Business Arena nr. 89 - Building a Secure 5G Future

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Q u a l i t y ***** A d m i r e

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No.89/2020

magazine

BUILDING A SECURE 5G FUTURE

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special section inside

A 5G network is not just a communications network – it represents critical infrastructure for the 21st century economy.

ADRIAN ZUCKERMAN, U.S. AMBASSADOR

TOP BRAND

w w w. b u s i n e s s - a re n a . ro

LUXURY & LIFESTYLE

pages 38 - 63

pages 12-13

EDITORIAL

by

Cristian Cojanu

THE HARDER THE WORK, THE SWEETER THE REWARD After years of populist economic policies and legislative changes seen as a threat to the rule of law and independence of the justice system, a largely critical European Commission country report came as no surprise. "In the absence of lasting reform efforts, growing fiscal and current account deficits are putting the sustainability of Romania's economic growth at risk," the Commission pointed out in its 2020 European Semester country report, assessing progress on structural reforms and correction of macroeconomic imbalances. The report also showed that the consumption-led growth model had pushed the country's current account and public finances into "rising deficits."

"Without a correction of the fiscal and external deficits and a firm commitment to implement structural reforms, Romania's convergence towards EU living standards is likely to suffer important set-backs."

Moreover, the report noted that "Romania has made limited progress in addressing the 2019 country-specific recommendations," and "corruption continues to be a major problem for the business environment." "While the government currently supports actions to prevent and sanction corruption, Romania is facing important challenges to restore progress in the fight against corruption following damages done in the past years through legislative amendments and continued pressure on judicial institutions."

The Commission also indicated that "growth is expected to ease off progressively over the medium term." It said: "Real GDP growth is set to decelerate

to 3.8% in 2020 and to 3.5% in 2021, with consumer spending as the main driver of growth. Net exports are forecast to remain a drag on growth, but slightly less so than in 2019. Lastly, the contribution of investment is expected to stay positive, albeit at lower levels, over the coming years, supported by construction and an acceleration in the absorption of EU funds."

Meanwhile, business leaders, investors, and entrepreneurs are growing increasingly concerned about the effect the Covid-19 outbreak will have on the world economy and businesses. And on top of everything, Romania's political uncertainty seems far from over.

However, we at Business Arena are fully confident that Romania has many resourceful businesses and business people, and with hard work, dedication, and inspiration their success stories can be even greater in 2020, in spite of the difficult market conditions.

On this note, based on reader request, we are proud to announce the addition of a fourth major gala event to our events calendar. With a strong tradition in recognizing business success and achievements, Business Arena is launching The Brand Excellence Hall of Fame Awards, a new project designed to expand the scope of our annual award ceremonies.

Moreover, The Book of Excellence will be launched later this year, putting under the spotlight all Business Arena award winners.

And, as always, Business Arena will continue to keep an eye on all the issues affecting the business community, reflecting its views, hopes and challenges.

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

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OPINION

THE SMALLEST OF THE SMALLEST AND THE MIGHTIEST OF THE MIGHTIEST:

A VIRUS VS CHINA

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BY OVIDIU CONSTANTINESCU, FACE PR AND NEWS

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some point, WTI went, breifly, below the 50$/barrel level before bouncing back slightly.

That signals that the world doesn’t need so much oil, at least for the foreseeable future. The The smallest of the smallest and the mightiest reason for it is that the mighty China is about to of the mightiest: a virus vs China be brought to its knees by the smallest of the If you pay less for your gas at the filling stasmallest living creatures. The fact that the tion these days there is no reason to be happy.

Chinese authorities have taken On the contrary, you should be unprecedented measures to conworried. Very very worried, in tain the virus and seal off a 14-milfact. Those inconspicuous digits lion-people city, building in a blink that one sees at the pump are of an eye two hospitals exclusively far more accurate in predicting for people infected with what has the ups and downs of the world become the Wuhan pneumonia or economy, and the Romanian the Wuhan coronavirus, shows the economy for that matter, than kind of nervousness that we have any TV pundit. When the US not seen even during the SARS outtook out the head of Iran’s break, 15 years ago. security services, up it went for Bit by bit, China is cut off from a day or two, then it calmed the rest of the world and “quaranitself down, signaling that there tined”. By the way, if you didn’t will be no war between the two know, the word “quarantine” had to states and the confrontation do with shipping goods and internawill not go beyond a certain tional commerce. During the Plague limit, thus not putting pressure OVIDIU CONSTANTINESCU of 1347-50, the city of Dubrovnik on the world oil supply. The (Ragusa, at the time) passed a law main stock exchanges, from Tokyo that would impose a 30-day (hence, “trentino”) to New York, breathe a sigh of relief that the period of isolation for ships arriving from plagueeconomy will continue to run smoothly. affected areas. No one was allowed to go to the But, for the past few weeks, there has been a ships under trentino, and the ones who would do sense of nervousness on the oil market and on it, would be themselves subjected to the “trentistock exchanges. The Brent and the WTI benchno” law. For some reason, the 30-day isolation marks are going down. Steep and steady. At

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period was extended by Venetian authorities to 40 days, hence “quarantino”. During the “quarantino,” ships were anchored in the harbor, but no one would be allowed to come ashore.

The modern “quarantino” means that almost 50 airlines, including the mighty British Airways, Air France, American Airlines, Delta, EL-AL, Cathay Pacific, have reduced their flights to China or cut them altogether until further notice.

Many states refuse entry to people coming directly from China. Large multinationals are scaling down their activities there and encourage their staff to “work for home” or take longer holidays. In a rather sad twist of irony, the travel companies were forced to cancel holidays by the tens of thousands, while Disney had to close its Shanghai and Beijing theme parks. Even worse, the outbreak coincided with the Chinese New Year, a period of high travel and high spending, so many luxury brands that are popular in China took a nosedive on the stock markets.

Is therefore the coronavirus epidemic on the verge of throwing the spanner into the wheels of the world’s largest production plant, the Chinese economy that is, and plunge everyone into recession? And what about Romania's economy? Is it ready to face a world economic crisis?

Well, the truth of the matter is that the perspectives are not encouraging at all. The wageled-growth miracle cure proved to be just an illusion that has left the Romanian government with a real budget deficit of 4.6% for 2019. All

the creative accounting schemes employed by the previous Finance Minister to keep the budget deficit bellow the EU’s 3% ceiling in 2018 had a spillover effect in 2019, and come March we will literally start paying for it. The over-deficit infringement penalties are just around the corner.

For the last five months, the industrial output has shrunk. Furthermore, Romania is living on borrowed money, oddly enough, in a period of economic growth. Yet, the borrowed money is not being used for new investments and badly needed infrastructure projects, but to pay unrealistically inflated salaries in the public sector that had nothing to do with an increase in productivity. The Liberal government has started to undo the evils of the Government Emergency Ordinance 114, but there will be some time before strategic sectors like the energy, communications and banking get back to the place they were before. Then there is the drought, one of the most severe in decades. I can’t remember a winter, in the past half a century, with no snow whatsoever by the end of January. We really need something of a miracle to have the required humidity in the soil to avoid a catastrophic harvest (what harvest?) come summer/autumn 2020.

So, next time you pass a petrol station pay attention to the listed prices for gas, diesel and LPG. You may find out when recession hits a day earlier than others.

OPINION

SHORT-TERM BENEFITS FOR ONLY A LIMITED NUMBER OF PEOPLE OR THE INTEREST OF ALL ROMANIANS? Election years are the most effervescent ones as regards the number of legal initiatives, at least in the financial and banking field. The correlation between election years and enhanced legal risk in the banking sector is a direct one.

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BY GABRIELA FOLCU! EXECUTIVE DIRECTOR, ROMANIAN ASSOCIATION OF BANKS

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The uncertain and unpredictable legal framework in the financial and banking sector, with direct implications upon the banking sector’s solvency has lately been the headliner of the main risks identified both by commercial banks and by the National Bank of Romania. Currently, this not-at-all-predictable legal framework represents the main severe systemic risk, being at the same time, a very difficult-tomanage risk. The Romanian Association of Banks (RAB) together with commercial banks frequently underline the recurrence of this legal risk ‘phenomenon’. This true ‘phenomenon’ of Romanian legal initiatives relies mainly on provisions that are not in line with the Constitution of Romania or with the universal law principles valid at national and at European level. The consistency of these mismatches with the European legislation and the breaching of principles make these projects be toxic for consumers, for the banking industry and for Romania’s economy.

Actually, we have been witnessing additional and artificial pressure on local banks, by the creation of filters which affect the competitiveness of the banks operating in Romania compared to the banking institutions from other European states. The standardisation of the European legislation is meant to allow European Union citizens to choose products and services from several states. Actually, this translates into more competition. And then, the question comes: “With such law drafts that affect the free market, with more competition and costs, can Romanian banks continue being competitive?” Contemplating encroaching

GABRIELA FOLCU} competition and having millstones around our necks make it very difficult.

The effervescence of this phenomenon has been measured. In the last 5 years, the unpredictability of the banking law framework has been accelerated by the increase, year after year, in the number of legal initiatives, laws and regulations (about 50 new laws during 2014-2018). In almost all our public positions as well as in formal and informal meetings, we have mentioned that one of the main reasons of the financial intermediation deceleration in Romania is this legal framework. Luckily, some of the decisionmakers are responsive to the banking industry’s arguments. The more responsiveness, the more chances for Romania to perform better. There is a direct correlation between financial intermediation and economic welfare. Romania ranks last in the European Union as regards financial

intermediation (non-government credit /GDP), i.e. 27% and ranks penultimate in the EU countries top when it comes to economic welfare with $12,300/capita.

The banking community has been concerned about the negative impact that is to influence consumers, banks and the national economy if some law drafts are passed, as they induce risk into the sector. Recently, RAB has published the outcome of an impact survey conducted by KPMG Advisory, regarding four of the law drafts which are currently under debate in the Chamber of Deputies. Unfortunately, promoting such initiatives has created false expectations among some consumers.

The law drafts on the conversion of the payment currency of a credit contract at its initial exchange rate plus at most 20%, the capping of interest rates, limiting the writ of execution character of contracts together with debt release at the actual transfer price plus the interest, all institute fundamentally wrong solutions. They breach the decisions ruled by the Constitutional Court of Romania, being susceptible of harming financial stability and affecting "banks" as part of the National Critical Infrastructure, while also affecting household and corporate lending next to investors’ trust in the Romanian State. We have requested - many times for that matter, a true and constructive dialogue in order to debate the law drafts which could have multiple negative implications for consumers and credit institutions and at macroeconomic level too. We must be careful when we want to have positive effects for a limited number of consumers so as not to generate much more harm for all consumers and across the entire economy. The economic balance is fragile while economic circuits could be severely affected, just like the wheels in a clock for that matter.

If passed, these law drafts’ impact could lead to the slowing down of economic growth, the shrinking of consumption and of investments and lower revenues into the state budget, besides other effects which will affect consumers directly and indirectly.

The KPMG survey shows that a potential shrinking of household and corporate lending by 5% following a lower capacity of credit institutions to finance the private sector is estimated to lead to the shrinking of consumption by 1.95%, of investments by 0.30% and of the Gross Domestic Product by 2.64%. A lower lending volume to households and to corporations by 5% would generate a lower Gross Domestic Product by 24.81 billion lei. The main negative effects with

direct and prompt impact upon consumers pertain to tighter lending terms, a smaller range of loan products and less lending potential plus additional costs for enforcement proceedings.

And, a smaller range of loan products and less lending potential for consumers lead to less competition on the consumer loan market and therefore consumers turning to the unregulated loan market. Is this what is actually intended?

The shrinking of lending has direct impact upon consumption and upon the population’s net wealth; and, with the deceleration of mortgage lending there is more pressure on the real estate market. The effects upon consumers and upon credit institutions could generate chain effects on the economy in general while the absence of legal predictability could have negative consequences on the business environment and on investments.

The impact upon banks pertains to more NPLs and the direct harming of credit institutions’ capitalization and lending capacities. Romania has had one of the highest speeds as regards the reduction in the NPL rate among European countries, the cut happening 5 times during five years up to 4.33% in November 2019. A cut in the NPL rate to 3% could generate for credit institutions additional capital amounting to 2.3 billion lei which could mean an additional loan volume of 22.6 billion lei.

The going up in the NPL rate brings about higher country risk. And more country risk generates higher borrowing costs for the Romanian state, the population and companies, including here the risk generated from abroad.

The measures could affect stability and the banking sector’s profitability outlook, making investors become less interested in this sector.

So, it is no wonder that the number of banks operating in Romania shrank from 43 before the crisis to 34 today.

All these are the effects foreseen only for four out of the seven projects that are the topic of debates in Parliament, projects which fully contribute to the severity of the legal risk in the banking sector of Romania. Just like always, the banking industry will be present, ready to explain the main risks induced in the economy by the passing of these law drafts. We are to see whether there will be responsiveness among the majority as regards the negative effects these law drafts could bring about for all the Romanians and for the whole economy. Will they choose the short-term benefits for only a limited number of people to the detriment of all the Romanians’ medium- and long-term interest?

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BANKING

BANKS LAUNCH AWARENESS CAMPAIGN

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Local banks have announced the launch of an awareness campaign, attempting to improve communication with the general public on issues concerning banks' role as facilitators of development and prosperity. The new campaign, #DreptulLaBanking, also intends to highlight ways in which the public can benefit from all the tools offered by banks.

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According to its initiators, the campaign talks about mutual trust between people and the banking system, which, in their view, is essential for the growth of individual well-being, as well as the development of the Romanian economy.

Emphasizing that the new campaign facilitates dialogue about banking and about banks' contribution to economic prosperity, Sergiu Oprescu, Chairman of the Board of Directors, Romanian Association of Banks, also noted that financial intermediation was still very low in Romania. "There is a connection between prosperity and financial intermediation," said Oprescu. "With a financial intermediation rate of only 27% in 2019, Romania is well below the EU average of 83%, and below countries with emerging economies, such as Poland, Czech Republic, at 52%, and even Bulgaria, where financial intermediation stood at 51%." #DreptulLaBanking starts from basic financial needs, such as buying a home, paying for goods, saving, and it also supports investments in modern and high-performance agriculture, infrastructure, education and healthcare. In addition, the banks suggested that the campaign represented an invitation to all Romanians to become better acquainted with the opportunities provided by the banking system and the rules governing this industry.

Banks already play a crucial role in the local economy, and the combined value of mortgage and other real estate loans amount to 20 billion euros, accounting for 10% of Romania's GDP. In turn, around 100,650 companies are growing their business with financing from banks, according to end-2019 data. The total value of loans granted to companies amounted to 25 billion euros, at the end of November 2019. Moreover,

entrepreneurs have secured financing.worth 17 billion euros for SME development. Romanians make some 885 million electronic transactions per year, while the agriculture received more than two billion euros in loans, according to September 2019 data.

In his speech, Steven van Groningen, President and CEO, Raiffeisen Bank, pleaded for a return to a sense of normality in the industry. "Financial intermediation is indeed very low, and we want a normal situation in which people save more money in the bank, which, in turn, finances the real economy and increases prosperity," he said, and added: "Trust is extremely important. I think that in a year we will see the beginning of a movement towards normality, in which the banking system will do what it has to do, namely to create prosperity in the society of which it is a part."

In turn, Gabriela Folcut, Executive Director, Romanian Association of Banks, pointed out that banks hoped to raise general awareness about their positive role in everyday life. "We want to increase the power of the banking system to support entrepreneurs and their businesses in Romania for two reasons. Firstly, the entrepreneurial footprint in Romania is quite small. There are only 29 SMEs per 1000 inhabitants, compared to the EU average of 58 SMEs per 1000 inhabitants. Secondly, we still do not have a strategic approach to increasing financial intermediation in Romania. We need to identify those barriers that currently stop the development and growth of financial intermediation in Romania, and, why not, eliminate those barriers so that banks can better finance companies."

The initiators also hope the campaign will contribute to increasing the level of financial education among consumers.

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HALL OF FAME

2020 AWARDS With its strong and diverse tradition in creating new platforms for the business community to share their views and ideas, and in recognizing business success and achievements, spanning over 10 years, Business Arena is launching a new project designed to expand the scope of its annual award ceremonies, adding a new gala to its events calendar.

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

Innovation, resourcefulness, perseverance and a culture of responsible risk-taking have helped many overcome major challenges. Thus, the new awards gala recognizes organizations that have achieved outstanding results through initiatives that demonstrate excellence in brand management.

20.00 - 20.30 Registration and welcome cocktail; 20.30 - 21.15 Awards ceremony (part one); 21.15 - 21.30 Live music, fashion presentation; 21.30 - 22.15 Awards ceremony (part two); 22.15 - 22.30 Live music; fashion presentation.

Celebrating achievement, innovation, and strong brand strategy, the 2020 Brand Excellence Hall of Fame Awards cover the following categories: • Automotive Brand of the Year; • Best Pharmaceutical Brand of the Year; • Brand of the Year in Hospitality; • IT Brand of the Year; • Most Admired Telecom Brand; • Best Real Estate Brand; • Romanian Brand of the Year; • Retail Brand of the Year; • Romanian Banking Brand of the Year; • Best Banking Brand; • Most Admired Banking Product

TECH GIANTS EXTEND THEIR HEALTHCARE ROLE Medical services are set to become digital, personalized and preventive in the next decade, which will require major transformations in the healthcare systems and data usage, and in this context the role of tech giants is increasing.

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BY RUXANDRA TĂ‚RLESCU, PARTNER, PWC ROMANIA

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As medical services become more and more patient-centered, they will focus on prevention, diagnostics and digital solutions, such as mobile applications, intelligent monitoring devices and artificial intelligence (AI) analysis tools. But this trend poses some critical challenges for the society in the near future, as identified by PwC's report on the future of healthcare, "Driving the future of health". There are transformations that healthcare systems would have to go through in order to be able to use personal data both for improving health and care, and, secondarily, for research and development of new services and therapies.

Currently, in most countries, health data is not interoperable due to unresolved technical and administrative problems, which hinders its use. Therefore, physicians and companies in

the field need to redefine their roles, regulatory authorities to create the appropriate legislative framework for digital healthcare solutions and sensitive data exchange, and payers need to consider new types and ways of spending.

In this context, the big tech companies that have a vast expertise in using data and analysis have started to apply it successfully in the field of healthcare services.

The latest example is Amazon which, in 2019, entered in the healthcare sector with Alexa, adding the virtual assistant's ability to collect and transmit patient data. Prior to launch, this application was found to be in accordance with the US law on portability and liability in the field of health insurance, being an important requirement in the sector when it comes to ensuring confidentiality of medical data.

Amazon is not a unique example, and other leading global technology companies, Alibaba,

EXIMBANK COMPLETES BANCA ROMÂNEASCĂ ACQUISITION EximBank has announced the completion of its acquisition of Banca Româneasc\ (BROM). The offer, made in June in accordance with the applicable law in Romania, was part of EximBank’s agreement with National Bank of Greece (NBG) to acquire its 99.28% stake in BROM. With the acquisition, EximBank enters into the attractive retail banking segment, transforming itself into a fully universal banking entity and continuing to fulfil its long-term mission to support and promote Romania’s economic development.

The combined bank will feature among the top 10 banks in Romania with the market share of approximately 3%.

EximBank CEO Traian Halalai said: "The acquisition of Banca Româneasc\ places EximBank in a better position to serve Romanian citizens and to play a more active role in the development of the Romanian economy.

BROM’s market share, great management team, good solvency and liquidity positions fit very well and complement our existing capabilities. I look forward to building on the combined strengths of both institutions during the Traian Halalai upcoming integration process which will create a universal bank capable of better serving our country."

J.P. Morgan Securities plc acted as sole financial advisor to EximBank in relation to this transaction. EximBank was also assisted by Pricewaterhouse Coopers Management Consultants SRL, while Linklaters LLP acted as international legal counsel and Bulboaca & Associates as local legal counsel to EximBank.

Photo by Business Arena

Alphabet, and Apple, are expanding their services in the healthcare market, and this is reflected in the total number of patents filed between 2015-2019, which exceeded 3,500 documents, a doubling compared to 2010-2014. In addition, during the same period, the investments made by those four companies in healthcare services increased 12 times, according to Dealogic data.

According to the PwC report, consumers are also open to solutions offered by tech giants in healthcare, as follows: - Half of US consumers are likely to try an FDA-approved online application or tool (Food and Drug Administration). They would also agree to receive health care from a tech company like Google or Microsoft.

- In Germany, 60% of consumers have a positive perception on the use of new technologies in healthcare.

- In the UK, almost one third of patients would be willing to have major invasive surgery performed by Artificial Intelligence.

Thus, it is increasingly possible for patients to have access to personalized healthcare solutions in integrated ways in daily life, using smartphones, or through AI virtual assistants developed by major technology companies.

In addition to those transformations of the healthcare system, major changes are also expected in global public and private sector budgets: billions of dollars will be spent on healthcare in a different manner, as the focus moves from treatment and care towards development and implementation of solutions for prevention, diagnosis and digital applications.

According to a survey conducted by PwC among more than 120 directors of the largest biopharmaceutical companies in the world, budgets for medical services in all countries are expected to increase by 10% by 2030, and spending per patient is expected to decrease by up to 28%. This is a consequence of the fact that the number of people who have access to healthcare will increase disproportionately to health budgets.

The same biopharmaceutical companies acknowledge that the expansion of large tech companies in the medical sector will be a challenge and they are preparing development strategies in the new digital age.

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AUTO

DELOITTE STUDY FINDS GROWING DEMAND FOR ELECTRIC CARS

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Electric vehicle demand is growing fast in the European Union due to supportive environmental policies, big-brand bets and shifting consumer attitudes, according to the latest Deloitte Automotive Consumer Study conducted in Europe.

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In its press release, Deloitte points out that Italians are the most interested in cars equipped with alternative powertrain technology, 58% (up from 51% last year) of them saying they are considering such a system for the next vehicle they will purchase. On the other hand, the largest increase in interest for electric and/or hybrid cars was registered in UK, from 27% in 2018 to 37% in 2019. ”The Romanian Ministry of Environment has implemented a stimulation program for the acquisition of electric and hybrid cars and every year we saw an increase in the consumers’ preferences for this type of cars.

5,283 hybrid and electric cars were sold on the Romanian market in the first ten months of 2019, up by 50% compared to the same period of 2018, according to data from Automotive Manufacturers and Importers Association.

However, their number remains low in Romania, as they are still expensive for most Romanians,” said Ciprian Gavriliu, Transfer Pricing Partner, Deloitte Romania, and Automotive Industry Leader.

At the same time, consumers’ trust in autonomous vehicles appears to be stalling, after a significant increase in 2018, according to the study. As the technology gets ever closer to scalable, real-world application, consumers are questioning if autonomous vehicles are safe, which is causing some people to take a more cautious approach to the idea. This situation could be explained by a series of negative incidents involving autonomous vehicles, said the study’s authors.

The majority of consumers want their governments to exert a significant amount of con-

CIPRIAN GAVRILIU trol over the development and use of autonomous vehicles. An overwhelming percentage of consumers in most European countries (but not only) indicated they wanted “significant oversight” (from 58% in Austria, to 73% in the Netherlands).

When it comes to vehicle connectivity, consumers’ opinion is split. Italians are embracing the idea (60%) at roughly twice the rate compared to Germans (35%) and Austrians (29%).

Consumer opinions also vary depending on specific concerns around connectivity, including the security of biometric data generated and shared by connected vehicles.

The European Deloitte Automotive Consumer study questioned over 9,300 consumers in seven countries: Austria, Belgium, France, Germany, Italy, the Netherlands and the United Kingdom.

HOW DO YOU CHOOSE A CAR?

PETROL, DIESEL, HYBRID, ELECTRIC OR GAS?

BUYING A CAR TODAY = MORE CHOICE THAN EVER BEFORE ‘Everything was easier back in the day.’ But is that really true? You just didn’t have as many options in the past! When you were on the market for a car not too long ago, your options were petrol or diesel.

Usually, you'd buy a petrol car – unless you had to travel frequently and cover long distances. That’s why ten years ago, eight out of 10 new cars were diesels. The situation has changed dramatically in just a few years’ time. Diesel started being put in a bad light, and the price of it just seemed to get higher.

GREEN EVOLUTION It could be that diesel's poor reputation these days is due to the rapid and wide-spread evolution of the car industry. This evolution has made all kinds of new, greener technologies available to consumers.

Gas motors were the catalyst for that change.

It’s a cheaper alternative, but initially the distribution network was still relatively limited. In the meantime, hybrids, plug-in hybrids and battery-electric cars are on the rise and we’re anticipating a future with hydrogen-fuelled cars.

The result? These days only one in three buyers goes for a diesel.

DRIVING ON NATURAL GAS IS ADVANTAGEOUS Driving on gas is tax-efficient. It is also more environmentally friendly, as it emits less CO2 than a petrol car and less particles and nitrogen dioxide than a diesel engine. Gas is cheaper, but the distribution network is unfortunately more limited than the petrol or diesel network. The purchase price of a gas-powered car is also higher than that of a traditional car.

WHAT IS A HYBRID? In addition to vehicles with internal combustion engines (petrol, diesel, gas) and pure electric cars, there are an increasing number of hybrid cars on the market.

These combine a combustion engine with an electric drive, which means they're cleaner and more cost-efficient.

Car manufacturers and buyers are convinced that hybrid propulsion will significantly reduce

fuel consumption and CO2 emissions. It’s only logical then that hybrid sales and supply have skyrocketed in recent years. It's a trend that’s likely to continue.

There are different types of hybrid cars. A distinction is made between cars that can be charged from an external power source (plugin hybrids) and cars that can’t and don’t have to be externally charged (traditional hybrids).

WHAT ABOUT FULL ELECTRIC? Driving electric cars continues to grow in popularity. Electric cars are the future, or at the very least, are a crucial element in the evolution towards 100% emission-free personal transport.

Right now, only 1% of new cars are electric, but that number is on the rise. When it comes to purchasing electric cars, many people are put off by their range. Over time, however, that range is going to get a lot better with each new generation. Keeping in mind that 90% of Belgians drive less than 60 kilometres a day, it’s clear that an e-car's driving range is more than adequate for most.

IS DIESEL A RELIC OF THE PAST? The question everyone wants an answer to is whether petrol and diesel combustion engines are making a quick exit from the street scene.

Not at all. After all, cars generally have a long life. In Belgium, that life is more than 17 years.

So, it will be quite some time before the entire fleet is electric (or runs on a different, emissionfree technology). Current estimates peg petrol, diesel and gas vehicles as remaining part of normal traffic until 2050.

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5G TECHNOLOGY

BUILDING A SECURE 5G FUTURE Huawei is the wrong way on 5G development. Contrary to popular marketing and public misconception, 5G is not synonymous with Chinese companies. American, European, and South Korean companies are leading the way on 5G development in markets around the world. 5G technology offers opportunity, but in the wrong hands, it threatens national security. As Secretary of State Mike Pompeo has said, competition with China challenges the basic freedoms that every one of us values.

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BY ADRIAN ZUCKERMAN, U.S. AMBASSADOR

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A 5G network is not just a communications network – it represents critical infrastructure for the 21st century economy. Much like a network of roads and highways helps move people and goods and unlock economic potential, future 5G networks will be highways and byways of the digital economy. We must ensure to use companies that continue to develop trustworthy 5G technologies, companies such as Ericsson, Nokia, Samsung, and Qualcomm. These companies are a solution to the threat we face from technology companies tied to the Chinese Communist Party.

Huawei, in contrast to these trustworthy companies, was charged last week by the U.S. Department of Justice with racketeering and conspiracy to steal trade secrets. As part of its decades-long scheme, Huawei paid bonuses to employees who stole confidential information from competitors in the United States.

Unlike Western companies, Chinese technology companies are required to share information and technology with Chinese military

or intelligence authorities. Chinese companies and their customers are never truly free from the oversight of the Chinese Communist Party. We cannot trust these companies to keep our networks secure and uphold our democratic values. In August 2019, the United States and Romania signed a memorandum of understanding that agreed on the threats posed by untrusted vendors. But it is not just the United States raising concerns: on January 29, the European Union called on Member States to exclude high-risk suppliers from critical parts of 5G networks.

There’s no safe place for Chinese companies in 5G networks. The only way to protect the security of 5G is to build it with companies we can trust. Allowing Chinese equipment into any part of a 5G network creates unacceptable risks to national security, critical infrastructure, privacy, and human rights. We look forward to working with our NATO Allies to build a strong, secure, and prosperous digital future that supports and defends our values and way of life.

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5G SECURITY

WHAT IS TRUST? Countries need to be able to trust that 5G equipment and software companies will not threaten their national security, privacy, intellectual property, or human rights. Trust cannot exist where telecom vendors are subject to an authoritarian government, like the People’s Republic of China (PRC), that lacks an independent judiciary or rule of law that would prevent misuse of data.

Trust means 5G equipment and software companies are not subject to control by an authoritarian government and have judicial recourse to successfully challenge government overreach. However, Huawei and ZTE, along with other Chinese companies, are secretly required to cooperate with Chinese intelligence services and security agencies. Trust means 5G equipment and software companies are financed openly and transparently using standard best practices in procurement, investment, and contracting. However, Huawei has benefited from subsidies, tens of billions in state-backed loans, and protected sales to operators within China, while being entangled in global corruption cases.

Trust means 5G equipment and software

BY U.S. MISSION ROMANIA

companies have transparent ownership, partnerships, and corporate governance structures.

However, Huawei refuses to reveal its corporate structure or explain its connections to the Chinese Communist Party.

Trust means 5G equipment and software companies exemplify a commitment to innovation, respect for intellectual property rights, and a history of ethical corporate behavior. However, Huawei has a long and well-documented history of intellectual property theft.

Trust means 5G equipment and software companies adhere to industry best practices on network security to promote a vibrant and robust supply of products and services. However, numerous technical reports document Huawei’s shoddy software and security practices.

Trust means that 5G equipment and software companies do not break the law. However, Huawei is implicated in espionage on behalf of the People’s Republic of China, has stolen intellectual property from Western competitors, and is accused of corrupt practices throughout the world. How can such a company be trusted?

REAL ESTATE

COLLIERS SEES STRONG REAL ESTATE MARKET DESPITE SIGNS OF ECONOMIC SLOWDOWN

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Romania's real estate market is expected to continue displaying robust growth in 2020, but slower than record-setting paces seen in recent years, Colliers International consultants predict. In a press release, the company notes that with its good potential to generate steady, long-term income, capital appreciation and significant diversification benefits, the real estate segment still offers attractive investment opportunities, especially for investors that can cope with lower liquidity.

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Last year, constructions and real estate transactions contributed with almost one percentage point to Romania’s 4% economic growth achieved in the first three quarters of the year. However, slower economic growth expected in Romania this year, although estimated to outperform most European economies, will influence the evolution of the real estate market.

The company also points out that Romania still features one of the best potential growth rates in Europe, although slower compared to previous years. Major structural reforms in areas like workforce mobility or education could unlock significant growth down the road with fairly little effort, though 2020 does not look like the magic year amid elections, Colliers International consultants predict.

As for the impact of external events on the local market, Colliers International consultants indicate that there are plenty of areas to be worried across the board, like Brexit, shifts in US trade policies, geopolitical tensions, longstanding Eurozone issues and Chinese slowdown. Still, the external backdrop is expected to have a neutral to mildly positive impact regarding the growth forecast for Romania in 2020.

Even in this context, 2020 may actually be the best year in the post-crisis cycle for the real estate investment market in Romania. There are already in excess of 0.6 billion euro in deals related to several office projects that could close soon, including the 0.3 billion euro from the

NEPI Rockcastle portfolio, signed, but not closed in 2019, with several buildings on the market that are asking yields below 7%. The industrial and retail submarkets are also doing fairly well, though there are some supply-side limitations here. Going forward, Colliers International consultants talk about the deepening of various submarkets, from pure class A office buildings to those with a value-add angle or reconversions.

Investments in retail spaces reached high levels of maturity and main differentiator today is the quality, both in the industrial segment, where competition is high, as well as in the office buildings, where more and more investors are interested in obtaining “green” certifications.

Also, it is important to note that Bucharest is gradually becoming a tenant market for office buildings, which will probably be more visible in 2020 - vacancy could near 12-13%. Some 0.7 million sqm in new offices are announced for the next couple of years – around a quarter of the current modern office stock. The increased construction costs are somewhat of a novelty, with a direct influence of whether companies relocate or not, since fit-out costs have increased some 25-30%, Colliers International consultants predict.

This year could also bring room for growth for industrial and logistics spaces, given Romania’s extremely low modern industrial and logistics stock of around 4.6 million sqm, half of Czechia’s level and more than four times below Poland’s. Some 0.5 million sqm in new storage

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spaces could come online in 2020, with an increasing share of deliveries coming from developers until recently active on other segments, like offices, residential or retail. This means that five million square meters of modern warehouse spaces should be reached this year.

Services and private consumption are still in fairly good shape, but below 2017-2018. For this year, Colliers International consultants are predicting slower, but healthier consumption growth. Landlords will continue to focus on enhancing the customer experience, with a special focus on the leisure segment.

Developers will look for synergies: new malls will strive to be attached to an established office area or to add their own office/residential components; including shared office spaces in shopping centres looks attractive as well. The fast expansion of retail schemes in small and medium sized cities still holds.

Regarding the residential property prices, 2019 was a record year for the number of new residential units, but this year is unlikely to keep up. There are signs that construction works are slowing a bit at the turn of the year. As long as the economy manages to squeeze a decent

growth rate, Colliers International consultants are expected prices to accelerate a bit compared to the year before, but remain below the expansion rate of wages. Still, some areas, like parts of northern Bucharest may have a bit too much supply.

A gradual cooldown we will see also for the land market. The pipeline in advanced stages is not as generous as in previous years while, at the same time, Colliers International consultants are not seeing as many big deals on the horizon at this current junction. Overall, 2020 is shaping up to be a decent year, but unlikely to rival what we have seen in the 2017-2019 period in terms of transaction volumes.

In addition, the company notes that more and more Romanians living abroad have a high interest in returning home. Romania’s external migration balance could be evened out as soon as 2020, with more and more return migrants, Colliers International consultants predict.

Another positive trend is that Romania’s major regional cities are still in the fast-track convergence lane. And looking beyond 2020, the over three years election free gap in Romania will be a somewhat unique opportunity to promote major structural reforms.

We

at Business Arena Publishing Group keep an eye on the latest trends in the business media and put our readers' wishes first, as we constantly aim to extend our readership potential and gain greater coverage and circulation.

In keeping with our expansion strategy, we are happy to introduce The Book of Excellence 2020. Widely acclaimed for its prestigious annual awards dedicated business, culture, civil society, and sport personalities, Business Arena Magazine has heard its business partners and readers alike, who have been asking for a new platform that could put under the spotlight all the Business Arena award winners, with their success stories, challenges, expectations and hopes.

We have decided to build the new publication around our dynamic award events, and showcase their winners: Most Admired Business Women

Awards, Financial Leaders' Hall of Fame, Business Arena Awards for Excellence. Our readers deserve to know more about these successful people and organizations, so more than 30 business leaders, entrepreneurs, highly-regarded professionals, companies, and banks will be included in our first edition, with interviews, biographical details and company profiles.

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

Overall, this new magazine is designed to include a wide variety of exciting topics and promote business excellence. We plan to publish the magazine annually and jam-pack the pages full of success stories to inspire you.

Our aim is to inspire readers with new ways of thinking; promote greater awareness of issues affecting their business opportunities; and expand our audience to a new generation of business people, entrepreneurs, and professionals. The Book of Excellence will cover the most dynamic business sectors in this country,

including banking, car manufacturing, IT&C, real estate, agribusiness, hospitality, retail, pharmaceuticals and so on. It will have a company profile section, lists of top companies in multiple categories and of course exclusive interviews.

WINEMAKING

VINTRUVIAN - A COLLECTION OF PREMIUM WINES CREATED FOR WINE LOVERS!

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The VINTRUVIAN COLLECTION brings together the most valuable wines of Viticola Sarica Niculiţel and Domeniile Prince Matei.

For the first time, wines from Dobrogea, Sarica Niculiţel, and Dealu Mare, belonging to the same holding, Vintruvian Estates, can be found in the same collection.

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PRINCE MATEI 2013 Merlot DOC-CMD Dealu Mare The iconic Prince Matei, the most famous Romanian Merlot, is a tribute to Matei Basarab, the great ruler of Wallachia. Surpassing Stephen the Great in the number of churches he founded (46 in total), he was also behind the reconstruction of the Episcopate of Buzau, an important pillar in the history of the Zoresti vineyard.

As a patron of orthodoxy and culture, Matei Basarab’s name is linked to the first use of the Romanian language for official, civil and religious purposes as well as the introduction of the first written legislation, “Pravila Mica.” Similarly, the Prince Matei wine represents “the birth certificate of the post-revolution Romanian wine.”

After 24 months of aging in French barrique barrels, the wine is bottled and kept in the cellar for at least another 24 months, so you can enjoy the most famous Merlot in Romania.

The optimum drinking temperature is 16-18 C. Pre-aerated for 45 minutes, the wine can be used with red meat dishes, noble game and complex sauces, with traditional Romanian meat dishes or with matured cheese.

PETIT MATEI - Merlot DOC - CMD Dealu Mare Mateias Basarab (Chamberlain Mateias Nasturel) was the adopted son of Matei Basarab and his wife, Elina Basarab, and he was raised at the Royal Court as the son of the Prince. His adoptive father put all his hopes in young Mateias, but, at only 17, he fell ill and died.

Petit Matei is a worthy descendant of the famous Prince Matei. It is younger, but just as refined, having the same origin: Merlot aged for one year in 225-liter barrique barrels of French origin. Based on a selection of recent vintages, the best of the Zoresti Merlot production, and using the 2016 grape vintage as a dominant ingredient, this wine impresses with its very well integrated alcohol, full taste and remarkable elegance of tannins. The optimum drinking temperature is 18°C. It can be served with beef and small game with refined sauces, strong-flavored cheeses. Aeration: 30 min.

Scentico Chardonnay Light Barrique The New Fashion of Wine SCENTICO CHARDONNAY LIGHT BARRIQUE Chardonnay DOC-CMD Sarica Niculiţel The Chardonnay is the king of white varieties, being recognized for its aromas, and we have created an “icon” for the aromas of this variety. The

name is based on the combination of two English words: SCENT and ICON. The string of Fibonacci, the golden ratio (the spiral is represented on the label) is what was aimed for with the creation of this wine. For the winemaker, the 70% Chardonnay, stored for four months in American barrels (thicker lignin layer that lends the wine a taste of vanilla), and 30 percent fresh wine, represented what we call the perfect ratio for this Chardonnay from Dobrogea.

Silver medal - 2019 Brussels World Competition SERVING RECOMMENDATIONS: The optimum consumption temperature is 8-10°C. It can be served with salmon, oysters, seafood and tapas.

CAII DE LA LETEA - limited edition This wine represents the ultra-premium segment of the company’s portfolio. Carefully selected every step of the way, from the vineyard to the winemaking facility, and further on to the cellar where they are matured, these wines are noted for their expressiveness, unique aroma and strong taste. Each one is a memorable wine, representative of the potential of the historic Sarica Niculițel vineyard. Only available in batches of about 5,000 bottles, these exclusive wines are dedicated to wine connoisseurs, and are only available in specialized stores and in carefully selected HoReCa premises, which know how to present the wine correctly.

ALIGOTE 2018, DOC - CMD Sarica Niculițel Aligote is the standard variety of the vineyard at Niculițel. Originating from the French region of Burgundy, this variety appeared at the end of the 17th century through natural crossing of the Gouais Blanc and Pinot Noir.

Currently, Aligote is planted in the USA (California and Washington), Canada (Niagara), France, Romania, Bulgaria, Moldova, Ukraine and Georgia. In total, there are about 45,000 ha worldwide and, interestingly, all in the northern hemisphere. In Romania, the variety was first introduced in 1912 by a great personality of the day, Bessarabian Constantin Mimi (1868-1935). Trained as an economist and a winemaker, with studies in Montpellier, France, Mimi brought several vine cuttings of different varieties to restore the plantation destroyed by the 1907 wave of grape phylloxera.

Before his return to Bessarabia, he gave some grapevine cuttings, including Aligote, to his friends in Romania.

The work involved in bringing international recognition to the Aligote from Sarica Niculițel was rewarded for the first time in March 2019, when the

Caii de la Letea Aligote climbed to the 1st position on the Vivino website (the most important worldwide wine evaluation website). Later, it was awarded a gold medal at the Concours Mondial de Bruxelles, 2019. For the first time, an Aligote from Romania obtained a gold medal, and it was the only Aligote in the world that obtained a gold medal in Brussels in 2019.

The 2019 IWCB (International Wine Contest Bucharest) awarded the gold medal to Caii de la Letea Aligote limited edition. The optimum drinking temperature is 810°C. It can be served with fish and seafood dishes, young cheeses. It is an excellent aperitif wine, due to its high acidity.

WHITE SAUVIGNON Smoked DOC - CMD Sarica Niculițel After a 90-day maturation in French barrique barrels, this Sauvignon Blanc Fume (slightly barricaded) becomes an extraordinary, intense and fresh Sauvignon Blanc. In 2019, this Sauvignon Blanc Fume, belonging to the Caii de la Letea limited edition, obtained the gold medal at the World Concours de Bruxelles, and the gold medal at the IWCB. The optimum serving temperature is 10-12°C. This is a gourmet wine that can be very well associated with oven-cooked fatty fish (catfish, mackerel, butterfish) with aromatic herbs, desserts with citrus fruits, cheese platter and fruit.

ROSE - Feteasca Neagra & Pinot Noir & Syrah (vinified together, approximately equal proportions), DOC- CMD Sarica Niculițel.

The Rose is the most awarded wine in our portfolio and probably in Romania: it received the gold medal in Brussels, bronze at IWC - London and silver at IWCB in 2017. In 2018, it obtained 90 Decanter points in London, the silver medal in Brussels, and, in May 2018, it received the title of the best rose wine in Romania, at the national rose wine competition. In 2019, it received a silver medal in Brussels and a gold medal at the IWCB. The optimum serving temperature is 10°C. It can be served with red fish, duck dishes, mixed grilled vegetables, cheese platters.

EPIPHANIA, Feteasca Neagra 2017, DOC-CT Sarica Niculițel Harvested in late 2017, after 12 months of maturation in first-use barrique of French origin and more than 12 months of aging in glass bottles, the Feteasca Neagra has become what we consider to be the revelation that

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unveils the charm of the oldest Romanian variety, the Epiphanié.

A demon with an angel’s soul and a body born out of moist earth from the roots of the tree with black fruits.

Often wrapped in long velvet clothing, he walks down through the leaves, causing the forest to play its organ made of warm wood.

Gold medal at IWCB 2019.

The optimum serving temperature is 17-18°C. After an aeration of about 45 minutes, it can be served with large game dishes, cheeses matured with noble mold, dark chocolate desserts with berries.

PERGAMENT - Petit Verdot DOC-CMD Sarica Niculițel Petit Verdot is a red, full-bodied wine that originates in the south-west of France (Bordeaux). It is generally used in blends for its distinct character, with high acidity, firm tannins and aromas oriented more towards spices rather than fruit. Because Petit Verdot is such a “bold” wine, it is often added in less than 10% of most wine blends. It is a rare variety, being cultivated on around 7,240 ha worldwide (the main producing countries are Spain, Australia, France, USA, Italy South Africa, Chile, Argentina).

Pergament is a 100% Petit Verdot wine, matured for one year in first-use French barrique, and it can be considered a rarity, intended especially for connoisseurs.

The optimum serving temperature is 16-18°C. After an aeration of at least 30 minutes, the wine can be served with spicy cold cuts from Dobrogea (Tartar dried sausages, Armenian pastrami), lamb chops with green pepper, and with matured cheeses.

B

USINESS ARENA

m a g a z i n e

MOST ADMIRED BUSINESS

AW ARDS Gala2020

Enjoy the Quality

* * * * *

WOMEN

Admire the Value

in partnership with

Commenting on the findings of the latest Gender Equality Index, Virginija Langbakk, Director of European Institute for Gender Equality (EIGE), said: "We are moving forward at a snail’s pace. We are still a long way off from reaching a gender-equal society and all countries in the European Union have room to improve. In some areas, the gaps are even bigger than ten years ago. Our Gender Equality Index clearly shows whether government policies are matching the specific needs of women and men and whether they are working or not." The updated Gender Equality Index shows that the EU’s score is just four points higher than ten years ago, now 66.2 out of 100. The top performing country is Sweden with a score of 82.6, while Greece moved to the bottom with 50 points. The award for the most improved country goes to Italy, which made a big leap and gained 12.9 points to place itself at rank 14 on the ladder.

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

They have achieved a high level of recognition.

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

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

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

The Most Admired Business Women Awards Gala 2020 will bring together entrepreneurs, investors, business leaders, diplomats, and professionals from a wide range of sectors to celebrate the successes of women in business.

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

FINANCE

WHY DOES WARREN BUFFETT ALWAYS PAY IN CASH? The answer is both simple and important for your company's future.

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If Warren Buffett ever walks into your store or restaurant, he's likely to pay for his purchases in cash. “I've got an American Express card which I got in 1964,” Buffett, who’s worth more than $88 billion, told Yahoo Finance last year.

“But I pay cash 98 percent of the time. If I'm in a restaurant, I always pay cash.”

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That's right. Warren Buffett — one of the richest guys in the world — prefers to pay in cash. In fact, he says that he pretty much always carries around about $400 with him. Is it because he's afraid of credit cards? Does he have security concerns? Is he avoiding those annoying late fees and penalties in case he doesn't pay off his balance?

Actually, it's none of those reasons. The explanation is that, for Buffett, paying with cash is "just easier."

Buffett, however, is part of the minority. Each year, fewer and fewer people pay cash when making purchases. In fact, according to a 2017 U.S. Bank survey of more than 2,000 Americans, 50 percent only carry cash about half of the time. Among people who do carry cash, nearly half of them say it's less than $20 and 76 percent say it's less than $50. I'm betting the number of Americans who don't carry cash has likely increased since then.

So there's a growing number of people who don't like to use cash, yet there are still plenty of people like Buffett who prefer to —or have no other choice because they can't get credit.

Clearly, we’re in a time of transition. Twenty years ago, cash was king. Today it's less so, and 20 years from now it may be gone altogether.

But if you're running a small business in 2020 none of this should matter. Why? Because you want to make a sale. And the

last thing you want to do is to turn a customer away because they're not paying the way you want them to. I frequently run into small businesses around the country that do this. They tell me — the customer — that they only accept cash. Or they have a "minimum credit card purchase" policy. I've also visited other businesses that — despite legislation in towns like Philadelphia, San Francisco and recently New York — only accept credit cards. These people would literally turn Warren Buffett away.

This is not only dumb but also insulting to the customer. Today's consumers all have preferences as to how they want to pay for their purchases. Some, like Buffett, prefer to use cash. Others like credit cards. Mobile payments like Apple Pay (which is on pace to account for 10 percent of all global card transactions by 2025) are obviously becoming more popular. Maybe bitcoin will finally be less volatile in a few years. Maybe we'll be accepting the Yuan as currency in a decade or so.

Who knows?

It doesn't matter, though. If you're a small merchant or restaurateur you've got to give your customers the choice. You've got to offer all those options, and you need to figure out how to make it work financially. Sure, there are fees and costs for offering credit cards or mobile payments, but there are easy accounting tricks — like these — to help offset those expenses. Your job is to figure it out. Why? Because it’s the customers’ choice. Not yours. You wouldn't want to turn Warren Buffett away just because he prefers to use cash, just like you wouldn’t want to turn any customer away just because of the payment method they want to use.

Well, at least not until you’ve got $88 billion in the bank.

INTELLIGENCE

RUSSIAN INTELLIGENCE AGENTS REPORTEDLY WENT TO IRELAND TO INSPECT UNDERSEA CABLES, AND IT'S REIGNITING FEARS THEY COULD CUT THEM AND TAKE ENTIRE COUNTRIES OFFLINE

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Russian intelligence agents have been sent to Ireland to make the precise locations of undersea cables connecting Europe to North America, and it's raising fears that they plan to tap or even cut them, The Sunday Times reported.

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Irish security services believe that the agents were sent by Russia's foreign intelligence agency, the GRU, and are checking the fiber-optic cables for weak points, The Times also reported, citing police and military sources.

They were also seen monitoring Dublin Port, which prompted the country to ramp up security at a number of landing sites along the Irish coast, The Times reported. It's unclear where else the agents have been seen.

The vast network of transatlantic cables that run under the world's oceans power the internet, texts, calls, and global financial transactions. About 97% of all intercontinental data is transferred through these cables, according to the Asia-Pacific Economic Cooperation forum.

Ireland is an ideal location for these undersea maps, given its proximity to North America and Europe. In 2015, Irish telecommunications company Aqua Comms set up a $300 million cable to connect the US to Dublin, and on to London and European continent, the Irish Examiner reported.

Irish police and military sources suspect the GRU is using Ireland as an operations base to gather intelligence on targets in the EU and the UK, The Times said.

Another reason for the Russians' presence could be Dublin's place as one of Europe's largest tech

hubs, as authorities suspect the agents could also be spying on large tech companies, according to The Times. Google, Airbnb, Facebook, and Twitter all have headquarters in the city.

The country also presents itself as an ideal target to the Russians, Mark Galeotti, an expert on transnational crime and Russian security at the Royal United Service Institute think tank, told The Times.

"Ireland doesn't have a counter-intelligence capability. It's a relatively soft target. Ireland is a major node for the global internet. It has a large concentration of tech companies," he said. "This is the new battle space of the future."

News of the Russian agents' arrival in Ireland has prompted concerns that Russia might ramp up its information warfare by cutting or tampering with the cables, which could disrupt global financial transactions or even take entire countries offline.

John Sipher, a retired CIA officer, in Moscow, told The Times that there is a high chance the agents are either spying or planning to cut communications.

"They also may wish to show their capability in

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"There is a new risk to our way of life, which is the vulnerability of the cables that criss-cross the seabeds."

"Can you imagine a scenario where those cables are cut or disrupted, which would immediately and potentially catastrophically affect both our economy and other ways of living?"

order to threaten the West," he told the British newspaper. "Our FBI has caught Russians trying to gain access to underwater cables, including the areas where they come into land."

"They are also seeking to gain physical access to routers and communication nodes," Sipher added.

Western countries have long feared that Russia could cut undersea cables and interfere with the global economy and way of life.

Air Chief Marshal Sir Stuart Peach, the UK's most senior military officer, said in December 2017:

WHAT ARE UNDERSEA INTERNET CABLES? More than 300 undersea cables, which run a total of 550,000 miles, keep the internet running around the world.

Most lines are owned by private telecommunications companies, including tech companies like Google and Microsoft. Their locations, which have been built up over the decades, can be easily identified on public maps.

Despite their importance, little is being done to guard and protect these deep-sea cables.

Cybersecurity experts told Business Insider's Jim Edwards in 2018 that it's only "a matter of time" before hackers can access these cables and entire countries can be taken offline.

MARK GALEOTTI

LUXURY & LIFESTYLE - TOP BRAND

LOUIS MOINET UNVEILS THE «ONLY MEXICO» UNIQUE PIECE

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ONLY MEXICO’ IS A UNIQUE PIECE THAT PAYS TRIBUTE TO ROOTS OF MEXICAN CULTURE. ATELIERS LOUIS MOINET PAINSTAKINGLY GATHERED INFORMATION AND SOUGHT OUT THE MOST TYPICAL MATERIALS OF THE COUNTRY – AND THEN BLENDED THEM TOGETHER IN THIS SPECTACULAR, ORIGINAL CREATION. ONE KEY HIGHLIGHT IS THE PRESENCE OF THE OLDEST-KNOWN MATERIAL IN THE WORLD, ALLENDE METEORITE, FOUND IN THE STATE OF CHIHUAHUA.

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Only Mexico’ is fitted with Louis Moinet’s mechanical tourbillon. This won the gold medal at the most recent International Chronometry Competition – and beats at a rhythm of 21’600 vibrations per hour.

Louis Moinet’s legendary NEO case, cut from polished, satin-effect 5N rose gold, accentuates the imposing character of the piece. It owes its distinctive silhouette to the application of a large number of brand-new technologies.

Each component of the design reflects Mexico’s very special culture and history: Dial: the Sun Stone, a legendary Aztec artefact At the centre, the dial depicts the Sun Stone, one of the best-known and most iconic works in Aztec art. It was sculpted during the reign of the Aztec Emperor Axayacatl (1469-1481) to commemorate the New Fire ceremony in 1479. The enormous disc, 3.6 metres in diameter and weighing 24 tonnes, was cut from a single block of olivine basalt lava. Today, the Sun Stone is on display at the National Museum of Anthropology in Mexico city.

The Sun Stone comprises eight concentric circles, each with a whole host of references to Aztec cosmogony, describing how the World was formed. The second circle is especially noteworthy,

displaying the symbols of the deities Ehecatl, Tezcatlipoca, Tlaloc, and Chalchiuhtlicue, and evoking the legend of the suns, a cosmogonic myth based on the creation and destruction of several successive worlds.

Dial edge: the Allende meteorite – the origin of time Beneath the engraving of the Sun Stone lies is a dark-coloured meteorite – Allende.

The Allende meteorite is the oldest known material in existence, estimated to be 4.567 billion years old – making it 30 million years older than the Earth itself. When it fell at Allende in the State of Chihuahua on February 8, 1969, it weighed almost two tonnes, also making it the largest chondrite meteorite ever to have been found. It is considered to be the most-studied meteorite in history, yielding so much information about the formation of the solar system that cosmochemists view it as their ‘Rosetta Stone’.

Dial centre: the Toluca meteorite Located beneath the second concentric circles of the Sun Stone, the Toluca iron meteorite has been given a blue treatment, making it truly resplendent.

The Conquistadors revealed its presence to the wider world in 1776, but it probably fell to earth

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over 10,000 years earlier – and for several centuries, it was used by the local populations to make a wide variety of tools.

Case: Pre-Columbian geometric friezes The engravings draw inspiration from the typical architecture of the geometric friezes found on buildings in the Pre-Columbian city of Mitla, occupied by the Zapotecs. Some believe these bas- relief friezes form a mosaic symbolising the image of the Feathered

Serpent.

Case lugs: the Maya deity Chaahk These depict the Maya deity Chaahk, as observed on the monument at Kabah known as Codz Poop, the Palace of the Masks, in YucatĂĄn. Chaahk is the rain god and protector of the harvests, striking the clouds with his thunder axe to produce rain and thunder.

Augustin watches: Time becomes art Augustin Matei deserves to be famous, as he is an endangered species: an artisan.

The idea is simple: you come with your wish or desire and he turns it into a watch.

The limit can only be the availability of components, because for his imagination – the sky is the limit.

And one more thing - it's affordable...

SUPERNOVA An atypical timepiece, with "hidden" elements and mathematical formulas, including chaos and relativity theory.

Handmade dial with mixed micropicture and engraving techniques. 43.5 mm diameter housing and an automatic mechanism 2828/2 Swiss-made caliber. Handmade stingray leather strap. The dial also contains a piece of a genuine Martian meteorite.

ZEUS Handmade silver dial representing Zeus.

Swiss made automatic mechanism and a 43.5 mm diameter case with sapphire glass..

KING MICHAEL This 40mm diameter women's watch bears the royal coat of arms, which was handmade in silver. It also includes a beautiful micro painting of the portrait of His Late Majesty King Michael of Romania.

VAN GOGH Van Gogh, a very beautiful women's watch, which reproduces a famous painting by van Gogh (Starry Night).

It has a rose gold housing, with a 38mm diameter sapphire glass. The dial was painted with extra fine oil paints, used by the restorers of famous paintings.

BIKERS FOR HUMANITY Watch dedicated to a humanitarian campaign, organized and supported by a large group of motorcyclists.

A Chronograph watch with a super Swiss made mechanism (ETA Valjoux 7750 caliber), handmade silver dial. 42 mm diameter case with sapphire glass.

CHINESE DRAGON Inspired by one of the Chinese Horoscope symbols, The Dragon.

Created for strong and ambitious characters who are ready to show their strength to the world. The dial is made by using a microsculpture and hand engraving technique, it has also diamond stone fitted as an eye. / 42mm diameter / Case: stainless steel, sapphire glass, hand-engraved dragon Movement: Swiss automatic, ETA 2824-2 calibre S

LVMH WATCH WEEK DUBAI 2020:

BULGARI LAUNCHES THE SMALLEST WOMEN’S TOURBILLON

BULGARI KICKS OFF LVMH WATCH WEEK DUBAI WITH THE SMALLEST WOMEN’S TOURBILLON WATCH, THE SERPENTI SEDUTTORI TOURBILLON. If 2020 is the year watch brands really ramp up their efforts in the ladies’ watch category, then we’re off to a banging good start with Bulgari taking the lead. The highlight of the show is undisputedly the new Serpenti Seduttori Tourbillon, a unique small-sized women’s tourbillon that was designed specially to fit within the sleek dimensions of the serpent-head case of the Serpenti watch.

In this time and age, we can hardly say that jewelry watches cannot also contain a serious bit of watchmaking anymore.

Quite the reverse, Bulgari is simply reviving a tradition that was lost in the ’70s when all the small mechanical movements in ladies’ watches were replaced by quartz movements.

The ultimate breakthrough, however, is this: the new movement in the Serpent Seduttori Tourbillon, the BVL150 Calibre, is the smallest tourbillon on the market, made possible by combining Bulgari’s expertise in jewelrymaking and its savoir-faire in watchmaking.

Viewable from the transparent sapphire case back, the movement is rhodium-plated and hand-decorated with Côtes de Genève, perlage and bevelling. The movement also features a sapphire bridge.

The new Serpenti Seduttori Tourbillon comes in rose gold or white gold with diamond pavé and a leather strap or white gold with diamond pave and a full diamond bracelet. First presented last year, the Serpenti Seduttori was given a new look that is less literal in its inspiration and more contemporary. The sinuous form of the snake is evoked through a new bracelet design, hexagonal chainlinks that interlock to evoke the smooth and supple scales of the serpent.

Apart from the tourbillon version, five new additions join the Serpenti Seduttori family this year, including a precious version as well as one with alternating rose and white gold and steel.

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SPRING TRENDS IN YOUR BUSINESS WARDROBE Things come and go in every field, they are transformed, reinvented, they get better or worse. And the fashion industry is the first to get caught on the radar. Every season, the trends "make noise" through new matching colors and daring patterns, intriguing cuts and fitting choices. But, for your business look, you might think that the rules are pretty clear and stiff since ever. Still, this year's trends offer more room to experiment and break those rules. Loosen suits at Dior, pastel painted Oxford shirts at Ralph Lauren, oversized blazers and laid-back pinstripes are all parts of the business casual attire scenario for this spring. Just feel free and experiment or bet on the classics, because they still work. The key is to refresh your business look by mixing old essentials with new trends pieces and accents.

O UTFIT: TRENDS BY A DINA B UZATU P HOTOS BY VALI B ARBULESCU M ODEL : I ULIAN D AMASCHIN

A DIFFERENT KIND OF TAILORING As I've mentioned before, the suit is back but not as you know it.

Luxury brands such as Louis Vuitton and Dior have taken on a new approach to tailoring. Now, the form-fitted suits are replaced by oversized cuts, the classics navy and grey make room for pastels and creams and you can barely see a tie to complete the look. You can even see hybrid blazers on the scene.

Dior, for example, has created a sort of wraparound one-button singlebreasted blazer, a very interesting design in a man's wardrobe.

OVERSIZED BLAZERS This time around, the essential suit jacket took up a few sizes, a throwback to the 80's style. Either you choose a pinstripe suit, or a monochromatic outfit - two major trends for this spring - the oversized cut will add that retro touch and make the formal stiffness fade.

HIGH WAISTED TROUSERS Traveling back in time can be both classy and fun. An overlook into the 40's fashion brings up the high waisted trousers. Now it's the perfect time to take advantage of their flattering style and versatility.

In navy, black, cream and even white, this bottom half can be worn all year long in stylish, yet relaxed outfits. Pair your high waisted pants with blazer in an office look, or mix them with a t-shirt and unbuttoned shirt in a smart casual outfit.

SILK VESTS The vest, on its own or as part of a three piece suit, is an important element of a business ensemble.

Wear it in a monochromatic outfit or get a fresh twist with a printed silk model.

RELAXED SUITING For a few years now you are used to slim fit suits for a clean look. You

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can still wear them. But, this year, you can go for a more relaxed cut, as well. For example, wearing a formal suit in a casual setting, with sneakers and t-shirt or turtleneck, might help you gain some points for style and comfort. For an even more relaxed feel, wear your blazer over your shoulders instead of buttoned up.

DOUBLE BREASTED JACKETS This evergreen piece in men's wardrobe remains a stylish option for business and formal meetings. Either in the classic fitted cut, or in a relaxed version with a contemporary twist, make your choice according to the occasion. The laid-back cuts are proper for smart casual events.

MONOCHROMATIC SUITS The tonal layering is not rocket science and this year, brands like Brunello Cucinelli and Burberry encourage us to go for monochromatic suits. The all black ensemble is a classic one, but this season shades involves pastels like blue, yellow, mint, white and some strong tones of copper, bronze, burgundy and brown. Mixing shades of the same colours doesn't require much planning and you can get a modern look without wasting precious time. You can start with grey or beige, which are easier to find and mix in different tones.

STRIPES ALL THE WAY If there is a pattern you can wear all

year long, the stripes are the best choice. Featuring the formal look with the laidback cut, the striped suits are involved in all kinds of occasions and events. From the classic pinstripe black or navy suit to other ensembles with stripes in different sizes and colors, you can find the one that suits you best.

OVERSIZED OXFORD SHIRTS The Oxford shirt is a must have item, no matter the season. This spring, the update comes in cut and colors. Oversized shirts are new in business and they look good paired only with the bottom part of a suit. But this is not the only upgrade they get. Oxford shirts are painted in pastel colors to match to the spring vibe. Take advantage to the fresh look they provide, in different combos!

Find a wide selection of classic items and pieces of new trends in Trends by Adina Buzatu store and online on adinabuzatu.ro.

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

HAUTE COUTURE SPRING 2020

TURBO-DRIVEN SEDUCTION AT ARMANI If you needed a collection of clothing that would justify Armani’s continued existence on Planet Fashion, this was it

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MILAN, Italy — Screens played snowstorms. The runway revolved around an ocean of icy perspex. Was Giorgio Armani playing an environmental endgame, or was he simply creating an appropriate context for NEVE, the capsule collection of high-performance winterwear that opened his show on Monday? As much as some of the guys looked like they were kitted out for snowboarding, there were others who were totally prepped for The Day After Tomorrow.

If you were so inclined, you might have been wondering where Armani’s usual menswear would fit into the doomsday scenario he was hinting at.

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Maybe he was wondering the same thing. If you needed a collection of clothing that would justify Armani’s continued existence on Planet Fashion, this was it. It wasn’t simply that the focus was tight (more so than usual), or that Armani efficiently ticked off his trademarks. When he called his show Tactile Impressions, he was reminding us that his fabrics have always begged a stroke. But this time, the seduction was turbo-driven. The spine of

the collection was its coats. Most of them had what could pass for a portrait neckline in a collection of womenswear. It had the same effect in menswear: highlighting the beauty of the wearer. Movie star glamour was baby Giorgio’s fantasy fuel. He’s felt that fascination ever since. When he successfully connects with it, he makes beautiful clothes.

And that’s what happened here. I’d pick the sinuous, soft-collared coats, or the big,

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shawl-collared, djellaba-striped versions; the khaki green velvets; the Nehru jackets paired with baggy-ish ankle-buttoned trousers (not remotely Ali Baba, however much it sounds that way). All of them glossed with the soft, unstructured ambiguity that fuelled Armani’s original sartorial revolution. But there was also a tougher little something, like the long suede gilet worn under an overcoat, or the navy military-influenced looks.

It was never all going to work in a presentation this size. Karl Lagerfeld had the same issue at Chanel. The handful of velvet-slippered eveningwear that closed the show looked kind of pinched and fussy after everything that had come before.

But, really, for Armani to be coming up with such a collection in the second half of his ninth decade was a solid reason to salute fashion as at least some of us know it and still love it.

HAUTE COUTURE SPRING 2020

ARMANI'S STARRY WORLD The designer has an irritating propensity for rendering his models uniform

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King of the red carpet! Or, at the very least, the man who launched the whole notion of a designer and a celebrity making an umbilical connection to mutually exalt their glory. And just think that it all began with Wanda McDaniels running home to grab a pair of her own earrings so Michelle Pfeiffer could accessorise her Armani gown in 1989.

Such prelapsarian times!

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The curse of that halo-ed origin story is that it is difficult to divorce an Armani Privé collection from its genesis in the demands of awardshow dressiness in Hollywood. There are times when Armani feels entirely true to his sensible soul, able to reconcile his own innate inclination towards monochrome restraint with the showiness of show business. And then, inevitably, there are other times when he surrenders to the fabulosity of the starry world that has embraced him. And why shouldn’t he?

Movies saved him when he was growing up.

And here was Renée Zellweger in his front row, scouting a frock for the Academy Awards.

But the show notes for Armani’s new collection spoke encouragingly of ikat, the dyeing technique most prevalent across India, Japan and Indonesia. It produces a rich, blurry effect that speaks of the efforts of the human hand and the glory of imperfection, and that sounded like a promising launchpad for his show. Sadly, it wasn’t to be. Armani has an irritating propensity for rendering his models uniform. Maybe this is a gambit to thrust the spotlight on the clothes, but please don’t do it with a bobbed black wig and a lacquered skullcap. Who was that woman we were watching? Amelie? 21st-century French gamine?

The kicky little jackets and trim track pants that ruled the opening of the show certainly suggested something like that: narrow silhouette, ¾ sleeves, kitten heels. The gamine was elevated with beading and fringing, and the luxury was defined by a bead-trimmed black croc jacket with an ikat skirt. But that outfit was a stark reminder that ikat is a labour-intensive endeavour which has an almost sacred connotation.

It was long ago established that it is navy blue, not greige, that is Armani’s comfort zone.

Here, he was seduced by sapphire. Seduced as in a strapless silk gown that coiled around the body like a snake. There were many other variants of sapphire gowns in the collection, but it was a teasing notion that he had to restore his faith with one single white outfit. Pure as the driven slush, it closed the show.

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FASHION | COLLECTIONS

DIOR, CHANEL, VALENTINO, RALPH & RUSSO, GIVENCHY:

FAVOURITE SHOWS FROM PARIS HAUTE COUTURE WEEK SPRING/SUMMER 2020

What is Paris Haute Couture Week but an indulgent fashion fantasy? This is where the global fashion cognoscenti, from Tokyo to Toronto, conglomerate in the magical City of Lights to witness the avant-garde, the awe-inspiring, and the acutely meticulous handmade creations from the minds of today's top creative directors.

Here, we bring you our favourite five collections — reported via succinct 10-word show reviews, favourite looks, and most memorable moments — to help you unpack the must-know highlights of the season. Brace yourself.

After viewing these couture gowns, ready-to-wear is never going to look the same again.

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Dior: Golden Goddess 10-word show review: Grecian goddesses rule Designer: Maria the world in regal golden peplos gowns.

Grazia Chiuri 'What if women ruled the world?' read a large

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silk tapestry that formed the backdrop of the Dior couture spring/summer 2020 show. Hung throughout the bespoke venue set up in the garden of Musée Rodin, a circular white tent in the shape of the female form when viewed from above, were other artworks from The Female Divine — an installation designed by American artist Judy Chicago specifically for Musée Rodin — that raised further questions sparked by the central tapestry: Maria Grazia Chiuri has championed women's rights and equality ever since she took over the reigns at Dior in 2016, famously showing a T-

shirt tucked into a tulle skirt bearing the title from Chimamanda Ngozi Adichie's essay 'We Should All Be Feminists' during her spring/summer 2016 ready-to-wear collection.

Not only did it raise eyebrows for its hefty USD710 price tag, it also rung up the Dior tills from the flagship store in Rue Montaigne to Orchard Road with the tee selling out fast.

For the Dior spring/summer 2020 haute couture collection, Grazia Chiuri continued that conversation about feminism and femininity, but this time, left the talking to the clothes.

With her muse Ruth Bell again kicking off proceedings, what ensued was a procession of sublime golden looks reminiscent of Grecian goddesses. The ancient peplos dress was recast

Favourite look:

Favourite accessory and reimagined in various permutations: elevated with pleated flowing tulle; accented with braided rope crisscrossed over the chest; and given a regal, sinuous line with the addition of billowing capes. But it wasn't all just full-length gowns.

Maria also sent out pant suits with open-neck blazers in traditionally masculine houndstooth and herringbone fabrications, as if saying, "Why does couture for women always have to be a frock?

Women can wear the pants too." Chicago, we are

sure, would definitely concur.

Favourite look: That embroidered dress in look 39 crafted from tubular grey lamé with an interlacing pattern on the chest that formed a lion's head motif, complete with tiers of box pleats in silver crêpe formed from laminette ultra-fine metallic thread for an extra oomph of heavenly royalty. Divine and in control.

Favourite accessory: As if raiding the wardrobe of goddess Athena, the accessories ranged from rope belts to bee earrings, all cast in a glorious shade of gold. But our favourite was that bold necklace in look 7 that was formed from a constellation of golden leaves and the collection's key motif, golden ears of wheat.

RALPH & RUSSO: PASTEL POWER Founders: Tamara Ralph and Michael Russo 10-word show review: Ten Ralph & Russo couture icons reimagined in kaleidoscopic hues.

Did you know that although Ralph & Russo is a British couture label, its founders are both Australian?

Tamara Ralph fortuitously met Michael Russo when she was travelling in London, leading to the pair eventually setting up their fashion house.

They are a couple in business as well as in real life, with Russo acting as the creative director while Ralph oversees the business as the chief executive. The brand grew organically through the

London society crowd before catching the eye of celebrities and royals alike. Famously, Angeline Jolie wore a skirt-suit designed by Ralph & Russo when she met the Queen. On the topic of royalty, Meghan Markle wore a Ralph & Russo dress for her engagement shots with Prince Harry.

All this is to say, when the show started with a message from Tamara and Michael dedicating the collection to the Australian bushfire crisis — with a page in the show notes encouraging show attendees to join them in giving to the Australian Red Cross Disaster Relief & Recovery Fund — it all made perfect sense. A couture show in Paris is

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PHILIPP PLEIN

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SPRING/SUMMER 2020 FA S H I O N S H O W Road warriors in a post-apocalyptic wasteland. Mutant monster trucks and flaming biker gangs. A giant thunderdome where there are no rules... Welcome to the brave new world of Philipp Plein Spring/Summer 2020.On the 20th anniversary of the company, Philipp Plein returns to Milan with a megashow featuring almost 100 looks on more than 80 models, showcasing the dynamic DNA of the brand. To a thunderous rock soundtrack, the Plein punk rebels hit the runway for a wild ride into rock’n’roll overload. They’re a freewheeling tribe on a mission, louder and freer than ever. Their weapon of choice? Guitars at full blast. Their wardrobe a high-volume, unapologetic roar of Mad Max attitude.The Plein men come prepared in studded python biker jackets, hoodies pulled over their heads and high-vis sneakers. An

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WOMEN'S AND MEN'S arsenal of Plein logos and symbols, and dragster flame artwork energise the denim.

Elsewhere, tailoring comes in sequined stars and metallic animal patterns; trousers decorated in a vampire mouth print. Silverhardware, spikes and chains give armour-like protection.The women are fully-charged in lightning bolt metallic dresses with exaggerated shoulders, biker jackets worn with floor-length flowing gowns, rock t-shirts and mini-skirt suits. With studded corsets, multi-layers of heavy jewellery, thigh-high buckled boots and chainmail mesh, they are glam metal queens.An exclusive collaboration with the legendary gods of shock rock KISS adds a final power chord. The band’s official logo appears throughout on patches, t-shirts, suits and dresses. As their foot-stomping song goes: get ready to rock and roll all nite.

AUTO

THE ALFA ROMEO MONTREAL GT IS ONE MEAN SUPERCAR A modern tribute to a classic from the 1970s

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Now a rather small automaker with no so many models on offer, Alfa Romeo was once one of the world’s most important nameplates and the creator of several iconic cars. The Alfa Romeo Montreal is one of them and Italian designer Luca Serafini just created a modern version of the two-door sports car. Affectionately named the Montreal Vision GT, like the official Vision Gran Turismo concepts various automakers have created since 2013, this virtual car is a cool design that Alfa Romeo should consider, at least for a concept vehicle.

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Serafini’s rendering is a cool mix of classic and modern features. While it looks sleek and decidedly modern, the Vision GT retains many of the Montreal’s iconic design cues. The designer replicated the grilles that hide the upper section of the Montreal’s headlamps, the fog lamps mounted under the steel bumper, and the Vshaped intake on the front hood. Onto the sides, we can see more features reminiscent of the original Montreal. There are no quarter windows, there are horizontal strakes behind the doors, while the wheels feature a similar multi-spoke design. The rear hood is shaped in a similar way, while the taillights retain the original placement, despite having a different design. The rear diffuser was also designed to mimic the shape of the Montreal’s bumper. Overall, it’s a cool and recognizable tribute to the original car.

But the Montreal Vision GT also stands out as a modern concept. The classic features up front are combined with a pointy nose that reminds me

of Formula One cars, a muscular engine hood with a raised center section, and a race-spec lower bumper with a big carbon-fiber splitter. The profile is equally muscular thanks to heavily sculpted doors and front fenders, as well as carbon-fiber side skirts.

The rear hood was created with aerodynamics in mind, as the center section was lowered so that the air is guided toward the rear fascia and the diffuser. The taillights are thin LED bars that stretch to the Alfa Romeo badge in the center, while the diffuser looks just as mean as that of a race car. The Montreal Vision GT features four exhaust pipes, but they’re distributed in an unusual setup. There’s one at each corner of the diffuser and two more grouped together at the center. This virtual supercar is nothing more than a rendering made by an Italian designer. It wasn’t created by Alfa Romeo and as cool as it may look, it probably won’t become a Vision Gran Turismo concept. Sadly, Alfa Romeo doesn’t have

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plans to revive the Montreal. The Italian firm will probably reinstate the GTV name for a two-door coupe based on the Giulia, in which case the Montreal won’t make sense in the lineup. Although the Montreal and the GTV were sold in parallel in the early 1970s, the modern market wouldn’t allow a similar strategy with two similar coupes on the market.

Introduced in 1970, the Montreal was based on a concept car that Alfa Romeo showcased in 1967. Revealed in Montreal, Quebec without a name, it became known as the Montreal among enthusiasts. Alfa Romeo happily adopted the name for the production model. The 2+2 coupe debuted in production form at the 1970 Geneva Motor Show. While the coupe featured a 1.6-liter four-cylinder, Alfa

Romeo went with a V-8 in production model. The 2.8-liter engine generated 200 horsepower and 173 pound-feet of torque through a five-speed manual transmission and a limited-slip differential.

The Montreal was quite a sporty car, as its engine was derived from the V-8 used in the 33 Stradale and Tipo 33, while the running gear came from the Giulia GTV. The coupe needed 7.4 seconds to hit 62 mph and had a top speed of around 137 mph. The Montreal was discontinued in 1977 after seven years on the market, but production ended earlier due to low demand. Because it was more expensive than the Jaguar E-Type or the Porsche 911, the Montreal wasn’t very popular and Alfa Romeo struggled to sell remaining stock. Only around 3,900 examples were built.

MASERATI MILLEMIGLIA CONCEPT IS A RETRO-INSPIRED HALO CAR This would be an exceptional halo car for the brand

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Maserati’s roadmap to the future includes new models and electrification throughout its lineup.

Strangely, it omits a much-needed – essential – single-seat speedster. We know Maserati will launch an all-new sports car next year, which will feature an electrified variant and usher in a new electrified ear for the brand. It will replace the GranTurismo for a year, though Maserati should go bigger.

Competition is fierce as more and more automakers vie for the eyes – and dollars – of EV enthusiasts, and what better way to make a statement than a radically designed halo car like the rendering above?

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It’s called the Maserati MilleMiglia and comes from artist Luca Serafini, who used the open-wheeled Maserati 250F and 6CM as inspiration for his creation. The MilleMiglia rendering lacks the open-wheeled design of yesteryear’s race cars – safety regulations be damned – however, the wheels are pushed to the four corners of the low-slung speedster.

The MilleMiglia rendering features a curvaceous body with swooping lines cascading across the car’s sheet metal. Finished in Italian Avio, the halo car pairs classic Maserati styling with modern design cues. The LED daytime running lights are stunning, as are the rear taillights and unique third brake light that runs vertically up the rear. Small details like the side mirror stalks look great as do the doors that

have a hinge at the rear and open upward.

Inside, the Maserati MilleMiglia is just as detailed with sand beige throughout. There’s exposed carbon fiber, including the pentagonshaped steering wheel, and other high-end materials inside the driver-focused interior. The driver sits in the middle of the car in a carbonfiber tub, which has what appear to be small infotainment screens embedded in them. A five-point racing harness provides safety.

Maserati has big plans for the next few years with refreshed and new models bolstering the lineup. Would it be nice to see an electrified Maserati halo car? There’s no doubt it would garner plenty of press, but headlines don’t translate into sales, making such a car is unlikely.

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THE NEW LUXURY

TAKE A LOOK INSIDE LOUIS VUITTON'S FIRST RESTAURANT Featured within the architectural marvel of the new Osaka Maison Louis Vuitton's plan to take over every facet of the luxury world is still in full effect. In January, the brand showed off a successful collection at Paris Fashion Week, revealed it had bought the second-largest diamond in the world, and announced a multiyear partnership with the NBA. Now, they've opened a restaurant. Yes, a restaurant.

According to Miles Socha of Women's Wear Daily, the world's first Vuitton cafe and restaurant is located on the top floor of the brand's new four-level store in Osaka, Japan.

There's also a bar and a large terrace, with a menu from famed Japanese chef Yosuke Suga. The restaurant and cafe opened for business on February 15, according to Women's Wear Daily.

LOUIS VUITTON JOINS THE GROWING LIST OF LUXURY BRANDS THAT HAVE OPENED BRANDED RESTAURANTS As noted by Amy de Klerk at Harper's Bazaar UK, Tiffany & Co. is set to open its second Blue Box Cafe in the famed Harrods department store in London, in addition to the one it already has in New York City.

There is also Ralph Lauren, which has been operating a massively popular restaurant in New York and a coffee bar in London.

Burberry, meanwhile, operates Thomas' Cafe in London.

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Business Insider also previously reported that Gucci is set to open a restaurant in Beverly Hills, which will be its first stateside restaurant.

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Michael Burke, chairman and chief executive officer of Louis Vuitton, confirmed the restaurant opening to WWD, and hinted that the brand could expand into more eateries and even hotels. In addition, Hypebeast reports that Vuitton's parent company, LVMH, has plans to open an outpost of Langosteria — a high-end seafood restaurant hailing from Milan — in Paris.

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The Louis Vuitton store located in Osaka, Japan

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