Farlei Kothe, CEO Stefanini EMEA: Resilience is the keyword for companies in 2021

ENJOY the QUALITY

*******

ADMIRE the VALUE

No.99/2021 29lei

www.business-arena.ro

m a g a z i n e

FARLEI KOTHE, CEO STEFANINI EMEA RESILIENCE IS THE KEYWORD FOR COMPANIES IN 2021 pages 06 - 09

LUXURY & LIFESTYLE

TOP BRAND pages 38 - 71

“

We have all gone online in the past year to a certain extent, regardless of our industries, and this shift brought along not only opportunities, but also threats that many companies were not familiar with.

”

www.businessarena.ro

ORDER NOW YOUR BOOK OF EXCELLENCE, A COMPREHENSIVE AND EXQUISITELY PRINTED COLLECTION OF SUCCESS STORIES, INTERVIEWS AND FEATURES FOCUSING ON BUSINESS ARENA'S AWARD GALAS AND AWARD WINNERS

We at Business Arena Publishing Group keep an eye on the latest trends in the business media and put our readers' wishes first, as we constantly aim to extend our readership potential and gain greater coverage and circulation. In keeping with our expansion strategy, we are happy to introduce The Book of Excellence 2020. Widely acclaimed for its prestigious annual awards dedicated business, culture, civil society, and sport personalities, Business Arena Magazine has heard its business partners and readers alike, who have been asking for a new platform that could put under the spotlight all the Business Arena award winners, with their success stories, challenges, expectations and hopes.

Business Arena is committed to providing the business community with useful insights and tools to manage their operations, and with platforms where business leaders and leading professionals can express their views and ideas.

We have decided to build the new publication around our dynamic award events, and showcase their winners: Most Admired Business Women Awards, Financial Leaders' Hall of Fame, Business Arena Awards for Excellence. Our readers deserve to know more about these successful people and Overall, this new magazine organizations, so more than 30 business leaders, is designed to include a wide variety entrepreneurs, highly-regarded professionals, of exciting topics and promote business companies, and banks will be included in our excellence. We plan to publish the magazine first edition, with interviews, biographical annually and jam-pack the pages full of success details and company profiles. stories to inspire you. Our aim is to inspire readers with

new ways of thinking; promote greater awareness of issues affecting their business opportunities; and expand our audience to a new generation of business people, entrepreneurs, and professionals.

The Book of Excellence will cover the most dynamic business sectors in this country, including banking, car manufacturing, IT&C, real estate, agribusiness, hospitality, retail, pharmaceuticals and so on. It will have a company profile section, lists of top companies in multiple categories and of course exclusive interviews.

cosmin.stangaciu@business-arena.ro or paul.madrio@business-arena.ro or abonamente@business-arena.ro

EDITORIAL

by

Cristian Cojanu

LIVING ON A BUDGET After much deliberation, the government managed to put together a draft budget that satisfies virtually no one, but analysts say that was to be expected as the money is tight and requirements are high.

Among other aspects, the draft contains a freeze on public sector wages as the government hopes to keep this year’s budget deficit at around 7.16% of the GDP, while securing a 4.3% economic growth. Moreover, transport subsidies for students will be reduced, while overtime for state employees will no longer be compensated financially.

The document forecasts this year’s GDP at 1.116 trillion lei (229 billion euro), while the average inflation is expected to reach 2.4%.

The government also aims to cut the budget deficit to 2.9% by 2024.

Looking at a broader picture, the European Commission’s Interim European Economic Forecast Winter 2021 notes that the speed of recovery will vary significantly across the EU, while the start of mass vaccination campaigns has improved the outlook “beyond the near term.” “Furthermore, the agreement reached between the European Union and the United Kingdom on the terms of their future cooperation reduced the cost of the UK’s departure from the Single Market and Customs Union, while endorsement of the Recovery and Resilience Facility is set to support Member States on their way to a

sustainable recovery,” the report added.

Moreover, the EU’s GDP is expected to grow by 3.7% in 2021 and 3.9% in 2022, and by 3.8% in both years in the euro area. In turn, inflation in the euro area and the EU is projected to be slightly higher in 2021 compared to last autumn. ”In the euro area, inflation is forecast to increase from 0.3% in 2020 to 1.4% 2021 before moderating slightly to 1.3% in 2022.”

As for Romania, the report points out that its real GDP is projected to grow by 3.8% in 2021, below the government’s 4.3% estimate, and by 4% in 2022. In turn, private consumption is seen recovering strongly from the second half of 2021, “as the rollout of vaccinations should allow for a gradual lifting of restrictions.” In addition, investments are expected to stay strong, on the back of the construction sector. In turn, exports are seen rebounding amid improving economic conditions. The average inflation rate is forecast to reach 2.6% in 2021 and 2.4% in 2022. The report added: “Risks to the growth forecast are tilted to the upside. Particular upside risks for Romania are a fast implementation of the Recovery and Resilience Plan and an improvement of public finances.”

Find more expert opinions and economic predictions in this new edition of our magazine, as Business Arena continues to keep an eye on all the issues affecting the business community.

FROM ALL OF US HERE AT BUSINESS ARENA, ENJOY THE QUALITY, ADMIRE THE VALUE!

http://www.business-arena.ro

1

OPINION

FINANCE MINISTRY THANKS THE CENTRAL BANK The Finance Ministry thanked the central bank for its policy to devalue the RON, the national currency. “The central bank, as an independent institution, sets its own policies, but a weaker RON will definitely have a positive impact on our country’s exports,” stated the Finance Ministry official.

BY RADU CR|CIUN

http://www.business-arena.ro

What impression would this statement leave on you? It would be equal to a shock wave through the economy, a paradigm shift which would propel Romania into a “film” completely different from the one it has been playing in

2

these past decades when exchange rate stability has been fiercely guarded. It might be like something from a sci-fi film for us, but in Poland’s case, it is as real as it gets. The thanks were extended by the deputy Finance Minister to the Polish central bank.

Citibank estimates that in December the Polish Central Bank bought foreign currency on

the local market worth around $7 billion in an attempt to weaken the zloty and increase the competitiveness of Polish exports. Can Poland be suspected of competitive devaluation and if so, the question this raises for us is: What are we waiting for? Do nothing as our exports lose their competitiveness?

Well, we are waiting for budgetary and macroeconomic policies as reasonable and predictable as Poland’s. (Alas, we wanted to copy the Polish model only when the dismantling of the private pension system was concerned, a measure that Polish politicians are regretting and are trying to fix.)

As a picture is worth a thousand words, please see the graph obtained RADU CR|CIUN from our colleagues in the BCR’s Research Department. It shows where Romania stood in terms of budget deficit (vertical axis) and current account deficit (horizontal axis) in relation to other EU countries at the end of 2019 before the pandemic-induced crisis.

Romania was an ‘outlier’, exhibiting completely different circumstances from the rest and mainly from its fellow Central and Eastern

http://www.business-arena.ro

3

European states. It featured large deficits unnecessarily generated in times of economic boom. Instead of keeping our ‘bullets’ for rainier days, we gloated over the miracles that public sector wage rises would produce. That helps explain how the weak economic state in which the crisis found us (again!) did much to restrict the moves to cushion the crisis.

Basically, given what has happened in the past 12 months, the local exchange rate, unlike the one in Poland, became hostage to how the public deficit is funded. When 50% of the public debt is denominated in foreign currency, then any RON devaluation will lead to a significant increase in budgetary expenditure.

And that is not acceptable.

Poland is not in the same predicament, as its reliance on external funding has been declining mainly since 2016. This was made possible by a prudent budgetary policy which resulted in a budget deficit constantly far below Romania’s. In 2018 and 2019, it was close to zero, whereas in Romania it reached 3% and over 4 %, respectively. At the same time, the Polish government bonds were propped up by central bank purchases whose goal was to lower the government’s financing costs and its reliance on external financing.

Why hasn’t the National Bank of Romania acted along the same lines? It was because of the country’s unique budgetary policy which has caused it to spend most of its tax revenue and social contributions on paying pensions and public sector wages. Therefore, the money

the NBR would have printed would have gone to pensions and wages instead of development and investments. The general elections at the end of 2020 created a setting that was not favorable to budgetary corrections, however necessary they may be. The proof lies in the unseemly debate on raising pensions by 40% as the budget is bursting at the seams and the rating agencies had their finger on the downgrading sovereign credit rating button.

All that was left to do under these circumstances was to celebrate with fireworks foreigners’ willingness to credit our economy and ignore the massive dependence on a stable exchange rate the external funding brings about.

Meanwhile, the competitive devaluation strategy for the Polish zloty and the announcement that it should continue shed new light on NBR’s recent decision to lower the key interest rate. Even though a significant devaluation of the RON by purchasing foreign currency is out of the question, a gradual and limited devaluation by lowering interest rates would be much better tolerated by the economy. (and by the local psyche which differs radically from the Poles’, much less fixated on the exchange rate.) In conclusion, we may see at some point our own Finance Minister thanking the NBR. Not for devaluing the RON, but for keeping it stable.

Not even 30 years after collapse of the iron curtain, have the macroeconomic paths of Romania and Poland converged.

FINANCIAL

INFLATION IS UNDERVALUED The latest inflation reports made newspapers say “The crisis has brought inflation to almost the best rate for the Romanian economy,” and analysts note that “The annual consumer price dynamics slowed down from 2.14% in November to 2.06% in December, the lowest since September 2017.”

BY RADU CR|CIUN

http://www.business-arena.ro

Indeed, the crisis, due to rock-bottom consumer spending, has taken the pressure off prices. But it has also had a perverse effect which has mostly gone unnoticed so far. The basket of goods used to calculate the consumer price index, an indicator of inflation, is almost two-years old. In other words, the 2020 inflation rate was calculated based on a basket of goods which reflected the 2018 domestic consumption patterns. A crucial detail, isn’t it, as their spending preferences have substantially changed over the 2020 pandemic.

The massive increase in personal hygiene

4

and communication services spending and plummeting spending on tourism, recreation or transport are still fresh in our mind. The actual weight of rents has also fallen as some tenants went back to their home towns to work from home.

To put it differently, the approach that was meant to mostly maintain the same goods in the basket year after year has yielded a distorted picture of domestic consumption habits for

2020. What was the share of face coverings in 2018? They were most likely not even included in the basket ... And this is not only Romania’s case.

A survey published in a European Central Bank newsletter also pointing out the distortions in inflation tracking across the euro area, assessed the impact that pandemic-induced behavior changes have had on the actual basket of goods. The graph shows the expected changes in the basket structure over the pandemic in the euro area.

Measuring inflation has not been distorted only by the CPI basket’s lack of representation, but by the prices themselves. On the one hand, the prices for the most indemand goods have gone up as at some point supply was overwhelmed by demand. At the same time, measuring prices was difficult due to the lockdown most cities were under.

The shutdown of many shopping centers provided limited opportunities to collect prices.

How much higher was the inflation rate?

Probably not by much, by first decimals probably, as the EGB survey suggests.

And the distorting methodology will continue to produce inaccurate numbers. As inflation over the coming years will be reported based on an unrepresentative CPI basket: the 2020 basket.

A B e veevnetnst

BRAND

EXCELLENCE AWARDS 2021 HALL OF FAME

Enjoy the Quality * * * * * Admire the Value OUR PARTNERS

The latest addition to Business Arena's events calendar is a project designed to expand the scope of its annual award ceremonies.

The Brand Excellence Hall of Fame Awards is the fourth major gala event in Business Arena’s portfolio, joining the list alongside the Awards for Excellence, Most Admired Business Women Awards and Financial Leaders’ Hall of Fame.

Innovation, resourcefulness, perseverance and a culture of responsible risk-taking have helped many overcome major challenges.

Thus, the new awards gala recognizes organizations that have achieved outstanding results through initiatives that demonstrate excellence in brand management.

Celebrating achievement, innovation, and strong brand strategy, the 2021 Brand Excellence Hall of Fame Awards cover the following categories: • Automotive Brand of the Year; • Best Pharmaceutical Brand of the Year; • Brand of the Year in Hospitality; • IT Brand of the Year; • Most Admired Telecom Brand; • Best Real Estate Brand; • Romanian Brand of the Year; • Retail Brand of the Year; • Romanian Banking Brand of the Year; • Best Banking Brand; • Most Admired Banking Product

For more information please contact Cosmin Stangaciu at cosmin.stangaciu@business-arena.ro or phone 0755.274.125

INTERVIEW

FARLEI KOTHE, CEO STEFANINI EMEA:

RESILIENCE IS THE KEYWORD FOR COMPANIES IN 2021 For Stefanini, the global tech multinational originating from Brazil, the past year has offered no opportunity for standing still. As with many other tech giants, the company was very busy throughout 2020, responding to the pandemic that has forced many companies to accelerate their digital transformation.

“We had started our own digital transformation journey long before 2020 rushed us all in this direction,” says Farlei Kothe, the CEO of Stefanini in the EMEA region. “We are now in the position to lead and guide our customers as seamlessly as possible through the digital transformation process, which is no longer

http://www.business-arena.ro

FARLEI KOTHE, THE CEO OF STEFANINI IN THE EMEA REGION

6

optional for any company. We have all gone online in the past year to a certain extent, regardless of our industries, and this shift brought along not only opportunities, but also threats that many companies were not familiar with. Cyber threats, in particular, became a challenge, especially for companies in industries that had not been the traditional focus of hackers, such as medical companies, industrial companies, entrepreneurial companies, government agencies and so on.”

These new risks prompted Stefanini to expand its focus on cybersecurity in the region

last year. Provider of IT services for more than 33 years, in 41 countries around the globe, Stefanini entered the cybersecurity market in 2016, when it started a joint venture with Israel-based Rafael Advanced Defense Systems. The company leverages Rafael’s technology designed for military-grade cybersecurity and its own global sales channels. Stefanini Rafael Segurança e Defesa’s managed security services have grown rapidly in Brazil since the joint venture was announced. The company soon opened another Security Operations Center for Latin America as the demand in the region was on the rise.

In the EMEA region, Romania is a key market for Stefanini, especially when it comes to acquisitions or strategic joint ventures. As a result, when plans to expand the cybersecurity pillar outside Latin America took shape, a local investment here was the next logical step.

Therefore, in 2020, Stefanini joined forces with the Romanian company Cyber Smart Defence (CSD), one of the most dynamic cybersecurity companies in the country. Stefanini Group has also recently opened a Security Operations Center (SOC) in Bucharest to cover the needs of its clients in the entire region. Meanwhile, CSD plans to grow its turnover up to five million euros in the next three years.

The timing could not be more perfect, as Bucharest has recently been appointed to host the European Cybersecurity Competence Centre, the hub that distributes EU and national funding for cybersecurity research projects across the community bloc.

“WHAT STEFANINI AND CSD HAD TO OFFER EACH OTHER WAS ONE OF THE MOST VALUABLE ASSETS ONE COULD TRADE THESE DAYS: TIME “Leaving aside any investment figures, Stefanini Group and CSD signed a strategic partnership,” says M\d\lin Dumitru, founder of Cyber Smart Defence and CEO of the new joint venture. “We are investing in the future together, and what we had to offer each other was one of the most valuable assets one could trade these days: time. Stefanini gained instant access to the local cybersecurity market,

ambitious local entrepreneurs from all over the world, offering them a global platform for their solutions and services and, at the same time, constantly expanding and refreshing its own portfolio. In 2019, Stefanini Infinit was the first such joint venture in Europe, focusing on marketing and digital. Cyber Smart Defence followed in 2020, focusing on cybersecurity services, but the expansion plans continue for the Brazilian tech multinational.

“We are constantly looking for new and innovative solutions, expanding our global ecosystem to provide true digital transformation to our clients. To this end, we plan to add at least two new ventures every year to our portfolio,” says Farlei Kothe. “We are in the final phase with a new acquisition in Romania, a deal that we will close in the first semester, and we plan for another venture in the region later this year. We have several discussions open in different stages with potential partners and we are constantly trying to expand to key markets.”

DIGITAL HYGIENE, AS IMPORTANT AS PHYSICAL HYGIENE THESE DAYS, SAYS ALEXANDRU BERTEA, CHIEF CYBERSECURITY STRATEGIST AT STEFANINI EMEA

M|D|LIN DUMITRU, FOUNDER AND CEO OF CYBER SMART DEFENCE without having to go through the usual trial and error phase, and we were happy to gain access to an extremely valuable pool of clients, which would have definitely meant an important time and effort investment on our part if it hadn’t been for Stefanini.”

The tech giant follows a strategy of acquiring or setting up joint ventures with young and

Back to cybersecurity, 2020 was of paramount importance for the industry. “Security is countercyclical: this industry tends to grow while broader macro conditions deteriorate,” explains Alex Bertea, Chief Cybersecurity Strategist, Stefanini EMEA. “During the pandemic, the need for cybersecurity services increased, especially as a result of the shift towards remote working, but also because specific security trends have accelerated a digital transformation process that was already underway.”

The losses caused by cybercrime for companies in 2020 were around two trillion USD. For this year, they are estimated to be no less than six trillion USD. “Historically, this figure never dropped,” says Alex Bertea. “This is why digital hygiene has become just as important as physical hygiene these days.”

Think of it this way, he says: “Every second, a cyberattack happens in the EU. Some 43% of the costs of cyberattacks come from data loss and data leaks. Hackers are prepared to sell personal data for amazingly cheap prices. The figure varies between 20 cents and 15 US dol-

http://www.business-arena.ro

7

http://www.business-arena.ro

INTERVIEW

8

lars. A lot less than one would assume. At the streaming from. Cybersecurity teams now have same time, the damages are hard to quantify, to secure not just some parts of the organizaas they are not just direct costs, they can tion but the entire organizations, protecing all cause significant reputational damage and employees within their work from home enviother losses that are harder to quantify but ronments, as well as all the applications they very significant.” interact with.

Last year can be viewed as the first step in Speaking on his experience at Cyber Smart a move towards a completely different way of operating.

“There is no going ALEX BERTEA, back to the “business as usual” CHIEF CYBERSECURITY model that we knew STRATEGIST, before the pandemSTEFANINI EMEA ic,” says Farlei Kothe. “Companies will have to develop a new way of doing business if they want to thrive and move forward. And this new model definitely includes digital transformation, accompanied by a solid cybersecurity strategy and defense plan.”

Defence, part of Stefanini Group, M\d\lin Alex Bertea explains the magnitude: “Clients Dumitru explains: “These days, cybersecurity are now shifting from on premises and hybrid and physical health are our most important to cloud environments and are using these concerns. Some 98% of the IT systems we services actively. We are not talking about 5% have tested had critical vulnerabilities. At the of the users in a company anymore, it’s usually same time, 95% of the owners and IT directors more than 80% of the users that are interactof these companies believed that they did not ing with these environments. So, this has have any major security problems in their infrabecome a greater challenge for security teams structure.” in a very short period of time. In addition to According to Netwrix’s 2020 IT Trend the data that users voluntarily provide when Report, the topic of data security has become accessing a specific application, there is also a priority for three out of four companies in data that is collected automatically by the sim2020. If companies were spending their budgple fact of visiting websites, through devices, ets on cybersecurity products a few years ago, such as Beacons, Crawlers and Cookies. Once lately, they are turning to cybersecurity outa company that manages such data is comprosourced services, performed by highly trained, mised, data will be lost, and it can be aucspecialized professionals, with the pandemic tioned in dark markets for less than one dollar. demonstrating the importance of this field.

Also, deep fake technology is not just a prank “A successful cyberattack is performed by anymore or a tweet or a very nice Instagram hackers rather than by machines or software, post but a real threat. These ransomware pracwhich is why improving security should take tices can leave an entire company paralyzed the same approach, using the same human for days, weeks or maybe even months. skills and the appropriate mindset. I believe Sometimes, the demands are so high that they making use of a human team of ethical hackcan really leave a company on the verge of ers to secure systems is the correct bankruptcy.” approach,” says M\d\lin Dumitru.

Security goes hand in hand with technology It is estimated that 3.5 million jobs may be and product development, which is why comgenerated by the cybersecurity market in panies need to secure their apps, the end2021. Stefanini is one of the highly active and points, and all the laptops and devices they are rapidly growing players on the market and is

looking only for best-in-class professionals to come aboard and support its growth.

CYBERSECURITY IS A LINE OF BUSINESS THAT IS BASED ON TRUST “Our recruitment efforts are spread throughout Europe, with a special focus on Romania, Spain, Germany, UK, Poland and the Republic of Moldova,” says M\d\lin Dumitru. We are actively recruiting the best-in-class cybersecurity professionals, especially Operational Technology Security professionals and Security Operations Analysts. We have a tough recruitment process, based on punctual and situational questions, as we are looking for the best.”

“Because we can only afford the best,” adds Alex Bertea. “Cybersecurity is a line of business that is based on trust. It is a very sensitive topic and trust is key to a client’s decision. But when you have the best professionals, an Israeli DNA that comes from the very successful cybersecurity venture Stefanini Rafael, when you offer 24/7/365 top-level

services anywhere in the world, and you are working with some of the best technology partners in the industry, trust is no longer an issue.”

Speed is another focal point, he explains.

“In our SOC in Bucharest we are able to deliver world class services from day one. And we can offer proof of concept to a client within days.” The Brazilian tech company prides itself on being big enough to invest in its innovation ecosystem to take customers through the digital journey, and small enough to be customercentric and flexible to adapt to their individual needs.

“Our customer is at the very center of our strategy as Stefanini Group and this is especially true for cybersecurity services,” adds Farlei Kothe. “We offer more than just out of the box solutions. We take pride in customizing every delivery and every project to our clients’ specific requirements, adapting to whatever business objectives they have. We also help our clients increase their resilience.

To achieve business resilience, every project a company starts nowadays needs to start with one key question: is my system secure?”

http://www.business-arena.ro

9

MACROECONOMY

WHEN CENTRAL BANKS AGREE TO PLAY DANGEROUS GAMES FOCUS ON TURKEY Who pays for central bank decision makers' hasty monetary policy decisions, based on incorrect assumptions, taken under pressure or simply taken wrongly, although more than likely with good intentions? How expensive are these errors and who pays for them? I'm trying to answer below.

BY CRISTIAN POPA

http://www.business-arena.ro

Certainly, bad decisions have been and will be made. It is enough to look at Latin America, or the 70s, when central banks created high inflation, which they eventually managed to control, but with huge economic costs.

Central banks have been and still are key players in the economic response to the pandemic. Many measures have been taken in the last year, but when analyzing those measures the findings are quite nuanced. The type and the extent of the measures taken were completely different between developed countries (issuing reserve currency, dollars and euros for example) and emerging countries (which do not issue reserve currency).

10

Why didn't small countries use the same tools as the US Federal Reserve or the European Central Bank? What is the difference?

As today's money is no longer "gold-backed", the system is based on trust, on the confidence that the central bank that issued it will not destroy its value by "printing" new money without limit. In simple terms, the difference comes from the degree of confidence that each country, its central bank, and currency enjoy. While investors are ready to keep their savings in euros or dollars even at zero yields, would they accept the same for Turkish lira or Argentine peso? The answer is most likely no. This leads to balancing yield against risk. For a currency considered "safe", the issuing central bank allows itself to lower its interest rate to zero and even print new money because the markets trust its policies, so they trust that it will "follow the rules," and thus it will not create excessive inflation. But for a

CRISTIAN POPA

currency considered "risky", the central bank that issues it does not enjoy such a privilege. It must compensate in some way for the higher risk attached to it, the risk of "not following the rules to the letter," the higher natural interest rate, and the higher rate (and persistence) of inflation in that country. And this compensation is achieved through a higher “cost of capital”: higher interest rates or an undervalued (depreciated) exchange rate.

The above-mentioned equation is actually more complex, especially in terms of "observance of the rules" by the central banks, but to keep things simple we will not go into details here.

Coming back to our topic, if interest rates do not offset the risk perceived by the market, or are lowered by the central bank (despite a reality that would justify otherwise) to unsustainably low levels, then the markets react: investors sell that currency against other currencies with a better risk/ return ratio, thus generating depreciation pressures for the national currency (investors will do this despite the fundamental factors, which act over time, in the long run). The country's own citizens will probably make currency exchanges, fearing a further depreciation and hoping to maintain the purchasing power of their personal savings. They will do so even if they

http://www.business-arena.ro

11

perceive the "strong" currency (euro, dollars) as a better alternative to their national currency.

Higher inflation in the country also makes citizens abandon the national currency in favor of a currency which is more easily convertible into other international currencies. These are some of the elements that generate currency depreciation pressure.

In summary, steep and sudden interest rate cuts in emerging countries often lead to a loss of confidence in the central bank, to the migration of capital out of the country, and ultimately to a depreciation of the exchange rate. In turn, depreciation leads to higher inflation, because it makes imported goods more expensive. Higher inflation causes more depreciation, as citizens and investors will seek to protect their savings from inflation by buying currency and importers will raise prices as a way to cover the devaluation risk, at least partially. Thus, we see a spiral of depreciation generated by inflation and vice versa, while the decision makers' mistake is becoming obvious. To stop the spiral and depreciation, the central bank must acknowledge its mistake and intervene to restore the lost confidence. Thus, it must increase the interest rates even above the previous equilibrium level.

But trust is hard to gain and easily lost: raising interest rates must be credible, and inspire confidence, otherwise the effect will not be as expected. And correcting the mistake is accompanied by costs: the depreciation will probably be stopped, but not reversed, and the sudden and significant increase in interest rates has a negative impact on economic activity, investment, and unemployment.

Who pays the bill?

The bill is paid by all those who trusted the local authorities (monetary and fiscal) and the national currency. Citizens, companies as well as foreign investors who have kept their savings and investments in the national currency lose a

part (perhaps significant) of their wealth. But among those who stand to lose there are also vulnerable individuals, with low and fixed incomes, because inflation erodes their purchasing power. Inflation is the most infamous tax.

Many savings evaporate due to inflation.

Moreover, those who have debts in foreign currency and incomes in the national currency will have to return a more expensive currency, so the effort to repay the loan is higher. Companies with debts in foreign currency may become insolvent, unable to return the borrowed currency, closing the gates and generating job losses.

But consumers are also losing, because imported goods become more expensive - with the same salary they will buy fewer goods and services from abroad.

Focus on Turkey: a costly mistake.

Relatively "close to home," Turkey is a living and recent example of inappropriate monetary policy decisions, and it is also a case study on the implications of such decisions. Turkey is a typical example of a country with a deficit of savings that must borrow from abroad in order to cover the capital needs (investments and expenditures), which needs investor confidence.

Under political pressure, the National Bank of Turkey cut the monetary policy interest rate to an unsustainably low level, artificially stimulating the economy. The monetary policy interest rate was reduced from 24% (in June 2019) to 8.25% (in May 2020). In 2019, Governor Murat Cetinkaya was replaced precisely because he had failed to reduce interest rates as quickly as the country's political leadership would have liked. Of course, such a move helped Turkey's economy to run at full speed in the short term.

But the accelerator pedal was pressed too hard and the inflation stopped declining, and even began to rise. With interest rates only partially offsetting the country's inflation and risk, and collapsing foreign currency earnings from

http://www.business-arena.ro

MACROECONOMY

12

tourism (due to the pandemic), foreign investors as well as Turkish citizens, accustomed to not having too much confidence in their national currency, began exchanging their lira into dollars. In the first six months of the year, the lira had already lost 15%.

But starting August, fresh and massive depreciation pressures emerged. On September 24, the interest rate was raised by two percentage points, from 8.25% to 10.25%, showing that the exchange rate depreciation tolerance limit had been reached. In the meantime, however, the lira had already lost another 11%, with a total depreciation of 28% since the beginning of the year. In spite of the interest rate increase, the Turkish lira continued to depreciate at a brisk pace. Increasing interest rates by 2% was not enough. Foreign exchange reserves had been partially depleted in the effort to limit depreciation, and were no longer at a comfortable level for interventions to prevent further depreciation.

The magnitude of the capital exodus from Turkey was so great that it was felt even in Bucharest, marginally influencing the appreciation of the leu: some investors were running ditching lira for lei.

After another significant depreciation of the Turkish lira, which lost an additional 10% in one week, on November 7, 2020, President Erdogan decided to dismiss the central bank's governor, Murat Uysal. He was replaced by a new governor, Naci Ağbal, described by analysts as a technocrat. Markets reacted positively to the news.

The Bank of Turkey began to regain its credibility and the lira started to recover visibly, with the market anticipating a normalization of the monetary policy. On November 19, the National Bank of Turkey had to acknowledge the reality and raised the one-week interest rate from 10.25% to 15%. The December monetary policy meeting was to bring another increase to 17%.

In summary, the President of Turkey, who recommended himself as the "enemy of high interest rates," has repeatedly called for lower borrowing costs. Although the interest rate was theoretically reduced, in practice the decrease was a drop of poison, doing more harm than good.

Instead of effective low interest rates, the president significantly affected the independence of the central bank, and generated extreme tensions, problems in the country's banking and foreign financing system, poverty, higher (not lower) interest rates, inflation, as well as a depreciation of the lira: 43% (from the beginning of the year until the time of maximum tensions).

Conclusion: the message is clear.

Turkey's example provides a lesson to the rest of the world, and delivers a very clear message to the emerging countries, a category which includes Romania. Firstly, lower interest rates do not necessarily bring in more and cheaper capital. In fact they can have the opposite effect. If an emerging country has a deficit of savings relative to investments, it depends on foreign financing, and investor confidence must be maintained in order to be able to finance the external deficit with long-term capital. The unsustainable reduction of monetary policy interest rates can erode this confidence, thus triggering a chain reaction (depreciation of the exchange rate, difficulties in financing the external deficit, reversal of interest rate cuts and deterioration of the economic situation).

By the time of the first interest rate increase, on September 24, 2020, the Turkish lira had lost 28% since the beginning of the year. To put it more clearly, a similar depreciation in Romania would push the leu/ euro exchange rate up to 6.24 lei.

The lira lost 43% of its value from the beginning of the year until tensions reached their peak. For comparison, throughout 2020 the Romanian leu depreciated by 1.88%, against the single European currency.

In Romania, a 1 ban depreciation, or 0.2%, would trigger "breaking news" headlines in all the written press as well as on TV, generating anxiety among Romanians. There is a certain “euroization” of the Romanian economy (housing, car, telephone bill prices, etc. are all expressed in euros), which is substantially higher than in Poland, the Czech Republic and Hungary, but this does not fully explain Romanians' anxious reactions to even the slightest movements of the exchange rate.

Even so, the National Bank of Romania (BNR) has focused on securing a relative stability of the exchange rate, and maintained it in a context of gradual and sustainable interest rate cuts, without falling into the trap of excessively low interest rates. But there is a very fine line between interest rates that allow stable exchange rates and interest rates that are cut too low or too fast. It takes a lot of attention, professionalism and experience to maintain this balance.

Romania and the Romanians would not have allowed themselves an experiment like the one in Turkey, especially not in the middle of a global pandemic. Hence the BNR's increased attention and its gradual measures taken over the last year.

OPINION

LADY LUCK WEARS THE IE As I’ve stated before, there is an inherent strike of cosmic luck that the Romanian people has benefited from during crucial moments in its history.

Take this: at the time, the 1859 Union of the two Romanian Principalities was not on God’s agenda and yet it happened. The case repeated itself not once with 1918/1919 process that led to the formation of Grater Romania – but twice, with Romania’s accession to NATO and the European Union. All these events where never meant to happen, could not logically have happen and yet, against all the odds in the Universe, they did.

http://www.business-arena.ro

BY OVIDIU CONSTANTINESCU, FACE PR AND NEWS

14

Just for the sake of it, let’s recall that on the morning of November 10, 1918 most of Romania was well occupied and administered by the German Army, but just after lunch we declared war on Germany and the Central Powers, and one day later – when the cannons fell silent at the 11th minute of the 11th hour of the 11th day of the 11th month - the Romanian Kingdom was counted among the winning party.

And the same goes with the accession to NATO and the EU. In 1997, NATO diplomatically slammed the door right in Romania’s face only to invite it to join five years later. The same goes for the EU accession. Amid the turmoil in the western Balkans, Romania – still unprepared for such a huge leap – is invited to join, and in 2007 the red-yellow-blue flag was ceremoniously raised in Brussels.

Cutting a long story short, the current pandemic that crashed the world economy and brought global industries to their knees is another telling example. As the Social Democrat Party strategically allowed its own government to collapse, one year before the planned 2020 local and general elections, we were all prepared to see once more the 2015

scenario that worked so well for the 2016 elections. Come January 1, 2020 budget debates, Romania was bracing itself for a downpour of electoral bribes in total disregard of the state of the economy, preparing the grounds for an economic catastrophe of epic proportions. The discussions about nationalizing the private pensions pillar and top politicians taking legal steps towards repatriating all the country’s gold reserves were no good omens and it was clear that the Romanian economic dingy was heading towards the perfect financial storm. Added to that, we were alone and helpless in our tiny boat that was taking water from all the fiscal holes possible.

And then, bang, comes the SARS CoV-2 pandemic. The world economy comes to a standstill, as if someone threw a spanner into the bicycle spokes. Romania registers its first case and the second and the first victim and then the second, so, along with the rest of the world, it shuts down.

As the pandemic spread rapidly around the planet and World prepared for the doomsday, Lady Luck donned the ie, the traditional Romanian blouse, and started working her magic. The first miracle: UEFA postpones the 2020 European Football championship. At the time, there was no chance that Romania would be able to host Euro matches, as not

http://www.business-arena.ro

15

one of the three promised stadiums was even close to being ready. That was also the case with the rail link between the Otopeni Airport and Gara de Nord railway station, one of the conditions for the right to host the matches. Twelve months later, the rail link is somehow functional and the stadiums are ready. See what I mean?

If you still don’t believe in fairies and the ie-donning Lady Luck, here is another one: having realized that the pandemic is just part of the problem, and the post-pandemic economic recovery is far more difficult and costly, the European Union came up with the Recovery and Resilience Facility. €672.5 billion in loans and grants was made available to support OVIDIU CONSTANTINESCU reforms and investments in the EU member states, in order to the administration and transition for a fairer mitigate the economic and social impact of society as a whole, you name it. the coronavirus pandemic and make European On top of that, the icing on the cake, we economies and societies more sustainable, are no longer (at least for the time being) resilient and better prepared for the chalunder the threat of the excessive deficit procelenges and opportunities of the green and digidure, as the European Commission decided to tal transitions. In the midst of the world’s take further steps due to the uncertainty greatest medical crisis for a century, on the caused by the coronavirus pandemic and brink of global economic meltdown, Lady Luck reassess the country's fiscal situation in the puts on the Romanian traditional ie and does spring. her magic once again, as Romania gains Some historians still debate how the access to €40 billion to “restart its economy”.

Romanian people has managed to survive in a Now, out of nowhere, we have money – in place where three empires have fought for terbillions! - for motorways, railroads and sustainritories and influence for centuries. My honest able transportation systems, for green econoanswer is short and simple: Lady Luck wears my and climate and environment projects, for the ie. education and digitalization, for modernizing

BT FOCUSES ON DRIVING ECONOMIC RECOVERY IN 2021

http://www.business-arena.ro

Banca Transilvania (BT) posted positive 2020 preliminary financial results, on the back of increased operation volumes and adequate cost management. Its customer support strategy was reflected in the growth of operations and overall business. The bank granted more than 145,000 loans, with companies receiving over 9.5 billion lei and individuals, 5.3 billion lei. At the same time, the number of unique digitalized customers exceeded 1.7 million.

16

“We have ended an atypical, unprecedented year and we are satisfied that our results exceeded the conservative forecasts of the initial budget. In 2020, we proved again that we adapted and that we have an experienced and strong team, which can deliver great results even within such a complicated context. The most important thing, however, is that we kept our promises, that we contributed both to supporting the social areas, the local companies and the economy as a whole. For this forthcoming year we are optimistic about BT, paying attention to trends, but also to new opportunities. We maintain our firm commitment in contributing to the relaunch of the business environment,” said Horia Ciorcil\, Chairman of the Board of Directors, BT. According to BT, 2020 was a year of resistance and solidarity, during which the bank launched several measures to support its customers, in addition to those announced through the public moratorium, postponed the loans’ installments and reduced fees and commissions. The assets of BT Financial Group amounted to 107.5 billion lei at the end of 2020. The loans increased to 42.16 billion lei, whereas deposits reached 90.94 billion lei, of which 61.94 billion lei are deposits of individual customers and 29 billion lei belong to legal entities. The results for 2020 consolidate Banca Transilvania's already robust capitalization, reaching an equity of 9.5 billion lei, +12% compared to 2019. The bank has nearly 70% Romanian capital and more than 34,000 direct Romanian individual shareholders.

Banca Transilvania Financial Group's net consolidated profit amounted to 1,457.12 million lei, of which the bank's net consolidated profit stood at 1,197.31 million lei. The bank’s operating profit grew to 2,154.92 million lei, as it took cost-effective measures without restructuring and despite a decline in fee value, during a difficult year. The operational efficiency, measured by the cost / income ratio, was maintained at the comfortable level of 45.3%, due to a well run cost management and efficiency through digitalization of processes, the bank said.

The NPL rate stood at 3.46% as at December 31, 2020, and the coverage with total provisions of the non-performing exposures is 133%, according to the EBA indica-

tor. The bank’s CAR is 19.94% (profit for the year excluded) and 22.23% (profit for the year included).

SUPPORTING CUSTOMERS AND COMMUNITY INVOLVEMENT BT said it was the first banking institution to announce measures for its customers, and more than 41,000 individual and corporate clients had their installments deferred. Over 400,000 credit cards were exempted from the payment of monthly obligations for a three-month period due to the extended grace period. Through IMM Invest, the government program in which Banca Transilvania was the main bank, the bank granted 10,000 loans, supporting companies counting over 70,000 jobs, especially in the following business fields: wholesale and retail trade, transportation and construction. During the state of emergency, the bank contributed with over two million euro to the prevention and limitation of the pandemic, but also to increasing the access to testing and treatment. The bank maintained the pace of recruitment during the first half of 2020, compared to the period January-June 2019, adding 500 people to the team. Moreover, almost 70 branches and agencies in 50 cities were refurbished.

LENDING CONTINUED BT granted 22,000 new loans, amounting to 2.9 billion lei, to over 9,500 SME & micro customers. The SME’s loan portfolio (according to the European definition of SMEs) reached 17.6 billion lei. Over 10,200 customers bought a house with Banca Transilvania’s help, receiving a combined financing of around 2.5 billion lei in 2020. The balance of the mortgage/housing loans reached 13.3 billion lei.

In addition, over 67,300 consumer loans, amounting to 2.4 billion lei, were granted last year, and the balance of consumer loans reached 10.8 billion lei.

REMOTE BANKING ACCELERATED The bank also indicated that 500,000 customers made their first online card transaction in 2020. Almost 340 million transactions were made with BT cards in 2020, + 22% compared to 2019, while 1.1 million people use the BT Pay application for everyday banking. BT Pay contributed to the formation of new behaviors: contactless shopping at retailers, money transfers and donations, all performed through the mobile phone.

A B e veevnetnst

MOST ADMIRED BUSINESS

AW ARDS Gala2021 Enjoy the Quality

* * * * *

WOMEN

Admire the Value

in partnership with

The World Bank’s Women, Business and the Law index reveals wide variations in women’s rights at work. Overall, it says women have only threequarters of the employment rights that men enjoy.

The nations with a perfect score in the Index are Belgium, Denmark, France, Iceland, Latvia, Luxembourg, Sweden and, joining the list this year, Canada, which recently improved parental leave rights. In these countries, the index shows, women who work are on an equal legal standing with men, measured on indicators including access to jobs and protections on gender discrimination and sexual harassment in the workplace.

Although there have been improvements in many areas, with 40 nations enacting reforms to improve gender equality in the past three years, in the Middle East and North Africa, women workers still have just half the legal rights of their male colleagues.

An increasing number of women manage industrial facilities, major companies and build their own successful businesses in Romania nowadays.

They have achieved a high level of recognition.

Therefore Business Arena Magazine proudly announces the upcoming special awards gala dedicated to the ladies that make a difference in business.

Experts agree that Romania has seen some improvement in gender equality in recent years, but efforts must still be made to ensure equal opportunities for men and women in the workplace.

In this context, Business Arena continues its tradition, celebrating women’s achievements and their vital contribution to the success of business and banking activities throughout Romania. On this note, our publication proudly announces the upcoming special awards gala dedicated to the ladies that make a difference in business.

The Most Admired Business Women Awards Gala 2021 will bring together entrepreneurs, investors, business leaders, diplomats, and professionals from a wide range of sectors to celebrate the successes of women in business.

For more information please contact Cosmin Stangaciu at cosmin.stangaciu@business-arena.ro or phone 0755.274.125

BANKING

HEALTH CRISIS TO ACCELERATE CEE BANKING SECTOR CONSOLIDATION

http://www.business-arena.ro

The COVID-19 crisis is expected to accelerate the consolidation of the banking sector in the Central and Eastern Europe (CEE) in the following years, as smaller players might not be able to weather the profitability and capital challenges, according to the latest edition of, conducted in 16 countries, including Romania.

18

Robustness is paramount amid economic shocks and the CEE banking sector is still very fragmented, with a number of players with marginal market share, the study explains.

Romania was one of the busiest markets in the CEE region in terms of banking mergers and acquisitions (M&A), with three transactions between 2019 and September 2020: Olimpiu Balas acquired 63% of Banca Comerciala Feroviara, EximBank Romania took over 99% of Banca Romaneasca and J.C. Flowers bought 100% of Bank Leumi Romania. , the financial sector was among the most active ones last year considering the number of transactions.

“The onset of the COVID-19 crisis found the Romanian banking sector in a strong position compared to the EU average in terms of capital adequacy, liquidity and coverage of non-performing exposures by provisions. The crisis will show its real effects starting from the 2020 financial figures and it will surely impact the banking performance and the default rates.

The consolidation wave in Romania is expected to increase, driven by the current pandemic context and by the fact that over 70% of Romanian banking assets are owned by foreign banking groups, so they are highly connected to the European trends,” said Radu Dumitrescu, Financial Advisory Partner-incharge, Deloitte Romania.

The largest number of deals in the CEE region was reported in the Baltics (six transactions), Serbia (four transactions) and the Czech Republic (three transactions, the same as in Romania) between 2019 and September 2020.

The most active buyers in the region were the Hungarian OTP Bank (three transactions) and the KBC Group (two acquisitions) in the period analysed by the study. On the opposite end, the most active sellers were Société Générale (four transactions), Danske Bank (three transactions) and Piraeus Bank (two transactions)

between 2019 and September 2020.

The CEE banking sector was in solid condition when the pandemic hit, with an average capital adequacy of 20% at the end of 2019, an average return on equity of 12.7% and a historical low level of non-performing loans (NPL) ratio of 7.2%, the study points out. With the deteriorating macroeconomic conditions, the new defaults are likely to increase in the upcoming period. Deloitte research shows that retail NPL ratio is expected to increase by 3% over the next 12-24 months, at the same pace as the corporate NPL ratio, which will come mainly from hospitality, transport and storage as well as real estate and construction portfolios. Retail-unsecured portfolios will dominate the NPL transactions market, which is estimat-

ed to become more active over the next six months.

“It is still uncertain how NPL transactions will develop in Romania, under extremely restrictive tax conditions; current rules oblige loan originators to take up a tax cost of 11% of the loss, which obviously significantly reduces the yield

on transactions. The business environment has been lobbying for the amendment of the rules, with no success so far,” said Alexandra Smedoiu, Tax Partner, Deloitte Romania.

Since the pandemic outbreak, the state support policies have been playing a crucial role in stabilising banks’ asset quality and a premature withdrawal of government supports could lead to sharply increasing default rates in the upcoming period, according to the study.

“Moratoriums introduced by most of the governments might have delayed the reflection on the banks’ balance sheets of the negative impact of the pandemic. It is expected that this was addressed by the banks via provisions and active monitoring of the client base, in order to distinguish viable distressed customers from non-viable ones, including in the perspective of the post-moratorium situation. European Central Bank’s projections on the NPL wave expected for the European banking sector are equally valid for Romania, hence we expect that this will fuel once again the liquidity on the Romanian NPL market, especially if the Government will take on board the European Central Bank’s recommendations of facilitating the utilisation of this instrument by the banks and will amend the tax provisions which are currently impeding on it,” said Andrei Burz-Pinzaru, Partner at Reff & Associates | Deloitte Legal.

The European regulators encourage banks to close monitor in order to identify NPLs and provision early, which is likely to contribute to successful resolution and disposal process. Based on European Central Bank’s (ECB) Financial Stability Review in November 2020, asset quality has already started to deteriorate in Q2 2020 and banks’ loan loss provisions significantly increased in early 2020. Based on the simulation prepared by ECB, without state support, more than 9% of total corporate loans of the eurozone might become distressed by mid-2021, the study shows. , now at its third edition, provides an overview on CEE banking M&A dynamics in 16 countries, namely Albania, Bosnia and Herzegovina, Bulgaria, Croatia, the Czech Republic, Estonia, Hungary, Kosovo, Latvia, Lithuania, Poland, Romania, Serbia, Slovakia, Slovenia and Ukraine.

http://www.business-arena.ro

19

A B magazine

AWARDS for

EXCELLENCE Enjoy the Quality ***** Admire the Value in partnership with

With its strong tradition in creating new opportunities for the business community to express fresh views and ideas, and in recognizing business success and outstanding achievements, Business Arena is pleased to announce the upcoming Awards for Excellence, the latest highlight in the business events calendar. Guests gather to celebrate excellence in business, sports, culture, and community, enjoying the company of friends and industry colleagues.

Innovation, resourcefulness, perseverance and a culture of responsible risktaking have helped many overcome major challenges. Thus, this edition of our awards gala brings recognition to individuals and organizations that recorded outstanding results and achievements during a challenging year 2020.

FIND MORE DETAILS ON OUR WEBSITE AT WWW.BUSINESS-ARENA.RO. For more information please contact Cosmin Stangaciu at cosmin.stangaciu@business-arena.ro or phone 0755.274.125

CRYPTOCURRENCY

BILL GATES NEUTRAL ON BITCOIN BUT SAYS CRYPTOCURRENCY IS AN INNOVATION THE WORLD CAN DO WITHOUT Microsoft founder Bill Gates is no longer a bitcoin bear. He has now taken a neutral stance on bitcoin as an investment. However, as an innovation, he says that cryptocurrency is one that the world would be better off without because it allows for certain criminal activities.

Bill Gates spoke about bitcoin and cryptocurrency in two separate interviews. One was with CNBC where he was asked what he thinks about bitcoin “in the context of climate change seeing how bitcoin takes an enormous amount of energy to digitally mine.” Gates simply replied: “I don’t own bitcoin. I’m not short bitcoin. So, I’ve taken a neutral view.”

“Bitcoin can go up and down just based on the mania or whatever the views are, and I don’t have a way of predicting how that will progress,” Gates continued.

The Microsoft founder added: “I do think moving money into a more digital form and getting transaction costs down, that’s something the Gates Foundation does in developing countries.

But there, we do it so you can reverse the transactions so we have total visibility of who’s doing what. It’s not about tax avoidance or illegal activities.”

Gates has been no fan of bitcoin. In an interview with CNBC in 2018, he, Berkshire Hathaway CEO Warren Buffett, and vice chairman Charlie Munger talked about bitcoin being worthless.

“As an asset class, you’re not producing anything and so you shouldn’t expect it to go up. It’s kind of a pure ‘greater fool theory’ type of investment,” Gates remarked. “I would short it if there was an easy way to do it.” BTC was trading at around $9,300 on that day. Since then, the price of the cryptocurrency has risen almost 511% to $56,805 at the time of writing.

BILL GATES THINKS THE WORLD IS BETTER OFF WITHOUT CRYPTOCURRENCY INNOVATION Another interview where Gates talked about cryptocurrency was with The Wall Street Journal.

Responding to the question, “What’s the one

tech innovation the world would be better off without?” he said: The way cryptocurrency works today allows for certain criminal activities. It’d be good to get rid of that.

However, Gates quickly added, “I probably should have said bioweapons. That’s a really bad thing. We shouldn’t have technology for that.”

According to Forbes’ real-time list of billionaires, Gates ranks fourth with a net worth of $124 billion. The first on the list is Amazon CEO Jeff Bezos with $189 billion in net worth, followed by Tesla and Spacex CEO Elon Musk with $182 billion, and then Bernard Arnault with $159 billion.

Meanwhile, Microsoft has been granted a patent for a “cryptocurrency system using body activity data.” This crypto-mining system leverages human activities, including brain waves and body heat, when performing online tasks such as using search engines, chatbots, and reading ads.

http://www.business-arena.ro

23

REMOTE WORK

MAKING A SUCCESS OF REMOTE WORKING FOR THE LONG TERM

http://www.business-arena.ro

The short-term shift to remote working last year has gradually become a more permanent, fundamental change in the way we work. And many are now realising the potential pitfalls.

24

During the spring wave of the coronavirus pandemic in 2020, almost half of all employees in the UK were working from home at least some of the time. Whilst this was, of course, a scary time for everyone, there was also a sense of banding together, battening down the hatches and maybe even a little excitement at being able to work from home for the first time. Many adapted well to this strange new set-up.

Kitchen tables became digital business hubs and spare bedrooms make-shift Zoom boardrooms.

But that was nearly 10 months ago, and the short-term shift to remote working has gradually become a more permanent, fundamental change in the way we work. And many are now realising the potential pitfalls.

Driven partly by the resurgence of the virus following the summer, and also by shifting attitudes of employers who are now realising they can trust their people to get the job done and remain productive without their watchful eye, remote working is here to stay in some capacity. A recently released survey from KPMG showed how 68 percent of CEOs plan on downsizing their offices to reflect this shift, and it seems that what was the most popular employee benefit of the last decade has been fasttracked some 20 years in the space of 10 months.

That’s all well and good for those who have

adjusted well or have properties large enough to accommodate a home office. But not everyone wants to be working from home. Some miss the buzz of the office and the social aspect of a workplace. Others may miss the ‘me time’ that a commute afforded them.

Indeed, many new members of the work-fromhome community may have contributed to the startling increase in divorce rates and breakups.

MAYBE THAT OPEN-PLAN FAMILY ROOM WASN’T SUCH A GOOD IDEA AFTER ALL Regardless of which camp you’re in, remote working in some form is here to stay. So how can you make a success of it? Here are some pointers from someone who’s been a member of the work-from-home clan for more than two years now.

CREATE A DEDICATED SPACE The biggest change that new work-fromhomers will need to make as a short-term solution shifts into a permanent new reality is creating a space in their home that’s sole purpose is work. Kitchen tables, the sofa or cluttered box room just won’t cut it anymore. Even for organisations that switch to a 3-2-2 model or a variation of it (that’s three days in the office, two working remotely and two days off at the week-

end), it’d be a struggle in terms of professional mindset to move from office to sofa and maintain the same attitude, output and productivity.

A dedicated space helps create a more seamless transition between workplace and home working. It will induce a professional mindset when you enter and aid focus. This dedicated space should ideally be cut off in some way from distractions and general home noises.

I don’t think I would have been nearly as productive over the last two years if every morning was a trip to the kitchen to turn the laptop on and there I stayed until 6 p.m. That close a proximity to the fridge certainly wouldn’t have helped things either!

PLAY AROUND WITH THE AMBIENCE One of the big benefits that many would have enjoyed when starting their first few remote workdays is having total control over the office environment. Radio station? Pick your favourite. Too warm? No need to negotiate opening a window with an always-cold coworker.

For long-term remote working, it’s good to play around with the ambience of your home office to find what works best.

As an example, I always find talk radio is a great backing track for the morning rush to clear the inbox and check on campaigns. But the post-lunch lull requires a lively Spotify playlist at full blast to maintain productivity.

Others find that certain tasks, such as a blog or technical writing, can be easier to focus on with softer background noise such as rain sounds or even a YouTube video of general office background noise (I kid you not, and I’ve tried it, and it does work on occasion).

Have a play around with lighting too. Natural light is always best for alertness and attention, whilst for those who like to work into the evenings, softer lamp light may be less harsh.

Finally, have a think about the temperature of your room. Whilst it’s very tempting to create a snug office that’s always warm, research has found that we tend to lose focus and productivity in rooms that are too warm. After all, if you’re a bit tired after a long drive, you don’t whack the heating on – you open the window for some fresh air.

FORCE YOURSELF TO STAY CONNECTED. Remote working presents a challenge to

both extroverts and introverts.

For the former, not being surrounded by coworkers, a lack of “real” conversations or office socialising are a real problem when it comes to working from home. They thrive on these interactions and, as such, working alone at home can become frustrating and isolating.

On the flip side, for introverts who likely gravitate toward remote working more naturally, there is a danger of slipping into a mindset that starts to resent or even fear the Zoom or MS Teams call sound after a few hours of peace.

For the more introverted, the office forced social interactions. Remote working can quickly see you start to actively avoid the group chats and digital socials.

Whichever camp you may be in – and it can be a bit of both depending on your mood and how fatigued you are – forcing yourself to stay connected is critical for long-term remote working.

AND FORCE YOURSELF TO STOP WORKING, TOO This is probably the biggest problem for the WFH community. For a workforce that was increasingly becoming an ‘always-on’ workforce, working from home has exacerbated the problem - especially when the makeshift workspace was the kitchen table or living room armchair.

But it’s critical for the long-term success of remote working to force yourself to STOP. If your organisation has still enforced a 9-5 or equivalent working hours – just work those hours then shut up shop for the day. If your employers are really forward-thinking and allow for both remote working and flexible hours too, then make sure you’re pacing yourself too.

A recent survey from The Office Group found that working longer hours was the biggest contributor to burnt-out millennials, alongside the inability to separate work and personal life.

Remember, you’re no good to anyone if you burn out from overworking. And it’s detrimental to your physical and mental health. So take a break, try to switch off when your day is done and resist the late-night email check.

The best ways I’ve found to deal with this is actually leaving the house when a particular working shift is done, either to walk the dog or a trip to the shop. It breaks the work mindset and helps you to switch off. Give it a try!

BY ART WILSON

http://www.business-arena.ro

25

REAL ESTATE

BUCHAREST OFFICE MARKET SAW A STEADY RETURN OF DEMAND IN Q4 2020 Bucharest recorded office space transactions involving a total area of 77,000 square meters in the last quarter of 2020, the highest quarterly value of the year, thus bringing the annual volume of transactions to around 237,000 square meters, according to real estate consulting company Cushman & Wakefield Echinox.

Compared to the previous year, office area transaction volume decreased by 39%, while the share of renewal contracts increased from 21% to 45%.

http://www.business-arena.ro

The most important office project completed in the last quarter of 2020 was One Tower, with a leasable area of 24,000 square meters, part of the mixed project One Floreasca City, the total deliveries of new office spaces in 2020 totaling 155,000 square meters, a decrease of 46% compared to 2019.

26

The commercial stock (destined for lease) of office buildings in Bucharest amounts to approximately 2.95 million square meters, other buildings with an area of approximately 150,000 square meters being occupied by the owners, while projects with a total area of 350,000 square meters are currently under construction, being scheduled for delivery between 2021-2022.

In this context, the (contractual) vacancy rate

of office spaces is 12.5%, with a significant difference between class A (9.7%) and class B (20.7%) spaces. At the end of the year, the degree of offices use remained relatively low, with less than half of the employees coming to the office workplace regularly, given that most companies continue to operate in the Work from Home or hybrid systems.

“In the current context, we will see a challenging start to the new year for office space owners, who need to adapt their buildings to convince employees that they can return to the office workplace and work in a safe space from a sanitary point of view. On the other hand, we noticed that an important part of the transactions signed at the end of 2020 were pre-leases, a positive aspect that reveals that certain occupiers notice the favorable context, in which they can obtain attractive commercial conditions and can make an upgrade in terms of location and quality of space occupied,” said Madalina Cojocaru, Partner, Office Agency, Cushman & Wakefield Echinox.

Both developers and investors remain optimistic about the strategic importance of office space, taking into account the continued construction activity on sites, and the important acquisitions signed in the midst of the pandemic, 2020 being a record year in terms of real estate office transactions on the local market.

According to Cushman & Wakefield Echinox, the most important office projects under construction are One Cotroceni Park, J8 Office Park, Globalworth Square, U Center, Miro Offices, Tiriac Tower, Dacia One, Millo Offices, @Expo or Sema London & Oslo, the developers having signed pre-lease contracts for about 60% of the spaces.

BUSINESS

THE DIFFERENCE BETWEEN GROWING A BUSINESS AND GROWING A BRAND Four reasons why entrepreneurs should focus on growing their brand as much as they focus on growing their business.

Growing a brand and growing a business often go hand in hand - but there are some differences. If you Google “the difference between brand and business,” you’ll find tons of results with a myriad of explanations of what actually is brand. They of course work together, but growing each is a slightly different experience.

A brand can typically exist independently of the businesses that operate under its umbrella.

You can have multiple businesses or companies under one brand (look at Procter & Gamble or The Coca-Cola Company). But most of the time, you’re not going to have multiple ventures under one business. A brand is a broader expression of your business, it’s the image or identity behind your business, your ventures, your community. Let’s take a closer look at the difference between growing a brand and growing a business.

BUSINESS IS SALES-FOCUSED, BRAND IS COMMUNITY-FOCUSED The goal of your business is likely to generate income, while the broader goal of building a brand should be to grow a community. That community can of course lend to sales - that’s how brand and business go hand-in-hand, and why both are so important. However, to grow a brand, you’re not focused on the number of products you sell or the number of leads you generate - you’re more focused on engagement, reach, and recognition.

While building a business involves expanding products or offerings, building a brand typically means focusing on a single idea or focus that you want your brand to embody. Your brand

creates a reputation for you and any businesses that operate under that brand. It’s what helps people identify and relate to your business.

BRAND IS LARGER THAN PRODUCT Because building a brand goes beyond generating income or offering new products, it focuses more on public perception and sentiment. It’s not about what you sell, it’s about how you make your people feel. For example, bringing in Coca-Cola again, the sugary, carbonated beverage brings thoughts of unexpected moments of happiness, not because of the product itself, necessarily, but because of the branding around the product.

Many of us have likely seen the Coca-Cola commercials showing joyful people sharing a cola, promoting the “share a Coke” campaign.

It becomes more than a beverage this way, instead, it’s a community for those who love the brand and its products. This is a clear example of how product, business, and brand, work together to create community and sales.

It’s these kinds of campaigns and connections that stand out in people’s minds and create a memorable view of your brand and how your company functions within that brand. It brings your products and offerings together with the connection you need to have with your customers in order to keep them interested in those products and offerings.

BRAND CAN’T BE TAKEN AWAY FROM YOU Your business might fail, but a brand doesn’t work that way. A brand only fails if you fail to

find the right community and continue growing it. If it doesn’t work, you can likely just try shifting the direction of your brand or changing the focus. It can’t ever be taken away from you or stolen, because it’s an expression of your values, views, and goals rather than a physical offering of services or products. Your business may end for one reason or another, but your brand can easily live beyond that. Brand is the face and voice of any companies that exist as part of it. So in that sense, a brand is more of an idea than a tangible item or entity, and no one can take an idea from you! And in that way, growing a brand becomes just as important in any business venture as gowing the company or business itself.

DIFFERENT, BUT EQUALLY IMPORTANT As an entrepreneur, it’s equally important to grow brand and business. Your business allows you to solve the needs within the community your brand creates, and your brand allows you to reach more people whose needs your business can help to solve. Growing both of them simultaneously helps you to reach your business goals. Sure, these concepts can operate independently, but the most successful companies have dedicated communities and recognition around their brand - so take the time to establish and build your brand with your business.

SMART MOBILITY

HYUNDAI MOTOR GROUP TO ACQUIRE CONTROLLING INTEREST IN BOSTON DYNAMICS FROM SOFTBANK GROUP

http://www.business-arena.ro

Hyundai Motor Group and SoftBank Group Corp. (SoftBank) agreed on main terms of the transaction pursuant to which Hyundai Motor Group will acquire a controlling interest in Boston Dynamics in a deal that values the mobile robot firm at $1.1 billion. The deal came as Hyundai Motor Group envisions the transformation of human life by combining world-leading robotics technologies with its mobility expertise. Financial terms were not disclosed.

30

Under the agreement, Hyundai Motor Group will hold an approximately 80% stake in Boston Dynamics and SoftBank, through one of its affiliates, will retain an approximately 20% stake in Boston Dynamics after the closing of the transaction. Hyundai Motor Group’s affiliates - Hyundai Motor Co., Hyundai Mobis Co. and Hyundai Glovis Co. - and Hyundai Motor Group Chairman Euisun Chung respectively participated in the acquisition.

By establishing a leading presence in the field of robotics, the acquisition will mark another major step for Hyundai Motor Group toward its strategic transformation into a Smart Mobility Solution Provider. To propel this transformation, Hyundai Motor Group has invested substantially in development of future technologies, including in fields such as autonomous driving technology, connectivity, eco-friendly vehicles, smart factories, advanced materials, artificial intelligence (AI), and robots.

Advanced robotics offer opportunities for rapid growth with the potential to positively impact society in multiple ways. Boston Dynamics is the established leader in developing agile, mobile robots that have been successfully integrated into various business operations. The deal is also expected to allow Hyundai Motor Group and Boston Dynamics to leverage each other’s respective strengths in manufacturing, logistics, construction and automation.

“We are delighted to have Boston Dynamics, a world leader in mobile robots, join the Hyundai team. This transaction will unite capabilities of Hyundai Motor Group and Boston

Dynamics to spearhead innovation in future mobility. The synergies created by our union offer exciting new pathways for our companies to realize our goal - providing free and safe movement and higher plane of life experiences for humanity,” said Euisun Chung, Chairman of Hyundai Motor Group. “We will also contribute to the society by enhancing its safety, security, public health amid global trends of aging society and digital transformation.”

Masayoshi Son, Representative Director, Corporate Officer, Chairman & CEO of SoftBank Group said, “Boston Dynamics is at the heart of smart robotics. We are thrilled to partner with Hyundai, one of the world’s leading global mobility companies, to accelerate the company’s path to commercialization.

Boston Dynamics has a very bright future and we remain invested in the company’s success.”

“Boston Dynamics’ commercial business has grown rapidly as we’ve brought to market the first robot that can automate repetitive and dangerous tasks in workplaces designed for human-level mobility. We and Hyundai share a view of the transformational power of mobility and look forward to working together to accelerate our plans to enable the world with cutting edge automation, and to continue to solve the world’s hardest robotics challenges for our customers,” said Robert Playter, CEO of Boston Dynamics.

Boston Dynamics produces highly capable mobile robots with advanced mobility, dexterity and intelligence, enabling automation in difficult, dangerous, or unstructured environments.

The company launched sales of its first com-

http://www.business-arena.ro

31

mercial robot, SpotÆ in June of 2020 and has since sold hundreds of robots in a variety of industries, such as power utilities, construction, manufacturing, oil and gas, and mining.

Boston Dynamics plans to expand the Spot product line early next year with an enterprise version of the robot with greater levels of autonomy and remote inspection capabilities, and the release of a robotic arm, which will be a breakthrough in mobile manipulation.

Boston Dynamics is also entering the logistics automation market with the industry leading Pickô, a computer vision-based depalletizing solution, and will introduce a mobile robot for warehouses in 2021.

AN OUTSTANDING PLATFORM FOR BOSTON DYNAMICS’ FUTURE GROWTH Headquartered in Seoul, South Korea, Hyundai Motor Group is a global automotive

group operating in the automobile, steel, construction, machine tools, logistics, and other industries. With more than 16,000 employees working in 40 facilities across 10 states, including its $1.8 billion auto manufacturing plant in Alabama, Hyundai Motor Group is a well-established investor, manufacturer, and innovator in the United States.

Hyundai Motor Group’s decision to acquire Boston Dynamics is based on its growth potential and wide range of capabilities. Boston Dynamics possesses multiple key technologies for high-performance robots equipped with perception, navigation, and intelligence. Also, Boston Dynamics is located in Boston and Silicon Valley, both major robot cluster regions, which is advantageous to sourcing key robotics talents and collaborating with competent partners.

Hyundai Motor Group’s AI and Human

SMART MOBILITY

http://www.business-arena.ro

Robot Interaction (HRI) expertise is highly synergistic with Boston Dynamics’s 3D vision, manipulation, and bipedal/quadruped expertise.

Hyundai Motor Group will provide Boston Dynamics a strategic partner affording access to Hyundai Motor Group’s in-house manufacturing capability and cost benefits stemming from efficiencies of scale. Boston Dynamics will benefit substantially from new capital, technology, affiliated customers, and Hyundai

32

Motor Group’s global market reach enhancing commercialization opportunity for its robot products.

HYUNDAI MOTOR GROUP AND BOSTON DYNAMICS: SPEARHEADING ADVANCEMENT IN ROBOTICS Hyundai Motor Group’s acquisition of Boston Dynamics showcases its continued commitment to achieve free and safe movement for humanity through open innovation.

Hyundai Motor Group believes that the robotics market has potential for significant growth in the future. Hyundai Motor Group plans to invest in logistics robots to enhance efficiency and establish logistics automation, as well as service robots, which have broad usage potential beyond commercial use in areas such as public security and safety. In health-related public services, robots can be used to offer freedom of mobility for the disabled or the elderly.

The investment in Boston Dynamics furthers Hyundai’s portfolio of technology that addresses opportunities for both service robots and

logistics robots. Service robots like Spot have the potential to perform dull, dirty, and dangerous tasks in settings where automation has been challenging to implement. With its computer vision solution, Pick, for depalletizing and its mobile warehouse robot in development, Boston Dynamics will expand Hyundai’s footprint in logistics robots.

Over time, Hyundai Motor Group plans to expand its presence into the humanoid robot market with the aim of developing humanoid robots for sophisticated services such as caregiving for patients at hospitals.

Hyundai Motor Group envisions robotics technologies to lend synergies to the new mobility solutions such as autonomous driving and UAM as well as smart factory platforms it hopes to develop in the near future.

Furthermore, the other Hyundai Motor Group entities are expected to contribute their respective manufacturing, R&D and logistics capabilities to help generate a new roboticsfocused value chain that is anticipated to create synergies with Boston Dynamics.

Hyundai Motor Group has been steadily investing in and developing robots with its proprietary technologies. At CES 2017, Hyundai Motor Company revealed MEX, which helps paraplegic patients walk once more. In 2018, Hyundai Motor introduced VEX and CEX, aimed to help alleviate the burden of workers in the workplace. Hyundai also demonstrated its capabilities in service robots by its pilot program of hotel service robot in June of 2019.

It plans to deploy sales service robots into operation next year. Robotics Lab of Hyundai is devoted to the research and development of robots, while its affiliates continue to work on the commercial production of industrial robots.

The transaction, subject to regulatory approvals and other customary closing conditions, is expected to close by June of 2021.

5G-BASED PRODUCTIVITY BOOST IS EXPECTED TO ADD 1.3 TRILLION USD TO GLOBAL GDP BY 2030 Increased productivity and efficiency resulting from 5G technologies will drive business, skills and services developments worth 1.3 trillion USD to global GDP by 2030, according to PwC’s report “The global economic impact of 5G. Powering Your Tomorrow”.

“PwC’s projections show that 5G technology, used in conjunction with investments in artificial intelligence (AI) and the internet of things (IoT), can offer the potential for the rethinking of business models, quick and efficient services, and new products, with the gains accelerating as of 2025 as 5G-enabled applications become more widespread. Those opportunities will also bring risks, so it is essential to review the way in which cybersecurity is approached, for the safety of all users: consumers, companies and society”, said Mircea Bozga, Risk Assurance Partner, PwC Romania.

Given the scale of the economic potential, the report underlines that every organisation will need a plan for 5G implementation within five years to maximise opportunities. The potential of 5G will also require businesses and governments to consider new regulatory approaches, focusing on the safe use of the technology.

remote care is just one area in which 5G can enable both better health outcomes and cost savings.

The medical areas in which the benefits of 5G will be seen include remote monitoring and consultations, real time in-hospital data sharing, improved doctor-patient communications and automation in hospitals to reduce health care costs.

Other industries analysed in the study show

REGIONAL & SECTOR IMPACTS The impact on national economies is expected to vary by sector, with the USA and Australia projected to gain the most from financial services applications, China and Germany from manufacturing, and India from smart utilities.

At the regional level, North America is predicted to experience the largest GDP increase, followed by Asia and Oceania, then by Europe, the Middle East and Africa (EMEA).

Over half of the global economic impact (530 billion USD) will be driven by the transformation of health and social care within the next ten years. While the acceleration of telemedicine during the COVID-19 pandemic has provided a glimpse of healthcare’s future,

significant potential in: Smart utilities management applications will support the achievement of environmental carbon and waste targets through enabling combined smart meters and grids to deliver energy savings, and improving waste and water management by tracking leakages (330 billion USD). Consumer and media applications include over-the-top (OTT) gaming, real time advertising and customer services (254 billion USD). Manufacturing and heavy industry applications include monitoring and reducing defects, and increased autonomous vehicle use (134 billion USD).

Financial services applications, including for reducing fraud and improving customer experiences (86 billion USD).

http://www.business-arena.ro

33

APPLE REDUCING IPAD, IPHONE MANUFACTURING IN CHINA

http://www.business-arena.ro

APPLE’S SHIFT FROM CHINA IS ALREADY UNDERWAY

34

Apple Inc. (AAPL) reportedly is planning to move significant amounts of iPad and iPhone production outside China, partly because the new Biden administration in the United States is, so far, leaving tariffs on Chinese goods imposed by the Trump administration in place, and partly because rising labor costs are spurring other companies as well to seek lower-cost manufacturing locales. If the reports prove to be accurate, iPad production will commence in Vietnam starting in the middle of 2021, while iPhone production will increase in India. The iPhone 11 already is produced in India, and manufacturing of the iPhone 12 may start there soon. more reliable infrastructure in key areas such as power generation than lower-cost countries. Apple already has moved some AirPods Pro manufacturing to Vietnam, and the tech giant reportedly is planning to expand HomePod mini production and shift some MacBook production there as well.

Meanwhile, some Mac mini production has been moved to Malaysia.

In June 2019, a report emerged that Apple had plans to move between 15% and 30% of its hardware production out of China. The trade war with China begun by U.S. President Donald Trump – which included, at the time, 25% tariffs on devices such as phones, laptops, and tablets made in China – was one motivation for Apple to diversify SIGNIFICANCE FOR INVESTORS its international supply chain.

Apple’s pivot away from dependence on China In that 2019 report, an executive at an Apple as its main manufacturing hub comes with both supplier offered this additional reasoning for pluses and minuses. The major plus is that this reducing manufacturing exposure to China: “A hedges against the possibility that the United lower birthrate, higher labor costs, and the risk of States and China will remain locked in a protractoverly centralizing its production in one country. ed trade war, with U.S.-imposed tariffs persisting.

These adverse factors are not going anywhere Ö Another plus is that Apple will realize savings by with or without the final round of the $300 billion moving production to lower-cost locales. tariff.”

On the minus side of the ledger, Apple is At the time, another supplier warned moving production away from a counthat shifting production out of China try with, as noted above, a wellcould be “painful and difficult.” developed business ecosystem The reason was the vast busiand infrastructure that has ness ecosystem that had served Apple well. As a grown in China to support result, it is possible that Apple, plus that counfurther diversification of producApple’s try’s huge numbers of tion across international boundaries skilled workers and a actually may do the opposite of the expected and increase risk. One example was the recent worker riot in India, due to the missteps of a subcontractor under pressure from Apple to ramp up production rapidly at a new plant, in a country whose laws and culture it did not understand.

STEVE WOZNIAK IS STARTING ANOTHER COMPANY, 45 YEARS AFTER CO-FOUNDING APPLE WITH STEVE JOBS Steve Wozniak is starting a second company, 45 years after he co-founded Apple in Steve Jobs’ parents garage in 1976.

This time, Wozniak is starting a business in the green tech and blockchain space called Efforce, according to a statement.

Efforce, which has been in stealth mode for to a Medium post about the company. almost a year, is a marketplace for corporate Cryptocurrency is highly volatile, it is worth or industrial building owners to have “green” noting. projects funded.

“In these difficult times, many small compaAccording to Efforce, “investors can particinies are struggling. They can’t afford to switch pate in energy efficiency projects buy acquiring tokenized future savings,” while companies benefit from such STEVE WOZNIAK improvements “at no cost.”

Using blockchain, “a smart contract redistributes the resulting savings to token holders and the companies without intermediaries based on exact consumption/savings data.”

According to Wozniak, “energy consumption and CO2 emissions worldwide have grown exponentially, leading to climate change and extreme consequences to our environment. We can improve our energy footprint and lower our energy consumption without changing our habits. We can save the environment simply by making more to LED lighting, streamline production processenergy improvements,” he said a statement es, or even insulate to conserve heat, all of about the company. which could save them money in the long Wozniak created Efforce “to be the first term,” Jacopo Visetti, project lead and codecentralized platform that allows everyone to founder of Efforce said in a statement. participate and benefit financially from world“Efforce allows business owners to safely wide energy efficiency projects, and create register their energy upgrade project on the meaningful environmental change,” he said. web and secure funding from all types of The company’s cryptocurrency token, tradinvestors around the world. The companies will ing under the token named WOZX, was made then have more available cash to use for other public on Dec. 3 on HBTC, a marketplace for critical projects such as infrastructure or hirdecentralized currencies, and will launch on ing,” Visetti said.

Bithumb Global, another marketplace for Today Wozniak’s first venture, Apple, has a decentralized currencies next week, according market cap of more than $2 trillion.

http://www.business-arena.ro

35

special section

TOP BRAND

THE NEW DB KIND OF TWO TOURBILLON

http://www.business-arena.ro

De Bethune presents a watch endowed with two faces.

Two dials, two identities.

38

Double-sided watches hold a special place in the realm of highly complicated watches.

Beneath the apparent simplicity of this timepiece, De Bethune has clearly not taken the easiest path with this model involving two dials that embody a real watchmaking challenge.

This was an idea that had been taking shape for many years in the mind of Denis Flageollet, who was convinced that it would offer him an unprecedented field of research and the opportunity to provide a different, contemporary interpretation. Just as with the invention of his silicon balance and balancespring, as well as the famous floating lugs, it would enable him to make another contribution to the advancement of horology.

The DB Kind of Two Tourbillon is perfectly reversible and can be worn on either side according to the mood of the moment. This model houses a highly sophisticated mechanism based on a complex system of gears and pinions arranged on the front or back of the watch, and which enables the hands to turn in the right direction, regardless of the dial chosen.

Central seconds on one side? Shift the display of this indication to 6 o’clock on the other? Add a tourbillon that would be invisible on the other side? Opt for a modern or more traditional design? The initial inspiration was to create a watch with two very different identities.

The front side of the DB Kind of Two Tourbillon displays a dial featuring a sleek, contemporary design, with central hours and minutes hands as well as a tourbillon at 6 o’clock, complete with a 30-second indication.

Extensive work has been done on integrating polished, curved shapes, matt or glossy components, different thicknesses and levels, thereby creating a sensation of ample space and optimal volume, given the minimum height

L

U X U R Y

& LIFESTYLE pages 38 - 71

available for a tourbillon watch. A new type of deltoid-shaped bridge – this time perfectly symmetrical – is positioned in the centre, like an isosceles triangle that contributes to the overall sense of harmony.The other side reveals a dial based on more traditional aesthetic inspiration, with a finely handguilloché central part surrounded by the numerals already featured on the dials of De Bethune models such as the DB8 and DB10. The tourbillon with its seconds has vanished, and on this face the hours, minutes and more surprisingly the seconds hands are all centrally positioned. This represents an extremely subtle technical challenge that is not necessarily perceptible at first glance, and therein lies the elegance of this timepiece.

Limited to 10 pieces per year. The price of the model is CHF 215,000 (excluding taxes)

http://www.business-arena.ro

39

MB&F HM9 “SAPPHIRE VISION” REVEALS THE HEART OF THE HOROLOGICAL MACHINE

http://www.business-arena.ro

The new model is being launched as a series of four limited editions of five pieces each, differing in terms of their materials and colors.

Two are in rose gold with either a NAC-coated black or PVD-coated blue engine; two others are in white gold, using either a PVD-coated purple or rose-gold-plated engine.

40

For all the troubles 2020 presented for many watch brands, a few of them, like Swiss independent MB&F, nevertheless had a landmark year in terms of releases. The fan-favorite maison unveiled an array of new projects and collections, among them new yellow gold and sports-focused Legacy Machine Perpetuals, collaborative watches and clocks with H. Moser & Cie. and Watches of Switzerland, respectively, and two animal-inspired catalog updates, the HM3 Frog X and HM10 “Bulldog,” MB&F and its well-regarded founder, Max Büsser, frequently found themselves at the top of watch collectors’ minds and in headlines during the turbulent year.

Büsser and his team, many would be heartened to know, show no signs of slowing down in 2021. Last week, revealed its latest “Horological Machine,” the HM9 “Sapphire Vision.” Longtime readers of WatchTime and fans of the brand may remember the original HM9, dubbed the “Flow,” from 2018. This latest model, the HM9-SV, uses that same base design, differing — quite obviously — in its use of a primarily sapphire case in place of the previously mostly metal construction.

http://www.business-arena.ro

41

The movement is composed of 301 individual pieces, including 52 jewels, and features the two aforementioned, fully independent balance wheels with planetary differential on either side, dual spherical propellers on its bottom side, and shock-absorbing helicoidal springs linking the movement to the case. The caliber is powered via a single mainspring barrel storing a 45-hour power reserve, and has a slower frequency than most watches, beating steadily at 18,000 vph.

The HM9 “Sapphire Vision” models are available now, with inquiries being taken directly through MB&F’s online store, the Mad Gallery, here. Some of the models will likely be seen at boutiques later in the year. As of now, pricing is set at $440,000.

The brand calls its previous HM9 movement “the most beautiful movement MB&F had created to date.” With that being the case, “What other logical step was there to take [then], if not to encase the engine in a transparent sapphire crystal shell?” And that is just what MB&F did.

A closer look at the watch reveals that its namesake sapphire case is

secured via various pieces of precious metal, providing the 57-mm x 47-mm x 23-mm oblong timekeeper a very cool, mechanical look. Its most prominent aspects include its dueling balance wheels that operate independently of each other and are found on each flank of the watch. A central body piece hosts the majority of the movement and hence the rest of the watch.

LUXURY & LIFESTYLE TOP BRAND

BIG BANG MP-11 MAGIC GOLD Two new cutting-edge cases for a unique engine-inspired movement

http://www.business-arena.ro

Hublot reasserts its unrivalled expertise in cutting-edge materials by housing its MP-11 manufacture calibre in two new exclusive cases, showcasing its scratch-resistant Magic Gold alloy and the transparency of its high-tech synthesis technology Blue Sapphire. The brand is offering enthusiasts two new versions of its Big Bang MP-11 watch, an instrument with a spectacular look which reveals its seven in-line barrels – which guarantee an unrivalled power reserve of 14 days – through the open dial.

By marrying its famous MP-11 manufacture movement, characterised by its atypical and highly visual construction, with two materials developed by our engineers – Magic Gold and Blue Sapphire –, Hublot once again brilliantly illustrates its "Art of Fusion". The art of being avant-garde, different and unique.

42

The Big Bang MP-11 14-day power reserve Magic Gold, available as a limited edition of just 50 pieces, reinterprets the ultra-technical and contemporary design of the Big Bang case in the world's first ever version of scratchresistant 18-carat gold, an alloy invented and patented by Hublot.

To achieve this unprecedented resistance in the traditional world of precious metals, the brand's engineers have combined pure gold with boron carbide, an extremely hard high-tech ceramic. The exclusive colour of the Magic Gold case is enhanced on the bezel of the watch, by the contrast with the six H-shaped black-coated titanium screws. The marriage of an 18-carat gold case and a black rubber strap serves as a reminder that Hublot was the first brand, in 1980, to boldly combine these two materials on the same watch, at a time when these two materials were considered to be incompatible!

To enable energy to be transmitted between the horizontal barrel arbor and the vertical gears controlling the hour and minute display at 12 o'clock, the engineers made use of a system rarely employed in watchmaking: a 90-degree helical worm gear. To create an aesthetic balance with this helical gear, which is visible at 10 o'clock, the balance was moved on the dial side in a symmetrical position at two o'clock.

LUXURY & LIFESTYLE

TOP BRAND

DESIGN WITH A BITE: FIVE TIMEPIECES WITH ANIMAL ALLURE Dangerous creatures have always held a magical attraction. In this feature from the WatchTime archives, we look at five exciting horological creations that reveal this fascination.

A snake on the wrist is better than two in the bush – especially if it’s made of precious materials, tells the time and comes from the house of Bulgari. The flexible Serpenti watch coils around the wearer’s wrist just like a real snake.

famous Parisian watch and jewelry house since 1914.

A wildcat made of precious metal can threaten the bank account of anyone who intends to buy one – and a panther would not be such a thrilling watchmate if its elegance were not paired with the ferocity of the predator’s face. The Révélation, the newest panther watch from Cartier, artfully reveals its charms thanks to a spectacular hourglass feature. Moving the dial causes tiny gold beads to fall from top to bottom to slowly form the panther’s face, and gradually have it vanish again.

Another wild feline inspired the imagination of the designers at Jaquet Droz. A delicate miniature

http://www.business-arena.ro

Bulgari: The Serpenti Spiga Ceramic combines black ceramic, rose gold and diamonds. Quartz movement. $12,400.

44

The rounded triangular shape at one end is both the watch case and the head of the reptile.

Bulgari introduced the first Serpenti watches in the 1940s. Dangerous creatures have long fascinated watch designers. Cartier has a tradition of featuring predators – the panther has occupied a fixed place in the repertoire of this

Cartier: The Révélation contains tiny gold beads that come together to form a panther’s face. Rose gold with diamonds.

Hand-wound Caliber 430 MC. $112,000.

make each one of the 28 pieces a unique specimen.

The wolf on the dial of the ArtyA Wolf Tourbillon 1/1 has an even more aggressive look. Belgian artist Bram Ramon is behind the complex decoration of this one-off piece, with a dial that features floral ornamentation and an impressive wolf’s head, combined with engraving work and miniature sculpture. The Wolf watch design – with its medieval touches and biker style – is a potent mixture of rock and roll, mythology and fine craftsmanship, a typical combination for ArtyA, enhanced here with the addition of a flying tourbillon. The wild wolf makes this Swiss timepiece into an expressive piece of jewelry for tough guys.

Jaquet Droz: The Petite Heure Minute Lion in rose gold features a painted lion gazing out from the dial. Automatic movement 2653.P. $32,200. portrait of a lion’s face is painted on the enamel dial of the Petite Heure Minute Lion in exquisite detail, within the tiniest space. Jaquet Droz celebrates the talents of fine crafts-men who

ArtyA: The Wolf Tourbillon 1/1 is one-ofa-kind with a steel case, gold inlays and an exclusive ArtyA hand- wind movement with flying tourbillon. $180,000.

An animal that evokes fear and fascination was transformed into a timepiece by the creative Geneva watch brand MB&F, in collaboration with the clockmaker L’Epée 1839.

The spider clock Arachnophobia is designed as a table or wall clock – too large to be worn on the wrist. But the godmother of the eight-legged metal clock creature, whose body contains the timepiece, is many times larger. The Arachnophobia was inspired by the 9-meter-tall spider sculpture “Maman,” created by FrenchAmerican artist Louise Bourgeois, which exudes a feeling that’s both protective and threatening.

The Arachnophobia embodies the fine line that exists between the macabre and elegance.

http://www.business-arena.ro

45

LUXURY & LIFESTYLE

TOP BRAND

BULGARI - LVMH WATCH WEEK 2021

BVLGARI DIVAS’ DREAM PEACOCK COLLECTION The new Dream Peacock models of Divas Collection blend the enchanting colors of a peacock with prestigious Swiss watchmaking and decorative arts.

Inspired by the rich feathers and iridescent colors of peacock tails, three new models are joining Divas' Dream collection. Let's talk a little bit about the art known as feather inlay before moving on to models. feather marquetry, a decorative art technique from ancient times, is known for its popular application in Renaissance Italy before it was revived by Bvlgari in the 1970s. After selecting the feathers that show the best color and texture for the performance of the art, the feathers are restored to their natural shine with an antique brass steam engine. The feathers are then cut, glued, and joined together to create the intricate mosaic pattern.

DREAM PEACOCK DISCHI This first model in the new collection comes in a 37mm diameter case made of 18K rose

http://www.business-arena.ro

Dream Peacock Dischi

48

gold. There are 440 diamonds and 25 blue sapphires in the lugs (designed in a fan shape as the trademark of the case), bezel, crown, and dial. In the dial without classic hour/minute hands and decorated with natural peacock feathers, time is displayed by the rotation of two different discs. The new model, which is powered by the Caliber BVL 308 automatic movement that is equipped with this rotating disc system of the brand, is accompanied by a blue alligator strap and a pink gold folding clasp with diamonds. The list price for the model is 55,000 EUR (excluding taxes).

DREAM PEACOCK DIAMONDS The model, which is one of the unique examples of watchmaking and jewelry, is home to a magnificent peacock figure, hand-painted in 14 different shades of blue and green enamel on

Dream Peacock Diamonds

http://www.business-arena.ro

49

its dial. Placed against a white mother-of-pearl background with pink gold diamond stars, the body of the peacock is created using champlevé enamel. In this model, champlevé is used to create miniature golden fan-shaped chambers surrounded by blue enamel or other cells marked with diamonds and filled with green enamel.

Accompanying the 37mm rose gold case, the striking rose gold bracelet consists of articulated fan-shaped pieces set with diamonds. There are a total of 1452 diamonds

Dream Peacock Tourbillon Lumière

on the case, bezel, and bracelet. The list price for the model powered by the BVL 191 automatic movement that offers 42 hours of power reserve, is EUR 80,600 (excluding taxes).

DREAM PEACOCK TOURBILLON LUMIÈRE Among the newly introduced models, the Peacock Tourbillon Lumière, the most sophisticated and striking model both mechanically and aesthetically, features an impressive skeletonized Tourbillon movement with decorative feather inlay and snowembellished diamonds. The gold background underneath the dial is decorated with contrasting areas of laser-cut and hand-polished surfaces and sandblasted stripes before fanshaped cells are applied. The inner area of the fan-shaped pieces framed with diamonds decorated with snow patterns is decorated with peacock feathers. On the upper part of the dial, the stars decorated with small gold diamonds in the empty spaces of the skeletonized dial appear to be floating. Each dial is made by a single craftsman and usually takes six weeks to complete.

The Caliber BVL208, which was designed and produced in-house by Bulgari, powers the magnificent model. The hand-wound movement operates at a frequency of 3Hz (21.00vph) and offers 64 hours of power reserve when fully wound. The Peacock Tourbillon Lumière, presented with a blue alligator strap with pink gold folding buckles with brilliant-cut diamonds, is limited to 10 pieces. The list price for the model is 157,000 EUR (excluding taxes).

HOW TO MAKE THE RIGHT CHOICE WHEN BUYING A SUIT JACKET A symbol of absolute formality, the suit jacket became one of the most appreciated pieces in business attire. This is the reason why it has been transformed through different cuts and materials, the shape of the lapels, number of buttons or pocket styles, and imagined in a variety of versions for different occasions or moments of the day. You only need to know how to choose the right style for the right moment or dress code. In order to achieve this goal, you have to keep in mind a few smart tips on choosing the right suit jacket.

O UTFIT: TRENDS BY A DINA B UZATU P HOTOS BY VALI B ARBULESCU

http://www.business-arena.ro

- The right jacket is the one which suits you best, not only in size but also in style.

- With a single-breasted coat and chinos or jeans, you can build a modern smart-casual outfit.

- You always need a tweed coat in your wardrobe. No matter if you wear it with classic business trousers or any other type of pants, this coat will add an interesting, country feel to any outfit.

- For black-tie events, you need a dinner jacket.

- A blazer is a must in any smart-casual wardrobe. You can wear it with jeans and a T-

50

shirt, or chinos and an Oxford shirt, depending on the styling effect you want to achieve. The blazer has unlimited versatility.

HOW TO WEAR THE BUSINESS COAT The ideal candidate for your office attire is the single-breasted coat in a neutral shade. You can wear it in a suit, with matching trousers, a classic shirt, and Oxford shoes, for a complete business suit. But also you can leave behind the rigid formality of the business attire and build a nice smart casual outfit mixing your coat with contrasting color pants - chinos or jeans. Use a shirt and shoes in a shade complimenting your coat color.

For instance, you can wear a navy or black coat with a light color shirt, beige trousers, and brown shoes. In terms of materials, choose linen in

http://www.business-arena.ro

51

neutral or pastel shades, for summer, and wool coats, in dark colors, for winter.

THE TWEED JACKET, A GREAT ALTERNATIVE TO THE CLASSIC SUIT JACKET When you want to make a statement without crossing the line, the tweed jacket has it all. It is casual enough, but still elegant and its eyecatching texture grabs everyone's attention. But keep in mind that it is appropriate only for the cold season events. You can wear it with matching trousers, a white shirt and bow-tie at a festive event which takes place in an informal environment. You also can include it in an urban outfit, with dark jeans, a light shirt, and Brogues.

WHEN TO WEAR A DINNER JACKET Definitely when on your event invitation it's mentioned the black-tie dress code. This time you'll need a dinner jacket to value your style. The best options come in black and navy, but you can still go for Bordeaux or dark green if you're in the mood for

color. It is mandatory to wear it with black trousers, a white shirt, a self-tie bow-tie, and Oxford shoes. You can choose either peak lapels, especially if you have narrow shoulders, because they will add dimension to your chest and shoulders area, or you can go for shawl lapels, which are more elegant and appropriate for broad shoulders because they balance the angular body shape.

WHY YOU SHOULD CHOOSE THE BLAZER When a sack coat is too formal or a shirt with a cardigan is a very casual combo, the blazer is that element of balance. You can wear it over a shirt, with chinos and loafers, in a versatile smart-casual outfit. Go for the classic dark blue blazer especially during autumn and choose subtle shades of blue, yellow, or beige for summer.

Included in the right styling equations, the blazer is the key piece for a sophisticated look.

We are waiting for you in our TRENDS by Adina Buzatu shop in Baneasa Shopping City, Road Bucharest-Ploiesti no. 42 D, ground floor and on www.adinabuzatu.ro

PORSCHE AND TAG HEUER LAUNCH STRATEGIC PARTNERSHIP TAG and Porsche were probably meant to be together - finally they tie the knot TAG Heuer is a brand synonymous with cars and motorsport; not just because of the presence of its banners and timing equipment at race tracks the world over, but because of its close relationship with companies like Porsche. That alliance is about to get a lot closer with the announcement of a strategic partnership, which will see Porsche and TAG Heuer directly work with common goals – and the work is being kicked off with the launch of a new Carrera Porsche Chronograph.

At this stage it’s not clear exactly how this partnership will pan out. The watch itself appears

impressive enough, developed with the philosophies and images of both companies in mind, with design nods to Porsche’s motorsport story, including its red, black, and grey racing colours, as well as the same font that’s used for the brand’s interior dials and switches. But we get the impression the new deal might go a step further than just branding exercises, not least because Porsche reminds us that TAG has experience in automotive roles – including the development of its famous turbo F1 engines.

ner – and it still carries much weight today, as evidenced by the excitement generated when Lanzante revealed its first finished TAG-engined 930 Porsche in 2019.

Porsche’s racing work with TAG has also included the launch and organisation of its Carrera Cup and Supercup championships, and the brands were partners in Porsche’s successful Endurance World Championship campaign. Most recently, the companies have joined forces for Porsche’s Formula E team, for which TAG Heuer is title sponsor and timing partner.

So it’s fair to say that a new strategic partner isn’t totally new ground, instead the next logical step in a long standing relationship.

“The dial’s asphalt effect, created especially for this watch, expresses a passion for the road, while Arabic numerals suggest the numbers on the dashboard of fine Porsche sportscar,” the release says in explaining the watch. “The timepiece is presented either on a soft strap in luxurious calf leather and innovative stitching that echoes the Porsche interior or on an interlocking bracelet reflecting streamlined racing design. At the heart of the timepiece is the in-house Calibre Heuer 02 manufacture movement with an impressive 80-hour power reserve.”

Appropriately lovely, then, and no doubt appropriately priced. We’ll await a TAGbranded Porsche next...

Porsche goes so far to say that it and TAG “jointly developed and produced” the engine that gave McLaren three consecutive F1 world titles, the first with Niki Lauda in 1984, and then two more with Alain Prost in 1985 and 1986. The motor was rated at anything from 750hp to 1,000hp, with the latter the output in qualifying trim when engines lasted only a handful of laps.

As such, the TAG name became as revered in motorsport as that of its Stuttgart part-

SUPER CARS

2021 LUCID AIR DEBUTS WITH 1,080 HORSEPOWER DREAM EDITION After incubating for years, Lucid's luxurious sedan is ready to hit the road with up to 500 miles of electric range.

http://www.business-arena.ro

There's been a whole lot of "believe it when we see it" in the burgeoning electric vehicle market throughout recent years, and Lucid Motors has been one of the poster children of that phenomenon. But the Silicon Valley company is now ready for the world to see and believe. Nearly four years

54

after we first became familiar with the term "Lucid Air," Lucid reveals its production-ready sedan ahead of a Spring 2021 delivery start. With spaceoptimized luxury and available hypercar power on tap, the Lucid Air promises to be a sedan quite

unlike the typical neighborhood family four-door.

Save for the sharp new "Eureka Gold" finish available for the flagship Dream Edition, the production Lucid Air looks much the same as the prototype has for the past four years, not a bad thing as it's a clean, attractive design with a market-leading drag coefficient of 0.21.

On the numbers side, there are some small shifts and additions, including a nominal bump in range-topping power, which rises from the even 1,000 hp quoted previously to 1,080 hp in the Dream Edition. More interesting for everyday drivers are the range estimates, which top 400 miles (644 km) for all three Air models detailed this week, rising right up to a previously unheard-of 517 miles (832 km) for the mid-level 800-hp Air Grand Touring with available AeroRange mileage-extending wheel/tire package. We look forward to seeing what shakes out when the EPA puts the Air range and efficiency to the test.

Integral to all trims of Air sedan is Lucid's "Space Concept," which involves shrinking down the electric powertrain package to create a "full-size luxury-class interior" within the smaller dimensions of an aero-optimized sport sedan capable of serious performance. The space-enhancing design also gives the Air an

http://www.business-arena.ro

55

abyss-like 280-liter frunk that Lucid calls the biggest in its class, teaming with the trunk for 739 liters of total cargo space.

"It’s relatively easy to achieve more range by adding progressively more batteries, but gaining ‘dumb range’ that way increases weight and cost and reduces interior space," Lucid Motors CEO and CTO Peter Rawlinson explained last month.

"Lucid Air has achieved its remarkable range whilst also reducing battery size through its inhouse technology, resulting in a breakthrough in overall vehicle-level efficiency."

The Air is based around a dual-motor, allwheel-drive architecture with 113-kWh battery pack. Depending upon model, that battery power gets funneled toward either mileage-maximizing efficiency or performance-boosting power. On the 1,080-hp Air Dream Edition, it translates to a 2.5second 0-60 mph (96.5 km/h) time and consistent quarter-miles as low as 9.9 seconds, according to Lucid. Top speed is listed at 168 mph (270 km/h).

Lucid credits its 900-V+ electrical architecture and custom lithium-ion cells with empowering the fastest charging tech in the business, estimating charging rates as quick as 20 miles (32 km) per minute. Buyers can get a very practical 300 miles (482 km) of range in a mere 20 minutes of pit stop time when plugged into a DC fast charger.

Lucid US buyers will enjoy three years of complimentary charging at Electrify America's network of fast-charging stations. Lucid will also offer an available bi-directional home charging station.

Speaking of the interior, the Lucid Air does away completely with any hint of analog instruments, interfacing instead with a 34-in curved "Glass Cockpit" 5K display. Physical controls aren't entirely unwelcome, though, as a selection of precision-milled switches and rollers hangs over the retractable central touch display. Amazon Alexa voice control is also available for operating in-vehicle features like navigation, infotainment and climate control and connecting with cloud features like smart home control.

AUTO

THE BASE PORSCHE TAYCAN HAS REAR-WHEEL DRIVE AND AN $81,250 PRICE TAG Porsche's entry-level Taycan EV offers as much as 469 horsepower, and yes, you can get it in pink.

http://www.business-arena.ro

Porsche's newest Taycan is also its least expensive. Officially joining Porsche's US lineup on Tuesday, the entry-level EV -- simply called Taycan -- slots below the 4S, Turbo and Turbo S models, priced from $81,250 (including $1,350 for destination and excluding federal and local tax credits).

The big thing that separates this Taycan from its siblings is its rear-wheel-drive architecture.

While the 4S, Turbo and Turbo S models have a dual-motor setup allowing for through-the-road allwheel drive, the base Taycan has just one electric motor mounted at the rear axle. Powered by a

56

79.2-kilowatt-hour lithium-ion battery pack, this motor produces 321 horsepower and 250 poundfeet of torque in its standard tune. With launch control activated -- part of the optional Sport Chrono pack -- those numbers increase to 402 hp and 254 lb-ft while running overboost.

For an additional $5,780, buyers can opt for the Performance Battery Plus specification, which upgrades the battery to a 93.4-kWh unit. This means there's 375 hp and 250 lb-ft of torque available at all times, and as much as 469 hp and 263 lb-ft while running launch control.

Interestingly, regardless of battery size and

http://www.business-arena.ro

57

motor output, Porsche quotes a 5.1-second 0-to-60mph time for the base Taycan. For comparison, the Taycan 4S will do the same run in 3.8 seconds, while the Turbo and Turbo S cut that time down to 3.0 and 2.6 seconds, respectively. Top speed for the Taycan is 143 mph, compared to 155 mph for the 4S and 161 mph for the Turbo and Turbo S. One big advantage of the Taycan's single-motor setup is its lower curb weight. At its lightest, the standard Taycan tips the scales at 4,566 pounds -- a 205-pound reduction from the 4S. Adding the larger battery pack brings that base weight up to 4,742 pounds.

No matter the battery size, Porsche says the Taycan can go from a 5% state of charge to 80% in just over 20 minutes when connected to a highspeed DC fast-charger. EPA-estimated range figures aren't yet available, but don't expect any Tesla-beating specs. The Taycan 4S with the larger battery is only rated at 203 miles, though we've found it very easy to exceed the EPA numbers. For the 2021 model year, Porsche expanded its partnership with Electrify America to streamline the charging process.

Pretty much all of the standard Taycan's chassis

hardware is shared with the 4S. Both cars have 14.2-inch front and 14.1-inch rear brakes, though the 4S' are painted red, compared to black on the base car. Those brakes are set behind standard 19inch wheels, wrapped in 225/55-series front and 275/45-series rear summer tires. As with other Taycan variants, Porsche's surface-coated and carbon-ceramic brakes are optional, as are 20- and 21inch wheels.

Everything else carries over from the other Taycan models, including Porsche's latest and greatest infotainment tech with over-the-air updates, Apple CarPlay compatibility and in-car subscriptions.

Niceties like a 19.2-kW onboard charger, head-up display and upgraded audio systems are available, as are a whole bunch of interior and exterior color options, including the fantastic Frozen Berry Metallic you see here. More pink Porsches, please.

The rear-drive Taycan went on sale in China a while ago, and Porsche recently used one to set a Guinness World Record for longest drift with an electric vehicle. If you feel like trying to break that record yourself (don't), base Taycans are available to order at US dealers now.

SUPER CARS

2021 GMC YUKON DENALI GMC introduced the next-generation of its flagship SUVs, the 2021 GMC Yukon and Yukon XL, enhanced by offering class-leading technology and elevated by precisely-engineered capability. You can find more visual details of 2021 GMC Yukon Denali gallery by scrolling up.

http://www.business-arena.ro

All-new interior design across the Yukon lineup, highlighted by a Denali-exclusive interior and a new, class-leading available Power Sliding Center Console.

First-in-class, available, four-corner Air Ride Adaptive Suspension delivers exceptional ride comfort and, when 4WD LO is engaged, allows drivers to raise the body up to 2 inches (50 mm) for additional ground clearance when traveling off-road (late availability).

An available nine camera views, the most in the segment, increase driver awareness, including High Definition Surround Vision, Rear Camera Mirror and GMC’s ProGrade trailering system.

Class-leading available 15-inch-diagonal multicolor Head-Up Display projects speed, navigation, safety features and other driver-centric information when properly equipped.

The most powerful engine in the full-size SUV segment, an all-new 6.2L V8 with Dynamic Fuel Management (standard on Denali) delivers an estimated 420 horsepower, paired with a standard 10speed transmission.

All-new available Active Response 4WDTM System combines technologies including an electronic Limited Slip Differential, to continuously monitor road conditions and react to improve traction, handling and overall control.

Denali’s trademark Galvano chrome grille is larger and more detailed, with a precise dimensional pattern featuring over 10,000 individual reflective surfaces. Advanced lighting technology distinguishes the GMC Yukon Denali from other SUVs. GMC’s C-

58

shaped front lighting signature is conveyed through a prominent “light blade” that delivers uniform LED illumination for the daytime running lamps. LEDs are also used for the headlamps, taillamps, fog lamps and other illuminative elements, with lenses constructed from durable material with an almost crystalline quality.

High Definition Surround Vision camera 15-inch-diagonal multicolor Head-Up Display Rear Pedestrian Alert Fourth-generation Magnetic Ride Control Premium available options, including 22-inch wheels, panoramic sunroof, Air Ride Adaptive Suspension and Active Response 4WDTM System Segment-First Power Sliding Center Console The GMC Yukon’s new first-class interior features a first-ever Power Sliding Center Console, available on Denali, AT4 and SLT. The main storage console between the driver and passenger seats can slide back up to 10 inches (254 mm), offering an expansive storage area that enhances overall storage flexibility and organization.

When the console slides back, drivers gain access to an open space for a purse or bag, and an additional hidden drawer underneath the console’s main storage bin, which provides secure storage and additional peace of mind.

First-Ever Yukon AT4 Following the breakout popularity of the new Sierra AT4 pickup and the more recently launched

http://www.business-arena.ro

59

Sierra HD AT4 and Acadia AT4, the new GMC Yukon AT4 is squarely focused on rugged adventure. GMC will offer the new AT4 sub-brand across all product lines by the end of 2020.

GMC Yukon AT4 provides premium off-road inspired design cues to match its strong capability. The first-ever Yukon AT4 features a unique front fascia that both visually carries the rugged all-terrain look and supports off-road capability. Coupled with the available four-corner Air Ride Adaptive Suspension, the AT4 can raise and offer an additional 2 inches (50 mm) of ground clearance. When at this maximum height, the Yukon AT4 offers a nearly 32-degree approach angle for added off-road capability. AT4 provides a contrast to Denali’s chrome-oriented look around the exterior, with trim characterized by body color or dark accents throughout, as well as a pair of red recovery hooks, similar to the Sierra AT4.

JAGUAR CLASSIC PUTS LE MANS-WINNING C-TYPE BACK INTO PRODUCTION

http://www.business-arena.ro

Jaguar's Classic division will mark the 70th anniversary of the seminal C-Type sports car with a run of eight faithfully reproduced continuation cars.

Designed by the late Malcolm Sayer, who would later pen the E-Type, XJ13 and XJS, the C-Type has come to be regarded as one of Jaguar's most successful race cars.

60

It won on its Le Mans 24 Hours debut in 1951 and again in 1953, plus achieved success in the Mille Miglia, the 12 Hours of Reims and various other national and international sports car events.

The C-Type Continuation will be hand-built to 1953 Le Mans-winning specifications, meaning it will feature disc brakes at all four wheels - a pioneering feature for its era, developed by Jaguar in partnership with Dunlop. This will mark the first time Jaguar has sold a disc-braked C-Type directly, the original cars all having left the factory with drums.

Power will come from a 3.4-litre straight-six engine fed by a trio of period-correct Weber 40DC03 carburettors for a total output of 220bhp. Expect a 0-62mph time of just over 8.0sec and a top speed approaching 150mph, given the recreation will likely match the original's 965kg kerb weight.

Building on its experience pro-

ducing similarly conceived continuations of the Lightweight E-Type, XKSS and D-Type, Jaguar Classic is using archive material alongside digital scans of an original car to precisely replicate its shape and dimensions.

http://www.business-arena.ro

61

Original records kept by Sayer himself, as well as revered engineers Lofty England, Norman Dewis and William Heynes, are said to be influencing the work.

The scanning process also means Jaguar Classic can, for the first time, offer C-Type buyers a digital rendering of their car to aid the personalisation process. Each can be specified in a choice of 12 original colour schemes, with authentic roundels and badging available.

The continuations will be eligible for historic racing and as such can be equipped with an FIA-certified harness system and roll bar.

A dedicated racing event will be staged for all eight continuation cars upon the planned completion of the series in 2022.

Dan Pink, director of Jaguar Classic, said: “Driven by some of the most admired racing drivers in history, the CType laid the foundations for Jaguar’s success in endurance racing and is synonymous with design and engineering innovation. "Seventy years on, Jaguar Classic is proud to be able to utilise the latest innovations in manufacturing technology – alongside traditional skills and unrivalled expertise – to reintroduce this legendary car for a new generation of enthusiasts to enjoy.”

Following a ruling by The Intellectual Property Division of the High Court in Sweden, Jaguar Land Rover has secured copyright protection for the CType on the basis that "creative input to the design of a vehicle can be comparable to that for other works such as statues, paintings or music".

BEST LUXURY CAR

2021 AUDI Q4 E-TRON WILL BE THE CHEAPEST ELECTRIC AUDI This new EV crossover should start around $45,000 and will be the first Audi to use VW's MEB platform. should hasten the pace of EV development, offering drivers more choice, quicker charging, and longer range. It's smaller and cheaper that the e-tron and e-tron Sportback, and it's aimed at the core of the crossover market. The Q4 e-tron was initially previewed by a concept car (pictured) shown at the 2019 Geneva auto show. It will be the fourth electric Audi to come stateside but the first to use VW's MEB architecture designed exclusively for electric vehicles. VW claims that

http://www.business-arena.ro

This story originally appeared in the May 2020 issue of Car and Driver as part of our 25 Cars Worth Waiting For package. Our sneak preview of the most exciting cars coming in the next few

62

years draws on knowledge from leaked productdevelopment plans, spy photos, and loose-lipped insiders mixed in with information that has already been officially released. The reporting for this story was completed in February and early March, before the auto industry began feeling major effects of the coronavirus pandemic. As many automakers are now delaying or pausing development programs, the debut and on-sale dates reported here may change.

The Audi Q4 e-tron is one small piece of the Volkswagen Group's ambitious EV rollout, which

the platform will host 27 different models sold by four brands by 2022. It'll be powered by an electric motor on each axle backed by an 82.0kWh lithium-ion battery pack. Total output should be around 300 horsepower.

While the current e-tron delivers competitive real-world range, Audi needs to figure out how to boost its EPA figures or buyers may ignore the vehicles no matter how good they are to drive.

The Q4 e-tron will compete against the likes of the BMW iNext, Jaguar I-Pace, Mercedes-Benz EQC, and Tesla Model Y. The Q4 e-tron should arrive sometime in 2021 with a starting price around $45,000. That's nearly $30,000 cheaper than the 2020 Audi etron's starting price.

Pricing and Which One to Buy Premium $45,000 Premium Plus $50,000 (est) Prestige $55,000 (est)

LEADERS’ AWARDSGala F INANCIAL

HALL OF FAME 2021 in partnership with

Business Arena Magazine is proud to announce the 2021 edition of its annual event dedicated to the leaders in the financial market:

FINANCIAL LEADERS’ HALL OF FAME 2021

Business leaders from the financial and baking sectors, directors of investment funds and representatives of some of the largest companies in Romania, together with representatives of the local authorities, high government officials and diplomats are invited to take part in this exclusive event.

Digitalization and online access to banking and financial products and services shape the future of the industry, while the coronavirus pandemic has had a significant contribution to speeding up the process.

Operating in a highly competitive environment, banks and financial institutions have made outstanding progress in introducing new and innovative products and cutting-edge technologies in order to adapt their business model to the requirements of the new millennium.

Speaking at last year’s edition, Florin Ganescu, Executive President of the Romanian Association of Banks, emphasized the industry’s efforts to fight the

negative effects of the healthcare crisis. “The financial industry has been acting responsibly in Romania and elsewhere. We expect a lot from people in decision-making positions, but when results don’t come, we can replace their inaction with our actions.” He added: “In the interviews I have given during the Covid-19 pandemic, I insisted on emphasizing the efforts of bank and financial industry employees, who have served their customers discreetly, with responsibility, subtlety and effectiveness.”

As always, Business Arena Magazine is proud to recognize the achievements and successes of banks, financial institutions and business leaders that find the winning strategies in spite of the challenging economic background.

Business Arena Magazine is proud to recognize the achievements and successes of banks, financial institutions and business leaders that find the winning strategies in spite of the challenging economic background.

For more information please contact Cosmin Stangaciu at cosmin.stangaciu@business-arena.ro or phone 0755.274.125

HOLIDAY

WALDORF ASTORIA LAUNCHES THE EXCLUSIVE ITHAAFUSHI -

THE PRIVATE ISLAND

http://www.business-arena.ro

Waldorf Astoria Maldives Ithaafushi has offered guests the opportunity to escape to the unforgettable since July 2019, and just this week the luxury resort launched the exclusive Ithaafushi - The Private Island. Spanning just under eight acres in the heart of the Indian Ocean, it is the largest Maldivian private island and will offer the ultimate escape for the world’s most discerning travelers. Ithaafushi which in Dhivehi, the Maldivian language, is translated to mean ‘Pearl Island’, perfectly represents the isle’s beauty and distinction.

70

For guests seeking unparalleled levels of privacy, personalized service and well, an entire island for their personal use, Ithaafushi - The Private Island is the crown jewel of Hilton's Luxury Brands portfolio in the Asia Pacific. Along with unrivaled privacy and hospitality, it was, “designed for the most discerning of travelers,” said NilsArne Schroeder, vice president, Luxury & Lifestyle, Hilton, Asia Pacific. “The Ithaafushi – The Private Island is the epitome of exclusivity, perfectly placed within one of the most inspirational destinations in the world where a dedicated team anticipates every need and delivers the brand’s elegant and effortless service at every turn.”

Surrounded by never-ending tropical greenery and white sand, the island can accommodate 24 guests across two elegantly designed villas and one sweeping four-bedroom residence. Each accommodation provides guests with direct access to the beach set amongst lush gardens and coconut palm canopies, where endless space abounds. Examined and perfected to provide a true one-of-a-kind experience, guests are greeted by a sense of complete calm and relaxation upon arrival thanks to the properties' attention to design and staying true to the natural beauty of its surroundings. Every inch of the sprawling estate is

meant to be discovered whether on foot, bicycle or on one of the island’s buggies.

With a nod to Maldivian charm mixed with a modern but not over-the-top design, it is just a 40minute ride on one of the resort’s six luxury Ithaafushi Princess yachts or via a 15-minute seaplane flight to Malé. Guests at the island are also just a short five-minute speed boat ride away from the main island which can be arranged by the esteemed Waldorf Astoria Maldives Ithaafushi’s Personal Concierge team.

The undisturbed paradise from its tranquil turquoise-blue waters to its pristine surrounding beach, provides the utmost discretion where ultimate luxury awaits. Furthermore, guests are ensured a memorable stay as on the island any desire can turn into reality and curated experiences are only limited by their guests’ boundaries of imagination. “We are committed to making Ithaafushi – The Private Island a highly sought-after, world-class destination for the privileged few,” said Etienne Dalancon, general manager, Waldorf Astoria Maldives Ithaafushi. “We will pull out all the stops to ensure the most memorable stay for our guests, every single time.”

Surrounded by the beautiful Indian Ocean and its sparkling waters, guests are invited to take part

http://www.business-arena.ro

71

in a plethora of watersports, diving activities and yacht excursions during their stay.

Furthermore, whether on one of the sea swings, under the palm hammocks, or sunken loungers next to one of the five luxurious pools, guests are transported from everyday life into nirvana. At the overwater spa, wellness concierges create customized therapies for each individual which will surely soothe the mind and body of each guest. Guests can also go to the meditation and yoga pavilion or their fully equipped gym to take part in an individualized training session with the calming open skies as their backdrop. For a more personalized and secluded adventure, guests can mosey over to a private sandbank to simply take in the astonishing surroundings, a personal yoga session or a beautiful sunset dinner.

One of the unique dining experiences is actually located on the main island where Dave Pynt, the culinary mastermind behind Singapore’s Michelin-starred Burnt Ends restaurant, presents The Ledge and Terra. From elevated Australian barbecue at The Ledge to enjoying the only private handcrafted bamboo dining pods in the Maldives at Terra, culinary innovation meets excellence at one of the 10

specialty dining venues.

While adhering to the Maldivian health and safety guidelines and the industry-leading standards of cleanliness and disinfection of the proprietary Hilton CleanStay program, Waldorf Astoria Maldives Ithaafushi is open for guests to book their little slice of paradise.