CFI.co Winter 2024-2025

FOLLOWING DOESN’T GET YOU THERE FIRST. ERLING HAALAND WEARS THE NAVITIMER.

MASERATI GRANTURISMO FOLGORE

THE OTHERS JUST TRAVEL

WATCHMAKING ONCE AGAIN FINDS BRITISH SHORES

The Limited Edition Bremont Longitude is a groundbreaking timepiece that not only looks back at our country’s legacy but also forward to an exciting future of British watchmaking. The watch’s case back incorporates brass from the original “Flamsteed Line,” in Greenwich, the very spot where the first Astronomer Royal made his celestial observations in pursuit of an aid to navigation.

It has long been the goal of Bremont to bring watch manufacturing back to Britain. The Longitude represents a milestone in that journey, a homecoming of sorts, and proof that, to get where you’re going, you need to know where you came from.

First Thoughts

The AI Revolution is not coming; it's already here. Artificial intelligence is rapidly transforming industries, automating tasks, and reshaping the very nature of work. To thrive in this new reality, we need a future workforce equipped with a crucial skill: critical thinking.

But why is critical thinking so vital in an AI-driven world? It's about more than just analysing data or solving complex problems. It's about navigating a world where information flows constantly, where misinformation can spread rapidly, and where AI systems themselves may present biased or incomplete perspectives.

Critical thinking empowers individuals to:

• Evaluate information: Discern fact from fiction, identify biases, and assess the credibility of sources, especially online.

• Understand complex systems: Grasp the interconnectedness of technology, society, and the economy, and anticipate the consequences of decisions.

• Collaborate with AI: Work effectively alongside AI systems, understanding their limitations and leveraging their strengths.

• Adapt to change: Embrace new technologies and adapt to evolving job markets with confidence and resilience.

• Solve ethical dilemmas: Navigate the ethical challenges posed by AI, ensuring its responsible development and deployment.

These cognitive skills are not innate; they must be cultivated. And the earlier we start, the better. The early years (ages 0-5) are a period of incredible brain plasticity, where experiences shape the brain's architecture. Introducing critical thinking early can strengthen the neural pathways associated with reasoning, problem-solving, and decision-making, laying the foundation for lifelong cognitive abilities.

Early critical thinking also fosters cognitive flexibility, allowing children to adapt to new situations, consider different perspectives, and embrace change. It provides a strong foundation

for future learning, empowering children to become independent learners, creative problemsolvers, and engaged citizens.

Moreover, critical thinking is intertwined with social and emotional intelligence. It enables children to understand different perspectives, empathise with others, and resolve conflicts peacefully. These skills are essential for building healthy relationships and contributing to a harmonious society.

A Call to Action: Cultivating Critical Thinkers at Every Level

The responsibility for developing critical thinking skills lies not just with schools but with society as a whole. Governments, educational institutions, and employers all have a crucial role to play.

• Governments: Policymakers must prioritise critical thinking in education, from early childhood through university. Emulating nations like Singapore, which have successfully integrated critical thinking into their curricula, can provide valuable guidance. Investing in teacher training and providing resources for innovative teaching methods are essential steps.

• Employers: Businesses must recognise the value of critical thinking in the AI era and invest in developing their employees' AI Skills. This can involve offering workshops, encouraging on-thejob learning, and fostering a workplace culture that values critical inquiry and innovation.

• LLM Developers: Companies developing large language models have a unique opportunity to contribute to this effort. By creating AI-powered educational tools that are accessible and affordable, they can empower individuals of all ages to develop critical thinking skills. This, in turn, will create a more informed and capable user base for their AI technologies, ultimately increasing their value and impact.

Investing in critical thinking today is an investment in human capital for the AI era. The time for action is now.

Correspondence

“ “ “

Syria's recent liberation from the Assad regime fills me with mixed emotions including relief, hope, and a deep sadness for the suffering endured. Before the war, I was a frequent visitor to this beautiful land, captivated by its rich history, vibrant culture, and the warmth of its people.

I recall strolling through the bustling souks of Aleppo, the air filled with the aroma of spices and the sounds of lively bargaining. The ancient city of Damascus, with its Umayyad Mosque and its labyrinthine alleyways, held me spellbound. Palmyra, a jewel of the desert, evoked the grandeur of empires past.

But it was the Syrian people who truly touched my heart. Their hospitality was legendary, always ready with a smile, a cup of strong coffee, and engaging conversation. I remember sharing meals in family homes, the laughter of children echoing through courtyards, and the sense of community.

The war tragically shattered this idyllic image. The suffering inflicted upon the Syrian people is immeasurable, and the destruction of their cultural heritage is a loss for all humanity.

Yet, with the departure of Assad, a new chapter opens. I pray that it will be one of healing, reconciliation, and rebuilding. I yearn to return to Syria, to witness its rebirth and once again experience the joy of its people and the magic of its ancient land.

GEORGE MAXWELL

(Cape Town, South Africa

I read with interest your recent article (Autumn issue) on the challenges facing Boots. As a loyal customer for years, I have a great deal of affection for this iconic high street retailer.

Boots has been a constant presence in my life, from childhood trips with my mother, to teenage years browsing the makeup counters, to more recent visits for prescriptions and healthcare advice. I have always appreciated the friendly service, wide range of products, and convenient locations.

Boots holds a special place in the heart of people in the UK. It is a veritable community hub, a source of trusted advice, and a symbol of our high streets.

I understand that the retail landscape is changing rapidly, and that Boots needs to adapt to survive. I am confident that the company has the strengths to navigate these challenges.

SUSAN SAVAGE (Bristol, UK)

I appreciated your insightful article on CrossFit in the most recent issue. You captured the essence of this dynamic fitness regime and its incredible benefits. As an avid CrossFitter, I can attest to the transformative power it has had on my physical and mental well-being.

CrossFit's constantly varied, high-intensity functional movements push you to your limits and beyond. It's not just about building muscle or losing

weight; it's about developing overall fitness, preparing you for the challenges of everyday life. The camaraderie and supportive community found within a CrossFit "box" are wonderful It's an environment where everyone is encouraged to achieve their personal best.

Beyond the physical benefits, CrossFit fosters mental toughness, resilience, and a sense of accomplishment. It teaches you to embrace challenges, overcome obstacles, and push beyond your perceived limitations.

This is a highly successful business model. Its genius lies in simplicity and scalability. By licensing the CrossFit name and methodology to individual gyms ("boxes"), it allows for rapid expansion while maintaining a consistent brand identity. This decentralised approach empowers local owners to create thriving communities.

The affiliate structure, coupled with the constantly evolving workouts and competitive events, keeps the CrossFit members engaged and motivated. This fosters a sense of loyalty and belonging, contributing to the brand's continued success.

JIMMY WISE (Perth,

Australia)

“Your recent article "Day Trading: High-Risk, High-Reward — and a Knuckle-Biting Thrill Ride" offered a captivating glimpse into the fast-paced world of day trading. However, I believe it's crucial to emphasise the pitfalls that await the uneducated and inexperienced.

While the allure of quick profits and flexible hours is undeniable, day trading is far from a guaranteed path to riches. It requires a deep understanding of market mechanics, technical analysis, and risk management – skills that take time and dedication to develop.

I've witnessed the consequences that can befall those who dive headfirst into day trading without adequate preparation. A close friend, enticed by the promise of easy money, poured his life savings into the market armed with nothing more than online forum tips and a "hot stock" recommendation. Within months, he'd lost everything.

The emotional rollercoaster of day trading can be treacherous for novices. Fear and greed often lead to impulsive decisions, while the constant pressure to make split-second calls can cloud judgment. Without the discipline and experience to navigate these psychological challenges, losses can spiral out of control.

Day traders compete against seasoned professionals and sophisticated algorithms. The playing field is far from level, and the odds are stacked against those who lack the knowledge and resources to stay ahead. I must emphasise the crucial importance of education, experience, and realistic expectations.

DOUG HURD

(Chicago, IL, United States)

“The recent news of General Motors shuttering its Cruise autonomous vehicle division is a significant development in the self-driving landscape. I believe this move corrects a misdirection of focus.

Pouring billions into robotaxi development, as Cruise and others have done, seems premature. I would argue that prioritising the integration of self-driving technology into personal vehicles offers a more practical and impactful path forward.

While robotaxis hold a futuristic appeal, the technology faces significant hurdles, including complex urban navigation, regulatory uncertainties, and public apprehension. Focusing on personal vehicles allows for a gradual and controlled rollout of self-driving features, building trust and refining the technology along the way.

IBRAHIM IDRIS (Lagos, Nigeria)

Editorial Team

Sarah Worthington

George Kingsley

Tony Lennox

Brendan Filipovski

John Marinus

Ellen Langford

Helen Lynn Stone

Naomi Snelling

Columnists

Otaviano Canuto

Lord Waverley

Production Director

Jackie Chapman

Distribution Manager

William Adam

Subscriptions

Maggie Arts

Commercial Director

John Mann

Director, Operations

Marten Mark

Publisher

Anthony Michael

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COVER STORIES

UNCDF

Interview with Executive Secretary Pradeep Kurukulasuriya 14 – 15

Otaviano Canuto

Aging and the Immigration Conundrum 16 – 17

IBM

Reimagining Banking in the Age of AI 18 – 19

Cover Story

Jensen Huang: Visionary Leader Driving NVIDIA and the AI Revolution 24 – 29

EY Argentina 2025 Outlook 102 – 103

Women’s Brain Foundation Cost of Ignoring Women’s Health 134 –135

Asian Development Bank

Cost of Inaction 136 – 137

> Interview with UNCDF Executive Secretary Pradeep Kurukulasuriya The Future of Development Finance: Bridging the Investment Gap

CFI.co: Why do today’s financial mechanisms often fall short in driving development finance to the countries that need it most?

Pradeep Kurukulasuriya, UNCDF Executive Secretary: Development finance is a critical enabler of sustainable economic growth, infrastructure development, and transformation in low-income countries and Least Developed Countries.

Traditionally, development finance has been driven by public sector resources, including official development assistance, domestic public revenues, and concessional financing, mostly from Development Finance Institutions and Multilateral Development Banks. However, these sources alone are insufficient to bridge the needed financing gap to achieve the Sustainable Development Goals. Recognising these limitations, there has been a growing push to crowd-in private capital as a complementary source of development finance. However, private finance faces unique structural barriers that limit its flow to the countries that need it most. The vast majority of private capital flows through regulated and credit-rated financial institutions, which are subject to stringent regulatory requirements, including capital adequacy ratios, and risk-weighted asset frameworks. While these safeguards ensure financial stability, they also limit the ability of banks and investors to lend in high-risk environments.

Additionally, credit ratings further restrict investment. AAA-rated institutions, for example, must minimise exposure to high-risk markets to maintain their ratings, resulting in a market failure where capital does not flow to where it is most needed, despite very promising financial, socio-economic and SDG impact returns. Beyond regulatory and credit constraints, structural inefficiencies such as high transaction costs, the absence of bankable investment pipelines, and foreign exchange risks further deter investment in Least Developed Countries. These challenges, among others, contribute to a persistent financing gap that leaves critical sectors underfunded, preventing these economies from accessing the capital they need to drive sustainable development.

Why is the UN Capital Development Fund in a unique position to bridge this financing gap, as development finance is increasingly becoming scarce?

UNCDF: UNCDF operates in a space where traditional finance mechanisms struggle. Private

capital remains reluctant to flow into high-risk markets due to perceived risks, high capital costs, underdeveloped project pipelines, and weak enabling environments.

Additionally, uncertain regulatory frameworks and foreign exchange risks make investment in these countries less attractive. We aim to play a catalytic role in addressing these barriers by deploying blended finance solutions, including grants, concessional finance, and guarantees, to mitigate risk and attract commercial capital. For example, unlike rated institutions, UNCDF is unrated, allowing us to absorb higher risks that private investors and even Development Finance Institutions cannot take on. This enables us to de-risk investments and unlock market potential.

UNCDF also operates in the crucial investment range of $500,000 to $15 million, a space too large for microfinance institutions and usually below the radar of MDBs. This niche focus ensures that small and medium-sized enterprises, local financial institutions, and

infrastructure projects in high-risk, underserved markets.

Beyond providing capital, we help strengthen local financial ecosystems by improving regulatory environments, enhancing investment pipelines, and building the capacity of financial institutions to manage risk and scale investments. By playing this catalytic role, UNCDF helps ensure that capital reaches where it is needed most, unlocking local economic potential and accelerating SDG progress in fragile and underserved markets.

How does UNCDF’s work enhance the overall impact of the UN ‘on-the-ground’?

UNCDF: The Sustainable Development Goals require a lot more than driving private investment into places where there is insufficient public money. While UNCDF de-risks investments to attract capital, financing access alone is insufficient. In fact, implementation capacity, market linkages, and institutional support are equally critical.

UNCDF Executive Secretary: Pradeep Kurukulasuriya

UNCDF enhances the UN’s impact by ensuring that financing solutions are aligned with local needs and global development goals. On the ground, UNCDF operates with a lower cost structure and localised presence, enabling granular engagement with local governments, financial institutions, and SMEs. This allows us to provide long-term support to investments, unlike traditional financiers that focus primarily on disbursing capital.

Beyond financing projects, UNCDF works with UN agencies (with the United Nations Development Programme in particular being a key partner), governments, and private sector actors to remove policy and regulatory bottlenecks that hinder investment. For example, in financial inclusion, UNCDF collaborates with central banks and FinTech to expand access to digital financial services.

Importantly, many development challenges require multi-sector solutions. For instance, if UNCDF finances renewable energy projects in rural areas but farmers lack access to water for irrigation, or require technical assistance for capacity development for the agriculture value chain, we work with other UN agencies and partners to address these interdependencies, ensuring that development outcomes are holistic and sustainable.

How can unlocking capital and attracting new investment make a long-lasting impact in these markets?

UNCDF: Achieving the SDGs requires $2.5 to $4 trillion dollars per annum until 2030— an enormous challenge. But if we can help countries, particularly those that are furthest behind, stock-taking those first steps in crowding capital, we are effectively catalysing

a significant number of countless other knockon changes that will enable these countries to move forward on their own and reach the kind of aspiration that all countries have for themselves. This is our mission - to support market development by enabling entities to access finance in high-risk environments. We do this by deploying a diverse set of financial instruments and blended finance mechanisms, while providing investment advisory services in partnership with UN entities and other development partners to provide the kind of assistance with speed and agility to ensure larger streams of commercial finance enter these economies. This is a unique capability in the UN System, one which other UN Agencies that are working to crowd in private sector will be reliant on to enhance their own work in crowding in additional investment toward development solutions.

2024 was a year with 3 major climate conferences, where finance figured prominently in the discussions and negotiations. What are UNCDF’s next steps in 2025 to help crowd-in much-needed development finance to achieve the Sustainable Development Goals?

UNCDF: The back-to-back climate conferences in 2024 highlighted the interconnectedness of global challenges and the need for integrated action.

The UN Capital Development Fund is an organisation has been around for 60 years, but it in all honesty, it's not an organisation that has really fulfilled its true mandate over those 6 decades. UNCDF, is now more critical than ever in addressing the crises of our time—including rising living costs, insecure jobs, and a lack of affordable housing—that are affecting people worldwide. While multilateral development

banks are undergoing reforms, these efforts alone cannot fully address the challenges in high-risk and underserved markets. And this is why the United Nations, as Dag Hammarskjöld said, was not created to bring us to heaven, but in order to save us from hell.

Since coming into UNCDF over seven months ago, I have prioritised reforms to make the organisation more fit for purpose and aligned with its core capital mandate, while working in support of the UN development system. As I said on my first day at work, UNCDF’s success will be measured by how effectively we enable and support other entities within the UN development system to achieve their goals.

For example, in countries like Papua New Guinea, Kenya, and Zambia, UNCDF is actively working to mobilise private capital from pension funds, sovereign wealth funds, and local banks for impactful development projects. Through partnerships with philanthropy and foundations, UNCDF aims to scale these efforts globally—fast-tracking development, fostering economic resilience, and creating opportunities for future generations. i

ABOUT UNCDF

The United Nations Capital Development Fund (UNCDF) is the United Nations' flagship catalytic financing entity for the world’s 45 least developed countries (LDCs). With its unique capital mandate and focus on the LDCs, UNCDF works to invest and catalyse capital to support these countries in achieving the sustainable growth and inclusiveness envisioned by the 2030 Agenda for Sustainable Development and the Doha Programme of Action for the least developed countries, 2022–2031.

Otaviano Canuto Aging and the Immigration Conundrum: A Demographic Dilemma

Across the globe, populations are aging as declining fertility rates and increased longevity reshape demographic landscapes. While longer life expectancy is a testament to medical and public health advancements, the persistent decline in birth rates presents an economic challenge of immense proportions. Age pyramids are shrinking at the base while expanding at the top, a shift that raises pressing questions about the future of economic growth, productivity, and social stability.

Structural factors largely explain falling birth rates. Urbanisation, rising educational attainment, and increasing female participation in the labour market have led to a shift in societal norms, with many opting for smaller families. The economic burden of childrearing, coupled with the perception that fewer children enable a better quality of life, has reinforced this trend. Notably, no country has successfully reversed the decline once it has passed below the replacement threshold, despite various governmental incentives aimed at boosting fertility.

DEMOGRAPHIC TIPPING POINTS

Countries experiencing declining fertility rates inevitably reach a demographic tipping point where the population begins to shrink. In a recent study, "Demographic Dynamics and Immigration Policies in High-Income Countries", Eduardo Andrade and I analysed how different nations are approaching this threshold at varying speeds.

We identified three broad categories of countries:

• High-fertility nations: This group includes 52 countries—41 in Africa, ten in Asia, and Papua New Guinea in Oceania—where the fertility rate remains above 2.9 children per woman. Barring unexpected shifts, these populations will continue to expand until the end of the century.

• Declining-population countries: Ninety-four countries fall into this category, spanning all continents and income groups. Some, such as Italy and Japan, are already experiencing population contraction, while others are expected to follow within this century. Sixtyfour of these nations already have fertility rates below the replacement level of 2.1, and the remaining are on a clear trajectory towards it.

• Immigration-mitigated countries: Fourteen high-income nations—including the United States, Canada, and Australia—have thus

far managed to offset declining birth rates through immigration. In all but one (the Czech Republic), foreigners make up at least 10% of the population. While deaths will eventually outnumber births in these countries, their overall populations may continue to grow— provided they remain attractive destinations for migrants.

THE ECONOMIC CHALLENGES OF AGING

Aging societies face two principal economic hurdles. The first is what we have termed the “geriatric fiscal trap.” In most developed economies, social security systems operate on a pay-as-you-go model, with current workers funding benefits for retirees. As the working-age population shrinks and the elderly population grows, pension expenditure will outpace contributions, creating fiscal strain. Health care spending also rises in aging societies, further exacerbating budgetary pressures.

In response, governments will be compelled to raise taxes or adjust benefits, but higher taxation could suppress economic activity, reducing disposable income and discouraging larger families—thus further shrinking the future tax base. Raising the retirement age is an obvious solution, yet politically fraught, given that older voters constitute a powerful electoral bloc.

The second challenge is declining productivity. With a shrinking workforce, economic output is at risk unless labour participation rises or automation compensates for the shortfall. Innovation could also suffer; history suggests that scientific and entrepreneurial breakthroughs are disproportionately driven by individuals under 50. If aging societies fail to cultivate creativity in older populations, they may struggle to maintain the pace of technological and economic progress.

Some optimists argue that artificial intelligence and automation will offset the impact of a

shrinking workforce, boosting productivity even as populations age. However, while technology may alleviate some pressures, it cannot fully replace the economic dynamism that comes from younger, active workforces.

IMMIGRATION AS A PARTIAL SOLUTION

For now, immigration remains the most effective mechanism to counteract demographic decline. Our research highlights how immigration has contributed to economic growth in highincome countries by replenishing the workforce, stimulating demand, and alleviating the fiscal burden of aging populations.

The United States offers a compelling case study. Foreign-born workers in the U.S. tend to have higher average levels of education than their native-born counterparts, a factor that has undoubtedly contributed to a "brain drain" in many of their home countries. Moreover, the post-pandemic economic recovery in the U.S. would have been far slower without increased immigration, which bolstered labour supply at a critical moment.

THE IMMIGRATION CONUNDRUM

Yet, despite its economic benefits, immigration faces mounting resistance in many high-income countries. Anti-immigrant sentiment has been a decisive force in elections across Europe and North America, with populist movements leveraging fears of cultural displacement and economic insecurity to rally support. This backlash has complicated policymaking, with governments struggling to reconcile economic necessity with political reality.

Interestingly, opposition to immigration is not uniform. In some cases, resistance is selective. For example, within the U.S., divisions exist among conservative policymakers, with some advocating for a total halt to immigration while others favour policies that prioritise highly educated migrants. Similar patterns are

evident in Europe, where certain governments have embraced skilled migration while simultaneously imposing strict controls on lowskilled labour inflows and refugee admissions.

THE FUTURE: IMMIGRATION VS. DEMOGRAPHIC DECLINE

As demographic imbalances persist, the global migration landscape is likely to become even more complex. Climate change will add another layer to the equation, exacerbating economic and social pressures in already vulnerable regions, thereby increasing migration flows. At the same time, wealthier nations will face growing economic incentives to attract skilled foreign workers, setting up a tension between economic imperatives and political constraints.

If history is any guide, economic logic alone is unlikely to override nationalist impulses. However, as labor shortages intensify and pension systems come under strain, the need for pragmatic immigration policies will become harder to ignore. The question is not whether immigration can help address aging-related economic challenges—it already does. The real question is whether societies are willing to accept it as part of a long-term solution.

The demographic challenges facing the world are profound, and there is no one-size-fitsall answer. Immigration is not a panacea, but for countries on the frontlines of demographic decline, it remains the most viable tool to mitigate economic stagnation and fiscal distress. Whether governments can implement policies that strike the right balance between economic necessity and political feasibility will determine how the next chapter of global demographic shifts unfolds. i

Based on Canuto, O. and Andrade, E., “The Rich World’s Immigration Conundrum”, Project Syndicate, July 30, 2024, and “Demographic Dynamics and Immigration Policies in HighIncome Countries”, Policy Center for the New South,3April2024.

ABOUT THE AUTHOR

Otaviano Canuto, based in Washington, D.C, is a former vice president and a former executive director at the World Bank, a former executive director at the International Monetary Fund, and a former vice president at the Inter-American Development Bank. He is also a former deputy minister for international affairs at Brazil’s Ministry of Finance and a former professor of economics at the University of São Paulo and the University of Campinas, Brazil. Currently, he is a senior fellow at the Policy Center for the New South, a professorial lecturer of international affairs at the Elliott School of International Affairs - George Washington University, a nonresident senior fellow at Brookings Institution, a professor affiliate at UM6P, and principal at Center for Macroeconomics and Development. Otaviano has been a regular columnist for CFI.co for the past 13 years. X: @ocanuto

> Paolo Sironi: 5 Actions to Reimagining Banking in the Age of AI

Financial services embrace transformation, innovation, and a redefined workforce evolution to navigate challenges and opportunities.

The year 2024 marked a turning point for business leaders as they navigated a landscape defined by both conflict and transformation. In such a time of uncertainty, the remarkable speed of AI innovation has also sparked the public's imagination and stimulated boardroom discussions. Longheld assumptions were challenged, compelling organisations to reassess their risk appetite and strike a balance between agility and the reliability of established processes, not only IT.

This journey required CEOs to shed outdated habits and embrace change to stay competitive. According to IBM Institute for Business Value (IBM IBV) research, more than 60% of CEOs in financial services have expressed their willingness to undertake substantial risks to harness automation advantages with AI and enhance their competitiveness. Yet, only 25% of CEOs across all industries express strong confidence in their organisation’s IT infrastructure to support the enterprise-wide scaling of AI. Executives are confronting skill gaps and friction in changing business culture.

Generative AI stood at the forefront of this turning point. And as 2025 unfolds, the focus is shifting to agentic AI—an advanced system designed to autonomously perform a diverse range of functions. Unlike conventional AI assistants, agentic AI is poised to organisations by automating decision-making, problem-solving, and tasks that go beyond the initial training of machine learning models. By granting these AI agents specific permissions, businesses can reimagine workflows, boost operational efficiency, and enable employees to concentrate on more strategic, high-value activities.

Clearly, this rapid evolution also demands that leaders rethink their approach to decision-making. With agentic AI augmenting roles across the enterprise, leaders must focus on guiding strategy and setting boundaries, while empowering their teams to experiment with innovative solutions that drive performance at scale.

A REIMAGINED WORKFORCE EXPERIENCE CAN BOOST PRODUCTIVITY AND RE-BALANCE COSTS Banks are channeling substantial investments into technology, not just to enhance user

Figure 1: Evolving priorities in skills and talent. Establishing priorities and untangling complexities require strategic skills. Source:Augmented workforanautomated,AI-drivenworld:Boostperformancewithhuman-machinepartnerships.IBMInstituteforBusinessValue.August2023.

interfaces but to undertake comprehensive end-to-end architectural redesigns. These investments represented 14% of the global $4.5 trillion technology expenditure in 2023, according to Gartner. However, linking technology spending to financial performance remains a challenge. Unlike other industries, banking economic models are heavily influenced by macroeconomic factors, and regulatory frameworks often dictate the scope of technology application. Furthermore, the total amount spent on technology is not the sole determinant of outcomes. Effective use of these investments is far more critical. For instance, well-utilised technology spending can enhance services, driving client willingness to pay for premium experiences, safeguarding economic value from cyberattacks, and embedding banking functions into broader ecosystem platforms.

Contrary to expectations, research from the ECON Committee of the European Parliament indicates that some banks with lower IT expenditures outperform their higher-spending peers, underscoring the importance of efficiency. Many banks have struggled to translate cost-saving initiatives into sustainable gains, as shown by Costto-Income Ratios (CIR) which remained elevated after the 2008 global financial crisis, particularly in major advanced economies. The largest US banks by total assets exhibited an average CIR of 61.6% in 2024 compared to their EU counterparts at 53.6%, while CIR of major banks was 47.1% in LATAM and 30.9% in China. Over the past 15 years, while total operating expenses in the banking sector have increased, the share allocated to technology has grown more modestly compared to other areas, such as workforce costs, which rose from 50% to 54.6% (see figure 1).

2: Evolution of workforce and tech expenses since 2007. Total operating expenses have increased, but the percentage of operating expenses directed to technology changed less than other expense domains. Source:IBMInstituteforBusinessValueanalysisofS&PGlobaldata.

To drive meaningful financial impact, banks must focus their technology investments on both automation and augmentation, aiming to optimise workforce contributions and generate greater business value per employee.

In a banking industry eager to adopt technology but grappling with skilled labor shortages, generative AI offers a promising solution to narrow the skills gap and bolster competitiveness. However, without a comprehensive plan to redefine workforce engagement, improved efficiency does not automatically translate into operational savings. To fully harness AI-driven efficiencies, banks must focus on reskilling efforts and adopting a new, diversified talent mix.

Maximising the value of emerging skills and talent requires a fundamental shift in how teams work, co-create, collaborate, and execute. Before realising the full potential of STEM capabilities, institutions must first establish clear priorities and address organisational complexities—challenges that demand a strategic approach. This may help explain why the perceived importance of STEM and IT skills has declined since 2016 according to IBM IBV research (see figure 2).

5 ACTIONS TO TURN THAT MOMENTUM INTO REAL BUSINESS VALUE.

To turn that momentum into real business value, banking executives will need to empower people to make the most of the technology at their fingertips. That means democratising decision-making and giving people the tools and training they need to succeed. People are the secret ingredient to winning with AI and automation—but they can’t

succeed without strategic reskilling, security guardrails, and data-driven decision support.

In the coming year, it’s likely that some organisations will begin to set themselves apart. Will yours be one of them? Here are 5 actions that helps bankers to position their institution to accelerate initiatives geared at elevating financial and operational performance at the intersection of enterprise-wide transformations.

1 - Agentic AI is here—but first banks must reskill their workforce. Implement savvy education programs that keep pace with technological advances. AI is an automation advantage as well as an augmentation opportunity—both empowering bankers to reimagine their contributions to a transformed digital industry. This equally applies to business domains and technology departments. Banks might find it difficult to find the skills required and cannot postpone investments to reskill a workforce that is too often trapped in routine tasks and can’t always evolve with the speed of innovation.

2 - Despite efforts to slow growth, banks’ technical debt continues to increase. Pick your battles. The pace of new technology is relentless. Banks must determine where to create business differentiation and how to demonstrate progress with tangible metrics that justify strategic investments. 51% of executives say procuring commitment for multiyear projects is among the top three challenges to realising the full potential of their hybrid cloud strategy. Without agreement between technology and business stakeholders on investment prioritisation, initiatives stall out and technical debt soars.

3 - Banking location is everything, but keep a global view. Adopt industry standards to more rapidly address the pace of change required to better serve client ecosystems with data and AI. Regulation plays a role in the way data can be stored, accessed, and utilised by financial institutions—and this can vary depending on location. Adherence to industry architectural standards mitigates the risk of unnecessary customisation and enables more seamless ecosystem participation across borders.

4 - The rapid pivot to AI has upended IT budgets, but self-funding is imminent. Build cross-domain capabilities to support a broader range of use cases. Banks with a strategic approach to AI development and its governance will outpace banks that pursue AI experimentation with tactical initiatives. Due to the typically high costs associated with setting up frameworks for AI governance, an enterprise-wide approach is necessary to achieve economies of scale.

5 - Banking business models aren’t keeping up with client demand and AI-led innovation. Challenge conventional thinking. Revise your business strategies by transforming how you cater to clients. Expand your capability to serve clients with embedded finance, allowing them to do banking anywhere, anytime. Enhance advisory propositions with AI to capture new service fees, both for consumers and businesses. Reconsider payment initiatives as the backbone for new data to fortify AI-powered risk management across ecosystems.

THE STATUS QUO IS NO LONGER SUSTAINABLE.

The 2019 words of Mario Draghi, former Chair of the European Central Bank, still resonate: “The necessity to adjust the business model to the digitalisation, to the changes in technology, is something much more compelling than being angry about negative rates.” His cautionary warning serves as a poignant reminder that the status quo is no longer sustainable, regardless of shifting macroeconomic conditions and geopolitical tensions. i

More insights can be found in the IBM Institute for Business Value research at: ibm.com/thought-leadership/institute-businessvalue/en-us/industry/banking

ABOUT THE AUTHOR

Paolo Sironi is the global research leader in banking at IBM, the Institute for Business Value, and he is author of business literature. His latest Banks and Fintech on Platform Economies has been Amazon bestseller in banking books worldwide. relinks. me/1119756979

Author: Paolo Sironi

Figure

> hat impact will the next US administration have on economic growth and inflation? The answer is not yet clear, because while some of President-elect Donald Trump’s proposed policies would boost growth and reduce inflation over time, others will have the opposite effect.

Nouriel Roubini: The Good, the Bad,

and the

Uncertainty of the Trump Economy

On the positive side of the ledger, Trump will be pro-business overall, and this fact alone could stimulate economic activity by unleashing the “animal spirits” that drive business investment, innovation, and growth. Growth should also benefit if he and congressional Republicans succeed in permanently extending the corporate and personal income tax cuts that will expire

in 2025. Equally, if the potential excesses of his deregulatory agenda are kept in check, a reduction of bureaucratic red tape could promote growth and encourage competition, reducing prices over the longer term.

Trump also wants to boost America’s oil and gas production by the equivalent of three million

barrels per day, which could reduce energy prices and make domestic energy-intensive sectors more competitive. But one hopes this can be done without phasing out most of the previous administration’s subsidies to green energy.

The “Department of Government Efficiency,” an external advisory committee led by Elon

Musk and Vivek Ramaswamy (two major Trump campaign donors), will come nowhere close to cutting the federal budget by $2 trillion, as originally promised. But if DOGE can identify even $200 billion worth of cuts, that could reduce inefficiencies in the public sector.

Finally, Trump’s growing support among tech leaders suggests that we could see a turbocharging of America’s comparative advantage in many industries of the future, starting with artificial intelligence, robotics, automation, and biomedical research. Not only is the new administration unlikely to stand in these industries’ way, but it will take pains to eliminate any resistance they face from regulators or civil society.

But faster growth and lower inflation from tax policies, deregulation, and other pro-business measures will take time to materialise and, crucially, depend on the impact of the negative side of the Trump ledger. In particular, several policies Trump has promised could lead to higher inflation, either through negative supply shocks or by stoking excessive demand. There is no denying that high tariffs, trade wars, and a decoupling from China will be inflationary and harmful to growth. The extent of the damage, however, will depend on the size and scope of the tariffs and other protectionist policies.

Similarly, draconian restrictions on immigration – not to mention mass deportations – will further undercut growth and drive inflation by increasing labor costs and heightening the risk of labor shortages in key sectors. Moreover, if tax cuts are made permanent and other fiscal promises are implemented without ways to pay for them, the public debt could increase by almost $8 trillion over the next decade. That, too, would stoke inflation, which would increase long-term interest rates and crowd out future investment, undermining growth.

A disorderly attempt to strengthen domestic competitiveness by weakening the dollar also could lead to higher inflation and rattle financial markets. And any real or threatened effort to challenge the US Federal Reserve’s independence would increase both expected and actual inflation.

The impact of geopolitical factors is similarly uncertain. Trump may contain and reduce some geopolitical risks affecting economies and markets – such as the Russia-Ukraine war and the Middle East conflicts – but he may also trigger a broader economic war with China that could fragment the global economy further.

Thus, the Trump administration’s effects on growth and inflation will depend on the relative balance of positive and negative policies. Fortunately, several factors may militate against Trump’s more damaging proposals. The first, and perhaps most important, is market discipline: policies that increase inflation and deficits will rouse bond market “vigilantes,” raise nominal and real (inflation-adjusted) long-term interest rates, and possibly cause a stock-market correction (a decline of at least 10%). Since Trump sees the stock market as a gauge of presidential performance, this signal alone could pour cold water on his most febrile ideas.

Moreover, since the Fed is still independent, it would almost certainly curtail or halt its rate cuts if inflation starts spiking again. The mere possibility of this outcome should serve as an additional constraint on bad policymaking, as should the influence of Trump’s nominees to fill top economic policy positions, who do generally understand the economy and markets. Lastly, the thin Republican majority in the House of Representatives means that Trump cannot necessarily count on his party’s full support for all his policies, especially those that would add substantially to the public debt.

These are all important guardrails. If we confine our outlook to 2025, the net impact of Trump’s economic agenda may be a wash for growth, though the pace of the economy’s return to the Fed’s 2% inflation target is likely to slow. Growth may remain above potential – given strong tailwinds – but it will be lower than in 2024. As long as Trump’s most radical policies are contained – and barring some unexpected development, such as a geopolitical shock – the coming year should be relatively benign for the US economy. i

ABOUT THE AUTHOR

Nouriel Roubini, Professor Emeritus of Economics at New York University’s Stern School of Business, is Chief Economist at Atlas Capital Team, CEO of Roubini Macro Associates, Co-Founder of TheBoomBust.com, and author of the forthcoming MegaThreats: TenDangerousTrendsThatImperilOurFuture, and How to Survive Them (Little, Brown and Company, October 2022). He is a former senior economist for international affairs in the White House’s Council of Economic Advisers during the Clinton Administration and has worked for the International Monetary Fund, the US Federal Reserve, and the World Bank. His website is NourielRoubini.com, and he is the host of NourielToday.com.

Mohamed A El-Erian: A Baseline Scenario for the Global Economy in 2025

t is something of a tradition every December to take stock of the year that is ending and consider what might lie ahead. This is true on a personal level: in my family, we tend to do this around the dinner table. But it is also true more broadly, with the time of year inviting an examination of the intersection of economics, national politics, and global geopolitics.

You would be forgiven if, as a starting point, you expected these three areas to be in alignment. After all, they are deeply interconnected, which suggests self-reinforcing dynamics. But

2024 brought some unusual dispersion in this relationship that actually widened, rather than narrowed, over the course of the year.

Begin with geopolitics. In 2024, Russia secured a greater advantage in the Ukraine war than the consensus forecasts of a year ago anticipated. Similarly, the human suffering and physical destruction resulting from the Israel-Hamas war in Gaza exceeded most observers’ already-grim expectations, and spread to other countries, such as Lebanon. The apparent impunity of the strong, together with the absence of effective

means of preventing dire humanitarian crises, has deepened the sense for many that the global order is fundamentally imbalanced, and lacks any enforceable guardrails.

As for domestic politics, upheaval has been the order of the day in many countries. Governments have collapsed in both France and Germany –Europe’s largest economies – leaving the European Union without political leadership. And following Donald Trump’s victory in last month’s presidential election, the United States is preparing for a political transition that is likely to bring a

significant increase in the political influence of a new “counter-elite.”

Meanwhile, an “axis of convenience” – comprising China, Iran, North Korea, and Russia – is seeking to challenge the Western-dominated international order. Other recent developments – from the now-impeached South Korean president’s abrupt declaration of martial law (which was quickly reversed) to the collapse of Bashar al-Assad’s regime in Syria – have reinforced the impression that we are living at a time of exceptional geopolitical and political volatility.

The last year also brought some worrisome macroeconomic developments. Europe’s malaise has deepened, as countries grapple with low growth and large budget deficits. And China has failed to respond credibly to the clear and present danger of “Japanification,” with unfavorable demographics, a debt overhang, and a prolonged property-market downturn undermining growth, economic efficiency, and consumer confidence.

And yet, stock markets have remained relatively stable and delivered high returns, including almost 60 record-high closes for the S&P index.

The US economy’s exceptional performance is a major reason why. Far from weakening, as most economists expected, the US pulled even further ahead. Given the amount of foreign capital the US is attracting, and the scale of its investment in the future drivers of productivity, competitiveness, and growth, it is likely to continue outperforming other major economies in 2025.

One consequence of this success is that the US Federal Reserve did not deliver the soothing 1.75-2-percentage-point interest-rate cuts that markets were pricing in a year ago. This trend, too, is set to continue: at December’s policy meeting, the Fed signaled fewer cuts in 2025, and a higher terminal (long-run) rate.

But political and geopolitical upheaval – and the limited prospects for significant improvements – does pose a risk to the endurance of US economic exceptionalism. Even if the US continues outperforming its peers, as expected, the range of possible outcomes, in terms of both growth and inflation, has widened. In fact, global economic and policy outcomes as a whole are now subject to a larger possibility set, both because the downside risks have grown and because upside innovations – such as in artificial intelligence, life sciences, food security, health care, and defense – could transform sectors and accelerate productivity gains.

Absent a major policy reset, my baseline scenario for the US includes a somewhat lower immediate growth rate, even as the economy outperforms its peers, and sticky inflation. This will present the Fed with a choice: accept above-target inflation or attempt to bring it down and risk tipping the economy into recession.

Globally, economic fragmentation will continue, pushing some countries to diversify their reserves further away from the US dollar and explore alternatives to Western payment systems. Yields on US ten-year government bonds – a global benchmark – will edge higher, trading mostly in the 4.75-5% range. As for financial markets, they might find it more challenging to maintain their status as the “good house” in a challenging geo-economic neighborhood.

This is how things appear now. But, beyond recognising the wider dispersion of possible economic outcomes in 2025, it will be crucial regularly to test whichever baseline one embraces against actual developments.. i

ABOUT THE AUTHOR

Mohamed A El-Erian, President of Queens’ College at the University of Cambridge, is a professor at the Wharton School of the University of Pennsylvania and the author of The Only Game in Town: Central Banks, Instability, and Avoiding theNextCollapse (Random House, 2016) and a co-author (with Gordon Brown, Michael Spence, and Reid Lidow) of Permacrisis: A Plan to Fix a Fractured World (Simon & Schuster, 2023).

JENSEN HUANG:

VISIONARY LEADER DRIVING NVIDIA AND THE AI REVOLUTION

NVIDIA CEO Jensen Huang is a trailblazer in the technology sector, spearheading advancements in artificial intelligence (AI) and reshaping the landscape of computing. From his humble beginnings in Taiwan to leading one of the most innovative companies in the world, Huang's journey is a story of resilience, innovation, and transformative leadership.

Born in Tainan City, Taiwan, in 1963, Jensen Huang immigrated to the United States at the age of nine. His early years were marked by significant challenges, including a stint at the Oneida Baptist Institute in Kentucky, an experience that tested his resilience. Overcoming bullying and adversity, Huang excelled academically, skipping two grades and graduating from Aloha High School in Oregon at just sixteen. His passion for learning extended beyond the classroom—he was a nationally ranked table-tennis player and an active participant in math, science, and computer clubs.

Huang's academic journey continued at Oregon State University, where he earned a degree in electrical engineering and met his future wife, Lori Mills. He further honed his expertise with a master's degree in electrical engineering from Stanford University, setting the foundation for his remarkable career in technology. These academic experiences not only cultivated his technical expertise but also instilled in him a profound understanding of the transformative potential of computing, which would later define his career.

"Today, NVIDIA’s GPUs are indispensable in AI development, powering applications such

as autonomous vehicles, medical imaging, and generative AI models."

TRANSFORMING NVIDIA AND PIONEERING AI

Huang co-founded NVIDIA in 1993, envisioning a future where graphics processing units (GPUs) would revolutionise computing. Under his leadership, NVIDIA evolved from a graphics card manufacturer into a global leader in AI and accelerated computing.

A defining moment came in 2006 with the introduction of CUDA (Compute Unified Device Architecture). This innovative platform expanded the capabilities of GPUs beyond graphics, enabling developers to harness their power for general-purpose computing. CUDA became a cornerstone of AI development, facilitating

advancements across diverse industries, including healthcare, automotive, and scientific research.

NVIDIA’s transformation under Huang’s leadership wasn’t just about technological advancement; it was also about redefining the role of GPUs in computing. By positioning GPUs as essential tools for AI workloads, Huang revolutionised the way industries approached computational problems, setting a new standard for innovation and performance.

Today, NVIDIA’s GPUs are indispensable in AI development, powering applications such as autonomous vehicles, medical imaging, and generative AI models. Huang’s strategic foresight and emphasis on innovation have positioned NVIDIA at the forefront of the AI revolution, making it a household name in both technology and business circles.

A VISION FOR AI EVERYWHERE

Huang envisions a world where AI is deeply integrated into everyday life, amplifying human potential and transforming industries. Central to his vision is the concept of personalised AI assistants, which he believes will become

essential collaborators in both personal and professional domains.

“AI will augment, not replace, human jobs,” Huang asserts. He emphasises that AI will free individuals from mundane tasks, allowing them to focus on creative and strategic pursuits. This perspective challenges fears of job displacement, presenting AI as a tool for empowerment and economic growth.

Beyond personal assistants, Huang foresees AI driving innovation in sectors such as energy, healthcare, and retail. In energy, AI could optimise production and distribution by analysing vast datasets, while in healthcare, it promises breakthroughs in diagnostics and personalised treatment plans. Retailers can leverage AI to enhance customer experiences, streamline inventory management, and identify market trends.

Huang’s belief in AI’s potential extends to its role in education and training. He has often highlighted how AI can personalise learning experiences, tailoring educational content to individual needs and enabling lifelong learning. By transforming how knowledge is delivered and consumed, AI has the power to democratise education and bridge skill gaps, preparing the workforce for the demands of a rapidly changing world.

RESHAPING THE FUTURE OF COMPUTING

Huang has also highlighted the limitations of Moore’s Law, which has traditionally governed the exponential growth of computing power. He argues that GPUs, with their superior parallel processing capabilities, are better suited to the demands of AI workloads. This paradigm shift has profound implications for data centres, as GPUs increasingly replace traditional CPUs, heralding a new era of accelerated computing.

NVIDIA’s advancements extend beyond AI to include groundbreaking developments in quantum computing, robotics, and autonomous systems. Projects like DIGITS, a personal AI supercomputer, and platforms such as NVIDIA Cosmos are designed to accelerate innovation

across industries, reinforcing the company’s position as a global technology leader.

Additionally, Huang’s focus on sustainable computing has led NVIDIA to explore energyefficient architectures and renewable energypowered data centres. These efforts align with his vision of creating technologies that not only advance human capabilities but also contribute to environmental sustainability.

LEADERSHIP THROUGH INNOVATION

Huang’s leadership extends beyond technological achievements. He is renowned for fostering a culture of collaboration, transparency, and innovation within NVIDIA. His keynote speeches, such as the one at CES 2025, are eagerly anticipated industry events where he unveils NVIDIA’s latest breakthroughs and shares his vision for the future of technology.

Under Huang’s stewardship, NVIDIA has introduced platforms like NVIDIA AI Foundation Models, which enable enterprises to develop custom generative AI applications, and the NVIDIA DRIVE Hyperion platform for autonomous vehicle development. These initiatives demonstrate Huang’s commitment to pushing the boundaries of what technology can achieve.

Furthermore, Huang has prioritised diversity and inclusion within NVIDIA, recognising that diverse teams drive better outcomes. By fostering an inclusive environment, he ensures that NVIDIA remains a hub for top talent from around the world, united by a shared mission to shape the future of computing.

ETHICS AND RESPONSIBILITY IN AI

Huang is acutely aware of the ethical implications of AI. He advocates for responsible AI development, emphasising the need for transparency, accountability, and collaboration. NVIDIA’s initiatives, such as its digitalised ESG (Environmental, Social, and Governance) reporting platform, reflect this commitment. These efforts ensure that AI serves as a force for good, addressing global challenges while advancing industries and empowering individuals.

Huang’s emphasis on ethical AI is also evident in NVIDIA’s partnerships with academic institutions and research organisations. By collaborating with these entities, NVIDIA contributes to the development of ethical guidelines and best practices, ensuring that AI technologies are deployed in ways that benefit society as a whole.

A GLOBAL IMPACT

Huang’s leadership has propelled NVIDIA to the forefront of technological innovation, making the company a driving force in the global AI revolution. His vision extends beyond NVIDIA’s immediate success, encompassing a broader mission to shape the future of technology in a way that benefits humanity.

“Good entrepreneurship is about more than innovation; it’s about responsibility,” Huang has stated. This ethos underpins NVIDIA’s approach to developing technologies that not only advance industries but also address pressing societal challenges.

NVIDIA’s contributions to the global AI ecosystem are vast. From healthcare breakthroughs that save lives to energy solutions that combat climate change, the company’s innovations under Huang’s guidance are reshaping the world in meaningful ways.

A LEGACY IN THE MAKING

Jensen Huang’s journey from a young immigrant to a global tech leader is a testament to the power of resilience, vision, and innovation. As NVIDIA continues to break new ground in AI and accelerated computing, Huang’s leadership and bold vision will remain central to its success.

By navigating the complexities of the AI era with foresight and responsibility, Jensen Huang exemplifies the qualities of a visionary leader. His contributions to technology are not merely reshaping industries; they are laying the foundation for a future where AI serves as a transformative force for good. With NVIDIA at the helm of innovation, the possibilities for a brighter, more connected world are limitless. i

CEO: Jensen Huang

Will AI Programmes Become a Commodity?

Artificial intelligence (AI) has swiftly emerged as one of the most transformative technologies of the 21st century, revolutionising industries and reshaping societal norms. From automating financial services and diagnosing diseases to optimising supply chains and enhancing customer experiences, AI has become an integral part of modern life. Yet as its adoption accelerates, a provocative question arises: could AI programmes themselves become commoditised, losing their unique value as they become more standardised and universally accessible? This article explores the potential for AI commoditisation, the implications for infrastructure and data, and how companies like NVIDIA are positioned to thrive in this evolving landscape.

UNDERSTANDING THE COMMODITISATION OF AI

The concept of commoditisation refers to the process by which products or services become standardised, widely available, and indistinguishable across providers. In the context of AI, this means that once-innovative AI programmes could become as commonplace and interchangeable as electricity or internet services. Several forces are driving this trend:

• Technological Advancements: The rapid evolution of AI algorithms and frameworks has dramatically reduced the complexity of developing and deploying AI systems. Tasks that once required specialist knowledge are now achievable with pre-trained models and userfriendly platforms.

• Cloud Computing: Cloud providers like AWS, Microsoft Azure, and Google Cloud have made AI resources available on demand, enabling businesses to integrate AI capabilities without the need for significant investment in infrastructure.

• Open-Source Ecosystems: Free access to cuttingedge frameworks such as TensorFlow, PyTorch, and Hugging Face models has democratised AI, allowing developers and businesses to build sophisticated applications with minimal cost.

This accessibility has sparked a wave of innovation, empowering organisations of all sizes to leverage AI for competitive advantage. For instance, the commodity trading industry has adopted AI to automate processes like data collection and deal execution, enhancing productivity and accuracy. Similar trends are evident in healthcare, retail, and logistics, where AI has streamlined operations and improved outcomes.

However, commoditisation also raises significant challenges. As AI programmes become more widespread, questions of quality control, ethical usage, and reliability become paramount. The risk of bias in AI models, misuse of data, and inadequate oversight could undermine trust and effectiveness. To address these issues, businesses must adopt rigorous governance frameworks and prioritise transparency in their AI initiatives.

"As

AI programmes become more widespread, questions of quality control, ethical usage, and reliability become paramount."

A PARALLEL WITH INFORMATION TECHNOLOGY

The trajectory of AI commoditisation closely mirrors the historical evolution of information technology (IT). In its early days, IT provided a distinct competitive edge, enabling companies to automate tasks and optimise operations. Over time, however, IT became ubiquitous, shifting from a differentiator to a utility.

Nicholas Carr’s influential essay “IT Doesn’t Matter” argued that as IT became standardised, its strategic importance diminished. A similar argument can be made for AI: as it becomes more accessible and standardised, the focus will shift from owning unique AI systems to effectively integrating and leveraging widely available capabilities. Organisations that excel in applying AI to solve complex problems, personalise customer experiences, or drive operational efficiencies will stand out in a commoditised landscape.

THE RISING IMPORTANCE OF AI INFRASTRUCTURE

As AI programmes become commoditised, the infrastructure that supports their development, deployment, and management becomes increasingly critical. AI infrastructure refers to the hardware, software, and networks that enable organisations to handle the computational demands of AI workloads. This includes everything from GPUs and specialised chips to data storage systems and cloud services.

The value of AI infrastructure lies in its ability to:

1. Process Massive Datasets: Training AI models requires vast amounts of data. High-performance infrastructure ensures efficient data processing

and storage, enabling faster and more accurate model training.

2. Enhance Scalability: AI infrastructure allows organisations to scale their operations seamlessly, adapting to growing computational demands as their applications evolve.

3. Improve Efficiency: Advanced infrastructure reduces the time and resources required to deploy AI models, accelerating innovation and reducing costs.

4. Support Complex Workloads: With specialised hardware like NVIDIA GPUs, businesses can tackle computationally intensive tasks such as real-time data analysis and deep learning.

Beyond enabling AI, this infrastructure is transforming traditional industries. In smart cities, for example, AI-driven traffic systems optimise transportation networks, while predictive maintenance powered by AI extends the lifespan of infrastructure like bridges and utilities. These applications demonstrate the broader societal value of robust AI infrastructure.

FUSION POWER AS A METAPHOR FOR AI COMMODITISATION

To understand the implications of AI commoditisation, it is useful to draw an analogy with energy, particularly the potential future of fusion power. Fusion, the process that fuels the stars, has long been seen as the holy grail of energy production due to its potential to provide clean, abundant, and sustainable power.

If fusion energy becomes viable, energy itself may be commoditised, much like electricity is today. However, the value in such a scenario would shift to the infrastructure required to harness, store, and distribute this energy. Similarly, as AI becomes ubiquitous, the focus will shift to the systems, expertise, and infrastructure that enable its effective utilisation.

Fusion energy and AI also share a mutually beneficial relationship. AI is accelerating research in fusion by analysing experimental data, predicting plasma behaviours, and optimising reactor designs. Conversely, the success of

fusion energy could address the growing energy demands of AI systems, providing a sustainable power source for computational workloads.

NVIDIA: A TRAILBLAZER IN AI INFRASTRUCTURE

Amid this evolution, companies like NVIDIA play a pivotal role in shaping the future of AI. NVIDIA has positioned itself as a leader in AI infrastructure, offering cutting-edge GPUs and software ecosystems that power AI development across industries. Its products enable faster model training, more efficient inference, and greater scalability, making them indispensable for AI workloads.

NVIDIA’s contributions extend beyond hardware. The company’s software platforms, such as CUDA and TensorRT, empower developers to optimise their AI applications for NVIDIA GPUs, enhancing performance and reducing complexity. Meanwhile, initiatives like Omniverse Cloud and DIGITS demonstrate NVIDIA’s commitment to expanding access to AI technology, enabling researchers and developers to push the boundaries of innovation.

THE STRATEGIC VALUE OF DATA

In the context of commoditised AI, data emerges as the critical differentiator. High-quality data

is the lifeblood of AI systems, determining their accuracy, reliability, and impact. Organisations that can effectively manage and leverage their data assets will gain a significant competitive edge.

Key considerations for data in the AI era include:

• Quality and Bias: Clean, unbiased data is essential for training models that yield reliable and equitable results.

• Volume and Variety: Large, diverse datasets enable AI to uncover complex patterns and make nuanced predictions.

• Access and Sharing: Open-source datasets and collaborative initiatives democratise data access, fostering innovation and inclusivity.

Data governance frameworks and robust infrastructure are crucial for unlocking the full potential of AI. By investing in data preparation, integration, and analysis, organisations can extract actionable insights, automate processes, and drive innovation.

NAVIGATING THE FUTURE OF AI

The commoditisation of AI programmes represents both a challenge and an opportunity. On one hand, it lowers barriers to entry, enabling more organisations to harness AI’s potential.

On the other hand, it shifts the focus from developing proprietary AI systems to excelling in their application and integration.

For companies like NVIDIA, the rise of commoditised AI underscores the importance of continuous innovation in infrastructure, hardware, and software. By enabling faster, more efficient, and scalable AI solutions, NVIDIA is well-positioned to thrive in this evolving landscape.

The analogy with fusion power highlights the broader implications of this shift. Just as the infrastructure for harnessing fusion energy will define its impact, the systems that enable AI will determine its value. The interplay between AI and fusion also underscores the importance of interdisciplinary collaboration in addressing global challenges.

As AI continues to evolve, it will reshape industries, societies, and economies. The key to success in this new era lies in recognising the strategic importance of infrastructure, leveraging data effectively, and prioritising ethical considerations. By embracing these principles, organisations can harness AI as a force for innovation and progress. i

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UK AI Action Plan: An Evaluation

The UK government, recognising the transformative potential of artificial intelligence (AI), has launched an ambitious initiative aimed at fostering AI development and adoption across the nation. Known as the UK AI Action Plan, this comprehensive strategy seeks to position the country as a global leader in AI innovation. This report evaluates the plan, examining its strengths, weaknesses, potential implications, and challenges, while also comparing it to other national AI strategies.

A GLOBAL PERSPECTIVE: HOW THE UK STANDS OUT

To fully appreciate the UK AI Action Plan, it is important to view it within the context of global AI strategies. The European Union, for instance, has pursued a more regulatory approach with its AI Act, which aims to create a comprehensive legal framework. While this ensures ethical development and public trust, it risks stifling innovation compared to the UK’s pro-innovation stance, which prioritises flexibility and rapid progress. The US, meanwhile, has poured significant resources into advancing AI research and development through federal agencies, capitalising on its robust technology ecosystem to drive innovation.

China’s state-led approach has accelerated the integration of AI into its economy and public services, setting benchmarks for scale and speed. Other nations, including Canada and Singapore, have adopted unique models tailored to their strengths, focusing on areas such as healthcare AI and smart cities. The UK’s strategy, with its emphasis on collaboration and entrepreneurship, offers a distinct advantage, though it must remain agile to compete in this fast-evolving landscape.

FOUNDATIONS OF THE UK AI ACTION PLAN

Launched in 2023, the UK AI Action Plan is built around three core pillars: establishing foundational support for AI, leveraging AI to improve public services, and fostering a robust domestic AI ecosystem. These pillars underscore the government’s vision of creating a world-class AI sector that not only enhances economic productivity but also addresses critical societal challenges.

One of the plan’s standout features is its focus on infrastructure. The government has pledged to expand computing capacity by 20-fold by 2030, a goal that n on building energy-efficient data centres and streamlining planning processes. The introduction of AI Growth Zones, such as the one in Culham, Oxfordshire, aims to accelerate these developments by reducing bureaucratic delays.

"The private sector has also been a key partner, with commitments of £14 billion in investment and over 13,000 jobs created."

Equally critical is the investment in skills. The Skills England initiative, designed to equip the workforce with expertise in AI and data science, represents a long-term commitment to building a talent pipeline. This includes partnerships with universities, vocational training programmes, and initiatives to reskill workers displaced by automation.

The private sector has also been a key partner, with commitments of £14 billion in investment and over 13,000 jobs created. This collaboration reflects the plan’s emphasis on public-private partnerships as a driving force for innovation and economic growth.

STRENGTHS OF THE PLAN

The UK AI Action Plan’s strengths lie in its forward-thinking, innovation-driven approach. Its emphasis on reducing barriers to entry for startups and encouraging collaboration across sectors positions the UK as a fertile ground for AI experimentation and development. The government’s proactive stance on using AI to enhance public services is another commendable aspect, with applications ranging from predictive analytics in healthcare to AI-driven efficiency in public transportation.

By addressing foundational issues such as digital infrastructure and workforce development, the plan lays a solid groundwork for sustainable growth. Initiatives to attract global talent have bolstered the UK’s reputation as a hub for AI research and entrepreneurship, further diversifying its ecosystem. This global appeal, combined with strong domestic support, enhances the UK’s ability to remain competitive on the international stage.

CHALLENGES AND WEAKNESSES

Despite its ambitions, the UK AI Action Plan faces significant challenges. A notable weakness is the lack of a detailed implementation roadmap. Without clear metrics and timelines, it is difficult to gauge the plan’s feasibility or hold stakeholders accountable. While the plan acknowledges the importance of ethical AI, it offers limited guidance on addressing complex issues such as bias, transparency, and accountability.

Energy costs present another critical hurdle. Expanding computing capacity to meet AI demands will require substantial investment, yet high energy costs in the UK place it at a disadvantage compared to countries with cheaper electricity. This challenge necessitates a dual focus on developing renewable energy sources and improving the energy efficiency of data centres.

The potential for job displacement also warrants attention. Automation threatens to disrupt industries ranging from manufacturing to administrative services, potentially exacerbating income inequality. The government must prioritise reskilling initiatives to ensure workers can adapt to the changing job landscape.

Additionally, while the plan’s focus on economic growth is commendable, it risks overlooking sectors such as the creative industries. These areas hold significant potential for AI-driven innovation but require tailored support to realise their full benefits.

BROADER IMPLICATIONS OF THE UK AI ACTION PLAN

The potential impact of the UK AI Action Plan extends beyond immediate economic gains. By integrating AI into public services, the plan aims to improve healthcare delivery, optimise education systems, and streamline transportation networks. AI-powered tools can enhance diagnostic accuracy in medicine, reduce administrative burdens in schools, and even analyse real-time data to improve traffic flow.

Economically, the plan positions AI as a driver of productivity and investment. The International Monetary Fund estimates that widespread AI adoption could boost UK productivity by up to 1.5 percentage points annually, creating a ripple effect across sectors. This, combined with increased foreign investment and domestic entrepreneurship, could significantly enhance the country’s economic resilience.

The plan’s emphasis on public trust and ethical development also has far-reaching implications. Building a framework that ensures transparency, accountability, and fairness in AI systems will not only protect citizens but also enhance the UK’s reputation as a leader in responsible innovation.

NAVIGATING RISKS AND BARRIERS

The successful implementation of the UK AI Action Plan depends on addressing several risks. Ethical considerations must be front and centre, with robust frameworks to mitigate bias and ensure fairness. Public trust will be a deciding factor in the adoption of AI technologies, making transparency and accountability essential.

The skills gap remains a pressing concern. While initiatives like Skills England are steps in

the right direction, they must be complemented by targeted reskilling programmes and international talent recruitment efforts. Streamlining visa processes and reducing associated costs could further enhance the UK’s appeal to global AI professionals.

Data security and privacy are equally critical. As AI systems rely on vast amounts of data, safeguarding this information against breaches and misuse is paramount. The government must also address regulatory gaps to ensure that laws keep pace with technological advancements, fostering both innovation and public confidence.

RECOMMENDATIONS FOR THE FUTURE

To realise the full potential of the UK AI Action Plan, the government should take several proactive measures. Developing a detailed implementation roadmap will provide clarity and accountability, ensuring that goals are met effectively. Expanding public engagement initiatives can demystify AI, addressing concerns and fostering widespread support.

Investing in education and training should remain a top priority, with a focus on creating accessible pathways for reskilling and upskilling. Strengthening international

collaborations will also be crucial, enabling the UK to share best practices and maintain its competitive edge.

Lastly, the government must ensure that the benefits of AI are distributed equitably. This includes supporting sectors like the creative industries and promoting regional development to avoid a concentration of benefits in a few technology-driven areas.

A VISION FOR THE FUTURE

The UK AI Action Plan represents an ambitious and visionary approach to harnessing the transformative power of artificial intelligence. By fostering innovation, investing in infrastructure, and addressing societal challenges, the plan has the potential to position the UK as a global leader in AI. However, its success will depend on addressing key challenges, including ethical considerations, the skills gap, and public trust.

With a balanced focus on innovation and responsibility, the UK can shape the future of AI in a way that benefits all members of society. By embracing collaboration, inclusivity, and foresight, the UK AI Action Plan could pave the way for a more equitable, prosperous, and technologically advanced future. i

Winter 2024-2025 Special

The Golden Age of Advertising: When Mad Men Ruled the World >

Before algorithms dictated our ad experiences and data determined every marketing decision, there was a time when advertising was an art—an audacious, creative force led by a select few who shaped not just consumer behaviour but the cultural landscape itself. These were the original Mad Men and Women, the visionaries who transformed brands into legends and slogans into cultural touchstones.

The mid-20th-century advertising world was a realm of smoky boardrooms, towering egos, and relentless ambition. It was a time when a single, brilliantly conceived campaign could catapult a product into mass consciousness. Creativity reigned supreme, and a handful of advertising pioneers controlled the kingdom of consumer desire. This was the Golden Age of Advertising, an era of unmatched innovation and cultural influence, where every ad had the potential to become part of everyday conversation.

Among those who defined this era were some of the greatest minds in advertising history. David Ogilvy, the refined Englishman who insisted on respecting the consumer’s intelligence, set the standard for persuasive advertising. Bill Bernbach, the sharp-witted New Yorker, revolutionised the industry by bringing humour and authenticity into the equation. Leo Burnett, the Midwestern storyteller, gave brands a human voice and emotional resonance. Mary Wells Lawrence, Madison Avenue’s glamourous maverick, infused advertising with theatricality and style. Dan Wieden, the rule-breaker, urged the world to "Just Do It," while Lee Clow, the enigmatic Californian, helped define Apple's brand identity and cement its status as the epitome of cool.

These advertising titans operated in a vastly different world from the one we know today. The industry was centralised, and advertising was a shared cultural experience. Television and print were king, and a well-crafted slogan or an unforgettable campaign could resonate

with millions in a single instant. There was a mystique to advertising, a sense of grandeur and influence that extended beyond commerce and into the fabric of daily life.

But these Mad Men and Women were more than just marketers; they were cultural architects, shaping not just what people bought, but how they saw themselves and the world around them. They understood that advertising was, at its core, a form of storytelling. A great ad didn’t just sell a product—it captured an emotion, an aspiration, or an idea. The best campaigns weren’t just memorable; they became part of the cultural lexicon, shaping the way generations of consumers thought and behaved.

Yet the world has changed. The rise of the internet, social media, and digital marketing has transformed advertising from an art into an algorithm. No longer do brands rely solely on a single, powerful idea to reach the masses. Instead, they employ targeted ads, programmatic buying, and influencer partnerships to reach fragmented audiences across multiple platforms. The industry that once ran on gut instinct, creativity, and bold campaigns is now dominated by analytics, split tests, and ROI calculations.

Gone are the three-martini lunches and the luxury of time spent refining a single concept. In their place are Zoom calls, rapid iterations, and relentless performance metrics. Campaigns are no longer crafted for the masses but micro-targeted to niche audiences. The balance of power has shifted from the creative

visionaries to the data scientists, where success is often measured in engagement rates rather than emotional impact.

Yet, despite these changes, the lessons of the Golden Age remain strikingly relevant. The ability to tell a compelling story, forge an emotional connection, and distil a brand’s essence into a single, resonant message is still the foundation of great advertising. The medium may have changed, but human nature has not. People still respond to stories, to emotion, to authenticity—perhaps now more than ever, in an era saturated with content.

In a world where consumers are bombarded with advertising at every turn, the brands that stand out are those that remember the essence of the Golden Age: the power of a brilliant idea, the impact of a well-told story, and the irreplaceable magic of creativity. The legacy of the Mad Men and Women reminds us that advertising, at its best, is not just about selling products but shaping culture.

As we navigate the evolving landscape of modern marketing, it is worth remembering the icons who came before us. Their era may be gone, but their influence endures. Creativity, originality, and the relentless pursuit of the big idea remain the heart of great advertising. And at its core, advertising is still about human connection—the ability to tell a story that resonates, that lingers, that moves people to action. That, more than any algorithm or trend, is what makes an ad truly unforgettable. i

BILL BERNBACH

The Man Who Humanised Advertising

He defied conventions, championed creativity, and reshaped the relationship between brands and consumers. This is the story of Bill Bernbach, the man who revolutionised advertising.

In the rigid, formulaic world of 1950s advertising, Bernbach was a trailblazer who refused to accept the status quo. He rejected the hard-sell tactics and predictable strategies that defined the industry, opting instead for honesty, wit, and a profound understanding of human nature. The "creative revolution" he ignited transformed not only advertising but also popular culture, leaving a lasting legacy that continues to inspire.

A Maverick with a Vision

Born in the Bronx in 1911, Bernbach’s journey to advertising greatness was shaped by a deep appreciation for the arts and a curious mind. He earned an English degree from New York University, but his intellectual pursuits were far-ranging, encompassing music, philosophy, and business administration. This diverse foundation informed his revolutionary approach to advertising—one that prioritised creativity and emotional resonance over manipulation and clichéd slogans.

Bernbach’s early career took him through the traditional world of advertising. He worked at Schenley Distillers and later as a ghostwriter for Grover Whalen, head of the 1939 New York World's Fair. Yet, these roles left him unsatisfied. He was convinced that advertising could transcend its utilitarian roots to become something more meaningful and impactful.

The Birth of a Revolution

In 1949, Bernbach co-founded Doyle Dane Bernbach (DDB) with Ned Doyle and Maxwell Dane, heralding a new era in advertising. The agency’s guiding philosophy was simple yet radical: respect the consumer’s intelligence, embrace authenticity, and place creativity at the heart of every campaign. Bernbach famously declared, “Rules are what the artist breaks; the memorable never emerged from a formula.”

This ethos sparked some of the most iconic campaigns in advertising history. DDB’s work for Volkswagen, epitomised by the legendary "Think Small" campaign, challenged the norms of automotive advertising with its self-deprecating humour and minimalist design. Featuring a diminutive image of the Beetle accompanied by bold, provocative headlines, the campaign redefined how products could be marketed. It didn’t just sell cars; it made the Beetle a cultural icon.

Equally groundbreaking was DDB’s work for Avis. The campaign’s tagline, “We Try

Harder,” transformed the car rental company’s second-place status into a badge of honour. By embracing their underdog position, Avis connected with consumers in a deeply human way, showcasing a commitment to service that resonated widely.

Pioneering a Collaborative Culture

Bernbach’s genius wasn’t limited to his creative vision; it extended to how he reimagined the process of advertising itself. He was a staunch advocate for collaboration, breaking away from the siloed approach of his contemporaries. By pairing copywriters and art directors—a revolutionary move at the time—he created a synergy that elevated the creative output of his agency. This collaborative model became the industry standard and remains foundational in advertising today.

He also fostered a culture of respect and intellectual curiosity at DDB. Bernbach believed in empowering his employees to take risks and challenge conventions. “If you stand for something,” he once said, “you will always find some people for you and some against you. If you stand for nothing, you will find nobody against you, and nobody for you.” This ethos not only encouraged bold, innovative work but also attracted some of the most talented minds in the industry.

Advertising as Cultural Commentary

What set Bernbach apart was his belief that advertising could do more than sell products— it could reflect and shape societal attitudes. His campaigns often spoke to deeper truths, blending humour, honesty, and emotional resonance to connect with audiences on a human level. His work for Levy’s Rye Bread, with its tagline “You don’t have to be Jewish to love Levy’s,” celebrated diversity and inclusivity long before such themes became mainstream.

Bernbach understood that great advertising transcends commerce. It becomes a part of the cultural lexicon, a shared experience that binds people together. He proved that advertising could be artful, entertaining, and socially relevant—a force for both economic and cultural change.

A Lasting Legacy

By the time Bernbach passed away in 1982, he had indelibly shaped the world of advertising. His principles of creativity, honesty, and respect for the consumer remain as relevant today as they were during the height of the "creative revolution." In a world increasingly driven by data and algorithms, his emphasis on storytelling and human connection offers a timeless reminder of what makes advertising truly effective.

Bernbach’s campaigns continue to be studied as masterpieces of the craft. His work demonstrated that advertising could inspire, entertain, and engage, elevating it from a commercial endeavour to an art form. The lessons he imparted—about authenticity, collaboration, and the power of a bold idea—still guide the industry’s best practitioners.

The Human Touch

Bill Bernbach’s influence extends far beyond the confines of Madison Avenue. He humanised advertising, reminding us that at its core, it is about people—their hopes, fears, desires, and dreams. He showed that creativity and authenticity are not just desirable qualities in advertising; they are essential.

As the industry continues to evolve, Bernbach’s legacy serves as both a beacon and a challenge. It reminds advertisers to prioritise human connection over gimmicks, to embrace creativity over convention, and to dare to stand for something meaningful. In a world saturated with noise, his principles offer a path to resonance and relevance.

Bill Bernbach was more than an advertising genius; he was a cultural pioneer whose work continues to inspire. His story is a testament to the enduring power of ideas and the timeless art of human connection.

> DAN WIEDEN

The Man Who Told Us to "Just Do It"

He revolutionised advertising with a rebellious spirit, an unwavering belief in creativity, and an innate understanding of the human drive to achieve. This is the story of Dan Wieden, the creative mastermind behind Nike's iconic slogan and the co-founder of one of the most influential advertising agencies in the world.

From Humble Beginnings to Creative Legend

Dan Wieden was born in Portland, Oregon, in 1945, into a city known for its independent spirit and creative energy. He studied journalism at the University of Oregon, where he honed his ability to tell compelling stories— an ability that would define his career. After graduation, he worked briefly at his father's public relations firm, but his passion for writing and his desire to challenge conventions drew him to the world of advertising.

In 1982, Wieden teamed up with David Kennedy to form Wieden+Kennedy, an agency that embodied their shared commitment to creativity and fearlessness. Based in Portland, far from the traditional advertising hubs of New York or Chicago, the agency embraced its outsider status. This distance from the industry's norms allowed them to break free from established conventions and craft a unique approach to advertising that celebrated bold ideas and authentic storytelling.

Nike and the Birth of a Global Phenomenon

Wieden+Kennedy's first major client was Nike, a fledgling athletic footwear company founded by Phil Knight. Nike, like Wieden+Kennedy, had a rebellious ethos and a desire to challenge the status quo. The partnership proved transformative for both.

Wieden’s groundbreaking contribution came in 1988, with the creation of the slogan "Just Do It". Inspired by the final words of convicted murderer Gary Gilmore—"Let’s do it"—Wieden reimagined the phrase, stripping it of its grim origins and turning it into a universal call to action. The slogan encapsulated determination, grit, and the drive to push boundaries, resonating with athletes and dreamers alike. Combined with emotive visuals and authentic narratives, "Just Do It" propelled Nike to the forefront of sports culture and beyond, establishing it as a symbol of empowerment and ambition.

Campaigns That Shaped Culture

While "Just Do It" is perhaps Wieden's most famous creation, it was only the beginning of Wieden+Kennedy's influence on popular culture. The agency's work for Nike included campaigns featuring legendary athletes like Michael Jordan, whose “Air Jordan”

commercials became cultural milestones, and Bo Jackson, whose “Bo Knows” campaign demonstrated the breadth of his athletic talent.

The agency’s work wasn’t limited to sports. Wieden+Kennedy crafted iconic campaigns for global brands such as Coca-Cola, Honda, and Old Spice. Their “The Man Your Man Could Smell Like” campaign for Old Spice, with its quirky humour and innovative execution, reinvigorated the brand and demonstrated Wieden+Kennedy’s ability to connect with audiences across generations.

What set Wieden+Kennedy apart was their refusal to follow industry norms. Their campaigns were provocative and often unconventional, but they were always rooted in authenticity and emotional resonance. Wieden understood that great advertising wasn’t just about selling products; it was about telling stories that connected with people on a deeper level.

A Visionary Leader

Wieden’s brilliance extended beyond his creative genius; he was also an exceptional leader who fostered a culture of innovation and inclusivity. At Wieden+Kennedy, he cultivated an environment where ideas thrived and where taking risks was encouraged. He believed in empowering his team, urging them to challenge conventions and push boundaries.

Wieden was a champion of diversity and inclusion long before these values became

industry imperatives. He recognised that creativity flourishes in environments that embrace diverse perspectives and experiences. Under his leadership, Wieden+Kennedy became a space where everyone—regardless of background—felt valued and inspired to contribute.

His belief in the transformative power of creativity extended beyond advertising. In 1996, Wieden founded Caldera, a non-profit organisation that provides arts education to at-risk youth. Through this initiative, he helped young people discover their potential and express themselves, demonstrating his commitment to making a positive impact on the world.

Lasting Legacy

Dan Wieden passed away in 2022, leaving behind a legacy that transcends the advertising world. His contributions redefined what advertising could be—a blend of art, emotion, and cultural commentary. He proved that brands could inspire and unite, that campaigns could spark movements, and that a simple, well-crafted idea could resonate across the globe.

The slogan "Just Do It" remains a cornerstone of Nike’s identity and a rallying cry for people everywhere. It embodies Wieden’s belief in the power of human potential and the importance of seizing opportunities. His campaigns for Nike and other brands didn’t just sell products; they inspired people to dream bigger, work harder, and believe in themselves.

Wieden’s story is a testament to the enduring power of creativity and authenticity. He showed that advertising, at its best, is about more than commerce—it’s about human connection, shared values, and the stories that bring us together.

The Spirit of Defiance

Dan Wieden was not just an advertising legend; he was a cultural pioneer who challenged norms and inspired change. His work continues to shape the industry, reminding us of the power of bold ideas and the importance of staying true to one’s vision.

Through his rebellious spirit, commitment to storytelling, and unwavering belief in the potential of people, Wieden redefined what it means to connect with an audience. His legacy is not just the campaigns he created but the spirit of defiance and creativity he championed—a spirit that urges us all to "Just Do It".

LEE CLOW

The Enigma of Cool

He’s the laid-back surfer who redefined advertising, the enigmatic visionary behind Apple’s "1984" and "Think Different" campaigns, and an enduring symbol of West Coast creativity. This is the story of Lee Clow, a man whose influence on modern culture transcends advertising and whose work remains a testament to the power of bold ideas.

The Creative Spark of a Maverick Born in Los Angeles in 1943, Lee Clow epitomised the countercultural energy of the West Coast. His journey into advertising began with a love for art and design, nurtured during his studies at Santa Monica City College. Clow’s early years were marked by an exploration of creativity that extended far beyond the classroom, informed by his passion for surfing and a free-spirited approach to life.

In the 1960s, Clow joined Chiat/Day, an agency that would become the crucible for his creative talents. Working alongside industry legends like Jay Chiat, Clow developed a distinctive voice and style, blending visual storytelling with cultural resonance. His early campaigns displayed a knack for innovation and a willingness to defy conventions, setting the stage for a career that would push the boundaries of advertising.

The Apple Partnership: Redefining Innovation

Lee Clow’s career reached a defining moment in the early 1980s when he partnered with Steve Jobs, the visionary co-founder of Apple. This collaboration would produce some of the most iconic advertising campaigns of all time, beginning with the legendary "1984" Super Bowl commercial.

Directed by Ridley Scott, "1984" presented the Macintosh computer as a revolutionary force against conformity, symbolised by the IBMdominated tech world. The ad’s dramatic imagery, inspired by George Orwell’s dystopian novel, and its rallying cry for individuality captured the imagination of a generation. More than just a commercial, it became a cultural moment, solidifying Apple’s position as a disruptor and setting a new standard for creativity in advertising.

Clow’s partnership with Apple flourished over the following decades, producing the celebrated “Think Different” campaign in 1997. This series of ads honoured visionaries like Mahatma Gandhi, Albert Einstein, and Amelia Earhart, aligning Apple with creativity, innovation, and individuality. The campaign played a pivotal role in revitalising the Apple brand during a challenging period, turning it into a beacon of inspiration and aspiration.

Beyond

Apple:

A Master of Storytelling

Although his work with Apple defined much of his career, Clow’s impact extended far beyond a single brand. His campaigns for Energizer, featuring the

unrelenting Energizer Bunny, became a cultural phenomenon. His work for Nissan brought emotional depth to automotive advertising, and his Taco Bell campaigns injected irreverence and humour into fast-food marketing.

Clow’s brilliance lay in his ability to tap into the cultural zeitgeist. He recognised the emotional connections that brands could forge with consumers and used striking visuals, evocative music, and simple yet profound ideas to tell compelling stories. His ads weren’t just about selling products; they were about creating moments that resonated with people’s lives and values.

A Leader Who Inspired Creativity

Clow’s success was rooted not only in his creative genius but also in his leadership. At Chiat/Day and later TBWA\Chiat\Day, Clow fostered an environment where creativity could thrive. He championed collaboration, pairing art directors with copywriters to spark synergy and innovation. He believed in empowering his team to take risks, challenge conventions, and embrace the unexpected.

Clow’s leadership was deeply personal. Known for his casual demeanour and unpretentious style, he created a culture that reflected his values. His love of surfing and disdain for corporate rigidity became metaphors for his approach to creativity— fluid, fearless, and always authentic.

Beyond his agency walls, Clow’s influence on the industry was profound. He inspired generations of creatives to see advertising not just as a commercial tool but as a platform for cultural expression and artistic achievement. His ethos— that advertising could be meaningful, memorable, and transformative—reshaped how the industry viewed its role in society.

Legacy of a Cultural Icon

Lee Clow retired in 2019, leaving behind a legacy that continues to shape the advertising world. His work, characterised by its originality and emotional resonance, remains a benchmark for creativity. From the revolutionary energy of "1984" to the aspirational spirit of “Think Different,” his campaigns have become part of the cultural fabric.

Clow’s impact goes beyond the ads themselves. He showed that great advertising is not just about selling products but about connecting with people on a deeper level. His work celebrated individuality, championed creativity, and reminded us of the power of ideas to inspire and unite.

As advertising evolves in the digital age, Clow’s principles remain as relevant as ever. In a world dominated by algorithms and data-driven strategies, his emphasis on storytelling, intuition, and humanity serves as a guiding light. He demonstrated that the best advertising speaks to universal truths, evokes genuine emotion, and captures the spirit of its time.

The Surfer Who Changed the World

Lee Clow’s story is one of a maverick who never compromised his vision, a creative mind who fused artistry with commerce, and a cultural icon who redefined the boundaries of his craft. He showed that advertising, at its best, could be a force for cultural change and a celebration of the human spirit.

Through his work, Clow encouraged us to think differently, embrace creativity, and find beauty in simplicity. He remains the enigma of cool, the surfer who rode the wave of advertising’s golden era and left an indelible mark on the industry and the culture it serves. His legacy will continue to inspire for generations, reminding us of the transformative power of creativity.

LEO BURNETT

The Man Who Gave Brands a Heartbeat

He believed in the power of simple truths, the inherent drama of everyday products, and the ability of advertising to connect on a deeply human level. This is the story of Leo Burnett, the creative visionary who brought us enduring icons like Tony the Tiger, the Marlboro Man, and the Jolly Green Giant.

Rooted in Midwestern Values

Born in 1891 in St. Johns, Michigan, Leo Burnett grew up in a small-town environment that shaped his belief in honesty, warmth, and the strength of the common man. After earning a journalism degree from the University of Michigan, Burnett began his career as a reporter. However, his path took a turn toward advertising when he joined Cadillac Motor Car Company, where he honed his ability to craft compelling narratives.

By 1935, in the depths of the Great Depression, Burnett had gathered enough courage and conviction to start his own agency, Leo Burnett Company, Inc., in Chicago. It was a bold move at a time when businesses were struggling to survive, but Burnett's vision set his agency apart.

Inherent Drama: A Philosophy of Storytelling Burnett introduced the concept of "Inherent Drama," a philosophy that would become his creative hallmark. He believed every product had an emotional core—a story waiting to be told. His approach was rooted in uncovering this essence and expressing it in a way that resonated universally.

This philosophy gave rise to some of the most iconic advertising campaigns of the 20th century. Burnett’s work didn’t rely on flashy gimmicks or hollow slogans; instead, it focused on connecting with consumers' emotions and values.

Icons That Endure

The mascots and campaigns Burnett developed remain benchmarks in advertising history.

• Tony the Tiger: Created for Kellogg's Frosted Flakes, Tony’s exuberant personality and unforgettable catchphrase, "They're grrreat!", transformed a simple breakfast cereal into a beloved household staple.

• The Marlboro Man: Burnett reimagined Marlboro cigarettes, transitioning them from a niche women’s product to a symbol of rugged masculinity. The Marlboro Man, embodying the archetypal cowboy, became a cultural icon and one of the most successful rebrands in advertising history.

• The Jolly Green Giant: Burnett turned canned vegetables into something more approachable with the cheerful, larger-than-life Jolly Green Giant. He added warmth and personality to what had previously been a faceless product category.

• Allstate’s Good Hands: The “Good Hands”

campaign, with its comforting imagery, effectively conveyed a sense of safety and trust in the insurance giant, resonating with consumers during times of uncertainty.

• United Airlines’ “Fly the Friendly Skies”: This slogan captured the romance and optimism of air travel, cementing United Airlines as a customerfocused brand during the golden age of aviation.

A Creative Culture of Fresh Ideas

Leo Burnett was more than a creative genius; he was an exceptional leader who nurtured a culture of innovation and collaboration. He famously placed a bowl of red apples in his agency’s reception area, a symbolic gesture of freshness, vitality, and hospitality. It also served as a subtle message to anyone who doubted his agency’s resilience during challenging times.

Burnett valued his employees as much as his clients, fostering an environment where creativity thrived. He empowered his team to take risks, break conventions, and explore new ideas. His Midwestern sensibility extended to his leadership style, grounded in humility, respect, and a sense of shared purpose.

Elevating

Advertising to an Art Form

Burnett’s contributions went far beyond creating effective campaigns; he helped to elevate the status of advertising as a profession. He proved that advertising could be more than a commercial transaction—it could be a form of art, a platform for storytelling, and a reflection of society’s values.

Ethics and responsibility were central to Burnett’s philosophy. He believed advertising had a duty not just to sell products but also to serve the

public good. His campaigns often celebrated universal themes like family, trust, and aspiration, resonating with audiences across generations and cultures.

A Legacy of Enduring Influence

Leo Burnett passed away in 1971, but his legacy is woven into the fabric of modern advertising. His agency, now Leo Burnett Worldwide, continues to uphold his principles of creative excellence and human connection. The timeless icons and campaigns he created remain part of our cultural lexicon, demonstrating the lasting impact of his vision.

Burnett’s philosophy of “Inherent Drama” is still a guiding principle for advertisers seeking to connect with audiences on a deeper level. His belief in the power of simple, enduring symbols and his commitment to storytelling continue to inspire advertising professionals worldwide.

The Heartbeat of Brands

Leo Burnett’s story is more than a tale of success; it is a testament to the enduring power of creativity and the importance of human connection. He showed the world that advertising could transcend commerce to become a celebration of shared values, a source of inspiration, and a reflection of the human spirit.

By giving brands a heartbeat, Leo Burnett not only transformed the advertising industry but also left an indelible mark on culture itself. His work reminds us that at its best, advertising is not just about selling—it’s about storytelling, building trust, and creating emotional resonance that stands the test of time.

DAVID OGILVY, THE ORIGINAL MAD MAN

The Man Who Sold Selling

He revolutionised advertising with his intelligent, witty campaigns and his insistence on respecting the consumer. But who was the man behind the legend?

David Ogilvy, often called the "Father of Advertising," redefined the industry with a sharp eye for creativity, a respect for the audience, and a talent for building iconic brands. Named "the most sought-after wizard in today’s advertising industry" by Time magazine in 1962, Ogilvy built an empire and, in the process, laid the foundation for modern advertising practices.

An Unconventional Journey

Born in West Horsley, England, in 1911, Ogilvy’s path to advertising was far from conventional. His early years were marked by an insatiable curiosity and a willingness to embrace diverse experiences. He worked as a chef at the Hotel Majestic in Paris, where he mastered the art of presentation and catering to refined tastes. Later, he became a door-to-door salesman for Aga cooking stoves, where he learned the value of persistence and the nuances of human persuasion.

Ogilvy also dabbled in farming in Pennsylvania, social work in Edinburgh, and even intelligence work during World War II. Each of these roles, seemingly unrelated to advertising, provided him with a deep understanding of human behaviour, psychology, and motivation—skills that would later distinguish his work from that of his peers.

A Revolution in Advertising

Unlike many of his Madison Avenue contemporaries, Ogilvy approached advertising with a deep respect for the consumer. He famously declared, “The consumer isn’t a moron; she is your wife.” This philosophy, radical at the time, challenged the industry’s prevailing assumptions and placed empathy and insight at the heart of advertising.

Ogilvy’s campaigns reflected this approach, elevating products by telling compelling stories. The "Man in the Hathaway Shirt," with his enigmatic eye patch, turned a niche shirt company into a symbol of sophistication and intrigue. Similarly, the Rolls-Royce campaign, with its iconic headline “At 60 miles an hour, the loudest noise in this new Rolls-Royce comes from the electric clock,” encapsulated understated luxury and engineering excellence. These campaigns did more than sell products— they built worlds, evoked emotions, and captured imaginations.

For Dove, Ogilvy positioned their soap as “1/4 cleansing cream,” pioneering a focus on product benefits that resonated with consumers seeking gentle care. For Schweppes, he introduced

"Schweppervescence," a term that became synonymous with the brand’s effervescent charm. Each campaign was meticulously researched, creatively executed, and strategically positioned, demonstrating his mastery of both art and science.

Building a Legacy

Beyond his campaigns, Ogilvy’s influence permeated the entire industry. He codified his principles in his bestselling books, "Confessions of an Advertising Man" and "Ogilvy on Advertising." These works became essential reading for aspiring advertisers, outlining his philosophies on research, creativity, and communication. He stressed the importance of strong headlines, concise language, and evocative imagery, while emphasising the power of big ideas and rigorous testing.

Ogilvy also transformed agency culture. When he founded Ogilvy & Mather in 1948, he envisioned an organisation built on respect, integrity, and excellence. He believed in hiring exceptional talent and giving his team the freedom to innovate. Long before diversity became a corporate imperative, Ogilvy advocated for inclusive hiring practices, recognising that diverse perspectives were essential for creative success.

Under his leadership, Ogilvy & Mather became a global powerhouse, renowned not only for its campaigns but also as a training ground for

some of the advertising world’s brightest minds. The agency’s enduring reputation as a leader in creativity and strategy is a testament to his vision.

A Complex Figure

While Ogilvy’s professional achievements were unparalleled, he was also a man of contrasts. A relentless workaholic, he demanded perfection from himself and his team, earning a reputation for high standards and, occasionally, a sharp tongue. Yet, he was also a generous philanthropist, dedicating much of his wealth to charitable causes.

Ogilvy was endlessly curious and a lifelong learner, whether studying consumer behaviour, exploring new industries, or immersing himself in the cultures of his international clients. His personal life mirrored his professional ethos: disciplined, focused, yet imbued with a sense of adventure and a deep appreciation for the human experience.

The Enduring Impact

David Ogilvy passed away in 1999 at the age of 88, but his influence remains deeply ingrained in the advertising industry. His insistence on respecting the consumer, his focus on storytelling, and his commitment to creativity continue to shape how brands communicate today.

Ogilvy demonstrated that advertising could be more than transactional; it could be transformative. By building brands that resonated with consumers on an emotional level, he showed that great advertising has the power to persuade, entertain, and inspire.

The Father of Modern Advertising

David Ogilvy’s legacy is not just in the campaigns he created or the books he wrote but in the principles he championed. He elevated advertising to an art form, rooted in research, creativity, and respect for the audience. He reminded the world that at the heart of every successful campaign is a deep understanding of human nature.

His story is a testament to the power of ideas, the value of curiosity, and the enduring impact of creative excellence. In a world where advertising has become increasingly data-driven and fragmented, Ogilvy’s belief in the power of storytelling and human connection remains as relevant as ever.

David Ogilvy didn’t just sell products—he sold the art of selling itself, leaving a legacy that continues to inspire and guide the industry he transformed.

MARY WELLS LAWRENCE

The Woman Who Redefined Advertising

She shattered the glass ceiling of Madison Avenue, infusing it with bold creativity, glamour, and a fearless sense of innovation. This is the story of Mary Wells Lawrence, the trailblazing visionary behind campaigns like "I ♥ NY," who proved that women could redefine the advertising world.

A Dramatic Beginning

Born Mary Georgene Berg in 1928 in Youngstown, Ohio, Mary Wells Lawrence grew up with a love for storytelling and drama. She earned a degree in theatre from Carnegie Mellon University, honing her skills in creativity and performance—qualities that would later become central to her advertising philosophy. While her initial aspirations were on stage, Lawrence soon realised that advertising offered an even larger platform to captivate audiences.

Her entry into advertising was unconventional for the time, with few women occupying leadership roles in the male-dominated industry. Yet, Lawrence’s talent, energy, and ambition quickly set her apart.

Early Successes and the Road to Stardom Lawrence’s early career was marked by notable achievements. At McCann Erickson, she created the enduring “Plop, plop, fizz, fizz, oh what a relief it is!” jingle for Alka-Seltzer, which became a cultural touchstone. At Jack Tinker and Partners, she masterminded the “End of the Plain Plane” campaign for Braniff International Airways, transforming the airline’s image with colourful aircraft and designer uniforms that captured the imagination of travellers.

This campaign epitomised Lawrence’s ability to fuse aesthetics, storytelling, and cultural relevance, a combination that became her hallmark. She saw advertising not as mere promotion but as an opportunity to create experiences that resonated emotionally with audiences.

Breaking Barriers with Wells Rich Greene

In 1966, Lawrence co-founded Wells Rich Greene, becoming the first woman to lead a major advertising agency. This milestone shattered industry norms and inspired future generations of women to pursue leadership roles in advertising and beyond.

Under her leadership, Wells Rich Greene quickly became known for its daring creativity and sharp strategic thinking. The agency attracted highprofile clients and delivered campaigns that captured the cultural zeitgeist, blending wit, emotion, and cultural relevance in a way that set new standards for the industry.

Iconic Campaigns That Defined an Era

Mary Wells Lawrence’s work is immortalised in

campaigns that remain etched in advertising history:

Alka-Seltzer: “I Can’t Believe I Ate the Whole Thing” This humorous campaign depicted relatable scenarios of overindulgence, using wit to connect with consumers while promoting relief.

Benson & Hedges: “Oh, the Disadvantages”

With sophistication and charm, this campaign turned the brand’s longer cigarette length into a symbol of elegance, cementing its appeal to a discerning audience.

New York State Tourism: “I ♥ NY”

Arguably her most famous creation, the “I ♥ NY” campaign launched in 1977 to revitalise tourism during a time of economic hardship. The simple design—featuring a red heart and bold typography—became a cultural phenomenon, representing not just New York’s spirit but also a timeless expression of love and pride.

These campaigns weren’t just marketing triumphs; they reflected Lawrence’s ability to connect brands with human emotions, making products and places memorable through storytelling and design.

A New Perspective on Advertising

What set Mary Wells Lawrence apart was her theatrical sensibility and her deep understanding of cultural trends. She infused her campaigns with a sense of drama, excitement, and glamour, capturing the imagination of audiences in ways that were both innovative and deeply resonant.

Her campaigns often leveraged celebrity endorsements and pop culture references, bridging the gap between advertising and entertainment. This approach helped brands not only sell products but also establish themselves as integral parts of cultural conversation.

Lawrence also had a knack for understanding the aspirations of her audience. She championed a vision of advertising that was optimistic, forwardlooking, and emotionally engaging. Her ability to inspire confidence in consumers and make them feel connected to brands was a hallmark of her success.

A Champion for Inclusion and Social Impact

Beyond her creative brilliance, Lawrence was a strong advocate for diversity and inclusion within the advertising industry. She actively recruited women and minorities, opening doors that had long been closed. She used her platform to champion causes like environmental conservation and AIDS awareness, showing that advertising could be a force for social good.

Her leadership style was marked by charisma, inclusivity, and an unrelenting drive for excellence. She created an environment where creativity flourished, empowering her team to take risks and break boundaries.

A Legacy That Endures

Mary Wells Lawrence retired from advertising in 1990, but her impact remains profound. She demonstrated that advertising could be more than a business tool—it could be a reflection of culture, a source of inspiration, and a driver of change.

The principles she championed—bold creativity, emotional connection, and cultural relevance— continue to influence the industry today. Her legacy serves as a reminder that great advertising is not just about selling products; it’s about telling stories that resonate, inspire, and endure.

The Woman Who Redefined Madison Avenue

Mary Wells Lawrence was more than an advertising executive; she was a cultural pioneer. Her story is one of resilience, innovation, and vision. She proved that women could not only succeed in advertising but could lead it into new and exciting territories.

Her life’s work reminds us that creativity and human connection are at the heart of great communication. From the enduring simplicity of “I ♥ NY” to the groundbreaking campaigns that broke barriers, Mary Wells Lawrence left an indelible mark on the world—and her legacy continues to inspire generations of creative thinkers and dreamers.

The

Commercial Evolution of Europe:

A Century of Commerce and Business

At the start of the 20th Century, Europe dominated international trade and business.Doesthatstillholdtrue?

The financial superpowers, colonial expansion, and industrial innovation all originated on the continent. In the present day, the scenery has significantly changed. Large empires ruled by European countries at the beginning of the 20th Century gave them access to resources and marketplaces all over the world. With nations like the UK, Germany and France dominating the manufacture of steel, textiles, and machinery, the Industrial Revolution had firmly taken hold.

Significant progress was already being made by European corporations like Royal Dutch Shell (established in 1907) and Siemens (formed in 1847). Siemens was leading the way in electrical engineering and telecommunications, and Royal Dutch Shell was starting to make a name for itself in the world of oil.

UPHEAVAL AND RESTORATION

The economics of Europe suffered greatly as a result of the World War I (1914–1918). Resources were exhausted and infrastructure was devastated. Nonetheless, attempts to modernise and reconstruct occurred during the interwar years. Though it resulted in even greater destruction, World War II (1939–1945) also brought about important technological advances.

The Marshall Plan, an American-sponsored initiative, helped rebuild Europe. Around this time, businesses like Volkswagen began to flourish. Volkswagen, which was established in 1937, played a significant role in the economic revival of Germany by manufacturing automobiles that were both affordable and iconic, such as the Beetle.

UNITY IS STRENGTH

The 20th Century saw a strategic turn towards European integration in the second half. The foundation for the current EU was built with the establishment of the European Coal and Steel Community in 1951, which later developed into the European Economic Community (EEC) in 1957.

This cohesion created an atmosphere that was favourable to commerce and economic expansion. Reduced trade restrictions and a bigger single market were advantageous to businesses. When the European aerospace industries united to become Airbus in 1970, it became a serious rival to the American behemoth Boeing. The success of Airbus serves as an example of how cross-border cooperation may strengthen Europe's competitive advantage.

EUROPEAN CORPORATIONS' ASCENT

A number of European businesses increased their worldwide reach at this time. Founded in Switzerland in 1866, Nestlé has grown to be the largest food and beverage company in the world. The British-Dutch multinational Unilever was founded in 1930 and has since expanded to include a wide range of consumer goods brands.

These companies made significant investments in marketing, worldwide distribution networks, and R&D. Europe's commercial strength was greatly enhanced by its capacity to join growing markets and adjust to shifting consumer tastes.

THE DIFFICULTIES OF GLOBALISATION

There were new obstacles in the late 1900s and early 2000s. Competition increased because of globalisation, especially from the US and developing nations like China and India. Hubs for manufacturing that were more affordable put pressure on European industry.

Once a pillar of Europe's economic power, the steel sector found it difficult to compete with lower-cost imports. To stay afloat, businesses like Luxembourg-based ArcelorMittal had to innovate and reorganise their processes.

DIGITAL REVOLUTION

The arrival of the digital era brought with it both

advantages and disadvantages. While Europe has outperformed Silicon Valley titans in some key industries, it has fallen short in others.

The largest maker of mobile phones in the world used to be Nokia, a Finnish corporation. When it came to mobile communications in the late 1990s and early 2000s, Nokia set the standard. Nevertheless, the business found it difficult to adjust to the smartphone revolution sparked by Google's Android operating system and Apple's iPhone in 2007.

Conversely, the 1972-founded German multinational SAP rose to prominence as the world's leading provider of enterprise software. The success SAP has had offering business solutions demonstrates Europe's potential in the technology sector.

SUSTAINABILITY TAKES THE LEAD

Europe has established itself as a pioneer in sustainable technology and renewable energy in recent decades. Businesses such as Denmark's Ørsted made the switch from fossil fuels to offshore wind power, becoming the largest worldwide.

The development of wind turbine technology has been greatly aided by Siemens Gamesa Renewable Energy, located in Germany. These businesses are vital to solving environmental problems worldwide in addition to supporting the European economy.

The European Union has been a two-edged sword. On the one hand, it has enabled trade and the flow of people, products, and services by creating a sizable single market with over 500 million customers. Companies have profited from this integration by having access to a wider consumer base and more simplified rules.

But the EU also enforces stringent laws that some claim impede competition. Businesses must bear the price of complying with regulations such as the General Data Protection Regulation (GDPR), which has established strict guidelines for protecting personal data.

BREXIT AND GEOPOLITICS

With the UK's exit from the EU in 2020, there was uncertainty and the possibility of fragmentation. Businesses had to manage new tariffs and trade agreements that affected market access and supply networks.

Furthermore, Europe's trade relations have been damaged by geopolitical tensions and the global growth of protectionism. European companies need to be adaptable and strong in the face of trade disputes, sanctions, and changing alliances.

NOW: RISING OR FALLING?

Europe's competitive advantage in trade and commerce as of 2024 is a complicated picture. The continent is still a major force in international innovation, trade, and technology. In sectors such as automotive (Volkswagen, BMW), aerospace

(Airbus), luxury goods (LVMH, Kering), and pharmaceuticals (Novartis, Bayer), European businesses remain at the forefront.

But problems still exist. Tech behemoths from China and the United States, such as Tencent, Amazon, Alibaba, and Google, control the digital economy. Concerns regarding competitiveness in the digital era are raised by Europe's incapacity to build tech conglomerates on par with other countries.

In addition, Europe's economic growth rates have been lower than those of Asia and the Americas. Economists frequently point to ageing populations, expensive labour costs, and bureaucratic roadblocks as obstacles to economic dynamism.

EDUCATION AND INNOVATION

Europe has been making investments in education, research, and innovation to solve these issues. The goal of the €95.5bn Horizon Europe program for 2021–2027 is to promote scientific research and technological innovation.

Start-up hubs are promoting entrepreneurship in places like Amsterdam, Stockholm, and Berlin. Global IT giants like Sweden's Spotify and the Netherlands' Adyen have emerged, indicating that Europe can really compete in the digital economy.

THE GREEN DEAL AND THE FUTURE

Unveiled in 2019, the European Green Deal is a comprehensive strategy aimed at transforming climate and environmental concerns into opportunities to make the economy of the European Union sustainable. Through this programme, Europe will be at the forefront of sustainable practices and green technologies.

New commercial growth opportunities are created by investments in sustainable agriculture, renewable energy, and electric transportation. Businesses such as Volkswagen are transitioning to electric vehicles and making large expenditures in EV development and battery technologies.

Europe's commercial and trading edge has gone through cycles of expansion, contraction, and change during the last century. Despite the challenges posed by globalisation and World Wars, the continent has demonstrated tenacity and adaptation.

Global industries, ranging from consumer products and manufacturing to aerospace and renewable energy, have been significantly shaped by European enterprises. The continent is likely to maintain a prominent role in international trade given its dedication to integration, innovation, and sustainability.

Europe's ability to improve its commercial and trading advantage in a world that is becoming more and more competitive will depend on its ability to manage the digital revolution, invest in emerging technologies, and solve structural difficulties. i

Christoph D Kauter: Leading Beyond Capital Partners with Vision and Purpose

ChristophDKauter,FounderandManagingPartnerofBeyondCapitalPartners,has built a career that blends entrepreneurial vision with a commitment to ESG-driven privateequity.Withmorethan25yearsofexperience,hestandsoutasaleaderdedicated tocreatingsustainablegrowthanddeliveringvalueforinvestorsandbusinessesalike.

Since founding Beyond Capital Partners in 2015, Christoph D. Kauter has grown the Frankfurt-based private equity firm from its self-funded entrepreneurial beginnings into a well-established institution. The firm focuses on acquiring majority stakes in assetlight small and medium enterprises (SMEs) across sectors like B2B services, IT, software, healthcare, and lifestyle within the German-speaking region.

Kauter’s investment philosophy centres on good entrepreneurship, with ESG criteria embedded into every stage of the value creation process. By integrating sustainability into its core strategy, Beyond Capital Partners ensures that its portfolio companies align with global standards while fostering innovation and longterm success.

AN IMPRESSIVE CAREER IN PRIVATE EQUITY

Kauter brings over two decades of experience in sourcing investments, executing M&A transactions, and driving growth strategies. Since 2008, he has held executive roles at leading private equity firms, honing his expertise in managing acquisitions and exits and building strong relationships with the German-speaking SME ecosystem.

His ability to win the trust of selling founders and align their vision with Beyond Capital Partners’ objectives has been a defining feature of his career. Under his leadership, Beyond Capital Partners has raised multiple funds, growing its reputation as a trusted partner in the mid-cap investment landscape.

“Good entrepreneurship is the foundation of every successful business,” Kauter emphasises, reflecting his focus on sustainable and ethical growth.

EDUCATIONAL EXCELLENCE AND INDUSTRY EXPERTISE

Kauter holds a master’s degree in banking and finance from the Frankfurt School of Finance & Management and a postgraduate qualification in finance from CASS University, London. Additionally, he is a certified Real Estate M&A Advisor and supervisory board member.

His robust academic background complements his practical expertise, allowing him to navigate the complexities of private equity investment with precision.

Beyond his role at Beyond Capital Partners, Kauter is an active contributor to the private equity community. He is a frequent speaker at global investment conferences, a lecturer at leading business schools in Germany, and a mentor for Level 20, a non-profit organisation promoting gender diversity in private equity.

DRIVING BEYOND CAPITAL PARTNERS’ SUCCESS

Since its inception, Beyond Capital Partners has grown into a prominent player in the DACH region’s private equity market. The firm focuses on acquiring and managing businesses with strong potential for growth, leveraging ESG principles to enhance value.

Kauter’s leadership has guided Beyond Capital Partners through multiple successful fundraisings, including its third fund in 2024, which reached €181mn at its hard cap. This achievement underscores the firm’s growing reputation and investor confidence.

COMMITMENT TO SUSTAINABILITY AND SOCIAL RESPONSIBILITY

Under Kauter’s guidance, Beyond Capital Partners has integrated ESG considerations into its investment lifecycle. This includes an "ESG along the investment cycle" programme, which addresses sustainability from sourcing to exit. By aligning with global frameworks like the UN Sustainable Development Goals (SDGs) and the Principles for Responsible Investment (PRI), the firm demonstrates its dedication to responsible investing.

Portfolio companies are required to prepare annual ESG roadmaps, outlining short- and long-term initiatives that align with sustainability goals. This approach ensures that ESG is not just a compliance exercise but a driver of innovation and value creation.

BALANCING PROFESSIONAL EXCELLENCE WITH PERSONAL VALUES

Kauter’s dedication to his professional role is matched by his commitment to family and community. A passionate father of three, he values time with his family and enjoys travelling to broaden his perspectives.

In addition to his work with Beyond Capital Partners, Kauter supports charitable initiatives, reflecting his belief in giving back to the community and fostering opportunities for others.

LOOKING AHEAD: A VISION FOR GROWTH AND SUSTAINABILITY

As Beyond Capital Partners continues to expand, Kauter remains focused on fostering sustainable growth and entrepreneurial success. His leadership exemplifies the firm’s commitment to innovation, responsibility, and collaboration, ensuring its position at the forefront of private equity.

For Kauter, private equity is not just about financial returns but about creating lasting value for businesses, investors, and society. His career stands as a testament to the power of visionary leadership and a commitment to doing business with purpose. i

Founder & Managing Partner: Christoph D Kauter

Beyond Capital Partners: Driving Sustainable Growth in the DACH Region

Beyond Capital Partners (BCP), an owner-managed private equity firm based in Frankfurt am Main, Germany, exemplifies a commitment to sustainable growth, innovation, and entrepreneurial excellence. With a focus on ESG-oriented investment strategies, BCP has become a leading player in the smallto-medium enterprise (SME) market across German-speaking countries. Since its founding in 2015, the firm has grown its portfolio and reputation, achieving significant milestones in fund management, operational excellence, and social responsibility.

A DECADE OF ENTREPRENEURIAL EXCELLENCE

Founded by three entrepreneurial visionaries, Beyond Capital Partners focuses on acquiring majority shareholdings in well-performing smallto-medium-sized companies with revenues between €10mn and €50mn, and EBITDA ranging from €1.5mn to €7.5mn. These investments span diverse sectors such as B2B services, IT services, software, healthcare and well-being, lifestyle, and entertainment.

BCP has built a reputation as a hands-on investor, partnering with portfolio companies to navigate the challenges posed by technological, demographic, and social changes. The firm’s philosophy is rooted in its entrepreneurial spirit, where it positions itself as a trusted partner, leveraging pragmatic advice, extensive industry experience, and ample capital to support growth over the long term.

BCP’s team, which has expanded to 16 professionals, embodies this ethos. The firm has established itself as a key player in the DACH region’s lower-mid-market private equity segment, with a portfolio that includes 13 platform acquisitions, 14 add-ons, and over 100 additional acquisitions through roll-ups.

STRATEGIC FUND MANAGEMENT

BCP’s ability to attract top-tier institutional investors is a testament to its strategic acumen and strong performance. Over the years, the firm has successfully launched three funds, each achieving significant milestones:

• Fund I (2017): With an initial closing of €25.5mn from family office investors, Fund I delivered a strong performance, achieving a 1.5x multiple of invested capital (MOIC) by 2019.

• Fund II (2021): Closed at a hard cap of €115.2mn, Fund II currently holds a 1.9x MOIC

“Good entrepreneurship is the foundation of every successful business and ever since has been a core pillar of Beyond Capital Partners’ investment philosophy.”

Christoph D Kauter

Managing Partner and Founder of Beyond Capital Partners

with a DPI of 0.23x, reflecting its steady and conservative growth trajectory.

• Fund III (2024): Marking a significant milestone, Fund III closed at €180.7mn, making it one of the few successfully raised funds in a challenging fundraising environment. Institutional investors, including the European Investment Fund and other leading fund-of-funds, re-upped their commitments, further solidifying BCP’s status as an established general partner (GP).

The firm’s founders, team members, and close networks have contributed over 10 percent of the total capital commitments across these funds, underscoring their belief in "real skin in the game" as a key alignment mechanism for investor confidence.

INTEGRATING ESG PRINCIPLES ACROSS THE INVESTMENT LIFECYCLE

At the heart of BCP’s strategy lies a robust commitment to Environmental, Social, and Governance (ESG) principles. The firm integrates ESG criteria across all stages of its investment cycle, from sourcing and due diligence to postacquisition and exit strategies.

As an Article 8+ fund under the Sustainable Finance Disclosure Regulation (SFDR), Fund III promotes ESG characteristics and allocates a percentage of its committed capital to sustainable business models. This aligns BCP’s investments with the United Nations Sustainable Development Goals (SDGs), including good health and well-being, quality education, decent work and economic growth, reduced inequalities, and climate action.

BCP’s “ESG Along the Investment Cycle” programme exemplifies its commitment to sustainability. This initiative includes:

1. Sourcing and Due Diligence: ESG objectives

are embedded in the firm’s investment criteria, supported by comprehensive internal and external ESG assessments.

2. Monitoring and Reporting: A digitalised ESG reporting platform tracks ESG indicators before and after acquisition, providing transparency and enabling portfolio companies to develop targeted ESG roadmaps.

3. Value Creation: ESG profiles are used to evaluate risk, development opportunities, and value creation, aligning each company’s goals with BCP’s broader sustainability objectives.

A CULTURE OF RESPONSIBLE INVESTMENT

In 2023, BCP further enhanced its ESG strategy by aligning its entire investment cycle with the Principles for Responsible Investment (PRI). The firm has also joined the United Nations Global Compact, reinforcing its commitment to ethical business practices and sustainable growth.

Germany: Frankfurt

By adopting tools like internal ESG maturity assessments and mandatory annual reporting for portfolio companies, BCP ensures that sustainability is not only a compliance measure but a driver of value creation.

FOSTERING ENTREPRENEURIAL SUCCESS

BCP’s entrepreneurial philosophy extends beyond its internal operations. The firm partners closely with the founders and management teams of its portfolio companies, providing strategic guidance and capital to fuel growth. This approach has resulted in remarkable success stories, with portfolio companies achieving increased operational efficiency, market expansion, and long-term value creation.

One of BCP’s key strengths is its ability to adapt to the evolving needs of mid-cap companies in a rapidly changing landscape. The firm’s focus on asset-light

business models in high-growth sectors ensures its portfolio remains resilient and competitive.

OVERCOMING CHALLENGES WITH PRAGMATISM

The lower-mid-market private equity space is not without its challenges. BCP has successfully navigated geopolitical uncertainties, demographic shifts, and industry disruptions by fostering a culture of resilience and adaptability.

The firm’s hands-on approach and long-term perspective enable it to identify opportunities within these challenges. For instance, infrastructure development and technological innovation are not only hurdles but areas where BCP can drive value creation and enhance portfolio performance.

A BRIGHT FUTURE AHEAD

Looking ahead, Beyond Capital Partners is wellpositioned to build on its success. The firm aims

to expand its geographical footprint, diversify its product offerings, and continue integrating cutting-edge technology into its operations.

BCP’s commitment to ESG principles will remain a cornerstone of its strategy, ensuring sustainable growth for both the firm and its portfolio companies. By aligning its investments with global sustainability goals, BCP is not only driving financial returns but also contributing to a more inclusive and responsible business landscape.

With nearly a decade of experience, a proven track record, and a forward-looking strategy, Beyond Capital Partners continues to set the standard for excellence in private equity. For investors, entrepreneurs, and stakeholders, the firm represents a trusted partner dedicated to driving innovation, sustainability, and long-term value creation in the DACH region and beyond. i

Timeless Investments… or Just Watches? >

Are the world's most valuable timepieces status symbols, punctuality aids, or something best kept in a bank vault?

Luxury watches have long transcended their primary function. Everyone has a mobile phone, right? Town halls have clocks, and failing all else, you can try that (timeless) ice-breaker to a passerby: “Got the time?”

From the renowned Swiss boutique manufacturers which turn out gem-like works of mechanical art to cheap-and-cheerful digitals with a plastic strap and a single-digit price tag, the watch market is a bit of a moveable feast.

Certain brands and models now attract serious collectors — and muggers. Be careful out there. There’s no disputing the financial worth of a fine watch. But do they qualify as investments? Will they keep their value as well as they keep time?

In a world where digital is king, the allure of mechanical timepieces may appear out of date. But not according to the market; luxury brands have seen a resurgence — not just as objects of fine craftsmanship, but also as alternative assets. And their value can even increase over the years.

Collectors, investors, and aficionados agree that having a watch “to watch” can actually provide financial stability for the future. So, which models reign supreme in the high-stakes world of horology, and can their worth endure this secondary (or primary) test of time?

THE PINNACLE OF LUXURY

Patek Philippe, founded in 1839 in Geneva — Swiss-made watches have always had a certain cachet — has built a reputation for its magnificent, hand-crafted clocks and wristwatches. The firm pays unrivalled attention to detail — with a commitment to innovation. A Patek Philippe speaks of exclusivity, heritage, and precision; the brand is widely regarded as the “gold standard” of the sector. One of the most sought-after models is the Nautilus Ref. 5711, especially in stainless steel.

Gérald Genta developed the Nautilus in 1976, and it has grown in value ever since. Want one? Your piggy bank has to have some flesh on its bones; a glance online shows prices in seven figures. Yep. Around one-and-a-half million bucks. Scarcity and demand make great bedfellows.

Another classic is the Patek Philippe Calatrava, a more subtle dress watch. Not as well-known as the Nautilus, it’s widely considered as the pinnacle of elegance — and a must-have for the serious collector. The value is still substantial, but (comparatively) reasonable: a mere 50 grand for this one.

VALUE RETENTION

Patek Philippe's marketing tagline is "You never actually own a Patek Philippe." (You can say that again, for the average punter.) What the firm means is that you simply “look after it for the future generation". Fair enough.

The business produces limited quantities of each model to ensure exclusivity, often turning watches into heirlooms. Vintage Patek Philippes fetch high auction prices, with the Grandmaster Chime 6300A setting a $31m record in 2019. The demand always exceeds supply, raising secondhand prices. Due to their rarity and heritage, Patek Philippes are expected to retain or increase in value.

The demand for the most popular models continually outstrips supply, driving second-hand prices up. Patek Philippes are expected to keep or increase their worth due to their (intentional) rarity and brand heritage.

THE ICONIC ROLEX

When it comes to global recognition, by connoisseurs and thieves, Rolex is high on the totem pole. Established in 1905, the company has built its empire on the principles of sturdiness, dependability, and classic design. The balance of luxury and utility makes it popular divers, explorers, and astronauts — which gives it a special allure for the buyer who likes to be seen as an adventurer.

The Submariner, aka the Ref. 116610LV — or “the Hulk” to its friends and would-be owners — has a striking green bezel and dial, making it one of the most famous models in the portfolio. The Hulk, which debuted in 2010, became an immediate hit — and since being discontinued a decade later, its value has only risen. A repeating pattern of scarcity, here. A Hulk is now worth roughly twice the original retail price of $9,050.

Another noteworthy model is the Daytona, Ref. 116500LN, sporty yet polished. The watch’s link

with actor and motor-racing icon Paul Newman further adds to its charm. Vintage Paul Newman Daytonas have sold for millions at auction. Newman's own Daytona Ref. 6239 fetched $17.8m when it went under the hammer (ouch; bad choice of phrase) in 2017.

Rolex watches are noted for holding their value, or rising in price. The combination of quality, design evolution and restricted production numbers for specific models drives the secondary market. Rolexes have proven to be stable assets, withstanding economic downturns and shifting fashion trends. They are seen as an excellent investment option for those seeking durability and financial stability.

Audemars Piguet, “AP” to the knowledgeable, rounds out the holy trinity of timepieces. Founded in 1875, the company is renowned for avant-garde designs and technical excellence. While there is a range of models, the Royal Oak has secured its position in horological history. Value? Up to half a mill to you, my friend.

Gérald Genta — remember him? Swiss, of course — developed the Audemars Piguet Royal Oak in

1972, with an unusual octagonal bezel, integrated bracelet, and "tapisserie" dial. It was seen as ground-breaking when it was released. Versions such as the Royal Oak Jumbo Extra-Thin are in high demand. Oh, you Google it. A lot, OK?

The Royal Oak Offshore range, which debuted in the 1990s, put a tougher, sportier spin on the classic design. Originally polarising, due to its dramatic size and style, the Offshore has now garnered a devoted following, bolstering AP's reputation for pushing the envelope.

Royal Oak models, particularly those discontinued or produced in limited numbers, have exceptional value retention. Again, the decision to limit manufacturing has increased demand. The Royal Oak's popularity has grown in recent years, owing to high-profile endorsements and its attractiveness to a younger generation. Audemars Piguet watches, like Patek Philippe, qualify as true investments.

Vacheron Constantin symbolises a more modest style of luxury than the others here. Founded in 1755, it is one of the world's oldest watch makers in continual production, and its dedication to

traditional workmanship has earned it a loyal following.

Flagship models include the Patrimony, with minimalist dials, a narrow profile, and a special place in the brand's classical heritage. The Overseas line, Vacheron Constantin's take on the sport-luxury category, features a more modern, adventurous design — with, of course, immaculate craftsmanship.

Vacheron Constantin watches are not as wellknown as Patek Philippe or Rolex, but they are appreciated by those in the know. The Patrimony and Overseas, in particular, are famed for their blend of design and mechanical intricacy. Their value retention is less consistent than Patek Philippe or Rolex, but they are nevertheless regarded fine long-term investments, particularly for collectors seeking something unusual.

RICHARD MILLE AND INDEPENDENTS

In recent years, independent brands such as Richard Mille have blossomed. Richard Mille timepieces are frequently referred as "racing machines on the wrist" — and not because they run fast, bien sur. Rafael Nadal models such

as the RM 11-03 and RM 27-03 have become status symbols in their own right. Usually among the ultra-rich.

While the brand's aggressive pricing and unorthodox designs have divided opinion, Richard Mille models have proven to be sound investments, with several appreciating on the secondary market. Other independents, like as FP Journe, A Lange & Söhne, and Hublot, have carved out similar niches for themselves.

WHAT ABOUT THAT VALUE?

The luxury watch market has shown remarkable resilience. Limited production, brand legacy and loyalty, workmanship, and the growing popularity of alternative assets all point to a glowing future of your investment. But caveat emptor: there are dangers and pitfalls to consider. The market can be influenced by trends, economic volatility, and changes in customer tastes.

Ultimately, luxury timepieces are physical representations of history, craftsmanship, and personal status. The most precious are beautiful to look at, as millionaires wonder if it’s teatime yet, but they’d be wise to keep them in a safe. i

Trust-Funds: A Gilded Cage or the Perfect Start in Life?

ew subjects in the vast field of wealth management cause as much discussion and consternation as the trust fund.

Rich parents who are thinking about their future wealth are faced with a big question: is it appropriate to invest in their children's future by setting up a trust fund, or does it run the risk of encouraging complacency and inhibiting ambition?

It's important to investigate whether trust funds actually serve the interests of the next generation as we manage the intricacies of money, legacy, and parental responsibility.

Trust funds are fundamentally intended to offer financial security. They can guarantee that kids get access to options that might not otherwise be available, such as high-quality healthcare, education, and opportunity. The comfort of knowing their kids are shielded from financial difficulties is irresistible to a lot of affluent parents.

But occasionally, this safety net could turn into a golden cage. Where's the motivation for a beneficiary of a trust fund to work, create, or even strive when their financial needs are always taken care of? Celebrity rumours abound about trust fund kids, people whose lives devolve into excess or boredom because they lack the motivation that necessity usually provides.

GUIDING OR MICROMANAGING?

Adding restrictions to the use of trust funds is one method parents try to reduce the risks involved with them. This strategy can serve as a problematic leash as well as a guide.

Parental earmarking of funds for certain reasons, like schooling, business startup, or first home purchase, can help kids make responsible decisions in life. These requirements can act as subtle prods in the direction of accountability, making sure that wealth is a tool for development rather than a vehicle for luxury.

However, excessively strict requirements might lead to animosity. The limitations placed upon

their inheritance may cause adult children to resent them, making them feel mistrusted or in control even after they pass away. Finding the right balance between giving direction and preserving individuality is difficult.

THE CUT-OFF DILEMMA

Setting a cut-off date, or a time after which the trust fund stops disbursing money and forces beneficiaries to go it alone, is another tactic. This can foster a feeling of urgency as well as the growth of independence and professional goals.

It is possible to specify a termination date for a trust legally. Trusts can be set up to disburse assets in instalments or to terminate completely when specific requirements are satisfied, like the recipient attaining a particular age or life milestone.

This strategy is not without its drawbacks, though. Unexpected hardship may result from an abrupt cessation of financial support, particularly if recipients have grown accustomed to a particular way of life or lack the necessary skills to function independently. Furthermore, it might encourage sentiments of betrayal or desertion, especially if the cut-off isn't well explained.

GETTING THE BALANCE RIGHT

So how do affluent parents navigate these perilous waters? With open, sincere communication, and careful planning.

Educating kids about wealth and responsibility at a young age can help to demystify money and establish reasonable expectations. Regardless of one's wealth, financial literacy is a gift that never stops giving since it allows people to make wise decisions.

A one-size-fits-all strategy that might not benefit everyone equally can be avoided by tailoring the trust to each child's particular needs and personality. While some people flourish with more independence, others could benefit from more rigidity.

OTHER STRATEGIES

There are other ways for parents to provide for

their children financially without taking on the dangers involved with traditional trust funds.

One choice is to create incentive trusts, which disburse money only once specific requirements are satisfied, such as finishing school or keeping a job. This offers a safety net and can also promote beneficial behaviours.

Investing on experiences as opposed to giving out cash help is another option. Enriching a child's life with travel, education, or charitable endeavours can do so without encouraging dependency.

GETTING EXPERT ADVICE

It takes skill to negotiate the emotional and legal intricacies of trust funds. Speaking with financial consultants, estate planners, and even family therapists might yield insightful information. These experts can assist in creating a strategy that is in line with the family's objectives and values, making sure that wealth is a strength rather than a hindrance.

Establishing a trust fund is ultimately a very personal and complex decision. It's about creating the kind of legacy parents want to leave behind, not just about protecting wealth.

When carefully planned and supported by transparent communication, trust funds can be extremely useful instruments for good. They can offer chances, safety, and a foundation that will allow the following generation to excel.

But if they aren't carefully thought out, they could unintentionally impede the very development and independence that parents want to encourage. Parents can strike a balance that allows their children to build their own accomplishments while benefiting from the family's hard-earned money by balancing the advantages and disadvantages, establishing reasonable conditions, and taking cut-off points into consideration.

The ultimate objective should be to produce people who are capable, caring, and dedicated to leaving their own stamp on the world — not just heirs to a fortune, but stewards of it. i

Empowering Traders Globally: The XM Approach to Achieving Comprehensive Trading Excellence

In the competitive world of online trading, XM stands out as a trusted, multi-regulated broker dedicated to innovation, client satisfaction, and education. Since entering the trading scene close to 15 years ago, XM has grown into a global leader with over 15 million clients, offering a robust platform that supports traders of all levels in achieving their financial goals.

In the highly competitive world of online trading, few companies stand out like XM, a trusted, multi-regulated broker that has set the standard for innovation and reliability. Since its inception in 2009, XM has grown from a promising start-up into a global leader, amassing a client base of over 15 million. Built on a foundation of customer-centric values, XM’s approach to trading offers clients worldwide an experience that goes beyond transactions, with each feature designed to empower traders on their journey to success.

XM caters to both beginner and advanced traders with a comprehensive platform that offers over 1,400 trading instruments, covering currencies, commodities, stocks, and indices. Clients can access diverse investment opportunities with some of the most competitive conditions in the industry, including low spreads and advanced, real-time execution for a seamless trading experience.

At the heart of XM’s service is an unwavering commitment to client satisfaction and security. The company’s industry-leading infrastructure ensures that over 99% of trades are executed in under a second, supported by a strict "no re-

"XM caters to both beginner and advanced traders with a comprehensive platform that offers over 1,400 trading instruments, covering currencies, commodities, stocks, and indices."

quotes and no rejections" policy. This reliability allows traders to confidently pursue their strategies, knowing they can count on the speed and accuracy is essential in the fast-paced trading world. XM’s regulatory framework further reinforces its dedication to client safety, with oversight from multiple leading regulatory bodies worldwide.

However, XM’s mission goes far beyond simply providing trading products – it’s about empowering knowledgeable and confident traders. XM’s educational resources are extensive, offering clients free access to webinars, live trading sessions, tutorials, and expert-led workshops,

both online and offline. This commitment to continuous learning allows traders at all levels to build their expertise, refine their strategies, and navigate the markets with assurance.

XM’s Customer Experience team is another core element of its client-first approach. With multilingual support available in over 30 languages, XM’s 900-strong team of dedicated professionals is on hand to ensure that every client, regardless of experience level or location, receives top-tier service and guidance. Clients know they can rely on XM not only as a broker but as a trusted partner that prioritises their unique needs.

The XM experience is built on the principles of accessibility, trust, and expertise, making it a preferred broker for millions. As markets evolve and competition intensifies, XM remains committed to refining its offerings and delivering an unmatched trading experience, proving that putting clients first is not just a promise – it’s a defining principle at XM.

For more information on XM’s offerings and the latest updates, visit xm.com and follow XM on various social media platforms. i

> Jaguar: From E-Type Icon to Electric Ambition – Is This the Right Road?

The year is 1961. Geneva Motor Show. Jaws drop. Hearts race. Jaguar unveils the E-Type—a masterpiece of curves and chrome that redefines automotive desire. Enzo Ferrari famously calls it "the most beautiful car ever made." This moment cemented Jaguar's position as a purveyor of breathtaking design, exhilarating performance, and quintessential British cool.

Fast forward to 2024, and the growl of the Jaguar is muted. Beset by dwindling sales and an identity crisis, the brand that once roared with confidence now finds itself at a crossroads. Yet, from its base in Coventry comes a bold declaration: Jaguar will be all-electric by 2025. It is a radical reinvention and a leap of faith. But is it the right leap? Can Jaguar truly navigate the road from E-Type legend to electric pioneer?

A STORIED PAST: JAGUAR’S RISE AND STRUGGLES

Jaguar’s journey began in 1922, founded as the Swallow Sidecar Company. The name Jaguar took hold after World War II, marking the brand’s entry into the spotlight. The XK120, a sleek sports car powered by a revolutionary engine, set the stage for Jaguar’s dominance. Victory followed victory at Le Mans, and the E-Type's arrival in the 1960s turned heads across the globe.

The E-Type wasn’t merely a car; it was an icon of rebellion and sophistication, gracing bedroom posters and starring in films. Jaguar symbolised speed, style, and glamour. Yet the road ahead was far from smooth. A merger with British Motor Corporation in 1966 to form British Leyland heralded a turbulent era marked by quality control issues and stagnation. While the XJ sedan achieved acclaim, the brand struggled to maintain its reputation amidst fierce competition.

Ford's acquisition of Jaguar in 1989 brought a wave of optimism. Investment rejuvenated the lineup with models like the XK8, rekindling some of the old magic. However, the 2008 financial crisis hit hard. Ford sold Jaguar Land Rover (JLR) to Tata Motors, whose stewardship offered stability but highlighted an underlying question: how could Jaguar adapt to a new era while retaining its soul?

ELECTRIC DREAMS: A RADICAL TRANSFORMATION

In 2021, Jaguar announced its boldest move yet: by 2025, the brand would be all-electric. This decision wasn’t merely a pivot but a complete transformation, designed to position Jaguar as a leader in the burgeoning luxury EV market.

"Fast forward to 2024, and the growl of the Jaguar is muted. Beset by dwindling sales and an identity crisis, the brand that once roared with confidence now finds itself at a crossroads."

The announcement was met with equal parts admiration and scepticism. Could a brand steeped in the roar of petrol engines redefine itself as a silent, electric innovator?

Jaguar’s first steps in electrification began with the I-Pace, an all-electric SUV launched in 2018. Garnering critical acclaim for its design and handling, the I-Pace demonstrated Jaguar’s potential in the EV market. The brand's upcoming electric models, based on its advanced Jaguar Electric Architecture (JEA) platform, promise improved range, performance, and cutting-edge technology. Rumours of a sleek electric grand tourer signal Jaguar's intent to combine heritage with innovation.

Design remains a cornerstone of Jaguar's strategy. Ian Callum’s tenure as design director infused modern elegance into the brand while maintaining its DNA. Sleek lines, flowing curves, and understated sophistication define Jaguar’s aesthetic and aim to set its EVs apart in an increasingly crowded market.

CHALLENGES ON THE ROAD TO ELECTRIFICATION

The journey to an all-electric future is fraught with obstacles. The luxury EV market is highly competitive, dominated by Tesla, whose technological innovations and cult-like following set a daunting benchmark. Established German marques, including Audi, Porsche, and Mercedes-Benz, are also investing heavily in electrification, leveraging their brand prestige and engineering prowess.

Infrastructure presents another hurdle. Although charging networks are expanding, range anxiety and the convenience of recharging remain concerns for potential buyers. Jaguar must

ensure its EVs are not only cutting-edge but also supported by reliable and accessible charging solutions.

Brand perception is perhaps Jaguar's greatest challenge. The question looms: can Jaguar convince a new generation of customers, unfamiliar with its storied past, that it belongs in the modern luxury EV conversation? Moreover,

can die-hard enthusiasts, who revere the growl of a petrol engine, embrace the silence of electrification?

The financial stakes are immense. Electrification demands billions in investment for research, development, and production. JLR's commitment of significant resources reflects its confidence in the strategy, but profitability in the EV market

remains uncertain, especially for a brand trying to reposition itself.

REASONS FOR OPTIMISM

Despite the challenges, Jaguar's all-electric ambition aligns with global trends. Governments worldwide are incentivising EV adoption, while consumer demand for sustainable alternatives continues to grow. By committing early to a fully

electric lineup, Jaguar has the opportunity to position itself as a leader in the luxury EV space.

Jaguar’s heritage also offers a unique advantage. The brand’s association with design, performance, and luxury gives it an emotional resonance that can appeal to buyers seeking an EV with soul. By blending its storied past with cutting-edge technology, Jaguar can carve out a

"The success of Jaguar's electric transformation hinges on its ability to balance reinvention with authenticity."

distinct niche, offering a fusion of tradition and innovation.

A BALANCING ACT: REINVENTION WITHOUT LOSING IDENTITY

The success of Jaguar's electric transformation hinges on its ability to balance reinvention with authenticity. The brand must embrace innovation while staying true to the principles that made it iconic: impeccable design, thrilling performance, and an air of exclusivity.

Jaguar’s strategy could also benefit from greater emphasis on storytelling. The narrative of transitioning from the roar of the E-Type to the silence of electric power offers rich emotional and historical layers that can resonate with consumers. By connecting its future with its past, Jaguar can craft a compelling story that highlights the continuity of its ethos despite the shift in technology.

Moreover, partnerships and collaborations may play a crucial role. Whether by working with tech companies to develop cutting-edge software or leveraging joint ventures to expand charging infrastructure, collaboration could help Jaguar overcome some of the practical challenges of electrification.

WILL JAGUAR ROAR AGAIN?

The road from E-Type icon to electric pioneer is undeniably steep. Yet, Jaguar has a history of defying expectations, innovating in the face of adversity, and delivering cars that capture the imagination. The bold decision to embrace an all-electric future is a testament to the brand’s willingness to adapt and evolve.

Whether this transformation will usher in a new golden age for Jaguar remains to be seen. The stakes are high, the competition fierce, and the challenges daunting. But for a brand that has long been synonymous with daring design and performance, the opportunity to lead in the luxury EV market could mark a triumphant new chapter.

As Jaguar charges into the future, one thing is clear: the spirit of innovation that defined the E-Type era is alive and well. If the brand can harness that spirit, adapt to modern demands, and stay true to its core values, it may yet prove that even in the age of electricity, a Jaguar can still roar. i

Jaguar's 2025 Ad Campaign: A Bold Move or a Misfire?

In the competitive world of automotive advertising, where glossy vehicles and roaring engines dominate, Jaguar's 2025 campaign has made waves for all the wrong—or perhaps all the right—reasons. The campaign’s defining feature? A striking absence of cars.

The first video in the campaign eschews the traditional showcase of vehicles, instead featuring models clad in avant-garde outfits posing dramatically in a vibrant desert landscape. Accompanied by cryptic slogans like “creating the exuberant,” the campaign has sparked a heated debate. Critics deride it as misguided and disconnected, while supporters laud its artistic ambition and disruptive approach.

THE CRITICISM: WHERE ARE THE CARS?

For many, an automotive ad campaign that doesn’t prominently feature cars feels like a missed opportunity. Detractors argue that Jaguar has overstepped in its quest for reinvention, straying too far from its roots as a maker of beautiful, highperformance vehicles.

“This campaign feels like a fashion ad, not a car ad,” says one sceptical observer. “Where’s the focus on Jaguar’s legacy, its vehicles, its engineering prowess?” Critics contend that by prioritising abstract imagery and broad philosophical themes, Jaguar risks alienating its core audience—drivers who value the brand’s heritage of sleek design and powerful performance.

Some go further, suggesting that the campaign reflects a brand in crisis. Facing declining sales and intense competition in the luxury market, Jaguar’s pivot to high-concept advertising may appear as a desperate attempt to generate buzz without a clear strategy for translating it into tangible product interest.

THE DEFENCE: REDEFINING THE BRAND

On the other side of the debate, supporters argue that Jaguar’s campaign is bold, forward-thinking, and exactly what the brand needs in an era of rapid industry change.

Jaguar’s 2025 campaign aligns with a broader rebranding effort that includes a refreshed logo, a new typeface, and an overarching philosophy of “copying nothing.” The absence of cars in the initial video is deliberate, they argue, shifting the focus from product to ethos. By doing so, Jaguar aims to position itself not just as a car manufacturer but as a purveyor of a lifestyle—a brand that symbolises creativity, individuality, and exuberance.

This approach seeks to resonate with a new generation of consumers who prioritise experiences, sustainability, and brand identity over traditional

car specs like horsepower and torque. “They’re not selling a car; they’re selling an idea, a feeling,” notes one supporter. “It’s about building a connection before getting to the details.”

ELECTRIC AMBITIONS AND THE ROAD AHEAD

Jaguar’s bold move can’t be viewed in isolation from its broader strategic pivot. By 2025, the brand plans to transition to an all-electric lineup, part of its ambition to redefine itself as a leader in the luxury electric vehicle (EV) market.

This shift reflects both necessity and opportunity. The global push toward sustainability, coupled with stringent emissions regulations, has forced automakers to rethink their offerings. Jaguar’s campaign, with its focus on creativity and exuberance, may be an effort to distance itself from its gas-powered past and position itself as a forward-looking, innovative brand.

The campaign’s abstract nature could also signal a desire to stand out in the increasingly crowded EV market, dominated by players like Tesla and legacy giants such as BMW, Mercedes-Benz, and Audi. By focusing on brand identity and emotional resonance, Jaguar may be trying to carve out a niche that isn’t solely defined by battery range or charging times.

A CALCULATED RISK OR A MISSTEP?

The success of Jaguar’s 2025 campaign will hinge on its ability to bridge the gap between its abstract messaging and concrete consumer appeal. While the high-concept visuals and slogans may intrigue a segment of the audience, they must ultimately lead to interest in and demand for Jaguar’s electric vehicles.

Moreover, Jaguar must ensure that its broader rebranding efforts resonate across its target markets. The luxury EV buyer is a discerning customer, often as interested in the story a brand tells as in the performance of its products. Jaguar’s challenge lies in leveraging its heritage of design and performance while embracing the future of mobility.

A GAMBLE WORTH WATCHING

Jaguar’s 2025 campaign is undeniably a gamble, one that eschews convention in favour of a bold reimagining of what automotive advertising can be. Whether this gamble pays off will depend on its ability to convert artistic ambition into real-world sales and brand loyalty.

For now, one thing is certain: Jaguar has grabbed the industry’s attention. In doing so, it has set the stage for what could either be a triumphant reinvention or a cautionary tale of misaligned ambition. Either way, the automotive world is watching closely as Jaguar accelerates into uncharted territory. i

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> NBG Securities: Redefining Investment Services with a Vision for Growth

As a subsidiary of the National Bank of Greece, NBG Securities has evolved into a top-tier brokerage firm, leveraging its expertise to deliver investment services in Greek and international markets. With a focus on its clients, ESG principles and innovation, the firm is contributing to the future of investment services in Greece and beyond.

Founded in 1988 as a subsidiary of the National Bank of Greece (NBG), NBG Securities has built an enduring reputation as one of the top leading firms in the financial sector. Supported by one of Greece’s most prominent financial groups, NBG Securities has established itself as a key player in the Greek capital markets, offering a comprehensive range of services to both institutional and retail clients.

Operating under the supervision of the Hellenic Capital Market Commission, NBG Securities is an active member of the Athens Exchange, the Cyprus Stock Exchange, and the Derivatives Market of the Hellenic Energy Exchange. The firm’s role as a market maker in the Stock and Derivatives Markets of the Athens Exchange reflects its commitment to providing liquidity and supporting seamless trading.

Through expertise and innovation, NBG Securities has become synonymous with reliability, precision, and client-centric service, contributing to its position as a trusted partner in Greece and international markets.

EQUITY RESEARCH: A UNIQUE OFFERING

A key pillar of NBG Securities’ success is its advanced equity research capabilities. A highly skilled team of analysts is committed to delivering actionable insights so that clients can make informed investment decisions.

The firm’s knowledge and experience of local markets allows it to provide in-depth analysis and market insights to its clients. By maintaining a transparent approach and leveraging cuttingedge technology platforms, NBG Securities offers clients an unparalleled level of service in research and market analysis.

The publication of high-quality equity research has not only bolstered its reputation in Greece but has also positioned the firm as a significant player in international markets, serving institutional clients across major exchanges.

ENABLING TRANSFORMATION THROUGH A THREEPILLAR APPROACH

NBG Securities has undergone a significant transformation in recent years, under the

"The attainment of Investment Grade status has been a pivotal milestone for Greece, reigniting investor confidence and attracting substantial capital inflows."

guidance of its new management. This transformation is based on a three-pillar approach focusing on client service, operational excellence, and personnel development.

Client service places the needs and expectations of clients at the forefront. By streamlining processes and enhancing efficiency, the firm has improved the client experience, ensuring that every interaction reflects its commitment towards excellence.

Operational excellence involves the adoption of innovative technologies and best practices to optimise internal operations. This has enabled the firm to deliver high quality and more efficient services.

Finally, personnel development focuses on cultivating a positive work environment while actively supporting employees’ professional

growth and skills advancement. By providing ongoing training and development opportunities, NBG Securities ensures that its team remains equipped to meet the challenges of an everevolving financial landscape.

A NEW ECONOMIC ERA IN GREECE

NBG Securities’ transformation coincides with a broader resurgence in Greece’s investment climate. The country’s macroeconomic stability, consistent fiscal outperformance, and improved credit ratings have created an appetite for investments in Greece.

The attainment of Investment Grade status has been a pivotal milestone for Greece, reigniting investor confidence and attracting substantial capital inflows. Recent flagship transactions have demonstrated strong demand for Greek assets, driven by increased stock market liquidity, resilient corporate earnings, and attractive dividend yields.

NBG Securities: Headquarters

For NBG Securities, these developments present a unique opportunity to expand its services and capitalise on the renewed interest in Greek markets. By leveraging its expertise and deep market knowledge, the firm is well-positioned to play a significant role in Greece’s economic resurgence.

COMMITMENT TO ESG: BUILDING A SUSTAINABLE FUTURE

Recognising the importance of sustainability in today’s investment landscape, NBG Securities has firmly embraced Environmental, Social, and Governance (ESG) principles. This commitment is not only a response to global trends but also a reflection of the firm’s belief in the importance of sustainable growth.

By integrating ESG standards into its operations, NBG Securities aims to contribute to a sustainable future, by embracing initiatives that have a positive impact on society and the environment.

INNOVATION AND TECHNOLOGY: THE PATH TO GROWTH

As part of its forward-looking approach, NBG Securities is harnessing the power of technology to drive growth. By adopting advanced digital tools and platforms, the firm is enhancing its capabilities in areas such as market research, trading, and market making.

The integration of technology has not only improved operational efficiency but has also enabled the firm to offer a wider range of products and services. From digitally enabled trading systems to market analysis, NBG Securities is leveraging innovation to elevate client experience.

A VISION FOR THE FUTURE

Looking ahead, the firm is exploring opportunities to expand its geographical footprint and diversify its product offerings, ensuring that it remains at the forefront of the brokerage industry.

NBG Securities aspires to be the broker of choice for investors seeking a reliable and trusted partner in both Greek and international markets. By combining its expertise with a commitment to innovation and sustainability, the firm is well-positioned to navigate the challenges and opportunities of the future.

As Greece continues to build on its economic momentum, NBG Securities stands ready to support its clients with world-class investment services and insights. With a focus on client satisfaction, operational excellence, and sustainable growth, the firm is part of the future of investment services in Greece and beyond. i

AI Strategies for Organisations — as Well as the Public Sector >

AI continues to be the hot topic in the world of tech...

Despite many high-profile uses and opportunities being reported, the adoption by large, complex organisations in the private and public sectors remains relatively low.

Whereas smaller, younger and potentially more nimble organisations have adopted AI relatively quickly; larger and more complex organisations must consider security, integration, adoption, safety and public opinion more closely.

Despite these concerns, it’s essential that large complex organisations in both public and private sector examine the best use of AI within their business or department. By deferring exploration, it’s likely organisations will be left behind in the fastest developing technology in today’s market. Codiance is an expert in the development and integration of systems and technologies for large organisations. It has completed a governmentfunded feasibility study into the use of thirdparty AI platforms within large security-conscious organisations. Many of those learnings have gone into this document.

THE MODELS

There are currently two key approaches to integrating AI. Within this paper, we will refer to these approaches as the “Power Station” and “Self-Power” models. Much the same as how power stations generate and supply electricity to millions of homes, a small number of AI companies are poised to supply AI capabilities to power millions of applications for organisations of every size.

The alternative approach is to build your own AI capabilities internally. Much as how businesses can opt for solar panels over reliance on the power grid, this is the self-powered approach. Both approaches have their advantages and disadvantages.

RETRIEVAL AUGMENTED GENERATION

Finally, we will look at innovative approaches to leveraging AI securely and with control, and how large organisations can limit their risk whilst leveraging the latest AI technologies. One of the key considerations in this area is the approach to Retrieval Augmented Generation (RAG).

THIRD-PARTY POWER STATION

Since the introduction of OpenAI’s ChatGPT in November 2022, there has been a reorientation in the AI strategies of private companies.

"The integration of third-party generative AI platforms into large organisations and public bodies is analogous to how power stations supply electricity to millions of homes."

Until this point, Meta and Alphabet released conversational AI-powered chatbots that allowed automation of conversations.

However, in 2022, OpenAI brought a new level of sophistication and simplicity, particularly with the introduction of several Application Programming Interfaces (APIs) including chatbots, customer support, and content generation. Since November 2022, both Meta and Alphabet have released tools with similar interfaces. With three large players in-market fighting for dominance, innovation is happening at a rapid pace. This competition is creating a fantastic marketplace for organisations wanting to leverage these services.

BENEFITS OF POWER STATIONS

Below are the key benefits to leveraging thirdparty AI providers.

Cost Efficiency

Developing proprietary AI models from scratch is resource-intensive. By leveraging existing thirdparty platforms, organisations can benefit from the extensive investments made by AI giants, reducing the need for substantial internal R&D expenditures.

Advanced Capabilities

Third-party AI platforms offer cutting-edge technology and continuous improvements, ensuring that organisations have access to the latest advancements in AI without the need to keep pace with rapid developments themselves.

Scalability

Similar to how electricity grids can scale to meet varying demands, AI platforms provide scalable solutions that can grow with the needs of the organisation, ensuring robust performance regardless of the scale of operations.

Challenges

Below are the key challenges and considerations when leveraging third-party AI providers.

Data Security and Privacy

Integrating third-party AI involves sharing data with external entities, raising concerns about data security and privacy. Ensuring that data is ringfenced and isolated from broader datasets is crucial to maintaining confidentiality and trust.

Compliance and Ethical Use

Organisations must ensure that AI integration complies with relevant regulations and ethical standards. This includes preventing misuse of AI and ensuring that AI outputs do not inadvertently cause harm or bias.

Reliability and Continuity

Just as power stations must ensure a continuous supply of electricity, AI platforms must provide reliable and uninterrupted service. This involves robust service level agreements (SLAs) and contingency plans to handle any disruptions.

SELF-POWERED AI MODEL

Until recently, creating in-house AI models was the de-facto approach. As examples, IBM created “Watson for Oncology” to assists in diagnosing and treating cancer, by analysing medical data and research. Smaller independent businesses such as Sift have also created fraud AI and ML

models designed specifically for fraud detection online. Creating proprietary models still has many advantages, however the Power Station approach introduces more considerations.

BENEFITS OF SELF-POWERED

Below are the key benefits to building your own AI Models.

Customisation

Developing proprietary AI models allows organisations to tailor solutions to their specific needs, ensuring a perfect fit for their unique requirements.

Control

Having full control over the AI model and data ensures that the organisation can maintain strict security protocols and make changes as needed without reliance on an external provider.

Innovation

Building in-house AI capabilities can drive innovation within the organization, fostering a culture of technological advancement and expertise.

CHALLENGES AND CONSIDERATIONS

Below are the key challenges and considerations when leveraging third-party AI providers.

High Initial Costs

Just as installing solar panels requires significant

upfront investment, developing proprietary AI models involves high initial costs in terms of hardware, software, and talent acquisition.

Maintenance and Upgrades

Continuous maintenance and regular upgrades are necessary to keep the AI models effective and up-to-date, which can be resource-draining.

Scalability Issues

Unlike third-party AI platforms that can easily scale, proprietary models might struggle to handle rapid increases in demand without significant additional investment.

Emergent Capabilities

One of the most exciting and concerning elements of third-party AI models is their emerging capabilities. These are capabilities that AI models develop on a subject without being explicitly trained on that subject. Emergent capabilities are possible with both Power Station and Self-Powered approaches. However, due to the broader and more general training Power Station models receive, emergent capabilities are far more likely here.

One well-reported example in an early version of ChatGPT is arithmetic reasoning. ChatGPT was not trained to perform calculations, however it learnt to understand numerical patterns in language, which allowed it to carry out

calculations without ever being trained in such areas.

Emergent capabilities potentially introduce several unknowns that large complex organisations and public bodies need to consider. This is why building a Retrieval Augmented Generation (RAG) approach to leveraging thirdparty AI tools could be considered an essential tool for large organisations and public bodies.

CONCLUSION

The integration of third-party generative AI platforms into large organisations and public bodies is analogous to how power stations supply electricity to millions of homes. By strategically leveraging these AI "power stations", organisations can enhance their capabilities, achieve cost efficiencies, and maintain robust, scalable operations. Ensuring secure and ethical integration through approaches like RAG, while also focusing on proprietary innovations, will be crucial in maximizing the benefits of AI and driving future growth.

Comparatively, developing proprietary AI models is like installing solar panels on rooftops — offering customisation and control but requiring significant investment and maintenance. By understanding the advantages and challenges of both approaches, organisations can make informed decisions on how to best integrate AI into their operations. i

Classic Cars: Timeless Investments or Endangered Relics on Road to Ruin?

With increasing environmental rules and a global shift towards EVs, the future of antique vehicles is under a cloud.

An E-Type Jag or an old “Roller” have such charm that their value has way overshot their original price tags — if you can even find one for sale. But their worth as investments is increasingly dubious.

Are these vintage beauties destined to increase in value, or will pollution restrictions and ecological ideals force them off the road? What does the future might hold for enthusiasts and collectors?

Classic cars and motorcycles have always had a special place in the hearts of petrolheads, collectors, and aficionados. From the smooth contours of a 1960s Jaguar to the muscle of a Ford Mustang, these are more than vehicles. They are style, engineering brilliance, and nostalgia in the metal. Owning such a vehicle has long been a dream for many, a passion project — and a sound investment.

But with a rising tide of regulation lapping at their spoked wheels, and the global push for sustainable transport alternatives, the future of antique vehicles as investments is increasingly being questioned.

Could environmental concerns render them obsolete before they can be resold? That very much depends on incoming legislation, and varies from country-to-country.

THE INVESTMENT APPEAL

The market for older vehicles has traditionally been strong, with some models appreciating enormously in value. In many ways, these old beauties are analogous to fine art or rare wines: rare, coveted, and getting better with age — as long as they are properly kept and maintained.

Dwindling numbers, brand prestige, and historical relevance all theoretically add to the vehicles' long-term worth. Several factors are at play. By definition, classic vehicles are no longer in production, which means limited availability. Rare models, particularly those from manufacturers like Ferrari, Porsche, Ducati, MV Agusta and Aston Martin are highly sought after. As they become more difficult to find, particularly in good condition, their value often

"Classic cars and motorcycles have always had

a special place in the hearts of petrolheads, collectors, and aficionados."

rises. In 2018, a 1962 Ferrari 250 GTO sold for a record-breaking $70m. Comprehensive insurance costs must have been impressive, too.

Such sales demonstrate the ongoing demand for rare and well-preserved automobiles. They are reflections of a bygone age, objects of fantasy and desire. Many collectors are motivated by pure nostalgia, whether to acquire the same model they owned as teens, or the thrill of blasting through the manual box to the soundtrack of a free-breathing muffler. This emotional factor is huge.

Unlike typical investments in stocks, shares or bonds, classic vehicles provide sensory delight. They can be driven, shown off at events, or simply appreciated for their loveliness. This makes them more enticing to investors who value financial returns and personal delight.

MARKET STABILITY

While values vary, often in tune with wider economic situations, the market has so far remained resilient. Well-chosen classics have produced strong long-term returns, often outperforming traditional assets. Certain indexes that assess the performance of noteworthy cars, such as the Historic Automobile Group Index (HAGI), have steadily increased over the past two decades.

POLLUTION REGULATIONS

While the financial case for historic automobiles appears appealing, a new reality is emerging: a world moving away from fossil fuels. Governments around the world are passing stronger environmental restrictions and establishing ambitious carbon reduction targets.

The EU has vowed to ban the sale of new petroland diesel-engined vehicles by 2035, while cities such as London and Paris have implemented low-emission zones that limit access to older, more polluting vehicles. These trends directly threaten the future viability of classic cars.

Environmental standards are worth considering in the context of owning that dream car. It’s certain to be less fuel efficient than newer models, and it will emit more pollutants with that satisfying exhaust burble. Several cities and countries have imposed restrictions that either tax, limit, or completely prohibit the use of high-emission vehicles in urban areas. Germany's Umweltzone system restricts entry to specific locations based on individual emissions ratings, which may have an influence on vintage car owners who want to drive their vehicles on a regular basis.

These limits raise questions about the long-term feasibility of owning a historic vehicle. As cities throughout the world grow less welcoming to old bangers, no matter how classy, will owners be forced to store them as little more than works of mechanical art?

THE GROWTH OF ELECTRIC VEHICLES

The growing use of EVs is changing the car world, too. Governments offer incentives to encourage their use, and major manufacturers are increasing turning to electricity as the main power source. This contrasts sharply with the old-world appeal of classic cars and bikes, raising doubts about whether future generations will desire, or be allowed to possess, fossil-fuelpowered vehicles.

There’s an increasing trend of converting historical vehicles to electric power, though — which could be a win-win situation. Firms such as the UK’s Lunaz, specialise in retrofitting classics with electric drivetrains. This allows owners to keep their cars on the road, but it can be an expensive upgrade — and purists see it as diminishing the vehicle's authenticity.

SUSTAINABILITY TRENDS IN INVESTING

Beyond legislation, there is a broader societal trend towards sustainable investing: ESG standards define portfolios' ethical and environmental status. As this gathers traction, will antique automobiles, gorgeous but polluting

relics of the past, lose favour with the next generation of investors? The answer is unknown, but the increased emphasis on sustainability may influence appeal and value of the market.

THE FUTURE OF CLASSICS

Despite the obstacles posed by pollution regulations and the rise of EVs, many experts feel that classic cars will retain their allure — but the nature of demand may well change.

As limitations tighten, historical cars' value may shift from utility to simple collectability. Investors may buy them not to drive them, but to keep, show, and trade them like art or antiques. This may preserve their value as alternative investments, even if they are no longer suitable for the daily commute.

EMERGING MARKETS AND GLOBAL APPEAL

There is rising demand from some emerging markets. As affluence grows in Asia and the Middle East, new customers enter the market for luxury products — including classic cars and motorcycles. This infusion of new collectors could even raise demand for iconic vehicles.

TECHNOLOGICAL SOLUTIONS

Technology might come to the rescue of the gas-guzzlers. Electric conversions, advances in biofuels or synthetic fuels may allow older cars to meet emissions targets. While still in their early stages, these innovations provide a potential pathway for antique cars to stay on the road in a carbon-neutral future.

COMPLICATED, BUT PROMISING

Classic cars fill a distinct niche at the crossroads of history, culture, and finance. They are nostalgic treasures and — possibly — profitable investments. But there is definitely pressure on the market. While old cars may still provide good returns for astute investors, they may be relegated to stationary status.

For the time being, the market is strong, but it is vulnerable to changing rules and trends. Those who invest must balance their devotion with pragmatism.

Will historical vehicles become nothing more than museum exhibits, or will they ride on? Only time will tell. i

Hidden Hazards: Identifying Chemical Oddities in That ‘Evil’ Processed Food

What’s hiding in mass-produced, everyday food products? Easy-accessnourishment,plusartificialcolours,questionable additives,andsomeunidentifiedpollutants…

Take stroll down any grocery aisle, and you'll see a colourful array of packaged foods that promise convenience and a blast of flavour.

But behind the seductive labels and mouthwatering visuals lie some less appetising things: chemical pollutants that may endanger your health. Making meals more accessible and shelfstable has come at a cost — often to your health.

Processed foods have become a modern staple in our busy lives; we need quick, simple meals. These foods go through multiple manufacturing processes, from canning, freezing and drying to the addition of preservatives and flavourenhancers. And the chemicals in question aren’t always harmless.

SHELF-LIFE

Butylated hydroxytoluene (BHT) and butylated hydroxyanisole (BHA): those mean anything to you? Thought not. They’re common compounds that keep oils in the food from going rancid — and research seems to show that they can be endocrine disruptors and, at high dosages, carcinogens.

Sodium nitrite and nitrate are used in many processed meats to retain (or add) colour, and inhibit the development of bacteria. They can produce nitrosamines in the body — connected to an elevated risk of some malignancies

NOT LIKE MAMA’S COOKING

Tartrazine (aka Yellow No. 5) and Allura Red (Red No. 40) are synthetic colourings. Studies have linked them to hyperactivity in youngsters, and allergic reactions in some. Monosodium glutamate, our old friend MSG: this flavour enhancer can produce headaches and flushes in those of a sensitive disposition.

Carrageenan is a seaweed-derived thickening agent used in dairy and non-dairy products. Sounds promising, but again, some studies denounce it and say it can lead to gastrointestinal inflammation.

Polysorbate 80 is an emulsifier that may upset gut micro-organisms and cause inflammation.

"Carcinogens are obviously undesirable — and remarkably common. Long-term exposure, even at low levels, is a no-no."

IT'S

ALL IN THE PRESENTATION

Bisphenol A (BPA) is found in the lining of canned goods and in plastic packaging. BPA is a known endocrine disruptor associated with reproductive disorders. And yes, cancer. Phthalates make polymers flexible, but also seep into food and cause hormone disorders.

Lead, mercury, and arsenic can contaminate foods via soil, water, and industrial processes. Even low exposure can have long-term effects on neurological development and increase the risk of cancer.

HEALTH IMPLICATIONS

Many chemical additives are endocrine disruptors, i.e. they interfere with hormone function. This can cause reproductive issues, developmental problems in children, and an increased risk of hormone-related malignancies such as breast and prostate cancer.

Carcinogens are obviously undesirable — and remarkably common. Long-term exposure, even at low levels, is a no-no. Nitrosamines, which are generated from nitrites in processed meats, are proven carcinogens. Bacon roll, anyone?

NEUROLOGICAL EFFECTS

Heavy metals such as lead and mercury build up in the body, causing neurological damage. Children are particularly vulnerable; exposure has been related to developmental delays and cognitive impairment.

Artificial colours and flavour enhancers can cause allergic responses; symptoms include hives, asthma, and digestive discomfort. Emulsifiers can alter gut flora, causing intestinal permeability, sometimes known as "leaky gut", which is pretty much what it sounds like.

REGULATORY OVERSIGHT?

While institutions such as America’s Food and Drug Administration monitor additives, many contend that oversight and regulation are insufficient. The “Generally Recognised as Safe” (GRAS) list ostensibly determines which additives are safe, that can’t be ensured without thorough, and independent, testing. Regulatory standards fail to account for total exposure from various sources over the average lifetime.

Manufacturers claim additives are necessary for safety and consumer satisfaction. Hmm. Preservatives do prevent foodborne illnesses, and other additives enhance flavour and

appearance. But are additives, even in proportions recommended by regulatory authorities, really “safe” safe?

ADVOCACY AND TRANSPARENCY

Growing awareness of these issues has resulted in customer demand for more clarity. Clear-labelling campaigns and calls for the eradication of some compounds have gained traction. Advocacy groups demand stronger additive laws and greater labelling transparency. Proposed legislation seeks to fix loopholes in the GRAS system and promote more stringent testing before chemicals are licensed. Some corporations already have responded by removing “contentious” substances.

HEAL THYSELF

Read labels carefully and refer to ingredient lists: shorter is better. Avoid any substances that you can’t pronounce, or don’t recognise. Look for labels like "organic" or "non-GMO verified". Choose whole foods where possible: fresh fruits and vegetables, grains, lean protein. And fruit and veges well to remove pesticides. Cook at home whenever possible, and support “clean” brands that prioritise transparency and quality ingredients. Keep tabs on credible sources of information about food safety. Preservatives made from herbs, spices, and fermentation processes are increasingly popular. Biodegradable packaging and non-reactive materials can lessen contamination issues.

GLOBAL PERSPECTIVE

Different countries have different rules on additives. Certain dyes and preservatives prohibited in the EU are authorised in the US. This emphasises the need for worldwide safety standards. While not all additives are dangerous, the cumulative effect of chemicals ingested over time is an issue that should not be overlooked.

Consumers can help themselves, and influence the industry, by making informed decisions and pushing for tougher laws. Go beyond the large type on labels, and investigate what's in that packet of convenient deliciousness. If we are what we eat — eat well! i

Space Exploration: Should We Keep Reaching for The Stars?

Humans have always looked up at the night sky, pondered, pontificated,andwondered.Shouldwehaveleftitthere?

The cosmos has forever beckoned us, physically or philosophically. In recent decades, the former has taken precedence, and space has become a playground for ultra-wealthy tourists and treasure hunters.

But are the scientific advances and ego boosts worth the environmental and financial costs? Why seek answers above the Karman Line when there are so many mysteries and problems to be solved here on Earth?

The most obvious answer is what killed the cat: Curiosity. But scientists argue that there are vitally important discoveries yet to be made that may affect our long-term survival, progress, and even economic growth.

A GIANT STEP

Earth is a beautiful, delicate, intricately balanced blue spot in the vast universe: unique, in the true sense of the word. There’s only one, and we aren’t doing a very good job of looking after it. Climate change, the depletion of natural resources and the possibility of natural or man-made cataclysms prompt those of a rocket-propelled mentality to explore beyond our earthly bounds for solutions.

Colonising distant planets and building space settlements may still be science fiction, but growing survival needs are driving drastic advances. Planetary settlements beyond Earth could perhaps serve as safe havens, should worse go to worst.

While it remains unfeasible in 2024, keep in mind that many major human achievements were once thought to be so. The Wright brothers were mocked for their dream of human flight, yet aviation is now an everyday reality. Space colonisation may be decades away, but investing in its exploration could create a framework for what may one day become a dire need.

There are, of course far-reaching consequences to this quest. Some are positive: technology benefits modern living in a variety of ways, from satellite communications to medical device developments. The Apollo programmes produced new materials, increased processing

"The rise of commercial space enterprises such as SpaceX, Blue Origin and others has changed the scene, bringing competition and innovation into the sphere."

capacity, and brought breakthroughs such as CAT scans and water-purification systems.

The study of distant planets and moons may provide insights into climate systems, geological formations, and the possible discovery of extraterrestrial life. Such things would transform our understanding of biology, chemistry and physics, with potential applications for everything from agriculture to medicine.

ECONOMIC OPPORTUNITIES

The rise of commercial space enterprises such as SpaceX, Blue Origin and others has changed the scene, bringing competition and innovation into the sphere. This emerging economy has immediate use in satellite services, space tourism, and the potential for resource extraction from asteroids.

Precious metals and minerals from those celestial bodies might revolutionise Earth's industry, create jobs, boost economies (postlift-off expenses and mission costs), and lessen our demands on natural resources here.

But there are dire costs to parts of our world that we look at, but fail to consider. Our atmosphere, for a start, which is subject to devastating onslaughts each time a Space X rocket blasts through the stratosphere and ozone layer. Philosophical ones, too: is it right to, for example, mine the Moon?

INSPIRE A NEW GENERATION

Don’t worry about that, say the Elon Musks of the world. These missions tell us that we are a part of something bigger than ourselves, that our potential is limitless. In an era dominated by division and short-term thinking, it’s not surprising that space exploration is seen as a

force for “bringing humanity together”. And turning a profit at the same time.

The challenges of the 21st Century certainly require unusual solutions, and space exploration takes a daring — some may say foolhardy — approach to problem-solving. It does promote STEM careers, but critics point out that instead

of investing billions of dollars on space missions, we should use our resources to solve more earthly problems. This is a valid criticism, but the two need not be mutually exclusive, according to the pro-rocket contingent.

Satellites can be used to monitor climate change, forecast natural disasters, and manage resources.

They could bring advances in renewable energy, sustainable farming practices, and water conservation. “Could.”

IS THE FUTURE OUT THERE?

By continuing to study the universe, we may make technological and scientific discoveries and inspire future generations. We may also take their

focus away from where it should be: on conserving the beautiful, delicate planet we have been gifted.

The last frontier, for many, holds promise. For others, it is a gigantic waste of money, time, and expertise — which would, and could, be better spent addressing the many technological errors humans have made right here on Earth. i

Enduring Legacy of Orwell: Messages that Resonate Still

George Orwell, born Eric Arthur Blair in 1903, was to become one of the century's most important writers for his critiques of totalitarianism, social injustice, and the erosion of individual liberties.

His books — notably “1984” and “Animal Farm” — and a slew of essays continue to be cited in debates of political and social issues. His ability to break down complicated issues and put them in a fascinating narrative has made his work ageless. As we face the difficulties of the twenty-first century, Orwell's warnings about the perils of unrestrained authority, propaganda, and the erosion of reality remain as relevant as ever.

Orwell's work is extensive, spanning topics ranging from authoritarianism and imperialism to working-class conflicts and language manipulations. His best-known works are dystopian novels that criticise totalitarian regimes. However, his essays and lesser-known volumes, such as “Homage to Catalonia” and “The Road to Wigan Pier”, provide equally compelling insights into the human condition.

Orwell's work is notable for its clarity, directness, and moral integrity. He thought that the primary goal of writing was to expose lies, challenge power, and promote the truth. This concept informs his most famous works, which are forceful critiques of authoritarian systems, and the tactics used to subjugate populations.

THREAT OF TOTALITARIANISM

One of Orwell's most enduring lessons is about the dangers of tyranny. 1984, written in 1949, is probably the best-known literary examination of this theme. The story takes place in a dystopian future in which the world is divided into three superstates, each commanded by a totalitarian ruler. The plot revolves around Winston Smith, a low-ranking Party member in Oceania who secretly despises the dictatorship and dreams of rebellion.

The world of 1984 is one of constant surveillance, with the government, led by the enigmatic Big Brother, wielding absolute power over all aspects of existence. To maintain control, the Party manipulates truth and rewrites history, while individual opinion is prosecuted as "thoughtcrime". The novel's horrifying depiction of a society in which the government controls not just acts but even thoughts, and the truth is whatever the Party says it is, serves as a striking warning against the dangers of unfettered political authority.

The development of fascism and communism in the early 20th Century, particularly the governments of Nazi Germany and the Soviet Union, impacted Orwell's vision of a totalitarian society. The novel's themes have become increasingly pertinent in the passing years.

The concept of "Big Brother" has become a metaphor for the surveillance state in the digital age. Governments around the world have increased surveillance capabilities, often in the name of security, raising worries about privacy and civil liberties.

The concept of "doublethink," or the ability to maintain two conflicting views at the same time, is becoming increasingly relevant in a society filled with misinformation and "alternative facts". In Orwell's dystopia, the erosion of truth and the manipulation of information are critical to the maintenance of power, and these themes remain key challenges in today's political context.

THE POWER OF PROPAGANDA

Another important issue in Orwell's writing is the power of language and propaganda. In 1984, the Party employs language as a tool of control, most notably by inventing "Newspeak", a language designed to eradicate the possibility of rebellious thought. By gradually lowering the quantity of words in the language, the Party hopes to make it difficult for people to even consider resistance.

This concept exemplifies Orwell's significant concern about how language might be exploited to benefit those in power.

His essay “Politics and the English Language” delves into the relationship between language and political manipulation. Orwell criticises the deterioration of language, claiming that ambiguous, complicated, and euphemistic language is often employed to conceal the truth and fool the audience. Political language, especially, is intended to make lies sound honest, murder respectable, and to give the appearance of solidity to wind.

Orwell's observations concerning language manipulation are especially pertinent in this age of social media, as language is frequently manipulated to distort reality, propagate propaganda, and polarise society. The rise of "fake news," the deliberate distribution of misinformation, and the use of euphemisms to downplay serious situations are all examples of the dangers Orwell warned of. In an era where soundbites and slogans dominate

public discourse, Orwell's plea for clear, honest language is more crucial than ever.

CRITIQUE OF IMPERIALISM

Orwell's experiences as a colonial officer in Burma, which he wrote about in articles like “Shooting an Elephant”, had a significant impact on his views on imperialism. He came to see the British Empire not as a civilising force, but as an oppressive system that dehumanised both colonisers and colonised. This viewpoint is reflected in his later works, where he frequently criticises the moral and ethical arguments for imperialism.

In “Burmese Days”, Orwell delivers a harsh analysis of British colonial culture in the country now known as Myanmar, revealing the racism, hypocrisy, and moral corruption that support imperial control. The novel depicts British colonisers as petty, self-serving individuals who participate in a system that degrades and exploits the native inhabitants. Orwell's critique extends beyond a condemnation of British authority to any system of power that dehumanises and exploits others.

Orwell's observations on imperialism are still pertinent today as we battle with colonial legacies and the long-term consequences of imperialist practices. His work encourages us to evaluate how power and privilege continue to impact global relations, as well as the ethical consequences of our activities on the world stage.

STRUGGLE FOR SOCIAL JUSTICE

Orwell was also intensely concerned about social justice and the misery of the working class. “The

Road to Wigan Pier” is a graphic description of the brutal conditions endured by coal miners in northern England. It is both a stunning piece of social reporting and a passionate call to action. Orwell's images of poverty, squalor, and the physical toll of labour are chilling, and his critique of the social and economic structures that perpetuate these situations is astute.

Orwell's socialist ideas shine through his writing, but he was also critical of the Left, particularly in the British elite, whom he considered as disconnected from reality. He argues that socialism must be based on ordinary people's experiences and conflicts, rather than abstract ideas or middle-class ideals.

Orwell's work frequently emphasises the daily experiences of the working class. In “Down and Out in Paris and London”, he describes his personal experiences with poverty, including living as a vagabond and working in menial jobs. The book offers a profound investigation of the poor's indignities and hardships, as well as a critique of the societal systems that keep them in poverty.

Orwell's commitment to social justice and conviction in the dignity of all individuals are relevant today. His approach emphasises empathy, solidarity, and the need to address the underlying causes of injustice. In a world when economic inequities are rising and social safety nets are fraying, Orwell's message on the importance of social fairness is as relevant as ever.

ROLE OF THE INTELLECTUAL

Orwell was an academic, but he was frequently

critical of his peers. He believed that intellectuals had a responsibility to speak truth to power and interact with the world in meaningful ways.

In “Homage to Catalonia”, Orwell describes his experiences fighting in the Spanish Civil War, where he saw at first-hand the violence and confusion of conflict. His choice to fight in Spain was motivated by a strong belief in democratic and anti-fascist ideas, but he became disillusioned by the Republican side's factionalism and betrayals. This event reinforced his conviction that intellectuals must be willing to take risks and make sacrifices in the pursuit of justice, rather than simply engaging in abstract disputes from the comfort of their study.

Orwell's indictment of academics is especially pertinent in an age when public conversation is frequently controlled by pundits and commentators who are more concerned with winning points than with solving the genuine issues confronting society. His work encourages us to think critically about the role of the intellectual and how we may apply our knowledge and talents to make a positive change in the world.

ORWELL'S ENDURING RELEVANCE

Orwell's messages address fundamental questions of power, truth, and justice. In a world when authoritarianism is on the increase, propaganda and misinformation are used to sway public opinion, and economic disparity is increasing, they retain relevance.

Orwell's ability to predict the perils of dictatorship and the manipulation of truth

established him as a prophetic voice in modern literature. His work calls us to be vigilant in the face of authority, to question the narratives we are fed, and to struggle for a society that values truth, justice, and human dignity.

The author's focus on the power of language and the importance of clear, honest communication is becoming more pertinent in a world dominated by soundbites, slogans, and misinformation. His work emphasises the value of critical thinking, challenging the information we get, and the role language has in forming our perspective of the world.

Orwell's dedication to social justice and belief in the dignity of all individuals continues to inspire those who strive for a more equitable and just society. His work challenges us to address the disparities and injustices in our own societies, and to struggle for a world in which everyone has the right to live with dignity and respect.

George Orwell's work is still a potent and relevant influence in modern life. His insights regarding the dangers of authoritarianism, linguistic manipulation, imperialism critique, the battle for social justice, and the role of the intellectual are still relevant to readers today.

His words are more than just remnants of a bygone age; they are timeless truths that encourage us to think critically about the world in which we live, and strive for a society with honourable values.

Orwell's work offers a reminder of the vital importance of vigilance, honesty, and the lasting power of the written word. i

Poundland's Pounding Headache: Can the Discount Retailer Survive the Cost-of-Living Crisis?

Once the darling of the British high street, Poundland is now grappling with the stark realities of a changing retail landscape. Once synonymous with unbeatable value and thrumming aisles of bargain-hunting enthusiasm, the chain faces mounting pressures from inflation, shifting consumer habits, and relentless competition. Can Poundland, the poster child of recession resilience, navigate this turbulent era and emerge stronger, or is it destined to join the ranks of highstreet casualties?

THE RISE OF A RETAIL ICON

Founded in Burton-upon-Trent in 1990, Poundland struck a chord with British consumers reeling from economic recession. Its simple yet revolutionary promise—everything for £1— created a shopping phenomenon. From household essentials to surprising gems, the brand quickly became a cornerstone of value shopping, rapidly expanding across the UK and beyond.

For years, Poundland thrived on its clarity of purpose and appeal to budget-conscious shoppers. But retail, like the economy itself, is subject to cycles. As consumer habits evolved and competitive pressures mounted, the chain’s reliance on its rigid pricing model began to falter.

THE PERFECT STORM OF CHALLENGES

Poundland’s struggles are the result of a confluence of forces that have reshaped the retail landscape:

Inflation and the "£1" Identity Crisis

At the core of Poundland’s identity is its £1 price point—a promise that once captured the imagination of thrifty shoppers. However, with inflation driving up the cost of goods, maintaining this price point has become nearly impossible. The company’s introduction of multi-price ranges may have been a pragmatic move, but it risks alienating loyal customers drawn to the simplicity of its original model. The shift muddles Poundland’s brand identity, making it harder to stand out in a crowded discount retail sector.

The E-Commerce Explosion

The rise of online shopping has dramatically altered consumer behaviour. E-commerce giants like Amazon offer unparalleled convenience, vast product selections, and doorstep delivery— areas where Poundland’s predominantly physical presence falls short. Although the chain has made some forays into online retail, it remains an area where it lags behind competitors.

Discount Supermarkets and High-Street Rivals

Chains like Aldi and Lidl have revolutionised value retailing, particularly in groceries, with their efficient operations, fresh offerings, and strong private-label lines. Meanwhile, competitors like B&M and Home Bargains have upped their game, offering broader product ranges and more attractive store environments. Even traditional supermarkets, from Tesco to Sainsbury’s, have introduced competitive "pound lines," encroaching on what was once Poundland’s territory.

Consumer Confidence and Changing Priorities

The cost-of-living crisis has forced consumers to scrutinise their spending habits more closely. While Poundland historically benefited from economic downturns, its reliance on nonessential, low-margin goods has left it vulnerable to shoppers prioritising staples or seeking perceived value elsewhere.

POUNDLAND’S COUNTEROFFENSIVE

Faced with these pressures, Poundland has launched several initiatives to counteract its decline:

• Modernising Stores: Significant investment has gone into store refurbishments, aiming to create a brighter, more inviting shopping environment.

• Expanded Offerings: The chain has diversified its range to include higher-ticket items like clothing, home goods, and branded groceries, targeting a broader customer base.

• Operational Streamlining: Poundland has closed underperforming stores and sought efficiencies in supply chain management to offset rising costs.

• New Market Strategies: Expanding geographically and targeting different demographics are key elements of the company’s strategy to reignite growth.

While these efforts signal a willingness to adapt, they also highlight a fundamental tension. Introducing higher-priced goods may boost profitability but risks alienating its core customer base, while investments in modernisation and expansion strain financial resources.

THE ROAD AHEAD: SCENARIOS FOR SURVIVAL OR DECLINE

The future of Poundland hinges on its ability to redefine its value proposition and innovate within a fiercely competitive market. Several potential scenarios could play out:

Scenario 1: Reinvention and Recovery

Poundland could fully embrace a hybrid model, blending its heritage of affordability with modern retail practices. A stronger online presence, combined with a curated product mix and improved in-store experiences, could reposition it as a leader in the discount space. By focusing on operational excellence and customer loyalty, the chain could regain its footing and expand its appeal to a new generation of shoppers.

Scenario 2: Managed Decline

If Poundland fails to regain its competitive edge, it could settle into a diminished role, maintaining profitability through cost-cutting

but losing its cultural relevance. This path would likely involve further store closures and a retreat from high-profile markets.

Scenario 3: Exit or Acquisition

The worst-case scenario sees Poundland failing to adapt, leading to its eventual exit or acquisition by a rival. The brand’s remaining assets and market share could prove attractive to competitors, but it would mark the end of an era for one of the UK’s most recognisable retailers.

LESSONS FROM THE HIGH STREET

Poundland’s plight is emblematic of broader

challenges facing brick-and-mortar retail in an age of e-commerce dominance and shifting consumer expectations. Survival demands agility, innovation, and a willingness to take risks. Yet, as history shows, even the most iconic brands can falter if they fail to evolve.

Retail analyst Richard Hyman offers a pointed perspective: "Poundland’s strength was always its simplicity. The challenge now is to adapt without losing what made it special. That’s easier said than done."

A CAUTIONARY TALE IN RETAIL REINVENTION

Poundland’s journey from high-street hero

to embattled underdog underscores the relentless nature of retail. Its fate will depend on its ability to balance tradition with innovation, recognising that even the most enduring value propositions must evolve to remain relevant.

For now, Poundland’s fluorescent lights still burn brightly, casting their glow over aisles of discounted goods. But whether those lights signal resilience or the twilight of a retail giant remains to be seen. The company’s next moves will not only determine its future but also offer a valuable case study in the art and challenge of retail reinvention. i

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A JUUL of an Idea… That May Have Got Most of it Wrong

Vapingisbigbusiness,andfewcompanieshaveseen the spectacular growth — and subsequent decline — asJUULLabs.

In just a few years after its 2015 launch, JUUL took a sizable chunk of the “e-cig” market. The company gave adult smokers an alternative to cigarettes with its elegant design and cutting-edge technology, revolutionising the nicotine experience.

JUUL was a ground-breaking invention, but a number of problems that obscured its early success resulted from its mistakes in marketing, navigating regulations, and public perception.

JUUL's product was in some ways a technological miracle. Along with Adam Bowen, a Stanford design graduate, James Monsees co-founded the company with the goal of developing a device that would provide a satisfactory alternative to smoking without the harshness and complexity of previous vaping solutions. They prioritised user experience, portability, and simplicity.

The end product was a slim, USB-like device that ran on nicotine salts instead of the free-base nicotine present in the majority of e-cigarettes. Thanks to this invention, you could have larger nicotine concentrations without getting that irritating feeling in your throat, just like you would with regular cigarettes. Because it had no controls or settings and replacement pods, the device was simple to use, making it available to a large number of adult smokers looking for an alternative.

GETTING THE MARKET

JUUL experienced an extremely impressive rise. As of 2017, it held around one-third of the US e-cigarette market share. Due to the company's skyrocketing price, major partnerships and investment were drawn in. Adult users commended JUUL for assisting them in cutting back on or giving up traditional smoking, and the company's increasing sales figures demonstrated this.

The success of the product was largely due to its design and efficacy. In a congested market of large, complex devices, JUUL offered a discrete and effective nicotine delivery mechanism. Customers who appreciated both form and function were drawn to the emphasis on design and user experience.

"JUUL's marketing has drawn criticism for allegedly blurring the lines between appealing to adult smokers and introducing a younger generation to nicotine addiction. The term "JUULing" became popular among teens, and schools reported an increase in the number of vaping students."

MARKETING MISTAKES

JUUL had a better product, but its marketing strategy ended up being its downfall. The business started aggressive advertising initiatives that catered to a younger audience as well as older smokers. Trendy models, vibrant photography, and a robust social media presence cultivated an appealing brand image among teenagers and young adults.

JUUL's marketing has drawn criticism for allegedly blurring the lines between appealing to adult smokers and introducing a younger generation to nicotine addiction. The term "JUULing" became popular among teens, and schools reported an increase in the number of vaping students. Public health professionals, parents, and educators quickly voiced their concerns about the growing youth vaping pandemic.

REGULATORY DIFFICULTIES

A lack of planning in negotiating the complicated regulatory landscape surrounding tobacco and nicotine products contributed to JUUL's problems. The US Food and Drug Administration (FDA) started to closely monitor e-cigarette manufacturers, and JUUL was at the centre of its focus.

JUUL responded to growing pressure by limiting young people's access to its products. The business deleted its social media pages and stopped selling some flavoured pods in retail establishments. But for many, these measures were too little, too late. JUUL was the target of

several lawsuits claiming it was a contributing factor to the increase in under-age vaping, and the FDA and other regulatory agencies persisted in enforcing limits.

EROSION OF PUBLIC TRUST

The public's trust was severely damaged as a result of both governmental scrutiny and aggressive marketing. Once seen as a disruptive pioneer, JUUL has since come to represent corporate irresponsibility. The storyline changed from JUUL being a cure-all for adult smokers to JUUL being the cause of a teenage public health emergency.

The unfavourable impression was reinforced by

media coverage that featured tales of teenage nicotine addiction and health risks related to vaping. The damage to JUUL's reputation was done, even though many of these health problems were later connected to illegal vaping goods that contained THC and vitamin E acetate.

STRATEGIC SETBACKS

The way JUUL's leadership handled the crisis drew criticism. A number of executive changes were made at the corporation, and in 2019 CEO Kevin Burns resigned. Although internal disputes and strategy misalignments impeded efforts to move the corporation onto a more responsible course, new leadership made an effort.

Global expansion attempts also encountered obstacles. Foreign markets presented unique regulatory obstacles, and JUUL found it difficult to duplicate its early success outside. When the corporation struggled with concurrent legal battles, regulatory compliance concerns, and public relations disasters, it became apparent that they lacked a cohesive long-term strategy.

FINANCIAL CONSEQUENCES

These mistakes added up to have serious financial ramifications. Following the announcement of layoffs and cost-cutting measures, JUUL's worth fell. Altria Group paid down a sizeable amount of its $12.8bn investment, which gave them a 35 percent interest in JUUL in 2018.

Investors became more cautious as the likelihood of a turnaround decreased. Legal ramifications and unclear regulatory outlooks outweighed the original promise of substantial rewards. JUUL's failure to foresee and address these risks brought to light weaknesses in its risk management and corporate governance procedures.

KNOWLEDGE ACQUIRED

The path taken by JUUL provides important insights for companies in regulated sectors. First and foremost, success cannot be ensured by superior products alone. Businesses need to carefully and morally traverse the regulatory environment, foreseeing possible hazards and making the necessary adjustments. i

The Dresden Bombings: A Justified Act or a War Crime by Churchill?

The Allied bombing of Dresden in February 1945 is one of the most contentious incidents of World War II.

The horrific fire-bombings of the German city of Dresden, known more for its pottery than its strategic value during World War II, killed tens of thousands of innocent civilians — and continues to generate serious moral concerns.

Was there a valid reason for this deadly strike, or was it an unforgivable atrocity? And what does it signify for Winston Churchill's status as a wartime hero?

On the night of February 13, 1945, Dresden, once renowned as "Florence on the Elbe" for its exquisite architecture and cultural heritage, was devastated by one of history's most destructive air strikes. Over three days, waves of British and American bombers dumped thousands of tonnes of incendiary devices and high explosives on the city, reducing it to rubble and killing an estimated 25,000 to 35,000 people — some put the figure higher — many of whom burned to death.

The event, just months before the conclusion of the war, sparked heated debate that still rages in the 2020s. Some saw the strike as an initiative that brought Nazi Germany to its knees. Others saw — and see — it as an outrageous act of brutality, a slaughter of innocents who had played no real part in the war.

At the centre of this lies a challenging question: Was there any reason for the deadly campaign, and, if not, should Britain's wartime leader, the cigar-chomping Churchill, take responsibility for it?

THE STRATEGIC CONTEXT

The historical facts, as far as they can be established, must be placed within the larger geopolitical framework of the war. In February 1945, Nazi Germany was on the road to defeat. The Soviet army was advancing from the east, having crossed into the country while Allied forces pushed from the west following the D-Day landings in Normandy. Dresden, in eastern Germany, had mostly escaped the bombardments that had devastated other cities such as Hamburg, Cologne and Berlin.

Dresden, while famous for its cultural significance, was, say wartime experts, an industrial and

"The answer may depend on individual and national perceptions of leadership's broader obligations in times of crisis."

transport powerhouse. It served as a crucial railway junction, connecting the Eastern Front to the Reich's centre. It hosted firms that allegedly manufactured military equipment, including aeroplane parts. For the Allies, the bombing was part of the campaign to disrupt German logistics, impair its weapons capacity, and hasten the war's end.

Critics point out that by February, Germany's loss was almost certain. With its army in disarray and its cities in ruins, the Third Reich's ability to wage war was dwindling to a standstill. Against this backdrop, the enormous destruction inflicted on Dresden — a city teeming with refugees fleeing the Soviet assault — begs glaring questions about whether it was even necessary.

A CONTROVERSIAL TOPIC

The overall Allied plan of area bombing was established by the Royal Air Force (RAF) under Air Chief Marshal Sir Arthur "Bomber" Harris. Area bombing targeted urban areas, destroying military and industrial facilities as well as civilian infrastructure. The supposed logic was to undermine German morale and force an unconditional surrender.

Churchill, known as the “wartime PM”, was a supporter of this strategy. His lectures emphasised the need for triumph, and the complete elimination of the Nazis. His government supported the RAF's night bombing raids, which included the use of incendiary devices designed to start conflagrations in heavily populated areas.

The raid on Dresden was methodically designed for maximum devastation. The first wave of British bombers, which flew on the night of February 13, delivered explosives intended to rip open buildings. This was followed by a second wave of incendiary

bombs, which ignited the crumbling remains — and the survivors of an inferno that consumed the city.

Temperatures exceeded 1,500 degrees Fahrenheit, incinerating everything. The few straggling survivors, heading for the river, were strafed by gunfire the next day, as American aircraft launched a daylight strike on the city.

The initial conflagration was so fierce that it caused hurricane-force winds, sucking oxygen from the streets and asphyxiating many who sought safety in basements and makeshift shelters. Eyewitnesses report sights of unthinkable misery: people on fire, their skin melting from their bones, entire families vaporised, a once-great metropolis turned into a sea of molten metal, smoke, ash, and bodies.

THE MORAL QUESTION

In the immediate aftermath, the victors claimed the bombardment had been a necessary evil. The premise was that by destroying Germany's resolve, the war was shortened, “saving lives”. The attack was also designed to aid the Soviet advance on Berlin.

In recent decades, many historians and ethicists have questioned whether any of this

is true, or defensible. They say the attack was disproportionate at the very least, targeting civilians rather than military outposts, and amounted to little more than terrorism. Given that Germany's defeat was almost inevitable, they argue, Dresden had little significance for the Allied cause. It was, they say, primarily an act of revenge intended to punish the German people.

The population in Dresden at the time comprised many thousands of refugees: women, children and the elderly fleeing the ravages of the Eastern Front. In this context, the bombings can be seen as a war crime, an atrocity that targeted noncombatants in a way that violated the rules of war.

CHURCHILL: HERO OR CRIMINAL?

Winston Churchill's involvement in the Dresden bombing, and the wider campaign against Germany, has cast doubt on his once iron-clad reputation. Was he the steadfast leader who led Britain through its darkest hour, or something much darker? History, as they say, is written by the victors.

Churchill's thoughts on the Dresden raid seem to have been conflicted. In a communication to the Chiefs of Staff dated March 28, 1945, weeks after the bombing, he voiced fears that the Allies'

use of air force would be perceived as excessive. "It appears to me,” he wrote, “that the time has come to reconsider bombing German cities solely for the sake of generating dread, albeit under different pretexts. Otherwise, we will take possession of a completely destroyed territory.”

Some have read this as Churchill acknowledging, too late, that his tactics had crossed a moral line. Others believe his words were more about the postwar narrative than an expression of contrition. He never publicly denounced the bombing campaign, and claimed it as an essential aspect of the Nazis’ defeat.

REASSESSING CHURCHILL'S LEGACY

Churchill's leadership was unquestionably important in the Allied victory, and his role in standing up to the Nazi threat ensured him a place in history. On the other hand, his backing for techniques that resulted in the mass killing of civilians calls into question his hero status.

Some contend that labelling Churchill as a war criminal oversimplifies the moral difficulties of wartime leadership. War, by definition, includes awful decisions; the line between legitimate military objectives and civilian casualties can blur in the heat of battle. The crimes by the

Nazis, including the Holocaust, provide a moral background that makes it questionable to compare Churchill's acts to those of the Axis powers.

But for many, a “just” war necessitate accountability — even for the winners. If the intentional targeting of civilian populations is to be condemned, Dresden should not be immune to moral criticism.

In the end, the Dresden bombings remain a divisive issue that resists easy categorisation. It challenges us to confront hard truths about the nature and ethics of war, and the boundaries of permissible violence in the pursuit of victory. Dresden serves as a warning that even the most admired leaders can be involved in decisions with deplorable moral implications.

Nearly 80 years later, we are left with some disturbing questions. An unavoidable act of war? A crime that must be acknowledged, and even punished? The answer may depend on individual and national perceptions of leadership's broader obligations in times of crisis.

Even history's heroes should be held accountable for their decisions. i

ANNOUNCING AWARDS 2024

WINTER HIGHLIGHTS

Once again CFI.co brings you reports of individuals and organisations that our readers and the judging panel consider worthy of special recognition. We hope you find our short profiles interesting and informative.

All the winners announced below were nominated by CFI.co audiences and

then shortlisted for further consideration by the panel. Our research team gathered additional information to help reach a final decision. In many cases, senior members of nominee management teams provided the judges with a personal view of what sets their companies and institutions apart from the competition.

As world economies converge we are coming across many inspirational individuals and organisations from developing as well as developed markets - and everyone can learn something from them. If you have been particularly impressed by an individual or organisation’s performance please visit our award pages at www.cfi.co and nominate.

AccountAbility: BEST ESG STRATEGY DEVELOPMENT PARTNER GLOBAL 2024

AccountAbility, a leading global sustainability advisory and standards firm, has established a reputation for driving sustainable business practices. With a focused commitment to helping organisations integrate environmental, social, and governance (ESG) factors into their core strategies, the firm has played a pivotal role in shaping the evolving landscape of corporate sustainability.

Founded in 1995, AccountAbility introduced the world’s first sustainability assurance standard and the most widely adopted stakeholder engagement framework: the AA1000 Series of Standards, used globally to improve

responsible business practices. The firm’s advisory services are built on a strong foundation of stakeholder-driven and market-focused principles that enhance inclusivity, materiality, responsiveness, and impact.

AccountAbility is known for simplifying complex sustainability concepts, offering intuitive guidance on issues such as greenhouse gas emissions, corporate governance, stakeholder engagement, and ESG reporting. In recent years, it has also emphasised the role of governance, helping clients navigate the growing importance of sustainability within corporate boardrooms. The firm continues to expand its global reach, working

closely with industry leaders to drive innovation in sustainability strategy and implementation.

AccountAbility is a Public Benefit Corporation that actively partners with both private and public sector organisations, fostering collaboration to meet ambitious climate action and sustainability goals. Its client-centric approach and commitment to high-quality standards have earned it widespread industry recognition, solidifying its position as a trusted partner in sustainability advisory services. The CFI.co Judging Panel congratulates AccountAbility on winning the 2024 award for Best ESG Strategy Development Partner (Global).

BEYOND CAPITAL PARTNERS: INNOVATOR IN SUCCESSION SOLUTIONS AND EXPANSION CAPITAL GERMANY 2024

Beyond Capital Partners, a Germany-based private equity firm, is celebrated for its trailblazing contributions to succession solutions and expansion capital tailored to lower mid-cap enterprises. Established in 2015 by three entrepreneurial founders, the investment firm has crafted a distinct identity rooted in its commitment to responsible investment and sustainable growth. Its strategy centres on acquiring majority stakes in companies across asset-light sectors, including business-to-business services, IT services, software, healthcare & well-being, and ESG-oriented enterprises. The team, comprising 16 professionals with entrepreneurial and private equity expertise, collaborates closely with

portfolio companies to foster trust, accelerate growth, and deliver long-term value creation and sustainable outcomes. A standout feature of Beyond Capital Partners is its focus on gender equity, with women representing a significant proportion of the leadership team. This emphasis on inclusivity, alongside a culture promoting work-life balance and operational efficiency, has made it a leader in modern private equity practices. Over the past decade, the investment firm has executed 27 acquisitions plus more than 100 smaller acquisitions in the course of a roll-up strategy, building a portfolio of highperforming businesses with average revenues of €20m at entry. Managing funds totalling USD

350m with a combined NAV close to half a billion USD, the investment firm closed its most recent fund during the challenging fundraising climate of 2023, underscoring its resilience and appeal to investors globally and domestically. By leveraging its entrepreneurial DNA and innovative strategies, Beyond Capital Partners has established itself as a trusted partner for founders navigating succession and expansion and is one of the most active lower-mid-market GPs in the DACH region. The CFI.co Judging Panel congratulates Beyond Capital Partners on winning the 2024 award for Innovator in Succession Solutions and Expansion Capital (Germany).

NBG SECURITIES S.A.: EXCELLENCE IN EQUITY AND BOND TRADING GREECE 2024

NBG Securities S.A., one of the top brokerage firms in Greece and subsidiary of the National Bank of Greece, has been a key player in the country’s capital markets, specialising in equity and bond trading. Established in 1988, the company provides a comprehensive range of services, including institutional and retail brokerage, equity research and market making. Licensed and supervised by the Hellenic Capital Market Commission, NBG Securities is a member of the Athens Exchange S.A., the Cyprus Stock Exchange and acts as a market maker in the Stock and Derivatives Markets of the Athens Exchange. NBG Securities has made significant

strides in recent years under new management, aiming to develop and enhance three key areas: client relationships, client experience and its personnel. The firm offers tailor-made solutions for retail and institutional clients, ensuring that each segment receives the appropriate level of service.

NBG Securities has built a strong and dedicated team which drives innovation and delivers on measurable results, positively impacting its profitability. The company has also re-engineered its operations enhancing efficiency and client satisfaction. With a deep commitment to sustainability, NBG Securities is

actively integrating ESG (Environmental, Social, and Governance) principles into its business and governance model, aligning with the global shift towards responsible investing.

The firm also leverages advanced technology platforms, ensuring transparency and seamless execution. In addition to its domestic operations, the firm has established a reputation for excellence across international markets, leveraging the strength of its parent company and strategic partnerships. The CFI.co Judging Panel congratulates NBG Securities S.A. on winning the 2024 award for Excellence in Equity and Bond Trading (Greece).

Coeli Asset Management, a Sweden-based investment organisation with nearly 30 years of industry expertise, continues to excel in delivering innovative multi-asset class solutions. Over the past two decades, it has cultivated a reputation for innovation and adaptability in public market investments. The firm employs a hybrid strategy, combining internal and external investment approaches to achieve consistent and diversified returns. A key advancement in 2023 was the integration of a quantitative layer into its investment processes, further enhancing decision-making and supporting superior performance. Coeli

demonstrates exceptional agility in navigating market complexities, including strategic fixed income management and precise duration positioning, which mitigated volatility and secured strong outcomes during challenging periods. The firm's equity strategy highlights a focus on frontier markets, benefiting from their lower valuations, growth potential, and insulation from geopolitical tensions, alongside sector-specific investments such as real estate. Its commitment to cultivating top-performing investment teams ensures continuous innovation and alignment with client goals. In addition to its multi-asset

expertise, Coeli maintains a robust presence in private equity and real estate, serving a diverse clientele of institutional investors and wealth management clients. With plans to expand its investment team and strategies in 2025, Coeli is well-positioned for continued growth. The firm’s enduring focus on talent acquisition, innovative asset allocation, and client-centric solutions underscores its leadership in the investment landscape. The CFI.co Judging Panel congratulates Coeli Asset Management on winning the 2024 award for Outstanding Performance in Multi-Asset Class Management (Sweden).

PORTOBELLO CAPITAL: BEST MID-MARKET INVESTMENT PARTNER IBERIA 2024

Portobello Capital is a leading private equity firm based in Spain, renowned for its strategic investments and robust management of midmarket companies. The firm has established a notable presence in the Iberian Peninsula, focusing on sectors including healthcare, industrials, and consumer goods. Over the past decade, Portobello Capital has consistently demonstrated its capacity to drive growth and create value, leveraging deep market insights and a hands-on approach to portfolio management. The firm’s recent accomplishments include successful exits and significant returns on

investments, notably achieving a 3.6x return in a digital signage company from Galicia and a successful transaction in the manufacturing sector in the Basque Country. Portobello Capital is committed to expanding its international footprint, with new transactions in Italy and Portugal, and a strategic office opening in Italy to support future growth. The company’s approach to internationalisation not only involves geographic expansion but also enhances operational capabilities across its portfolio companies, leading to a tripling of revenue from international markets. Portobello

Capital's emphasis on maintaining strong relationships with institutional investors has solidified its reputation as a trusted and reliable partner. The firm’s team, characterised by its ambition and expertise, is integral to its ongoing success and continuous evolution in the dynamic investment landscape. Portobello Capital’s focus on innovation and commitment to excellence are further evidenced by its pursuit of new investment opportunities and expansion initiatives. CFI.co Judging Panel congratulates Portobello Capital on winning the 2024 award Best Mid-Market Investment Partner (Iberia).

> HLB BEST CROSS-BORDER COLLABORATION FOR TAX SOLUTIONS GLOBAL 2024

HLB demonstrates exceptional expertise in crossborder tax solutions, providing seamless advisory services that help multinational businesses navigate complex regulatory landscapes. With a global network spanning over 150 countries, the firm offers integrated tax strategies that ensure compliance, optimise efficiency, and mitigate risks for clients operating across multiple jurisdictions. Its collaborative approach leverages the deep expertise of local tax professionals while maintaining a unified global perspective, enabling businesses to adapt to evolving tax regulations with confidence. HLB’s proficiency in international tax planning, transfer pricing, and

corporate structuring empowers organisations to achieve sustainable growth while adhering to stringent compliance requirements. The firm embraces digital transformation, incorporating cutting-edge technology and data analytics to enhance tax efficiency and reporting accuracy. Its proactive engagement with regulatory bodies and industry stakeholders ensures clients receive up-to-date insights on global tax developments, including OECD guidelines and BEPS initiatives. HLB’s commitment to transparency and ethical tax practices fosters trust among clients, regulators, and investors alike. By facilitating knowledge-sharing across

its network, the firm ensures best practices are implemented consistently worldwide. Its dedication to delivering tailored, forwardthinking tax solutions cements its position as a leader in international tax advisory services. Through strategic collaboration, HLB continues to shape the future of global tax compliance and efficiency. The firm’s ability to anticipate tax trends and regulatory shifts further strengthens its advisory capabilities, ensuring clients stay ahead in an evolving financial landscape. The CFI.co Judging Panel congratulates HLB on winning the 2024 award for Best Cross-Border Collaboration for Tax Solutions (Global).

Trading.com has revolutionised mobile trading across Europe and the UK with its cutting-edge, user-friendly app, tailored to the needs of modern traders. The app delivers a seamless and intuitive experience, removing complexities to provide hassle-free trading. Central to its innovation is the one-tap trading feature, which enables instant execution of trades—a crucial advantage in fast-paced financial markets. Its responsive interface enhances usability, allowing traders to swipe right to add assets to watchlists or left to place trades, creating a streamlined and efficient user journey. Real-time trade

monitoring is a standout feature, with profit and loss indicators displayed prominently on the home screen, alongside advanced charting tools and TradingView indicators that support data-driven decision-making. All essential tools are consolidated into a single, accessible platform, enabling smooth transitions from strategy formulation to execution. Traders also benefit from a straightforward onboarding process, with new clients able to open accounts directly within the app and existing users logging in seamlessly. The app’s accessibility is further enhanced by availability on Google

HIGHLY TRANSPARENT BROKER EU/UK 2024

Trading.com stands out as a brokerage firm committed to fostering trust and clarity in the trading landscape across the EU and UK. Built on the principles of simplicity, security, and openness, the company prioritises a seamless and transparent trading experience for its clients. Its approach to trading costs exemplifies transparency, with zero commissions, low spreads, and clearly visible swap fees, ensuring that clients encounter no hidden charges or unexpected expenses. Flexible leverage options up to 30:1 further enhance the client offering, enabling traders to operate with agility and

control. As a CySEC-regulated entity, Trading. com adheres to stringent compliance standards designed to safeguard client transactions and protect sensitive personal data, providing peace of mind to traders. Beyond financial transparency, the firm has made its business terms, policies, and operational practices accessible to all. Key information documents are translated into 24 languages, ensuring that clients from diverse backgrounds can fully understand Trading.com’s offerings and the protective measures in place. The company’s dedication to openness extends

OUTSTANDING LOW-COST CRYPTO TRADING EU 2024

Trading.com is dedicated to delivering affordable and accessible cryptocurrency trading through its diverse range of contracts for difference (CFDs). Offering 58 cryptocurrencies, including established options like Bitcoin (BTC) and Ethereum (ETH), as well as emerging digital assets, Trading.com provides ample opportunities for traders to diversify their portfolios. Its platforms, encompassing WebTrader, mobile applications, and MT5, ensure seamless trading experiences around the clock. Notable advantages include tight spreads and zero commission fees, allowing traders to optimise their returns. For novice

investors, Trading.com provides a comprehensive suite of free educational resources, ranging from articles to tutorials, alongside a practice account to build skills in a risk-free environment. Seasoned traders also benefit from Trading. com’s advanced tools, ensuring precision and efficiency in every transaction. The firm’s 24/5 customer support, available via email, phone, and live chat, underscores its commitment to client satisfaction. This is complemented by an extensive Glossary and Help Centre, offering users easy access to essential information and fostering confidence in trading decisions. The

Play and the App Store, ensuring a broad reach and ease of adoption. Designed to empower traders with speed, innovation, and functionality, the Trading.com app is a prime example of technological excellence, customercentric design, and unwavering commitment to innovation. By consistently prioritising user experience and continuous improvement, Trading.com continues to set new standards in mobile trading technology and usability. The CFI.co Judging Panel congratulates Trading. com on winning the 2024 award for Seamless User-Friendly Mobile App (EU/UK).

to every facet of its operations, from costs to compliance, supported by a user-friendly website that ensures complete clarity. Trading. com’s commitment to simplicity, security, and accessibility positions it as a trusted partner in the industry, setting a benchmark for others to follow. The firm’s innovative approach and unwavering focus on transparency continue to resonate strongly with traders seeking reliability and clarity in a competitive market.

The CFI.co Judging Panel congratulates Trading.com on winning the 2024 award for Highly Transparent Broker (EU/UK).

firm also ensures a seamless trading experience by integrating user-friendly interfaces with robust functionality, making it suitable for traders of all experience levels. Trading.com’s transparency, focus on education, and cost-effective solutions distinguish it in the competitive cryptocurrency trading market. Its commitment to innovation ensures it remains at the forefront of the industry, setting high standards in service delivery, platform reliability, and client support excellence. The CFI.co Judging Panel congratulates Trading. com on winning the 2024 award for Outstanding Low-Cost Crypto Trading (EU).

>

BANCO DO BRASIL: BEST SUSTAINABLE BANK SOUTH AMERICA 2024

Banco do Brasil stands at the forefront of sustainable banking in South America, integrating environmental, social, and governance (ESG) principles into its operations while driving financial inclusion and economic development. The bank has embedded sustainability into its corporate strategy, offering green finance solutions, responsible investment products, and climate-conscious lending practices that support Brazil’s transition to a low-carbon economy. Its extensive portfolio includes funding for renewable energy, sustainable agriculture, and social impact projects, demonstrating a steadfast commitment to

eFactor

positive environmental and societal change. Banco do Brasil actively engages with stakeholders to promote financial literacy, social entrepreneurship, and inclusive banking services, ensuring underserved communities gain access to essential financial resources. Innovation plays a crucial role in its sustainability agenda, with the bank leveraging digital transformation to enhance efficiency, reduce environmental impact, and provide customers with secure and responsible financial solutions. Transparent reporting and adherence to international ESG standards reinforce its leadership in sustainable finance,

setting a benchmark for responsible banking across the region. Banco do Brasil’s dedication to corporate governance and ethical banking practices strengthens its credibility among investors and customers alike. Its proactive approach to sustainable development aligns with global climate goals while fostering longterm economic resilience. Through strategic initiatives and a commitment to continuous improvement, the bank remains a driving force in shaping the future of sustainable finance. The CFI.co Judging Panel congratulates Banco do Brasil on winning the 2024 award for Best Sustainable Bank (South America).

NETWORK: BEST DIGITAL SUPPLY CHAIN FINANCE PLATFORM LATAM

2024

eFactor Network delivers cutting-edge supply chain finance solutions across Latin America, leveraging advanced digital technology to enhance liquidity, efficiency, and financial inclusion. The company provides a seamless platform that connects corporates, suppliers, and financial institutions, streamlining cash flow management and optimising working capital. Its innovative approach integrates automation, data analytics, and artificial intelligence to accelerate transaction processing while mitigating risk. eFactor Network’s commitment to transparency and security ensures a robust financing ecosystem that fosters trust among

stakeholders. By facilitating early payments and offering flexible financing options, the platform empowers businesses of all sizes, particularly SMEs, to strengthen their financial resilience and drive sustainable growth. The company’s strong partnerships with banks and fintech firms further expand access to capital, reinforcing economic stability across the region. Its user-friendly interface and API-driven infrastructure enable seamless integration with enterprise resource planning systems, enhancing operational efficiency. eFactor Network continually refines its solutions to meet evolving market demands, ensuring businesses can navigate

complex financial landscapes with confidence. By championing digital transformation, the company plays a crucial role in modernising supply chain finance, reducing friction, and improving overall market liquidity. Its dedication to continuous innovation and customer-centric service cements its position as an industry leader. Through a combination of expertise, technology, and strategic collaboration, eFactor Network is revolutionising financial accessibility for businesses across Latin America. The CFI.co Judging Panel congratulates eFactor Network on winning the 2024 award for Best Digital Supply Chain Finance Platform (LATAM).

IN THE MIDDLE EAST IN PREPARING GRADUATES FOR EMPLOYMENT AND LEADERSHIP

Jadara University, located in northern Jordan, has garnered acclaim for its forward-thinking approach to employability and leadership development. The institution has achieved high rankings in prestigious assessments, including a five-star rating in alumni success, education, and societal engagement from the QS international rating system, and an impactful standing in the Times Higher Education rankings. Jadara aligns its curriculum with industry needs, ensuring graduates gain relevant skills through a focus on sustainable development goals and hands-on learning. Its academic programmes employ diverse teaching methods— from online to blended and in-person formats—to meet rigorous learning outcomes. The university has excelled in Jordan’s national capacity exam and ranks highly in metrics assessing environmental impact and sustainable practices. Additionally, Jadara offers career services, with each faculty providing workshops, seminars, and leadership-focused extracurricular activities. Its leadership programmes are integrated into governance, allowing

students to lead committees, further developing their skills. International exchange programmes with institutions in Turkey, Malaysia, and Germany offer global exposure, enhancing students’ academic and practical experience. Jadara also emphasises digital skills, leveraging advanced ICT resources and programming to support students across disciplines. Ranking as the leading private university in northern Jordan and achieving international recognition for student outcomes, Jadara distinguishes itself by delivering a robust education that prepares graduates to excel. The CFI.co Judging Panel congratulates Jadara University on winning the 2024 award for Best University in the Middle East in Preparing Graduates for Employment and Leadership. This success shown through Jadara University's long journey starting 2006 goes back to the vision and consistent hard work of the leader of this distinguished higher institution, the chairman of the board of directors, Doctor Shukri Marashdh, who has also been titled this year 'the ambassador of sustainable development in Jordan'.

JADARA UNIVERSITY: BEST UNIVERSITY

KPMG: OUTSTANDING CONTRIBUTION TO YOUNG TALENT DEVELOPMENT QATAR 2024

KPMG demonstrates a steadfast commitment to nurturing young talent in Qatar through comprehensive development programmes, strategic mentorship, and industry-leading training initiatives. The firm actively invests in graduate schemes, internships, and professional qualification support, equipping emerging professionals with the skills and knowledge required to excel in the financial and consultancy sectors. KPMG fosters an inclusive learning environment, leveraging cutting-edge technology and global expertise to provide a robust foundation for career growth. Collaboration with educational institutions and government bodies further enhances its talent pipeline, ensuring alignment with national workforce strategies. The firm’s emphasis on continuous learning extends beyond entry-level roles, offering leadership development programmes that cultivate the next generation of industry pioneers. Through tailored workshops, networking opportunities,

and structured career progression frameworks, KPMG ensures young professionals are not only well-prepared but also empowered to drive innovation and excellence. Its dedication to talent development contributes significantly to economic diversification efforts, reinforcing Qatar’s position as a hub for financial expertise. By championing diversity and inclusion, KPMG fosters an equitable workplace that nurtures potential across all demographics. The firm’s unwavering support for professional growth underscores its broader corporate responsibility ethos, ensuring sustainable impact within the business community. By aligning its initiatives with global best practices, KPMG maintains its reputation as a leader in talent cultivation. Its ongoing investment in young professionals strengthens the national workforce, fostering resilience and adaptability. The CFI.co Judging Panel congratulates KPMG on winning the 2024 award for Outstanding Contribution to Young Talent Development (Qatar).

Al Nahla Group is a family-owned conglomerate that has played a significant role in Saudi Arabia’s economic development and diversification efforts. Over several decades, the group has built a diverse portfolio spanning key sectors such as real estate, automotive distribution, and investments. Al Nahla’s approach is deeply rooted in community service, with one-third of its net income dedicated to a foundation supporting education, healthcare, and social initiatives. The group is recognised for its values-driven leadership, led by successive generations that maintain a commitment to ethical business practices and corporate governance. Additionally, the group’s longstanding partnerships with global brands such as Porsche and Audi underscore its credibility and reliability in the marketplace. Al Nahla’s transformation from a traditional family office into a modern, well-governed entity reflects its forward-thinking

approach, ensuring sustainable growth while aligning with Saudi Vision 2030. Its strategic focus on economic diversification is complemented by its commitment to social responsibility, making it a pillar of both the business and local communities. Furthermore, its diversification into renewable energy, food & beverage, and flagship real estate projects highlights its adaptability to market demands. The group’s long-term partnerships, community-driven initiatives, solid corporate governance, and involvement in landmark national projects exemplify its leadership in driving economic transformation. Through innovation and sustainability, Al Nahla Group continues to contribute significantly to Saudi Arabia’s future growth. The CFI.co Judging Panel congratulates Al Nahla Group on winning the 2024 award for Outstanding Contribution to Economic Diversification (Saudi Arabia).

PEAK RE: VISIONARY IN REINSURANCE FOR EMERGING MARKETS APAC 2024

Peak Re has demonstrated a strong commitment to expanding reinsurance solutions for Asia-Pacific’s emerging markets, focusing particularly on underserved middle-class communities. The firm leverages its extensive experience in the region to address critical needs, such as providing sustainable insurance options that help prevent vulnerable families from sliding back into poverty due to natural disasters. With an emphasis on driving microinsurance growth, particularly in countries like the Philippines and Indonesia, Peak Re supports regulatory developments aimed at making insurance accessible to broader populations. In addition, it collaborates with international and local partners, regulators, and academic institutions to deepen resilience and improve climate risk assessment models, highlighted by its AI-driven climate project with the Hong Kong University of Science and Technology.

The company utilises cutting-edge technology in risk and capital management systems, optimising cloud-based resources, machine learning, and cyber risk assessment platforms to streamline and strengthen its operations. Focused on bridging the insurance gap, Peak Re is expanding its automated systems to better support treaty business with clients who may not yet be fully digitised, driving operational efficiency and robust client servicing solutions across the Asia-Pacific region. By maintaining partnerships with local insurers, academic institutions, and regulatory bodies, Peak Re not only bolsters its market position but also plays a key role in shaping the future of reinsurance in markets with young, rapidly growing populations.

The CFI.co Judging Panel congratulates Peak Re on winning the 2024 award for Visionary in Reinsurance for Emerging Markets (APAC).

LA TROBE FINANCIAL: BEST INVESTMENT MANAGEMENT TEAM AUSTRALIA 2025

La Trobe Financial has cemented its reputation as Australia’s premier alternative asset manager, demonstrating a proven ability to innovate and deliver outstanding results. With over 100,000 investors and assets under management exceeding $20bn, including a flagship Credit Fund surpassing $12bn, the firm continues to set industry benchmarks. Its focus on retirementfocused solutions is bolstered by the launch of the US Private Credit Fund under its Global Asset Management strategy, providing Australian investors access to premium global investment opportunities. The integration of environmental,

social, and governance (ESG) principles into its decision-making process, utilising a comprehensive ESG scorecard, underscores La Trobe’s commitment to sustainable investing and responsible business practices. The company has established itself as a trusted partner, leveraging an extensive investor education programme, regular newsletters, and robust communications to ensure transparency and foster trust. Roadshows and direct engagement with a diverse range of investors, including families and retirees, reflect its grounded and inclusive approach. A strong partnership with Morgan Stanley further

enhances its capabilities and positions La Trobe for continued success in a competitive landscape. With a history of delivering innovative products, strengthening investor relationships, and fostering trust, the company has proven itself a leader in its field. Its continued efforts to redefine retirement-focused solutions and expand its global presence highlight its forward-thinking ethos, dedication to excellence, and ability to address investor needs effectively. The CFI.co Judging Panel congratulates La Trobe Financial on winning the 2025 award for Best Investment Management Team (Australia).

AIA INSURANCE LANKA LIMITED: BEST LIFE INSURANCE COMPANY SRI LANKA 2024

AIA Insurance Lanka Limited stands as a leading provider of life insurance solutions in Sri Lanka, backed by the robust support of its parent company, AIA Group, the largest independent publicly listed pan-Asian life insurance group. Since its establishment in 1987, the company has become a trusted name, offering a comprehensive range of products, including life and health insurance, savings and investment solutions, and retirement planning services. With a clear focus on promoting its "Healthier, Longer, Better Lives" initiative, AIA Sri Lanka integrates wellness into its offerings while championing

digital transformation to enhance customer experiences. The company maintains a strong financial foundation, supported by sustained growth in Gross Written Premiums and a Capital Adequacy Ratio that significantly exceeds regulatory requirements. Recent advancements include the inauguration of regional development offices to expand accessibility nationwide and the implementation of cutting-edge digital solutions to streamline services. AIA Sri Lanka is widely recognised for its achievements, earning multiple accolades for customer engagement and digital innovation while securing certifications

that underscore its commitment to diversity and inclusion. The company’s dedication to CSR is evident in initiatives promoting health, environmental sustainability, and disaster relief. Its experienced leadership team drives innovation and customer satisfaction, solidifying its position as a market leader. With unwavering commitment to excellence and customercentricity, AIA Sri Lanka continues meeting evolving needs. The CFI.co Judging Panel congratulates AIA Insurance Lanka Limited on winning the 2024 award for Best Life Insurance Company (Sri Lanka).

Abu Dhabi Global Market (ADGM) has established itself as a leading international financial centre, providing a dynamic and well-regulated ecosystem that fosters innovation, investment, and sustainable economic growth. Positioned at the heart of the EMEA region, ADGM offers a robust legal framework based on English common law, ensuring transparency, efficiency, and investor confidence. The financial centre is home to a diverse range of financial institutions, fintech firms, asset managers, and professional service providers, all benefiting from its business-friendly policies and progressive regulatory approach.

ADGM’s commitment to digital transformation is evident in its advanced fintech infrastructure, regulatory sandboxes, and initiatives supporting blockchain, virtual assets, and green finance. By fostering an environment conducive to innovation, the centre attracts global enterprises and startups seeking a strategic gateway to regional and international markets. Sustainability is a key focus, with ADGM championing responsible investment, ESG frameworks, and carbon trading initiatives to support the UAE’s net-zero ambitions. The centre’s arbitration and dispute resolution mechanisms further enhance

its appeal as a trusted financial jurisdiction. Its proactive regulatory body ensures compliance with international standards, reinforcing its reputation as a secure and transparent financial hub. Through strategic partnerships, ADGM continues to expand its influence, bridging capital flows between global markets. Its unwavering commitment to excellence positions it as a premier destination for financial services, fintech innovation, and sustainable finance. The CFI.co Judging Panel congratulates Abu Dhabi Global Market on winning the 2024 award for Best International Financial Centre (EMEA).

> ABU DHABI GLOBAL MARKET: BEST INTERNATIONAL FINANCIAL CENTRE EMEA 2024

EMPOWERING TOMORROW, TODAY!

AIM Congress is the worldʼs leading platform that has progressed into a well-established event, where visionaries and policymakers collaborate to shape the future of investment worldwide. The 14th Edition of AIM Congress 2025 under the theme “The New Wave of a Globalized Investment Landscape: Towards a New Balanced World Structureˮ isnʼt just a conference, but a catalyst which will bring new ideas to life, promoting insightful discussions around 8 portfolios.

Africa: A Continent of Opportunity Commercial Prospects for 2025 and Beyond

Africa's young and growing population, natural resources, and technological advancements offer transformative opportunities across multiple sectors. Despite challenges, the continent stands poised for significant economic growth, inviting businessestoinvestinitsbrightfuture.

Africa is on the rise. While challenges such as poverty, conflict, and climate change persist, the continent is experiencing a transformative era of economic growth. Rapid urbanisation, a burgeoning middle class, and a youthful population are creating unprecedented demand for goods and services. These dynamics are paving the way for commercial opportunities that extend across industries.

Botswana and Zambia's Kazungula Bridge

This article delves into key sectors offering promising prospects for 2025, spotlighting trends that businesses must consider when navigating Africa's dynamic markets.

Technology and Innovation: Africa's Digital Leap

The continent is undergoing a digital revolution, marked by rising mobile penetration and expanding internet access. These advancements have enabled the growth of fintech, e-commerce, and digital services.

Kenya's M-Pesa exemplifies how mobile money platforms are fostering financial inclusion, granting millions access to banking services. E-commerce platforms like Jumia and Takealot are bridging consumers and businesses, while online education tools and ride-hailing apps are reshaping daily life.

Africa's tech-savvy youth are also driving the startup ecosystem, with innovations emerging in agritech, healthcare, and renewable energy.

RENEWABLE ENERGY: HARNESSING NATURAL RESOURCES

With vast solar, wind, hydro, and geothermal resources, Africa is primed to lead in renewable energy development. The urgency of combating climate change has further spurred investments in sustainable energy projects.

Countries like South Africa, Kenya, and Morocco are at the forefront, attracting firms specialising in renewable energy technologies. Off-grid solutions, such as solar home systems, are transforming rural areas by providing electricity, fostering economic development, and improving lives.

AGRICULTURE: FEEDING A GROWING

POPULATION

Agriculture remains a vital pillar of Africa's economy, employing a large share of the workforce and contributing significantly to GDP. With a growing population and rising demand for food, the sector is evolving into a potential global powerhouse.

Innovative agritech solutions—precision farming, drone technology, and data analytics— are boosting productivity. Additionally, the rise in demand for processed foods and beverages is creating opportunities for agro-processing industries.

INFRASTRUCTURE DEVELOPMENT: BUILDING FOR GROWTH

Africa's infrastructure deficit represents both a challenge and a massive opportunity. Investments in roads, ports, railways, and energy infrastructure are crucial to unlocking the continent's potential and fostering trade.

Major projects, including the Lagos-Abidjan Highway and the Grand Inga Dam, are attracting global interest, offering lucrative prospects for construction firms, engineers, and suppliers. Smart cities and sustainable urban

infrastructure projects are also gaining traction to accommodate rapid urbanisation.

HEALTHCARE: ENHANCING ACCESS AND QUALITY

Access to quality healthcare remains a critical issue in many parts of Africa. However, the sector is witnessing transformative changes, spurred by investments in healthcare infrastructure and digital health technologies.

Telemedicine, mobile health apps, and AI-driven diagnostic tools are expanding access to care in remote areas, addressing professional shortages and meeting rising demand for pharmaceuticals and medical devices.

EDUCATION AND SKILLS DEVELOPMENT: A DEMOGRAPHIC DIVIDEND

Africa’s youthful population offers both opportunities and challenges. Investing in education and skills is essential to equipping the workforce to drive economic growth.

Demand for quality education spans all levels, from early childhood to vocational training. Online learning platforms and edtech solutions are broadening access, fostering lifelong learning, and empowering the next generation of innovators.

TOURISM: SHOWCASING AFRICA’S RICH HERITAGE

Africa’s unparalleled natural beauty, vibrant cultures, and historical landmarks make it a global tourism hotspot. The sector holds immense potential for economic growth and job creation.

Eco-tourism, cultural tourism, and adventure tourism are increasingly popular, with visitors seeking immersive experiences. Investments in hotels, resorts, and transport infrastructure are essential to unlocking this potential.

NAVIGATING CHALLENGES

While opportunities abound, businesses must contend with Africa’s unique challenges. Political instability, weak governance, and corruption pose risks to investment. Infrastructure gaps, skills shortages, and limited access to finance can hinder operations.

However, the rewards for navigating these challenges are immense. Understanding local contexts, building strong partnerships, and adopting a long-term view can yield significant dividends while contributing to Africa’s development.

THE TIME TO ACT IS NOW

Africa is brimming with promise. Its young and growing population, rich resources, and advancing technologies signal a new era of sustained growth and opportunity.

By embracing innovation, investing in education, and addressing challenges, businesses can unlock Africa's vast potential, contributing to a prosperous future for the continent and beyond. i

The World's Oldest Businesses: Still Kicking After All These Years

Few companies have withstood the test of time to keep flourishing for millennia.

The secret to survival seems to include adaptation to shifting economic environments, and strategies for longterm success.

Nishiyama Onsen Keiunkan, Japan's Eternal Springs, holds The Guinness World Record for the oldest hotel in the world — it was founded in 705 AD in the verdant highlands of Yamanashi Prefecture. The same family has run this hotspring guesthouse for more than five centuries. Keiunkan is well-known for its relaxing thermal waters, which are thought to have therapeutic qualities. Samurai, politicians, and travellers looking for relaxation and renewal have all stayed there. The durability is due to the preservation of a holy tie to Japanese culture and tradition, which makes it an invaluable historical icon, rather than only its distinctive services.

AUSTRIAN FOOD HISTORY

Nestled in the centre of Salzburg, St Peter Stifts Kulinarium holds the distinction of being the world's oldest restaurant, having opened its doors in 803 AD. It has served everyone from Mozart to Clint Eastwood over the ages. The eatery is wellknown for traditional Austrian food that has been handed down through the years. Gourmet cuisine combined with a historical setting creates a dining experience that is as much a feast for the mind as it is for the senses.

IRELAND'S TIMELESS

BAR

Since 900 AD, ale and stories have been served up at Sean's Bar in Athlone, Ireland. Partially constructed of wattle and daub, the walls of this tavern, recognised by Guinness World Records as the oldest in Ireland, have seen highs and lows. Sean's is a mainstay of local life and a must-visit

"The secret to survival seems to include adaptation to shifting economic environments, and strategies for long-term success."

destination for tourists because of its dedication to the community and preservation of true Irish pub culture.

CONTINUITY IN THE UK

The Royal Mint, founded in 886 AD, has produced coins for England and the entire United Kingdom. It was first located in the Tower of London and relocated to Wales in the 1960s. The Mint has been able to stay at the forefront of currency manufacture because of its capacity to keep up with technological changes while maintaining the highest standards of craftsmanship. It now acts as a tourism destination as well, giving guests a look into its colourful history and minting procedures.

BERETTA — BANG ON

In Gardone Val Trompia, Italy, Fabbrica d'Armi Pietro Beretta has been manufacturing firearms since 1526. Being the sector’s oldest manufacturer still in operation, Beretta is highly regarded by armed forces and hunters all over the world. The business has combined cutting-edge engineering methods with age-old workmanship to create products that are still highly soughtafter.

CANADA'S PIONEER OF COMMERCE

The Hudson's Bay Company (HBC) was established in 1670. It began as a fur-trading company in the harsh Canadian wilderness and

grew to become one of the biggest retailers in the continent. HBC's capacity to successfully pivot its business model over centuries is demonstrated by its early adaption to the demands of the North American fur trade, which allowed it to expand into retail, real estate, and digital commerce.

GROLSCH BREWERY: CHEERS

A mainstay of Dutch brewing since 1615, Grolsch Brewery is known around the globe for its strong beers and unusual swing-top bottle closures. Grolsch embodies the tradition and innovation required to succeed in the cutthroat global beer industry by fusing centuries-old brewing traditions with cutting-edge procedures.

HISTORICAL INSIGHTS

These organisations are the epitome of adaptation, resilience, and unshakeable dedication to their traditions and basic beliefs. Their experiences show us that maintaining a healthy balance between accepting change and one's background is frequently necessary for long-term success.

The lessons from these enduring businesses include insights into longevity and continued relevance in a dynamic world. These companies have not only survived but have thrived thanks to their commitment to their communities and craft, leaving their marks on history. i

NJMPF: Empowering Financial Literacy & Exemplary Leadership

The KwaZulu-Natal Joint Municipal Pension / Provident Fund (NJMPF) has solidified its status as a leader in the retirement fund industry, earning recognition as Financial Literacy Champion and Best Fund Leadership by CFI.co. These awards highlight the Fund’s unwavering dedication to its members, showcasing a legacy of financial empowerment and governance excellence.

CHAMPIONING FINANCIAL LITERACY

Financial literacy has always been a cornerstone of NJMPF’s mission. Recognising the importance of empowering its members to make informed financial decisions, the Fund has invested heavily in educational programmes that simplify complex financial concepts.

In an era where understanding retirement planning is crucial, NJMPF bridges the gap between technical jargon and practical knowledge. Seminars like the RoadtoRetirement and tailored workshops for new members demystify essential topics such as the two-pot retirement system, the value of early saving, and the dangers of over-reliance on borrowing. These initiatives are complemented by financial literacy sessions for children who receive monthly pensions, ensuring that younger generations are also equipped with the tools for a secure financial future.

Innovative outreach is another hallmark of NJMPF’s approach. Through newsletters, digital campaigns, and interactive roadshows, the Fund connects with its members on multiple platforms. A strong online presence via its website and social media channels allows members to access resources, engage with representatives, and stay informed about the latest developments. This

multi-channel strategy has fostered trust and ensured NJMPF remains accessible to a diverse membership base.

LEADERSHIP IN ACTION

Receiving the Best Fund Leadership award is a testament to NJMPF’s commitment to robust governance and innovation. The leadership team’s ability to navigate the complexities of today’s economic environment has ensured the Fund’s resilience and growth.

Central to this achievement is the team’s forwardthinking approach. For instance, NJMPF’s seamless adoption of the two-pot retirement system exemplifies its proactive stance. Workshops conducted across the province have educated members and employers on the benefits of this legislative reform, ensuring a smooth transition. By prioritising transparency and member engagement, the leadership team has set a high standard in fund governance.

Furthermore, the team’s dedication to inclusivity and strategic oversight continues to position NJMPF as an industry leader. From maintaining financial stability during economic turbulence to driving initiatives that directly benefit members, NJMPF’s leadership remains steadfast in its commitment to excellence.

A MEMBER-CENTRIC PHILOSOPHY

At the heart of NJMPF’s operations is its unwavering focus on its members. Every initiative is designed with their needs in mind, from streamlining claims processes to establishing additional satellite offices for easier access to services.

This member-first approach extends beyond the immediate needs of members. NJMPF has

forged partnerships with schools and community programmes, introducing financial education to younger audiences. By fostering financial awareness early, the Fund not only prepares individuals for personal financial independence but also contributes to a financially literate future workforce.

The Fund’s commitment to continuous improvement ensures that services remain efficient, accurate, and accessible. Whether it’s through simplifying administrative processes or enhancing communication channels, NJMPF consistently prioritises member satisfaction.

DRIVING INNOVATION

NJMPF’s embrace of technology has been pivotal in enhancing its services. By integrating advanced digital tools, the Fund ensures members can access information, track claims,

CEO/Principal Officer Bongi Mkhize addressing children during the NJMPF financial literacy workshop.

and engage with services seamlessly. This digital transformation is not merely about efficiency but about creating a more engaging and user-friendly experience.

In addition, NJMPF’s focus on sustainable practices underscores its dedication to the longterm well-being of its members and the broader community. Initiatives like green investment strategies and partnerships with environmentally conscious organisations highlight the Fund’s commitment to sustainability.

ADDRESSING CHALLENGES WITH RESILIENCE

While NJMPF’s achievements are commendable, its journey has not been without challenges. Economic fluctuations, shifting legislative landscapes, and the diverse needs of its membership have required the Fund to adapt and innovate continually.

However, these challenges have served as catalysts for growth. By addressing regulatory changes with proactive measures and fostering a culture of resilience, NJMPF has turned potential hurdles into opportunities for improvement. This ability to adapt has not only strengthened the Fund but also enhanced its reputation as a reliable and forwardthinking institution.

LOOKING AHEAD: A LEGACY OF EMPOWERMENT

As NJMPF celebrates its recent accolades, its focus remains firmly on the future. The recognition as Financial Literacy Champion and Best Fund Leadership is not just a reflection of past achievements but a motivator to continue setting benchmarks in the retirement fund industry.

The Fund’s roadmap includes expanding its educational programmes, leveraging technology to further enhance member experience, and

exploring innovative investment opportunities. By aligning its strategies with evolving member needs and global trends, NJMPF aims to remain at the forefront of the industry.

FORGING A PATH FOR FUTURE GENERATIONS

NJMPF’s legacy is one of empowerment, innovation, and resilience. Its efforts to equip members with financial knowledge, combined with a dedication to exemplary leadership, ensure that it remains a beacon of trust and excellence in the retirement fund landscape.

As the Fund looks to the future, its vision is clear: to create a financially secure and inclusive environment where all members can thrive. Through strategic initiatives, member-centric policies, and a commitment to sustainability, NJMPF is not just managing retirement funds—it is shaping a brighter financial future for generations to come. i

The Restaurant Industry: A Recipe for Disaster or Resilience? >

The aroma of sizzling garlic, the clatter of dishes, and the warm hum of contented diners—opening a restaurant is a dream for many, a romantic vision of blending culinary passion with entrepreneurial ambition. Yet behind the tantalising allure of the restaurant world lies a stark reality: this is an industry as unforgiving as it is seductive. Aspiring restaurateurs often underestimate the grit, strategy, and sheer resilience required to survive in a notoriously volatile landscape.

A GRIM STATISTIC: THE REALITY OF RESTAURANT FAILURES

Restaurants are famously fragile enterprises. While exact figures vary, studies consistently show a high failure rate. It’s estimated that nearly 60 percent of new restaurants close within their first three years, with up to 80 percent shuttering within five. These figures reveal the brutal challenges faced by even the most passionate and talented culinary entrepreneurs.

THE INGREDIENTS OF FAILURE

The factors leading to restaurant closures are numerous, often combining in a perfect storm that can sink even the most promising ventures: Undercapitalisation

Starting a restaurant is a capital-intensive endeavour. From securing prime locations to outfitting kitchens, hiring staff, and launching marketing campaigns, the costs quickly add up. Many restaurateurs underestimate these expenses or fail to secure adequate funding, leaving them vulnerable to cash flow crises and unexpected setbacks.

Lack of Planning

A successful restaurant requires more than just great food. A comprehensive business plan— covering market analysis, financial projections, branding, and marketing strategies—is essential. Without this foundation, many ventures falter due to mismanaged budgets or poor customer targeting.

Poor Location

In the restaurant world, location is everything. High rents, insufficient foot traffic, lack of visibility, or mismatched demographics can all doom a restaurant, no matter how good the food or service may be.

Operational Inefficiencies

Running a restaurant is a complex, detailoriented endeavour. Ineffective inventory management, inconsistent food quality, or poorly trained staff can degrade the customer experience and tarnish a restaurant’s reputation.

Competition and Failure to Differentiate

With an ever-expanding market of dining options, standing out is crucial. Restaurants that fail to carve out a unique identity or adapt to shifting consumer trends often struggle to draw in diners.

Resistance to Change

The culinary world is ever-evolving, shaped by emerging trends and changing consumer preferences. Restaurants that cling to outdated menus or resist adopting new technologies risk becoming irrelevant.

TURNING THE TABLES: PATHWAYS TO SUCCESS

While the risks are undeniable, there are strategies that can tip the odds in favour of aspiring restaurateurs.

Develop a Solid Business Plan

A thorough business plan is the cornerstone of any successful restaurant. From analysing competitors to pinpointing target demographics and crafting a financial blueprint, this plan serves as both a guide and a safeguard.

Secure Adequate Funding

Underestimating costs is a common pitfall. Restaurateurs should aim for sufficient capital reserves to weather initial losses, invest in quality, and handle unexpected challenges. Exploring funding avenues such as partnerships, loans, or grants can help bridge financial gaps.

Choose the Right Location

A restaurant’s location is as critical as its menu. Factors such as foot traffic, accessibility, and the local competitive landscape must align with the concept. Equally important is negotiating a lease agreement that allows room for growth.

Focus on Operational Excellence

Efficiency is the backbone of restaurant success. Streamlining operations, from inventory management to staff training, ensures consistency and quality. Investing in technology, such as point-of-sale systems and reservation platforms, can further enhance efficiency.

Create a Memorable Brand Identity

A strong, cohesive brand identity sets a restaurant apart. From the name and logo to the menu design and interior décor, every element should reflect a unified vision that resonates with the target audience.

Embrace Innovation

Staying relevant requires a willingness to adapt. Monitoring food trends, updating menus, and adopting eco-friendly practices or new technologies can keep a restaurant ahead of the curve.

Build a Strong Team

Employees are the heart of any restaurant. Hiring passionate, skilled individuals and fostering a supportive work environment can lead to better customer service and lower staff turnover.

Listen to Customers

Feedback is invaluable. Monitoring reviews, engaging with customers, and addressing complaints can help refine the dining experience and build loyalty.

CAUTIONARY TALES: LESSONS FROM THE FALLEN

The history of the restaurant industry is littered with high-profile failures, each offering cautionary lessons.

Fashion Café

Despite backing from supermodels like Naomi Campbell, this celebrity-driven concept crumbled under poor management and a lack of focus on quality dining.

Planet Hollywood

While initially successful, this Hollywood-themed chain faltered when the novelty wore off and the brand failed to adapt.

Kenny Rogers Roasters

Known for its rotisserie chicken, this chain struggled to maintain relevance as consumer preferences shifted, eventually losing ground to competitors.

SUCCESS STORIES: THE SIZZLE OF RESILIENCE

For every failure, there are shining examples of restaurants that have defied the odds through smart strategy and innovation.

Shake Shack

What began as a hot dog cart in New York’s Madison Square Park blossomed into a global burger empire. Its emphasis on quality ingredients, simple menus, and strong branding exemplifies how focus and authenticity can drive success.

Sweetgreen

This fast-casual salad chain tapped into healthconscious trends, offering fresh, locally sourced ingredients and a tech-savvy ordering process. Its rapid growth reflects the power of aligning with consumer values.

Chick-fil-A

Famous for its customer service and signature chicken sandwiches, Chick-fil-A demonstrates the importance of operational excellence and a consistent brand identity.

THE FINAL COURSE: CRAFTING A RECIPE FOR RESILIENCE

The restaurant industry is not for the faint-hearted, but it remains a powerful avenue for those with passion, creativity, and determination. Success demands more than culinary skill—it requires rigorous planning, adaptability, and an unrelenting focus on quality and customer experience.

Aspiring restaurateurs must approach the industry with open eyes and a clear strategy. While the challenges are daunting, the rewards—both personal and professional—can be immense for those who persevere.

In the end, the allure of crafting a memorable dining experience, serving delicious food, and creating a gathering place for the community continues to inspire dreamers to take the leap. For those who rise to the challenge, the satisfaction of building a thriving restaurant is a reward like no other.

It may be a tough recipe, but with the right ingredients, the dream of culinary success is well within reach. i

The Midas Touch, or Not So Much? The Mythical Metal vs Shares

Gold is the age-old standard that once underpinned our moderncurrencies;whatvaluedoesithaveinphysicalform?

In times of economic uncertainty and geopolitical turbulence, gold traditionally serves as an icon of stability.

The weighty precious metal has long been a symbol of wealth, a means of commerce, and a hedge against inflation. As investors look for safe havens for their holdings, gold has always been an attractive option.

But when it comes to investing in gold, there is a vital decision to be made: actual, physical gold — or gold shares? Each option has promise and problems, those of converting gold into cash, and a complex regulatory landscape.

Gold has a fascination that extends across cultures and ages. Its scarcity, durability, and widespread acceptance distinguish it as a rare asset. Investors are lured to gold for a number of reasons.

It holds its value over time, offering a hedge against the eroding effects of inflation. When there are geopolitical tensions or economic downturns, the price of gold tends to rise. Its low correlation with other asset classes, such as equities and bonds, makes it a great diversification choice.

Countries and cultures around the world have historically embraced gold as an enduring standard, and one that has backed currencies with tangible value. Although the gold standard itself has been abandoned, the yellow metal continues to affect currency values and economic policies.

Gold is highly valued in various nations — India and China, particularly — especially during festivals and weddings.

INVESTMENT IN PHYSICAL GOLD

Gold assets such as coins, bars and jewellery have beauty and heft. Physical gold is a tangible asset. There’s satisfaction and security in such an investment.

The downside is security: it presents storage problems — which might increase costs. The risk of theft or loss is real, and of concern.

We’re all familiar with ingots from legends, books, and films. Today, they come in sizes ranging from grammes to kilogrammes and even larger bars; the bigger the bar, the cheaper the premium — the trade-off is in diminished liquidity.

Popular coins include the American Eagle, the Canadian Maple Leaf, and South Africa’s Krugerrand. While visually appealing and easier to conceal, gold jewellery has additional craftsmanship expenses, making it a less efficient investment.

TREASURE CHESTS?

Home storage means the use of safes or secret chambers; theft is, potentially, a constant danger.

Safe deposit boxes are secure, but banks may not be insured for precious metals. Specialised storage facilities provide security and insurance — but come with a premium.

THE LIQUIDITY ISSUE

Converting actual gold into cash can be relatively simple, but again, there are challenges. Finding a buyer is one. Options include jewellery stores, pawn shops, online gold purchasers, and individual collectors. Buyers will want to evaluate gold's purity, weight, and condition.

Given the buyer's desire for profit, prices may be lower than the market rate. Transactions must be carried out safely, especially when dealing with significant amounts.

PREMIUMS AND COSTS

Manufacturing costs, dealer mark-ups, and delivery charges must be taken into account — along with storage and insurance.

It’s crucial — and theoretically simple — to ensure that the gold is pure and real. Counterfeit gold is out there, so using trusted vendors is a must.

INVESTING IN GOLD STOCKS

Shares gold-related financial instruments: mining stocks, ETFs, and mutual funds. These, too, come with pros and cons.

Investing in mining companies provides leverage; when gold prices climb, the companies' earnings can grow in tandem, sometimes dramatically.

The cons include the fact that mining equities are vulnerable to operational risks, management decisions, and unpredictable geopolitical variables.

ETFs AND ETNs

ETFs (exchange-traded funds) such as SPDR Gold Shares (GLD) hold actual gold, and offer exposure

to gold prices without physical ownership. These provide liquidity, simplicity of trading, and reduced transaction costs. But ETFs don’t grant actual ownership of gold. There’s reliance on the fund's management, as well as faith in the financial system.

ETNs (exchange-traded notes) are bank-backed debt securities that track gold prices, but expose investors to credit risk.

GOLD MUTUAL FUNDS

These funds invest in a diverse range of mining companies, distributing risk throughout the industry. Leverage and derivatives, options and futures allow investors to speculate on price changes, boosting possible gains — and increasing losses. Because of their speculative nature, derivatives are complex and not suitable for all investors.

Gold shares are liquid; they can be purchased and traded during market hours with swift settlement. Physical gold is less liquid, and selling it entails finding a trusted buyer, negotiating the price, and physically moving the gold from place-to-place.

Gold shares have lower transaction costs, but may include management fees and expense ratios.

Physical gold incurs higher up-front costs due to fees, as well as storage and insurance expenses.

REGULATIONS AND TAXATION

Gold shares are subject to capital gains tax, with rates depending on holding periods and local laws. Physical gold is also subject to capital gains tax, which varies according to jurisdictions.

Gold shares are as vulnerable to market risks as other investments. Physical gold is at risk of theft or loss and requires secure storage methods. Six of one, half-a-dozen of the other. Shares in gold

are accessible through broking accounts, easing acquisition and exit positions. Physical gold must be purchased from dealers and delivered and stored in accordance with logistics and riskperception.

CONVERTING INGOTS TO CASH

This requires several steps, from finding a buyer to performing due diligence. Purchasers must ensure they are dealing with someone respectable who offers reasonable prices.

Buyers will assess the gold's purity, weight, and condition. Having certificates of authenticity might make the procedure easier, and it’s vital to understand market prices — and be willing to negotiate. It’s best to gather quotes from multiple purchasers to get the best value.

Before releasing the gold, verify the payment methods and ensure that they have been received.

REGULATIONS FOR INVESTMENTS

Understanding the regulatory structure is critical for physical gold and gold stocks. To avoid money laundering, large cash transactions must be reported to authorities.

Import and export controls come into play when taking gold across borders; it may be subject to declaration, taxes — or outright bans. Regulations require dealers to provide truthful information about gold purity and weight.

GOLD SHARE REGULATIONS

Securities laws oversee investments in shares to ensure openness and fairness. Broking restrictions are in place to safeguard investors, brokers and financial advisors.

In the United States, actual gold is taxed at a maximum of 28 percent for long-term capital

gains. Shares are taxed at regular capital-gains rates, which may be lower than the collected rate for actual gold. Some states levy sales taxes on gold purchases unless specific conditions are met.

Dealers and financial institutions must follow anti-money-laundering (AML) and know your customer (KYC) compliance, which impacts the buying and selling of gold.

MARKET DYNAMICS

Understanding the elements that drive gold prices can aid investors in making informed selections. Gold frequently appreciates as a hedge against rising inflation. Lower interest rates drop the opportunity cost of owning nonyielding assets.

Political instability and international conflicts attract investors to gold. Gold is normally valued in US dollars, so a lower currency can boost gold demand.

CENTRAL BANK POLICIES

The purchase and selling of gold by central banks can have an impact on world supply and demand. It’s worth studying its performance in times of economic crisis. In 2008, gold prices soared as investors sought safety. Increased demand caused shortages and higher premiums.

During the Covid-19 pandemic, there were record highs: gold exceeded $2,000 per ounce. The significant inflows into gold ETFs demonstrated investors' appetite for liquid assets. In short, gold prices can be volatile, and driven by world events beyond anyone’s control.

Holding gold does not provide income like dividends or interest. Shares are reliant on financial institutions.

ETHICAL CONCERNS

The environmental effects of mining are a concern, and gold mined in war zones can be used to finance violence.

Platforms and tech such as blockchain enable investors to purchase fractional ownership of actual gold held in secure vaults. Tokenising gold on the open ledger improves transparency and accessibility.

Investing a predetermined amount on a regular basis can help to avoid market timing concerns.

Financial consultants frequently suggest devoting five to 10 percent of a portfolio in gold. It can be used as a hedge against currency depreciation and stock market falls.

Combining actual gold with gold shares helps balance rewards and reduce dangers.

Making the right choice is tricky, based on investment goals. For long-term security, physical gold may be preferable. For liquidity and growth, shares may be more appropriate.

Investing in gold can be a wise way to preserve and increase wealth. Understanding the distinctions between real gold and gold shares is vital for making educated decisions. Before investing, speak with financial advisors and undertake extensive studies to ensure that your investment strategy matches your financial goals and risk tolerance.

Whether you have gold in your hands or in your portfolio, travelling this path demands careful thought. With a good strategy, gold can strengthen a portfolio, but gold, like any other investment, carries inherent dangers. Due diligence is key. i

Opportunities

in the Middle

East: Unlocking the Golden Gates

TheMiddleEastistransformingintoahubofopportunity.From tourism to technology, renewable energy to retail, businesses with theinsighttonavigatethisdynamicregionareprimedtosucceed.

Riyadh, Saudi Arabia: King Abdullah Financial District

The Middle East is undergoing a profound transformation. Economic diversification initiatives, a burgeoning young population, and strategic investment are reshaping the region into a magnet for innovation and enterprise. While challenges persist, its strategic position at the crossroads of global trade and its commitment to modernisation make it an increasingly attractive destination for businesses worldwide.

As we enter a new year, this article explores the Middle East’s most promising sectors, shedding light on trends and opportunities that businesses can leverage to thrive in this vibrant region.

TOURISM AND HOSPITALITY:

A NEW ERA OF EXPERIENTIAL TRAVEL

Tourism in the Middle East is booming, fuelled by demand for both luxury and cultural immersion. The UAE, Saudi Arabia, and Qatar are heavily investing in infrastructure, from opulent hotels to iconic museums and entertainment venues.

Beyond traditional luxury, experiential travel is on the rise. Tourists now seek immersive adventures—eco-tourism, cultural deep dives, and bespoke experiences. Businesses that tap into this demand with innovative, personalised offerings that celebrate the region’s heritage and landscapes will find significant growth potential.

TECHNOLOGY AND INNOVATION: THE DIGITAL TRANSFORMATION

The Middle East is embracing technology with unprecedented enthusiasm. Investments in artificial intelligence, cybersecurity, fintech, and cloud computing are positioning the region as a global tech hub.

E-commerce, social media, and online gaming are booming, driven by a young and digitally savvy population. Initiatives like Saudi Vision 2030 and Smart Dubai encourage innovation and entrepreneurship, fostering a supportive environment for tech startups and attracting international investors.

RENEWABLE ENERGY: POWERING A GREEN REVOLUTION

The Middle East’s renewable energy sector is poised for exponential growth. With abundant sunlight and vast desert landscapes, countries like Saudi Arabia and the UAE are investing in solar and wind power to diversify their energy sources.

This transition creates opportunities for companies involved in clean energy technologies,

"Beyond traditional luxury, experiential travel is on the rise. Tourists now seek immersive adventures—ecotourism, cultural deep dives, and bespoke experiences."

from manufacturing to maintenance. Additionally, there’s rising demand for sustainable solutions in water management, recycling, and green construction, further broadening the scope for innovation.

INFRASTRUCTURE AND CONSTRUCTION: BUILDING TOMORROW

Infrastructure development is at the heart of the region’s transformation. Mega-projects such as Saudi Arabia’s NEOM and Dubai’s Expo 2020 site exemplify the demand for advanced construction methods and sustainable practices.

Urbanisation and population growth are driving the need for transportation networks, affordable housing, and public infrastructure. These trends present opportunities for construction firms, engineering companies, and material suppliers eager to contribute to this ambitious vision of the future.

HEALTHCARE AND WELLNESS: MEETING EVOLVING NEEDS

Healthcare modernisation is a priority across the Middle East. Governments are investing in stateof-the-art facilities and wellness programmes, creating opportunities for pharmaceutical companies, medical device manufacturers, and healthcare providers.

Medical tourism is also gaining momentum. Countries like the UAE and Jordan attract international patients seeking specialised treatments and wellness services. Telemedicine and preventative healthcare solutions are equally in demand, addressing accessibility challenges and promoting healthier lifestyles.

EDUCATION AND TRAINING: INVESTING IN PEOPLE

Recognising the importance of human capital, the Middle East is investing heavily in education and training. This creates opportunities for institutions offering early education, higher learning, and vocational training.

The shift to online and digital education technologies has further opened doors for edtech companies, as the region embraces innovative approaches to learning. Providing tailored solutions for diverse educational needs ensures a role in shaping the Middle East’s skilled future workforce.

RETAIL AND E-COMMERCE: A THRIVING CONSUMER MARKET

The Middle East’s retail and e-commerce sectors are thriving, driven by a growing middle class and high disposable incomes. Shopping centres remain cultural hubs, while online retail is growing rapidly among younger consumers.

Businesses that integrate both online and offline shopping experiences and cater to local tastes are well-positioned for success. Innovations in payment systems, logistics, and personalised shopping experiences are helping to redefine retail in the region.

NAVIGATING CHALLENGES FOR LONG-TERM SUCCESS

While the opportunities in the Middle East are vast, businesses must address unique challenges to thrive. Navigating complex regulatory environments, understanding cultural sensitivities, and forming local partnerships are essential.

Geopolitical uncertainties and economic volatility also demand careful risk assessment and strategic planning. Companies that demonstrate commitment to ethical practices and align with regional values will be best placed to establish lasting success.

UNLOCKING POTENTIAL IN A TRANSFORMING REGION

The Middle East is more than a land of oil wealth and historic splendour—it is a dynamic marketplace with untapped potential. From tech and tourism to healthcare and renewable energy, opportunities abound for businesses ready to invest and innovate.

By understanding the region’s unique dynamics, respecting its cultural nuances, and aligning with its ambitious vision, businesses can unlock unprecedented opportunities. The Middle East is open for business, and the rewards are immense for those who embrace its promise. i

"By understanding the region’s unique dynamics, respecting its cultural nuances, and aligning with its ambitious vision, businesses can unlock unprecedented opportunities."

Butcher, Baker, Candlestick Maker:

Are the Skilled Trades Safe from AI?

Frommanufacturingtocustomerservice,artificialintelligence ischangingtheworkingworld.Arecarpentry,plumbing,and electricalworkimmune?

The artificial intelligence boom has created an undeniable workplace revolution. With algorithms and machine-learning, AI is taking over entire industries, snapping up mundane operations in manufacturing, finance and customer service.

The fear of job losses is never far from our minds. AI is even closing in on white-collar professions like law, medicine, finance. It can write contracts, analyse medical data, and optimise investment portfolios. Robots on factory floors are old news, but today they can do even the specialised jobs that remained. So, as the technology tide rises, are skilled crafts such as carpentry, plumbing and electrical work safe? Or will robots eventually replace butchers, bakers, and (let’s face it, already obsolete) candlestick makers?

EXPANDING REACH OF AI

To answer that, we must first understand the current — and constantly changing — state of AI. Many industries prefer technology to humans; it’s faster, more efficient, more accurate. Selfdriving vehicles are on the verge of transforming the logistics and transport sectors. Chatbots handle customer complaints or enquiries, and even creative industries such as journalism, music and art are falling victim to algorithmic content generation.

For employers, the appeal is obvious. AI works around the clock, never tires, and seldom makes mistakes. That saves money, increases productivity and streamlines operations. More sectors across industries are feeling pressure to adopt AI — or risk falling behind.

ALL IS NOT LOST

Despite these advances, AI still struggles to compete with human performance at certain activities. Jobs that demand physical dexterity, on-the-spot problem solving and exquisite workmanship have so far shown to be resistant. This is especially true of trades in which each project has unique challenges: leaking pipes, shorting switches or bespoke woodwork projects.

One of the reasons skilled trades may be resistant to AI is the nature of their specialisation. Electricians, plumbers and carpenters rely on practical skills, on-the-job experience, and

"While AI and robotics are making progress in disciplines such as surgery and manufacturing, they have yet to gain the dexterity, spatial awareness, and complex decision-making abilities needed here."

adaptability. Each challenge is unique, and AI thrives at routine, data-driven activities. It is stumped when confronted with the unexpected.

Fixing a leaking tap or a broken water pipe requires more than a set of instructions. It involves knowledge of individual systems, materials, and the underlying issues.

The setting is likely to be unpredictable: the plumber may have to operate in cramped conditions and cope with corroded pipes or antiquated installation systems. While AI and robotics are making progress in disciplines such as surgery and manufacturing, they have yet to gain the dexterity, spatial awareness, and complex decision-making abilities needed here.

Another vital component in our favour is “the human touch”. Customers hire tradespeople for their ability to appraise a situation, provide personalised advise, and make decisions that an algorithm simply can’t. A carpenter or cabinet-maker works with homeowners to understand personal visions, to conduct revisions and make recommendations based on price, space, and resources. AI may yet learn to provide similar insights, but it’s some way from understanding the creative and intuitive aspects of craftsmanship.

ROBOTS IN CONSTRUCTION

While many trades appear to be immune to the immediate threat of automation, AI is making inroads into construction. Robots can master bricklaying, concrete pouring, and painting — with greater precision and speed than humans. For large-scale projects, the cost reductions

can be significant. There won’t be any quibbles about smoke breaks, benefits, or overtime.

Take SAM, the Semi-Automated Mason. This bricklaying robot can lay thousands of bricks a day, or night, significantly faster than people could. The lines will be plumb and perfectly level. While SAM currently requires some human supervision, its very existence foreshadows a grim future with humans in minor roles. Will there always be a need for human labour? Many experts believe that robots will change jobs rather than destroy them. They can do repetitive, physically demanding activities and leave us humans to focus on the fun and creative bits. Tradespeople who can work alongside and supervise robotic systems are likely to remain in high demand.

APPRENTICESHIPS AND TRAINING

While AI may not be able to entirely replace the human workforce, it can — and does — teach and educate future workers. AI simulators and virtual-reality tech are showing apprentices the way around their toolboxes. They enable learners to hone their skills in a safe, controlled setting before turning them loose on the real world.

AI can also help to diagnose problems and formulate solutions. Plumbers of the future may use it to analyse video data from a pipe inspection, allowing them to discover clogs or weak spots that might otherwise go unreported. Electricians can deploy AI-powered sensors to detect abnormalities in a circuit — before failure occurs. In this respect, AI enhances rather than replaces trades.

However, this poses yet another significant question. As AI becomes incorporated into the training and diagnostics worlds, will the need for hands-on human experience decrease? Over-reliance on AI will lead to “deskilling”: tradespeople reliant on robots. Who can use an abacus, now that calculators exist? If the human element is eliminated from the learning process, will future tradespeople lose the critical thinking skills?

THE GREAT REPLACEMENT

Advances in robotics and machine learning have moved into unexpected sectors, such as medicine and law. In 2023, an autonomous robot completed its first surgical operation with no human aid whatsoever. Even the most

demanding and dexterous tasks seem to be within AI's grasp.

If AI can remove an appendix, could it eventually learn how to wire a home or make custom furniture? The possibility is real. Future systems could be fitted with enhanced sensors that grant spatial awareness, and adaptive algorithms that empower them to explore complicated situations, overcome unanticipated difficulties, and replicate the precision of human artisans.

Even if technology advances to this point, humans will almost certainly continue to play a role in deal-making. Emotional intelligence, creativity and cultural awareness are still beyond the scope of pure AI. A robot may be able to install a boiler, but can it console a worried homeowner when something goes wrong, or change its plans based on aesthetic preferences?

THE FUTURE OF WORK

It all boils down to how society responds to the integration of this technology. Industrialisation didn’t eradicate skilled labour, as many feared it would. A shift of focus is more likely than the total elimination of jobs. Those that require

adaptability and intuition could well live on, even if the more repetitive or physically demanding components are automated.

For tradespeople, the future may include education on how to collaborate with AI, rather than how to compete with it. Those who can adapt will be in a better position. As employment is increasingly automated, the relative scarcity of experienced workers may increase earnings and make them more appealing to future generations.

CHANGE IS COMING

But certainly, few businesses are immune to disruption. Skilled trades appear to be among the most robust vocations; the butcher, baker, and candlestick maker may not have to worry about being replaced just yet. But they should be watchful.

They may be able to secure their livelihoods while also elevating their professions by combining their hands-on experience with the efficiency of technology. As the digital transformation grinds on, the capacity to innovate and adapt remain our saving graces — in any business. i

> The AI Economy Demands Leadership: Why Every C-Suite Needs a Chief AI Officer

By 2025, 35% of large organizations will have a Chief AI Officer (CAIO) reporting directly to the CEO or COO (Gartner). Leadership—not technology—will determine the winners and losers in the AI economy. While AI promises unprecedented gains in productivity and economic value, its true potential is unlocked not merely through algorithms or automation, but through a fundamental reimagining of leadership, operational models, and organisational structures. At the forefront of this transformation stands the CAIO—a role that redefines executive leadership and equips organisations to thrive in the AI era.

The CAIO is more than a functional leader; they are the architects of enterprise-wide change. Their mandate is to embed AI into the very fabric of the organisation, transforming decision-making, operations, and culture. Success in the AI economy will depend on how effectively the CAIO enables the entire C-Suite to harness AI’s full potential and align it with long-term business objectives.

THE ECONOMIC IMPERATIVE OF AI TRANSFORMATION

The AI economy presents a vast opportunity, with the potential for significant financial and strategic returns. Organisations that effectively implement AI can unlock revenue growth, reduce costs, enhance customer satisfaction, and mitigate risks. The Total Economic Impact (TEI) framework provides a holistic view of AI’s value, incorporating operational efficiencies, financial benefits, and competitive differentiation.

Estimates from Bain & Company suggest that generative AI alone could drive a 20% EBITDA boost in targeted use cases. McKinsey projects that AI-powered automation could increase workforce productivity by 35–70% in the near future. However, these benefits will only materialise if AI is treated as a strategic transformation rather than a mere technical upgrade. This is where the CAIO’s leadership becomes indispensable—ensuring AI initiatives are enterprise-driven, not siloed experiments, and fostering a culture that embraces AI-driven innovation.

THE CHIEF AI OFFICER: REWIRING THE C-SUITE FOR AI

The CAIO is a transformative force, reshaping not just how organisations operate, but how their leaders think, collaborate, and make decisions. In the AI economy, success requires an AI-enabled C-Suite where every executive integrates AI into their domain to achieve functional excellence and strategic alignment.

THE CAIO’S THREE CORE MANDATES

1. Strategic Integration

The CAIO ensures AI initiatives are directly aligned

with business strategy, prioritising high-impact use cases over fragmented experimentation. By working across functions, they drive synergy, eliminate inefficiencies, and establish a unified AI vision that maximises enterprise value.

2. Capability Development

To enable widespread AI adoption, the CAIO fosters AI literacy among executives and employees alike. By collaborating with the CHRO and CFO, they drive workforce upskilling initiatives and ensure AI investments translate into measurable ROI.

3. Responsible AI Governance

As AI adoption accelerates, ensuring trust and accountability is paramount. The CAIO establishes governance frameworks that address risks related to data privacy, bias, and algorithmic transparency. Working closely with the Chief Risk Officer, they safeguard AI ethics and regulatory compliance.

REIMAGINING C-SUITE ROLES IN THE AI ECONOMY

AI is not just a tool—it is a transformative force that redefines the scope and responsibilities of every leadership role. The CAIO is central to guiding this shift across the executive team:

• CEO: Leads the AI-driven cultural and strategic transformation, ensuring AI is embedded into the organisation's vision and decision-making processes.

• CFO: Manages AI-driven financial models, balancing capital investment with operational efficiencies while leveraging AI-powered analytics.

• CHRO: Addresses workforce transformation, closes the AI skills gap, and fosters a culture of continuous learning and talent adaptability.

• CMO: Uses AI for hyper-personalised marketing strategies, optimising customer engagement and brand differentiation.

• COO: Integrates AI into operational processes, building AI-driven knowledge platforms that enhance efficiency and resource allocation.

• CIDO/CTO: Develops agile, scalable digital infrastructures that support enterprise-wide AI adoption.

• CRO: Implements Responsible AI practices, mitigating risks and ensuring compliance with evolving AI regulations.

Each role evolves to contribute to a cohesive AI-native strategy, with the CAIO acting as the architect of transformation.

THE CAIO AS THE TRANSFORMATION OFFICE LEADER

Leading AI-driven transformation is not a one-time initiative—it is a continuous process requiring strategic direction, financial discipline, and cultural integration. As head of the Transformation Office (TO), the CAIO orchestrates the organisation’s most critical AI initiatives, ensuring alignment, scalability, and accountability.

THE CAIO’S ROLE IN THE TRANSFORMATION OFFICE

• Strategic Alignment: AI initiatives must support long-term business objectives, ensuring AI is a driver of enterprise-wide value creation.

• Capability Development: Establishing the right talent pipeline, infrastructure, and governance frameworks is essential for sustainable AI innovation.

• Responsible AI Governance: Embedding ethical AI practices builds trust among stakeholders, mitigating risks related to bias, security, and regulatory compliance.

By integrating AI transformation into the organisation’s core strategic planning, the CAIO ensures AI’s impact extends beyond isolated use cases, driving systemic change.

LEADERSHIP IN THE AI ECONOMY

Thriving in the AI economy demands more than technical expertise—it requires visionary leadership, organisational agility, and a redefined C-Suite. The Chief AI Officer is the catalyst for this transformation, ensuring that AI is not merely adopted but fully harnessed to drive competitive advantage.

By aligning AI initiatives with business strategy, fostering enterprise-wide AI capability, and embedding Responsible AI governance, the CAIO empowers organisations to navigate the complexities of the AI-driven future with confidence. Those who embrace this leadership evolution today will be the market leaders of tomorrow. i

By Bashar Kilani Digital Economy Advocate, Managing Partner at Boyden & Founder of AI360 Innovations

Long Road to Autonomy: Will Self-Driving Cars Rule the Road?

Isn’t owning a car all about freedom and individuality?Asurprisingnumberofpeopleseem moredrawnbyconvenienceandsafetyfactors.

Consider a future where commuting is stress-free, traffic accidents are virtually a thing of the past, and mobility is available to all.

This is the promise of self-driving cars, the breakthrough technology that promises to transform the world of personal transport. Autonomous vehicles can theoretically improve safety and cut traffic congestion — but will they ever dominate the road?

With the technology comes (as always) legal challenge, infrastructure requirements, and the need to sway public opinion.

IN THE DRIVING SEAT

Self-driving technology has made significant progress in recent years. The Society of Automotive Engineers (SAE) has established six levels of automation, from zero (or Level 0: no automation) to Level 5.

Currently, most commercially available “autoautomobiles” feature advanced driver assistance systems (ADAS) that fall into Levels 1 and 2. This includes adaptive cruise control and “lanekeeping assist”. But several businesses are testing cars with Level 3 and 4 automation, which can handle the majority of driving responsibilities.

Waymo, Cruise and Tesla are at the forefront of this revolution. California-based Waymo has started a completely autonomous ride-hailing service in a few US cities, while Cruise is testing self-driving cars on challenging metropolitan streets. Tesla's mass-market EVs are becoming more automated, too, with “Autopilot” and “Full Self-Driving” modes.

Despite these advances, major challenges persist. Self-driving cars use a complex network of sensors to interpret their environment, including cameras, radar, and lidar. These must be capable of accurately detecting and interpreting objects in a range of environments, including rain, snow, and fog.

The AI systems “behind the wheel” must be capable of making split-second decisions in

"Public acceptance and safety concerns have a tremendous impact on the regulatory landscape."

complicated and unpredictable scenarios. Developers continue to prioritise safety and dependability.

REGULATORY AND LEGAL LANDSCAPE

While tech fuels development, widespread adoption will depend on legislative and legal decisions. Countries and regions take different steps to regulation, resulting in a patchwork of rules and criteria. Self-driving cars may use public roads for testing and restricted deployment in some areas, but not in others.

Creating unambiguous liability frameworks is the Big One. Who is responsible in the event of an accident involving a self-driving car: the manufacturer, the software developer, or the vehicle's owner? Addressing these concerns is critical for safe, widespread adoption.

Insurance standards must be updated, too; traditional structures may not be appropriate — liability for accidents may transfer from the driver to the vehicle. To meet such specific issues, new insurance products and pricing methods will be needed.

Public acceptance and safety concerns have a tremendous impact on the regulatory landscape. Governments and authorising bodies must strike a balance between promoting innovation and maintaining the safety. Clear norms and standards are required to boost public confidence and ensure a seamless transition to a self-driving future.

TECHNOLOGY REQUIREMENTS

The effective integration of self-driving cars into

our daily lives is dependent on the accompanying infrastructure and technology. To operate securely and efficiently, autonomous vehicles require a powerful, interconnected network.

High-definition maps, significantly more detailed than current GPS systems, are required, and must include precise information on road markings, lane configurations, traffic signs, and speed limits. Creating, updating and maintaining these comprehensive maps on a worldwide basis is a challenge.

Advanced communication networks are needed so that self-driving cars can communicate with other vehicles, traffic infrastructure, and cloudbased applications. Vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communication allow for real-time data transmission. These developments should improve safety and traffic flow. The deployment of 5G networks, as well as the development of dedicated short-range communication technologies, will help seamless communication.

Intelligent traffic management systems are another critical component. These optimise traffic flow and alleviate congestion by combining data from numerous sources, such as linked automobiles and traffic sensors. They can increase efficiency by co-ordinating the routes of self-driving vehicles.

Numerous technological challenges remain. Sensor technology must advance if it is to provide reliable perception under all settings. AI systems

must become more sophisticated to handle unpredictable road conditions and make safe decisions — in real time.

Cybersecurity is another issue; self-driving cars can be hacked with malware. Ensuring the integrity of their systems is critical for safety.

PUBLIC PERCEPTION

Acceptability in the public eye remains a critical variable. Surveys have revealed conflicting sentiments; some are enthusiastic about the benefits, others concerned about safety, job displacement, and the personal freedom of conventional transport.

Although self-driving cars have the potential to reduce accidents, questions remain regarding their capacity to handle unforeseen events. Building trust in the technology — and demonstrating its safety record —will be obligatory in mitigating these worries.

And what of the other perceived advantages? Many people foresee increased convenience, mobility for the elderly and disabled, and less traffic congestion. But fears about job displacement in the transport industry remain. Truck- and taxi drivers, as well as other professions that rely on driving, may face the same job-loss challenges that AI has brought to other fields.

Addressing these issues will be crucial to ensuring a fair and equitable transition, but ultimately, public acceptance and adoption will be determined by a variety of criteria.

Self-driving cars are a reality, and becoming more common on our roads. As their benefits become clearer, public perception is likely to shift, opening the way for widespread adoption.

EXPERT OPINIONS

Predicting an exact timescale for the transition is tricky. Experts provide a range of projections; some, fuelled by industry optimism, predict that completely autonomous vehicles will rule our roads within 10 years. Others warn of the myriad hurdles that remain: regulatory barriers, infrastructure construction, public acceptance, and the requirement for comprehensive testing and validation. Many believe it will be several decades before self-driving cars become the norm.

Several factors may expedite things. Breakthroughs in AI and sensor technologies could cover safety and reliability fears. Supportive regulatory regimes and infrastructure development may help. The increasing demand for ride-hailing services, as well as the potential for cost reductions, may promote commercial adoption.

Public scepticism, and the need to handle potential job displacement, may take the selfdriven foot off the accelerator. Whatever the case, it seems that self-driving cars will be an unavoidable part of our future. As technology advances and society adjusts to a new paradigm, expect to see more autonomous vehicles on a road near — or under — you. i

Tesla's Pioneering Path

No discussion about self-driving cars would be complete without addressing Tesla.

The EV manufacturer, led by Elon Musk, has been a disruptive force in the automobile industry from the word Go. It is now pushing the limits of what is possible in autonomous technology.

Tesla's Autopilot system, a package of enhanced driver-assistance capabilities, has been widely accepted by its users — and provides a glimpse of what a self-driving world would be like.

The company's more ambitious Full Self-Driving (FSD) capability, still in experimental testing, aspires for greater autonomy. Tesla’s tech relies primarily on cameras and neural networks; some of its rivals use lidar and radar.

While contentious, all these techniques have the potential to cut the cost and increase the accessibility of self-driving technology.

Tesla's audacious vision and rapid development of self-driving features has prompted enthusiasm — and criticism. Some praise Musk and his company for ingenuity, and contribution to the industry; others express fears about safety and technological readiness.

Regardless of one's standpoint, Tesla's contribution to the field cannot be denied. Its progress will be keenly monitored by both admirers and detractors. i

Latin America: Rising Tech Titans Revolutionise Innovation

Latin America is undergoing a technology-driven transformation. Across finance, e-commerce, agriculture, and healthcare, the region’s innovators are addressing unique challenges and cementing its place in the global digital economy.

Latin America has long captivated the world with its rich culture, vibrant communities, and diverse natural resources. Now, the region is gaining recognition as a hub for technological innovation. As internet connectivity expands and education improves, a generation of entrepreneurs is seizing the opportunity to solve regional challenges with techdriven solutions.

This transformation is not happening in isolation. Venture capital inflows have surged, reflecting confidence in Latin America’s startups and their potential to disrupt traditional industries. From fintech and e-commerce to agriculture and healthcare, the region is proving it has the talent and vision to lead on the global stage.

FINTECH LEADING THE WAY

Financial technology is reshaping Latin America’s economies, addressing longstanding issues of access and inclusivity. In a region where a significant portion of the population remains unbanked, companies like Brazil’s Nubank and Argentina’s Ualá are democratising finance. Offering digital-first banking services, these firms are enabling millions to save, borrow, and transact with ease.

Mexico’s Konfío is another standout, focusing on small businesses—an often-overlooked segment. Its data-driven platform offers entrepreneurs easy access to credit, empowering them to grow their operations. Meanwhile, Bitso, a leading cryptocurrency platform, simplifies cross-border payments and accelerates the adoption of digital currencies.

These fintech disruptors are levelling the playing field, giving individuals and businesses the tools to thrive while driving economic growth across the region.

THE E-COMMERCE BOOM

E-commerce in Latin America is thriving, driven by a young, tech-savvy population and increased mobile connectivity. Mercado Libre, the region’s largest online marketplace, has become a lifeline for small businesses, allowing them to reach a broader audience. The platform’s logistics and payment solutions have made online shopping more accessible, even in remote areas.

Companies like Rappi and iFood are redefining convenience in food delivery, while platforms such as Platzi are expanding access to education through online learning. These initiatives reflect a broader trend: Latin American companies are leveraging technology to meet the evolving needs of their communities.

"Financial technology is reshaping Latin America’s economies, addressing longstanding issues of access and inclusivity. In a region where a significant portion of the population remains unbanked, companies like Brazil’s Nubank and Argentina’s Ualá are democratising finance."

AGRICULTURE’S DIGITAL SHIFT

Agriculture, one of Latin America’s most vital industries, is also undergoing a digital revolution. Startups like Agrofy in Argentina are leading the charge, employing AI and analytics to help farmers optimise crop yields and improve supply chain efficiency. These technologies not only boost productivity but also support sustainability, ensuring the sector’s long-term resilience.

Brazilian agritech firms are equally pioneering, with solutions that integrate satellite data, IoT devices, and machine learning to monitor soil health and weather patterns. Such innovations are positioning Latin America as a leader in sustainable agriculture, even as the sector faces climate and market challenges.

HEALTH TECH TACKLING GAPS IN ACCESSIBILITY

Access to quality healthcare remains a challenge for millions across Latin America. Technology is stepping in to address this gap. Platforms like Doctoralia connect patients with healthcare providers, streamlining appointments and improving accessibility. Telemedicine startups are also gaining traction, offering affordable and remote care solutions for underserved populations.

These innovations are particularly crucial in rural areas, where healthcare infrastructure is limited. By leveraging AI-driven diagnostics and mobile apps, health tech startups are ensuring that no one is left behind in the quest for better care.

TECHNOLOGY AS A TOOL FOR SOCIAL CHANGE

Latin America’s tech ecosystem is not just about profit—it’s also about purpose. Initiatives like Laboratoria exemplify this ethos, providing women with training in coding and technology. By equipping them with in-demand skills, these programs empower women to secure sustainable careers and drive innovation in their communities.

Meanwhile, data-driven platforms are addressing systemic issues such as poverty and inequality. By fostering collaboration among governments, NGOs, and private companies, these initiatives are demonstrating how technology can be a powerful tool for social impact.

OVERCOMING CHALLENGES TO REALISE POTENTIAL

Despite its progress, Latin America’s tech ecosystem faces significant challenges. Earlystage funding, infrastructure gaps, and a shortage of skilled talent remain obstacles to sustained growth. Additionally, navigating complex regulatory environments can hinder innovation and scalability.

However, these challenges also present opportunities. The region’s vibrant entrepreneurial spirit and growing support from global investors are creating a fertile ground for progress. Publicprivate partnerships, regional collaborations, and a focus on education and skills development are helping to build a robust and inclusive tech ecosystem.

A BRIGHT FUTURE AHEAD

Latin America’s tech titans are rewriting the region’s narrative, proving that innovation can thrive even in the face of adversity. By addressing local challenges with global solutions, they are not only transforming industries but also inspiring future generations of entrepreneurs.

As the region continues to embrace technology, its potential to shape the global digital economy becomes increasingly clear. From fintech to agritech, e-commerce to health tech, Latin America is leading with resilience, creativity, and ambition.

This journey is far from over. As connectivity deepens and investment grows, the region’s innovators are poised to make an even greater impact, ensuring that Latin America remains a vibrant and dynamic force in the digital age. i

"Latin America’s tech ecosystem is not just about profit—it’s also about purpose. Initiatives like Laboratoria exemplify this ethos, providing women with training in coding and technology."

EY Argentina: 2024 Argentine Economic Performance and 2025 Outlook >

By Sergio Caveggia

Argentina’s economy in 2024 was shaped by efforts to curb inflation, stabilise fiscal accounts, and implement tax reforms to boost competitiveness. Inflationary pressures eased slightly, tax revenues experienced shifts, and the Central Bank adopted a strategic remonetisation approach. Looking ahead to 2025, the government aims to deepen its economic restructuring, focusing on tax abrogation and investment incentives while maintaining fiscal discipline.

INFLATION AND MONETARY POLICY

Inflation remained a defining challenge throughout 2024, with monthly rates settling around 2.5% by year-end, a notable improvement yet still significant. The government is targeting a further reduction to approximately 1% per month by the end of 2025. Over the first 11 months of the year, the Consumer Price Index accumulated an increase of 112%, with the full-year total expected to reach 115%. A substantial devaluation of the official exchange rate in December 2023 played a key role in the initial slowdown, reinforced by strict fiscal and monetary policies. Authorities sought to maintain a controlled exchange rate while managing wage and tariff adjustments to prevent inflationary shocks.

TAX REVENUES AND FISCAL POLICY

Tax revenues fell by 5.5% in real terms during 2024, though December saw a modest rebound. The PAIS tax on foreign currency purchases contributed $7 billion, representing 1.1% of GDP, while the tax amnesty programme added another 0.4%. For 2025, budget projections anticipate a further decline in tax revenue as a share of GDP, although income tax, social security contributions, and fuel taxes are expected to provide some counterbalance. The administration remains committed to a zerodeficit fiscal policy, considering it a foundation for economic stability and investor confidence.

FOREIGN RESERVES AND CENTRAL BANK STRATEGY

The Central Bank of Argentina continued its remonetisation efforts, gradually increasing the money supply to support economic activity without triggering renewed inflationary pressures. Accumulating reserves remains a key priority, with the Central Bank targeting an increase of $7.3 billion in 2025. This objective depends on maintaining financial account surpluses and securing support from international financial institutions. Sustaining

these reserves will require careful navigation of inflation dynamics and external financial risks.

TAX ABROGATION AND ECONOMIC COMPETITIVENESS

A significant shift in 2024 was the removal of several taxes to stimulate economic growth. The most notable was the elimination of the PAIS tax on certain foreign currency transactions, effective from 23 December 2024. Originally introduced as an emergency measure, the tax had been in place for five years, imposing levies on various transactions, including imports, freight services, and international purchases. While its removal was widely welcomed, a reverse withholding regime for Income Tax and Tax on Personal Assets remains in place, applying a 30% rate to select cross-border transactions, including foreign currency purchases and international travel services. Businesses can credit these deductions against corporate income tax liabilities.

TAX AMNESTY PROGRAMME AND ITS FISCAL IMPACT

The 2024 tax amnesty programme played a crucial role in boosting government revenues, with substantial participation from taxpayers. By the latest estimates, the scheme facilitated the declaration of assets worth $23.3 billion, including $20.6 billion in cash holdings. More than 138,000 taxpayers took part, declaring investments, properties, bank accounts, and even cryptocurrencies. Among the disclosed assets, investments accounted for nearly half of the total value. The second phase of the amnesty, running from November 2024 to January 2025, introduces a 10% tax on capital disclosures. While the initiative provided a short-term fiscal boost, its long-term success will depend on more sustainable tax policies to ensure continued revenue generation.

KEY CHALLENGES FOR 2025

As Argentina enters 2025, policymakers face a complex economic landscape requiring decisive action. Inflation control remains a top priority, with authorities seeking to bring annual inflation down to approximately 20% without creating distortions in the exchange rate or delaying necessary tariff adjustments. The process of economic remonetisation must continue cautiously to avoid triggering renewed inflationary pressures.

Achieving a primary fiscal surplus comparable to 2024 is another crucial objective, though doing so without extraordinary tax measures, such as the PAIS tax, will demand disciplined

financial management. Managing public debt effectively will be essential, ensuring successful rollovers while maintaining positive net reserves. Reducing Argentina’s country risk to regain access to international capital markets is also a pressing concern, as investor confidence hinges on clear, consistent economic policies.

Further liberalisation of the financial sector remains on the agenda, with the removal of

Argentina: Rosario, Santa Fe

Central Bank restrictions on capital flows seen as a necessary step to facilitate investment. However, these reforms must be carefully sequenced to avoid destabilising financial markets.

PROSPECTS FOR GROWTH AND STABILITY

Argentina’s economic landscape in 2024 saw notable progress in inflation control, fiscal consolidation, and financial stabilisation.

Yet, significant hurdles remain, including the need to sustain investor confidence, re-enter global financial markets, and navigate external economic pressures. The administration’s 2025 agenda prioritises tax reforms, fiscal discipline, and measures to enhance competitiveness while preserving financial stability. The success of these efforts will shape Argentina’s economic trajectory in the years to come. i

ABOUT THE AUTHOR

Sergio Caveggia is a tax partner currently in charge of Transaction Tax area in Argentina. He joined EY Argentina in 1994 and has developed expertise over 26 years in international taxation and merger and acquisition matters. Sergio is also focus on servicing clients in the Private Client Services (PCS) area. He is highly experienced in inbound and outbound investments, buy side, sell side and restructuring services within the Transaction Tax area.

Sergio has served in a variety of industries and has also been involved in many due diligence procedures performed in the past over 20 years. He has given lectures in national universities and is a frequent speaker in tax seminars. He has also written several articles dealing with Argentina tax issues.

He is a Certified Public Accountant who graduated from University of Belgrano in Argentina. He obtained his Tax Specialist’s Degree at the University of Belgrano and has a postgraduate certificate in Business and Management from Universidad Catolica Argentina (UCA). He is also member of the Professional Council of Economic Sciences of Buenos Aires and the Argentina Fiscal Association.

Author: Sergio Caveggia

Good Things Come in Threes: Trio-Founded Firms Outstrip Stock Market

Companies with three founders are outstripping the stock market, a report finds.

Apple, Nvidia, Airbnb, Amex and Starbucks all have one very distinct thing in common: they were all founded by a trio.

Shares in companies with three co-founders have far outperformed the stock market as a whole over the last decade, according to a major new report from AI photo-editing software company Photoroom.

The Trindex Report found that trio-founded NASDAQ firms outgrew NASDAQ sixfold in the last 10 years.

The new report compares the stock market performance over both the last 10 and five years of the 17 public companies with three founders on three leading stock indices – the Dow Jones, the NASDAQ-100® and the S&P 100 – with the 200 plus companies of all kinds on the same indices. It finds that trio-founded companies in, for example, the NASDAQ-100® specifically grew six times faster than the NASDAQ-100® as a whole over the past 10 years.

The report also compiled a new combined stock index made up of all trio-founded companies across all three major stock indices (the NASDAQ, Dow and S&P). This “Combined Trindex” grew nine times faster than the Dow Jones over the last 10 years and seven times faster than the S&P 100. It also far outperformed these indices over the past five years.

“Many of the world’s top companies and brands – from Apple to Nvidia, YouTube to Airbnb –were founded by trios,” says Matthieu Rouif, Photoroom’s CEO/co-founder. “Is this just a coincidence or maybe something significant, backed by hard data? We wanted to find out.”

CRUNCHING THE DATA

Photoroom started by identifying 17 public companies with both a trio of founders and a listing on any of the three big stock indices: the Dow Jones, the NASDAQ-100® and the S&P 100. These 17 companies represent 8.2 percent of the total of all 207 different companies across all three indices (fewer than the gross totals of respectively 230 firms overall, or 20 trio-founded

"The Trindex Report found that trio-founded NASDAQ firms outgrew NASDAQ sixfold in the last 10 years."

ones, since some companies, like Apple, feature in more than one index).

Photoroom’s data scientist then compiled the “Trindex”, a new stock index comprising only listed companies founded by trios. He compiled, in fact, two different kinds of Trindex: first, a “Combined Trindex” or “Complete Trindex”, including all 17 trio-founded companies across all three indices, and then a second, narrower, more specific Trindex specific to each separate index: one for each of the three parent indices: the Dow, NASDAQ-100® and the S&P 100.

The NASDAQ-100® has the most trio-founded companies, with 11, followed by the S&P 100 with seven and the Dow with three.

Photoroom’s Trindex Report analysed stock marketing performance over the 10 years from July 1, 2014 to July 1, 2024 and, separately, the five years from July 1, 2019 to July 1, 2024. It found that the Combined Trindex, containing all 17 trio-founded companies, grew way more than any of the three parent indices over both periods.

Over the past 10 years, the Combined Trindex has grown over four times faster than the NASDAQ-100, seven times faster than the S&P 100 and nine times faster than the Dow.

Even without the input of such star performers as Apple and Nvidia, the remaining trio-founded companies still outperform the stock market in general.

The specific NASDAQ-100® Trindex, featuring only NASDAQ-100® companies founded by trios, outperforms the overall NASDAQ-100® more dramatically still. It grew over twice as fast as the parent NASDAQ-100® over the last five years and six times as fast over the last 10.

The standalone Dow Jones Trindex, comprising trio-founded companies in just the Dow, performed 70 percent better than Dow shares overall over the last five years and roughly twice as well over the past 10 years.

The only index to buck this pattern was the standalone S&P 100 Trindex, comprising just S&P 100 companies with three founders. It grew three-quarters as fast as the S&P 100 over the last five years and over two-thirds as fast over the last 10.

Rouif said: “The fact that companies with three founders have outperformed the stock market in recent years does not, of course, mean they will continue to do so in the future. But meanwhile, the findings of our new Trindex Report are striking.”

The figures suggest that companies with three founders have not only far outperformed the stock market but have been particularly effective in capturing the growth of more dynamic, highgrowth sectors like tech.

The venture capital firm First Round Capital noted in a recent annual “State of Startups” report that successful startups often had balanced teams with diverse skill sets, more likely to be present in teams of three or more founders. Data from Y Combinator, a leading startup accelerator, has likewise shown that successful startups often have multiple founders, with three being a particularly popular configuration due to the complimentary expertise they bring to the table.

This reflects a common wisdom that the tech startups most likely to succeed have three founders, with complementary expertise in, respectively, tech, marketing/sales, and business/finance. Photoroom has taken these insights a stage further and shown with its new Trindex Report, tracing the shares of 207 listed companies over 10 years, that three may indeed be a magic number of founders for a new business, especially in tech. Photoroom’s study suggests the best things in business, as in life, come in threes. i

New Wealth Wave: How the Rich Are Getting Richer — and Younger

From the heads of established firms to enterprising “cryptobros” making their presence felt, income levels are rising like a king tide. There’s a shift in the face of affluence, and on the faces of the earners: fewer wrinkles, for a start.

The rich have always become richer, but they’re also getting younger. The average age of billionaires is decreasing, and a new wave of wealthy individuals, many under 40, is taking the world by surprise. Whether it’s the industries driving this change or the energy of the individuals concerned, there are implications both good and bad.

The transformation is about more than just age; there have been tectonic shifts in where and how money is created. While industries such as real estate and finance continue to generate fortunes, “new” wealth is coming from the fields of technology, cryptocurrency, and disruptive innovation.

But just how do these young people accumulate massive riches at such an early age? What effect does it have on the global economy — and inequality? Several trends seem to be driving the emergence of this band of youthful, ultra-wealthy individuals.

THE DATA BEHIND WEALTH

Forbes noted that in 2022, the number of billionaires under the age of 40 had reached an all-time high. There were over 100 of them. Many have “self-made” status, rather than inheriting their riches. Compare this to the early 2000s, when the average billionaire was over 60, and had either inherited or progressively built their fortunes over decades.

According to Oxfam's 2023 inequality report, the richest one percent of the population rake in money at astounding rates — and account for two-thirds of all new wealth generated globally over the past decade.

The narrative — older, affluent people growing steadily richer — has changed. In the new chapter, money is coming from (or going to, depending on your perspective) generations born

"In contrast to established sectors such as manufacturing or real estate, tech companies have low entry barriers."

in the era of digital disruption, venture capital, and global platforms.

TECH TITANS

Technology is one of the clear driving forces. The digital revolution, right from the 1990s and the rise of the internet, has become a multi-trilliondollar font of finance. Entrepreneurs who grew up in this age are skilled at coding and making apps, know how to grow platforms on a global scale; they also use fresh, and wildly successful, business models.

Take Mark Zuckerberg as a glaringly obvious example. The co-founder of Facebook (now Meta) became a millionaire in his early 20s. He personifies the entrepreneurial mindset of millennials and Generation Z, the college dormto-garage-to-billion-plus user base in a few mouse clicks. The founders of Snapchat, Twitter and Spotify followed similar paths.

In contrast to established sectors such as manufacturing or real estate, tech companies have low entry barriers. A single creative app or disruptive platform is the modern equivalent of a hit-single for a supergroup in the ’60s and ’70s: massive revenues in a matter of years. Months, even.

With the internet's scalability and low overheads, young go-getters have used their “digital native” skills to launch billion-dollar businesses, often without any major investment.

CRYPTO AND DECENTRALISED WEALTH

An important part of the rocketship sending young people into the financial stratosphere is the growth of cryptocurrencies and decentralised finance. Bitcoin, launched in 2009, was the first to receive widespread attention, and thousands

of others — none quite as successful, to this point — have followed. Early adopters saw previously unthinkable gains.

Vitalik Buterin, the co-founder of Ethereum, was one. His was one of the world's most powerful blockchain networks. By the age of 27, Buterin had hit the magic million thanks to the warp drive of Ethereum-based technologies in decentralised finance (DeFi) and non-fungible tokens (NFTs).

The attraction of crypto stems from its accessibility. Its volatility, of course, can work both ways. Unlike stocks or real estate, which require significant up-front funds and knowledge, anyone with an internet connection and a minimal investment can start trading digital assets. Platforms such as Binance and Coinbase have democratised finance for a global audience, enabling youngsters from wildly varied backgrounds to accumulate riches in record time.

VENTURE CAPITAL: ROCKET FUEL?

Along with tech and crypto, venture capital (VC) is another catalyst that sparks the wealth equation. Over the past decade, VC has grown in size and reach. Firms regularly raise billions in funding for early-stage enterprises. This backing gives young entrepreneurs a definite leg-up.

Start-ups are no longer limited to small markets. With the right funding, they can bloom overnight, and spread globally. Airbnb, Uber and Stripe boomed as a result of strategic VC investments, often propelling founders into the billionaire club while still in their 30s.

The innovation culture in digital hubs like Silicon Valley is inextricably linked to VC. Young founders with revolutionary ideas are prepared to take huge risks — which often (but by no means always) result in huge profits. This high-stakes game produces a lot of winners. We hear less about the losers.

FAME, FORTUNE, AND INFLUENCE

One of the distinguishing features of today's wealth development is the role played by social media. YouTube, Instagram, TikTok and Twitch have transformed regular people into overnight multimillionaires. Influencers, content creators and digital marketers are not just redefining celebrity, they’re capitalising on it.

Kylie Jenner became the youngest self-made billionaire in 2019 at the tender age of 21, according to Forbes. While her family name may have opened some doors, it was her mastery of social media and direct-to-consumer branding that propelled Kylie Cosmetics to billion-dollar status. Influencers such as Jimmy Donaldson (MrBeast) and Addison Rae have used their social media-follower tallies to net grand endorsement deals, merchandise- and brand partnerships.

Many of these household names began with nothing more than a smartphone, a pretty face, and a good idea. The rise of digital commerce, direct sales to consumers via social media platforms, has enabled swift monetisation. The platforms give entrepreneurs a global audience, something no generation before them enjoyed.

OLD MONEY, NEW TRICKS

It's worth noting that conventional industries — finance, real estate, and manufacturing — still throw up the odd billionaires. But again, there is a generational difference: younger entrants approach the game differently. The younger crew, often heirs to wealthy corporate families, combine old money with new tech to boost their bank balances.

In real estate, creative organisations such as Opendoor are revolutionising the buying-andselling process in what was once a ponderous, traditional sector. Younger investors aren't just establishing portfolios, they're using data, AI and predictive analytics to make better, faster decisions.

A new wave of fintech businesses, such as Robinhood, Revolut, and Square, have disrupted the traditional banking sphere. Younger generations are not only producing wealth, but democratising financial services. The old-school bankers, used to working in the domain of the wealthy, have been compelled to adapt or be left in the dust of their younger, tech-savvy competitors.

THE NEW WEALTH CLASS

The flood of young, wealthy people has implications for society and the global economy. On one hand, sudden riches can boost overall entrepreneurial activity, job creation, and creativity. On the other, it increases wealth disparity. The vast majority of young people are not benefiting from this economic boom; they’re

dealing with university debt, stagnant salaries, and limited access to housing.

The gap between the ultra-rich and “the rest of us” has attracted the attention of authorities, and calls for legislative changes: higher taxes for the wealthy, greater corporate responsibility, and antitrust charges against monopolistic companies.

Younger billionaires are often more outspoken about social causes, with some — perhaps not that many — using their financial clout to address global issues such as climate change, education inequity, and public health.

The way young people earn their money is changing the conventional narrative of success. Wealth is no longer synonymous with privilege or decades of corporate ladder-climbing. It’s increasingly associated with innovation, risk-taking and digital nous, a new era in which the distinction between celebrity and entrepreneurship is blurred.

While this new class of youthful billionaires helps to drive economic development and innovation, the concerns about rising inequality are hard to ignore. The concentration of great wealth in the hands of very few isn’t entirely healthy.

As the world navigates this uneven playing field, the challenge will be to strike a balance between the benefits of the new wealth wave and the need for greater economic equality. The consequences of getting it right — or wrong — will be farreaching. i

North America: Was the Treaty of Guadalupe Hidalgo a Good Deal for Mexico?

With the signing of the treaty on February 2, 1848, the Mexican-American War, which hadbeenragingsince1846,finallycametoanend.But…

When Mexico signed the Guadalupe Hidalgo treaty, it gave up 55 percent of its pre-war territory to the US.

It included portions of Colorado, Wyoming, Kansas, and Oklahoma as well as what are today California, Nevada, Utah, Arizona, and New Mexico. In return, the US promised to assume $3.25m in obligations due by Mexico to American individuals and pay Mexico $15m, equal to around $500m today. Historians and academics have disagreed throughout time over whether Mexico benefited from this treaty. Did Mexico benefit from the Treaty of Guadalupe Hidalgo, or did it create the conditions for enduring difficulties that the country still faces?

Background

Mexico gained independence from Spain in 1821 and was left with a sizable territory, but it also had to overcome formidable obstacles to national identity, administration, and economic growth. Political stability was weakened by the fledgling country's struggles with internal strife, regional divides, and frequent leadership changes.

In the meantime, the notion of Manifest Destiny — the conviction that American settlers were destined to spread over North America — was propelling America’s rapid development. Particularly with the US annexation of Texas in 1845 — a state that Mexico still regarded as its own despite the Texas Revolution of 1836 — this expansionist mentality sparked a growing interest in Mexican territories.

Congress declared war on Mexico in 1846 because of conflicts sparked by President James K Polk sending troops to disputed border areas, which increased tensions. The United States achieved notable military triumphs during the Mexican-American War, which ended with the conquest of Mexico City in September 1847. Mexico was forced to negotiate after domestic unrest and the capture of its capital.

THE TREATY'S TERMS

The Guadalupe-Hidalgo Treaty had a number of important clauses.

Territory Cession: Mexico gave the US more than half of its pre-war territory. Later on, this enormous area of land would show to be rich in natural resources and essential to the expansion of the US economy.

Financial Settlement: In exchange for Mexico paying $15m, the United States agreed to take on $3.25m in claims made by American citizens against Mexico.

Rights of Inhabitants: Under the terms of the treaty, Mexicans residing in the surrendered lands would be able to keep their belongings, follow their faith, and decide whether or not to apply for full American citizenship.

Border Establishment: One of the main issues that precipitated the war was settled when the Rio Grande was designated as the border between Texas and Mexico.

In Mexico, opinions were divided. The treaty was seen by some as a necessary compromise to put an end to a catastrophic war and stop more casualties. Others viewed it as a dehumanising capitulation that violated the honour and sovereignty of the country.

The Mexican government was facing tremendous strain. The battle had depleted supplies, resulted in heavy losses, and forced the capital to be occupied. It appeared pointless to carry on with the war, and the treaty provided a means of protecting what was left of the country.

FINANCIAL CONSEQUENCES

The $15m payment gave Mexico the financial boost it needed in the short term. The money was meant to assist in reconstructing the nation's economy and infrastructure following the destruction of the war.

Nonetheless, there were serious economic consequences to the loss of territory. The ceded territory comprised mineral-rich regions, arable land, and important ports. Days before the treaty was finalised, in 1848, gold was discovered in California. This led to the Gold Rush, which greatly benefited the US economy but kept Mexico out of the money made from territories it had previously controlled.

When Mexico fought to recover from the conflict and rebuild with few resources, the US used these resources to drive industrial expansion, expand infrastructure, and bolster its economy.

IMPACT ON SOCIETY

The lifestyles of Mexicans residing in the surrendered lands were significantly changed by the pact. Many experienced prejudice, property loss, and cultural marginalisation in spite of the treaty's guarantees. The promised legal protections were frequently disregarded or not sufficiently upheld by American authorities.

Mexico was severely impacted psychologically by the loss of its territory. It heightened sentiments of shame at home and strengthened a sense of shared identity moulded by adversity and resiliency. This era shaped literature, art, and political movements, and it marked a turning point in Mexican history.

POLITICAL REPERCUSSIONS

The accord deepened political rifts inside Mexico. The way the government handled the talks and the war drew criticism. Anger and discontent with the leadership contributed to a climate of heightened instability marked by periodic upheavals and changes in government.

The geopolitical situation of Mexico was also affected by the loss of territory. It reduced Mexico's capacity to assert itself in the region and increased its susceptibility to outside influence and meddling in the years that followed.

DIFFERENT VIEWS

Some historians contend that the deal was Mexico's best option given the circumstances. Mexico faced the prospect of complete loss and even annexation in the face of an overwhelming military force and the occupation of its capital. Mexico avoided additional damage and maintained sovereignty over its remaining territory by signing the treaty.

Some argue that better terms could have been negotiated by Mexico. For example, Mexico may have demanded more monetary reparations or more robust measures to ensure that the rights of Mexicans living in the surrendered areas are upheld. Nonetheless, the government's negotiating leverage was constrained by the disarray in Mexican politics and the pressing need to conclude the war.

Further understanding can be gained by contrasting Mexico's situation with those of other countries that have experienced territorial losses. For example, long-lasting hostility and eventual conflict resulted from France ceding Alsace-Lorraine to Germany following the Franco-Prussian War. Although the treaty in Mexico created long-lasting grievances, it had an impact on internal strife and revolutions but did not trigger further wars with the United States.

EXTENDED LEGACY

The continued economic gaps between the United States and Mexico are clear evidence of the treaty's long-term effects. The United States became a major economic force in the world

by taking use of the resources and strategic advantages of the occupied lands. Conversely, Mexico encountered persistent obstacles in its economic progress, partially attributable to the forfeiture of precious territories and resources.

The pact established the foundation for intricate bilateral interactions as well. Immigration, border security, and trade issues are all rooted in the historical framework created by the 1848 territorial adjustments. The treaty's border, which represents both connection and division, has grown to be one of the most commonly travelled international frontiers in the world.

MODERN THOUGHTS

Reevaluating the Guadalupe-Hidalgo Treaty has garnered more attention in recent years. The impact of the treaty on indigenous and Mexican-American communities in the United States is something that some activists and academics support receiving more attention. They want that rights that were promised but not completely realised be protected, as well as cultural legacy to be preserved.

In addition, debates concerning restorative justice and reparations have surfaced, along with suggestions for redressing past wrongs brought about by the treaty's execution. Even though these concepts have substantial practical and political obstacles, they demonstrate the treaty's continued significance in today's world.

Looking back, it is difficult to see the Treaty of Guadalupe Hidalgo as beneficial to Mexico. Although it ended a devastating war and offered temporary financial respite, the long-term effects were overwhelmingly unfavourable. Mexico was deprived of abundant resources that may have aided in its economic growth and prosperity after losing more than half of its territory.

In addition, the treaty had significant social, cultural, and political ramifications that fuelled internal strife and shaped the national character around themes of resiliency and loss. The difficulties Mexicans in the ceded territories endure and the ongoing economic divide between Mexico and the US highlight the treaty's persistent significance.

But it's also critical to recognise the complicated conditions surrounding the treaty's signature. Mexico was vulnerable and up against an extremely strong foe. It's possible that signing the treaty was viewed as the least harmful course of action.

In the end, the Treaty of Guadalupe Hidalgo is seen as a critical turning point in the history of North America. It serves as a reminder of the significant impacts that diplomacy and conflict may have on people and countries. The treaty was a sea change for Mexico, one that has affected its course for more than 150 years. i

The US Economy in 2025: Navigating a Landscape of Innovation and Uncertainty

As 2025 unfolds, the US economy stands at a crossroads, characterised by a dynamic interplay of opportunities and challenges. Technological advancements and resilient consumer spending promise growth, yet inflationary pressures, global economic turbulence, and geopolitical risks cast long shadows. This analysis explores the factors shaping the US economy in 2025, examining its engines of growth, looming headwinds, and sector-specific outlooks, while charting a potential path to sustainable progress.

ENGINES OF GROWTH: TECHNOLOGY, CONSUMPTION, AND POLICY Technological Innovation

The US remains a global leader in technological innovation, and 2025 is no exception. Artificial intelligence (AI), automation, and green technology are transforming industries, driving productivity, and creating new opportunities.

AI’s integration into diverse sectors—healthcare, finance, manufacturing, and transportation— is revolutionising processes and outcomes. In healthcare, AI enables breakthroughs in diagnostics, personalised medicine, and drug discovery. Finance leverages AI for fraud detection, risk analysis, and algorithmic trading. In manufacturing, AI-powered robots and predictive maintenance systems enhance efficiency and reduce costs. These advancements not only streamline operations but also foster job creation in specialised fields like AI development and data science.

Automation, while displacing some jobs, continues to generate demand for highly skilled roles, including robotics engineers and systems analysts. Moreover, it allows workers to pivot toward creative and strategic tasks, enhancing job satisfaction and productivity.

The rise of green technology is equally transformative. Solar and wind energy are becoming competitive with fossil fuels, bolstered by advances in battery technology. This shift to renewable energy creates new investment opportunities, generates employment, and accelerates the transition to a sustainable economy.

Consumer Spending

Consumer spending remains the cornerstone of US economic resilience. Despite recent challenges, strong employment figures and rising wages support robust consumer confidence in 2025.

"Low unemployment rates and job growth in technology, healthcare, and renewable energy sectors sustain household incomes."

Low unemployment rates and job growth in technology, healthcare, and renewable energy sectors sustain household incomes. Simultaneously, wage growth bolsters purchasing power, enabling continued discretionary spending.

Inflation, a persistent concern in recent years, is expected to moderate, though it requires careful monetary management to avoid eroding consumer confidence. Shifting spending habits also reflect evolving priorities: experiences, digital services, and sustainable products are increasingly favoured over traditional goods, driving growth in travel, leisure, and e-commerce sectors.

POLICY FRAMEWORKS

Government policy plays a pivotal role in shaping economic conditions. Fiscal initiatives such as infrastructure investments in transportation, broadband, and renewable energy not only create jobs but also enhance productivity and attract private investment.

Monetary policy must navigate the fine balance between controlling inflation and sustaining growth. The Federal Reserve faces the delicate task of managing interest rates to stabilise prices without stifling economic momentum.

Trade and regulatory policies add further complexity. Balancing domestic industry protection with global competitiveness, and streamlining regulations while ensuring fair practices, will influence the business climate and innovation trajectory.

NAVIGATING HEADWINDS: INFLATION, GLOBAL SLOWDOWN, AND GEOPOLITICAL RISKS

Inflation Pressures

While inflation is projected to ease, the persistence of global supply chain disruptions, rising energy prices, and geopolitical instability could reignite cost pressures. The Federal Reserve’s response, through interest rate adjustments, must carefully temper inflation without dampening consumer and business confidence.

If inflationary pressures persist, household purchasing power may weaken, particularly in discretionary sectors like retail and entertainment. This underscores the importance of synchronised wage growth and effective monetary policy to stabilise spending patterns.

Global Economic Slowdown

A deceleration in major global economies, coupled with lingering supply chain vulnerabilities, poses risks to US growth. Declining export demand, production bottlenecks, and financial market volatility could ripple through key industries, from manufacturing to agriculture.

The impact of a global slowdown highlights the importance of strengthening domestic resilience while pursuing diversified trade partnerships to mitigate external shocks.

Geopolitical Risks

Geopolitical tensions, including the war in Ukraine, strained US-China relations, and regional

instabilities, compound economic uncertainties. Trade disruptions, sanctions, and cybersecurity threats create unpredictable environments for businesses reliant on global supply chains.

Companies and policymakers alike must prioritise resilience strategies, such as reshoring critical industries, enhancing cybersecurity measures, and fostering international cooperation to navigate geopolitical complexities.

SECTOR-SPECIFIC OUTLOOKS

Technology

The technology sector remains a key driver of economic growth, with AI, cybersecurity, and green innovation leading the charge. However, increased regulatory scrutiny and intensifying global competition necessitate agility and robust investment in research and development.

Healthcare

Healthcare continues to expand, driven by an ageing population and technological

advancements. Telemedicine, wearable health tech, and personalised treatments fuel growth, though workforce shortages and cost pressures remain challenges.

Manufacturing

Automation and advanced manufacturing technologies bolster productivity and competitiveness. However, global supply chain fragility and rising material costs could constrain growth, necessitating strategic planning and investment in local production capabilities.

Energy

The transition to renewable energy accelerates, spurred by technological progress and sustainability commitments. However, regulatory clarity and infrastructure upgrades are critical to unlocking the sector’s full potential.

A PATH TO SUSTAINABLE GROWTH

The US economy in 2025 stands at a pivotal moment, poised between the promise of

innovation and the challenges of a volatile global landscape. Technological leadership, resilient consumer spending, and forward-thinking policies can collectively sustain economic momentum.

To achieve sustainable growth, coordinated efforts are essential. Policymakers must prioritise infrastructure, education, and green energy investments to enhance competitiveness and innovation capacity. Businesses should embrace agility, prioritising digital transformation and robust supply chain management. Meanwhile, households benefit from policies that balance wage growth with price stability, fostering confidence and spending.

While uncertainties persist, the US economy’s capacity for adaptability and reinvention offers hope. By harnessing innovation, promoting inclusivity, and addressing challenges proactively, the nation can navigate this era of transformation with resilience and purpose. i

Wall Street Checkmate: The Intriguing Story of Chess Expertise and Business

High-level finance is a combat zone, and every choice can make or break a career. Move carefully…

Can the strategies learned on the chessboard provide an advantage in the boardroom? This question motivated a Wall Street hedge fund to seek out skilled players.

Chess is regarded as the pinnacle of strategy games. Gamers have to plan several moves ahead, predict the strategies of their opponents, and remain cool under pressure. Some believe that these abilities have a direct application in the business sector. A marketer organising a campaign, a CEO negotiating a merger, or an entrepreneur starting a new business all encounter obstacles that need to be carefully planned and carried out. Business leaders need to evaluate the market, spot possibilities, and create a plan for success in the same way that chess players study the board and create strategies.

MAKING CHOICES

Chess is a psychological game in addition to a logic game. Gamers need to be aware of their opponent's intentions, predict their movements, and take advantage of their flaws. In the corporate world, having the ability to read people and make wise decisions is crucial. Success in completing a business, forming relationships, or leading a team requires a grasp of human behaviour.

Chess players may naturally have an advantage in navigating the intricate social dynamics of the business world since they are used to studying their opponent's every move.

THE ALLURE FOR WALL STREET

In recent years, the notion that having strong chess abilities may help one succeed in business has gained momentum, even drawing interest from Wall Street. When DE Shaw & Co started seeking out chess players in the early 2000s, it garnered media attention. The company was founded by a chess fan and computer scientist who recognised the potential in chess players' analytical and strategic thinking abilities. However, the experiment produced a range of outcomes. Some chess players found success in the high-stress atmosphere of Wall Street, while others found it difficult to adjust. Even though the company eventually stopped focussing on

"David E Shaw, the company's creator, thought that chess players had special abilities that could be applied in the financial sector."

chess, the experiment had a significant impact on the financial industry.

THE EXPERIMENT IN MORE DEPTH

The DE Shaw experiment provides insightful information about the connection between company success and chess prowess. David E Shaw, the company's creator, thought that chess players had special abilities that could be applied in the financial sector.

Their capacity for abstract thought, sophisticated problem-solving, and quick decision-making piqued his curiosity. The company's hiring approach was to find elite chess players with solid academic credentials. These people received indepth training in technology and finance after being employed.

SOME GOOD MOVES

A number of chess players who trained with DE Shaw went on to have extraordinary success. While some used their knowledge to start their own businesses, others worked their way up to become senior executives. These people attribute their competitive advantage in the business realm to their chess experience. They credit their success to their capacity for strategic thought, in-depth data analysis, and fast decision-making. The experiment showed that having strong chess skills can really help one succeed in the corporate world, provided they are paired with the correct opportunity and training.

DIFFICULTIES

AND RESTRICTIONS

The experiment showed the limitations of using chess knowledge in the commercial world, even if it also yielded some success stories. Not every chess player did well in Wall Street. Some found it difficult to adjust to the banking industry's fast-paced, team-oriented atmosphere. Others discovered that it was harder than they had

thought to go from the abstract realm of chess to the tangible reality of business.

The experiment also showed that having strong chess abilities is not enough to ensure success in the corporate world. Equally significant are other elements including teamwork, emotional intelligence, and communication abilities.

BEYOND WALL STREET

The DE Shaw experiment concentrated on the financial industry, but there are a wide range of

other possible uses for chess knowledge outside of Wall Street. The ability to think strategically, make decisions, and solve problems is a natural advantage for chess players in any field.

Having the capacity to plan ahead and anticipate obstacles can be a great skill in a variety of fields, including technology, healthcare, and marketing. Furthermore, people can benefit from the attention, discipline, and resilience that come from playing chess in any area of work.

SO DOES IT WORK?

Chess prowess and corporate success have a nuanced and intricate link. The DE Shaw experiment showed that chess players can succeed in the financial industry, but it also brought attention to the difficulties and constraints involved.

Although having strong chess abilities by themselves does not ensure success, they can give an advantage over competitors when paired with the appropriate instruction and chances. In any sector, having the capacity to think

strategically, decipher complex situations, and make wise decisions under duress is essential.

In summary, the data point to the potential value of chess playing abilities in the workplace — but they are not a magic bullet. A combination of abilities, such as communication, emotional intelligence, and teamwork, are necessary for success in the business sector. Those able to combine these traits with their analytical and strategic thinking abilities could find themselves in a strong position to move ahead. i

The Next Gold Rush: Johannesburg, California

ould this forgotten desert town be the epicentre of a 21st-century gold rush?

The wind whistles through the skeletal remains of abandoned buildings, weaving a lonely tune across the Mojave Desert. Here, in the ghost town of Johannesburg, California, silence dominates, broken only by the crunch of boots on sun-baked earth and the occasional tumbleweed. A century ago, this town pulsed with life—a boomtown where fortunes were made and lost in the blink of an eye. Today, it stands as a relic of the past,

a haunting reminder of gold fever's ephemeral grip. Yet, whispers of a potential revival suggest Johannesburg may have a second act. Could this once-thriving town become the site of a 21stcentury gold rush?

A TOWN BUILT ON DREAMS

Johannesburg's story began in 1899, when prospectors unearthed gold in the nearby Rand Mountains. Almost overnight, the town sprang to life, a chaotic tableau of saloons, hotels, and mining claims. Thousands of hopefuls flocked to this patch of desert, lured by the promise of

untold riches. For a brief moment, Johannesburg thrived. The mines produced a golden bounty, businesses flourished, and the population swelled.

However, the boom was short-lived. The easily accessible surface deposits were quickly exhausted, and by the 1920s, the mines had fallen silent. Businesses shuttered their doors, and residents moved on, chasing new dreams. What remained was a ghost town, a sombre reminder of the boom-and-bust cycles that shaped the American West.

UNREALISED POTENTIAL BENEATH THE SURFACE

Despite its desolate appearance, Johannesburg’s geological promise endures. Gold deposits in the region are primarily found in quartz veins formed millions of years ago through hydrothermal activity. Early miners lacked the technology to delve deeper or extract gold from lower-grade ores, leaving much of the area’s potential untapped.

According to Dr. Emily Carter of the California Geological Survey, "The old-timers only scratched

"Several companies have already staked their claims in the Johannesburg area, signalling renewed interest in the region. Mojave Gold Ventures, a junior exploration company, has acquired mineral rights to significant portions of the historic mining district."

the surface. Today, with modern technology, we have the tools to unlock the remaining wealth of this region."

Advancements such as 3D geological modelling and geochemical analysis allow geologists to identify promising sites with remarkable precision. Meanwhile, modern mining methods, including heap leaching and bio-oxidation, offer the ability to extract gold from previously uneconomical deposits with reduced environmental impact. These innovations, coupled with soaring gold prices, make Johannesburg an increasingly attractive prospect for mining companies.

THE NEW PLAYERS ON THE SCENE

Several companies have already staked their claims in the Johannesburg area, signalling renewed interest in the region. Mojave Gold Ventures, a junior exploration company, has acquired mineral rights to significant portions of the historic mining district. The company’s CEO, Mark Johnson, is optimistic. "Our initial exploration results are encouraging. We believe Johannesburg has the potential to be a major gold producer again," he says.

Rand Resources, another contender, is focused on developing environmentally friendly mining practices. The company is exploring bio-oxidation techniques that utilise naturally occurring bacteria to extract gold, reducing the reliance on harmful chemicals. "Our goal is to mine responsibly, minimising environmental impact while respecting the historical significance of the area," explains Sarah Lee, Rand Resources’ president.

CHALLENGES ON THE HORIZON

While the renewed interest is promising, the road to a Johannesburg revival is fraught with challenges. Infrastructure poses a significant hurdle. The town’s remote location, coupled with limited access to water and electricity, means any substantial mining operation would require considerable investment in infrastructure.

Environmental concerns also loom large. The Mojave Desert is an ecologically sensitive region, and mining activities could disrupt fragile ecosystems, deplete water resources, and affect air quality. David Miller of the Mojave Desert Land Trust stresses the importance of sustainable practices: "Mining must be conducted in a way that protects this unique environment for future generations."

Additionally, the socio-economic implications cannot be overlooked. While mining could bring jobs and economic growth, it is vital to consider the impact on local communities and ensure that development benefits all stakeholders.

A TOWN POISED FOR REVIVAL?

If Johannesburg does experience a modern gold rush, the transformation could be remarkable. A successful mining operation would breathe life into this ghost town, creating jobs, stimulating local businesses, and potentially sparking a broader economic revival.

Yet, history offers a cautionary tale. The original gold rush brought wealth but left behind environmental degradation and economic instability. Any modern revival must prioritise sustainable development, environmental stewardship, and respect for the region’s historical and cultural significance.

A GLIMMER OF HOPE

The winds that sweep through Johannesburg carry echoes of its golden past and whispers of a brighter future. While the challenges are substantial, the opportunity is equally compelling. Beneath the sun-scorched earth lies untapped potential, waiting for a new generation of dreamers and innovators to unlock it.

Will Johannesburg rise again as a beacon of ambition and resilience, or will it remain a silent monument to the fleeting nature of gold fever? The answer lies in the delicate balance between ambition and responsibility, innovation and preservation. One thing is certain: the story of Johannesburg is far from over. i

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Secondaries Soar: Private Equity's Secondary Market

A once-niche market is booming, thanks to shifting needs, greater liquidity demands, and a growing appetite for investments.

The private equity secondary market, once a tiny segment of the investment world, is experiencing a tremendous spike in activity.

It allows investors to buy and sell existing stakes in private equity funds, and is now a prominent player providing liquidity, flexibility, and diversification opportunities for buyers and sellers.

There are several reasons for this boom. Investors face lengthy holding periods in private equity funds and want to rebalance their portfolios. The secondary market offers a valuable exit option. Investors with unexpected liquidity demands or strategy moves can benefit here.

Institutional investors, such as pension funds and endowments, are seeking ways to manage their private equity and obtain liquidity in a timely manner. The secondary market provides that option.

Private market investments have grown in popularity due to the returns potential and diversification benefits. The secondary market allows fresh investors to access the private equity field without having to commit to protracted lockup periods.

INCREASED MARKET PARTICIPATION

The market is growing more diverse, with a wider spectrum of firms joining the party. Traditional private equity firms, dedicated secondary funds, institutional investors and even sovereign wealth funds are all active players.

To suit the changing needs of buyers and sellers, new transaction structures are emerging. These include single-asset transactions, GP-led restructurings and continuation funds, which enable general partners (GPs) to extend the life of a fund while providing liquidity to investors.

Technology is increasingly significant in secondary trades. Online platforms and data analytics tech is expediting the deal-making process, increasing transparency and improving price discovery.

BENEFITS FOR ALL

The secondary market provides compelling benefits. Buyers get access to established private equity assets with a proven track record, lowering the risk of early stage investment. Secondary investments are often shorter in term than primary fund commitments.

Secondary purchases can sometimes provide more appealing pricing than primary investments, especially when sellers are motivated for a swift exit.

Sellers obtain liquidity for their private equity assets, allowing them to adjust portfolios, meet cash requirements, or pursue other goals. The market also enables sellers to manage their private equity portfolios, lowering concentration risk and optimising asset allocation.

Sellers can get rid of all or part of their stake in a private equity fund, allowing them to adapt their exit strategy to suit their needs.

THE OUTLOOK

In a word: positive. Various factors point to ongoing

growth and expansion. Private equity firms have a record amount of “dry powder”, which could lead to a pipeline of future secondary transactions as they deploy capital and manage portfolios.

Regulatory developments, such as the Volcker Rule in the US, have restricted banks' capacity to invest in private equity funds, potentially driving activity in the secondary market.

The secondary market is growing in Europe, Asia, and other regions. It has gone from a niche sector to a major player. Driven by shifting investor expectations, greater liquidity demands and a growing desire for private investments, the secondary market is positioned to play a critical role. As more players enter the market and new transaction structures arise, it will continue to provide fresh opportunities all round.

ADDITIONAL CONSIDERATIONS

Buyers and sellers should perform extensive due diligence on potential secondary deals, examining the underlying assets, assessing the GP's track record, and understanding the transaction terms.

The market can be influenced by overall volatility and economic conditions. Investors should weigh the potential impact of these issues with care. Secondary transactions may include fees, such as broking commissions and legal charges. These should be taken into account.

This is a dynamic and changing scene worthy of attention. Understanding the key drivers, market characteristics and potential rewards can help investors to navigate this sector — and profit from it. i

> “Mad Men”: A Retrospect - The Men, The Women, and the MartiniSoaked Magic of Madison Avenue

“M

ad Men”, the award-winning AMC drama, wasn't just television; it was a cultural phenomenon. More than a decade after its finale, the series remains a towering achievement in storytelling and visual artistry, praised for its stylish portrayal of the 1960s advertising world, its complex characters, and its unflinching examination of a society in flux. But beyond the impeccable suits and constant haze of cigarette smoke, how accurately did “Mad Men” capture the spirit of its era?

A VISUAL SYMPHONY OF THE SIXTIES

One of “Mad Men’s” most striking accomplishments is its meticulous recreation of 1960s aesthetics. Every detail, from the rotary phones on Sterling Cooper’s desks to the chrome-trimmed appliances in suburban kitchens, immerses viewers in the era. The show's creators, led by Matthew Weiner, spared no effort in ensuring authenticity, and their dedication paid off.

The set designs are time capsules of early 60s modernism. Sterling Cooper’s offices feature sleek lines and mid-century furniture, reflecting the optimism of corporate America before the turbulence of the later decade. At home, the Draper household's muted tones and traditional decor illustrate the era’s domestic ideals, later giving way to bolder colours and more daring styles as cultural shifts seep into the story.

Costume designer Janie Bryant brought fashion to the forefront, charting the evolution of style throughout the series. From Betty Draper's cinched waists and full skirts in the early seasons to Peggy Olson’s bold prints and shorter hemlines as she finds her confidence, every outfit tells a story. The clothing of “Mad Men” does more than look good—it captures the characters’ transformations and reflects broader societal change.

THE FACES OF AN ERA

While “Mad Men” dazzles visually, its characters are the beating heart of the show. Jon Hamm’s portrayal of Don Draper is a masterclass in duality. Don is a man of contradictions— charming yet distant, confident yet riddled with self-doubt. His enigmatic past and struggles with identity mirror the broader anxieties of a nation grappling with rapid change.

"Every character is richly drawn, deeply flawed, and wholly human, making them not only relatable but also emblematic of the social complexities of the time."

Elisabeth Moss shines as Peggy Olson, whose rise from timid secretary to trailblazing copywriter encapsulates the shifting role of women in the workplace. Her story is as much a commentary on the era as it is an exploration of personal ambition and resilience.

The supporting cast is equally formidable. January Jones plays Betty Draper with a brittle elegance, embodying the frustrations of a woman confined by suburban expectations. Christina Hendricks’ Joan Holloway is a powerhouse of wit and poise, navigating the minefield of a male-dominated workplace with sharp intellect and carefully wielded charm. Roger Sterling, portrayed with effortless flair by John Slattery, serves as a cynical yet comedic foil to Don’s intensity. Vincent Kartheiser’s Pete Campbell is the embodiment of insecure ambition, his desperate need for success a reflection of the cutthroat nature of the industry.

Every character is richly drawn, deeply flawed, and wholly human, making them not only relatable but also emblematic of the social complexities of the time.

GLAMOUR AND THE SHADOWS BENEATH

Though “Mad Men” revels in its depiction of 1960s glamour, it never shies away from the darker truths of the era. Beneath the veneer of elegance lies a society steeped in inequality, prejudice, and discontent. The show’s unflinching portrayal of sexism reveals the systemic barriers women faced, both in the workplace and at home. Peggy’s journey, though inspiring, is a constant battle against condescension and misogyny, while Joan’s struggles highlight the limited avenues available to women, even those with exceptional skill and determination.

Racism, too, is addressed, albeit sparingly, through moments that starkly contrast the privilege of the series’ mostly white characters. The civil rights movement looms in the background, a reminder of the societal upheavals reshaping the country. While “Mad Men” offers glimpses into these seismic changes, some critics argue that its focus on Madison Avenue’s white, upper-middle-class world sidelines these narratives.

The show also examines the era’s attitudes toward mental health, sexuality, and addiction. Characters grapple with depression, unspoken traumas, and identity crises, often numbing their pain with alcohol, cigarettes, and infidelity. These personal struggles are framed within the broader context of a society caught between post-war conformity and the countercultural revolution.

FICTION THROUGH A FILTERED LENS

While “Mad Men” is celebrated for its historical accuracy, it is ultimately a work of fiction. Certain elements—such as the characters’ near-constant smoking and drinking—are heightened for dramatic effect, creating a stylised portrayal that amplifies the era’s excesses.

Moreover, the series has been critiqued for its limited exploration of major cultural and political events, including the civil rights movement and the Vietnam War. These issues are touched upon, but always from the vantage point of the privileged few, leaving some stories underexplored. Yet, this focus can also be seen as deliberate, a commentary on how insulated the world of Madison Avenue was from the broader struggles of the time.

THE LEGACY OF “MAD MEN”

Despite these criticisms, “Mad Men” remains a television landmark, offering a layered and nuanced exploration of a pivotal era in American history. Its unflinching examination of ambition, identity, and societal change resonates far beyond its 1960s setting.

The series' success lies in its ability to hold a mirror to its audience, revealing not only the progress made since the 60s but also the persistent inequalities and existential dilemmas that remain. Gender roles, racial injustice, and the search for purpose—these themes are as relevant today as they were then, giving “Mad Men” a timeless quality.

Much like the advertising campaigns it portrays, “Mad Men” is about selling ideas. It sells nostalgia for a bygone era while simultaneously

deconstructing its myths. It sells the allure of ambition while exposing its costs. It sells the notion that progress is possible but never easy.

Through its meticulous craftsmanship, unforgettable characters, and willingness to confront uncomfortable truths, “Mad Men” has earned its place as a cultural touchstone. Its portrayal of Madison Avenue is not just a window into the past but a lens through which we can examine our own aspirations, flaws, and society.

A decade after its final episode, “Mad Men” continues to captivate and inspire, reminding us that storytelling, much like advertising, is about connecting with the core of human experience. Whether through the clink of martini glasses or the click of a typewriter, the magic of “Mad Men” lingers—proof that the best stories never go out of style. i

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> Companies across industries are recognising the value that NEDs — non-executivedirectors—bringtotheirboards.

A Get NEDs, Get Ahead: These People are Important for Your Business

NEDs: do we need them? Yes, say the stats, and the experts: Non-executive directors help to drive growth and longterm sustainability.

It was once common to have NEDs only in listed companies, but now they’re popping up all over the place — including at SMEs. The goals of the extremes of NED-friendliness differ. While a large corporation might appoint one to maintain high standards of corporate governance, a smaller firm might be seeking evidence-based assurance — and holding the executives to account. A NED can also bring business experience, objective advice and credibility to the table.

Shalini Khemka, CEO and founder of entrepreneurial community E2E, believes the non-execs can contribute to company growth.

“Historically, NEDs have had a focus on a company’s corporate governance,” she says, “but now, they’re more often involved in supplying expert advice.

“The emotional support that comes with that is invaluable.”

WHAT ARE NON-EXECUTIVE DIRECTORS?

In a word (or two): part-timers. They’re members of a company board, sharing collective responsibility for the organisation — but not employees.

NEDs attend board meetings, but their role can extend to diverse tasks: leading special projects,

"NEDs attend board meetings, but their role can extend to diverse tasks: leading special projects, engaging with shareholders, or representing the company at events."

engaging with shareholders, or representing the company at events.

Unlike executive directors, they have no operational duties at the company. As they aren’t classified as employees, they can have a more informal relationship with the company. It might be a chat on the phone, or an email, instead of formal, arranged meetings.

AN OUTSIDER’S OPINION

That independence, and detachment from daily operations, is a key advantage of non-executive directors. They should also have a wealth of experience to share — preferably gained from an array of relevant organisations. This feeds into the Why and the How when it comes to the value of their consultative services.

With their unbiased perspective, NEDs can offer a wider view and alternative knowledge: “A priceless addition to a company’s growth,” explains Khemka. Impartiality helps when the

executive team is struggling to reach a consensus, or where outside experience is needed.

As a bonus, a NED can usually provide access to a wide network of contacts. “They can provide the resources to create relationships with more stakeholders,” says Khemka, “such as customers, suppliers, and potential partners.

“Whether the contacts are related to markets you want to expand into, or ones that would help an SME to grow at a quicker rate, or ones that are able to offer advice with unique knowledge and experience, they are likely to provide value to your business and its operations.

“Through their encouragement, listening and providing reassurance where necessary, the confidence and morale of the executive teams can be improved.

“Ultimately, this can foster a more cohesive leadership team.” i

Boutiques Bet Big on 2025: Talent Wars and the Push for Revenue

The investment banking sector is gearing up for what could be a transformative year in 2025. Following a year of buoyant markets and unexpected resilience in dealmaking, Wall Street firms, particularly boutiques, are positioning themselves for a high-stakes rebound. With aggressive hiring sprees, lofty valuations, and heightened investor expectations, 2025 is shaping up as a pivotal moment for boutique investment banks to justify their bold bets.

THE BOUTIQUE BOOM: STRATEGIC TALENT ACQUISITION

Boutique firms such as Evercore, Lazard, Moelis & Company, and Jefferies have been making headlines for their aggressive talent acquisition strategies. They have capitalised on disruptions at larger institutions like JPMorgan and the nowdefunct Credit Suisse, luring top-tier talent with lucrative compensation packages. Evercore, for instance, has expanded its managing director count by an impressive 27% since 2021, while Moelis has grown by 26%. Jefferies stands out, with an astonishing 46% growth in managing directors over the same period.

These hires don’t come cheap. Some new managing directors are receiving guarantees exceeding $9 million annually, a significant investment in human capital. While this talent strategy is designed to strengthen deal pipelines, the approach is not without risk. It often takes 12 to 18 months for these high-profile hires to establish client relationships and generate meaningful revenue streams. This lag puts immense pressure on compensation ratios, a metric closely scrutinised by investors.

RISING COMPENSATION RATIOS AND INVESTOR CONCERNS

Compensation ratios, the percentage of revenue allocated to employee pay, have risen dramatically across the industry. At Lazard, this metric reached 66% in 2024, well above the firm’s long-term target of 60%. This increase underscores the urgency for 2025 revenues to close the gap and validate these expensive hiring strategies. Similar trends are observed at other boutique firms, creating heightened expectations for a significant uptick in dealmaking activity.

“The talent arms race has always been part of Wall Street’s DNA,” notes a senior equity analyst at Bernstein. “But in this environment, it’s a calculated gamble. The market is rewarding forward-looking investments, but execution is everything.”

"However, this optimism is tempered by elevated forward price-to-earnings (P/E) ratios for boutique firms, now sitting at 30x to 40x—nearly double the historical average."

MARKET CONTEXT: A

RESILIENT 2024 SETS THE STAGE

The optimism heading into 2025 is buoyed by a surprisingly strong 2024. Major players in the banking sector, including boutiques and bulgebracket firms, reported robust performance. Perella Weinberg saw its stock price double, while Goldman Sachs posted gains of over 50%. These results have fuelled confidence in a continued rebound in mergers and acquisitions (M&A) activity, particularly as global economic conditions stabilise.

However, this optimism is tempered by elevated forward price-to-earnings (P/E) ratios for boutique firms, now sitting at 30x to 40x—nearly double the historical average. These valuations reflect high expectations, but they also amplify the risks.

“It’s a limited pie of deals. There’s going to be a reckoning,” warned the CEO of a rival investment bank. His caution underscores a fundamental challenge: boutique firms must not only capture market share but also compete effectively against well-established rivals.

THE EUROPEAN PERSPECTIVE: A RISING OPPORTUNITY

While much of the attention has been focused on the US market, European boutiques are also making significant moves. Rothschild & Co., one of Europe’s most venerable boutique firms, has been expanding its advisory capabilities across emerging markets, anticipating a surge in crossborder dealmaking. Alantra, headquartered in Spain, has targeted mid-market transactions in sectors like healthcare and renewable energy, reflecting Europe’s strategic priorities.

These firms are tapping into opportunities driven by Europe’s energy transition, post-Brexit trade adjustments, and renewed focus on industrial policy. According to Philippe Petitcolin, managing director at Lazard Paris, “European markets are ripe for consolidation, particularly in industries where innovation and regulation are reshaping competitive dynamics.”

HIGH EXPECTATIONS FOR M&A IN 2025

M&A activity, often seen as the lifeblood of boutique investment banks, is projected to make a strong comeback in 2025. Analysts point to several catalysts: improving macroeconomic conditions, stabilising interest rates, and corporate pressures to deploy excess cash reserves. Additionally, sectors like technology, healthcare, and renewable energy are expected to drive deal volumes, with private equity continuing to play a significant role.

Boutique firms are particularly well-positioned to benefit from this rebound due to their focus on high-touch, bespoke advisory services. Unlike bulge-bracket banks that often prioritise scale, boutiques can offer tailored strategies, a key differentiator in competitive markets.

“Clients are increasingly valuing independent advice, particularly in complex transactions,” says John Weinberg, CEO of Evercore. “This

trend is accelerating as corporate boards seek unbiased counsel to navigate an uncertain environment.”

CHALLENGES ON THE HORIZON

Despite these favourable conditions, the path to success in 2025 is far from guaranteed. Competition for mandates remains fierce, and the growing dominance of in-house corporate development teams poses a challenge. Additionally, geopolitical uncertainties, such as ongoing trade tensions and regulatory shifts in China and the EU, could dampen cross-border activity.

Furthermore, the talent investments made by boutique firms come with heightened expectations. The clock is ticking for newly hired managing directors to prove their worth. As guaranteed pay packages expire, the pressure to deliver deal flow and justify compensation will intensify. Firms that

fail to meet revenue targets risk not only disappointing investors but also destabilising internal morale.

A BROADER STRATEGIC SHIFT

The aggressive hiring and elevated valuations of boutique firms reflect a broader strategic pivot in the industry. The traditional model of large, all-encompassing investment banks is increasingly being challenged by the specialised expertise and agility of boutiques. This shift is reshaping the competitive landscape and forcing even the largest players to adapt.

For example, Morgan Stanley and Goldman Sachs have ramped up their own boutiquestyle offerings, creating smaller teams within the organisation to provide bespoke advisory services. This hybrid approach aims to capture market share without sacrificing the scale advantages of a bulge-bracket bank.

CONCLUSION: THE STAKES ARE HIGH

As 2025 approaches, boutique investment banks find themselves at a crossroads. Their bold bets on talent, combined with a favourable market backdrop, offer significant upside potential. However, these opportunities come with substantial risks. Elevated compensation ratios, lofty valuations, and a finite pool of deals mean that execution will be paramount.

For investors, 2025 will be a critical litmus test. Firms that successfully navigate this high-stakes environment stand to solidify their positions as leaders in the evolving investment banking landscape. For those who fall short, the consequences could be severe.

Ultimately, as one industry veteran put it, “On Wall Street, you’re only as good as your last deal.” In 2025, boutique firms will have ample opportunity to prove their worth. The question is: will they rise to the occasion? i

Asia Pacific: SMEs Form Australia's Economic Backbone

The development, achievements, and challenges of small enterprises are many and varied—andtheyareavitalpartofthenationaleconomy.

SMEs are the foundation of economies around the world — and Australia is no exception. SMEs, which account for more than 99 percent of all Australian enterprises, are essential for fostering innovation, job creation, and economic expansion.

According to the Australian Bureau of Statistics, there were some 2.4 million SMEs in Australia as of October 2023. They operate in many industries, including retail, manufacturing, technology, and services, and make a substantial contribution to the national GDP.

Development Patterns

Australian SMEs have demonstrated resilience and adaptation in the face of global problems like the Covid-19 epidemic in recent times. Many have shifted to online platforms because of the pandemic's acceleration of the digital transition, increasing their reach both domestically and globally. According to an Australia Post assessment, small businesses adopted e-commerce at a rate of about 20 percent more in 2020–2023 than in the previous year.

ADOPTION OF TECHNOLOGY

The development of SMEs has been greatly aided by technology. The increased accessibility of cloud computing, AI, and data analytics has made it possible for SMEs to improve customer experiences and operational efficiency. Government programmes, such as Digital Solutions — Australian Small Business Advisory Services, have helped SMEs integrate digital technologies by providing funding and training.

STATE-SPONSORED PROJECTS

The Australian government has put in place a number of policies to encourage the expansion of SMEs since it understands their significance. The Instant Asset Write-Off and Job-Maker Hiring Credit programmes are two instances of incentives designed to promote investment in new assets and increase employment. These have given SMEs the much-needed respite and inspiration to grow and develop.

NOTABLE ACHIEVEMENTS

Numerous small and medium-sized enterprises from Australia have achieved success both nationally and internationally.

Canva is a visual design platform that was founded in 2013 by Melanie Perkins, Cliff Obrecht, and Cameron Adams. It has completely changed how people and companies approach design. Canva began as a tiny start-up in Perth and has since grown rapidly, being valued more than $40bn by 2023. Over 60 million people worldwide have been drawn to it by its enormous template library and user-friendly design.

Nick Molnar and Anthony Eisen founded Afterpay in 2015, a "buy now, pay later" service that has upended conventional credit structures. The business grew quickly, which made Square, Inc. (now Block, Inc) want to buy it in 2021 for $29bn. The success of Afterpay highlights the ability of Australian small and medium-sized enterprises to innovate in the financial technology industry.

Co-founded by Mike Cannon-Brookes and Scott Farquhar in 2002, Atlassian began as a modest business but has now grown to become a world leader in software development and collaboration solutions. Thousands of organisations worldwide use the company's major products, such as Jira and Confluence. The growth of Atlassian from an SME to a global conglomerate is a prime example of the scalability that Australian companies possess.

OBSTACLES SMEs FACE

Their achievements notwithstanding, SMEs in Australia confront a wide range of difficulties that may impede their ability to expand and endure.

Finance access is still a major obstacle. Due to the strict lending requirements set by traditional banks, many SMEs find it difficult to obtain capital. Although government-backed

loans and the growth of alternative lending platforms have helped to some extent, many people still struggle to get access to finance.

REGULATORY OBSTACLES

Federal and state rules can be intricate and time-consuming. SMEs frequently lack the tools necessary to successfully traverse the legal system, which can result in inadvertent noncompliance and the fines that go along with it. Certain areas need specialised knowledge and attention, like employment law, taxes, and environmental restrictions.

Technological Difficulties

Technology provides obstacles in addition to endless potential. Threats to cybersecurity have escalated, and SMEs are especially at risk because they don't have the resources to implement strong security measures. Furthermore, SMEs may find it challenging to keep up with the quick speed of technological advancement, which could result in obsolescence.

MARKET RIVALRY

Competition has increased due to globalisation, both from domestic enterprises and foreign ones into the Australian market. To stay competitive, SMEs need to set themselves apart via innovation, quality, and customer service. SMEs contribute more to Australia's economy than just their numbers indicate.

CREATION OF JOBS

About 68 percent of all employment in the private sector is held by SMEs, making them important employers, according to the Council of Small Business Organisations Australia (COSBOA). They improve local livelihoods and lower unemployment rates by creating jobs in urban and regional locations.

ENTREPRENEURSHIP

Because they are less burdened by the red tape that might impede larger firms, SMEs are frequently at the forefront of innovation. They drive technological improvements, introduce novel ideas to the market, and quickly adjust to shifting consumer demands. Australia's entrepreneurial spirit contributes to economic dynamism and maintains its competitiveness in the global arena.

AREA-WIDE DEVELOPMENT

SMEs are essential to the economic growth of rural and regional communities. They support local supply chains, offer necessary goods and services, and contribute to the diversification of area economies. Additionally, SMEs can draw investment and tourism to these regions, fostering balanced national development.

SOCIAL REPERCUSSIONS

SMEs support community development and social cohesiveness in ways that go beyond economic measurements. A large number of them are family-run companies with deep roots in the neighbourhood. They frequently take part

in CSR programs, contributing to neighbourhood non-profits, educational institutions, and environmental activities.

FUTURE PROSPECTS AND ADVICE

SMEs must continue to use digital technology to remain competitive. In order to make wise business decisions, this entails not just using e-commerce platforms but also utilising digital marketing, CRMs, and data analytics.

IMPROVING FINANCIAL ACCESS

Enhancing financial accessibility is essential. SMEs should look at a variety of funding sources, such as government grants, crowdsourcing, angel investors, and venture capital. Programmes for financial literacy can give entrepreneurs the tools they need to successfully manage their finances and make strong pitches to possible investors.

BOOSTING ONLINE SAFETY

To safeguard client data and company assets, cybersecurity investments are crucial. SMEs must put in place fundamental security measures including firewalls, encryption, and phishing scam awareness training for staff members. Grants and assistance in this field are provided by government initiatives such as the Cyber Security Small Business Programme.

COLLABORATION AND NETWORKING

Creating networks has the power to bring about new opportunities. SMEs ought to interact with trade associations, go to trade exhibitions, and take part in conferences for business. Working together with other companies can result in alliances, resource sharing, and group lobbying ability to influence policy.

ADVOCATING POLICIES

Making a concerted effort to advocate for policies helps guarantee that SMEs' demands are considered when making decisions by the government. SMEs can shape laws concerning industry support, taxation, and regulation by uniting in organisations such as COSBOA and using their collective voice.

Australian SMEs are an example of tenacity, inventiveness, and spirit of entrepreneurship. Their development over time demonstrates their ability to adapt and flourish in the face of global problems. Prominent triumphs such as Canva, Afterpay, and Atlassian demonstrate the capacity of SMEs to attain exceptional expansion and worldwide influence.

But to maintain this momentum, the issues impeding SME growth must be addressed. To establish an enabling environment, cooperation is required from the government, financial institutions, trade associations, and SMEs themselves.

The prosperity of Australia's SMEs is crucial to the country's economic future. Their sustained empowerment will play a critical role in strengthening Australia's thriving and dynamic economy. i

Nissan's Decline: A Story of Missed Opportunities and Mounting Challenges >

Once a titan of the automotive industry, Nissan now grapples with a series of setbacks threatening its long-term viability. From falling sales and a damaged brand image to an outdated product lineup and tensions within the RenaultNissan-Mitsubishi Alliance, the road ahead is fraught with peril.

Nissan, once celebrated as a beacon of Japanese automotive innovation, finds itself mired in a crisis that imperils its future. A combination of internal missteps, external market pressures, and a tarnished reputation has left the company struggling to remain competitive in an industry undergoing rapid transformation.

DECLINING SALES AND ERODING MARKET SHARE

The numbers paint a grim picture: Nissan’s global sales fell to 3.3 million vehicles in 2022, down sharply from a peak of 5.8 million in 2017. This precipitous decline is mirrored in shrinking market share, particularly in critical markets such as the United States and China.

A significant factor behind this drop is Nissan’s aging product lineup. Models like the Altima and Sentra, once staples of the brand’s success, now lag behind competitors in terms of design, technology, and consumer appeal. With buyers increasingly drawn to cutting-edge electric vehicles (EVs) and advanced driver-assistance systems, Nissan’s outdated offerings are a glaring liability.

Adding to its woes, Nissan’s reputation for quality and reliability—once a hallmark of the brand— has been severely dented. A series of scandals, including the arrest of former CEO Carlos Ghosn on financial misconduct charges and revelations of improper vehicle inspections at Japanese factories, has shaken consumer trust. This reputational damage has left the company fighting an uphill battle to attract buyers.

THE RENAULT-NISSAN-MITSUBISHI ALLIANCE: A FRAYING PARTNERSHIP

At the heart of Nissan’s challenges lies its strained relationship within the Renault-NissanMitsubishi Alliance. Established in 1999, the alliance was a groundbreaking partnership that promised shared technology, economies of scale, and a global footprint.

However, the arrest of Carlos Ghosn—credited with forging and steering the alliance—has laid bare deep fissures between the partners.

Tensions over control, strategic direction, and profit-sharing have undermined the alliance’s effectiveness.

For Nissan, the stakes are high. The company depends on the alliance to access shared technologies and platforms, enabling costeffective production and a competitive edge in global markets. If the partnership dissolves, Nissan would face formidable challenges in standing alone against industry giants with far greater resources.

REVIVING THE BRAND: THE PATH FORWARD

Nissan’s survival depends on its ability to address three pressing issues: its outdated product lineup, its tarnished brand image, and the uncertain future of its alliance with Renault and Mitsubishi.

REVITALISING

THE PRODUCT LINEUP

Recognising the need for transformation, Nissan has committed to an ambitious overhaul of its vehicle range. Under its "Ambition 2030" plan, the company aims to launch 12 new electric models by the end of the decade. This includes innovations in battery technology, such as solidstate batteries, promising enhanced range and faster charging.

EVs are a critical focus, reflecting both consumer demand and regulatory pressures to reduce emissions. However, success will require not only cutting-edge technology but also competitive pricing and compelling designs to capture the attention of discerning buyers.

REBUILDING CONSUMER TRUST

Nissan must also repair its damaged reputation. Strengthening corporate governance, improving quality control, and fostering transparency are essential steps. The company needs to show consumers it has learned from past mistakes by consistently delivering reliable, high-quality vehicles.

Restoring trust will also involve reconnecting with the emotional appeal that once made Nissan a household name. Iconic models like the GT-R and Z-series sports cars could play a key role in rekindling consumer enthusiasm, provided they are updated to align with modern preferences for sustainability and innovation.

NAVIGATING ALLIANCE UNCERTAINTY

The Renault-Nissan-Mitsubishi Alliance remains a double-edged sword. While the partnership

offers critical advantages, it also poses significant risks. Nissan must work to stabilise the relationship, finding ways to balance its interests with those of its partners.

One potential path is a renegotiation of the alliance’s structure, allowing for greater autonomy while preserving shared benefits. This could include joint development of EV platforms and shared investments in autonomous driving technologies, ensuring mutual gains without exacerbating existing tensions.

LESSONS FROM THE DECLINE

Nissan’s struggles serve as a cautionary tale for the automotive industry. Even giants with storied histories are not immune to complacency, market shifts, and poor governance. For Nissan, failure to adapt to the electric revolution, coupled with the fallout from scandals, has been particularly damaging.

Yet the company’s legacy of innovation suggests it has the potential to recover. Nissan pioneered

the affordable EV market with the Leaf, which remains one of the best-selling electric cars globally. If the company can recapture that pioneering spirit and align its strategies with the demands of today’s market, it may yet chart a path to renewed relevance.

A CROSSROADS FOR NISSAN

The challenges Nissan faces are formidable, but not insurmountable. With bold investments in EVs, a renewed focus on quality and trust, and careful management of its global alliances, the

company can regain its footing. However, the window for action is narrowing.

The road ahead is fraught with peril, but for a brand that once revolutionised the industry, there remains hope. Nissan’s ability to learn from its mistakes and adapt to a rapidly evolving landscape will determine whether it can reclaim its position as a leader in the global automotive market—or whether it will become a relic of the past, overtaken by nimbler, more forwardthinking competitors. i

Unveiling Georgia's Economic Potential: Strengths, Challenges, and Opportunitiess

GEORGIA’S ECONOMIC RENAISSANCE

Georgia,strategicallypositionedatthecrossroads of Europe and Asia, is undergoing a remarkable economic transformation. From impressive GDP growth to pioneering reforms, the nation is setting itself up as a beacon of opportunity for investors and businesses alike. While Georgia is making headlines across the world, largely as result of its crossroads position, it is also worth lookingatthefigures.

ECONOMIC DRIVERS AND KEY STRENGTHS

Georgia’s robust economic performance is underpinned by a dynamic private sector, a skilled workforce, and a strategic geographic location. After Covid, real GDP growth has averaged an impressive 9.8 percent annually, driven by a diverse mix of tourism, exports, and foreign investment. In 2023, the country’s GDP surged to $30.8 billion, a significant rise from $25 billion in 2022.

• Tourism: With its rich cultural heritage and stunning landscapes, Georgia attracted 6.2 million international visitors in 2023, generating $4.1 billion in revenue. Investments in worldclass hospitality infrastructure and international brand expansions have further solidified its reputation as a premier tourist destination.

• Renewable Energy: Leveraging its abundant hydropower and solar energy resources, Georgia is diversifying its energy mix. The government’s emphasis on renewable energy has opened up substantial investment opportunities, with hydropower projects leading the charge.

• Business-Friendly Reforms: Georgia consistently ranks high in global indices for economic freedom and transparency. Reforms to streamline regulations, enhance property rights, and reduce bureaucratic hurdles have fostered a thriving business environment.

• Real Estate and Manufacturing: The Fastgrowing real estate market, particularly in Tbilisi, and a growing manufacturing sector spanning industries, are additional pillars of economic strength.

STRENGTH IN STABILITY: THE ROLE OF THE NATIONAL BANK OF GEORGIA

The National Bank of Georgia (NBG) has been implementing efficient monetary policy and ensures financial stability. By implementing effective monetary policies and timely interest rate adjustments, the NBG has successfully anchored inflation expectations while fostering a conducive environment for business and consumer confidence. Despite global inflationary pressures, Georgia’s inflation rate was brought

down from 11.9 percent on average in 2022 to just 2.5 percent in 2023 and 1.1 percent in 2024. Since March, 2023 inflation is maintained well below the 3 percent target—a testament to the NBG’s proactive approach.

The bank has also taken significant steps to bolster financial stability. Georgia’s banking sector remains resilient, with adequate liquidity and well-capitalised institutions. Additionally, initiatives like the development of a green bond market highlight the NBG’s commitment to sustainable growth. Georgia’s first corporate green bond issuance in 2022—focused on renewable energy projects—is a prime example of how financial innovation is being leveraged to enhance economic sustainability.

Furthermore, the NBG has significant achievements in reducing the vulnerability of the financial sector to foreign currency fluctuations and external shocks. Since 2017, the NBG has implemented robust macroprudential measures to decrease the dependence on foreign currency fluctuations. To that end, the NBG has progressively increased the limits on unhedged foreign currency loans on several occasions.

These efforts have considerably reduced the share of foreign currency loans from 80% in the early 2010s to approximately 43% today. Similarly, the share of foreign currency deposits, which stood at comparable levels in the early 2010s, has decreased to 52%. Consequently, Georgia's financial sector has become more resilient to external shocks.

The NBG and Georgian financial institutions, as it has been many times underlined by the respective feedbacks and assessments of international partners, act fully in accordance with the financial sanctions imposed on the Russian Federation/Belarus by the United States and other respective parties.

Over the last years, the NBG has implemented a comprehensive regulatory and supervisory framework aimed at combating money laundering and terrorism financing (AML/CFT) in Virtual (Crypto) Assets Sector. As a result, in 2024 the Council of Europe’s Committee of Experts on the evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL) has positively assessed the measures taken by the National Bank of Georgia to prevent money laundering and terrorism financing (AML/ CFT). This assessment has elevated Georgia’s

compliance with Recommendation 15 of the Financial Action Task Force (FATF) from “Partially Compliant” to “Largely Compliant”, making it one of only seven MONEYVAL CoE member states to achieve this rating.

OPPORTUNITIES ON THE HORIZON

As Georgia continues its upward trajectory, it presents a host of opportunities across various sectors. The IT sector, driven by a burgeoning startup ecosystem, is one area ripe for innovation and investment. Similarly, agriculture remains a promising field, with fertile lands and favourable climates enabling a broad range of agricultural activities.

Geographically, Georgia’s position as a gateway between Europe and Asia enhances its logistics and trade potential. Investments in modern infrastructure, such as the Baku-Tbilisi-Kars railway, have amplified its role as a transit hub for global commerce. Enhanced trade agreements and partnerships could further unlock Georgia’s export potential. Additionally, a focus on digital trade platforms and e-commerce infrastructure can create new avenues for SMEs to participate in global trade, making Georgia an even more inclusive and diversified economy.

TURNING CHALLENGES INTO OPPORTUNITIES

Despite these strengths, Georgia faces challenges

Georgia: Tbilisi

that require careful management. However, these hurdles also present opportunities for growth and innovation:

1. Infrastructure Limitations: While infrastructure gaps in transportation and energy remain, they highlight opportunities for public-private partnerships and international collaborations. These initiatives can accelerate the development of critical infrastructure to sustain longterm growth. Recent advancements in green infrastructure projects, including solar farms and sustainable urban planning, also provide a pathway to addressing these limitations while meeting global sustainability standards.

2. Geopolitical Risks: Regional tensions are a reality for Georgia’s geopolitical positioning. However, the country has actively pursued policies to enhance regional cooperation and deepen ties with global trade partners, mitigating potential disruptions. Georgia’s strategic balancing act positions it as a reliable partner in an increasingly volatile global landscape. Its commitment to regional stability and international diplomacy enhances its profile for investment.

3. Corruption and Bureaucratic Inefficiencies: Although these issues persist, Georgia’s consistent improvements in transparency and governance underscore its determination to create a more efficient and fair business environment. Continued reform efforts are expected to address lingering inefficiencies,

supported by international collaborations and domestic initiatives. Leveraging technology, such as blockchain for public administration and digital tools for anti-corruption measures, further solidifies the government’s resolve to tackle these challenges effectively.

PAVING THE WAY FOR SUSTAINABLE GROWTH

Georgia’s progress is not accidental but the result of deliberate and strategic initiatives. As investor interest continues to grow, Georgia’s attractive valuation metrics and high dividend yields— often surpassing European averages—strengthen its investment case.

Environmental, Social, and Governance (ESG) principles are at the forefront of Georgia’s development strategy. By aligning with global trends in sustainability, the country is not only safeguarding its future but also creating new avenues for ethical and environmentally responsible investments. These efforts are complemented by initiatives to bolster local entrepreneurship, further diversifying economic opportunities. Moreover, Georgia’s commitment to renewable energy, including hydropower and solar investments, reinforces its role as a leader in sustainable development.

FORGING A PATH TO REGIONAL LEADERSHIP

Looking ahead, Georgia aims to solidify its

position as a regional economic leader. This vision includes:

• Diversifying its economy beyond traditional sectors to include technology and innovation.

• Enhancing human capital through education and skill development to meet the demands of a modern economy.

• Strengthening legal frameworks to ensure a fair and efficient judiciary system that bolsters investor confidence.

• Expanding regional integration to maximise trade and investment opportunities.

Additionally, Georgia’s strategy emphasises digital transformation, with investments in 5G networks, AI-driven logistics, and smart city initiatives setting the stage for future economic competitiveness. Collaboration with international technology firms and academic institutions will be instrumental in this transition.

Georgia stands at a promising juncture, with a blend of economic resilience, strategic reforms, and visionary leadership propelling it forward. By leveraging its strengths, addressing challenges constructively, and fostering an inclusive investment climate, the country is poised to unlock its full potential. For businesses and investors alike, Georgia offers a dynamic and thriving environment rich with possibilities. i

Women’s Brain Foundation: The Hidden Cost of Ignoring Women’s Health

Women’shealthismorethanamedicalissue—it’saneconomicone.Withgendergaps in research, treatment, and workplace wellness costing the global economy trillions, investinginwomen'swell-beingisn’tjusttherightthingtodo;it’safinancialimperative. Sowhyarewestillfallingbehind?

WHY INVESTING IN WOMEN’S WELL-BEING IS AN ECONOMIC IMPERATIVE

Every day, millions of women juggle caregiving, careers, and community responsibilities—often at the expense of their own health. This invisible labor, undervalued and overlooked, isn’t just unfair—it’s uneconomical. According to the World Economic Forum, investing in women’s health research could add $1 trillion to global GDP by 2040. But what if we factored in the economic value of unpaid caregiving? That number would skyrocket, unlocking transformative potential. So why are we still lagging behind?

THE MISSING FEMALE PERSPECTIVE

For decades, medical research has been conducted largely through a male-centric lens. Before advocacy groups like the Women’s Brain Foundation (WBF) began pushing for change, diseases and treatments were studied without accounting for sex and gender differences. The consequences have been devastating: women experience migraines, Alzheimer’s disease, anxiety, depression, and multiple sclerosis at disproportionately high rates, yet their symptoms are often misdiagnosed or misunderstood. Even when their conditions are acknowledged, women’s clinical presentations frequently differ from men’s—as seen in heart disease and Alzheimer’s, where symptoms in women are often dismissed or under-researched.

Addressing these disparities isn’t just about fairness—it’s about economic impact. Closing the gap in women’s health research could unlock the $1 trillion GDP gain projected by experts, and likely much more.

THE ECONOMIC TOLL OF NEGLECT

The financial and societal costs of failing to address sex and gender disparities in health are staggering. A 2024 study published in BMC Public Health found that women take more sick leave than men, particularly for long-term illnesses. Women are disproportionately affected by mental health disorders, musculoskeletal diseases, and endocrine conditions—all of which contribute to lower workforce participation and lost productivity.

For example, the study showed that recovery rates for musculoskeletal disorders differ dramatically by gender. After three months, 67% of men had recovered, compared to just 51% of women. The same pattern emerged in mental health conditions: 44% of men recovered within the same period, but only 37% of women did. Over ten years, data from 5 million Dutch employees demonstrated that these gaps drive up healthcare costs and economic losses.

Why does this disparity persist? Researchers point to the burden of dual roles as employees and caregivers, compounded by social expectations

that increase stress and delay recovery. As one researcher noted, "Understanding why women take longer to recover is crucial—not just for equity, but for economic stability."

THE BUSINESS CASE FOR WOMEN’S HEALTH Companies with more women in leadership consistently outperform their peers. A 2023 Forbes study found that businesses with at least 30% female leadership were 12 times more likely to rank in the top 20% for financial performance. Yet, on average, women spend 25% more of their lives in poor health than men—amounting to nine additional years of illness. This forces many

"Women’s health isn’t just a women’s issue—it’s a global economic issue. When half the population is healthier, everyone benefits."

to exit the workforce early, impacting families, businesses, and economies.

Closing this health gap isn’t just about women— it’s about societal resilience. Prioritising women’s health doesn’t just add years to life—it adds life to years for everyone.

BRAIN HEALTH: THE MISSING ECONOMIC ENGINE

Women’s brain health is one of the most overlooked drivers of economic growth. Research by WBF and McKinsey found that addressing lifelong brain and mental health conditions in women could account for 25% of the projected $1 trillion GDP gain.

Consider migraines—a neurological disorder affecting 80% of women with strong hormonal links. Yet, migraine treatments remain 22% less effective for women than men, despite their higher pain burden. Similarly, 71% of global anxiety disorders could be prevented or better managed with proper treatment. Instead, these conditions remain underdiagnosed and undertreated, draining productivity.

Postpartum depression (PPD) is another glaring example. The biological and hormonal complexities of PPD are frequently overshadowed by social expectations around motherhood. The only FDA-approved PPD treatment costs $34,000—excluding hospital stays—and is rarely covered by insurance. Left untreated,

maternal distress can impair infant brain development, perpetuating cycles of inequality across generations.

SIGNS OF PROGRESS

There are promising developments:

Melinda Gates' Pivotal Ventures has committed $250 million to advancing women's health research.

The U.S. National Institutes of Health (NIH) now mandates that all federally funded research include women and minorities unless explicitly justified otherwise.

The Women’s Brain Foundation is pushing for the creation of a global research institute dedicated to sex- and gender-based studies.

However, challenges persist. Biotech firms still struggle to find female-specific cell lines for research. Genomic studies often exclude X chromosome genes, dismissing them as “too complex.” These biases stall innovation and threaten progress toward the United Nations' Sustainable Development Goals (SDGs) for gender equality and healthcare.

A CALL TO ACTION

Unlocking that $1 trillion GDP boost requires more than just research—it demands systemic change. Governments, corporations, healthcare professionals, educators, and investors must

collaborate to transform women’s health into a global priority.

The future Women’s Brain Foundation Research Institute could lead this charge, but lasting change requires commitment, investment, and advocacy. Every industry, from tech to finance to healthcare, has a stake in ensuring women are healthier and able to participate fully in society.

Women’s health isn’t just a women’s issue—it’s a global economic issue. When half the population is healthier, everyone benefits. The question is no longer whether we can afford to invest in women’s health.

The real question is: How much longer can we afford not to? i

ABOUT THE WBF

Established in 2017 by a team of globally recognised neuroscientists, clinicians, and policymakers, the Women's Brain Foundation is dedicated to uncovering evidence-based neurological differences between sexes and genders. Over the past seven years, WBF has published significant research on biological, societal, and economic disparities and their impacts on health. In early 2025, the foundation will officially launch the Research Institute for Sex and Gender Precision Medicine in Basel, Switzerland. Connect with WBF on LinkedIn, X (formerly Twitter), Instagram, TikTok, YouTube, and Facebook.

> Asian Development Bank - The Cost of Inaction: How Climate Change Threatens Asia and the Pacific

By David A Raitzer Senior Economist at the Asian Development Bank’s Economic Analysis & Operational Support Division, Economic Research & Development Impact Department

Without decisive and sustained action, Asia and the Pacific face unprecedented warming, extreme weather, and economic devastation. Rising temperatures, intensifying storms, and severe flooding are just a glimpse of what’s to come if urgent measures are not taken.

Climate change is no longer a distant threat—it is already reshaping the world. Even if all greenhouse gas emissions ceased today, the effects would continue to intensify. This is because global warming is driven by the accumulation of greenhouse gases in the atmosphere, not just current emissions. The challenge is twofold: while long-term mitigation remains essential, adaptation is now critical to managing the damage that is already unfolding.

A CLIMATE ON THE BRINK

As of mid-2024, atmospheric carbon dioxide (CO2) levels had reached 422 parts per million (ppm)—a staggering 50% increase from the preindustrial level of 280 ppm. Two-thirds of this rise has occurred since 1970, with the rate of increase accelerating over time. The last time CO2 levels were this high, millions of years ago, Earth was a vastly different planet.

Since the mid-18th century, human activities have pumped 1.5 trillion tons of CO2 into the atmosphere. To meet the Paris Agreement targets, future emissions must be a fraction of current levels, despite record global population and economic growth. Yet, the world is moving in the wrong direction.

By 2023, global temperatures were already 1.46°C above preindustrial levels, with the World Meteorological Organization confirming that the 1.5°C threshold has now been breached. The pace of warming is also accelerating—since 1982, the rate of temperature increase has tripled. The last 10 years (2014–2023) were the hottest on record, and February 2024 was the warmest month ever recorded.

TIPPING POINTS AND CASCADING RISKS

The impacts of climate change depend on whether global warming is kept within the Paris Agreement target of well below 2°C, with efforts to limit it to 1.5°C. However, even with aggressive action, further warming is inevitable. Under current policies, global temperatures could rise by 3°C by 2100, with additional feedback loops—such as thawing permafrost and warming oceans—potentially pushing temperatures even higher.

Author: David A Raitzer

Ecosystems that once absorbed carbon are becoming emitters. Tropical forests and peatlands, once major carbon sinks, are now releasing more CO2 due to wildfires, deforestation, and human activities. In 2023, the world saw a substantial slowdown in natural carbon sequestration, raising fears that ecosystems will soon accelerate climate change rather than mitigate it.

If warming surpasses 4.7°C, some regions could become nearly uninhabitable. Southeast Asia, which historically experienced fewer than 20 days per year above 35°C, could see over 180 extreme heat days annually by 2100. South Asia would see over 200 extreme heat days, while parts of East Asia and Central and West Asia would experience nearly 50 days above this threshold. The consequences would be severe—

labor productivity in high-exposure sectors could plummet by up to 30%, and energy demand for cooling would skyrocket.

A FUTURE OF INTENSIFYING STORMS, FLOODS, AND RISING SEAS

Climate change is already amplifying storm intensity across Asia and the Pacific. Between 1979 and 2016, cyclones in East and Southeast Asia increased in duration by two hours after landfall and traveled 100 kilometers further inland. Under a high-emissions scenario, the destructive power of cyclones could double by 2100, far outpacing global averages.

Meanwhile, sea levels are rising at an alarming rate. By 2100, global sea levels could rise by 0.8 meters, but parts of Asia and the Pacific are seeing rates of relative sea-level rise twice

the global average. Compounding this risk is the growing instability of the Arctic and Antarctic ice sheets, which could accelerate sea-level rise even further.

With over 300 million people in Asia and the Pacific living in low-lying coastal areas, the stakes are enormous. Under high-end warming scenarios, entire cities and economic hubs could be swallowed by rising seas. The cost of inaction will be catastrophic: by 2070, trillions of dollars in capital damage could be incurred annually due to sea-level rise, storm surges, and coastal flooding. The hardest-hit populations will be in China, India, Bangladesh, and Vietnam, where affected communities could triple by 2050, surpassing 50 million people annually by 2070.

The devastation will not be confined to coastlines. Intensified rainfall and extreme storms will cause massive inland flooding and landslides, displacing millions. By 2070, 110 million people per year could be affected by riverine flooding alone, with annual damages reaching into the trillions.

A Blow to Agriculture, Fisheries, and Livelihoods

The impact on agriculture, fisheries, and

forestry will disproportionately harm poor and vulnerable communities. The majority of lowincome populations in Asia and the Pacific rely on agriculture for their livelihoods, and food constitutes the largest share of their household consumption. As climate disruptions grow more severe, food security will deteriorate, worsening hunger and poverty.

Rising temperatures, shifting rainfall patterns, and increased frequency of droughts and floods will make farming more unpredictable, reducing crop yields and pushing up food prices. This will exacerbate economic inequality, disproportionately harming those who are least equipped to cope.

THE ECONOMIC COST OF CLIMATE CHANGE

The financial toll of climate change on Asia and the Pacific will be staggering. Under a high-emissions scenario, the region could lose 17% of its GDP by 2070, compared to a 2020 baseline. The most vulnerable countries could suffer losses of up to 30% of their economies. By 2100, the economic damage could be even greater, with GDP losses reaching 41% regionally and some nations losing up to 78% of their GDP.

These projections account for well-understood risks, but unknown threats loom large. Disruptions to ecosystem services, biodiversity loss, and climatic instability could push losses far beyond current estimates. The harsh reality is that climate change is already transforming the world in drastic and irreversible ways.

THE PRICE OF DOING NOTHING

Ignoring this crisis not only accelerates warming but also deepens the vulnerability of billions of people—particularly in Asia and the Pacific, where rising seas, intensified storms, and food insecurity threaten to devastate entire economies.

The choice is clear: either take decisive action now or face an unmanageable future. Every year of delay worsens the consequences, making adaptation costlier and the damage more severe. The time for half-measures is over—inaction is not an option. i

Theviewsexpressedarethoseoftheauthorand donotnecessarilyreflecttheviewsoftheAsian Development Bank, its management, its Board ofDirectors,oritsmembers.

Koh Chang, Trat, Thailand: Koh Ngam

Joschka Fischer:

Don’t

Dismiss the BRICS

Donald Trump’s election as the 47th president of the United States has undoubtedly filled Russian President Vladimir Putin with hope. Trump has long expressed his admiration for Putin, and he has given every indication that he will discontinue President Joe Biden’s policy of providing substantial material support to Ukraine (weapons, intelligence, and financing) in its defense against Russian aggression.

Moreover, Trump’s choice of vice president, JD Vance, shares his view, stating that “The American people will not tolerate another endless war, and neither will I.” With Republicans gaining control of both houses of Congress and pursuing draconian cuts to any spending that is associated with Democratic priorities, US support for Ukraine will soon be withdrawn.

Regardless of what we tell ourselves, we Europeans will not be able to compensate for the loss of American financial and military aid for Ukraine. We have neither the will nor the capacity to do so. And while many have described recent developments in Syria as a loss for Putin, that doesn’t make them a win for the Ukrainians and Europe.

To be sure, Putin has lost a key ally with the downfall of Bashar al-Assad, and another important partner, Iran, has been significantly weakened in recent months. The victory of Syrian opposition forces means that Iran will be deprived of its direct land bridge to Lebanon and the Mediterranean. Moreover, the Israelis have severely eroded Iran’s “axis of resistance,” eliminating the top leaders of Hezbollah and Hamas, and even taking out Iran’s primary domestic air defenses.

In the wake of the Assad regime’s collapse, Russia is withdrawing its forces from its air and naval bases on Syria’s Mediterranean coast, which means that it is losing essential conduits for supplying the forces it has deployed in various African countries. For a leader who harbors global power ambitions, this marks a severe setback.

Putin’s strategic loss in the eastern Mediterranean might be only partly mitigated by a “deal”

"To

be sure, Putin has lost a key ally with the downfall of Bashar al-Assad, and another important partner, Iran, has been significantly weakened in recent months. The victory of Syrian opposition forces means that Iran will be deprived of its direct land bridge to Lebanon and the Mediterranean."

with Trump. For example, the incoming US administration could pursue a grand bargain in which Russia supports US-Israeli efforts to shut down Iran’s nuclear program in exchange for a face-saving partial victory in Ukraine.

Alternatively, Trump’s arrival in the White House could amount to a green light for Israel to launch strikes on Iranian nuclear facilities. Could the Iranian regime even survive such an attack politically, given its apparent weaknesses?

This scenario would be catastrophic for Putin’s dreams of global influence, because it would fundamentally alter Russia’s role in the Middle East and on the world stage. Former US President Barack Obama’s dismissive description of Russia as a “regional power,” rather than a great one, would be confirmed. Russia would still have a powerful partner in China, but China’s own estimation of its northern neighbor’s importance would be significantly downgraded.

But another possibility is that Trump will simply roll over for Putin by forcing the Ukrainians into ceasefire negotiations and territorial concessions without any effective Western security guarantees. Such a grotesque outcome would further alter Europe’s own security architecture. NATO would still exist, but its relevance would be much in doubt as long as Trump is in office. European security would henceforth depend

on Ukrainian security. Its future prosperity and stability would be tied to a fragile ceasefire that would do nothing to counter the constant threat of Russian hybrid warfare.

In other words, from Europe’s perspective, Trump and Vance’s idea of peace will be nothing of the kind. Europe will continue to face profound risks to its security and internal cohesion, only now it will be confronting them alone. What will Putin do with the reprieve offered by a suspension of hostilities? What will it mean for Europe if the situation in Syria deteriorates and produces another 2015-style refugee crisis?

Faced with so much uncertainty, Europeans have no choice but to pursue considerable investments in rearmament and security, even if such outlays become more difficult under conditions of flagging growth and a new trade war.

It is easy to campaign on a message of “America first” when you have oceans and thousands of miles between you and the fraught conflict zones of Eastern Europe and the Middle East. But Europeans enjoy no such luxury, and we no longer have any excuse for complacency. i

ABOUT THE AUTHOR

Joschka Fischer, Germany’s foreign minister and vice chancellor from 1998 to 2005, was a leader of the German Green Party for almost 20 years.

"Alternatively, Trump’s arrival in the White House could amount to a green light for Israel to launch strikes on Iranian nuclear facilities. Could the Iranian regime even survive such an attack politically, given its apparent weaknesses?"