Edition, July 11, 2001, Page 1
GROUP TUNES INTO $1M PIONEER ACCT.
Pioneer Electronics named GCI Group as "agency of record"
in a pitch that came down to Edelman PR Worldwide, Magnet
Communications and Wilson McHenry Co., according to Jake
Drake, senior VP/general manager at GCI/Los Angeles. The
account bills in the $1M range.
Amy Friend, director of PR for Pioneer USA, said GCI was
selected because the firm understands how video and audio
products are converging in both the home and mobile entertainment
Drake said Pioneer will be the cornerstone of GCI's new
digital lifestyles practice. He will handle the account
with Melissa Schumer, who was recently recruited from News
Corp.'s digital media unit.
REP. CONDIT TURNS TO EIN
Rep. Gary Condit has hired veteran Washington, D.C., PR
counselor Marina Ein to deal with the Chandra Levy connection.
"We were hired last week at the recommendation of his
lawyers," Ein told this newsletter. "It's been
very busy," she added.
Condit has been criticized by the media for his failure
to discuss his relationship with intern Levy, who has been
missing since May 1.
His lawyer, Abbe Lowell, defended that silence during talk
shows yesterday. "It's not important that you know
the nature of the relationship," Lowe said on CBS'
"Face the Nation."
Condit has given the police every shred of information,
Lowell told CNN.
Ein Communications counts the Milken Institute for Job &
Capital Formation, CapCure, National Journal, Legal
Sea Foods, and A.T. Kearney Executive Search among clients.
LH&A WINS PALM BEACH COUNTY ACCT.
Lou Hammond & Assocs. has picked up a six-figure, three-year
PR contract from the Palm Beach County Convention and Visitors
Bureau, according to Warren McLaughlin of the CVB.
Five firms pitched the bureau for its international and
U.S. account, which Hill and Knowlton had for six years.
Those firms made hour-long presentations before the CVB's
board of directors June 12, McLaughlin said. The contract
begins in October.
Palm Beach County covers 2,578 square miles of Florida,
including part of the Everglades. A $74 million convention
center is slated to open in 2003.
PR FIRMS DIRECTORY IS PUBLISHED
The 2001 edition of O'Dwyer's Directory of Public Relations
Firms, the biggest-ever published by J.R. O'Dwyer Co.,
is now available. The 600-page directory features more than
2,900 PR firms and PR departments of advertising agencies
and their branches. It ranks firms by fees, and identifies
firms active in specialized areas such as investor relations,
healthcare, high-tech, beauty, travel and sports.
Publisher Jack O'Dwyer has updated his article "How
to Hire and Get the Most from Outside PR Counsel" for
the directory, which also has an article by PR Counselor
Fraser Seitel on hiring a firm from the client's point of
The directory is $175 from the O'Dwyer Co.
JONES SUCCEEDS WALKE AT M-WA
David Walke will step down Sept. 1 as senior managing director
of Morgen-Walke Assocs., the firm he co-founded 19 years
ago with Lynn Morgen, who left last year.
Robert Jones, 45, managing director, will succeed Walke
and has been named CEO. He also will join the operating
board of Business Communications International, an arm of
Cordiant Comms. Group.
Terry Rooney, who had been with M-WA since 1983, left the
firm July 9 for a director of marketing and communications
post at M&R Capital Management, New York.
RUBENSTEIN REPS GRUBMAN
Howard Rubenstein says client Lizzie Grubman, the 30-year-old
celeb publicist, was involved in a "horrible accident"
when her SUV crashed into a crowd of nightclub goers at
the Conscience Point Inn in Southampton, N.Y., on July 7,
injuring 16 people.
Grubman, who left the scene, was arrested and has been charged
with seven counts of assaults and reckless endangerment.
She could face up to 151 years in jail.
Grubman, the daughter of high-powered entertainment lawyer
Allen Grubman, was allowed to go free after posting $25,000
bail. She is scheduled to return to court on Sept. 5.
Grubman's ex-boyfriend, Andrew Sasson, is a part owner of
Conscience Point and the owner of another Hamptons nightclub,
Jet East. Both nightclubs are clients of Grubman.
Rubenstein told reporters there was no evidence that Grubman
had been drinking.
Edition, July 11, 2001, Page 2
ENTERS 'GOLDEN AGE,' SAYS WOODRUM
Investor relations people should stop complaining about
Regulation FD because it provides them an "unprecedented
opportunity" to take over the entire communications
function, according to Korn/ Ferry International's Bob Woodrum.
Reg FD gives IR pros the "charter to manage all of
a company's communications," he told the National Investor
Relations Institute's conference last month.
Woodrum urged IR people to broaden their skills to include
"media relations, crisis communications, brand management,
employee communications and all other aspects of corporate
That will give them the background needed to operate in
the new transparent world brought on by Reg FD, he said.
He warned against complacency. If IR people don't add new
skills, there's a danger that a corporate PR person or a
lawyer could emerge as the "senior executive responsible
for all communications."
Transparency is trend
Reg FD, to Woodrum, is just the "latest step in forcing
companies to act in a more transparent way."
He noted how Progressive Corp. recently became the first
company to announce it was going to provide detailed financial
information on a monthly rather than quarterly basis.
"It doesn't take much to image the day in the not-too-distant
future when even a company's daily reports on inventory,
cash on hand, sales, receivables -in effect all of a company's
transactions-will be available online in the new world of
the Internet and instant worldwide communications,"
Though Woodrum conceded the current economic lull has taken
its toll, the future of IR is golden, he said.
There's a war going on in corporate America for executive
talent, said Woodrum. That's going to intensify due to demographic
trends. "The supply of 35 to 44-year-olds in the U.S.
will decline by 15 percent during the next decade,"
IS WRITING HIS PR MEMOIRS
Bobby Zarem, who has been a PR pro for nearly 40 years,
is writing his memoirs.
He is having a tough time remembering every anecdote, feud
and fiasco during his colorful career, according to Jared
Paul Stern, who is editing "Page Six" in The
New York Post while Richard Johnson is traveling.
Zarem, who takes credit for creating the "I Love New
York" campaign, is poring over a mountain of press
clippings and pitch letters he pulled out to jog his memory.
Many of today's top publicists got their start working for
Zarem's New York-based firm.
Maggie Williams, who joined Fenton Communications as president
last September, has left the Washington, D.C.-based firm.
She was former chief of staff to former First Lady Hillary
Clinton. Kristen Wolf is FC's COO, while David Fenton remains
CHILE SELECTS F-H FOR TRADE
The Government of Chile has selected Fleishman-Hillard to
guide its effort to win a Free Trade Agreement with the
U.S., according to Rory Davenport, F-H's senior VP in Washington,
Chile considered a number of top-flight PR firms to handle
its overall campaign, and smaller shops for specific categories
such as media relations and grassroots PR, Davenport told
Chile has one of South America's most vibrant economies.
It enjoyed an eight percent average growth clip during the
'90s, but slipped into a recession in 1999-the first time
in 15 years that Chile's economy stalled.
The country has been under civilian rule since 1990 following
an election that replaced the dictatorial military regime
of Augusto Pinochet.
Davenport expects the White House and Chile will iron out
negotiations for an FTA by the end of the year. "The
Congressional focus will be next year," he said.
Davenport, who manages F-H/D.C.'s international and political
affairs, will be assisted by Jim Mulhern, senior VP who
specializes in agricultural trade policy, and Jon Huenemann,
VP and former assistant trade representative.
Huenemann was on the U.S. negotiating team dealing with
Chile joining NAFTA.
SPREADS WORD ABOUT AVANIR
Avanir Pharmaceuticals has hired the Financial Relations
Board/BSMG Worldwide to bolster its image on Wall Street.
CEO Gerald Yakatan called FRB/BSMG a "well-established
leader in the investor relations practice."
He hired the IR firm to "help relay our achievements
and prospects to the investment community."
A recent achievement of the San Diego-based firm was cutting
a distribution deal with Glaxo-SmithKline to market its
Abreva product in the U.S. and Canada.
The Food and Drug Administration recently okayed Abreva,
a cold sore remedy, for over-the-counter sale.
Avanir is looking to sign other Abreva distribution deals
with drug companies in Japan, Korea, Israel and Western
The company recorded a $418K profit for the six-month period
ended March on $7M in revenues. That compares to a $6.5M
loss for the year earlier period.
Avanir's stock trades on the American Stock Exchange at
$6.12. Its range is $9.50, $2.25.
Nike has named Hauser/Bragg, a Chicago-based PR firm, to
handle PR for Goddess, a new chain of retail stores that
will begin opening in 2001 and 2002.
Five PR agencies from around the country made presentations
in the heated review.
H/B had worked on the relaunch of the Nike Town store in
Edition, July 11, 2001, Page 3
CNCL. MAKES PITCH FOR RADIATION
The National Safety Council, a Washington, D.C.-based nongovernmental,
nonprofit group, is conducting a PR campaign to ease the
public's fear of radiation by asking the news media to run
more stories that focus on safe uses of radiation.
The NSC's Environmental Health Center division is offering
journalists suggestions for story ideas, contacts and resources,
and samples of media coverage of radiation issues.
"We hope the guidebook will help journalists understand
a range of radiation issues including types of radiation,
potential health effects, nuclear waste repositories and
roles of federal, state and local agencies," said Bud
Ward, executive director of EHC.
The guidebook urges reporters to balance the benefits and
risks of radiation and to keep the risks of radiation in
perspective with other risks.
"Nuclear energy and radioactive waste are newsworthy
because the potential environmental and health risks of
radiation are a concern to many readers and viewers,"
the press guide states.
"If news stories focus only on dangers, they may miss
opportunities to inform audiences about ways in which they
can impact government and corporate decisions to reduce
radiation hazards," says EHC, which offers 12 story
It suggests a story about a local electric utility that
is drawing power from a nuclear generating plant. "Go
to the NRC and state regulators to check out its safety
record. What, if any, releases of radiation have occurred
over the years and what level of risk did they present?
Has the company addressed the problems?", the guidebook
SHOWS FOX FAVORS REPUBLICANS
Fox News Channel wraps itself in slogans like "Fair
and balanced" and "We report, you decide,"
but a new study by Fairness & Accuracy In Reporting
found a Republican tilt in the network's news.
In a study of interviewees on the network's political news
show, "Special Report with Brit Hume," FAIR found
that of 56 partisan guests in a five-month period, 50 were
Republicans and six were Democrats.
During the course of the study, 65 of the show's total of
92 guests (71%) were avowed conservatives. Conservatives
outnumbered all other points of view, including non-political
guests, by a factor of more than 2 to 1, FAIR said.
As a comparison to Special Report, FAIR studied interviewees
on CNN's "Wolf Blitzer Reports" over the same
period, and found of 67 partisan guests, 38 were Republicans
and 29 Democrats- (57% to 43%), with 35 conservatives to
74 non-conservatives (32% to 68%).
Special Report also featured only eight female guests and
six people of color, making for a guest list that was 91%
male and 93% white.
FAIR is headquartered in New York.
RELEASES MAKE NEWS ON WEB
Popular online news sites are using more "unadulterated"
press releases for content to keep costs down, according
to Business 2.0 magazine.
"That's good news if you are a company or PR firm trying
to plug a product or service," says Joanne Helperin,
a Los Angeles-based contributor.
Her article in the May issue said the exact number of news
destination sites and sites featuring news "areas"
is almost inestimable. She cites figures provided by Media
Metrix that shows almost 42 million users visit the top
10 general news sites.
"Given such competition, even sites with professional
editorial staffs need such frequent refreshing that PR tends
to slip into places that, in the print world, might be verboten,"
said Helperin who lists these 15 websites as the biggest
users: ABCNews.com; America Online; CNET; E*Trade; Excite;
Lycos; Motley Fool; MSN.com; NASDAQ.com; MBCI.com; Newsalert.com;
Quicken.com; USAToday.com; Yahoo!, and ZDET.com.
David Grant, president of LVM Group, recently arranged
a meeting for a client with reporters and editors of The
New York Times. Just as the session was ending, he said
he turned to his hosts and asked a question long on his
mind: "Why does Donald Trump get quoted so much in
The immediate response from no fewer than three reporters
was: "He calls us back right away, no matter where
Luce Press Clippings says many publicists mail news
releases to a list of 200 (or more) daily newspapers that
-All newspapers with a daily or Sunday circulation of over
-The top newspaper in states that do not have newspapers
over 100,000-circ. (AK, ID, KS, MT, NH, ND, VT, WV and WY).
-Newspapers in the top 100 metro areas or markets of special
interest, such as cities in which the company is located.
A chart of the "Top 100 Dailies" can be obtained
free from Luce Press Clippings ([email protected]),
42 S. Center, Mesa, AZ. 85219; 800/528-8226 or Dick Wiener
RULE WOULD OVERSEE TV ANALYSTS
The National Assn. of Securities Dealers has proposed a
rule requiring that security analysts who give investment
advice on TV or radio programs disclose their personal holdings
and investment bank relationships.
Under the rule, an analyst making a recommendation would
have to reveal any financial interest he or she holds in
the security or whether an account managed by the analyst
includes any such holding.
news continued on next page)
Edition, July 11, 2001, Page 4
DUMPS 'WORLD REPORT'
U.S. News & World Report is killing its most
successful section, "News You Can Use," and dropping
its separate "World Report" section.
The changes were made by Brian Duffy, who replaced Stephen
Smith as editor last month.
The back-of-the-book "News You Can Use" section
will be repackaged into a series of more targeted sections,
such as "Health and Medicine" and "Culture
International news, which was covered in the "World
Report" section, will be covered in an all purpose
current "Business and Technology" section will
be repackaged as "Money and Business," and "Science
and Ideas" will become "Science and Technology."
GROCERS RESUME ADS IN N.Y. NEWS
C-Town and Bravo supermarkets, which are operated by Krasdale
Foods, are running ads again in The New York Daily News.
The decision to resume the ads comes a week after the News
published the last in a series of ad supplements that contained
complimentary articles about the supermarket industry.
The two supermarkets had cancelled their ads more than a
month ago after the Daily News pub-lished a series of articles,
entitled "Dirty Rotten Shame," that said their
stores were too dirty to meet state standards.
Other supermarket executives who attacked the report, saying
it was based on outdated records, also pulled their ads,
leaving Key Food as the only major supermarket to continue
weekly ads in the News.
John Catsimatidis, the chairman of Gristede's supermarket,
which pulled its advertising and stopped selling the News
in stores on May 3, said the advertorials had not changed
his mind about not advertising in the paper. He wants an
apology from the editors and reporters involved in the original
Associated Supermarkets officials also said they did not
have immediate plans to start advertising in the paper again.
The New York Post has picked up advertising from
Associated and Met Foods.
Martin Baron, 46, executive editor of The Miami (Fla.)
Herald, will become editor of The Boston Globe
on July 30.
Tom Fiedler, 55, was named to succeed Baron as executive
editor of The Herald. Fiedler was the Herald's editorial
Baron will replace the retiring Matthew Storin, who
has been editor since March 1993.
Lesley Jane Seymour, 44, was named editor-in-chief of
Marie Claire's U.S. edition. Seymour, who was editor-in-chief
of Redbook, is replacing Glenda Bailey, who recently
left to become editor-in-chief of Harper's Bazaar.
Bailey replaces Kate Betts.
John Montorio, associate managing editor of The New
York Times, is joining The Los Angeles Times
as editor of the paper's many feature sections.
John Macdonald, who was named travel editor of The
Seattle Times in 1982, has retired.
Ken Kurson, 32, a Money magazine editor-at-large,
is writing a book with New York Mayor Rudy Giuliani. The
book, which is tentatively titled "Rudy Rules,"
is about rules Giuliani has used to run the city and could
be used to turn around a business.
David Andelman was promoted to business editor of The
New York Daily News, succeeding Scott Wenger, who was
named deputy metropolitan editor.
Tangie Newborn is the new executive director of the
National Assn. of Black Journalists, headquartered in Adelphi,
RATES WENT UP AGAIN ON JULY 1
U.S. Postal rates, which went up on Jan. 7, went up again
on July 1.
Media Distribution Services, a PR media, printing, mailing,
fax and e-mail service firm, provided this summary of key
postal rate increases:
First-class mail-The single piece, first-ounce letter
rate remains at 34 cents. The additional ounce increased
from 21 cents to 23 cents. All card rates increased by one
Business reply mail-For basic and high-volume business
reply mail, the card rate increased to 21 cents. For qualified
business reply mail, the card rate increased from 17 cents
to 18 cents. The extra ounce for all BRM went from 21 to
Priority mail-Rates for packages over two pounds increased
by varying amounts.
Express mail-Express mail rates increased 1.5% accross
the board with increases ranging from 15 cents to $1.80
per piece. The Express Mail Post Office to Addresses service
half-pound rate increased by 20 cents to $12.45, and the
two-pound flat rate went up 25 cents to $16.25.
Periodicals-Overall, periodical mail rates increased
by an average of 2.6%. The 5% differential for nonprofit
remains the same.
Package services-Parcel Post retail rates increased
0 to 88 cents depending on zone and weight. Parcel Select
increased by 0 to 66 cents depending on destination and
weight. Bound Printed Matter rates increased 5-41 cents
depending on zone and sort. Media Mail first pound rates
increased by three cents across the board.
Special services-The fee for Certified Mail went up
to $2.10. Domestic Money Orders went up 15 cents. They now
cost 90 cents.
Edition, July 11, 2001, Page 7
TO SURVIVE, SAYS D'APRIX
Business communicators must think of themselves as businesspeople
first and communicators second if they are to survive in
an era of severe competitive forces, author Roger D'Aprix
told the International Assn. of Business Communicators June
D'Aprix told the IABC that communicators need to be connected
to the "business of business."
More than 1,500 IABCers were in New York for the June 24-27
meeting at the New York Hilton.
The bottom-line oriented economy has resulted in 33 million
Americans now working in their own businesses, D'Aprix said.
Downsizing became a standard corporate policy with 41 million
Americans losing their jobs between 1981 and 1995, he noted.
Most switched to lower-paying posts. Companies now tend
to keep a lean internal force and farm out work to vendors
and outside contractors, he said.
About one-in-four of those in the workforce are now working
as "free agents," he noted.
Communicators need to be "intimately connected to the
business of business" if they are to succeed in the
current climate, he added.
Work Environment Is Different
He contrasted the forces evident in today's marketplace
with the work environment of the 1950's when he started
out as a writer at General Electric.
He described a less competitive, slower-moving business
world where workers had a "social contract" with
their employers and expected jobs that lasted decades.
Internal communicators acted more like "reporters,"
covering internal events. Companies had a top-down, "paternalistic"
style, he said. The emphasis in communications was on "need-to-know,"
Competition from abroad, the oil crisis of the '70s and
the emphasis on profitability of all elements of a company
were among many forces changing that world forever, he said.
"Companies had to make sure they did not disappoint
the analysts," he said.
IABC on Track Financially
Leaders of IABC told this NL that the association, which
has more than 13,000 members, is "on track" financially
after several months of reorganization.
Louis Williams, acting president, said the group has about
a half million in reserves and has set a goal of $3 million
in reserves (which would be half of its $6 million revenues).
The 2001 annual conference in New York will clear more than
$300,000 he said, with about $200,000 of the profit coming
from sponsors. The meeting had about 30 exhibitors.
Charles Pizzo, outgoing chairman, said the group has pursued
a policy of being "open" with its members about
its financial problems while also pursuing a policy of "fiscal
prudence." As a result, he said, the membership renewal
rate has increased.
The TalkingBusinessNow web initiative is being incorporated
into IABC's regular website.
ABERCROMBIE & FITCH FACES BOYCOTT
Abercrombie & Fitch is the target of a boycott organized
by Illinois Lieutenant Gov. Corinne Wood for "peddling
soft porn in the guise of a clothing catalog."
On her website, Wood charges that A&F's racy catalog
is "glamorizing indiscriminate sexual behavior among
unsophisticated teenagers that are not possibly equipped
to weigh against the dangers of date rape, unplanned pregnancies
and sexually transmitted disease."
A&F's publication "not only flaunts page after
page of fully and partially nude young people, it also features
them in sexually explicit positions, in groups more often
than not," says Wood on the site.
She's upset especially because "young teen and pre-teens"
are key markets for A&F.
"Visit a middle school and you willl see the A&F
logo on plenty of T-shirts and sweatshirts.
"Most parents would not let their young children wear
the Playboy bunny logo or tuck a Hustler magazine into their
backpack," says Wood.
The politician launched the campaign after her daughter
brought home an A&F catalog.
An A&F spokesperson could not be reached for comment.
The company contends that it requires identification before
shoppers can purchase its catalog, which also features articles.
Edelman PR Worldwide has picked up the Mutual of
Omaha account in a competition that included "five
of the top 10 PR firms," said Kathy Olson, VP-comms.
at the insurer. Edelman/Chicago will handle PR, consumer
outreach and issues management...Saab Automobile AB
has consolidated its 25-member PR firm team to one firm,
GCI Group. Bob Feldman, GCI CEO, told this NL Saab, a unit
of General Motors, represents a "significant piece
of new business."...Wm. Wrigley Jr. Co. is close
to signing an outside PR firm for the first time in its
history. At least four Chicago-based firms are in the running
to handle the $2B+ food processor.
CONTEST WINS GLOBAL MEDIA
Nathan's annual hot dog eating contest at Coney Island,
N.Y., has become an international publicity event. The July
4th event, which was started about 25 years ago by Max Rosey,
a Coney Island press agent, was handled for the fifth year
in a row by Shea Communications.
The New York-based PR firm got Mayor Rudy Giuliani to introduce
the contestants on July 3. Several news people were on hand
to cover the intro-ductions of the contestants who donned
t-shirts emblazoned with the Nathan's Famous logo.
The event was aired by several TV stations, including the
networks and CNN, and covered by newspapers from Japan,
London and Spain, according to Shea.
A 23-year-old Japanese business student Takeru "The
Tsunami" Kobayashi won the contest, downing a record
50 hot dogs and buns in 12 minutes.
Edition, July 11, 2001, Page 8
Gary Condit has finally hired PR help to deal with the worldwide
media concerning his missing intern Chandra Levy. Upon
recommendation of legal counsel, Condit has hired a Washington,
D.C. PR veteran Marina Ein. It's about time. The Congressman
committed the classic mistake of relying on lawyers, rather
than PR pros to deal with the media. Their attempt to show
Condit busy at work and fully cooperating with the legal
investigation into Levy's disappearance badly backfired.
PR people are in tune with the needs of today's all-consuming
media. Condit's lawyer, Abbe Lowell, didn't even recognize
the importance of feeding The New York Times, which
sets this nation's news agenda. The Times, on July 9, sniffed
that Lowell had not returned phone calls from its reporters
for several days. A well-balanced Times piece would have
provided Condit a platform to make his case one way or the
other. The report would have been picked up in the U.S.
and throughout the world. Instead, Lowell chose to appear
on CBS' "Face the Nation" (and other TV talk shows)
on July 8 to blast the media for speculation that Condit
was having an affair with Levy. "It's not important
that you know the nature of the relationship," said
Lowell. Meanwhile, police sources have told CNN that Condit
admitted having an affair with Levy, and her family is demanding
that he take a lie detector test. Ein told this NL she was
just hired by Condit, and things have been crazy. She can
do no worse than Condit's legal spokesman.
Where are the good corporate citizens? A Hill and Knowlton
survey finds that nearly 80 percent of American consumers
take good corporate citizenship into account when making
a purchase decision. The problem is that most Americans
can't find any good companies. Less than two percent of
the 2,594 respondents consider U.S. companies as "excellent"
corporate citizens. Only a quarter of respondents rated
American companies "above average," while 53 percent
feel U.S. companies do a below average job when it comes
to being a good corporate citizen. H&K also found a
high degree of "cynicism" regarding the actions
of companies and their executives. Three-quarters of respondents
believe companies give to charity for PR purposes. The respondents
also don't trust CEOs acting as corporate spokespeople.
Harlan Teller, director of H&K's corporate practice,
says the report shows that companies are facing "progressively
sophisticated consumers." Harris Interactive conducted
the survey for H&K, which is called "Corporate
Citizen Watch." It makes a strong case for the need
of Corporate America to burnish its image.
How the mighty have fallen. That's the take on Comcast's
unsolicited $44.5 billion bid for AT&T's cable operations.
The bid offers "fresh humiliation to AT&T and its
CEO Michael Armstrong," said Forbes.com on July 9.
If Comcast puts off the deal it will be a "humiliating
turnabout" for Armstrong, said The New York Times.
The Times claims Armstrong is open to the deal, but is concerned
about "social issues." That means he worries that
he won't be running the show if AT&T sells out. Armstrong
had intended to run AT&T cable once the company completed
its planned break-up into four separate businesses. The
former IBM executive has brought nothing but grief to AT&T
investors since he took over in 1997. Armstrong spent $90
billion for acquisitions to make AT&T the biggest cable
company with 16 million customers. Since the end of 1997,
AT&T's stock dropped 50 percent, while the S&P 500
index rose 26 percent, noted Forbes.
Cuts ad growth forecast. Publicis Groupe CEO Maurice
Levy, last week, said the worldwide advertising market will
grow one or two percent this year. That's down from a three
to four percent rise that he predicted in June. Levy's announcement
triggered heavy selling of shares in Publicis and its French
cousin, Havas Advertising.
Take a grain of salt with the Wall Street report. The
Securities and Exchange Commission warned investors not
to rely solely on analyst reports when making investment
decisions. Laura Unger, acting SEC commissioner, said the
federal watchdog has been swamped with investor complaints
about Wall Street reports. The SEC issued an alert because
it feels that many investors are not aware of the inherent
conflicts that exist at brokerage houses. Rep. Richard Baker,
who has appointed a review board to probe the conflict problem,
said he will release a report next month. The Congressman
applauded the SEC for its move.