Business Arena Magazine nr. 83

E n j o y t h e Q u a l i t y ***** A d m i r e t h e V a l u e *****

No.83/2019 23lei

magazine

pages 04 - 07

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LUXURY & LIFESTYLE

HOW ARTIFICIAL INTELLIGENCE WILL CHANGE YOUR LIFE

TOP BRAND w w w. b u s i n e s s - a r e n a . r o

pages 16 - 23

EDITORIAL

by

Cristian Cojanu

FUTURE HOPES AND THREATS While the European Union leaders are heading for Sibiu for their informal meeting to discuss the future of Europe, it is the future of Romania that looks somewhat worrying to the local business community.

In its latest edition, the Foreign Investors Council’s (FIC) Business Sentiment Index has revealed that companies are still worried about “the quality of regulations and lack of predictability”, while some of FIC’s members are “more skeptical about the further growth in their business.”

The FIC’s report noted: “We are still seeing a consistent number of respondents who are expecting their business to grow and who will continue to invest but there are signs that this trend is likely to inverse.” It added: “By looking at these results we believe we need to sound an early warning that clouds may be gathering on the horizon and the complete lack of predictability we have seen in past years is starting to take its toll.”

Emphasizing that 85 percent of respondents believe “the business environment in Romania has worsened”, the report added: “Following the OUG 79 at end of last year, the OUG 114/2018 has been a heavy hit to important sectors of the Romanian economy and lead to a big plunge in the stock market both because of its provisions but also because of the absolute lack of dialogue and transparency that characterized it.

Businesses now operate in an environment where they expect at any moment an emergency ordinance that can impact their operations and profitability.”

At the same time, the general mood in the economy is changing, and, according to the April 2019 IMF World

Economic Outlook, for economies with robust growth rates in recent years, such as Poland and Romania, “growth is expected to moderate to about three percent over the medium term, reflecting the fading of stimulus from EU investment funds and accommodative policies.”

Meanwhile, Sibiu is working on the final preparations for the informal European Council, bringing together EU heads of state or government, at a time when Romania’s ruling coalition seems to rely more and more on a nationalist, populist and Eurosceptic discourse.

Analysts note that the upcoming European Parliament elections are the first test on whether voters resonate with that message. But before that the May 9 summit will be hosted by President Klaus Iohannis, while the President of the European Council, Donald Tusk, will chair the meeting.

European Commission President Juncker and European Parliament President Tajani will also be present.

The EU leaders are expected to discuss the EU's next strategic agenda for the period 2019-2024 and exchange views on the challenges and priorities for the EU in the coming years.

As usual, Business Arena will continue to keep an eye on all the issues affecting the business community, reflecting its views, hopes and challenges. For more on the most recent developments in business and economy, see this new edition of Business Arena, with the latest interviews and expert opinions.

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

REAL ESTATE

OVERVIEW OF THE BUCHAREST OFFICE MARKET IN 2019 City Rose Park, AFI Tech Park 2 or The Bridge 2 are some of the largest projects that will steal the limelight on the Bucharest real estate market this year. Other office buildings under construction, set to launch in 2019, are Business Garden Bucharest 1, 2 and 3, The Light Phase 1, The Mark, Expo Business Park 1, 2 and 3, Equilibrium 1, Oregon Park Building C or Timpuri Noi Square 3, according to Esop.

Overall the projects add up to thousands of square meters of office or residential space, located in the city center or in the northern part of Bucharest.

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BY CLAUDIA ARITON

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The total office building transaction volume in Romania in 2018 was of 531 million euros, representing a 55% share of the investment volume. In total, investors committed 957 million euros to the local real estate market last year, with the retail and industrial segments occupying the second and third positions in terms of investor interest.

Five of the seven largest transactions pertained to office projects in Bucharest, namely The Bridge, Oregon Park, The Landmark, Campus 6.1 and Crystal Tower. At the same time, the Danone Group’s headquarters building in Bucharest, the Lascar 31 Business Center building, which hosts the European Commission's local office, the Bucharest Corporate Center, situated on Buzesti Street, the former Bank of Cyprus headquarters on Calea Dorobanti and a portfolio of four properties of the East Balkan Properties group have also changed hands in 2018, according to Cushman & Wakefield Echinox. Investors have been interested both in "trophy" assets, built by renowned developers, with a portfolio of international tenants with long-term commitments, and in secondary buildings, which can generate robust returns. “The flow of new investors into Romania is expected to continue, attracted by the higher returns achievable compared to other CEE markets. With this trend, prime yields in the office and industrial markets are expect to compress by between 25 – 50 basis points. This is driven by more prime assets expected to be transacted and a higher level of competition among investors for the best properties. However, for this growth to continue to its maximum potential, it is essential that Romania promotes and contin-

ues its economic growth and does better to give investors confidence in the stability of the business environment,” said Tim Wilkinson, Partner for Cushman & Wakefield Echinox.

In 2019 the Central-North area will dominate the volume of deliveries, with approximately 75% of the spaces announced to be delivered, namely 203,126 sqm, according to the same source. “Considering that 38% of the 2018 deliveries are already leased, some of the companies will prefer to secure contracts in the projects to be delivered in the following year. With a pre-lease level of only 9% in the beginning of 2018, 2019 offers numerous prelease alternatives that are more financially flexible, opportunity window that will only be maintained for a limited time,” said Alexandru Petrescu, Managing Partner at ESOP Consulting.

The Central-West area, with a stock of A Class spaces estimated to exceed 400,000 sqm by the end of 2019, of which over 60% of properties delivered after 2017, is certainly the second largest business area, after the Central-North perimeter, real estate agents announced. “Office requests for areas ranging from 1,000 to 3,000 sqm came from mediumsized companies with between 80 and 300 employees in Romania, as well as large companies with thousands of employees opening several branches in major cities of the country, such as Accenture or Endava, but also from companies that offer personal services to corporate employees. It is noted that the demand in this segment exceeds 70% for big office projects, class A and B, under construction or recently delivered. Significant examples of transactions between 1,000 and 3,000 sqm include companies such as Beler Soft, EGT Romania, Samsung, VEEAM, UiPath, Fitbit,

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General Electric, which rented new spaces in premium office projects such as Aviatorilor 8A, Times Square, Landmark, Metroffice, AFI Park and AFI Tech Park in Bucharest,“ said Alexandru Petrescu. His opinion on the evolution of the real estate market this year is shared by Bogdan Sergentu, Head of Valuations & Consulting, Cushman & Wakefield Echinox: “The local real estate market has continued its positive trend, with a solid demand in all segments, something which was reflected on property values as well. In 2018 we had a consistent activity volume,” he said.

Here are some office projects that have got the public attention in 2019: THE ETHOS OFFICE BUILDING. Situated in the Floreasca area, in Bucharest, Ethos House has an exterior façade inspired by the Renaissance architecture. The building has a leasable area of around 8,000 square meters, distributed on ground floor and seven above-ground floors. The building also provides 100 parking spaces located on two underground floors. The Ethos House is located in the immediate vicinity of Lake Floreasca, Verdi Park and Promenada Mall, said Anastasios Gotsis, owner of project.

ONE VICTORIEI CENTER OFFICE BUILDING IN BUCHAREST (former Bucharest Corporate Center), a business center located in the business center area of the Capital. Located at the intersection of Buzesti and Gheorghe Polizu streets, near Piata Victoriei, with a leasable area of approximately 12,000 square meters, the 13story building was formerly the headquarters of companies such as Generali and IBM. The building, part of the One United Properties portfolio, has attracted new tenants, such as BRD or Food Panda.

AFI TECH PARK 2 OFFICE PROJECT. The total office space provided will reach 200,000 sqm. AFI Park currently includes five office buildings, with a total leasable area of 70,000 sqm, mainly rented to multinational IT&C companies. Separately, AFI Europe will start work on the second building of the AFI Tech Park office project, near the Parliament's Palace.

TIM WILKINSON - PARTNER CAPITAL MARKETS CUSHMAN & WAKEFIELD ECHINOX The company will invest 37 million euro in AFI Tech Park 2, which will bring 25,000 sqm of new office space on the market. The first building in this project, which has 22,000 sqm, was completed at the end of 2018 and is 80% leased, according to company representatives.

CITY ROSE PARK, ON BULEVARDUL EXPOZIŢIEI IN BUCHAREST. GTC plans to start the construction of this new office complex in 2019. The 100-million- euro project will include three new office buildings. The first two buildings will offer 18,300 sqm and 17,200 sqm of leasable space, respectively.

They will require an investment of almost 70 million euro. The first two buildings are scheduled to be delivered in mid-2021, and the third is set for completion in 2022.

OPINION

FOR WHOM BELLS TOLL? Let’s face it, this is not a simple year for Romanian economy.

Amid a surge in national-populism, the economy has been simply forgotten by the people in power in their struggle for the control of the judiciary and the justice system. The real economy was there just to provide taxes to be used to bribe the audience and to buy the loyalty of the troops.

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BY OVIDIU CONSTANTINESCU, FACE PR AND NEWS

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Central Bank governor in the world. As if to properly mark the event, the Romanian Parliament passed a law on the repatriation of Romania’s gold reserve deposited with the But 2019 is a special year for another reaBank of England. The bill was put forward by son. In 2019, we celebrate 10 years since the right honorables Liviu Dragnea, Social the Guinness Book of Records crowned Democrat Party deputy, and Serban Nicolae, Mugur Isarescu as the longest-serving Social-Democrat Party senator.

Under the new piece of legislation, the National Bank of Romania is to repatriate 91.5% of the Romanian gold reserves stored abroad. The opposition criticised the measure as populist, prone to damage Romania’s financial credibility on the international markets, but found itself helpless in front of the PSDALDE voting machine. One may say that this patriotic effusion “bring back our gold” is just another campaign slogan, alongside “Romanians deserve more”, but it is more than that. It’s an insult OVIDIU to the work carried CONSTANTINESCU out by Isarescu during all these

years. Let’s just recall that the gold reserve has been deposited with the Bank of England since 1999, when Romania was facing the deepest post-communist economic crisis.

Liviu Dragnea: “I’ve never heard Mugur Isarescu challenging this bill. Within BNR, there were a lot of people who said many lies, nonsenses, preaching that our ruling program will never work in Romania, and they have been proved wrong. I endorse this bill,” said Dragnea.

In a seemingly unrelated action, Senator Daniel-Catalin Zamfir initiates a parliamentary inquiry into the circumstances surrounding the speculative attack against the Romanian national currency in October 2008. Then, in just four days, the Romanian currency fell from 3.72 RON/EUR to 3.94 RON/EUR, a 5.6 pc fall. Subsequently, on October 6, BNR stepped in and by the end of that month Romania lost nearly one billion EUR. Obviously, one may question the wisdom and usefulness of opening a parliamentary inquiry into an event that happened a decade ago and has already been investigated by the Competition Council. At that time, the Competition Council ruled that there had been no foul play and the Romanian banks didn’t break the competition law.

So, what’s the urgency for another inquiry led by a Senator trained as a civil engineer, who has made attacking the banking system his lifelong undertaking?

Well, there is…Did I tell you that Mr. Isarescu’s mandate at the helm of the Romanian central bank is also coming to an end this year? In the Romanian mandarin culture, a public enquiry commission is not meant to improve (things), but to remove (people). So, the (forgone) conclusion of the parliamentary commission led

by Senator Zamfir is that the 10-year-old Competition Council report – which, accidentally, was supervised and validated by the European Commission – is more-orless a cover-up. According to the parliamentary commission led by the builderturned-banking guru, 10 years ago a dozen or so Romanian banks plotted to fix the ROBOR index and the Competition Council’s Chairman, Bogdan Chiritoiu, did

nothing and, therefore, he has to go now.

BNR’s Nicolae Cinteza has to go too because he was not vigilant enough. In a rare interview, Mr. Cinteaza ridiculed the parliamentary report and the ones who laid siege to the Romanian National Bank.

Borrowing from snooker jargon, this is a three-cushion strike against Mr. Isarescu, in which poor Bogdan Chiritoiu (who usually clicks his heels quite timely and convincing) is a collateral victim. The key word of the report is not “competition” but ROBOR, the interest rate index vilified by the pro-PSD circles as the evil instrument that crucifies the “poor Romanian borrower”. And ROBOR is Isarescu’s business, and therefore Isarescu himself, as a defender of ROBOR and the greedy foreign banks, is unpatriotic and therefore he has to go.

But what are the reasons why Mr Dragnea is so taken by the idea of removing Mugur Isarescu once and for all? There are the obvious ones: the Government badly needs to get its hands on the money printing machine and make it work in accordance with the party’s economic policies, and, secondly, the Government needs a less critical central bank governor.

However, it is my strong belief that the dispute between Mr. Dragnea and Mr. Isarescu has become rather personal.

To start with, BNR is the only major institution of the state that hasn’t been “Teleormanised”, infiltrated by cronies of the PSD chairman: people with fragile academic record, no relevant professional experience, but spineless and willing to execute without remorse whatever the Great Leader orders them to do. So far, the entire institution has stood fast, there are no cracks, and even vice-governor Florin Georgescu “the Red” has not switched alliances, nor did he make any professional compromises. On the contrary. Mugur Isarescu is everything that Liviu Dragnea wants to be and cannot be: respected, knowledgeable, flawless in economic reasoning, professional, well-spoken (in foreign languages too), well-received by foreign dignitaries, a diplomat. Such high standards have to be eradicated.

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BANKING

ALPHA BANK ROMANIA LAUNCHES ITS ONE-BILLION-EURO GLOBAL COVERED BOND PROGRAM

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Alpha Bank Romania has finalized the establishment of its one billion Euro Global Covered Bond, the first covered bond Program established in Romania. According to the bank, the first issuance of 200 million euro is scheduled in the near future.

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Sergiu Oprescu, Executive President of Alpha Bank Romania, said: “We have the pleasure to announce the launch of the first covered bond Program in Romania, an initiative that continues our pioneering tradition in banking, after the launch in 2001 of the first mortgage loan. Through this Program, Romania will be among the countries that have both a modern legislation and an active covered bond market.”

The bank points out that the project is being carried out in collaboration with Barclays Bank PLC who acted as Arranger, PwC as Asset Monitor, Allen & Overy London and RTPR Allen & Overy as Arranger’s Counsels, and Clifford Chance Badea and Clifford Chance London as Issuer’s Counsels. Alpha Bank Romania intends to list the covered bonds issued under the Program both on the Luxembourg and Bucharest Stock Exchanges.

Covered Bonds issued under the Program are expected to be rated SERGIU

by Moody’s.

OPRESCU Covered bonds are a common financing solution in international financial markets, whereby the issuing bank aims to diversify its funding sources and lower their average cost, attracting new funds for the development and expansion of its activities. At European Union level, circa 27% of mortgages from financial institutions are funded by covered bonds, a frequently used solution by all banking systems in Europe.

The covered bonds issued under the Program will be guaranteed, according to Law no. 304/2015, with claims arising from mortgage/real estate investment contracts in progress, but the covered bond issue does not imply any change in the previously agreed terms of the contract with the Bank's Customers or credit-related collateral.

MARIO DRAGHI ECB: EUROPEAN BANKING SECTOR IS OVERCROWDED, NEEDS CONSOLIDATION European Central Bank President Mario Draghi said that the European banking sector is overcrowded and in significant need of consolidation. In a news conference, he said that the banking sector needs to take a series of actions to improve its business model and that its need for consolidation is “very, very significant.”

“There is a relationship between scale and the capacity to undertake the investments that are needed to improve technology and be competitive, especially in certain business models,” the ECB head stated.

Asked about the European Central Bank’s supervisory role in mergers, he said the main priority was for transactions to be successful, meaning not only pleasing to shareholders but also creating a strong business entity.

Answering a question, Draghi said, without referring to specific transactions, that the bank had no preference between cross-border and national banking mergers. (Reuters)

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MARIO DRAGHI, PRESIDENT OF THE ECB, HELD A NEWS CONFERENCE ON THE OUTCOME OF THE GOVERNING COUNCIL MEETING

ADRIAN VASILESCU, BNR: THE NATIONAL BANK GAVE UP ON THE MORAL SOLUTION IN RELATIONSHIP WITH BANKS AND APPROVED THE LEGAL SOLUTION In order to make banks finance themselves from the population and companies, the National Bank gave up the moral solution that implies direct dialog with all banks, and applied a legal solution, by reducing liquidity given by the National Bank as loans to the bankk, “making them turn to population and companies, and force them to raise interests on deposits”, Adrian Vasilescu, adviser of the National Bank’s Governor Accroding to him, the Finance Ministry is the only institution that has legislative initiative and can bring forward proposals for emergency ordinances or legislative projects.

But the rules of economy are above state institutions. “Above the government’s, the parliament’s and the BNR’s decisions, there is a supreme court – and that means the business environment. The law of supply and demand is like the law of gravity – leaders in history have tried

to take measures to suppress it, but it’s impossible”, he added.

Vasilescu approached the stressful issue of the level of financial intermediation, the lowest in the EU- below 20 percent. “Others have as much as 100 percent”, Vasilescu explained. “A requirement the society has for banks is to be able to take out loans and pay them off as people do abroad – but in order to be able to do so, we would need a financial intermediation level like the one in other countries”, Vasilescu added. When we talk about interest rates we can’t compare with western European states, but we can compare with our neighbors, the official stated. Inflation is strictly related to interests levels and to the measures taked by the Govermen. “Any country wants a 2 percent inflation rate – it’s considered to be the optimal level. And we had this level for a while in the last years, but in the fall of 2017 it almost doubled and the

ROBOR started climbing too – and that’s when the Finance Ministry started to blame the BNR for not doing its job properly.The only objective cause for the rise in inflation and the ROBOR were the inflationist measures taken by legislators – we suddenly found ourselves facing an issue that we couldn’t control: the nature of economics. Vasilescu pointed out that Romania has a EUR 35 billion capital deficit due to companies that are in insolvency or bankruptcy. “And business with negative capital can’t qualify for bank loans in order to increase financial intermediation. An average Romanian households spends below RON 3,000 monthly – but they spend less on clothing and shoes than on alcohol and tobacco”, Vasilescu concluded.

PRESTIGE PAGE

FINANCING PROGRAM FOR ENTREPRENEURS -

“factory by RAIFFEISEN BANK”

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Hundreds of entrepreneurs entered their names on the www.raiffeisenfactory.ro platform during February – March 2019, to take part in the second edition of the factory by RAIFFEISEN BANK project competition. This year, Raiffeisen Bank is going to grant up to 100 financings, up to 50,000 euro each, to startups, in support of new business ideas, and companies under five years old developing innovative services or products.

Participants in the competition have a dedicated credit simulator so they can identify the type of loan that suits their needs. Loans can be used for investments or for current operations, with maturities of up to five years, advantageous interest rates, and guarantees from the European Investment Fund, through its COSME* program.

Therefore, Raiffeisen Bank encourages business creation and development, and the

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selected entrepreneurs are going to benefit from guidance when they receive their financing so their businesses can become sustainable.

“We have reached the second edition of our factory by RAIFFEISEN BANK program and we are providing support to entrepreneurs with a new offer and an extended benefit package, both for those who want to start a new business and for those who plan to develop an innovative product or service.

The financial component is important, but our post-financing support is just as important, with interactive workshops and free guidance sessions. This allows us to stay close to the entrepreneurs and provide assistance so they can overcome the challenges their businesses may encounter,” said Vladimir Kalinov, Vice President Retail, Raiffeisen Bank.

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VLADIMIR KALINOV, VICEPERESEDINTE RETAIL RAIFFEISEN BANK

In April 2019, Raiffeisen Bank experts evaluated all 315 projects entered in the factory by RAIFFEISEN BANK startup program. One hundred sixty-five projects are now in the final stage of the program, when interviews are held so each business idea is presented to the bank’s specialists and experienced entrepreneurs. At the end of May, a maximum of 100 projects will be selected for financing in 2019.

To build or develop their businesses, entrepreneurs can find a set of useful resources for guidance and inspiration at www.raiffeisenfactory.ro, as well as video testimonials with a number of entrepreneurs financed during the first edition of the program, offering suggestions and new

ideas. In addition, the About the competition section provides all the necessary information for prospective participants. *Financings are granted based on the guarantees provided by COSME and the European Fund for Strategic Investment (EFSI), as stipulated in the investment plan for Europe. EFSI’s objective is to support financing and implementation of productive investments in the European Union, and to ensure better access to financing.

Find more details about the factory by RAIFFEISEN BANK program participation requirements in the competition’s regulations: https://www.raiffeisenfactory.ro/download/regulament_factory_ed2_2019.pdf

BANKING

BANCA TRANSILVANIA REPORTS SOLID Q1 LENDING GROWTH

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After the integration of Bancpost at the end of 2018, Banca Transilvania started 2019 with positive financial results. In February 2019, BT celebrated its 25th anniversary since a group of Cluj entrepreneurs laid the ground for one of the most successful Romanian capital growth stories.

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During the April 24 General Meeting of Shareholders, the bank’s shareholders approved the proposal of Banca Transilvania’s Board of Directors regarding the 2018 profit distribution in the form of a gross cash dividend of 0.17 lei/share.

Shareholders also approved a share capital increase of around 400.8 million lei through the issue of the same number of free shares. Banca Transilvania has 63.7 percent Romanian capital and more than 30,000 Romanian individual shareholders.

As of March 31, 2019, Banca Transilvania’s assets amounted to 75.9 billion lei, whereas loans went up to 37.04 billion lei. Client deposits reached 62.7 billion lei, of which 43.45 billion lei are deposits from individuals and 19.24 billion lei represent deposits from companies.

Banca Transilvania’s net profit stood at 436.07 million lei, mirroring the efficient business streamlining. The bank’s cost/income ratio is at a comfortable level of 47 percent, calculated with an annualized impact of the contribution to the Bank Deposit Guarantee Fund and to the Resolution Fund. “We have focused on a fast and efficient integration of Bancpost with Banca Transilvania, precisely because we want to keep the focus ÖMER on business and the support of Romanian econoTETIK my and entrepreneurs.

Our plan worked just fine, and we had a first quarter of 2019 with a solid growth of the lending activity and of the number of transactions we carried out for our clients. 42,000 loans to companies and individuals were granted by BT in the first quarter. In terms of transactions, February witnessed a record level of more than three million/day,” said Banca Transilvania’s CEO, Ömer Tetik The bank granted around 18,000 fixed-interest loans to individuals in the first quarter, while the balance of mortgage/real-estate loans stood at 11 billion lei. In turn, the SME loan portfolio amounted to 16 billion lei. At the end of March, BT’s portfolio included 3.8 million cards, accounting for a 21

percent market share. The bank indicated that nearly 61 million transactions were performed in Q1, 2019 with BT cards. The BT Pay app has more than 220,000 users. There is a continuous growth in transactions: the number of phone-assisted payments and money transfers among the app users is up 32 percent in Q1 as compared to the last quarter of 2018; The number of users of BT24 Internet Banking exceeded 1.18 million, representing a 20 percent increase from the same period of 2018, while there are 634,000 Mobile Banking users, a 55 percent increase. Transaction volumes gained 25 percent via Internet Banking and soared 101 percent via Mobile Banking compared to the same period of last year. The bank also indicated that the number of Q1 cash deposit operations via BT Express Plus exceeded 1,300,000, accounting for nearly 450,000 operations/month.

In March 2019, BT launched the BT Open Banking platform (BT Api Store), which allows fintechs and other technology companies to test the integration with BT, in order to present the bank’s services, such as: online display of account balances, transaction history and initiation of transactions through external platforms towards Banca Transilvania.

The most recent step towards “going digital” was taken in April this year, when BT became one of the Instant Payments pioneers in Romania. The service provides 24/7 money transfers (RON) in less than 10 seconds between the banks that have joined this system.

At the end of the first quarter, the bank’s non-performing exposures, according to EBA, amounted to 4.9 percent. The total provision coverage ratio, as per the applicable EBA standards, was 94 percent. If the collateral is also taken into account, the coverage ratio amounted to 134 percent. The bank’s CAR, without the current year profit, was 18.67 percent, and 19.67 percent with the profit included. In January 2019, Fitch Ratings affirmed the Longterm Issuer Default Rating (IDR) rating of Banca Transilvania at 'BB+', with a stable perspective, as well as the Viability Ratings (VRs) of BT at 'bb+'.

in partnership with

Business Arena Magazine is proud to announce the 19th edition of its annual event dedicated to the leaders in the financial market:

FINANCIAL LEADERS’ HALL OF FAME 2019

Some 200 persons 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 will take part in this exclusive event.

Invited to give the opening remarks at last year's edition, Raiffeisen Bank Romania’s CEO Steven van Groningen emphasized that making predictions in the banking and financial industry was somewhat risky, but overall the trend was positive. “The banking system is profitable and we have seen a process of consolidation, which is good news for the system’s long-term sustainability and strength,” he said. He also indicated that investments in technology were important, as they allowed banks to spend more time analyzing customers’ needs.

However, the Government's move to approve Emergency Ordinance 114 late last year, introducing, among others, a new tax on bank assets, may change the outlook for the entire industry.

In this context, 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

REAL ESTATE

C&W ECHINOX EXPECTS MODERN RETAIL STOCK DELIVERIES TO SPEED UP IN 2019

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The modern retail stock in Bucharest remained stable in 2018, at 1.2 million square meters, a level which is seven percent higher than in the Central-West region of the country (16 counties in Transylvania and Banat areas), which reached 1.18 million square meters, and twice the corresponding value of the Moldova region (eight counties), which reached 595,000 square meters, according to the Bucharest Retail Market and Romania Retail Regional Cities reports released by the Cushman & Wakefield Echinox real estate consultancy firm.

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Another analyzed region is the South (16 counties, excluding Bucharest - Ilfov), where the modern retail stock amounts to 735,000 square meters, therefore the total area of all the retail projects (shopping centers, retail parks and commercial galleries) at the national level stands at 3.71 million square meters, resulting in a density of 191 square meters / 1,000 inhabitants.

Taking into account the projects currently under construction, C&W Echinox expects the deliveries of commercial spaces to accelerate this year up to 140,000 square meters, as Sibiu, Timisoara and Bucharest will attract a 70 percent share of these deliveries. The Festival Centrum shopping center and the extension of Shopping City Sibiu will be delivered in Sibiu, the Iulius Mall project will be expanded in Timisoara, while the extensions of the Colosseum Retail Park and Veranda Mall projects are expected in Bucharest. New modern retail spaces will also be delivered in Zalau, where the Zalau Value Center project is due to be inaugurated, and also in Satu Mare and Buzau, where two existing projects will be extended.

In 2019, the most active developers will be NEPI Rockcastle, Iulius Group and Prime Kapital, three of the most important developers and owners of commercial spaces on the local mar-

ket. Last year, new retail projects with a combined area of around 104,000 square meters have been delivered in Romania, with no new retail projects being completed in Bucharest.

At a city level, the highest retail space density can be found in Suceava (1,167 sq m/ 1,000 inhabitants) and Oradea (1,014 sq m/ 1,000 inhabitants), while in the primary cities, with a population of over 250,000 inhabitants, this indicator varies between 380 sqm/ 1,000 inhabitants in Craiova and 692 sq m/ 1,000 inhabitants in Timisoara.

The average vacancy rate for shopping centers in Bucharest declined from three percent to two percent over the past year, while at regional level this value is situated at around four percent in the Southern and Eastern areas and six percent in the Central-Western part of the country.

It is thus expected that the low vacancy rates within the dominant shopping centers will put pressure on rent levels.

Bogdan Marcu, Partner, Retail Agency, C&W Echinox, said: "In comparison with 2018, we will see a 40 percent increase in deliveries of new retail projects in 2019, while in 2020 we expect a 60 percent increase from 2019, if all the announced opening dates are fully met.�

A five-million-euro loan provided by the EBRD is set to improve the operations of roof tile maker Depaco, a manufacturer of metallic sheet tiles under the brand name Wetterbest, part of TeraPlast Group.

According to EBRD, the funds will be used to finance the development of a new production and storage facility with a capacity to produce 10 million square meters of roof tiles and profiles. The loan will also refinance existing loans.

TeraPlast Group was founded in 1896 in Bistrita as a ceramic tiles manufacturing unit and has since grown to become one of the largest players in the Romanian building materials industry. The Group is comprised of the following companies: TeraPlast, TeraSteel, TeraGlass and Depaco (Wetterbest).

Previously the EBRD has helped Depaco, through its advisory services, strengthen its Wetterbest brand, improve growth strategy and attract a strategic investor.

EBRD LENDS FIVE MILLION EURO TO ROOF TILE MAKER DEPACO

ARTIFICIAL INTELLIGENCE

EUROPEAN COMMISSION PRESSES AHEAD WITH AI DEVELOPMENT STRATEGY

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To stay competitive in business, Europe is determined to keep up with the AI trend of the world, and, recently, the European Commission has announced the launch of a pilot phase to ensure that the ethical guidelines for Artificial Intelligence (AI) development and use can be implemented in practice. The effort is part of the April 2018 AI strategy aiming at increasing public and private investments to at least 20 billion euro annually over the next decade.

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academia and civil society. We will now put these requirements to practice and at the same time foster an international discussion on human-centric AI.” The European Commission pointed out that Artificial Intelligence can benefit a wide-range of sectors, such as healthcare, energy consumption, cars safety, farming, climate change and financial risk management. AI can also help to detect fraud and cybersecurity threats, and enables law enforcement authorities to fight crime more efficiently. The Commission noted, however, that AI also brings new challenges for the future of ANDRUS work, and raises legal and ethical quesANSIP tions.

The Commission is taking a threestep approach: setting-out the key requirements for trustworthy AI, launchVice-President for the Digital Single Market ing a large-scale pilot phase for feedback from Andrus Ansip said: “I welcome the work understakeholders, and working on international taken by our independent experts. The ethical consensus building for human-centric AI. dimension of AI is not a luxury feature or an add-on. It is only with trust that our society 1.SEVEN ESSENTIALS FOR ACHIEVING can fully benefit from technologies. Ethical AI TRUSTWORTHY AI is a win-win proposition that can become a Trustworthy AI should respect all applicable competitive advantage for Europe: being a laws and regulations, as well as a series of leader of human-centric AI that people can requirements; specific assessment lists aim to trust.” help verify the application of each of the key In turn, Commissioner for Digital Economy requirements: and Society Mariya Gabriel added: “Today, we Human agency and oversight: are taking an important step towards ethical AI systems should enable equitable sociand secure AI in the EU. We now have a solid eties by supporting human agency and fundafoundation based on EU values and following mental rights, and not decrease, limit or misan extensive and constructive engagement guide human autonomy. from many stakeholders including businesses,

Robustness and safety: Trustworthy AI requires algorithms to be secure, reliable and robust enough to deal with errors or inconsistencies during all life cycle phases of AI systems.

Privacy and data governance: Citizens should have full control over their own data, while data concerning them will not be used to harm or discriminate against them.

Transparency: The traceability of AI systems should be ensured.

Diversity, non-discrimination and fairness: AI systems should consider the whole range of human abilities, skills and requirements, and ensure accessibility.

Societal and environmental wellbeing: AI systems should be used to enhance positive social change and enhance sustainability and ecological responsibility.

Accountability: Mechanisms should be put in place to ensure responsibility and accountability for AI systems and their outcomes.

members of the AI high-level expert group will help present and explain the guidelines to relevant stakeholders in Member States.

3. BUILDING INTERNATIONAL CONSENSUS FOR HUMAN-CENTRIC AI The Commission wants to bring this approach to AI ethics to the global stage because technologies, data and algorithms know no borders. To this end, the Commission will strengthen cooperation with like-minded partners such as Japan, Canada or Singapore and continue to play an active role in international discussions and initiatives including the G7 and G20. The pilot phase will also involve companies from other countries and international organizations.

Even though it has many IA experts, Romania seems slow to join the IA bandwagon. In a posting on her own website earlier this year, Andrea Paul, President of an NGO called the Initiative for Competitiveness (INACO), emphasizes that the European Commission has invited Romania to create its own national Artificial Intelligence strategy. “IA has a huge potential in business and administration, from agriculture to healthcare. Along with automa2. LARGE-SCALE PILOT tion and blockchain, the IA will have a huge WITH PARTNERS impact on the labor market, aspects covered In summer 2019, the Commission will

by INACO in its Future Crafts Guide. However, launch a pilot phase involving a wide range of Romania has no strategy in this area,” said stakeholders. Already today, companies, public Andrea Paul, and added: “We have no knowladministrations and organizations can sign up edge of any official consultations that may to the European AI Alliance and receive a notihave been held by public administration bodfication when the pilot starts. In addition, ies with the private sector, academic circles, inventors, and with the civil society for the creation of Romania’s IA strategy, although we have offered to participate.” She also noted: “At EU level, creating the IA legal framework is one of the biggest political challenges facing the European legislators during the ANDREEA next 2019-2024 PAUL mandate.”

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ARTIFICIAL INTELLIGENCE

ARTIFICIAL INTELLIGENCE DISRUPTS AND TRANSFORMS KEY INDUSTRY VERTICALS

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Imagine a world where industries could harness the multitude of data being generated to catalyze a positive change. What would it be like if industries could predict and prevent crimes even before they have happened, or apply AI methodologies to save lives with advanced healthcare? Doesn’t it sound like the plot from a Sci-fi movie? With the recent developments in artificial intelligence (AI), these transformations are not only possible but in reality, a dream come true.

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Our technology and tools evolved drastically in the 20th century, due to the advances in transportation, medical technology, space exploration, communications technology, and the birth of Digital Revolution. In the 21st century, technologists built machines that have their own brain but also to outperform a human. You must know that we are not dealing with dumb machines anymore which are programmed to perform specific tasks, but are dealing with AI which will learn from the human mistakes and identify patterns from extensive data, in a way that’s beyond human capabilities. Artificial Intelligence (AI) has been long discussed, but the real-time applications have seen a resurgence in the past few years across industries.

The continuous hardware advancements and breakthrough in the Machine Learning (ML) algorithms have unleashed a new wave of exponential progress which is set to impact every industry vertical. The First-movers have substantial advantages in AI, and access to data determines the strength of their offerings. However, there are research and business dynamics that make the commercialization of algorithms challenging. Real success in AI depends entirely on the timely access to the data, drawing insights, and viability from the Big Data Analytics and Internet of Things (IoT) paradigms.

Although the field of AI was coined in the 20th century during a conference at Dartmouth in 1956 by a group of computer scientists, it exploded since 2015 because of the rise of cheaper, faster, and more robust processing power, the flood of data, infinite storage capacity, and advances in Deep Learning which is a subset of Machine Learning, a subset of AI. Even though all industries stand to benefit significantly from AI, the adoption happening is at different levels. This is primarily due to the focus on innovation, ecosystem involvement, and exciting trends in the technology adoption.

The diverse applications of AI, large technology organizations, and vertical industry leaders have

taken a keen interest in the AI solution developments and adoptions.

LET US LOOK AT THE ADVANCES OF AI IN THE FOUR MAJOR INDUSTRY VERTICALS: 1. HEALTHCARE: The trend we see in the Healthcare Industry is the entry of the digital technology companies like IBM, Google, Microsoft, and Apple. They aim to transform the healthcare industry with mining medical records to provide faster and better healthcare services.

For instance, IBM Watson derives the context and meaning of the structured (like clinical notes) and unstructured data (relevant reports) which is critical for choosing the right treatment plan and combine various attributes from the patient’s medical record to identify the right kind of treatment plan for a particular patient. In short, it works similar to a human doctor. American co-founder and physician of Mayo Clinic, William J.Mayo has stated, “Medicine aims to prevent disease and prolong life, the ideal of medicine is to eliminate the need for a physician.”

In reality the focus of AI is more to empower the physicians rather than replace them. Among the healthcare value chain AI ecosystem, most of the developments are happening in the field of Prediction and Prevention, Aging, Wellness, Rehabilitation and Technological augmentation of doctors. AI is becoming the game-changer in healthcare, concerning patient diagnosing and treatments for chronic diseases like cancer and diabetes.

There are several challenging obstacles which the medical institution is facing while providing the optimum healthcare services. According to research, currently, there is a shortage of approximately more than seven million health workers and physicians in the world and the gap is widening steadily. Doctoring resources are also stretching thin, especially in the underserved areas, in terms of responding to a high number of medical issues reported by the ever-growing human popu-

lace. Meanwhile, the training of the health-workers and physicians is a long-drawn process which demands years of education, hands-on domain expertise and professional experience. Fortunately, Artificial Intelligence will be able to help the healthcare industry to overcome these current and future challenges. Right from managing the medical records, to designing evidence-based treatment plans, and replacing human-beings in doing the repetitive tasks, AI has many implications where versatility is called for in the Healthcare Sector.

Precision Medicine, Predictive Analytics, and Clinical decision support are some of the likely use-cases for AI technological developments that are already underway. Artificial Intelligence and Machine Learning have made a significant breakthrough in medical imaging, medication management, drug discovery, and robotic surgery. Here is a video on Da Vinci Robot Stitching a Grape Back Together 2. AUTOMOBILE: The automobile industry continues to face a dynamic set of challenges and obstacles.

Globalization, changing market conditions, cost pressure, growing competitions, and volatility is leading to a significant transformation of the landscape. The emergence of Autonomous vehicles and self-driving cars are increasing customer expectations. The Auto Industry is on the brink of a significant revolution.

The quest for driverless cars started in the 1970s. However, it never turned into reality until the development of high Computing power, GPS, Cloud computing, and Artificial Intelligence. The fully autonomous vehicles are still not out for operation yet in the market. Auto giants like BMW claim that their futuristic autonomous “i-Net car” will hit the market in the next four years. Toyota has also unravelled a self-driving concept car powered by an AI in-car assistant called ‘Yui.’ Yui will not only learn your driving patterns, and the roads frequently travelled so far, but also will tell your emotional experience during the drive. Yui will act as your virtual companion, copilot, travel guide and also as a spa attendant all the while getting to know you better over time. Here is a glimpse of the car.

3. MANUFACTURING: The Manufacturing Industry will see the most significant impact of Artificial Intelligence coupled with Automation. AI plays a vital role in improving the enterprise software. Right from Predictive Analytics to Maintenance and Optimization of Industrial Machines and facilities, Improving material management, Interpreting the data flow across depart-

ments, and the list goes on. Factories today are equipped with cutting-edge technology sensors that help in detecting defects in the manufactured products. This data is fed onto the cloud which pulls the defective parts immediately from the production line and order for the replacements.

Consequently, the real-time problem solving saves manufacturers billions of dollars in repairs and lost business.

Robots have a significant presence in Manufacturing Automation, and it continues to grow further. A China-based mobile manufacturer Changying Precision Technology’s factory underwent an AI Automation and is now run by only 60 workers and 60 robots that work round the clock leading to 250% increase in the productivity and 80% drop in the defects. This clearly outlines a case for AI Automation.

Google acquired eight robotics companies in 2013 within six months time, and that is said to be the heart of Google’s moonshot program. Google is now developing its software but also the hardware to ensure the final product compatible and robust giving a hint to build much more advanced robots in the coming decade. However, amongst all, Japan is the undisputed world leader in robotic technology. However, Japan’s supremacy in the field is being challenged by the upcoming rival robot producing countries. Japan is to build thirty million Peppers (World’s first emo robot represents a massive leap in the AI as it can read facial expressions, voice tones and body language and then respond) to create a workforce that can make Japan is the world’s number one manufacturer again.

4. RETAIL: Retail is one of the fastest growing industry in the world, and the retail E-commerce is growing even faster. Competition is fierce, and this leads to innovation within the industry. I am sure you have already experienced AI in e-commerce, but might not have noticed. Whenever Amazon recommends a product to you, you must know that AI drives it.

A very complex set of algorithms are used to determine what you are likely to buy based on your purchasing history, demographic profile, and other products you have already viewed. Amazon generates large quantities of data, and AI uses this data to make highly customized customer centric targeted recommendations. When you use a live chat tool, either on a social media platform like Facebook or on a website to communicate with a brand, there is a possibility that you might have been speaking to an AI-powered chatbot that is feeding you a preset range of responses based on your queries and comments.

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ARTIFICIAL INTELLIGENCE

WHAT EVERY ENTREPRENEUR MUST KNOW ABOUT ARTIFICIAL INTELLIGENCE Boost efficiency and productivity. Reduce errors. Plus more cool stuff.

Artificial intelligence continues to be increasingly used throughout the general public and businesses to enhance consumer experiences. Research from Gartner predicts AI will generate a business value of $2.9 trillion by 2022. It's making doing business easier because it offers entrepreneurs several benefits that can help them grow their businesses. Here's how:

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1. ARTIFICIAL INTELLIGENCE HELPS INCREASE EFFICIENCY. Being able to run your business efficiently is essential to maximizing your resources. It also helps you save time and money for your business in the long run. AI helps entrepreneurs increase operational efficiency. For example, you can create speech recognition software applications that help doctors of your medical practice take notes aloud. This removes the need to handle the transcription of notes that medical billers and coders need to effectively process invoices.

You can even use AI-powered voice assistants to help increase efficiency in the office and assist you with scheduling meetings, setting up reminders and recording points you need to discuss in a team meeting or client presentation.

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2. ARTIFICIAL INTELLIGENCE ENHANCES PRODUCTIVITY. If you're looking for a way to increase your businesses performance and output, then AI offers some promising results. With AI, you can enhance productivity. For example, you can build software to speed up the process of tracking inventory for your warehouse or manufacturing facility. AI can also be helpful in improving the productivity of procuring leads for your business.

For instance, Harley Davidson employed an AIpowered marketing platform to increase its daily lead generation. This led the company to realize a 2,930 percent increase in leads over three months since its implementation. With increased productivity and speed, you can leverage the power AI to scale your business, too.

3. BUSINESSES CAN INCREASE AUTOMATION WITH ARTIFICIAL INTELLIGENCE. Automating manual tasks can help your business save time and money so you can continuously grow. With AI-powered software applications, businesses can expect to increase automation. For instance, you can create software applications to automate business processes and save time in manual labor.

Walmart used robot process automation (RPA) technology and automated a variety of business processes with the help of an estimated 500 bots, including retrieving relevant data from audit documents and answering questions from employees. This helps remove repetitive tasks from workers' responsibilities as well as enables the business to scale its automation intelligently for efficient operations.

4. YOU CAN ENHANCE CUSTOMER EXPERIENCE. Improving your customers' experiences means being available to assist them when they need you the most. However, humans cannot single-handedly be available around the clock.

It also can become increasingly expensive to run an operation that supports a workforce of employees with multiple shifts, especially if your business is just starting out.

However, chatbots can help amplify your workforce and enhance the customer experience. For example, you can use chatbots to improve customer service. These AI-powered software algorithms can be present to answer frequently asked questions and take care of tasks when human workers cannot.

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N I N J A I N N O V AT I O N A N D THE FUTURE OF WORK We are entering a new era of innovation.

The pace of change is accelerating. More fundamental human problems will be solved in the next two decades than have been solved in the last two centuries.

This may terrify some and energize others.

Whatever your view, technology already powers nearly everything we do. Just think about how much of your average day is already fuelled by tech. This ubiquity means that we can no longer think of innovation in terms of discrete, vertical technology silos such as television, audio, automotive and smartphones.

People I call “ninja innovators” are constantly evaluating the opportunities these developments are offering and are poised to take advantage of them. The future will belong to them. In the future – the ninja future – innovation will disrupt the way we work to an even greater extent. Ninjas will seize the moment and capitalize on this disruption.

Let’s face it: disrupt is an unsettling word. It connotes rupture, interruption, disorder. But it is also a transitive verb, one that exerts its action on a specific object - in this case, our personal lives and our global economy. It connotes movement a shift and transfer of energy from one direction to another. This will not be an abysmal narrative of computer systems replacing large swathes of the global workforce. It also will not be a simple narrative of workers gaining a handy digital coworker to make their job easier and more efficient. The large-scale impact of technology on the workforce will be more nuanced.

The Organization for Economic Cooperation and Development (OECD) estimated in 2016 that 32% of jobs will be different in the near future than they are today due to technology.

Healthcare is one obvious example. Jobs in the medical field will abound, but professionals will increasingly be aided by advanced technologies such as artificial intelligence (AI), including machine learning. We may become increasingly comfortable ceding some diagnostic and analytical duties to proven AI systems, but ninja innovation, at least in the next two decades, will assist doctors, not supplant them.

The economic potential of AI is enormous. A 2017 PwC study forecasts that AI will add more than $15 trillion to the world economy in 2030.

None of us can predict how many jobs AI will create as new interfaces and industries emerge.

The shift won’t be uniform: some sectors of our economy will experience the AI revolution long before others. We need to be realistic about the extent to which technology will alter the workplace. We need to get serious about making sure that today’s students - future ninjas among them - are adequately prepared for tomorrow’s workforce.

Consumer Technology Association (CTA) research shows that lack of public trust is one of the main barriers to development and implementation of AI. In the age of connectivity, big data and AI, the world is asking an existential question about the role that people will play in their own future. To me, it’s crystal clear. Humans can and will dictate the terms by which technological innovations complement our work and play. Like all technology, it's up to us to ensure that AI can act both as capably and as

INNOVATION

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ethically as we train it to. If we hold ourselves accountable to standards of fairness and excellence, these will play out in the AI solutions we develop.

Another part of the suspicion of future ninja innovation comes from a lack of understanding of what these changes mean for workers. There’s no denying that AI will disrupt industries, but the extent to which it will eliminate jobs has been somewhat exaggerated in the media.

Understandably, when statistics about potential job loss due to automation make headlines, the public may be more resistant to reading the fine print about how technology is also changing the nature of existing jobs. So in 2018, CTA created a 21st Century Workforce Council - a forum for industry to address the skills gap in the US and ensure the tech sector has the necessary pipeline of ninjas for the millions of jobs we are creating, from data analysts to programmers, robotics experts and more.

When CTA surveyed tech executives on their

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labour needs in 2018 and in the future, 92% said they expected they would need more employees with technical skills in the next five years. And 74% said it was a challenge to find candidates with the right skills and abilities. American companies face a major skills shortage for AI engineers and other highly technical roles, yet most American students are not pursuing advanced degrees in these fields.

American students earn fewer than half of the US doctoral degrees in many STEM fields.

Increasing the number of STEM graduates in the US is important to the success of the economy, but future ninjas don’t necessarily need a graduate degree. (Indeed, for all the concern about the impact of self-driving trucks on the trucking industry, from 2016 through 2018 we have faced a huge deficit of drivers willing to take on these jobs.) Companies including Microsoft, Apple and IBM are partnering with community colleges to develop curricula that match students’ education with skills shortages in the tech workforce.

Innovative models such as these will help close the skills gap and make tech-based careers more accessible to a broader range of Americans.

Future ninjas will need technical skills, but more importantly, they will need to refresh their skills routinely to stay ahead of rapidly evolving technology. This necessitates a fundamental change in mindset that starts with our education system. We are investing an extraordinary amount of brainpower in developing technologies that will change the way we work, and ultimately make the world safer, more efficient and more enjoyable. We need to invest some of that brainpower in modernizing our education system so that students are prepared for these new tech jobs. We should expose more children to robotics and coding at early ages, thereby ensuring that they develop a base level of familiarity and interest in these critical and lucrative fields.

And since we know that individuals learn differently, we should set aside our “onesize-fits-all” education model. Some of us are visual learners, others are aural learners.

Some need interaction, others can learn just fine without a human. Some blossom in group settings, others shrink. Technology can create different education experiences for different students, and we should take advantage of ninja innovation in the classroom to customize learning. We should also look outside the classroom to apprenticeships, as IBM is doing, to ensure alignment between industry needs and skills training.

AI, smart cities, drones and other technologies will create new categories of jobs that didn’t exist a decade ago. Cultivating and nourishing future ninjas is our paramount goal. It’s an ambitious one, but that’s what ninja innovators do. If we can develop artificial intelligence, we can certainly rise to the challenge of preparing our workforce for the consequences and opportunities of ninja innovation.

ARTIFICIAL INTELLIGENCE

AUDI ENVISIONS THE CITY CAR OF THE FUTURE ITS ALL-ELECTRIC AI-POWERED AND EVEN HAS PLANTS INSIDE Audi has revealed its latest concept study that demonstrates the automaker’s vision for the future of urban mobility. Called the AI:ME, the concept car was displayed recently at the Shanghai Motor Show and follows on from the AIcon concept Audi showcased at the 2017 Frankfurt Motor Show.

As the name suggests, the Audi AI:ME uses artificial intelligence and machine learning for its autonomous driving capability. According to the German automaker, the futuristic concept is capable of Level-4 autonomous driving, which needs very little input from the driver. Designed for the megacities of the future, the AI:ME has been designed to maximize the space inside the cabin while keeping the layout completely customizable. While the front seats are inspired by the living room lounge chairs for utmost comfort, the rear space can be used according to the need. It can be set-up just to used as storage space or fit seats for two extra passengers.

The car is also properly smart and relies on features like eye-tracking and gesture controls instead of physical buttons on the center console or the dash. A multifunctional, threedimensional OLED monitor is placed right below the windscreen and acts as a medium to communicate with the driver and works alongside the eye-tracking feature. For in-car entertainment, the Audi AI:ME uses VR goggles for the occupants to get a fully-immersive experience. What makes the concept car’s cabin even more special is that Audi decided to give it real plants which will not only supply fresh air to the passengers but also make them feel closer to nature. It also gets a noise compensation system completely suppresses the sounds of the city making the inside of the car quiet and peaceful. “We designed the AI:ME entirely from a user experience standpoint,” said James Nissen, interior architect designer at

Audi. We put ourselves in the position of the person who wants to drive from point A to point B in the city with the AI:ME — and to escape from the noise and hectic of the big city during the drive.

That’s why our design process was primarily focused on the interior of the AI:ME.” As you would expect, the Audi AI:ME is fully electric; however, Audi didn’t say much about the battery pack or the motors powering the car. As far as the design of the concept goes, it’s compact in size 4.3 meters by 1.9 meters with a hatchback body shape. The exterior design has styling elements similar to the newly updated Audi cars as well as the recent concepts showcased by the German auto giant.

The AI:ME is the third concept car to join the marque’s progressive dialogue which started with the AIcon and PB 18. The fourth and final model of the series will be revealed at this year’s Frankfurt Motor Show in September, where all the four concept cars will be on display together.

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CYBERCRIME

HERE ARE THE BIGGEST CYBERCRIME TRENDS OF 2019

Hackers target computers, smartphones and network attached storage (NAS) devices

Cybercriminals are using more advanced and scalable tools to breach user privacy, and they are getting results. Two billion data records were compromised in 2017, and more than 4.5 billion records were breached in the first half of 2018 alone.

Here are the most pressing cybersecurity issues in 2019, as well as rising trends into 2020.

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ADVANCED PHISHING KITS Four new malware samples are created every second. Phishing remains one of the most successful attack vectors due to its speed, as most phishing sites stay online for just four to five hours. Users only report 17% of phishing attacks, and it is seen as a low-risk type of activity. As a result, today only 65% of all URLs are considered trustworthy. This puts a strain on both the consumer and any enterprise with an online presence.

We predict that 2020 will be known for advanced phishing attacks, due to the number of new phishing kits available on the dark web.

These kits enable people with only basic technical knowledge to run their own phishing attacks. With more tools available, phishing will become an even more dangerous attack method.

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REMOTE ACCESS ATTACKS Remote attacks are growing in number, as well as becoming more sophisticated. One of the main types of remote access attack in 2018 was cryptojacking, which targeted cryptocurrency owners. Another popular type of attack threatened perimeter devices.

According to our threat intelligence database, remote access attacks are among the most common attack vectors in a connected home.

Hackers target computers, smartphones, internet protocol (IP) cameras and network attached storage (NAS) devices, since these tools usually need to have ports open and forwarded to external networks or the internet.

ATTACKS VIA SMARTPHONES One of the most common attack vectors to smartphones are related to unsafe browsing (phishing, spear phishing, malware).

More than 60% of fraud online is accomplished through mobile platforms, according to RSA, and 80% of mobile fraud is achieved through mobile apps instead of mobile web browsers.

As most people

use their phones to manage financial operations or handle sensitive data outside the security of their home network, this becomes a prominent threat. The fact that users typically hold all their information on their phone, and that smartphones are now used for two-factor authentication - one of the most widely used cybersecurity tools - increases the security risk if the device is lost or stolen.

VULNERABILITIES IN HOME AUTOMATION AND THE INTERNET OF THINGS The consumer Internet of Things (IoT) industry is expected to grow to more than seven billion devices by the end of 2020, according to Gartner. Many consumers do not see IoT devices as a vulnerability, because a significant portion of them do not have a user interface. This could lead to issues understanding what kind of data the device collects or manages.

However, IoT devices are not only collecting valuable user data. They could become an entry

UTILIZING ARTIFICIAL INTELLIGENCE Most of the biggest industries already use machine learning (ML) and artificial intelligence (AI) to automate their processes and improve overall performance. Cybersecurity and cybercrime are no exception. AI is often considered to be a dual-use technology - while more cybersecurity companies are implementing AI-driven algorithms to prevent threats, hackers are also taking the opportunity to become more effective.

The majority of AI qualities serve malicious purposes. AI systems are cheap, scalable, automated, anonymous and they provide physical and psychological distance for the attacker, diminishing the immediate morality around cybercrime.

- Artificial intelligence for cybersecurity evasion. Cybercriminals are using various evasion methods to avoid detection, and AI helps to optimize different elements of this process.

- Artificial intelligence in phishing. AI could help to create content that can pass through

point for an attacker or tool to launch a distributed denial-of-service (DDoS) attack. IoT devices are not secure by design, because putting a focus on security would significantly increase manufacturing and maintenance expenses.

According to CUJO AI threat intelligence data, 46% of all attack types that these devices experience are remote access attempts and 39% are used for detecting behavioural patterns. With the exponential growth of connected devices at home, these threats are likely to increase.

typical cybersecurity filters, such as email messages that are indistinguishable from those written by humans.

- Artificial intelligence in social engineering.

While social engineering is one of the most popular hacking techniques, it takes a lot of time to implement properly. AI could help in not only collecting information, but also by writing emails or calling potential victims. With new advances in AI-driven technology, utilizing AI in cyber attacks will become an even more popular and dangerous trend.

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U.S. CONSIDERS SELLING F-35 FIGHTERS TO FIVE NEW COUNTRIES, INCLUDING ROMANIA The U.S. is considering selling F-35 fighters to five new nations, including Romania, as European allies consolidate their defenses in the face of a strengthening Russia, a Pentagon official said in front of the Congress on April 4, Reuters reported.

The head of the Pentagon’s F-35 office, Vice Admiral Mathias Winter, has reportedly said that “future potential Foreign Military Sales customers include Singapore,

Greece, Romania, Spain and Poland.”

Romania bought 12 F-16 multirole aircraft from Portugal in 2013. The contract had a total value of EUR 628 million, which included the refurbishing done by US group Lockheed Martin and training the Romanian pilots. In July 2018, the media reported that Portugal’s Defense Ministry confirmed that it would sell five more F-16 fighters to Romania.

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CHRISTINA VERCHERE (OMV PETROM): KEY REQUIREMENTS FOR BLACK SEA DEVELOPMENT NOT YET IN PLACE

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Christina Verchere, the CEO of Romanian oil & gas group OMV-Petrom, told Reuters that the key requirements for the company’s Black Sea offshore development are not yet in place.

The Romanian government’s new rules say that energy firms, except state-owned coal-fired power plants, will pay a 2 percent turnover tax, while producers will sell gas for household at capped prices until 2022. The price cap was removed for industrial consumers.

“We believe that dialogue can get us closer to a solution and this dialogue must continue,” said Verchere in an email to Reuters. She added that the amendments passed by the government to Emergency Ordinance 114 “answer some of the concerns expressed by the oil & gas industry and represent a step for returning to a liberalized gas market. This process should continue.”

EU APPROVES LIBERTY BID FOR ARCELORMITTAL’S EUROPEAN STEEL ASSETS Following EU approval for Liberty to acquire seven major European steel plants from ArcelorMittal, the GFG Alliance has announced plans to integrate most of its Liberty steel, engineering and mining businesses into a single global entity, spanning assets across the UK, Europe and Australia.

The consolidated business will include all of the UK steel and engineering assets, the integrated Australian Liberty primary steelworks in Whyalla, a number of high-quality Australian iron ore and metallurgical coal mines, and, once completed, the seven European steel plants being acquired from ArcelorMittal. This merged new group would exclude GFG’s recycling and building products businesses in Australia and the USA. Currently these businesses exist separately within the GFG Alliance but, with a steelmaking target of 20 Mtpa, the planned merger and integration will catapult Liberty into the world’s top 10 steel producers outside China, creating multiple competitive advantages.

Executive Chairman of the GFG Alliance, Sanjeev Gupta, said: “We are delighted that the EU has validated Liberty as a suitable buyer for these European steel assets. This will make us the third largest steel producer in Europe. We are an ambitious and aspirational group and we keep breaking boundaries. The bringing together of our international integrated steel assets is part of our deliberate, strategic and sustainable expansion.

“We look forward to leveraging Liberty steel and mining’s integrated supply chain to create further value. The business will combine Liberty’s integrated steelworks in Whyalla and its ambitious Australian iron ore and coking coal mining businesses, with Liberty House Group assets in the UK and the planned acquisition of the ArcelorMittal European manufacturing facilities.

“This combination will form a global champi-

on, with fully integrated capabilities, shipping iron ore and coking coal and semi-finished product from Australia to its manufacturing plants and mills globally with the target of becoming one of the largest and most competitive fully integrated steel and mining producers in the world, from raw materials to high value finished goods.”

Liberty’s global manufacturing capacity includes a strong position in the UK as a steel producer and an engineering components supplier to the automotive, aviation, defense and renewable energy sectors. Liberty Primary Steel in Australia is a leading producer of rail and structural steel for the growing infrastructure and building industries. In December 2018, the business announced visionary plans to build a stateof-the-art Next Gen manufacturing facility in South Australia with capacity of over 10 Mtpa. In addition, the proposed European acquisition from ArcelorMittal will boost Liberty’s production capacity across a full range of flat and long products, setting the Liberty steel and mining group up for rapid growth.

As part of the strategic alignment of the international assets, and in order to optimize its significant power purchase, GFG Alliance has completed the first phase in rearranging its energy procurement strategy and associated funding.

Accordingly, GFG Alliance has procured the refinancing of approximately one third of its longterm power purchase obligations in the UK and will arrange refinancing of the remainder in or before the third quarter of the calendar year.

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INVESTMENT

9 COMPANIES THAT MAY BE ON WARREN BUFFETT’S TAKEOVER LIST A long-established cottage industry within the investment community is trying to anticipate Warren Buffett’s next moves and to profit from them. Earlier this year, Buffett stated that he has “hope for an elephant-sized acquisition,” per his annual letter to shareholders of Berkshire Hathaway Inc. (BRK.A). With over $112 billion in U.S. Treasury Bills and cash equivalents at year-end 2018, per its annual report, Berkshire has ample buying power.

Credit Suisse recently identified 141 potential targets for Buffett. After examining that list, Barron’s applied their own analysis, reducing the field to 12 large companies, including these nine: Target Corp. (TGT), General Dynamics Corp. (GD), Anthem Inc. (ANTM), Amphenol Corp. (APH), Bristol-Myers Squibb Co. (BMY), BlackRock Inc. (BLK), Northrop Grumman Corp. (NOC), The TJX Companies Inc. (TJX), and The Sherwin-Williams Co. (SHW). All are easily digestible by Berkshire, as the table below indicates.

9 Possible Buffett Targets (Market Capitalization as of April 5, 2019) Amphenol, $31 billion Anthem, $75 billion BlackRock, $71 billion Bristol-Myers Squibb, $76 billion General Dynamics, $49 billion Northrop Grumman, $47 billion Sherwin-Williams, $41 billion Target, $42 billion TJX, $66 billion Sources: Barron’s, Yahoo Finance

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Significance for Investors

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Buffett is well-known as a value investor, seeking out companies whose shares appear to be undervalued by the market currently, but which eventually should rise to fair value on the basis of strong fundamentals. An analytic framework based on seven key metrics has been developed by Wells Fargo in its attempt to replicate Buffett’s decision criteria.

Credit Suisse, meanwhile, believes that cash flow return on investment (CFROI) is a key part of Buffett’s screening process. They add that he looks for strong management teams, high returns on equity, little or no debt, stable profit margins, and businesses that are

easy to understand, Barron’s notes.

Berkshire has been lagging the market, so a big acquisition that can improve returns significantly would be welcome by its shareholders.

The table below shows how far Berkshire stock has fallen behind the market recently.

Buffet Needs a Big Deal to Fire Up His Stock (Comparative Gains: YTD 2019, 1 Year) Berkshire Hathaway Class A: +0.6%, +2.0% S&P 500 Index: +15.4%, +8.6% Source: Yahoo Finance; pricing as of the April 5, 2019 close.

Despite passing the screens applied by Credit Suisse, Barron’s believes that defense contractors General Dynamics and Northrop Grumman, as well as drugmaker Bristol-Myers Squibb, are unlikely targets for Berkshire.

Defense contractors have their fortunes tied to Washington politics. Bristol-Myers is embroiled in controversy over its planned acquisition of biotech firm Celgene Corp. (CELG), as described by Investor’s Business Daily.

Meanwhile, Buffett has been hesitant about technology investments, due to his admitted lack of knowledge in the field. That may rule out Amphenol, which specializes in computer networking.

That leaves five easy-to-understand candidates: department store chain Target, discount apparel retailer TJX, paint and coatings maker Sherwin-Williams, investment management firm BlackRock, and health insurer Anthem.

Barron’s believes that TJX may be particularly attractive on the basis of “consistent returns and margins.”

Looking Ahead

“I don’t think people should be buying stocks because they’re reading in the paper that we’re buying something. But if they do, they may get cured of it at some point,” Buffett said at Berkshire’s 1994 annual meeting, as quoted by CNBC. He added, “So we will never comment on those stories, no matter how ridiculous they are.” Accordingly, Berkshire has not responded to a request for comment by Barron’s.

BY MARK KOLAKOWSKI (investopedia.com)

special section

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U X U R Y

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LIFESTYLE

TOP BRAND

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DAVID CANDAUX AND HIS DEBUT SERIES OF WATCHES, THE 1740 FIRST 8 A prolific movement designer steps out on his own.

You may not be familiar with David Candaux, but you are likely familiar with the incredible watches Candaux has worked on in the past. To name just two, he was involved with both the Jaeger-LeCoultre Hybris Mechanica Grande Sonnerie and the MB&F HM6 Space Pirate. For years, Candaux worked behind the scenes at some of the most famous watch manufactures in Switzerland as a concepteur horloger, building movements that are among the most innovative and complicated in the world.

Candaux has now stepped out on his own, and his first collection is definitely worth a very close look.

It is difficult to explain the breadth of Candaux's skill, as the word watchmaker is somewhat of a misnomer in the English language. Simply put, most watchmakers don't make watches.

Candaux does. In French, the term concepteur horloger (which translates to "designer watchmaker" is used instead. But Candaux doesn't just sketch out nice looking cases and dials on paper, he also does all of the engineering. This means calculating the gear train, arranging pitch diameters on the mainplate, and setting out the vertical clearances for the wheels. This is a rare job even in Switzerland, and is part of the reason why he spent nearly 20 years at Jaeger-LeCoultre. To do this job you need to have a strong foundation as a watchmaker, as well in-depth knowledge of mechanical engineering. Evidence

of this are the multiple technical watchmaking patents Candaux holds.

Candaux was born and raised in Switzerland's famous Vallée de Joux, home to a large portion of today's watchmaking industry. Both his grandfather and father worked as watchmakers, which gave Candaux something of a head start in the profession. At age 15, Candaux enrolled at the Vallée de Joux Technical School where he began an apprenticeship program. Shortly after graduating, Candaux began working at the bench at Jaeger-LeCoultre in their restoration department. Eventually, Candaux landed in the complication department where he worked on the breathtaking Hybris Mechanica Grande

second-to-none. Think picture-perfect bevels, plenty of sharp internal corners and a delicate derivation of Geneva stripes. On top of the impeccable finishing, all of the bridges are inclined at three degrees to further emphasize the beautiful finishing. This gives a visual effect of cascading water, making the movement spectacular under bright light. It makes sense that Candaux's finishing is so refined, as he lives very close to and has learned from finisher extraordinaire Philippe Dufour.

It takes a lot of bravery to leave a stable job working for a large company and start your own brand. Besides needing to continue working with such a high level of engineering, design, and

Sonnerie. After Jaeger-LeCoultre, he started a freelance movement development company named Du Val Des Bois.

Candaux's debut series of watches, the 1740 First 8, are named after the year that the first watchmaker began working in the Vallée de Joux (named Meylan). The watches feature a symmetrical design with a power reserve indication at 12, a dial displaying hours and minutes at three, a pop-up crown at six, and a 30 degree inclined tourbillon at nine. We were lucky to get a close look at three of Candaux's watches here at the HODINKEE office, comprising a DC6 Half Hunter featuring intricate engine-turning, a DC1 First 8, and a pièce unique featuring an amazing diamond-style finish on the bridges.

The finishing on Candaux's movements are

finishing, Candaux now needs to take on other aspects of the watchmaking business, like marketing, distribution, and service. Simply put, it's not easy. But Candaux as a person, and D. Candaux, as a brand, are not slowing down anytime soon. I spoke with Candaux to learn more about his motivation and ideals.

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LUXURY & LIFESTYLE - TOP BRAND

OPERA BY JACOB & CO. GODFATHER MUSICAL WATCH Music exists in time. Uniting two traditional Swiss crafts, the Jacob & Co. Opera is a highly complicated timepiece and a wearable music box at the same time… Moreover, it is a spectacular show on the wrist that is pretty hard to depict. The ballet of its triple-axis tourbillon and its musical mechanism in action is surprising and captivating. Technically, the combination of these two rare complications is impressive. There is indeed a lot happening and if a picture is worth a 1,000 words.

MATERIAL: 18K Rose Gold and Sapphire.

THICKNESS: 20mm / DIAMETER: 47mm POWER RESERVE: 72-Hours.

MOVEMENT CALIBER: Exclusive Manufacture Jacob & Co. Manual-Winding JCFM02.

WATER RESISTANCE: 3 atm FUNCTIONS: Subsidiary hour and minute dial; Triple-axis gravitational tourbillon cage rotating about; Its own axis once in 40 seconds, Its second axis every 3 minutes; Its third axis every 8 minutes.

Melody activated by pusher at 2 o’clock: two rotating cylinders against 2 combs (30 teeths in total); Movement rotation of 120° in 30 seconds.

FINISHING: Bridges and plates: Shotblasted and Black PVD finish; Barrels: Circular graining; Cylinders: Rose Gold Plated; Screws: Angled Bevel and Mirror Polished.

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18 PIECES.

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18 PIECES.

MATERIAL: DLC coating on Grade 5 titanium and Sapphire THICKNESS: 20mm / DIAMETER: 47mm POWER RESERVE: 72-Hours MOVEMENT CALIBER: Exclusive Manufacture Jacob & Co. Manual-Winding JCFM02 / WATER RESISTANCE: 3 atm FUNCTIONS: Subsidiary hour and minute dial; Triple-axis gravitational tourbillon cage rotating about; Its own axis once in 40 seconds, Its second axis every 3 minutes, Its third axis every 8 minutes. Melody activated by pusher at 2 o’clock: rotation of two cylinders against 2 combs (30 teeths in total) decorated by 18K Rose Gold music score and black lacquered piano; Miniature dancing couple at the center of the movement; Movement rotation of 120° in 30 seconds. FINISHING: Bridges and plates: Shot-blasted and Black PVD finish; Barrels: Circular graining; Cylinders: Rose Gold Plated; Screws: Angled Bevel and Mirror Polished.

MATERIAL: Black DLC Grade 5 Titanium and Sapphire THICKNESS: 23mm / DIAMETER: 49mm POWER RESERVE: 50-Hours MOVEMENT CALIBER: Exclusive Manufacture Jacob&Co ManualWinding JCFM04 / WATER RESISTANCE: 30m FUNCTIONS: Subsidiary hour and minute dial Triple-axis gravitational tourbillon (104 components; 1.15g): • 1st Axis Flying: in 24 seconds • 2nd Axis Flying: in 8 seconds • 3rd Axis Flying: in 30 seconds Godfather Melody activated by pusher at 10 o’clock: rotation of two cylinders against 2 combs (36 teeth in total) playing a melody of 120 notes, decorated by 18K Rose Gold Godfather plate, black lacquered piano and Miniature Godfather at the center of the movement Movement rotation of 120° in 30 seconds FINISHING: Bridges and plates: Shot-blasted and Black PVD fi nish; Barrels: Circular graining; Cylinders: Rose Gold Plated; Screws: Angled Bevel and Mirror Polished

88 PIECES.

ULYSSE NARDIN MARINE MEGA YACHT SETS SAIL AT WATCHES & WONDERS MIAMI Watches & Wonders Miami takes place concurrently with the Miami Yacht Show, so what better place for Ulysse Nardin —whose historical connection to the sea and maritime navigation few brands can match — to launch its latest high-horology nautical masterpiece, the Marine Mega Yacht? Here’s what we learned about this luxurious platinum-cased timepiece, limited to just 30 pieces.

An engraved 3D photorealistic moon rotates above a disk indicating the tide volumes.

The Marine Mega Yacht is a follow-up to 2016’s Grand Deck Tourbillon, but whereas that groundbreaking timepiece channeled the look of classical wooden sailboats, this one is influenced by the more sleek, high-tech look of contemporary luxury yachts. The teakwood pattern of the earlier watch’s dial here gives way to a combination of white gold and blue grand feu enamel, with the bow of a luxury vessel depicted emerging from misty, foaming ocean waves. As it did for the Grand Deck, Ulysse Nardin teamed up with inventive complications guru Christophe Claret to develop and build the Mega Yacht. Among its technical talking points are a flying tourbillon at 6 o’clock, which rotates once every 60 seconds, whose specially designed propellor blades resemble those used on luxury vessels.

The watch’s manual-winding mechanism is designed to simulate the raising and dropping of the anchor on a boat. Its power reserve — a respectable 80 hours — is displayed by a small, plowshare-design anchor linked to a chain by an

anchor ring. The chain is linked to a miniature windlass, a type of winch used to hoist anchors and other heavy objects, built into the movement and visible through a large aperture at 12 o’clock. The windlass, connected by wheels to the winding mechanism, raises the anchor from 0 to 8 on a horizontal scale as the wearer winds the watch, and the anchor lowers as the mainspring runs down.

The Marine Mega Yacht also includes a very modern and precise type of moonphase display as well as a sophisticated indicator for the heights of tides — two features that are interconnected as well as of practical use to the navigator of a luxury liner. The 3D spherical moon, which rotates inside a round window at 9 o’clock, boasts a photo-realistic depiction of the actual lunar surface. It is constructed from two precisely engraved half-spheres, one treated in blue PVD (for the dark “new moon” phases), the other rhodiumed (to represent the illuminated “full moon” sectors). A window on the side of the case middle — designed to resemble the screen of the Chadburn Telegraphs used by captains on the bridges of ships to communicate with the engine room — reveals the position of the winding crown: “S” for setting the time on the hands, “W” for winding the movement, and the intermediate “T/M” position in which the wearer can regulate the moon phase and tide volume.

One counter-clockwise turn of the crown in this position represents four days in the lunar scale, while one clockwise turn moves the tidal indicator disk 1/4 around the rotation, or 9.5 hours.

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…which pulls a tiny anchor chain along a horizontal power reserve scale.

LUXURY & LIFESTYLE - TOP BRAND

THE A. LANGE & SÖHNE ZEITWERK DATE

One of Lange's signature watches gets an additional layer of complication.

The Zeitwerk, along with the Lange 1, is a distinctly A. Lange & Söhne creation. It first debuted back in 2008 and was totally revolutionary, with its jumping digital displays for the hours and minutes and the extremely complex movement, complete with constant force escapement.

Since then, Lange has released a few variations on the original theme, including the Handwerkskunst and the Decimal Strike. Today we're getting yet another new Zeitwerk, the first with an additional "small" complication, the Zeitwerk Date.

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Just looking at the watch, it's pretty obvious what's going on: You've got the classic Zeitwerk (with the hours, minutes, seconds, and power reserve all on display) with the addition of a date ring around the outer edge of the dial.

Interestingly, the date is shown via the movement

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of a red marker under the dial that fills in the appropriate transparent number to indicate the appropriate date. Easy enough. The effect is extremely elegant and the extra information doesn't at all distract from the bold Zeitwerk hours and minutes. It's always hard to tell from press renderings of watches, but I would be willing to bet top dollar that the effect is even more subtle in person than it appears here. With the additional complication comes some extra heft – in order to accommodate the additional numerals without disrupting the proportions of the main display, the case has expanded to 44.2mm in diameter from the 41.9mm of the original Zeitwerk. The grey dial and large rhodium-plated German silver bridge look fantastic, and the red accents feel right at home too. This watch is not a limited edition, but as you might expect production will be relatively small

each year. I remember the very first time I saw a Zeitwerk – it was in person and I'd never seen a photo of one either. My immediate reaction was something along the lines of "holy cow, what is that!?" (though probably laced with an expletive or two). That was probably eight or nine years ago, and since then it has grown no less impressive to me over time. Sure, it's a little bigger and a little thicker than I'd like for my own daily wear, but it's a watch I find myself returning to time and time again. This version might be even a little larger in diameter (though a tad thinner), but to see it get a small technical update like this is fun, and both the execution of the date complication and the finishes on the dial are extremely elegant and impressive.

This is definitely one of the watches I'm most excited to see in the metal at SIHH 2019.

Model: Zeitwerk Date Reference Number: 148.038 Diameter: 44.2mm Thickness: 12.3mm Case Material: White gold Dial Color: Grey, solid silver Indexes: Digital display with Arabic numerals Lume: None Strap/Bracelet: Dark brown alligator strap with white gold prong buckle Caliber: L043.8 Functions: Hours, minutes, seconds, power reserve, date Diameter: 37mm Thickness: 8.9mm Power Reserve: 72 hours Winding: Manually wound Frequency: 3 Hz (18,000 vph) Jewels: 70 Total Components: 516 Additional Details: Constant force escapement Price: $96,700

HANDS-ON WITH THE MAURICE LACROIX AIKON AUTOMATIC SKELETON Maurice Lacroix had already made an impression with innovations and complications such as – retrograde calendars, mysterious seconds, square wheels – and unique skeletonization on its Masterpiece collection.

Maurice Lacroix is renowned for the affordability of its timekeepers, whether quartz or mechanical Masterpiece. In 2016, the brand from Saignelégier in the Swiss Jura, introduced the new AIKON collection. A very contemporary quartz model. The Automatic was introduced in 2018 and the family expanded with an automatic mechanical skeletonized watch.

STRONG AND ELEGANT DESIGN The modern design of the AIKON, architectural and strong, proudly asserts itself here. We are in the sports watch universe. Masculine and imposing. The case has grown from 42 to 45mm for the automatic 3 hands version, and the thickness is 13mm. The timekeeper does not go unnoticed. The round bezel sets itself on a round case in a very subtle architectural balance. It could have been on the heavy side, and it is not!

The alternating brushed finishing of the case with its mirror polished angles and of the matte bezel whose flank and double indexes placed every two hours are also polished.

These elements convey a very elegant and qualitative touch to this Aikon Automatic Skeleton.

Its sporty, robust and masculine character is asserted, yet softened by these refined and discreet notes. The integrated lugs, shorts and plunging, optimize the comfort of the wearer and bring lightness – all proportions kept – to the whole.

A NEW AUTOMATIC SKELETONIZED CALIBER Maurice Lacroix is no stranger to open-worked watchmaking. This horological craftsmanship has already been introduced on their iconic Calypso collection as early as 1993. It also adorns numerous models of the Masterpiece collection.

The brand from the Swiss Jura knows how to master it and to add its distinctive touch. Hence this new caliber, specially created internally for the occasion, the ML234, is based on the ML134 that is found in the Masterpiece family.

The balance wheel bridge, the barrel, and the oscillating mass are all masterfully open-worked

MAURICE LACROIX AIKON AUTOMATIC SKELETON

and clearly visible through the sapphire case back. Likewise, the hours and minutes setting wheels, as well as the winding wheels, are skeletonized and animate respectively the front and the back of the timekeeper. Moreover, the caliber, which beats at the very horological frequency of 18’000 vibrations per hour, offers an optimized power reserve of 52 hours.

The applied hours indexes are rhodium plated, as are the hours and minutes hands. It reinforces the contrast… and adds further readability..

The timekeeper offers a perceived value far superior to its competitive price tag. Indeed, at CHF 5600.00, Maurice Lacroix delivers an automatic mechanical piece of great quality with a strong character, technical innovation, elegant and distinctive finishings, at an affordable price.

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LUXURY & LIFESTYLE - TOP BRAND

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BASELWORLD 2019: CYRUS KLEPCYS VERTICAL TOURBILLON WATCH

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Although Baselworld is over, there’s no rest for the weary journalist as we soldier on bringing you all the best watches we can along the way. This time, we shift our focus to a very small and relatively obscure independent watchmaker called Cyrus. Based in the watchmaking centre of Le Locle, Cyrus watches are extremely unique creations, worked on by master craftspeople. The three new watches presented are just some of the evidence of how formidable this watchmaker is.

The odd name, Cyrus, comes from the ancient king, Cyrus the Great. Under his rule, the world saw the first Persian empire rise. This would be the

ultramodern architectural building, like some hightech water wheel perhaps. Incidentally, the inspiration for this bridge design was Leonardo Da Vinci’s ingenious self-supporting bridge.

This sphere, decorated with microbillé (shot peening), indicates the number of days remaining in the power reserve excitingly, the power reserve is a meaty 100 hours. The dark grey galvanised bridges are also decorated in this manner to give a modern feel to the dial contrasted by the exposed retrograde systems which are a mixture of brushed and mirror polished. All this sits under a curved sapphire crystal which is 1.2mm thick. The mastermind behind this

largest empire the world had seen at the time, stretching from the Dardanelles to the Indus River which flows through China, India and Pakistan.

The Klepcys Vertical Tourbillon was introduced in 2018 and was Cyrus’ first crack at the complication.

The idea being that a vertically mounted tourbillon will overcome the forces of gravity experienced while the watch is being worn, as a traditional tourbillon is laid flat where its functions are somewhat limited. In this watch, it’s mostly hidden under a big central bridge, but it is there and looks fit to be in an

masterpiece is an unsung hero of the watch world, Cyrus’ technical expert and watch developer JeanFrançois Mojon.

I think these new watches could well be contenders for the title of ‘coolest watch of 2019 so far from an independent’. It’s a bit of a long title, sure, but there’s something special about a watch from a maker you’ve barely heard of and certainly never seen. When that watch is a vertical tourbillon with retrograde indications, it’s something else entirely. I hope Cyrus sees this; I’d like to talk

finance. Here are the specs: CASE New redesigned case made up of 26 parts Diameter: 44 mm excluding the crowns Thickness: 19,9 mm Available in the following materials: – Grade 5 titanium with black DLC treatment – 4N 18K rose gold – Two-tone in 4N 18K rose gold and grade 5 titanium with black DLC finish Bezel: titanium black DLC on the titanium and two-tone versions, and in 4N 18K rose gold on the gold version Crown at 9 o’clock: hour increment by pushing the button Sapphire crystal on dial: anti-reflective treatment on both sides, domed and tailormade, thickness of 1.2 mm DIAL Skeleton dial showcasing the finely decorated elements of the movement placed in a symmetrical position: – Two parallel barrels at the top (between 12 and 9 and between minutes 00 and 25), rhodium plated with engraved triangle motif – The cams are mirror-polished Central tourbillon enhanced by a threedimensional bridge comprising two brass arches with a gold “microbillé” finish, or black DLC treatment, depending on the version, with bevelled, polished edges MOVEMENT In-house manufactured handwinding movement, calibre CYR625 Dimensions: 36.4 mm Ø x 14.4 mm thickness Number of parts of the complete movement: 344 / Number of jewels: 53 / Frequency: 3 Hz Power reserve: more than 100 hours Two parallel barrels with black lacquered ratchet-wheels with the Cyrus logo Swiss pallet fork escapement Number of parts of the tourbillon cage: 52 / Weight of the cage: 0.706 g.

Central tourbillon on vertical axis at a 90° angle STRAP In alligator leather DLC version: black alligator with folding clasp in titanium black DLC Gold version: brown alligator with folding clasp in 4N 18K rose gold Two-tone version: black alligator with folding clasp in titanium black DLC Clasp customised with the Cyrus logo Limited to 5 examples of each case type.

ANGELUS U51 DIVER TOURBILLON WATCH This sporty watch is a beast and there are only 25 pieces of them, folks here is the U51 Diver Tourbillon.

Furthermore, this is a skeletonized watch with an impressive 300 m water resistance achieved by using a helium escape valve placed at 9 o’clock.

Angelus has really invested on U51 Diver Tourbillon as they were able to add a whopping 5-day power reserve to its highly efficient A–310 calibre. This is achieved by using a silicon lever escapement and titanium materials.

Another reason is that the tourbillon cage is set on a ball bearing thereby adding more stability. Since this is an skeletonized watch with a sapphire caseback, we can see the fantastic movement in all its glory. It features sandblasted plates and bridges making the titanium material look stunning.

As for the 45 mm case, it is made of the same titanium combining different finishes such as sandblasted, brushed, and polished.

Somehow it achieves a nice aesthetic but if you ask me, a more cohesive finish could have been better. Being neat might be overrated for this watch since it has a wavy patterned carved bezel along with the chapter ring. It also has 2 same size screw down crown at 2 and 4 o’clock.

Moving on to the dial, it is a beautifully crafted skeletonized display showcasing the A–310 calibre.

Legibility is fine considering that this is an open worked dial thanks to the combination of blue, orange and sandblasted titanium finish. The hands and indices are of course lumed to gain more readability. Honestly, my eyes would be glued to the cool movement underneath the dial. Moreover, the blue and orange chapter ring has Arabic numerals adding a nice contrast to an already cool dial.

The limited Angelus U51 Diver Tourbillon is indeed a beast and with 300 m of water resistance, you can take it with you anywhere. I like the large case as it just fits my wrist comfortably, also it does not look bulky considering its rather bold look.

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Augustin watches: Time becomes art

Augustin Matei deserves to be famous, as he is an endangered species: an artisan. The idea is simple: you come with your wish or desire and he turns it into a watch. The limit can only be the availability of components, because for his imagination – the sky is the limit. And one more thing - it's affordable...

This watch is a tribute to the Polish pianist and composer – Fryderyk Chopin. He was one of the greatest and most outstanding composers of this country, and his music is recognized today all over the world. Until now, prestigious Chopin Competitions are held in Warsaw, in which take part the most prominent pianists from all over the world. Dial of the watch is handmade painted with the image of the composer and below that we can see piano keys made from nacre and stone.

Dimensions: 47mm diameter Movement: Swiss automatic, ETA 2824-2 calibre

APOLLO 11

MEMENTO MORI WATCH

CHOPIN The watch inspired by the Apollo 11 spaceflight mission. During that mission, Neil Armstrong, as the first man in the world, put his steps on the moon and said: „It is a small step for man, one giant leap for mankind.” The dial is made in silver and the graphics are created by micro-painting and engraving technique.

Dimensions: 44mm diameter Case: stainless steel, sapphire glass Movement: Swiss automatic, ETA 6497 unitas, modified movement Strap: lizard leather JULES VERNE NAUTILUS GX

The unique watch of Augustin and Adrian – Memento Mori is a project that combines the hearts, minds and passion of two professionals: artistic vision and skills of Augustin with the highest class of watchmaking Adrian. The Artist, using the symbols characteristic of the “Memento Mori” motif, reminds about the inevitability of fate and the time passing by. Dimensions: 44 mm diameter / Movement: Swiss automatic movement modified by Adrian watchmaker, ETA 2892 calibre, with +4 jewels extra Strap: blue ostrich leather, handmade by Vasile Uglai This is the first watch in the world made with stained glass technique. On the dial is painted Saint Gabriel – symbol of resurrection, mercy, truth and joy.

The figure of Angel is made with micro-painting technique in Byzantine art style. Dimensions: 44mm diameter Case: stainless steel, yellow gold skeleton Movement: Swiss automatic, ETA 6498 unitas, function that can turn in the self axis Strap: brown lizard leather

CHINESE DRAGON

SAINT GABRIEL

Dedicated to 20.000 leagues under the sea after Jules Verne novel.

Dial is handmade with micro-painting on silver.

Dimensions: 42mm diameter Case: stainless steel, sapphire glass, 10 atm water resistant Movement: Swiss automatic, ETA 2824-2 calibre Strap: stingray leather, handmade

by Vasile Uglai

Inspired by one of the Chinese Horoscope symbols, The Dragon. Created for strong and ambitious characters who are ready to show their strength to the world. The dial is made by using a micro-sculpture and hand engraving technique, it has also diamond stone fitted as an eye. / 42mm diameter / Case: stainless steel, sapphire glass, handengraved dragon Movement: Swiss automatic, ETA 2824-2 calibre Strap: violet alligator leather, handmade by Vasile Uglai

FERDINAND BERTHOUD CHRONOMÈTRE FB 1L WATCH WITH COMPLEX MOON DISPLAY I have deep respect and appreciation for brands who choose to take the lesser travelled path and end up creating something unique and I would certainly count Ferdinand Berthoud among one of them. Featuring strikingly distinctive dial design and being powered by innovative and complex mechanical movements Ferdinand Berthoud watches can easily be considered as great examples of horological art. During Baselworld 2019 the brand introduced the Chronomètre FB1L a compelling new variant of its Chronomètre FB1 watch featuring an intriguing moon phase complication. So, let’s have a quick look.

As this new watch is based upon the Chronomètre FB1 it exhibits similar design ethos. It all begins with the 44mm octagonal modular case which for this new model would be available in two variations. A more traditional looking 18kt gold version and a modern looking sandblasted version.

Moving on to the face of the watch you have either a silver or a black dial complementing the two cases. The layout looks quite familiar with a large centrally mounted seconds hand and off-centered minutes and hours but also presents a few key differences. Firstly the tourbillon is no more visible on the dial side giving the watch a cleaner look.

Further to that two new indications related to the age and phase of the moon have now been added to the dial.

The moon phase is divided into 4 parts and has been displayed between 4 and 5 using a circular window with a pointer in front. Between 6 and 9 is a complex mechanism that helps determine the age of the moon. It uses an angled hand that moves over an applied track with markings from 1-14 to count the number of days since the last new moon. The mechanism is bi-directional implying that once the hand reaches the 14-day mark it would slowly go back to its original position, indicating an ascending or a descending moon.

Powering the Ferdinand Berthoud is the complicated and technically innovative hand wound caliber FB-T.L. The major highlight of this movement is its inverted one-minute tourbillon along with the suspended fusee and chain

mechanism. The movement operates at a frequency of 3 Hz and offers a power reserve of 53 hours. It has been beautifully decorated and can be admired through the sapphire crystal exhibition case back.

In all, the Ferdinand Berthoud the Chronomètre FB1L is a stunning looking watch with a peculiar take on the moon phase complication.

The watch would be accompanied by a black leather strap and would be priced at CHF 250,000 for the FB1L.4 (sandblasted) and CHF 265,000 for the FB 1L.1. Both variants are limited to just 10 pieces.

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LUXURY & LIFESTYLE - TOP BRAND

LUXURY & LIFESTYLE - TOP BRAND

CZAPEK & CIE PLACE VENDÔME ETINCELLES AND OMBRES LIMITED EDITION WATCH Czapek & Cie released two luxurious additions for Baselworld 2019 to the Place Vendôme Collection namely the Etincelles (limited to 25 pieces) and Ombres (limited to 10 pieces). These amazing timepieces also feature a tourbillon and a GMT function, something to be excited for actually.

Grade 5 titanium is used for the Ombres or shadows model and the finishing on the 43.5 mm case is somewhat rugged in appearance due to the grayish hue of the sandblasted titanium. Another cool effect of titanium is being light on the wrist. The overall design is clean particularly the thin bezel.

Moving on to the dial, we see a day/night indicator snugged in between the suspended tourbillon at 8 o’clock and the second time zone at 4 o’clock. Finally, the time display is at the upper half of the dial featuring lumed white gold hands against a black enamel ring, steel polished bridges and sandblasted plate.

Next is the Etincelles watch featuring seventy-two baguette diamonds on the bezel and extending all the way to the lugs. This model uses a 43.5 mm platinum case instead of titanium. The Etincelles model also keeps the original design of the Place Vendôme particularly the use of Fleur de Lys hands on the time dial.

Both watches are powered by a Chronode developed hand-wound SXH2 Czapek movement seen through the exhibition caseback of both models. It beats at 3 Hz frequency and is capable of yielding 60 hours of power reserve.

Finally, both watches wear on a matching alligator strap with either platinum or titanium buckle.

HOROLOGICAL MACHINE NO8

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When he was young, MB&F founder Maximilian Büsser dreamt of becoming a car designer, but that wasn't an option and he ended up designing watches instead. Or did he? It wouldn't take much to scale HM8 up to car size, drop a 1,000+ horsepower motor under the hood and put a set of slick racing tyres under the chassis. While visually it is those polished roll bars linking HM8 to the Can-Am supercars, it's the rebellious spirit of working outside restrictive rules that really provided the inspiration for HM8.

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The HM8 engine is a compact, in-house developed movement built on a Girard-Perregaux base, with a jumping hour disc and a running minutes disc. Optical prisms fixed over the discs at specific points capture the time, refracting and magnifying the numerals so they can be read on a vertical plane. Horological Machine N°8 is completely pared down in terms of exterior cladding, not just to emulate the bare-all aesthetic of Can-Am race cars, but also to allow as much light as possible to flood the prisms and maximise the clarity of display.

Engine, indications and reflective prisms: HM8 is powered by an in-house developed bi-directional jumping hour and trailing minute indication module, on a Girard-Perregaux base movement.

The movement is inverted to put the winding

rotor on top and modified to drive the prism indicator module. The power reserve is 42 hours.

Three-dimensional engine conceived and developed by MB&F from a GirardPerregaux base calibre: Automatic battleaxe winding rotor in 22k gold with purple PVD / Power reserve: 42 hours / Balance frequency: 28,800bph / 4Hz / Number of components: 251 / Number of jewels: 30 Functions/indications Bi-directional jump-

BACKES & STRAUSS VICTORIA PRINCESS RED ROSE In 2016, Backes & Strauss welcomed the Victoria Princess Emerald Green and the Victoria Princess to the delightfully feminine Victoria Collection, infusing the timeless design with a zesty touch.

These new scintillating timepieces build on the elegant interlocking Hearts design, without jeopardizing the playful charm of the classic collection. The tactile interior gold finish of the bracelet has been designed for ultimate comfort.

The linked hearts on the bracelets are intertwined, repeated again and again in a circle of everlasting love.

The Victoria Princess Red Rose, a new interpretation of the diamond set Victoria Princess watch introduced in 2016, see the addition of luscious red rubies, handset into the loops of the interlocking hearts. The watch features an 18k white gold case with interlocking hearts set with 212 diamonds and 12 rubies; Mother-of-pearl centre dial hand set with

4 Ideal Cut diamond indexes; crown with white Ideal Cut diamond; Jewellery interlocking hearts bracelet set with 388 diamonds and 32 rubies.

Technical details Model: Victoria Princess Red Rose Size: 18mm dial, 35mm incl. interlocking Hearts Case: 18k white gold case with interlocking hearts set with 212 diamonds, 1.80 cts and 12 rubies, 0.76 cts Dial: Mother-of-pearl centre dial hand set with 4 Ideal Cut diamond indexes, 0.04 cts Crown: 1 white Ideal Cut diamond, 0.12 cts Movement: Quartz movement Bracelet: Jewellery interlocking hearts bracelet set with 388 diamonds, 2.54 cts and 32 rubies, 2.15 cts Total carats: 604 Ideal Cut diamonds, 4.38 cts and 44 rubies, 2.91 cts

ing hours and trailing minutes displayed by two optical prisms that both reflect and magnify Case, roll bars, and crystals: The complete top of the HM8 case is one piece of sapphire crystal with sections of the

crystal metallised to create a bluish border. The roll bars are in grade 5 titanium, which has the desired qualities of being light in weight and high in strength.

Titanium cannot be bent easily into the desired long curve, which means that each roll bar has to be milled from a

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solid block of titanium Ti-6Al-4V; significantly stronger than commercially pure titanium and boasting a unique combination of lightness, strength and resistance to corrosion.

Case Material: 18K white gold and grade 5 titanium Dimensions: 49 mm x 51.5 mm x 19 mm Number of components: 60 components Water resistance: 30 m / 90' / 3 atm The bi-directional jumping hour and trailing minute displays on HM8 are materialised by overlapping discs rotating horizontally on top of the movement; yet the time indications are displayed vertically in a ‘dashboard’ at the front of the case. To achieve this, MB&F worked with a high-precision optical glass supplier to develop reflective sapphire crystal prisms that reflect light from the discs 90°, and also magnify the indications by 20%.

Sapphire crystal is much more difficult to work to optical precision than glass, and it took considerable development and meticulous care in production to create crystals that reflect and magnify light without the slightest distortion. The vertical, forward-facing display makes HM8 Can-Am an excellent driver’s watch, as there is no need to lift your wrist from the steering wheel to read the display.

Strap & buckle: Black hand-stitched alligator strap with white gold folding buckle.

PIPER-HEIDSIECK BEJEWELLED CHAMPAGNE BOTTLES – US$152,000

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Good champagne has always been expensive, but rarely have we seen a bottle with a US$152,000 price tag. Piper-Heidsieck has just launched an extremely rare edition. The prestige cuvée Rare champagne is adorned with hundreds of tiny diamonds meticulously fixed on by hand. The bottle was exclusively designed

by French jeweller Mellerio, and it contains vintage champagne from 1997. The champagne is aptly called Rare Le Secret High Jewellery. The bespoke bottles constitute the real value, although the champagne inside is one of the finest.

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Each individual bottle is fastened with a piece of jewellery and features a closure crafted from 24-carat gold. The limited edition champagne bottle has white and yellow gold bands wrapped around the neck. The bottle features gold ribbons that are set with over 500 tiny diamonds.

Besides, there is a larger onecarat diamond, a ruby, and an emerald or a sapphire centerpiece. A total of 10 bottles were produced, and they include diamond and sapphire editions for sale in the USA and UK, a diamond version for France, and the other destinations have not yet been disclosed.

The champagne has a hint of sandalwood and yellow fruit, which provides a beautiful blend and wonderful taste. The whole package is housed within a mirrored presentation box. The PiperHeidsieck bejewelled champagne bottles retail at US$152,000, with the UK versions going on sale at Harrods for £115,000.

The value of such fine champagne presented in a diamond encrusted bottle will surely rise due to its limited run and prestigious champagne house Piper-Heidsieck. A collectible and a work of art, it would be a shame to drink the champagne leaving the priceless bottle of Rare Le Secret High Jewellery empty, now wouldn’t it?

BANG & OLUFSEN'S HUGE 4K OLED BEOVISION HARMONY UNFOLDS AND IT HAS TO BE SEEN TO BE BELIEVED Forget rollable TVs, this is the ultimate designer, 77-inch, 4K OLED television and we have the video to prove it

Bang & Olufsen demonstrated its uncompromising approach to design, craftmanship and sound performance once again. The high-end audio brand has unveiled Beovision Harmony a revolutionary television that offers ultimate cinematic and immersive audio experiences. It is currently on display at Milan Design Week which takes place from April 9 to 14.

Beovision Harmony is inspired by some of Bang & Olufsen’s most cherished products. The Capri series, introduced in 1959, was designed to fully integrate with the living room and was built in teak, which was the preferred wood for furniture at the time. The 1964 Beovision Capri 611 FM SJ TV even integrated both a TV and a radio into a single cabinet, allowing people to hide the electronics completely when not in use.

When Beovision Harmony is turned off or just playing music, the thin screen rests close to the floor, partially covered by two oak and aluminium fronts, which house the powerful sound centre.

When the TV is on, the two fronts fan out and the screen rises to allow the perfect viewing height. The crafted oak and aluminium fronts house sublime technical instruments, while the intricate grading pattern is carefully designed to maximize acoustic performance of the threechannel, fully active DSP-based sound centre.

LG’s top-class 77” OLED screen ensures brighter, self-illuminating pixels and stunning color and LG’s most recent webOS 4.5 platform allows to access favorite media service providers such as Netflix, Amazon and YouTube.

Beovision Harmony offers impressive music streaming with integrated music services like

Tune-In and Deezer. The content can be directly directly streamed from smartphone via Apple Airplay 2, Chromecast built-in or Bluetooth. The revolutionary TV also integrates seamlessly with Bang & Olufsen’s growing collection of multiroom products. It comes with a built-in 7.1 surround sound decoder, making it possible to connect up to eight Beolab speakers such as Beolab 18, Beolab 50 and Beolab 90. All sources and connected devices are can be controlled with the Beoremote One. Beovision Harmony, including the LG OLED C9 77” TV optimized for Bang & Olufsen, will cost around from approximately $20,850 and will be available in Bang & Olufsen stores starting October 2019. It will be available with a combined oak wood/aluminium front or a combined Grey Melange two-tone fabric/aluminium front and comes with two placement options: floor stand and wall bracket.

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THE MODERN BUSINESS DRESS CODE DECODED When it comes to business attire, less is more (appropriate and professionally accepted). The way you dress can show power or weakness, determination or lack of interest, and last but not least, the level of your style. Your image speaks a thousand words, so you need to pay a special attention to your business wardrobe in order to make a good impression to your superiors, to your employees or to your business partners. Your look should be polished, no matter your position in the company.

The good news is that the business attire has changed over the years and now men get dressed for work a lot more casual than ever before. And the good thing in this evolution to business casual is that the rigid style rules have been broken and you are free to express your personality through the clothes you wear. This might be a little tricky, though. Too much creativity could destroy your professional

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business look. But if you follow a few basic rules, you will create successful business outfits for every working day. Basically, when you start to create a business wardrobe, begin with neutral colors which are timeless and easy to mix and match – black, white, navy, tan, grey, brown.

Since these pieces will stay with you for a long time, invest in quality over quantity.

THE POWER SUIT If you’re the conservative type, stay true to the traditional suit, a two piece one, in a clean, classic cut, a quality fabric in safe colors like navy - a versatile shade, easy to mix with different patterns - charcoal grey and black. If you want to be noticed for your style, you can go for a double breasted pinstripe suit which reflects the personality and refined taste. You need to know that your business suit should send a powerful message. The details will make the difference. When it comes to shirts, stick to

timeless classics. The white or light blue formal shirts are the perfect choices. Since you go for the safe combination choice, you can play a bit with the tie, in order to inject some personality to your business ensemble. Choose bold colors or prints to express your emotions and personal style. You can start to built your business wardrobe in Trends by Adina Buzatu store where you will find excellent quality garments for your professional looks.

BUSINESS CASUAL ATTIRE Unlike business professional, the business casual dress code is more relaxed and less formal and usually it doesn’t require a tie. In many companies today, you can wear a pair of black trousers, chinos or khakis with a shirt and a blazer instead of a suit. Depending on the company profile you are working for, you can choose to be conservative or unconventional… but still business. For instance, you can wear deconstructed suit pieces. For a formal look with a relaxed vibe, use the power of colors. Mix and match black trousers with a bold suit jacket – turquoise, plum, cherry and complete the look with a paisley print tie in similar shades. They’re all available in TRENDS by Adina Buzatu store.

But be careful because this daring mix requires a white classic tie. If you work in a more creative company, you’re free to combine chinos with a

plain shirt and colored blazer and even give up on your jacket and roll your shirt sleeves on a casual Friday.

Check www.adinabuzatu.to website to see a selection of business and business casual items.

The new colors Since we’re so close to summer, it’s time to get rid of dark colors and inject a joyful vibe in our business attire. Who said colors are forbidden at the office? Actually, the trends dictate pastels at work! It’s time to feel good when working and these new shades of suits will give you the energy you need. You can choose a soft and sophisticated bleu cyan version in a refined contrast with brown dress shoes or a coral shade suit mixed with a black shirt, in order to keep it in the formal side. Golden beige, café au lait, khaki and pastel pink are also to consider, especially in linen versions. Yes, a linen suit can be a perfect option for business in the hot summer days.

Usually, business attire requires polished, impeccable looks which means you need to look for the right fit, the right style, quality cloth and the right execution of your suit. If you want to make a statement, you have to do it right!

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Enjoy your shopping, my dears!

AUTO

MORGAN'S NEW PLUS SIX FLAGSHIP IS ALL-NEW AND HAS THE SUPRA'S ENGINE BUT IS STILL VERY MUCH A MORGAN

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Chances are, if this all-new Morgan Plus Six drove by you, you’d crane your neck around to watch it pass, but not because you were thinking “holy shit, look at that radically allnew Morgan!” but because you were thinking “hey, look, a Morgan!” Most people—even ones who know what Morgans are—wouldn’t have any idea that this was a pretty radical car, for Morgan. But it is, and here’s why.

The Plus Six replaces the old Plus 8 as Morgan’s flagship model, something that pretty much had to happen as the BMW V8 used by the old car wasn’t even used by BMW anymore.

That means this Morgan uses BMW’s B58 turbocharged straight-six, making it Morgan’s first turbo car ever. That’s also the same engine used in the new Toyota Supra, which

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should give car-buyers whose only criteria is a particular engine some fun cross-shopping options.

The turbo straight-six makes about 32

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horsepower less than the old V8, 335 HP and 369 lb-ft of torque, but because the Plus Six weighs so little—about 2370 pounds—it’s actually quicker than the old Plus 8, getting to 62 MPH in 4.2 seconds instead of 4.7.

Visually, the Plus Six looks pretty much exactly how Morgans have looked for decades and

decades. Sure, it’s a good bit wider, has about an inch more of length in the wheelbase, but the overall look, with the big flowing curvy front fenders and every light in its own funny little cylindrical pod and the cut-down doors and tombstone-shaped grille is all pure, raw, uncut Morgan.

WHICH IS EXACTLY WHAT PEOPLE WHO WANT MORGANS WANT. Under the skin is where things are more different, as Morgan is using an all-new aluminum bonded platform that they claim gives a “100% increase in torsional rigidity” over their last aluminum platform, which is, I guess, entirely better. You’ll also note on that image up there that Morgan is still very much Morgan, which means that the body’s frame is still ash wood, just like they’ve been doing for over a century, and will likely

be the only automaker to keep doing it for centuries to come, on into an era when fusion-powered Morgans are feeding space termites on our Europa colony.

Inside, there’s a good bit more interior room for both people and luggage than before, but that’s not exactly a high bar to set with a Morgan. The dashboard includes a color, in-dash LCD screen for the first time in a Morgan, and you’ll probably notice that BMW shifter stuck in there, too.

That’s because the only transmission available is BMW’s 8speed automatic, something that just seems strange in a Morgan, but, what the hell, even an anachronism like a Morgan has to make compromises for modernity. This is Morgan’s top-of-the-line car, so while it’s not cheap, it’s cheaper than the outgoing Plus 8. The Plus Six starts at around $102,524 (£77,995). Even though I gave that price in American dollars, I wouldn’t hold my breath for these to come to America. I don’t even see any bumpers on this thing, unless those turn indicators are much more substantial than I’m imagining.

While I’d love to see some of these on American roads, I’m just happy that someone out there is still building cars like this, brand-new. I know resto-mod cars have been becoming more and more popular lately, and it’s worth remembering that Morgan is essentially building completely brand-new restomod type cars. All new cars built with new technology and incredibly outdated methods and materials all at the same time. I hope they can keep cranking out these wooden-boned elegant dinosaurs forever.

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