in a large increase in defaults as Wall Street analyst

Meredith Whitney warned.

Whitney said that the market could see 50 to 100 municipal bond defaults and restructurings this year.

Not everyone agrees with her bleak scenario since defaults are not very common. According to Moody’s Investors Services, there have been just 54 defaults out of the 18,000 muni bonds issued between 1970 and 2009.

Some, like Hugh McGuirk, are more optimistic about the 2011 muni market.

McGuirk is the head of municipal investments at T. Rowe Price and he said, “Governments are under financial stress and undoubtedly have long-term liability problems related to pensions and health care costs, but they have been making substantive cuts in their budgets, and will continue

to cut more meat to balance their budgets.”

McGuirk added that muni bonds are still higher in quality than fixed income securities.

As a result of deep budget deficits and the need to fulfill their obligated payment to muni bond holders, states may raise both corporate and personal income tax; such action has already been taken in the state of Illinois.

The good news is that even in the event of a default, bond investors typically recover most of their money.

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

Facebook Raises Additional Capital; Valued at $50 Billion

By Jennifer Crowe, Money & Investing Assistant Editor, The well-known social networking website led by founder and CEO Mark Zuckerberg, Facebook Inc., has recently released new financial information that suggests that the company is growing rapidly.

The company has received additional capital of $1.5 billion. $1 billion of the new investments came from Goldman Sachs, Inc. (NYSE: GS) and the remaining $500 million came from the Russian investment firm, Digital Sky Technologies. The transactions were processed late in December 2010.

While the company does not have any immediate plans for use of the new capital, Facebook released a statement saying that it would, “continue investing to build and expand operations.”

There has been talk of the company making arrangements to go public in April 2012. Facebook has indicated that it is going to take its time to decide what the company’s next move will be.

When Goldman Sachs first offered to invest in Facebook, the Wall Street giant gave Facebook the option to accept anywhere between $375 million to $1.5 billion.

Facebook, accepted $1 billion in new capital, and has plans to hire more people and expand its service.

Vice President of Wedbush Securities, Lou Kerner, who has covered the Social

Photo courtesy of Wikimedia

Facebook, Inc., founded by Mark Zuckerberg, plans on increased hiring and expanding services using $1.5 billion in new capital investments from Goldman Sachs and Digital Sky Technologies.

Media and E-Commerce sectors for ten years commented on the Goldman transaction with Facebook by saying, “The Goldman investment in the company, I think, is a wake-up call to the entire world that Facebook is a force to be reckoned with. The increase in stature is going to have significant benefits for the company going forward.”

Bloomberg reports, “The investment gives Goldman Sachs an entry into a social-

networking service that’s threatening established Internet companies such as Google Inc. (NASDAQ: GOOG) and Yahoo! Inc. (NASDAQ: YHOO).” Facebook is gaining recognition among some of the top ranked companies in the world; people utilize the website daily, and many companies use Facebook as a means of advertising.

According to the internet tracker, Experian Hitwise, Facebook has beaten out Google in becoming the most frequently

visited website in the U.S in 2010.

Also in 2010, Facebook earned $1.2 billion in revenue and $355 million in profit alone in the first nine months of the year.

2010 was a pivotal period for Facebook and profits are expected to increase in 2011. The Facebook company is now valued at a total of $50 billion.

Facebook’s Chief Financial Officer released a statement saying, “Our business continues to perform well, and we are pleased to be able to bolster our cash position with this new financing. With this investment completed, we now have greater financial flexibility to explore whatever opportunities lie ahead.”

Since Facebook’s founding in 2004, it has grown in popularity and has generated a large user base from a wide range of demographics.

The company is known internationally and is used for various purposes.

Facebook’s services are used for staying connected with family and friends, as well as for business marketing. It continues to expand into new markets.

With this fresh round of capital investments, Facebook is expected to do big things in the near future.

Contact Jennifer at jennifer.crowe@student.shu.edu

4

TUESDAY, FEBRUARY 1, 2011

Money & Investing

THE STILLMAN EXCHANGE

Decreased Supply in Ivory Coast Cocoa, Prices Surge Graph courtesy of www.xplosivestocks.com

The price of cocoa has seen a significant increase in one month. In just one week, the price of cocoa increased by over 4 percent.

By Doug DeMarco, Money & Investing Writer The price of cocoa rose by 4 percent last week, in part of the Ivory Coast’s announcement of a one-month export ban.

The Ivory Coast, despite being a small country, is the world’s largest cocoa suppli-

er. It supplies roughly between 30 to 40 percent of the world’s supply of cocoa. The cause of the ban is the result of the country’s political situation.

The former president of the nation, Laurant Gbagdo, lost in a recent election to his opposition Alassane Ouattara.

However, Gbagdo refused to give up his

leadership position.

Ouattara, however, had a well thoughtout plan to retain full control of the country, as well as to settle disputes.

By cutting off the cocoa exports, no money would be coming into the country to help support the military and civil servants who mostly support Gbagdo, the result would be forcing Gbagdo to step down.

This move proposes both positives and negatives for the Ivory Coast. The positive outcome of the ban is that the political issues in the Ivory Coast can potentially be settled. However, from an economic standpoint the country may be taking a significant hit.

The Ivory Coast relies on the exports of cocoa to keep its economy running strong. With a month’s supply of cocoa not being exported to other nations, the cocoa farmers and the economy surrounding cocoa production will suffer.

Furthermore, the ban will also impact other nations, such as here in the United States. One significant factor is that food companies are being faced with rising raw materials costs.

Since companies are trying to remain competitive by keeping the prices of their goods low, the rise in cocoa prices will decrease their profit margins. The ban on cocoa exports in the Ivory Coast will likely hurt many companies that rely on coca exports.

A decrease in around one third of the world’s supply of cocoa used in production will increase the demand to supply ratio.

This shortage has and will continue to increase the price of cocoa on the open markets.

Political stability further increases the price of cocoa. With increase uncertainty over the political situation in the Ivory Coast, an increase in market volatility is also expected.

The end result is raw materials prices that may push struggling food companies that rely on steady coca supplies in a bind and potentially out of business .

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

Government Healthcare Fraud Team Collects $4 Billion

By Ashley Perrone, Money & Investing Writer In the last year, the government collected an astonishing $4 billion through its health care fraud prevention and enforcement efforts, making it the largest collection ever recovered in one year.

“This is the highest annual amount ever recovered from people who attempted to defraud seniors and taxpayers,” the Department of Health & Human Services said in a statement.

The Department of Health and Human Services, as well as the Justice Department created the Health Care Fraud Prevention & Enforcement Action Team (HEAT) around two years ago, in order to prevent malicious acts by programs such as Medicare and Medicaid.

The agencies reported that $4 billion was taken from them between Oct. 1 2009 and Sept. 30, 2010.

“Through this initiative, we are working in partnership with government, law enforcement, industry leaders, and the public to protect taxpayer dollars, control health care costs, and ensure the strength and integrity of our most essential health care programs,” associate Attorney General Thomas Perrelli, had commented on the issue.

Federal prosecutors recently opened 1,116 criminal health care fraud investigations with an whooping outcome of a total of 726 defendants being convicted. 146 defendants were incarcerated, averaging more than three years of jail time.

However the largest portion of money collected did not come from individual

fraudsters but from large drugmakers, that are responsible for half of the $4 billion collected.

Botox-maker Allergan, Inc. (AGN, NYSE) has agreed to pay the government at least $600 million this previous year to deal with criminal and civil liability that came about from its marketing of Botox for treatment of headaches and other issues that were not approved by the FDA. Novartis (NVS, NYSE) had also agreed to pay their share in dealing with criminal and civil liability arising from the illegal marketing of certain pharmaceutical products by giving the government $422.5 million.

AstraZeneca (AZN, NYSE), another company that had paid $520 million to resolve allegations, were accused of marketing the anti psychotic drug, Seroquel, for

uses not approved by the FDA. They had also paid doctors to promote the product.

This year, the HHS said the screening process for Medicare providers and suppliers will be stricter and more rules will be enforced. In order to prevent future mishaps and to ensure the safety of products being distributed out to the public.

There will also be more rigorous screening for providers and suppliers to check for previous fraudulent activity.

The providers that have been kicked out of Medicare, Medicaid or CHIP programs in one state will be barred from all Medicaid and CHIP programs, all throughout the country.

Contact Ashley at ashley.perrone@student.shu.edu

Euro Sees Gains on Bailout Talks, No Resolution in Sight

By Lee Duan, Managing Editor As of January 28, the euro was trading at 1.361 euro per U.S. dollar, near the highest level in two months. The currency has been supported by the expectation that European officials will increase bailout aid for debt-ridden members of the euro zone.

According to The Wall Street Journal, deputy finance minister, Jörg Asmussen, of Germany stated last Tuesday, “We aim to deliver a comprehensive package.”

The details of that package are speculative at best. Possible relief may come in the form of lowering the interest rate of borrowed funds for euro zone countries, and may include allowing members of the eurozone to borrow from the European rescue fund to pay back higher-interest debt.

More importantly, Asmussen stressed at the Bloomberg European Debt Crisis Conference that the current problems faced by euro-zone countries should not be made synonymous with the euro as a currency.

The climate in Europe “is not a crisis of the euro” but is a problem with debt in some nations within the economic and monetary union.

However, it is unclear how the European Union will proceed in delivering the rescue plan. Asmussen stated that “more decisive” action will be taken by European officials at the meeting scheduled for the end of March.

Previously, euro zone aid has primarily

Photo courtesy of guardian.co.uk

President Sarkozy of France bluntly defended the euro at the World Economic Forum in Davo, Switzerland. Concerns over the euro currency remain over excessive debt.

come from sovereign bond purchases by the European Central Bank and loans by the European Financial Stability Facility. The ECB has made it clear that they are looking for political leaders to step up and facilitate a debt reduction plan.

Although the method in which to bolster the euro zone seems unclear, the message being conveyed by European leaders is that of necessary action.

According to The New York Times, Chancellor Angela Merkel of Germany said the euro “is more than a currency.” While at the World Economic Forum, she vowed that the euro “is Europe. If the euro fails, Europe fails.”

Other big name defenders of the euro also spoke out during the conference.

President Nicolas Sarkozy of France stated on Thursday, “To those who would bet against the euro, watch out for your money because we are fully determined to defend the euro.”

On Friday, the Greek Prime Minister, George A. Papandreou, said at the Forum that he expects the European Union and other lenders to give the debt-laden country more time to pay back its loans.

Greece, along with Ireland, Spain and Portugal, are among the countries most heavily affected by significant levels of debt.

Many economists believe that it is inevitable that Greece will default on its sovereign debt, and even with the support of euro zone nations, will suffer from inescapable political instability.

The issue has become whether or not other euro zone countries should intervene and pay off the dangerous debt levels experienced by struggling euro zone countries.

By doing so, it would set a negative precedent affirming inappropriate fiscal behavior; a significant moral hazard would be created that presents the assurance of a safety net. This could promote future risk taking by members of the euro zone.

Yet, a bailout by the stronger European nations, especially Germany, may be necessary. According to Robert J. Shiller, a professor of economics at Yale University, “the precedent of a default of a euro country is pretty bad.”

The fear is that a default of Greece would increase fear and volatility in the markets, which would hurt already troubled European nations. Increased instability could be costly for not only the weak euro zone nations but will have a significant impact on other members of the European Union, as well as the global economy.

There is no consensus on how to correct the current debt crisis. Action will need to be taken soon to stem the European debt levels from getting out of hand.

Contact Lee at li.duan@student.shu.edu

THE STILLMAN EXCHANGE

Money & Investing

TUESDAY, FEBRUARY 1, 2011

5

Credit Cards to Go in the Direction of VHS With a New Year Comes New Consumer Confidence Photo courtesy of The New York Times

By Stefano D’Urso, Money and Investing Writer An index of the U.S. consumer confidence level spiked in January, reaching its highest level since May. More consumers are optimistic about income and jobs, as well as the current health of the economy, the Conference Board reported last Tuesday.

Statistically, confidence rose to 60.2 this past month, above expectations of economists polled who predicted a reading of 54.8.

The Confidence Board’s index helps analysts and economists compare fluctuations in confidence, with a benchmark reading of 100 for the base year of 1985. Historically, when the economy is expanding at a healthy rate, confidence readings are at or near 90 and above. The last economic expansion that ended in December 2007 saw a consumer average of 96.8.

“Consumers are seeing the true improvement in the labor market,” said Ryan Wang, an economist at HSBC Securities USA Inc. in New York. Nonetheless, “more progress is going to be needed to get the types of growth rates in both employment and spending that many are expecting to see this year.”

The share of Americans who said jobs were plentiful rose to the highest level since May 2009, while those expecting an increase in income climbed to an eight-month high.

America is starting to see improvements in job outlook and employers are once again matching employee 401k contributions that most companies froze during the financial crisis.

A new survey from the National Association for Business Economics reported Monday that the number of companies expressing positive hiring plans was at its highest level in 12 years.

Although the rise in confidence is likely to capture the attention of policymakers at the Federal Reserve, it is unlikely that there will be any mid-course changes. It is probable that we will not see any changes from the Fed until the unemployment rate is in a steady, downward trend.

While confidence has stayed weak since the recession ended in summer 2009, consumer spending has been picking up.

During the 2010 holiday shopping season, sales increased at the fastest rate in six years.

The jobless rate fell to 9.4 percent in December from 9.8 percent in November, but the economy added only 103,000 jobs.

Employers added 1.1 million jobs for all of 2010, or about 94,000 a month.

The nation still has 7.2 million fewer jobs than it did in December 2007, when the recession began. But many economists expect the nation will create twice as many jobs this year as it did last year. They note that people who still have jobs are not as worried about losing them as they might have been a year ago, and that people are spending more.

What does this all culminate to? The U.S. is slowly but surely regaining its consumer confidence in the economy and marketplace, and will continue to see improvements with increased hiring across the board, as well as higher household income.

It will be interesting to see what the confidence is like in the coming months to test whether January was just a New Years hangover or a real turnaround.

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

Near field communications is technology that allows consumers to pay with a cell phone or other electronic device.

By Stephanie Gonzalez, Money & Investing Writer In the age of technology that we are living in today, it comes as a surprise that the credit card is still taking up space in our wallets. A big movement is rapidly taking place in the credit card industry.

CNN Money recently reported on the idea of the “mobile wallet.” As technology becomes more and more prominent in our lives today, people are buying many devices which are beginning to integrate NFC like smart phones and iPads.

NFC, or near field communication works similarly to the iPod “bump” that transfers information with a slight bump between two devices.

NFC creates the ability for a phone or other electronic device to contain and share the same information that a credit

card would hold.

Although this movement sounds alluring, it is not an easy transition. CNN Money reports, “We’ve been carrying a NFCchip-equipped Visa card in our wallet for years. We tried to use it a few times to buy stuff at a discount pharmacy in New York City.

One time it worked. The other times the check-out clerk rolled her eyes and asked me to just swipe the damn card.”

However, 2011 is expected to be the year for new technology. Fred Yager of consumeraffairs.com stated that “pay-by-phone is forecast to make up $22 billion in transactions by 2015, up from ‘practically none’ last year.” So perhaps the credit card change to smart phones simply just needs time.

The United States needs to quickly hop onto the new wave of technology. In other parts of the world the credit card has already become obsolete.

This makes it much more difficult for Americans to travel.

Other countries are implementing new technology into their credit cards under the name of “Chip-and-PINs.” According to Allie Johnson, these “chip-and-PIN” cards have small computer chips installed into them that require all monetarily transactions, specifically in the United Kingdom, to be done by PIN numbers.

This was made in order to prevent identity theft, which is a main concern for users. If the U.S. were to implement the “chipand-PIN” cards, there is limited risk regarding theft of funds.

However, there is still the problem of changing the credit card service over to newer and “smarter” technology.

Americans seem uncomfortable with the extensive use of new technologies, especially due to the perception that the risks outweigh the benefits. Stores must first allow for NFC and other technologies to be more convenient than traditional credit cards before they will be accepted by the general market.

Contact Stephanie at stephanie.gonzalez@student.shu.edu

Auto Loans Hit Record Low Interest Rates

By James Donnelly, Money & Investing Writer,

Doesn’t everyone love the smell of a new car? Well today, interest rates are favoring buyers, or at least the rich ones.

Edmunds.com, an esteemed auto research site shows that rates on auto loans are hitting record lows.

The figures in December were a different case, according to Ivan Drury, an Edmunds analyst, because the luxury market was the major driver.

The average auto loan for new car purchases carried an interest rate of 4.16 percent in December, the lowest level since the automotive research site started tracking data in 2002.That is nearly half the record rate charged in January 2006, when demand was high and credit was easier to come by for consumers of all incomes.

December’s figures were a unique case, said Ivan Drury, an Edmunds analyst, because the luxury market was the main driver. “You can only buy a car in December if you’re financially well off,” said Drury. He went on to say that travel, holiday presents, and other luxury items often kept everyday consumers from the

auto dealerships at the end of the year. Apparently, this was not the case for 2010.

Since the wealthy receive more credit and are offered lower interest rates, the published rates are skewed lower than the interest rates received by the average borrower, according to Drury’s research. Even so, many automakers were offering large incentives such as low rates or even no interest.

Buick, which is owned by General Motors, offered consumers the most incentives in December. As a whole, over half of the GM brand’s sales were financed were through “no-interest loans.” Toyota was next with forty percent of its financed sales being derived from “no-interest” loans, according to Edmunds.com.

These unusual incentives could have been a major factor in the strong auto sales at the end of the year. Throughout the auto industry in the U.S., sales rose eleven percent in December, ending the best quarter since the third quarter of 2008.

Contact James at james.donnelly@student.shu.edu

Verizon to Offer Unlimited Data for iPhone Photo courtesy of theiphoneguru.net

The iPhone has been a key ingredient to AT&T’s profits, but will now be offered by Verizon.

By Scott Watson, Money & Investing Writer

Verizon (NYSE:VZ) announced that it will offer new iPhone users a $30 unlimited data plan to make the transition easier from AT&T (NYSE: T).

Last June, AT&T discontinued their unlimited data plan for new users and now only offers new customers two limited data plans. The two plans that are now offered are 200 MB per month of data usage for $15 or 2 GB per month of data usage for $25.

Each plan charges an extra fee if the user goes over the specified bytes allowed. Overall, Verizon provides its users with more options in text messaging, data, and voice plans, allowing them to

construct custom plans based on how much they want to get out of their mobile devices.

AT&T does have a plan to appeal to the more budget conscious individual, with the cheapest of all three plans being $65 for iPhone users. Verizon’s cheapest plan is $10 more, but offers a better bargain for the data plan. Offerings from both cell phone providers are similar, so users will primarily choose based on service preferences.

Verizon’s offering of an unlimited data package will likely increase the number of iPhone users that will switch from AT&T to Verizon. There have been rumors regarding a Verizon iPhone for almost five years, and the Verizon faithful have waited patiently. For months now, anticipation for the release of the new phone has been at an all time high.

Verizon CEO Lowell McAdam said that they would be offering an unlimited data plan so AT&T users who have the plan already would not be stuck behind a barrier.

According to a report done by The Wall Street Journal, the unlimited plan offered by Verizon would be a temporary feature, available only for a short time. So what is the strategy behind this move? Verizon plans to persuade as many AT&T users as possible to switch their service in order to gain market share.

After the initial launch, Verizon plans to switch the plans back to a tiered pricing plan, similar to the plans now offered by AT&T. Contact Scott at scott.watson@student.shu.edu

6

TUESDAY, FEBRUARY 1, 2011

Stillman News

THE STILLMAN EXCHANGE

Bounce ‘N Trounce Returns to Build School Spirit

By Ryan Garrity, Stillman News Editor Throughout the course of this academic year, the Student Alumni Association (SAA) has been working hard on increasing the amount of traditions we have here on campus. This has been seen in a number of ways, including traditions assembly, new events, and the continuation of past traditions. One of these took place at the culmination of Spirit Week: Bounce ‘N Trounce.

Starting last year, Bounce ‘N Trounce begins each year 24 hours before the Rutgers game. It was created as a way to show support for Seton Hall athletics on campus and around South Orange. The goal is simple: to bounce a basketball for 24 hours straight, in hopes that the Men’s basketball team will then trounce their in-state rival.

Last year, the turnout was huge.

Over 125 students, alumni, campus offices,

student clubs, and Greek organizations bounced the ball. Each bounce was recorded and the ball did not stop bouncing for 24 straight hours. In the end, the ball was bounced 124,930 times! Just as important, the Student Alumni Association was able to successfully bring a new tradition to campus, one that will continue for years and years to come.

Based on the results from last year, it was clear that the Student Alumni Association and the bouncers were going to have some work to do in order to break those numbers. Signups began towards the end of last semester. SAA started an “adoptan-hour” initiative—they allowed different organizations and groups across campus to sign up for an entire hour. During this time, they would have the entire bouncing area to themselves.

So called “walk-ins” were also very helpful to the final bouncing total this year. Students were flooding the main

lounge through all hours of the night, bouncing to their hearts content. If a student came in and bounced the ball for ten minutes, then they received a free commemorative t-shirt.

But the t-shirt and the ball bouncing were not the only events that entertained students. At six o’clock, there was a pep rally that took over the main lounge.

Students were packed in like sardines, where they were able to witness various contests between students. They were also entertained by Seton Hall cheerleaders and the Pep Band. Students also got a surprise visit from the men’s basketball Head Coach Kevin Willard, as well as players Jeremy Hazell, Fuquan Edwin, and Patrik Auda.

After the Pep Rally, Bounce ‘N Trounce really kicked into high gear. There was a claw machine where students could win a variety of prizes, air hockey tables for friends to take each other on, tables and tables of board games, and even a giant pro-

jection screen with an Xbox 360 hooked up to it. Music played on throughout the night, and hit movies were shown in the wee hours of the morning. Bouncers in the morning were even treated to delicious pastries, bagels, juice, and coffee.

As the final hours approached, SAA wrapped up the party in the main lounge and counted the ending numbers.

The final statistics were enthralling—over 150 people bounced the ball, and the ball was bounced 132,122 times! The event was a huge success, and it seems like this is one tradition that will go on for a long time.

For more information on both the event and the Seton Hall Student Alumni Association, please visit www.setonhallsaa.com Contact Ryan at ryan.garrity@student.shu.edu

Business Case Competition Helps Students Shoot for the Stars

By Andrew Weinstein, Stillman News Writer Have you ever wanted to use your business knowledge to work your way through making decisions in a mock case?

Then perhaps the Johnson & Johnson Business Case Competition is for you! Once again, Johnson & Johnson has invited stu-

dents of the Stillman School of Business to participate in this prestigious and exciting opportunity.

In this competition, student teams are given a business scenario based on a hypothetical healthcare company, and they must choose from among three different business strategies. They are tasked with finding the best way to run this company.

After coming up with their answer, teams must then make a formal presentation to a panel of judges. Teams begin by first competing at the school level (this is referred to as the “On Campus Competition”). The best Stillman team will then be given the opportunity to advance to the Corporate Competition level.

At that level, the team will compete against student teams from other universities. The kick-off for the On Campus portion of this event will be held on February 2 at 5:30 pm in the Jubilee Hall Faculty Library. The part of the competition that selects the team representing Stillman will be held during the week of February 28, 2011.

This case analysis and presentation is very comprehensive. As a result, the Stillman School is allowing students who participate in the Johnson & Johnson Business Case Competition to substitute the experience for the requirement to participate in the case analysis and presentation portion of the Undergraduate Assessment Panels.

To be eligible to make this substitution, a student needs to have an overall GPA of at least 3.0 or a strong recommendation from a Stillman professor in whose class the student is or was enrolled. Students will still be required to complete the individual task components of the Undergraduate Assessment Panels, and will complete that requirement in the semester in which they would otherwise be scheduled for assessment.

An alternate solution is for students to earn academic credit for the competition. Students have the option of earning up to two credits of general business elec-

tive coursework for participating in the competition. However, students who wish to earn the academic credit cannot also take advantage of the Assessment presentation substitution.

Students who wish to participate in the Business Case Competition should form teams composed of 5 to 7 students with no more than one senior and at least three finance or accounting majors. In addition, a team cannot have more than two members who participated in last year’s edition of the competition.

Johnson & Johnson suggests that teams should include students from a number of different business concentrations or majors. If there are interested students who are unable to find a team, the Stillman School can assign students to teams.

Johnson & Johnson representatives will meet with all teams during the kickoff event being held on February 2. At this event, the business case will be introduced and the specifics of the competition will be outlined. The bulk of the work that student teams will do will take place during the following four weeks.

The Johnson & Johnson Business Case Competition is a fantastic opportunity for students to earn academic credit, showcase their business analysis and presentation skills, and interact with Johnson & Johnson professionals. If students are interested, they can contact Associate Dean for Undergraduate and MBA Curricula Viswa Viswanathan at kodagavi@shu.edu.

Contact Andrew at andrew.weinstein@student.shu.edu

Seton Hall Students Catch the Spirit Bug

By Katherine Funk, Stillman News Writer Spirit was at an all time high at the start of the spring semester, as Seton Hall kicked off its sixth annual Spirit Week, which took place from January 18 to January 22. This week was initially created to celebrate school spirit on campus and build Pirate pride. The agenda included several annual events in addition to brand new traditions. The entire student body was encouraged to come out and participate in the school sponsored events.

Students first caught the spirit bug

at the student busses before their first basketball game of the semester. Students were welcomed with delicious burgers and fries, courtesy of the White Castle Pre-Game Party.

At this game, the Pirates took on their first team of the spring semester--the Georgetown Hoyas. Free food, games and prizes were provided to all students who came out to the event. Students showed their support and love for the team by coming out in droves to support and cheer on the basketball team.

In the days that followed, many events were held in order to get students

fired up for the game against the state-rival Rutgers at the end of the week.

Events were held to boost student’s spirits such as Blue Wednesday where those who wore blue could get a hold of prizes.

Pirate Patrol teams made their way across campus throughout campus awarding those who sported their Pirate Pride.

On the same day, the University community took a moment to remember those victims and families who were affected by the fire that took place in Boland Hall in 2000. All members of the school community were encouraged to wear blue ribbon pins that were distribute throughout the day

in their remembrance.

The final event of Spirit week was the highly anticipated Men’s Basketball game vs. Rutgers. The day started out with Pirate Pandemonium which put students in the spirit with Pirate tattoos and face paint before the big game.

The Pirates played hard but unfortunately lost the game by 6 points. Despite the loss, Spirit Week was a great success and there is no doubt that the Pirates have pride.

Contact Katherine at katherine.funk@student.shu.edu

Stillman News

THE STILLMAN EXCHANGE

TUESDAY, FEBRUARY 1, 2011

7

Stillman School of Business is Back in Action Photo courtesy of Seton Hall University

The Stillman School of Business is kicking off another strong semester which includes Pirate’s Pitch, a venture capital competition.

By Rory Manning, Stillman News Editor, The Stillman School is back in action! With the start of the Spring Semester, there is always a lot of activity going on in Seton Hall’s school of business. Clubs are beginning to meet and recruit new members, opportunities for students to advance themselves are popping up, and the education train is off and running. Seniors are busy finishing up last minute paperwork in order to graduate, while the juniors are beginning to understand that they are almost done.

With a new semester come new opportunities for organizations to put their name across campus and reach out to potential members by having interesting guest speakers.

The Accounting Club is bringing in the Big Four accounting firms and the IRS, while the Finance Club is bringing Pirate Mentor alumni on campus to speak. With all these activities, there is no shortage of things to do for Stillman students.

There is also the Pirate’s Pitch, sponsored by the Center for Entrepreneurial Studies, where students can pitch their ideas to a panel of successful entrepreneurs and venture capitalists. The team with the best idea can win up to $3500 in startup money to bring their idea to life plus legal, marketing, and other business services.

The venture capital competition is already underway, so keep a look out for the teams that move onto the next round. For more information, visit http://academic.shu. edu/stillman/pirates-pitch/.

The Johnson & Johnson Case Competition gives participating students a unique opportunity to place extensive experience on their resumes, as well as provides valuable learning that they will apply in their classes, potential interviews, networking events, and the business world.

The Stillman Dance is always a favorite activity within the Stillman Community. It is an opportunity for faculty and students to get together in a social setting and celebrate being a part of the Stillman community. The Dean’s Advisory Committee is working in conjunction with Dean Strawser and Dean Onimus to make this year’s dance even better than the last. To help plan the dance or to join the Dean’s Advisory Committee, you can email Dean Strawser.

With all of these amazing opportunities, there is no wonder why the Stillman School has ranked well in the Bloomberg Business Week Survey. Last year, Stillman ranked number 8 for Return on Investment in education, beating out the Wharton School of Business, as well as the business programs at Fordham, Georgetown, and New York University.

With a strong curriculum and faculty, as well as numerous opportunities outside the classroom for students to strengthen and apply what they learn, there is little wonder why Stillman graduates are so successful.

And this is only the beginning of the semester!

There are so many more opportunities to come, so watch those email inboxes and keep an eye on the flyers by the elevators in Jubilee. The next flyer might even change your life so keep your eyes open and good luck.

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

Interview with Stillman Standout Senior Daniel Zadrozny

By Beverly Makarios, Stillman News Assistant Editor Daniel Zadrozny, this week’s Stillman Standout Senior, is pursuing a dual concentration in Finance and Accounting. As a Stillman student, Daniel’s skills and aptitude in Finance and Accounting have proven successful throughout his academic and professional career. He is an active member in the Finance Club and the Beta Alpha Psi, as well as a member of the Stillman School of Business Dean’s Advisory Committee. During his undergraduate years at Seton Hall, Daniel has already completed an internship program with R&E Management and is currently an accounting intern at Chartis Insurance.

Pursuing his education globally, Daniel visited Dublin, Ireland as part of the Stillman School’s study abroad program last year. In the following interview, Daniel shares with the Stillman Exchange more about his internship, his experience studying abroad in Ireland, and his post-graduation plans.

Beverly Makarios: How did you go about receiving your internship with Chartis Insurance?

Daniel Zadrozny: Following my junior year I decided to pursue majors in both Finance and Accounting, and I knew I needed to find an internship that would give me exposure to both fields. One of my family members who is employed by AIG, the parent company of Chartis, encouraged me to consider applying for an internship there. I researched opportunities with the company, applied, interviewed a number of times and was asked to come in and intern within the Private Client Group.

BM: What does your position as an accounting intern entail? How will the skill set you have learned as an intern impact your future career?

DZ: While I am considered an “accounting intern” at Chartis, many of the projects and tasks I completed related to many different areas within both Finance and Accounting. I spend the bulk of my time with Chartis

completing audits of the internal controls within areas of the business including billing and collections, reinsurance, claims and underwriting, as well as the accounting department. I really had such a positive learning experience working at Chartis. Not only did I get a lot of great practice collaborating with others to complete various projects, I saw many different aspects of the company (Chartis does business within the insurance industry). I got an inside look into how insurance policies are created, marketed, sold and then applied in various situations. Most of all, my experience at Chartis helped me decide where I would like to begin my career, in accounting, as an auditor. I really had such a positive experience auditing the company and completing different projects in preparation for the external auditors. My work at Chartis gave me an excellent practice, as well as a glimpse of what auditing will be like when I begin my career.

BM: Has your internship experience taught you anything you might not have necessarily learned in the classroom?

DZ: While I have learned so much about different areas of finance, as well as accounting through the classes I have taken at SHU, having an internship gives you the opportunity to put into practice what you have learned. Having this internship gave me great practice in collaborating with others across business areas and departments.

While we complete group projects in college based on class material, in the real business world you will have the difficult task of working to complete projects that span across many departments. For example, an assignment may entail carrying out a corporate strategy that involves many different people with many different levels of expertise such as a marketing specialist, an accountant and an operations specialist.

One must learn to communicate effectively and work towards a common goal. This is a very difficult concept to grasp in an educational environment.

BM: What kind of experience did you have while participating in the Study Abroad pro-

gram in Dublin, Ireland? What did you like most about this experience?

DZ: I had a very positive experience in the Study Abroad program traveling to Dublin, Ireland. Professors in Stillman, such as Dr. Larry McCarthy, do a great job putting these trips together and create excellent educational, yet fun and exciting, learning opportunities. While I only traveled there for a little over a week, I would go back in a heartbeat and my only regret over these last four years is that I didn’t take a full semester to study abroad. Studying Abroad in Ireland gave students the opportunity to learn about another country’s economy, as well as opportunities to meet with business professionals in another country in order to learn their business practices and perspectives. Business has grown so rapidly on a global scale that it is more important than ever to explore and understand globalization. I really enjoyed so many aspects of

this trip. It was great being abroad with classmates exploring a foreign land. I cannot wait to go back!

BM: You've had a successful four years at Seton Hall. As you look forward to graduation, what are some of your post-graduation plans?

I will really miss my time here at Seton Hall. I have developed so many great relationships with fellow students, as well as faculty and administration. Following graduation, I hope to begin a career in Public Accounting where I can apply my background in both Finance and Accounting.

One immediate plan is to attain the CPA designation.

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

8

TUESDAY, FEBRUARY 1, 2011

Ethics

THE STILLMAN EXCHANGE

Is the use of full body scanners in airports an invasion of people’s privacy?

The new body scanners installed at many of America’s major airports are essentially take “nude” images of travelers in high resolution detail. Opponents call this an invasion of privacy, while proponents hail it as an innovation of security technology. rity.

Gary Iannarone, Junior Finance Major

Common Sense Safety Body scanners have been installed in many of America’s airports. The overall reactions to them have been rather negative, but people seem to be forgetting to think about the benefits that they may actually bring about. Safety has become a top priority in this country, especially protection against terrorism. This top priority requires the addition of high security measures.

The reason for the implementation of body scanners is the direct result of Flight 253 on Northwest Airlines when a Nigerian man tried to set off an explosive located his underwear. By taking full body images at security check points, airports can eliminate any possibility of hidden make-shift bombs or weapons being carried onboard.

It is just another effort to crack down on terroristic plots. The scanners work like an X-ray, peering under clothing merely to check for dangerous instruments attached to the body. Not only do they find metallic objects that could be hidden in crevices of the body, they also find nonmetallic items as well.

The Boston Globe Magazine mentioned that “No single technology can keep terrorists from boarding airplanes with bomb materials. That’s why expensive full-body scanners are not cure-alls for security breaches. It’s wise to expand the use of scanners, but only as part of a broader strategy to make flying safer.” Therefore, these scanners are an integral part of airport secu-

Many people have commented on the image, wondering if it is too pornographic and detailed. However, the authorities behind the scanners explain that the images appear merely like ghosts. The outlines of the people are obscured purposely to protect privacy and are equivalent in appearance to chalk drawing. It is quintessential to remember that terror attacks violate rights more and at a different level than a mere body scan. The body scan can possibly be argued as an invasion of privacy, but a full blown terror attack is a definite violation of victims’ basic right to life!

What many people also do not realize, is that it is a machine scanning a human body, not eyes. The person looking at the scan is separated from the scanner and therefore cannot see the person getting his or her image taken. Images are not stored and safeguards are in place so that they cannot be abused by employees. It must also be noted that all individuals have a choice on whether or not to step into the scanner.

At the end of the day, a human life is priceless and the mere scan is just part of a safety procedure. The innumerable lives lost because of preventable tragedies are too costly to not implement stringent security measures. With the scanners, airport security is able to view threats that they could not see before. Safety of the citizens must come first.

Contact Gary at gary.iannarone@student.shu.edu

Gabriella Petrillo, Junior History Major

A Necessary Measure It is unfortunate that we have become so afraid, disturbed, and alarmed in today’s world that we must submit ourselves to the strongest advancements in safety; even if we must limit our right to privacy.

“We should not have a choice on whether or not to use the body scanners. Although we have a constitutional right to privacy, our rights are limited, especially for our protection in today’s era of fear.”

The controversial airport scanners are an example of how defensive Americans are treating the threat of terrorism, which seems to have become a normal way of life.

We should not have a choice on whether or not to use the body scanners.

Although we have a constitutional right to privacy, our rights are limited, especially for our protection in today’s era of fear.

Weapons are so technologically advanced that they are extremely small and can be

placed anywhere on one’s body. The only way to protect the public is to identify these armed individuals.

The use of body scanners can be beneficial to the safety of travelers. Instead of security having physical contact with people to check for weapons, people can now simply enter the body scanners to avoid being touched.

In some ways, stronger security has made travelers feel more comfortable.

There is only so much physical contact security can enforce until it causes emotional discomfort and interfere with individual freedom. Full body scanners thoroughly examine travelers without being touched. This advancement in security has come a long way.

Of course, some travelers do not feel comfortable being scanned because much of their body will be revealed.

However, they need to keep in mind that the photos are only X-ray images and certain parts of the body are blurred out.

Security needs to prioritize what is more important: the discomfort of taking X-rays, or the safety of travelers’ onboard flights.

Everyone needs to realize that we live in a dangerous world. If you remember the tragedy of United 93, you realize that it can happen to anyone, even you. If there was a body scanner used on September 11, hundreds of lives may have been saved.

Contact Gabriella at gabriella.petrillo@student.shu.edu

Photo courtesy of australia.com

Connor Carragher, Freshman Diplomacy Major

An Unconstitutional Action When I was making my trip back to New Jersey from Chicago at the end of Thanksgiving break, I had the misfortune of traveling through O’Hare International Airport. If you are from the Midwest, you’ll of course understand why I was not thrilled about it. In addition to all the headaches that air travel notoriously provides, I received the opportunity to experience a brand new body scanning machine at the security checkpoint.

Let me be the first to tell you, it was quite the complicated contraption. Not only did it take up extra space at an already crowded O’Hare, it also did not function correctly. A couple of people before me in line had to go through the machine twice because the digital image was not properly taken.

I myself was one of the lucky individuals chosen at random to go through the machine. Fortunately, I had no problems with it, and I was free to proceed to my gate.

As I grumbled under my breath about the line at the checkpoint, I could not help but think that Uncle Sam should rethink the use

of these body scanners.

If we put ethics and civil liberties aside for a moment, the public should still view supplementary airport security machines with skepticism. Reports indicate that each one of these scanners may cost up to $150,000.

The federal government already faces a debt that continues to rise into the trillions, and new spending in any form will not make that figure come down any faster.

Current security measures, including carryon bag screening and metal detectors, do an incredible job of catching anything that a person should not carry onto a plane.

For example, the last time I went through Newark’s airport, I saw a Transportation Security Administration agent going through a little girl’s bag that only had a water bottle in it. If anyone is carrying something that he or she should not have, the TSA does an excellent job of spotting it. Body scanners simply add confusion to an already hectic airport experience.

I realize that many people will point to the 9/11 attacks as the reason why so much security is necessary. Just like any other person, the events of that day almost ten years ago changed my life forever. With that being said, body scanners would not have prevented the hijackers from taking over the planes.

By physical force, members of alQaeda overpowered flight attendants and pilots. A heightened sense of alertness and preparedness would have done more to save lives on 9/11 than body scanners. What a lot of people also forget is that even before 9/11, air travel was one of the safest forms of transportation. Driving a car or using mass ground transit gave the public a higher probability of being harmed than travel on an airplane.

Beyond all the practical reasons against the use of body scanners, the increased security measures also violate some of the liberties that a free society should enjoy. I know that we allow government agencies to go beyond constitutional limits to protect us all the time—the president does not have to obtain congressional approval for deployment of troops, the City of Chicago forbids gun ownership within its city limits—but allowing a federal agency like the TSA to conduct random searches seems extreme.

We saw how a work van loaded with explosives destroyed a building in Oklahoma City in 1995. Why don’t the police pull over every work van to check for bombs? We saw how terrorists in London blew up parts of the Underground subway system. Why doesn’t the NYPD search people before they board the MTA? Better yet,

why doesn’t the government spend more money to inspect cargo coming off ships from all over the globe?

The answer to all of these questions is simple. The Bill of Rights and the Fourteenth Amendment forbid the federal or state government from performing unreasonable searches and seizures. In this context, the word “unreasonable” means without probable cause. By randomly subjecting people at the airport to a search via body scanner, the TSA performs an unconstitutional action.

When I finally did reach my gate at O’Hare, any heightened sense of security that I may have felt from the body scanner was obliterated by the screaming kid sitting next to me. The point is simple.

Even though we may gain a small amount of security from the full body scanners, there is no reason to spend so much money on them or to allow the government another avenue to step around the Constitution. With our country in the midst of concern over economic policy and social awareness, we do not need body scanners to add to the controversy.

Contact Connor at connor.carragher@student.shu.edu

The Stillman Exchange proudly offers students, faculty, and administration the opportunity to write about their views on controversial topics.

These opinions are to be read as the opinions of individuals and not the views of the newspaper as a whole.

THE STILLMAN EXCHANGE

Editorials

TUESDAY, FEBRUARY 1, 2011

9

The NHL’s Best Not Attending Insignificant Game

By Travis Tosoni, Sports Editor It is that time of year once again: the long weekend in which the National Hockey League holds its annual All Star Game. An event that was once widely considered a spectacle by many; now, the novelty of an All-Star Game has all but worn off. What used to be an honor to be named an All-Star, has now turned into a burden for athletes; it is just another commitment in a long, grueling season.

The NHL’s All-Star Weekend is scheduled for January 28-30. The weekend-long event is to take place in Raleigh, North Carolina, home of the Carolina Hurricanes.

The league has implemented a new format for this particular All-Star Game, one in which the fans have the ability to vote for players that they would like to see at the event. Two players are then nominated as captains, and pick the players for their team, just like a pick-up game.

As can be expected, not all of the players are able to fulfill their appearance at the event. This year, just like recent years past, big-name, marquee players will be absent from the festivities. Considered the two most popular players on the Pittsburgh Penguins, Sidney Crosby and Evgeni Malkin will not play in the All-Star Game due to a concussion and a sinus infection, respectively. Other notable players who

Photo courtesy of NHL.com

Many top NHL players will not play in the All-Star game due to its lack of importance.

withdrew from the event are Ales Hemsky and Jordan Eberle of the Edmonton Oilers, and Tobias Enstrom of the Atlanta Thrashers, all due to injuries.

Aside from injuries, other big-name players will not be heading to Raleigh, due to special circumstances. Jarmoe Iginla, captain of the Calgary Flames, asked to be exempt from the All-Star festivities so he could spend time with his family and ailing grandmother. Henrik Zetterberg of the Detroit Red Wings will not be present after the team submitted a formal request to not attend, citing the numerous injuries to key players on the Red Wings. Zetterberg and

The Stillman Exchange

the Red Wings do not want to risk having to place his name on the already growing list of injured players on the team.

While injuries at this juncture of the NHL season are expected, the high number of players missing this year’s All-Star game should serve as a wake-up call for the league and its executives. Almost every player is nursing some sort of injury at this time of year, where every team has played at least 49 games. Players that do not play in the All-Star Game are able to enjoy five days at home, resting and relaxing with their families. This much needed reprieve does not exist for the All-Stars, as they fly to

Photo courtesy of idolator.com

Assistant Managing Editor Rich Kimsey

Editorial Board Money and Investing Bryan Murawski Stillman News Ryan Garrity Ethics David Guzik Editorials Anthony Crisci Sports Travis Tosoni Domestic News Morgan Tornetta

Assistant Editors Money & Investing Jennifer Crowe Stillman News Beverly Makarios International News Raphael Baseman International Business Alexandra Hauenstein

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

International News Kaitlin Tonti International Business Alex Cohen 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.

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

Oscars Popularity Down?

The Official Business Publication of Seton Hall University

Executive Board Managing Editors Lee Duan Margaret Reilly

yet another city to play yet another game.

Perhaps the biggest flaw of the NHL All-Star Game is that it has no meaning: there is no incentive for either team to win the game. Unlike the MLB All-Star Game, which gives the league that wins the game home-field advantage during the World Series, the NHL’s annual event boasts no such reward. Also, since the game no longer pits the opposing conferences against one another, there is not even the opportunity to add incentive to the game.

The opposing side to this argument would state that the All-Star Game is a way for the league to give back to its fans, providing them with the opportunity to see the best players in the NHL on the same sheet of ice. It is said to be a thrilling showcase of talent and stardom, something for fans to enjoy.

I, however, feel differently. Instead of making the players participate in a game that is essentially meaningless, let all of the players enjoy a five-day break from the schedule. By giving the players a few days to rest and recover from their injuries, it will ultimately result in a more exciting conclusion to the rest of the regular season. With every team having their stars healthy, it will make for some very exciting playoff races leading into the final days of the season.

By Anthony Crisci, Editorials Editor The Academy Awards have been known for a lot of recent failures in what they believe they do best. The ceremony has snubbed some of the years’ greatest movies, and giving awards to the less fortunate films. When keeping this in mind, and seeing the over-hyped red carpet coverage, it makes one realize that the Oscars are now a direct exhibition of America’s favorite movies.

Many movies in the first couple of decades that won the nostalgic award for Best Picture have gone down as instant classics, and some of the best movies ever made. With that said, it is just unbelievably hard to recognize the last couple of years’ films as classic cinema. Granted, in 2008, Crash won the award and was a good film. Yet, it lacked the qualities of the old-time winners. The Academy is also struggling on the basis that they seem to be picking winners by focusing on political suspense thrillers, romance classics, and inspirational stories of the lead character overcoming a significant situation.

The Academy’s recent actions have cost them significant drops in the ratings in the last twenty years. In 1997 when the highly acclaimed Titanic won the award for best film, the ceremony received the largest ratings with almost sixty million viewers. In 2008 the audience was cut in half to a little over thirty million viewers.

Recently, the Academy has changed the nomination number from five to ten films.

This should help the academy have more pieces of artwork to choose from when making the final decision.

The biggest problem with the Oscars is that the Academy rarely selects movies that are not seen throughout America.

Granted, some people don’t appreciate an “artistic” film per say, but that is still no excuse. Two years ago when the list was increased to ten nominees, the Academy made it more likely for these types of movies to make it into the chase. Thus far, this has not been the case.

Now, with the awards coming up in late February of this year, the nominations look promising and the ratings look like they will be a little higher than last year’s.

Best picture nominations include popular films like Inception, Toy Story 3, and The Fighter, with less popular artistic films such as The Kings Speech, 127 Hours, and Black Swan in the running. With everything being said, this year is going to be one of the tightest races in years when it comes down to picking a winner.

However, all of this is the Academy’s attempt at catering to a larger audience in light of ratings continuing to drop. By attempting to make the films being recognized more relevant to mainstream American audiences, the integrity of the ten nominations on the Best Picture list is all but lost.

Yet, the close race in this year’s Academy Awards is going to make it better than the rest. There is no standout film in the running for the greatest award a movie can receive. Maybe, just maybe, this year will finally bring back the notable days of everyone sitting in front of their television sets to watch the Oscars.

Contact Anthony at anthony.crisci@student.shu.edu

10

TUESDAY, FEBRUARY 1, 2011

Sports Business

Is “Big Ben” big marketing risk?

By Ian Baker, Sports Business Writer After facing two accusations of sexual assault, Pittsburgh Steelers quarterback Ben Roethlisberger a difficult question to answer, is he marketable?

In April 2010, Roethlisberger lost an endorsement deal with longtime partner PLB Sports. For five years, Roethlisberger promoted a beef jerky product made by the

Photo courtesy of Getty Images Roethlisberger is not well liked by the public

company. Roethlisberger has been on Nike’s

roster since his rookie season in the NFL but has not been used in an advertisement since 2009, where he was in a co-branded spot with Nike and Dick’s Sporting Goods.

A poll released by Nielsen and E-Poll N-Score on December 30, 2010 surveyed the general public about what they think about Roethlisberger. The survey showed that about 30 percent of the general public saying they liked Roethlisberger and about 20 percent saying they dislike him. In comparison, the average athlete has about 47 percent of the general public liking him/her and only about 5 percent disliking them.

Henry Schafer of Marketing Evaluations does not believe that on-thefield success will bring Roethlisberger more fans in the marketing world. However, Gerry Philpott, CEO of E-Poll Market Research, believes that a third Super Bowl win would rehabilitate Roethlisberger’s image slowly.

Roethlisberger’s agent, Ryan Tollner, believes that Roethlisberger is far from unmarketable. In fact, he even acknowledges that his client is not worried about scoring any deals. He said that

Roethlisberger is more worried about public perception than being endorsed. Tollner also went so far as to mention that Roethlisberger wants to win people back with day to day interactions with them and not by listening to a PR company or publicist.

The fact cannot be argued, Ben Roethlisberger is one of the best quarterbacks playing in the NFL at this time.

Should he go on to win a third Super Bowl, he would put his name among the greats of the game, such as Troy Aikman, Terry Bradshaw, Joe Montana, and Tom Brady.

Would being among these names improve Roethlisberger’s image in the public’s eye?

Would this help his marketability at all? No doubt that putting his name among NFL legends would make him a great athlete to endorse. But, with all of his off the field troubles over the past few seasons, companies hesitate to use Roethlisberger because they are not sure of the reaction of the public.

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

Braves set to introduce new suites in 2011

By Travis Tosoni, Sports Business Editor The Atlanta Braves have decided to take a new approach to select suites at Turner Field.

The club has decided to renovate four of the mid-level suites in the outfield into two suites that will be able to hold around 50 people each. These suites were usually unsold during the season, so the team opted to consolidate them.

One suite will be used as something resembling a conference room that boasts large projection screens and all the other equipment used in most offices. The other suite will be a sports bar, full of foosball tables and video games.

The Braves are currently in negotiations to obtain naming rights for each of the newly-constructed suites. The sponsors who agree to sponsorship deals will be awarded their own exclusive use of the suites for six games.

Atlanta is not the first club to decide to reorganize their stadium suites. The Cleveland Indians introduced their “fan cave” last season, a converted 12-person skybox loaded with pool tables and video games. In fact, this “fan cave” worked so well that the Indians have decided to expand its size even further and relocate to a different area of the ballpark.

Many teams with newer ballparks are noticing the amount of vacant suites has increased over the last couple of years, largely due to the poor economic conditions. Companies that once rented suites on an annual basis have not renewed their leases on the suites, and the prices to use a suite are too high for the casual fan. Stadiums like Turner Field in Atlanta that were built in the 1990’s contain many suites, because at the time, there was high interest in suite leasing from large companies.

With the newly-completed suites come new prices. The sports bar suite will cost $4,800 for weekday games and only $3,600 for weekend games, while the weekday cost of the business office suite

Photo courtesy of Brian Merzbach

The Atlanta Braves are hoping their redesigned suites will be a success

will be $6,000 and $4,500 for weekends.

By consolidating existing suites and revamping them with specific themes, the Braves hope to fix the problem of vacant luxury suites while offering a new and unique style of game day experience.

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

THE STILLMAN EXCHANGE

Matthews latest player to cash in on hairstyle

By Anthony Crisci, Sports Business Writer Prime athletes in professional sports make more money off the field than they do on it. Sponsorships including athletic equipment and apparel have topped the charts in the marketing world for athletes. These days, players are gaining financial stability on the way they brush through their lovely locks of hair.

Troy Polamalu of the Pittsburgh Steelers started the trend when he got sponsored and insured for $1 million by Head and Shoulders for his head of hair. With Super Bowl XLV right around the corner, Clay Matthews of the Green Bay Packers has also signed a deal with Unilever’s Suave brand.

Although the terms have yet to be disclosed it is to believe that Matthews will get somewhere near the same amount that Polamalu received. Matthews’ deal is reported to include media appearances before and after the Super Bowl as well as another production day if the company wishes to pursue another add with Mathews.

“The idea behind Suave is that men need different products than women,” Mathews marketing agent Ryan Williams said. “Clay really wanted to do a deal like this.” Mathews has been trying to tackle a hair deal for awhile, and believes that the Packers’ Super Bowl appearance against the Steelers helped his cause.

“I've been throwing it out there and just getting shunned," Matthews said on Monday. "I don't know what it is...America; I'm looking for a hair deal.”

Suave’s competition stated that they were never interested in Matthews for a hair deal, but Suave said that they have recently been formulated their shampoo towards men, so they decided to gain a famous sponsor for their product.

This recent spurt in the Men’s hair grooming has been spilling across not only the NFL but the entire professional sports industry. Athletes including Albert Pujols and Andy Pettite have recently signed deals with Dove for Men. Roger Federer and Tiger Woods seemed to be getting replaced by Gilette after the sponsorships given out to Ray Rice and Matt Ryan. Even Vaseline got in on the action when signing former New York Giant Michael Strahan.

Contact Anthony at anthony.crisci@student.shu.edu

NHL on pace for fifth consecutive year of revenue growth

By Robert Szeluga, Sports Business Writer As hockey continues to gain popularity in the homes of America, the National Hockey League’s wallet has reaped the benefits. The NHL recently reported that it is on track to generate $2.9 billion in total revenue for the 2010-2011 season, a five percent increase from a season ago. This would be the fifth consecutive year that the league recorded growth in revenue. It also is an all-time record for the league.

The NHL has found success through creative advertising methods where most other leagues fail to go. Recently, the league renewed partnerships with Cisco, Bridgestone, and McDonalds and signed new contracts with Tim Horton, Hershey, Canadian Tire, and Discover.

One unique event the league runs is the Winter Classic, an outdoor hockey game played annually on New Year’s Day, draws a large fan base to the sport. This year’s classic

was watched by over 4.5 million viewers and featured two of the league’s most talented athletes, Sidney Crosby and Alex Ovechkin. Leading up to the game, the NHL aired a four part “24/7” documentary on HBO as well.

Attendance has also been a reason why revenue has increased. Though the league has only posted an average attendance increase of 0.2 percent this season, there are still more fans watching than seasons past. Out of the league’s 30 teams, 16 posted increases in attendance from the previous season, and 12 teams are averaging an attendance at or above 100 percent capacity.

The attendance increase has been marred by a handful of teams, most notably the New York Islanders, who recorded an average of just over 10,000 fans per game, a 17.6 percent decrease from the previous season. Another reason why the attendance increase is so low is because there is limited space in arenas.

For those who are unable to buy a ticket to watch their

favorite team, the NHL has done a tremendous job making games available on television. Currently, the league offers games on NBC, Versus, TSN, and CBC. All four of these networks have seen at least a six percent growth in ratings from the previous season. The NHL also offers a television package called “NHL Center Ice”, which allows viewers to watch up to 40 out-of-market games per week throughout the regular season and the first two rounds of the playoffs.

The league also obtains revenue through its league website, where fans can subscribe to its Game Center Live streaming service. Over the past year, the viewing on this service has increased 25 percent. The league has also made various efforts to market itself on social networks such as Facebook and Twitter.

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

THE STILLMAN EXCHANGE

Sports Business

TUESDAY, FEBRUARY 1, 2011

11

Subway adds Ohno to list of Olympic endorsers

By Scott Kim, Sports Business Writer Apolo Anton Ohno has signed with Subway, becoming the third Olympic athlete to endorse the sandwich chain alongside swimmer Michael Phelps and gymnast Photo courtesy of Getty Images

Ohno has won 8 Olympic medals since 2002.

Nastia Liukin, according to the Sports Business Journal.

Ohno is an eight-time Olympic gold medalist as an American short track speed skater and those eight medals make him the most decorated American Winter Olympian.

This means that Subway now has the most decorated American Winter Olympian and Summer Olympian, Michael Phelps, advertising with them.

Aside from his great success at the Winter Games, Ohno seemed to be a great fit for the sandwich chain because he was once overweight in his life himself, like their lead spokesman Jared Fogle, but was able to lose that weight and achieve the success that he has. Subway’s director of sports marketing Paul Bamundo said, “It just seemed like a really good fit for us on a number of fronts. We thought that

Vick inks first endorsement deal since return to NFL Brianna Young, Sports Business Writer Michael Vick has signed his first endorsement since his return back to the NFL. Even though he has been out of prison and back in the league for two years, Vick has finally been able to build his name back up. The Philadelphia Eagles quarterback signed a two year contract with a company called Unequal Technologies.

The company makes various types of shock blocking sports pads. Vick wore the pads for the first time in 2010 after he returned from a rib injury that caused him to miss three games. Vick wore pads from Unequal Technologies for the majority of his 2010 season, even wearing both the company’s thigh and shoulder pads.

The announcement that Vick signed his first endorsement was made on January 27.

Photo courtesy of Getty Images Vick is excited to once again endorse products.

Not much is known about what the contract entails but it is said to be a sizable contract. Unequal Technologies CEO Rob Vito and Vick are very excited about the deal, as it represents Vick once again becoming a marketable athlete.

Last month, Vick appeared in a commercial for a Philadelphia-area Nissan dealership.

He was not paid for the commercial; however, he was given use of a Nissan SUV. It was not too long ago that Vick was the highest-paid player in the NFL as a member of the Atlanta Falcons. He was widely considered one of the best players in the league. At the time, Vick had major endorsement deals with large companies like Nike, EA Sports, Powerade, Air-Tran, and Rawlings. After his dog-fighting conviction and prison sentence in 2007, the sponsors quickly severed their ties with him.

As Vick keeps working on repairing his image that is still tarnished in the eyes of many, the amount of brands looking to endorse him should continue to grow. Nike gave Vick a free pair of shoes that he could wear for the duration of the season, a controversial move to say the least.

The 2010-11 Michael Vick has made all the right moves both on and off the field, and his road to redemption is starting to lead him back to bigger and better things.

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

with Phelps, it was nice to have the most decorated Summer and Winter Olympians.”

The terms of the deal have not been released but Subway executives did say that they expect it to be long-term and that he has already shot a commercial for them. If it does in fact extend through the 2012 London Games, Subway will be able to use Ohno like they had used Phelps during the 2010 Vancouver Games.

According to International Olympic Committee rules, non-Olympic sponsors are not allowed to use competing athletes to advertise their products prior to or during the Olympic Games. The rules do not apply to the out of season athletes such as when Phelps was during the Vancouver Games, who is a summer athlete. This meant that he was able to appear in their ads during the Vancouver Games much like Ohno will be

able to appear in their advertisements during the upcoming London Games since he is a winter athlete.

All of that might be looking a bit far ahead though as Subway plans to release a commercial featuring Ohno within the next two quarters. As for whether or not Ohno’s decision to compete or not in the 2014 Sochi Games will effect Subway’s plans for him, Paul Bamundo says “I look at it as kind of like the [Michael] Strahan situation for us, where he got bigger and transcended [football] after his NFL career.”

If Ohno comes anywhere near Strahan’s post-playing career success, Subway has found another great spokesman.

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

The North Face set to endorse USSA

By Anthony Holesworth, Sports Business Writer The North Face, a popular winter and outdoor apparel brand, is in the process of signing a major endorsement deal with the United States Ski and Snowboard Association (USSA). Specifically, the endorsement deal (projected to be worth approximately $6.5 million over eight years) is for freeskiing, an activity that is growing rapidly in popularity in the United States.

Freeskiing is basically a branch of skiing that is a more extreme, less structurally organized take on the sport. While traditional skiing is straightforward and has many restrictions and guidelines, freeskiing is relatively unrestricted and is unique in that it involves a lot of tricks and jumps.

Freeskiing actually derives its style from that of the popular freestyle snowboarding scene.

Football, baseball, basketball and hockey all hold firm spots as America’s most popular sports. Furthermore, in terms of sports that are on the rise, soccer is the most commonly talked about up-and-coming sport in the United States. Rarely ever does one see an ESPN story or news blurb about freeskiing. However, believe it or not, this sport is growing at a rapid pace. Here is what Andrew Judelson, the chief marketing officer for the USSA, had to say, “You talk to anyone in the ski industry,

this [freeskiing] is where all the scale and the growth is.”

As a result of this considerable growth in popularity, the USSA has actually created an entirely new division of its organization designated solely for freeskiing. With this move, the USSA made it clear that freeskiing is not only growing, but deserves recognition and attention for its popularity.

This is where The North Face comes in.

The North Face is an outdoor gear brand from California. They are famous mainly for their winter jackets, but also for their gloves, snow pants, and other outerwear products. It is in response to freeskiing’s recent boost in popularity that The North Face has decided to endorse the sport. Furthermore, the deal more firmly solidifies The North Face’s position as a major brand for winter and outdoor apparel.

While $6.5 million is not a huge sum of money relative to other endorsement contracts in today’s sports world, nonetheless, this move is one small step toward a greater level of relevance and popularity for both freeskiing and snow sports as a whole. A big name sponsor could be just what the USSA needs to expand freeskiing even further.

Contact Anthony at anthony.holesworth@student.shu.edu

Power Balance, Kings reach arena sponsorship agreement

By Matt Bartel, Sports Business Writer After twenty-five years under the name ARCO Arena, the home of the Sacramento Kings will now be named Power Balance Pavilion starting on March 1, according to the Associated Press.

The gasoline franchise ARCO is a branch of the recently publicly embattled British Petroleum, and with negative connotations being associated with BP and its other brands like ARCO since the gulf coast oil spill of last year this move should not come as a surprise. However the Kings’ new deal is also with a company and brand that has become the subject of widespread ridicule.

The California based Power Balance reached a five-year deal with the Kings and hopes to “actively support the league’s comprehensive health and wellness program that encourages physical activity and healthy living for children and families through grassroots programs and events, products and promotional opportunities” reports the Associated Press. Even with these publicly announced intentions, Power Balance must

do all of this under a banner of scrutiny.

Power Balance sells a variety of bracelets and pendants all of which are available for purchase on its website, and the brand used to claim that it could help improve and better coordinate its users to have more “strength, balance and flexibility”. The report from the Associated Press claims that the company had to stop endorsing their product in this way because they lacked the scientific evidence to support such claims as true fact.

Yet Power Balance has the indirect support of many notable professional and college athletes. Under the “Press” tab of their web site, are several pages from U.S. Weekly to Sports Illustrated and The Sporting News showing athletes and celebrities from NBA superstar Kobe Bryant, and recent Heisman Trophy recipient Cam Newton to actor Ryan Reynolds and international soccer star David Beckham all wearing Power Balance products.

The company does not just show images of public figures endorsing their product to help validate them, with their Twitter page becoming a defense mechanism as of late. In one of these tweets the

Photo courtesy of CBSsports.com

The 25 year arena sponsorship agreement between the Kings and Arco is set to end in March 2011

company stated that “Power Balance admits products have been worn during the last World Series, NBA Finals, and Super Bowl champions!”

These efforts to silence critics show that the company is aware of the adversity it faces from a crowd skeptical of holistic

products. Regardless of public support, the Power Balance Pavilion era of Kings basketball will commence this season with or without credibility.

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

12

Sports Business

TUESDAY, FEBRUARY 1, 2011

THE STILLMAN EXCHANGE

Winter X-Games Inspire Olympic Games Yet Another Year

By Nick Costa, Sports Business Writer

Photo courtesy of Whistler Blackcomb freestyle

In an effort to continue to expand the Winter Olympics, the International Olympic Committee is close to adding ski halfpipe and ski and snowboard slopestyle to its next games in 2014 in Sochi, Russia.

The Committee is looking to the Winter X Games as a way to increase popularity in the Olympics and gain the attention of young skiers and snowboarders around the world. What started with the addition of halfpipe snowboarding to the last Winter Games has now moved to adding three more events, which seems to make a lot of sense to everyone involved.

Though often times overlooked, the Winter X Games has been a growing event that will be on display this winter in Aspen, Colorado. The International Olympic Committee can no longer deny the growing popularity of a sport that is best summed up by the red flowing hair and outgoing person-

Ski halfpipe is coming to the next Winter Games.

ality of Shaun White, an Olympic Gold medal winner himself. Though the new events go against what has normally been seen in Winter Olympics, it seems as though the I.O.C. can no longer overlook the crazy spins and amazing acrobatics of free styling skiing and snowboarding. Said I.O.C. sports director Christophe Dubi, “Ski slopestyle and ski halfpipe are the type of events that the younger generation practices every weekend in snow parks.”

The addition of these new events to the Winter Olympics in 2014 is expected to be announced by the end of April and is a huge step towards the improvement of the relationship between the Olympics and snowboarding athletes. In the past, snowboarders have been critical of the scoring systems and qualifying requirements of the Olympics, which tend to differ from those of normal events. However with these new events, professional snowboarders and free style skiers have something to prepare for, and the idea of winning Olympic gold in the sport that

Energizer’s “Light up the Night” receives praise from NASCAR

By Tony Bonkalski, Sports Business Writer

Though LiftMaster has no history with NASCAR, it will get exposure on McMurray’s car and also have rights to feature both

Energizer and NASCAR agreed to a promotion deal in which the battery brand plans on illuminating the Charlotte Motor Speedway during NASCAR’s 2011 Sprint All-Star Race.

As a part of a fan promotion, Energizer will provide all fans that enter the race a mini flashlight that is powered by their batteries. The flashlights are given to the fans for a special purpose: prior to the start of the race, the speedway will turn all of its lights off and the fans will then turn their Energizer fueled flashlights in an effort to light up the entire speedway solely on the mini flashlights.

The promotion is titled “Light up the Night” and plans to be a jumpstart for NASCAR’s fan hood. The race draws in around 100,000 spectators. Energizer and Charlotte Motor Speedway only agreed to a one-race deal, in which the terms were not available.

Charlotte Motor Speedway’s recent partnership with Energizer is believed to be a result of the relationship that Energizer has with the company Earnhardt Ganassi Racing. Energizer mainly dealt with various paint schemes for the Ganassi automobiles in effort to bring more popularity to the company.

In a sport where sponsorships are everything, NASCAR is excited to see such actions.

“It’s important that sponsors who have been affiliated with a team continue to see the value of NASCAR fans and invest in different NASCAR platforms, this is a great example of that,” said Steve Lauletta, President of Ganassi Racing.

Along with the promotion with Energizer, there has been more news buzzing around the NASCAR circuit: Ganassi Racing had two new sponsors entering the sport for the 2011 Sprint Cup season. The two sponsors are going to be LiftMaster and Widia.

LiftMaster is going to be an associate sponsor and Widia is going to be a one-race primary sponsor, both for Jamie McMurray’s No. 1 car.

With forty percent of NFL football fans being of the female gender, sales in women’s apparel have increased significantly in recent years. The question, now, is what are all these women buying?

Photo courtesy of NFLShop.com Troy Polamalu’s jersey ranks No. 1 with women.

Thrashers sue King & Spalding for “egregious errors”

By Tony Cramond, Sports Business Writer

Aaron Rodgers jersey next Sunday, February 6, 2011.

The Dallas Cowboys rank fairly high on the women’s list as well. Three players remain in the top ten of best selling women’s jerseys. Miles Austin comes in at spot number seven, while Tony Romo and Jason Witten ring in at nine and ten.

Even Brett Favre has a pretty comfortable spot on the women’s list, at number eleven. Even the males are fond of him, placing him at number 12, which may come at a surprise to most due to all of Favre’s drama in recent years.

No matter what reason the females support football for, it is clear that they are certainly a big enhancement to any player’s marketing.

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

Contact Tony at anthony.cramond@student.shu.edu

Photo courtesy of Getty Images Energizer has partnered with NASCAR to a create“light the night” deal

McMurray and his vehicle in their advertising schemes. LiftMaster’s main line of business is producing residential car door openers and commercial door operators.

Widia is a new brand developed by Kennametal and will be the primary sponsor on the Sprint Cup race in Martinsville, Virginia on April 3.

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

The answer is jerseys. Jerseys that are altered to fit women’s shapes have become increasingly popular. Both genders tend to buy jerseys of their favorite teams, with their favorite player’s name on the back.

According to NFLShop.com, the most popular women’s jersey sold was the Pittsburgh Steelers’ Troy Polamalu. Coincidentally, Polamalu was also the most popular men’s jersey sold. The most popular following Polamalu for women are Peyton Manning and Drew Brees, which are also rated pretty high on the men’s list.

The biggest difference between women’s and men’s jersey is Aaron Rodgers, ranked fourth on the women’s list and only seventh on the men’s list. All the success Rodgers has had in the playoffs and his recent win over the Chicago Bears, earning the Packers a spot in Superbowl XLV, explains the new admiration in this player.

We will be sure to see much of the female population of football fans sporting an

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

On January 21, the Atlanta Thrashers filed a lawsuit against the law firm of King & Spalding.

The lawsuit was filed because the Thrashers ownership group, called the Atlanta Spirit, which also own the Atlanta Hawks, says that the King & Spalding law firm made, “egregious errors that caused us to be tied up in litigation for five years and cost us an enormous amount of money, time and anguish.”

The King & Spalding law firm was supposed to negotiate an appraisal process that would give the disgruntled shareholder, Steve Belkin, a "fair and reasonable" value while protecting the other co-owners' interests. But the lawsuit claims that King & Spalding fouled up its responsibilities among other things, a loose definition of “fair market value” that gave Belkin and inflated stake in the company.

So instead of buying out the interest of Belkin in the fall of 2005, the Atlanta Spirit was tied up in ligation for five years, and the operations of the Atlanta Thrashers and Hawks were impaired. These losses have not helped to end the speculation that the Thrashers are looking for a way out of Atlanta. Numerous reports have come from Canada saying that the Thrashers are on the verge of relocating to Winnipeg, Hamilton, or Quebec City. These are more hockeyfriendly markets compared to Atlanta.

The owners have repeatly said that they have no desire to move the team and they have been trying to find potential investors for the past two years. They have been hoping to find interest from investors who are willing to keep the team in Atlanta.

However, no new investors have come forward.

“Regardless of the lawsuit that has been filed, we have always been committed to finding solutions that keep the Thrashers here in Atlanta," co-owner Michael Gearon stated.

For hockey fans in Atlanta, hopefully Gearon is telling the truth. The NHL would of course want to have a team in one of the major media markets in the United States, but it does acknowledge that something needs to be done to change the franchise.

NFL Jerseys Score Big With Female Fans

By Kayla Mjaatvedt, Sports Business Writer

they love is something many are excited out.

The addition of these events solidifies and somewhat validates what the Winter X Games are all about, and provide hope for young skiers and snowboarders out there that they can one day achieve Olympic glory.

THE STILLMAN EXCHANGE

Domestic News

TUESDAY, FEBRUARY 1, 2011

13

Ob a m a’s St a t e of t h e U n io n A d d res s Win s S o m e Pu b lic A p p rova l

By Amanda Genabith, Domestic News Writer

On Tuesday, January 25, President Obama delivered his third State of the Union address to the United States of America.

The theme of this speech was Winning the Future. He highlighted ways to encourage students to succeed in school, specifically in the sciences and math, increasing the use of clean energy, and building faster trains and more infrastructure.

“We need to out-innovate, out-educate and out-build the rest of the world,” he said.

“We have to make America the best place on earth to do business. We need to take responsibility for our deficit and reform our government. That’s how our people will prosper.”

President Obama also discussed increasing protection on the border, revising of government regulations, reforming the health care bill, freezing annual domestic spending for the next five years as a means to reduce our deficit, making the tax code easier for individuals, and America’s efforts overseas to give the nations back their countries and to remove our soldiers.

According to a CBS News poll, of those who watched Obama’s speech last Tuesday, 91 percent approved of the proposals the president made. This is higher than last year’s 83 percent approval. The majority of viewers—82 percent— approved of the president’s plan for the economy, compared to 53 percent last year.

Many commentators expected that this

Photo courtesy of Reuters

President Obama’s State of the Union address drew praise, according to certain polls, but strong disapproval from some Republican figures.

speech was supposed to be a pivotal point in Obama’s presidential career, but for them, it fell short. For most of them, compared to the speech given in Tucson, this speech did not have the same loftiness that his other speeches have had.

There are even comments now that the State of the Union address was not entirely original. Alvin Felzenberg, an American historian, noted that there were a couple of statements within the 2011 State of the Union that were remarkably similar, in words or meanings, as other famous speech-

News Briefs Rahm Emanuel Eligible for Mayoral Race After several weeks of debate concerning the status of his residency, Rahm Emanuel is now eligible to appear on the ballot for mayor of Chicago. Several believed that by moving to Washington D.C. in order to serve as President Obama’s Chief of Staff, Emanuel technically gave up his Illinois state residency. Illinois law states that all mayoral candidates must reside in the state for at least a year before Election Day. Although Emanuel worked in Washington, he argued that owning a house and paying taxes still makes him a citizen of the state. Before reaching the Illinois Supreme Court for decision, Emanuel’s case was considered by the Illinois Appellate Court, which rejected his bid for election on the basis that the politician did not physically live in the state at least a year before deciding to run.

NASA Remembers Challenger Flags flew at half-staff at NASA centers nationwide on Thursday, January 27, in remembrance of the Challenger disaster, which marked its 25th anniversary this year. A memorial event was held at Kennedy Space Center, where officials, former astronauts, family and friends of the victims gathered to mourn. The widow of the Challenger’s commander encouraged the crowd gathered there to “boldly look into the future” in space and science education.

Boston Company Helps Customers Fulfill Resolutions The New Year inspires many Americans to “get fit.” A new company in Boston wants to help them do that, but this is not your average gym membership. Gym-Pact, as the company is called, works with local vendors to offer discounts in exchange for a weekly workout commitment. If a consumer attends the gym as promised, they receive reduced rates. Skip a workout, and you are penalized $10 per day. The concept belongs to two 2010 Harvard graduates, who were inspired by a behavioral economics class.

According to one of its cofounders, Geoff Oberhofer, the company will only take profits from referral fees and revenue-sharing programs, because they “don’t want to profit off of other people’s failures.”

es of Presidents including Woodrow Wilson, Dwight Eisenhower, Ronald Reagan, and even Britain’s Prime Minister Margaret Thatcher. Felzenberg felt that the State of the Union was plagiarized. Other commentators said that the speech was not plagiarized but rather paraphrased.

At this year’s State of the Union address, Congress decided to change their seating arrangements. Instead of each member sitting on their respective sides and the middle aisle dividing the two parties, the members of Congress chose “dates,” usual-

ly from the opposite party, to sit with. In the run up to the speech, this elicited many comparisons to a high school prom.

Though some suggest it was merely symbolic, the intermingling of political parties was encouraging to Americans. A CBS poll said 62 percent of Americans expect more bipartisan efforts than in previous years. But a Gallup Poll showed that about half of those surveyed think the government will remain about the same with the Republicans in control of the House.

Another oddity with this State of the Union address was that there were two responses from the Republican Party. The official Republican response was made by Paul Ryan (R-Wis.) and the other by Michele Bachmann (R-Minn), who spoke for the Tea Party Republicans. They both believe the government should not be the one to raise up America, like the President stated, but rather the market and the people themselves.

Sarah Palin, who has remained quiet since the shootings in Tucson earlier this month, was also critical of Obama’s speech.

“Our country’s future is at stake, and we’re rapidly reaching a crisis point,” she said. “Our government is spending too much, borrowing too much, and growing too much. Debt is stifling our private sector growth, and millions of Americans are desperately looking for work.”

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

Doctors Hopeful for Giffords’ Recovery

By Padmavathy Sonti, Domestic News Writer Day after day, Rep. Gabrielle Giffords’ condition continues to almost miraculously improve.

Recently, Rep. Giffords (DAriz.), 40, was transferred from the Memorial Hermann-Texas Medical Center to The Institute for Rehabilitation and Research (TIRR) Memorial Hermann.

“Since arriving at Memorial Hermann-Texas Medical Center on Friday, January 21, Congresswoman Gabrielle Giffords has made strong progress in the Neuro ICU,” the hospital said in a statement. “Her doctors upgraded her condition from serious to good and determined that she is ready to move to TIRR Memorial Hermann.”

After being flown from Tucson to the Texas Medical Center, Rep. Giffords was placed in the intensive care unit due to concerns about fluid buildup in her brain. A small drain was used to help remove excess cerebrospinal fluid to prevent further buildup. Doctors assure that it is common for those who suffer from a traumatic brain injury to experience such fluid accumulation. A few days later, the fluid was contained and the drain was removed.

“Since Gabby arrived last Friday, we have noticed daily improvement in her neurological condition,” com-

mented Dong Kim, chief neurosurgeon. “In terms of recovering from brain injuries, this is lightning speed.”

Still, doctors believe that it may take Rep. Giffords months to recover.

“I’ve seen her be interactive, appropriate with her family and the staff [a]round her,” Kim said. “She's just making great progress.”

On Wednesday, she was transferred to TIRR Memorial Hermann, where she will begin receiving physical, occupational, and speech therapy.

Rep. Giffords’ husband, astronaut and U.S Navy Captain Mark Kelly, remains optimistic and hopeful. “She will make a full recovery,” he stated. “She’s going to come back stronger and more committed than ever.”

Although the Congresswoman is on the road to recovery, she will have to overcome many obstacles, resulting from the wound in her brain. The injury affected the left hemisphere of her brain, which controls speech and vision among other functions. “We’re working on conditioning [and] strengthening her range of motion,” stated Gerard Francisco, TIRR’s chief medical officer.

Currently, a breathing tube has been attached to Rep. Giffords’ neck even though she can breathe on her own and swallow safely. Since doctors are unsure of Rep. Giffords’ speech capabilities, they also plan to

insert a valve to the breathing tube in order to permit her to speak.

On Tuesday, President Obama began the State of the Union Address by paying tribute to Rep. Giffords and the other victims of the Tucson tragedy. “As we mark this occasion, we are also mindful of the empty chair in this Chamber, and pray for the health of our colleague - and our friend - Gabby Giffords,” stated President Obama in the opening remarks. “Tucson reminded us that no matter who we are or where we come from, each of us is a part of something greater.”

“I have a personal connection with her and so it was very tearful for me,” Tracy Culbert, one of Rep. Giffords’ nurses, said. Culbert was present in the chamber when the president delivered the State of the Union Address. “It shows how much they care for her and they’re wanting her back and so that chair represents the fact that she’s going to be back one day.”

On January 8, during a local Congressional event, Rep. Giffords was shot in the head by 22-year-old Jared Loughner. While twelve were injured, six individuals were killed.

Loughner has been indicted for three counts of murder.

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

14

TUESDAY, FEBRUARY 1, 2011

Domestic News

Florida Representative Wants to Grade Students’ Parents

Representative Kelli Stargel (left) of the Florida House of Representatives proposed a bill that grades parent involvement with their children.

By Candice Woods, Domestic News Writer Parents in Florida may be surprised to see a new grade in their child’s next report card.

The new grade will not grade the child’s school performance but the parent’s performance.

If Florida’s HB 255 bill is passed, parents with children in kindergarten to third grade will have their involvement in their child’s education graded by their child’s teacher.

The bill was proposed earlier this month

by Representative Kelli Stargel, a member of the PreK-12 Appropriations Committee, Higher Education Appropriations Subcommittee and Education Committee in Florida’s House of Representatives.

HB 255 is meant to encourage parents to take an active role in their child’s education.

Stargel says, “We have student accountability, we have teacher accountability, and we have administration accountability. This was the missing link, which was, look at the parent and making sure the parents are held accountable.”

The bill proposes that teachers will grade the parents’ involvement with their child’s education in several areas.

The three criteria teachers will grade parents on are parents’ response to requests to teacher-parent communication, their children’s class work performance and attendance record, and their children’s physical preparation for school.

The bill defines physical preparation for school as having “the child being at school on time, prepared to learn after a good night’s sleep, and have eaten a meal.” Stargel considers these areas to be basics of parental involvement in their child’s education.

Teachers will grade parents by making personal observations and reviewing school records. The grading scale ranges from satisfactory to unsatisfactory to needs improve-

Weird Wintry Weather Pounds 70 Percent of the Country

By Lejla Radoncic & Morgan Tornetta, Domestic News Writer and Editor

Photo courtesy of myfloridahouse.gov

ment.

Parents have nothing to fear if they receive a “needs improvement” mark. The child will not be removed from the home if the parents receive a poor mark.

Stargel believes that a failing parenting grades are supposed to encourage the parents to take a more active role in their child’s education through pointing out how the parent could improve. If the parents do not agree with the grade that they are given, parents will have the ability to petition.

Opinions are divided over Stargel’s bill.

CNN education contributor Steve Perry said, “There is nothing in any teacher’s training that would put them in a position to be able to effectively judge the parenting of one of their student’s parents. If getting a bad grade was the impetus for people doing things right, then I would have an entire school of kids getting A’s.”

Theresa Hill, a kindergarten teacher in Winter Haven, Fla., said, “We grade our children based on their performance. Why should the parents be any different?”

Another teacher from Winter Haven, Sharon Francis, feels that it will not impact parents who are already inactive in their children’s education. “It’s not going to faze them, whether you put ‘unsatisfactory.”

HB 255 is not the only education reform bill currently circulating in Florida regarding accountability. Governor Rick Scott is expected to pass a new version of Senate Bill 6, which impacts teacher accountability.

Senate Bill 6 proposes that teachers will be paid based upon student achievements and will not include an option for tenure in new teacher’s contracts. Former Florida Governor Charlie Crist vetoed Senate Bill 6 last April.

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

THE STILLMAN EXCHANGE

Start thinking about investing in a high performance snow blower. The weather seems to be out of control as the fifth major snowstorm wallops the northeastern U.S., interrupting businesses and people’s lives once again.

Tearing through with lightning and thunder, mounds of wet snow, high winds and below freezing temperatures, a blizzard created a nightmare Wednesday and Thursday of last week.

New Jersey State Senate President Stephen Sweeney declared a state of emergency and asked residents to keep off the roadways and stay at home if at all possible. Hundreds of flights were delayed or canceled.

In New Jersey, New York and Washington D.C the snow prompted officials to close schools. Thousands of people in D.C. were left without power.

The New Jersey state police reported more than 500 accidents. In Maryland, Delaware and New York, at least 6 deaths were blamed on the snowstorm.

It’s not only the Northeast that’s been experiencing unusual winter weather. According to the National Weather Service’s estimations, 70.9 percent of the country has some snow on the ground. Snow in the Northeast, the Rocky Mountain states and even high elevations in Hawaii is not outside the norm. What has weather officials scratching their heads is the snowfall in southern states.

“The Southern states don’t typically get significant snow amounts through the year,’ NWS public affairs officer James Peronto said. “It takes a special kind of weather scenario to allow that to happen.”

All the way to the north in Greenland and Canada, temperatures are running anywhere from 15 to 20 degrees lower than average. In Iqaluit,

capital of Canada’s Nunavut territory, officials were forced to cancel the city’s snowmobile parade. Deputy Mayor David Ell says they look at snowbound Americans and say “‘That’s where all our snow is going!’”

Scientists believe that the immediate cause of the strange winters is a shift in the typical pattern of atmospheric circulation. Generally, freezing Arctic air is kept in the Arctic by a “fence” caused by the circulation. In the last few years, however, this “fence” has weakened, allowing the cold air to flow down south while warm air moves north.

In an interview with NPR, Dr. John Wallace, professor of atmospheric sciences at the University of Washington, said that it may still be too early to determine definitively if global warming is a factor. “I would never associate an event in as short a period of time as a single winter, or even a single couple of years, with global warming, which is a very slow process that’s really evolving on the timescale of decades and longer.”

Wallace says that the circulation pattern is most visible during the winter months, particularly from midDecember through mid-January. He hesitates to call the phenomenon a new climate trend, however.

Regardless, the snow is causing major logistical problems for those who have been hit by it. Piles of snow have become so tall that residents are wondering where to put them. New York City’s Mayor Bloomberg warned residents not dump snow on the street, as it causes dangerous road conditions. A fine would be issued for those in violation of the order.

Contact Lejla at lejla.radoncic@student.shu.edu Contact Morgan at morgan.tornetta@student.shu.edu

Former Guantanamo Bay Prisoner First to Be Tried in Civilian Court

By Liam Brereton, Domestic News Writer

A United States federal court sentenced Ahmed Khalfan Ghailani to life in prison without parole on Tuesday, January 25.

Ghailani, a former al-Qaida operative, has been contained at the Guantanamo Bay detention center since 2004. He faced charges for a 1998 attack on the U.S. embassies in Dar es Salaam, Tanzania and Nairobi, Kenya.

The attacks, perpetrated on behalf of Al-Qaida, injured thousands and killed at least 224 individuals.

U.S. District Judge Lewis A. Kaplan tried Ghailani in a Manhattan district court and sentenced him to the maximum punishment at a federal, super maximum security prison in Colorado. The court’s decision makes Ghailani the first former Guantanamo inmate tried in the civilian court system.

There are several factors, however, that cloud this trial. First, evidence is unclear as to how willing Ghailani was to perform these terroristic acts.

Second, there was a period of time in which he was in custody of the CIA, but the records of that time are classified.

Despite these indecisive factors complicating the proceedings, they did not act

as a complete road block.

Ghailani’s lawyers requested leniency on the grounds that the CIA mistreated their client during interrogations. His lawyers also claim that Ghailani was convinced by his friends to participate in the attacks, later regretting his actions after realizing the damage he caused. However, Lewis rejected their claims, stating that any torture Ghailani endured is not comparable to the suffering he has caused his victims.

“It was a cold-blooded killing and maiming of innocent people on an enormous scale,” Judge Kaplan said. “The very purpose of the crime was to create terror by causing death and destruction.”

Although the defendant appeared satisfied with his fate, his lawyers indicate they will maintain their conviction that Ghailani is innocent and will appeal his case.

Ghailani was born and raised in Tanzania, but fled to Pakistan after the attacks. He participated in terrorist training camps and rose to a position near to Osama Bin Laden. He was finally captured in Pakistan after a fourteen hour shootout against Pakistani officials.

Contact Liam at liam.brereton@student.shu.edu

THE STILLMAN EXCHANGE

TUESDAY, FEBRUARY 1, 2011

International News

Berlusconi’s Latest Scandal Threatens Government

By Kelsey Mahan, International News Writer The Prime Minister of Italy, Silvio Berlusconi, has recently been accused of hiring prostitutes including two seventeen year old girls on separate occasions.

Prostitution is legal in Italy; however, it is not legal to hire prostitutes under the age of eighteen. Hiring an underage prostitute is an offense that can be punished by up to three years in prison. Berlusconi has denied that he has ever paid for sex.

NPR says one of the prostitutes allegedly hired by Berlusconi denies that she ever had sex with him, but admits he has given her “7,000 euro to help her out financially.”

Police are investigating Berlusconi’s involvement with underage prostitutes and The New York Times claims that they have wiretap evidence of one of the prostitutes admitting her involvement with Berlusconi.

Police documents also say Berlusconi has given underage girls jewels and other gifts in exchange for sex. He is denying the legitimacy of these investigations.

Time Magazine states that “Berlusconi denied the allegations, arguing they were politically motivated and scandalous.” The

Prime Minister says he will not resign; he believes the charges against him are media attacks and not a legitimate criminal investigation.

Berlusconi has been criticized by the Italian President and the Italian people over these allegations, while Vatican Secretary of State Cardinal Tarcision Bertone, in a singularly negative statement declared the Church’s agreement with Italy’s President, Giorgio Napolitano (a former Communist), who has called for “greater sobriety and wisdom” among public officials .

The ire from specifically religious sources has grown in the past month to the point where foreign dailies have begun questioning the viability of Berlusconi’s government.

Italy’s highest court has removed Berlusconi’s immunity from prosecution, putting him in danger of facing criminal charges and he “could be forced to call new elections if any one of the allies in his shaky coalition pulled out.”

Contact Kelsey at kelsey.mahan@student.shu.edu

Continuing Unrest in Tunisia; Arrest Warrant for Former President

By Ashish Vaid, International News Writer Within weeks, the African nation of Tunisia turned from popular tourist destination with a stable government to a maelstrom of political unrest, protests, and insecurity. The culmination of this chaos resides in the ouster of its dictator of 23 years, and the establishment of an interim government which itself now faces opposition.

The interim government has issued an international arrest warrant from Interpol for the former Tunisian President, Zine El Abidine Ben Ali. Accusations include illegally taking money from the nation and extorting the country’s citizens with mafialike tactics.

The government also seeks several of Ben Ali’s relatives and his wife Leila Trabelsi. The families of both husband and wife were said to have a stake in Tunisian banks, airliners, car dealerships, internet providers, radio and TV stations, and other large retailers.

The unrest was instigated last December by a young, unemployed man who was prevented from selling vegetables on the streets by local officials. This spawned further protests concerning employment in the town, which is one of the poorest regions in the country.

The demonstrations soon spread to neighboring towns after the police responded with gunfire on the protestors. The citizens were drawing on long held frustrations with the ruling party’s corruption and the suppression of political freedoms. The Tunisians seemed to have tolerated the past 23 years of restricted political rights and corrupt officials in return for the promise of steady economic growth.

The protestors consist of large numbers of unemployed graduates, frustrated with lack of opportunities and the growing disparity between them and the ruling class.

They came together after circulating rallying cries over social networking sites.

Before fleeing the country, Ben Ali had tried unsuccessfully to appease the rioters by releasing jailed protestors, promising to create 300,000 jobs, promising to tackle rising food prices, and allowing more social freedoms.

He also claimed to not seek reelection in 2014. These promises were not enough as the president watched his long standing regime falling apart by the hands of the protestors.

An interim government has been established and the Prime Minister, Mohamed Ghannouchi, has brought in members of the opposing political party in efforts to create a unified government until official elections are held.

However, this interim government has instead been condemned because of its domination by former members of Ben Ali’s administration. The protestors want confirmation of the interim government’s commitment to bring vast economic and political changes.

In addition to the Interpol alert, Swiss authorities said they have frozen more than 10 million dollars in assets belonging to the Ben Ali family.

Canadian officials have also said they will comply with the Tunisian government’s request to extradite the brother-inlaw of the former president, who is in the country possibly trying to seek asylum.

After 23 years in power, the former president fled the country on January 14, following weeks of anti-government protests and clashes between the citizens and police. He is currently in Saudi Arabia after being denied entry into France.

Contact Ashish at ashish.vaid@student.shu.edu

15

Egyp t’s N ew Vo ice, Wh at is it S ay in g ? ...continued from page 1 The internet does not fuel democracy just because it provides citizens the medium to insight individualism. In fact, social media sites have been used as much to organize protestors as to destroy them.

Police and governments can access these open, public sites in order to gain access to users divulging their entire lives. The published information can all be used against them.

Thus, President Mubarak’s alleged decision to shut down the internet was especially foolish. Not just because it illustrated his fear, but also because he did not harness the power of the internet to reach out to neutral citizens. Instead, his actions spelt out why Egypt is due for another leader.

But what are these protests all about? We are currently witnessing a pivotal moment in which not only Egyptians, but all people across the Middle East, are realizing a somewhat nostalgic notion of a common Arab identity while understanding that all citizens are worthy of a decent life.

As inequalities have existed throughout the history of the Arab world, why has it become a hot button issue now? The successes externally and failures internally may have caused the social uprising. When the world economy went sour and the corrupt government could not even provide positive guidance for bread-and-butter issues, citizens just had enough.

Egypt may have enjoyed record growth in recent years, but very few of the citizens felt the wealth. As a result of a rigid social structure, the majority of citizens feel trapped; the rich continue to grow richer while the poor grow poorer. Although the situation began to look helpless, strong Egyptians found salvation in coming together for the common good in order to end the destructive status quo fueled by government officials.

Most of the voices spoke out against the Egyptian government, but that does not mean that protestors are leaving out the influential United States. The United States needs to be wary of offering support to either side of the conflict. Since Egypt is America’s key ally in controlling the Suez Canal and all other Middle-Eastern conflicts, publicly articulating support for either the protestors or Mubarak could cause political unrest.

Within Egypt, citizens are largely critical of the White House’s response to the riots, and the continued support of Mubarak.

Egypt is armed with a new voice, but what is it really saying? Sure, it is screaming for Mubarak’s resignation and equality for all Egyptians, but one can certainly conclude that it is along the line of “I’m as mad as hell and I’m not going to take this anymore!”

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

Mo s cow A irp o rt Bo m b in g Kills D ozen s

Photo courtesy of Hurriyet Daily News Russia mourns those lost in Moscow’s airport bombing.

By Stephanie Dunham, International News Writer Thirty five were killed and a hundred and thirty more civilians injured when a suicide bomber detonated himself at a Moscow airport on January 24.

The bomber set off explosives in the international arrivals hall of Domodedovo, Moscow’s largest of three airports, where almost 290,000 international officials travel through in a year.

The bomber is thought to have been carrying around fifteen pounds of explosives and was in an area of free range where people who are not passengers are allowed to stand. Russian daily Kommersant reported on Saturday that pieces of a cellular phone were found at the blast site.

A frequent traveler from Briton and witness to the bombing, Mark Green, said that the airport was the busiest he has ever seen with thousands filling the area and as he travels through the airport at least once a month.

He witnessed tons of people running frantically out of the terminal, some covered in blood, and told the BBC that could feel the ground shaking under him from the explosion, while pictures taken by cell phones immediately following the bombing shows the arrivals hall filled with smoke and bodies strewn across the ground.

President Medvedev states, “There had been “clear security breaches,” and for this reason he has placed blame for the attacks on the airport. Medvedev vowed that the people behind the bombing will be found and punished.

Medvedev may be concerned that other nations will view Russia as unsafe for travel, negatively affecting their image for future international events such as the 2014 Winter Olympics. Medvedev demanded that the airport immediately be searched for any evidence or clues.

According to Russian media, there are three suspects so far for the bombing and the airport was shut down immediately after it. Not only was it shut down, but the Moscow police were at high alert because it was said to be a terrorist attack.

Medvedev postponed all of his travel and called an emergency meeting to try and solve this bombing issue and discover who was behind it. Warnings of an attack were reported to Russian security services a week before the bombing occurred, however, authorities failed to prevent the explosion.

As of press time, no group had claimed responsibility for the bombing.

Contact Stephanie at stephanie.dunham@student.shu.edu

16

TUESDAY, FEBRUARY 1, 2011

THE STILLMAN EXCHANGE

International Business

UK Establishes Booze Price Floor to Cut Down on Alcohol Abuse Photo courtesy of packagingeurope.com

By Tristan Hugo-Webb, International Business Writer In two countries that love their pubs and their pints of lager, ministers in the ruling coalition government have announced plans to create a price floor or minimum for alcohol in England and neighboring Wales.

The proposed law would prevent shops and bars from selling drinks for less money than the duty, plus the VAT, the British equivalent of the sales tax.

However, health campaigners argue that the new government measures don’t go far enough. Professor Ian Gilmore, of the Royal College of Physicians, said in an interview to the British Broadcasting Corporation (BBC), “It’s a step in the right direction but I have to say, it’s an extremely small step. It will have no impact whatsoever on the vast majority of cheap drinks sold in supermarkets.” Under the scheme, the minimum price of a weak lager or beer will be around 38 pence (or 60 cents) and

Visit of Chinese President Hu Jintao Signals Promising China-U.S. Future ...continued from page 1 The Chinese firm and the local American banks signed an agreement to pay $140 million for an 80 percent stake in the Bank of East Asia, which already has thirteen branches in New York and California.

This deal is just another indication that China is rapidly expanding. It is good news for both the U.S. and China as they work together to strengthen commercial ties.

In today’s world, it is difficult to compete with other strong countries and stay ahead. The key is allowing the economies to work together and use each other’s strengths advantageously.

America and China are two very different countries, both culturally and economically. The two countries have had publicly open differences in the past, especially with trade involving North Korea and Internet censorship.

But President Hu’s visit showed the world that America and China are looking toward a future of working together, and improving both economies.

The media portrayed the Chinese president as an influential player on the world stage, and the visit was truly monumental as the leaders of two superpowers of the world met to amicably strengthen business ties.

China is the future of trade and business, and America is only going to gain from this venture.

Contact Laura at laura.russo@student.shu.edu

The line of beers produced by Fuller’s, a London-based brewery, which will be affected by the pricing regulations

the minimum price for a liter of vodka would cost just over 17 dollars.

The new proposal by the Liberal Democrats and the Conservatives in the House of Parliament comes after research conducted by the University of Sheffield, which estimated that simply raising the price of alcohol to a price floor of 80 cents would result in 3,000 fewer deaths and 41,000 fewer cases of chronic illness after

10 years. According to the National Health Service (NHS), alcohol-related deaths have more than doubled in the past 16 years, currently causing 8,000 deaths each year.

While health campaigners are dissatisfied with the minimal increase, the Wine and Sprit Trade Association, the main alcohol lobbying group within the United Kingdom, has stated that the new minimum price is a “pragmatic solution” that makes

cheap alcohol, a favorite of England and Wales’s young people, slightly harder to buy, but leaves moderate alcohol drinkers unaffected by the price changes.

Despite the main lobbying group’s relative satisfaction with the proposed law, individual companies, like beverage giant Diageo, have stated that the government should, “concentrate on raising awareness of the dangers of alcohol misuse,” and more on enforcing existing licensing laws.

The proposed price floor is not the first attempt to create a minimum price in the United Kingdom. The Scottish Parliament rejected a minimum price floor last year because lobbyists argued that it would penalize responsible drinkers and could be illegal under EU competition laws, which are among some of the strictest in the world.

Contact Tristan at tristan.hugowebb@student.shu.edu

In the Wake of Massive Flooding, a Tough Road Ahead for Australian Economy

By Nicole Blackford, International Business Writer As Australia deals with one of the biggest tragedies in decades, worries arise about the economy in the coming year.

The flooding began in late December when heavy rains persisted in the state of Queensland and caused rivers to overflow.

The floods eventually struck the states of Victoria, New South Wales, and Tasmania.

The floods are believed to have spanned over an area that is equivalent to the size of Texas.

Many people were forced out of their homes and office buildings were destroyed.

In total, the flood is estimated to have affected as least 3 million people throughout the country.

Over 1 billion dollars worth of claims have been submitted by policy holders to insurance companies. In comparison to this dollar amount, the total estimate for the rebuilding of Queensland remains at a high of almost 20 billion USD. Treasurer Wayne Swan expects that

the coal industry will take the biggest hit as a result of the floods. The agriculture industry will also suffer from all the flooding. Both industries are expected to contribute to economic contraction in the first quarter of 2011.

In response to the crop damage, supermarket companies like Coles and Woolworth have announced that they will not resort to importing fruits and vegetables unless absolutely necessary. This, however, will lead to an increase of prices in the produce market.

With economic growth moving slowly as a result of the devastating floods, interest rates are expected to stay at 4.75 percent. However, according to an article published in the Wall Street Journal, the central bank will hold a policy meeting this coming week to discuss the current economic standing and the potential increase in the interest rate.

Queensland’s Treasurer Andrew Fraser has also announced that he will be releasing the budget outlook for the first half of 2011. He said there will be no new taxes

but that it is expected that the first half of the year will most likely show economic contraction.

According to the Sydney Herald, a new relief program intended to help homeowners without insurance is being criticized. The program will grant $5,000 to uninsured homeowners but they must qualify based on their salary. Singles who earn more than $36,600 or couples with a combined income of $48,400 will not qualify for this grant. Unfortunately, this excludes many families who earn too much to qualify but not enough to rebuild their homes on their annual incomes.

The next couple months will show Australia’s ability to bounce back and rebuild after what is being called the biggest natural disaster in its history.

Economists will be meeting consistently to find strategies to promote not only economic stability, but now economic growth.

Contact Nicole at nicole.blackford@student.shu.edu

Bharti Airtel Brings 3G Services to India

By Rebecca Townsend, International Business Writer India’s largest telecommunications company, Bharti Airtel, announced the launch of its 3G service in India on January 27. This service initially launched successfully in Karnataka, and subsequently in Chennai and Coimbatore. Airtel intends to launch 11 other 3G licenses in India by March of this year.

The services available on Airtel’s 3G network include high speed data download, live TV, high-speed broadband, and video calls. Sanjay Kapoor, CEO of Airtel, stated “It is indeed the start of a new era when 3G services in India roll out on Airtel’s network… India is ushering in the domain – though later than most of the world – but no doubt we will catch up at a much faster speed. 3G is much more than a technology migration – it is a transformational shift – and Airtel’s focus would be to bring to its customers an enriched user experience on the back of a world class delivery net-

Photo courtesy of Bharti Airtel

Bharti Airtel officials celebrate the introducton of 3G at a company launch party

work.”

The service will be accessible through a state-of-the-art high speed HSPA network, and can be conveniently accessed on existing SIM cards and on laptops.

Combined with the fact that Airtel offers a variety of personalized and easy to understand plans, including pay-as-you-go and flexi-shield, it is evident that the service will be easily accessible to all kinds of users.

To add to this ease of use, Airtel implemented data usage alerts to prevent “bill shock,” and an “internet usage calculator” to help users monitor their internet usage to choose the appropriate 3G plan.

The launch of this service is a huge milestone in increased delivery of the mobile internet to the people of India.

Airtel is shepherding in a new era by enriching services in utility, health, and commerce. Already 2 billion people worldwide are connected to the internet, and it is vital for India, as a leader in the developing world, to keep pace with technological developments.

By focusing on relevant services and the user experience, Airtel’s personalized and efficient 3G plans are bound to rapidly penetrate the Indian mobile technology industry, and will be essential in guiding India into the internet age.

Contact Rebecca at rebecca.townsend@student.shu.edu