Business Arena magazine nr. 109 - GLOBALIZATION IN REVERSE

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2022 No. 109

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magazine

GLOBALIZATION IN REVERSE www.business-arena.ro

L UXURY &L IFESTYLE

TOP BRAND pages 49-71

For a while now, exper ts have been predicting a gradual transition from globalization to localization, as countries feel an increasing need to be more self-reliant . And the war in Ukraine is the latest event offering more grounds for such initiatives. Find more views on this critical topic in this issue of Business Arena. pages 25 - 43

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 this context, after a successful first issue last year, we are happy to introduce The Book of Excellence 2022. 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.

E n j o y

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

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BOOK OF EXCELLENCE 2022, A COMPREHENSIVE AND EXQUISITELY PRINTED COLLECTION OF SUCCESS STORIES, INTERVIEWS AND FEATURES FOCUSING ON BUSINESS ARENA'S AWARD GALAS AND AWARD WINNERS

SPOTLIGHT ON BUSINESS SUCCESS

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

We have decided to build the a project of new publication around our w w w. t h e b o o k o f e x c e l l e n c e . r o Business Arena Publishing Group 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 Overall, this new magazine is desigmore about these successful people and ned to include a wide variety of exciting organizations, so more than 30 business topics and promote business excellence. We leaders, entrepreneurs, highly-regarded plan to publish the magazine annually and jamprofessionals, companies, and banks pack the pages full of success stories to inspire you. Our will be included in our first edition, aim is to inspire readers with new ways of thinking; promote with interviews, biographical greater awareness of issues affecting their business opportunities; details and company and expand our audience to a new generation of business people, profiles. entrepreneurs, and professionals. The Book of Excellence will cover the most dynamic business sectors in this country, including banking, car manufacturing, IT&C, real estate, agribusiness, hospitality, retail, pharmaceuticals and so on. It will have a company profile section, lists of top companies in multiple categories and of course exclusive interviews. cosmin.stangaciu@business-arena.ro or paul.madrio@business-arena.ro or abonamente@business-arena.ro

E D I T O R I A L by

Cristian Cojanu

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UNCERTAINTY TAKES TOLL ON ECONOMIC GROWTH The global economic outlook has taken a turn for the worse as the war in Ukraine generates more uncertainty, commodity prices keep going up, and supply chains are facing more disruptions, according to a recent Erste Group Research report. The report also suggests that inflation risks have increased significantly.

"Economic growth in the Eurozone should have picked up speed again in 1Q due to the sustainable re-opening steps that we have seen. However, the war in Ukraine is now causing economic downside risks. Commodity prices have increased worldwide as Russia and Ukraine are globally important exporters of fossil energy carriers, metals, and food. The higher prices could dampen private consumption, and any new deterioration of supply chain problems affects the manufacturing sector. At the same time, the upside risks for this year’s inflation have increased," Erste Group Research notes in its report.

As for Central and Eastern Europe, the report emphasizes that direct trade links with Russia, Ukraine and Belarus are generally low (close to or below 6% of total imports/ exports), but "the region is highly dependent on Russian gas and oil imports."

"Uncertainty and high inflation will weigh on household consumption and investments, compounded by direct and indirect trade impact from the war and sanctions, as well as by already existing shortages along the supply chain. Thus, CEE8 growth should average 3% this year.

Once the situation improves, GDP growth

may speed up to 4.1% on average in 2023, supported also by Next Generation EU funds," according to the report.

Meanwhile, Fitch Ratings has affirmed Romania's long-term foreign and local currency issuer default ratings (IDR) at 'BBB-', with a negative outlook. Listing the short term challenges, the ratings agency points out that "the Russian invasion of Ukraine represents a significant macro headwind, as it will heighten short-term risks to growth and inflation, and to a lesser extent, to public and external finances." However, "steep increases in commodity prices, supply side disruptions and weaker growth in Romania's main trading partners (mainly the eurozone) will have significant spill overs, heightening short-term risks."

According to Fitch, Romania's GDP growth is expected to slow to 2.1% in 2022 (from 5.9% in 2021), mainly due to a reduction in private consumption and exports. "We expect public investment to provide some momentum in 2H22, in line with higher absorption of the 2014-2020 Multi Annual Financing Framework and from the Recovery and Resilience Fund (RRF). In 2023 we expect investment dynamics to further accelerate, which combined with our assumption of a normalisation of external trade and supply chains, will lift growth to 4.8%."

Find more opinions and predictions about domestic and global economic and geopolitical trends in this edition of Business Arena. As always, we will continue to keep an eye on all the issues affecting the business community.

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

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OPINION

DON’T RUN AWAY, JUST WALK! Fleeing or rapidly moving away from danger is a response deeply imprinted in the animal subconscious as a way to ensure survival. In any species of any size, sensing an imminent life-threatening danger triggers automatic, instinctive responses that cause the individual to quickly turn away from the peril. For tens of thousands of years, this has been a defense mechanism for humans, too, meant to protect their life.

BY RADU CR|CIUN The issue with such a reaction, deeply rooted in the subconscious, is that it exceeds any rational behavior. Under such circumstances, a quick response is critical for survival and therefore we have been “programmed” to no longer wait for the “voice of reason”. Hence, problems may arise that

RADU CR|CIUN

lead to outcomes that are the exact opposite of what we intended.

For instance, when crowds of people are faced with hazards like fires or storms, a sizable number of the victims are the consequence of herd behavior, causing many people to get crushed or trampled. Often

times, this results in jammed exits, which only makes things worse.

Panic is the prevailing feeling in situations like this, it becomes dominant and stifles the voice of reason. And this type of behavior takes different shapes and forms that are sometimes aberrant, regardless of the context that caused the panic. Large amounts of cash in hard currency are withdrawn, ignoring the risk associated with handling and keeping it, people stock up on toilet paper (?), buying or taking medicines uselessly or waiting in crazy-long lines for gas without an obvious, objective reason.

The panic or the fleeing may become manifest on the financial markets, too, and the volatility we are witnessing these days is the consequence of the herd instinct, a herd guided either by fear or by greed. Nota bene, even the seasoned investors may be unable to steer away from the unreasonable instinctive reactions when faced with rapid developments whose consequences they cannot assess quickly enough. We need to be aware of such things, even more so as the population is largely made of amateur, not professional investors.

Which is why I am writing this in an attempt to make as many people as I can understand the losses they might take on by hastily withdrawing their savings from

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investment funds. For instance, many are understandably concerned with the negative developments of such funds that accurately mirror the financial market trends. But what many ignore is the fact that these “losses” in their portfolio are “unrealized” losses, meaning simply on paper, and will be reversed as soon as the markets bounce back. Those who did not panic and remained patient, whether in the 2008 crisis or the 2020 pandemic, did not regret it. The markets bounced back and so did the value of their investments.

Yet, when panic-stricken investors withdraw money from these funds, the losses incurred are no longer purely on paper, but they immediately transfer to the investor’s cash. They become “realised”. Unfortunately, I know people who, under the influence of panic or fear, took such decisions in the attempt to protect their savings. The result was the exact opposite.

Those who manage to keep a clear head

realize that, in fact, during such times, instead of disinvesting, it may be better to keep investing because you have the chance to buy assets/shares at very low prices.

(Some of you may have heard of Chinese businesses interested in buying Russian assets now, taking advantage of the fact that Western companies and investors leave Russia and the prices of Russian shares collapsed).

All these ideas, the call to make rational judgments are not for the participants to investment funds alone. They also apply to people over 60 who must decide whether to take out the money from the voluntary pension fund now or later or to those with bank deposits thinking of withdrawing the deposited funds in cash.

In times like this, keeping a clear head is a challenge. First, one must be aware of it.

Then, one must ask for an informed opinion.

In the end, make your decisions while “walking” cautiously, not “running away”.

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OPINION

ARE THE DAYS OF US DOLLAR DOMINANCE DRAWING TO A CLOSE? Concern is growing that Russia’s invasion of Ukraine will accelerate the demise of the international financial system, and dislodge the US dollar from its privileged status.

BY KAREN MALEY For many, reports that China and Saudi Arabia are now stepping up negotiations to price oil sales in yuan provided confirmation that the US dollar has now begun its ineluctable slide.

As The Wall Street Journal reported, Saudi Arabia is now in active talks with Beijing to price some of its oil sales to China in yuan, a move that would dent the US dollar’s dominance of the global petroleum market.

The report comes as a growing number of analysts warn that Beijing’s determination to diminish the US dollar’s privileged position at the heart of international finance will have been bolstered by the sanctions imposed on Russia by the United States and its allies.

The wide-ranging sanctions imposed on Russia following its invasion of Ukraine have not only increased Moscow’s economic dependence on China, which is already its largest trading partner.

But as Beijing progressively steps up its purchases of Russian oil, and natural gas and coal – which will be paid for in yuan or gold, rather than US dollars – China is also likely to

put more pressure on other suppliers such as Saudi Arabia and the United Arab Emirates to accept payment in yuan.

Now, the fact that the US dollar is at the centre of global commodity markets – some 80 per cent of global oil sales are priced in US dollars – has long helped to guarantee its status as the world’s reserve currency.

Beijing’s resolve to shake up the global financial architecture would have been further reinforced by the speed with which the US and its allies moved to shut big Russian banks out of SWIFT, the financial messaging system that underpins most international transactions, and to freeze assets belonging to Russia’s central bank, depriving the institution of access to hundreds of billions of dollars in foreign reserves.

Growing focus The problem is that if the US dollar and US government bonds are no longer deemed risk

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free, there will be a growing focus on assets that are presently outside the global banking system, such as gold and commodities, and cryptocurrencies.

Zoltan Pozsar, global head of short-term interest rate strategy at Credit Suisse, says a crisis unlike anything since Nixon took the US dollar off gold in 1971 is now under way, which will lead to the creation of a new world monetary order.

“Commodities are collateral, and collateral is money, and this crisis is about the rising allure of outside money over inside money,” Pozsar wrote in a note to clients this month.

According to Poszar, “inside money” covers fiat-backed currencies, such as the US dollar, while “outside money” covers commodities such as gold, oil and cryptocurrencies,

such as bitcoin. When this crisis is over, he warned, “money” will never be the same again, with the US dollar much weaker, China’s yuan much stronger and bitcoin also probably benefitting.

Gaping deficits But this will have significant consequences for the United States, which benefits from the existing global financial architecture, where trade is overwhelmingly conducted in US dollars, and foreigners earn US dollars and plough the money back into US bonds. This allows the US to simultaneously run gaping trade and budget deficits.

According to a report published last October by the US Federal Reserve, “over the

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OPINION

period 1999-2019, the dollar accounted for 96 per cent of trade invoicing in the Americas, 74 per cent in the Asia-Pacific region, and 79 per cent in the rest of the world. The only exception is Europe, where the euro is dominant.”

The report also noted that the US dollar remains by far the dominant reserve currency, accounting for 60 per cent of globally disclosed official reserves in 2021. The bulk of these official US dollar reserves are held in the form of US government bonds.

But the report did point out the US dollar’s international status could be challenged, including from the continued rapid growth of China (although the report noted that the fact that the Chinese currency is not freely exchangeable and the Chinese capital account is not open reduces the appeal to international investors of holding their assets in yuan) and from the rapid growth of digital currencies.

Following Russia’s invasion of Ukraine, residents of both countries have taken shelter in cryptocurrencies in an attempt to protect themselves against steep plunges in their sovereign currencies.

Cryptocurrency donations Ukrainian President Volodymyr Zelensky has signed legislation that legalises cryptocurrency, and which means that crypto exchanges can operate legally, and banks are allowed to open accounts for crypto companies.

Ukraine is estimated to have received at least $US100 million in cryptocurrency donations in the last three weeks. About half of the funds have already been spent on buying bulletproof vests, helmets, medical supplies and on food rations.

But Russian interest in cryptocurrencies has also spiked, judging by the jump in roubles being converted into bitcoin as the Russian

currency collapses.

And this increased Russian interest in bitcoin is raising concerns that Russia may turn to cyber attacks and cryptocurrency mining to prop up its battered economy.

Still, digital currency experts told a US Senate hearing that cyber attack ransoms and cryptocurrency mining were unlikely to replace regular business activity in sanctioned nations.

They also argued there was no evidence that Russia was systematically using cryptocurrencies to evade sanctions.

What’s more, even if wealthy Russians were to convert money into crypto, they would still face difficulties when it came to exchanging cryptos into hard currencies on regulated exchanges.

Still, that leaves the risk that the US dollar’s dominance could be eroded as China pushes ahead with its efforts to introduce a digital version of its currency.

In a column published last year, Kenneth Rogoff, former chief economist of the International Monetary Fund and professor of economics and public policy at Harvard University, predicted that the Chinese authorities will eventually allow the country’s exchange rate to fluctuate more freely, especially against the US dollar.

“When that happens, expect most of Asia to follow China. In due time, the dollar, currently the anchor currency for roughly twothirds of world GDP, could lose nearly half its weight.”

And he pointed out that the People’s Bank of China is far ahead of other central banks in developing a central bank digital currency.

Although the digital yuan is presently used purely for domestic use, Rogoff argued it will ultimately facilitate the Chinese currency’s international use, “especially in countries that gravitate toward China’s eventual currency bloc”.

A B e veevnetnst

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Celebrating achievement, innovation, and a strong brand strategy, the 2022 Brand Excellence Hall of Fame Awards Gala will include categories such as:

The Brand Excellence Hall of Fame Awards is the fourth major gala event in Business Arena’s portfolio, expanding the scope of its annual award ceremonies.

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.

• 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

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BUSINESS TRENDS

FINANCE LEADS THINK THEY WILL BE SIGNIFICANTLY INVOLVED IN STRATEGY DEVELOPMENT AND EXECUTIONS OVER THE NEXT THREE YEARS According to EY Romania CFO Imperative study, the current role of Romanian CFOs today is more oriented on protecting value and optimizing value (38%) and less on growing value (24%), while the future ideal state shifts the focus of the Finance leaders towards the growing value activities (40%) and less on protecting the value (22%), keeping a significant interest for optimizing the value (38%).

The survey was conducted at the end of 2021, after more than one year of experience in working in COVID-19 pandemic conditions and provides a deeper understanding of the unique experience CFOs have faced.

Guillaume Macczak, Associate Partner CFO & GBS Advisory Services, EY Romania said: “Despite a very compliance-rooted culture in

Finance functions, Romanian CFOs surveyed express their wish to catch up with their western countries peers on creating value for their business. This is visible from Strategy design and roll-out to technologies like Analytics and Intelligent Solutions to increased focus on forward-looking data-driven metrics shared with stakeholder communities. They

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also envisage participation to the climate change challenge through European CSRD (Corporate Social Responsibility Disclosure) implementation." He added: "This shift from results-oriented traditional profiles to future value creation ones requires an evolution of

challenging period, there has never been a more exciting time to be a CFO.'”

CFO’s role and their teams, by assuming their new identity as long-term value creators, adapting new ways of empowering talent towards re-skilling and transformative programs, on top of massive investments in Digitalization already started. Nevertheless, I would agree with two thirds (67%) of Romanian CFOs surveyed declaring that 'Despite an extremely

ght a new normal and a new way of doing business for all organizations and functions within, bringing challenges and opportunities for Romanian Finance leaders.

To manage through these challenges and position their organizations for recovery, CFOs considered various measures in the last two years, mostly centered on cost optimization

COVID-19 an accelerator for Finance transformation?

The onset of COVID-19 two years ago brou-

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BUSINESS TRENDS

and cost cutting initiatives (41%), followed by deferring or cancelling some projects (23%), while use of Governmental measures represents only 21% of respondents. Worth noting that only 2% of responding organizations declared they did not consider any special actions to mitigate impacts of COVID-19.

In 2022, the primary goal of the respondents remains costs optimization (42%), followed by restarting some of their deferred investment projects (13%), while still benefiting from usage of Governmental measures (19%).

Yet, 16% of the respondents are not considering any special additional measures related to COVID-19.

On an opportunistic approach, COVID-19 crisis accelerated organizations need for a new kind of growth. 69% of the respondents said their companies have identified a range of COVID-19 related improvements for their business.

This crisis provided an unparalleled catalyst also for Romanian Finance leaders to take on the digitization of the function. Digital adoption and cost savings from working from home have taken a quantum leap towards Future of Finance, for most organization respondents (55%).

Despite engaging in cost optimization initiatives, 84% of Romanian CFOs declared they will not or probably not reduce the number of employees in Finance functions. In the meantime, 80% of them declared they won’t create new positions either. Nevertheless, there are some new post-pandemic positions in Finance function that are likely to increase in popularity: Chief Digital Officer, Crisis Manager, Data Analytics Officer and Risk Manager, as mentioned by some of the respondents.

Building the necessary infrastructure to support a digitized world and stay current in the latest technology was essential for 62% of the respondent CFOs. The benefits from these

heavy investments in IT technologies will have a long-lasting impact on the new way of doing business if companies want to remain competitive in a post-COVID-19 world.

There have been significant variations in how CFOs were able to respond to the unexpected challenges on productivity of their teams in a fully work-from-home environment, some of them being relatively stress-free (38%), some being particularly hard hit (32%) or not having a clear outcome (30%).

However, as lockdowns lift, the hybrid work culture, with certain days in the office and others remote, is becoming more and more appealing for most of Finance leaders.

More than half respondents (52%) declared they will expand remote working in Finance department, while the other half prefers to return to the old way of working (28%) or have not decided yet (20%).

CFO’s perspective on the Finance of the Future The culture and deeply rooted behaviors of the Romanian Finance function are also changing. Or at least they ought to if leaders want to realize the full potential of the Finance transformation.

CFOs desire is to become true business partners for their organizations and the best of achieving this is, if they start role modelling the new behaviors within Finance functions.

Most Finance teams are using already RPA to drive efficiencies, but this intelligent solution can only automate simple, repeatable tasks, it cannot automate the complex processes and workflows needed to improve business agility and efficacy. Adding AIpowered technologies offers the next level of automation for Finance, and CFOs must identify the most appropriate use cases.

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Main areas where technologies related to Intelligent automation are used in Romanian Finance functions are transaction processing (43%), consolidation and reporting (31%) and data hosting and data management (29%).

Transforming the role of Finance leadership: from CFO to CVO The majority of Chief Financial Officers is involved in Accounting & Control, Audit & Regulatory matters, Corporate Reporting and Tax strategy (38%), and less on FP&A insights, Investor relationships, M&A, Talent strategy & HR decisions (24%).

To bridge this gap, this view requires a call on CFOs to include a broader set of stakeholders (e.g., employees, customers, communities, etc.) in their decision making, beyond just their shareholders (83%).

Long-term-oriented companies must be attuned to long-term changes and a first step towards this is CFOs new role becoming perceived as delivering long-term value oriented (69%). Nevertheless, pressure from activist investors requiring short term value is still a reality for 58% of CFOs in Romania.

Moreover, the concept of long-term value creation must become tangible, this representing the critical priority of 87% of Romanian Finance leads, who plan to identify key performance metrics for longterm value. 69% of them (vs 80% globally) are willing to give the Board greater assurance of non-financial reporting, 67% are specifically considering measuring and reporting societal impact and climate change impact, and only 37% of CFOs plan for reporting on non-financial performance related to talent and culture when this represents 72% at the global level of this EY study.

Identifying and monitoring financial and

non-financial indicators will help Finance leaders to explain how investments in talent, innovation, social objectives, and corporate governance create value for both, investors, and other stakeholders.

Over the next three years, Romanian Finance leads think about becoming more of a business partner to their organization, with 78% who think they will be significantly involved in strategy development and executions, followed by 69% involved in business model innovation and new revenue opportunities, these figures being overall aligned with global trends, respectively 80% and 80%.

Besides this strategic role, Romanian CFO will remain the main stakeholder to drive cost efficiency in the organization with 88% of them declaring they will need to advise business leaders on this topic, 81% by providing datadriven decision support and 73% by setting targets and measuring the outcome of enterprise-wide business transformation. On the contrary of their peers globally, only 54% (vs 74% globally) of CFOs see cost benefits of adopting new technologies.

In the Finance of the Future, CFOs purpose will be to add value to the business by serving with a strong focus on trends and scenarios, acting as one agile service, providing insights and analytics in almost realtime at significant lower cost. To realize this shift, Finance leaders will have to leverage upgrading the Finance operating model and optimizing organizational structures, adopting new technologies, enterprise Performance Management and predictive analytics, realtime information, and reporting.

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BUSINESS TRENDS

ROMANIAN COMPANIES ARE CONCERNED ABOUT RISING COSTS AND GREATER GEOPOLITICAL RISK Romanian companies are mainly concerned about the unfavourable evolution of general costs, amid rising prices of energy and raw materials internationally, about the workforce shortages and the geopolitical context, according to the latest edition of Deloitte CFO Survey Romania, conducted based on opinions expressed by over 100 CFOs in the country at the end of 2021.

Most respondents expect increases in transportation costs (92%), workforce (89%) and financing costs (75%). In terms of geopolitical risk, it was already more intensely perceived at the end of last year, compared to the previous year (25%, up from 19%). Also, 44% of participants were more optimistic regarding the financial prospects of their companies in the coming period, slightly lower compared to 50%, last year.

Under these circumstances, the attention to costs remains a priority this year for 29% of CFOs, followed by finding solutions to grow the business in a period of increased instability (20%), while digitization remains a top priority for 11% of them.

According to the respondents’ perception, the Romanian economy has recovered in 2021, after the shock caused by the COVID-19 pandemic, but signs of slowdown began to show ever since the end of last year, amid uncertainties regarding geopolitical tensions in Eastern Europe, the pandemic evolution, but also rising prices. Thus, 90% of CFOs (compared to 83%, the previous year) expect inflation rate to accelerate in 2022.

"The CFOs’ views are in line with the general economic context valid at the end of last year, dominated by the price increases for natural gas, electricity, but also for other raw materials, as well as wage costs. In addition to all this, there are now concerns about the military conflict in Ukraine and its economic and social impact consequently. The shortage of workforce, especially of skilled professionals, continues to be a concern for 69% of the surveyed CFOs, which represents the main risk for the development of their business in 2022. In such a volatile context,

44% of CFOs were optimistic about the business prospects, a smaller percentage compared to the previous year. It remains to be seen how this perception will evolve in the context of the geopolitical tensions," said Zeno Caprariu, Audit Partner, Deloitte Romania, and coordinator of the CFO Program in Romania. Risk aversion remains high, the study said. Although 2021 marked the recovery of the economy after the decline in the first year of the pandemic, the percentage of companies willing to take on more risk increased by only two percentage points, from 16% to 18%.

The same attitude is seen in the CE region, where the majority of CFOs (71%) do not think the year ahead will be a good time for companies to take on greater risk. Companies in most sectors consider the current environment to be extremely volatile. The most optimistic are those in technology, media and telecommunications and those in construction, with 25% of respondents saying that 2022 would be suitable for taking greater risks. However, CFOs expect uncertainty levels to be between normal and high in 2022 (96%). Across the region, 50% of CFOs reported above-normal levels of external uncertainty.

Deloitte CFO Survey Romania is based on a survey conducted at the end of 2021, so it reflects the respondents’ perspectives and views before the beginning of the military conflict in Ukraine. Local answers are also compared to the aggregated data gathered from more than 600 CFOs based in Albania, Bulgaria, Bosnia and Herzegovina, Croatia, the Czech Republic, Estonia, Hungary, Kosovo, Latvia, Lithuania, Poland, Romania, Serbia, Slovakia and Slovenia.

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TRENDS

FLEXIBILITY AT WORK – IT’S MORE THAN JUST WORK FROM HOME After the last two years, you’d be forgiven for thinking that flexibility at work is all about working from home. But flexibility doesn’t stop there. If the pandemic has taught us nothing else, it’s the importance of being flexible in all areas of work to enable us to adapt to new situations that arise.

BY JOANNE ALILOVIC Surveys around the world are showing that people want flexibility at work. In the EY 2021 Work Reimagined Employee Survey, more than half (54%) of the 16,000 employees surveyed around the globe stated they would consider leaving their job if they aren’t afforded some kind of flexibility.

To avoid your business being a statistic in the ‘great resignation’, you need to do more than offer work from home options if you want to attract and retain the best talent and maximise your business productivity and effectiveness. We absolutely need to look at where we ask people to work, but we can’t stop there. We need to keep going and look at when and how we work. Only by considering all these options can we create truly innovative and attractive flexible work practices.

Where we work There is no doubt that work from home has increased rapidly. ABS data shows that 41% of employed people were regularly working from home in August 2021 up from 32% in 2019.

However, we need to look beyond home offices.

“Work from anywhere” is not new. We’ve

always had travelling salespeople, or people who needed to travel to visit clients or suppliers or attend conferences. The difference we are seeing now is the increased appetite from businesses not to require staff to attend a central office – or businesses that don’t even have a central office at all.

Businesses are more commonly accepting work from home or hybrid arrangements, and we are also seeing more willingness to accept uncommon options like “workcations” – working from some other place whether it’s an exotic beach resort or a quiet escape. If there’s a job that doesn’t have to be done in an office, and the right technology is there to support it – what limits really need to be placed on location?

When we work Alternative options to the traditional five day work week have also been around for decades. We’ve seen a variety of changes to working hours including compressed working weeks, different start/finish times, changing days of the week, RDOs, 9 day fortnights, 4 day weeks, job share arrangements and buying extended periods of leave.

The key feature of all these options is that they are formalised. You could say that they

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don’t provide a lot of flexibility at all because once they are locked in, they are as static as the usual 9-5 Monday to Friday.

In 2022 we are seeing an increased opportunity for employees to choose when they work – early morning, late evening, weekends, split shifts in a day – without the need for the arrangement to be formally requested and approved. However, employers will need to be cautious as the law hasn’t quite caught up with society expectations. Although there is a great demand for this flexibility, the law still has rigid requirements around hours of work and rates of pay that employers will need to navigate.

How we work The really interesting changes in flexibility initiatives at work in the future are likely to be those addressing “how” we work. As the pandemic causes people around the world to reflect on work and life we are seeing a greater demand for overall autonomy at work. In a 2021 hybrid working study, the researchers found employees don’t want to be told where and when they must work – they want the ability to choose, and not only that, to change their choice from time to time without the need to seek approval or fit within prescribed limits.

As employees seek more and more

autonomy there is a natural consequence for how we work. If we aren’t all working at the same time and in the same place, we can’t rely on the old methods for communicating and collaborating. As Steve Glaveski says, work will be forced to become more asynchronous in nature. We will see people setting their own schedules and being increasingly selfmanaged.

There is no doubt that we have seen huge leaps forward in technological innovation at work, yet the drive towards autonomy and the need for asynchronous communication options will see this continue. In his article on ‘Our Work-from-Anywhere Future’, Raj Choudhury posited that we will see organisations finding ways to codify workplace knowledge to avoid information only residing “in people’s heads”, new innovative ways to communicate, and in person events specially designed to foster connection and collaboration.

Flexibility in all forms As Adam Grant said “Flexibility is here to stay. Those who reject it, may not be”. It’s up to you to create a menu of flexibility options that suits your business and those who work within it. Don’t be left behind – or worse, completely extinct.

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WORLD ECONOMY

MCKINSEY JUST OUTLINED ITS WORST-CASE SCENARIO FOR THE GLOBAL ECONOMY FOLLOWING RUSSIA'S INVASION OF UKRAINE -

AND IT INVOLVES RECESSIONS FOR BOTH THE US AND EUROPE Putin's invasion of Ukraine has shaken the world, as countries around the globe heap sanctions on Russia, Ukrainians are thrust into a new wartime reality, and the world is missing out on two major food suppliers.

BY JULIANA KAPLAN Now, management consulting firm McKinsey has published a report laying out how the ongoing conflict could impact economies all over the globe.

Both Russia and Ukraine are already facing down dire economic circumstances. As sanctions roil the Russian economy, it could fall into recession as early as this April. The International Monetary Fund said that Ukraine's economy could potentially shrink by a third this year amidst the invasion. For everyday Russians, many of whom may not support the war, the invasion has disrupted the country's previously strong economic recovery from the pandemic.

The outlook isn't good for the global economy either. McKinsey analysts look at several scenarios. In one, the situation is "severe" and "escalating," as it gets longer and bigger; sanctions ramp up, the refugee crisis grows more dire, and markets get disrupted while countries use a moderate policy response as they exit pandemic-era stimulus

programs.

In that scenario, the US and eurozone, which is comprised of European countries who use the euro as currency, could even end up spiraling into a recession as refugees continue to pour in, food and gas prices continue to spike, and overall inflation continues to grow.

Prices in the US could continue to climb as economic growth slows

While the US' economic recovery from the pandemic seems to be chugging along, inflation is still high. The prices of just about everything — especially the things American need the most like food and gas — are going up.

The Fed has stepped in to try and cool that inflation by raising interest rates for the first time during the pandemic era, and will very likely keep increasing rates throughout the year, which would make borrowing more expensive and therefore reduce demand for loans and credit cards. Although, as Insider's Ben Winck reports, how many times rates will rise and the effect they will have on the

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A refugee crisis could fuel Europe's economic troubles

broader economy is still unclear.

"It appears that the invasion of Ukraine will only slow the pace of interest-rate hikes, not change the course of policy in the United States," McKinsey says. While rising interest rates could quell spending and ease inflation, uncertainty around the invasion may mean the Fed approaches this tool with a slower schedule.

Central Europe's "refugee crisis" could worsen as the war goes on. The UN has already said that the refugee crisis in Ukraine is beyond its "worst-case scenario," with about 10 million Ukrainians already fleeing their homes. Under the severe scenario that McKinsey writes about, Europe would see gas

If there is "severe" and "escalating" disruption, oil prices would stay high — and confidence would get "shaken" — leading everyone to spend less. That would spell recession for the US. Indeed, there could be "strong potential" for recession in the US, as inflation remains high in 2022 and 2023, according to asset management firm TCW. It may just be a throwback to the economy of the 1970's, where stagflation — stalled growth, paired with high prices — was the name of the game.

prices more than double, and inflation shoot up over 7%.

For the eurozone, that spells recession in 2022 and 2023, with inflation finally easing by the middle of 2023, and employment and growth not fully recovering until 2024. Europe already took a big financial blow from the pandemic, seeing a "double-dip" recession, according to the BBC. The eurozone fell into its second recession in early 2021 after the initial shock from the early pandemic in spring 2020.

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BANKING AND FINTECH

BANKS TURN TO FINTECH IN ORDER TO BE BETTER EQUIPPED TO COMPETE IN THE DIGITAL RACE Fintechs, focused on streamlining digital transformation for financial institutions (FIs), including banks, have raised millions to continue developing their products. With an unfading interest in companies that would help compete against fastgrowing high-tech rivals, banks are now trusting Fintech to help them get up to speed and ahead of the competition; this has brought an entirely new balance in the industry that, in the end, could be beneficial for both.

Most traditional banks have decades of experience behind them, and with it—vast amounts of diverse client data. According to Simas Simanauskas, Partnerships Director at ConnectPay, this brings two-fold benefits.

“The very essence of fintech is to utilize superior technology to create better products in the financial sector, so the fact that big banking groups are turning to fintech for solutions is a dream come true for the industry,” Simanauskas said. “Firstly, the vast amount of real-world data that banks possess is a gold mine for fintechs that can utilize it to make their technology better. Secondly, many

banks have similar problems, which means that a solution built for one bank can be repackaged and sold to the others.”

It is apparent that the new generation of

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consumers is more tech-savvy, thus is more inclined to access digital banking services online rather than through brick-and-mortar banks. That said, the shift to online has not removed the emphasis on personalized experiences, as surveys show customers still describing it as “highly important”. This is where Fintech steps in as well, having the necessary tools to help banks retain a close

connection to their customers all the while becoming more digital.

“Neo-banks have built new frameworks from scratch, employing the latest technology.

Now, light but powerful tools are used to run their key processes. Consequently, this has set a new benchmark for customer service. Thus, using the solutions that Fintechs have already built and refined, banks are more likely to meet the expectations of the modern-day consumer,” Simanauskas stated.

“Essentially, in the 2020s, Challengers are doing to banking what McDonald’s did to the food industry with their “Speedee Service System” in the 1940s—selling cheap and serving fast. There is no going back, especially as bank clients become younger and more tech-savvy,” he added.

As banks and fintechs are finding more ways to coexist, new partnerships continue to emerge. For instance, London-based fintech Banked recently acquired a $20 million investment from the Bank of America to develop “Pay by Bank” solution and address rising processing fees. In Spain, BBVA bank backed digital bank Neon with $300 million, giving it a 29.7% stake in the fintech.

All in all, Fintech has brought a culture of cooperation in the industry. As Simanauskas noted, “why compete by offering the same core products that have high set-up and maintenance costs, when you can specialize in bringing additional value, at the same time driving down costs of having to maintain,e.g. a clearing system that now gets 2x of the flow.”

What’s more, increased collaboration is set to bring additional value to customers, who will gain access to more refined financial tools.

“Currently I’d call the collaboration a fine balancing act, with challengers bringing efficiency to legacy systems while brick-andmortars are continuing to transform their framework,” Simanauskas said. “In the meantime, both are closely observing the market and competing with newcomers in the bid to retain their customers, which essentially means that, in the end—it’s the user that gets the best of both worlds.”

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ENERGY INVESTMENT

ADDICTION TO FOSSIL FUELS IS ‘MUTUALLY ASSURED DESTRUCTION’

AND IT COULD HIT YOUR PORTFOLIO TOO

Not only will addiction to fossil fuels drive the world’s “mutually assured destruction,” it could also hit your investment portfolio, warns the CEO of one of the world’s largest independent financial advisory, asset management and fintech organisations.

The warning from Nigel Green of deVere Group, a game-changing global financial giant, comes as UN Secretary General Antonio Guterres said at an event organised by The Economist: “Countries could become so consumed by the immediate fossil fuel supply gap that they neglect or knee-cap policies to cut fossil fuel use.

“This is madness. Addiction to fossil fuels is mutually assured destruction.”

Nigel Green comments: “The Secretary General is, of course, right. The race to replace Russian oil, gas and coal supplies could have catastrophic, irreversible consequences for the planet.

“The international scramble to fill the energy gap is putting in serious jeopardy the essential goal of capping global warming at 1.5 degrees Celsius set out in The Paris Agreement.

“It’s critical that countries around the world continue to work on their reduction of emissions in order that we have any chance of meeting the target of a 45% cut in global emissions by 2030.”

Last year deVere Group joined global financial powerhouses - the world’s two largest credit rating agencies, six major audit

networks, three leading index providers, and two global stock exchanges - in becoming a founding member of a new international alliance that will help accelerate the transition to a net zero financial system.

The Net Zero Financial Services Providers alliance joins the Glasgow Financial Alliance for Net Zero, the UN group for financial institutions to make credible net zero commitments through the UN’s Race to Zero project.

The deVere CEO continues: “Hitting the brakes on decarbonisation is not only a serious issue for our planet, it could also hit investors’ portfolios if they move away from sustainable investments.

Impactful investments have been making up an increasingly large proportion of portfolios in recent years. Indeed, they have gone from ‘nice to have’ to a legitimate portfolio diversification tool that delivers profits with purpose.

“This trend should not change in the wake of the current geopolitical issues. We are in extraordinary times, but these do not last forever – as financial history teaches us - and investments should remain future-focused.

Earlier, Nigel Green said the case for green

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energy being an investment megatrend of the decade has not changed for three key reasons.

First, governments and regulators are becoming increasingly pro-ESG which boosts investor confidence. Second, as millennials, who are statistically more likely to seek responsible investment options, become the major beneficiaries of the largest intergenerational transfer of wealth – an estimated $30tn in the next few years – we can expect both retail and institutional investors to continue to pile into ESG. Third, the pandemic focused minds on the fact that the health of

our planet directly affects human health which, in turn, affects the way we all live and work. This global mindset shift represents enormous opportunities for investors.

The deVere CEO concludes: “Investors need to think carefully before rushing to reposition portfolios away from future-focused alternatives in the wake of the Russia-Ukraine situation.

“Climate change remains the greatest risk to economies and communities around the world – and there are major opportunities and high rewards for those who invest in a more sustainable future.”

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WEALTH MANAGEMENT

RUSSIA’S TEN RICHEST LOSE $45 BILLION OF NET WORTH IN 2022 Russia’s wealthiest individuals are apparently paying the price for the country’s invasion of Ukraine, which has resulted in economic turmoil.

The individuals have incurred a significant plunge in their wealth, with the losses likely to continue as the war accelerates.

Data acquired and calculated by Finbold indicates that Russia’s top ten wealthiest people have cumulatively lost $45 billion from their net worth in 2022 as of March 22. The group currently controls a combined fortune of $179.70 billion, with the wealth spanning different sectors, including energy, industrials, commodities, among others.

Russia’s third-richest person and the main shareholder in Novatek gas company, Leonid Mikhelson has suffered the most losses at 33.3%, with his current net worth standing at $21.6 billion. Vladimir Lisin, who ranks fourth with a net worth of $20.6 billion, has the second-highest losses at 26.3%.

Mikhail Prokhorov has the least losses at 2.28%, while the fortune of the country’s richest person Vladimir Potanin has declined by 19.9%. Data on Russian billionaires’ change in net worth is provided by the Bloomberg Billionaire Index.

Western sanctions accelerate losses for Russian billionaire The loss in wealth highlights the impact of the sanction imposed on Russia following the country’s unprovoked invasion of Ukraine.

Overall, the sanctions have impacted the general economy, with the ruble sinking to

historical lows alongside the ejection of some Russian banks from the SWIFT international banking system.

The billionaires are among the Russian business elites who have faced individual Western restrictions for their close ties to President Vladimir Putin. The losses partly account for the move by western countries to accelerate the seizure of the billionaire’s assets held in foreign countries.

Elsewhere, the wealth has also suffered the impact of the stock market sell-off that began this year when geopolitical tensions were brewing. The sell-off resulted in the value of most companies experiencing a drastic fall.

The situation has been complicated with the almost one-month-long closure of the

Russian stock market.

Worth mentioning is that most of the billionaires have their stake in the energy industry, which is suffering the consequences of the sanction. Notably, before the tensions accelerated, some of the billionaires benefitted from steady oil and gas revenues, especially with the revival of economies after the pandemic lockdowns.

However, reports indicate that Russia is experiencing a sharp drop in oil sales, a

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situation that is impacting the wealth of the country’s elites. The crisis around energy could further dent the fortunes of wealthy individuals since the revenue is essential in driving Russia’s economy.

The billionaires respond As part of protecting their fortune, some billionaires resorted to handing over control of

their assets alongside stepping aside from critical positions. For instance, Roman Abramovich had announced the sale of his English premier soccer club Chelsea FC and pledged to donate the proceeds to victims of the Ukraine war. However, he was later sanctioned by the United Kingdom government.

Additionally, the billionaires are also moving their assets like luxury yachts from Europe to friendly jurisdictions.

Notably, the Maldives has emerged as an ideal destination for properties like yachts since the jurisdiction has no extradition treaty with the United States.

The billionaires have also come out to condemn the acts of the Russian government openly, and some have gone ahead to attempt to help Ukraine.

Although the next course of the war remains uncertain, it could get worse if sanctions intensify.

The financial losses among Russia’s richest could increase pressure on Putin, who continues to face a global backlash proceeding with the attack.

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IPO MARKET

GLOBAL IPO MARKET EXPERIENCES SIGNIFICANT SLOWDOWN IN Q1 2022

After record-high levels of global IPO activity in 2021, volatile market conditions have resulted in a significant slowdown during the first quarter of 2022, according to an EY report. The year started off strongly, continuing the momentum of Q4 2021, with January producing the strongest opening month in 21 years by proceeds. However, by the second half of the quarter, worldwide stock market declines shifted the trajectory dramatically in the opposite direction, resulting in a significant drop in overall activity. For Q1 2022, the global IPO market saw 321 deals raising US$54.4b in proceeds, a decrease of 37% and 51% YOY, respectively.

The sudden reversal can be attributed to a range of issues, both emerging and residual.

These include the rise in geopolitical tensions; stock market volatility; price correction in overvalued stocks from recent IPOs; growing concerns about a rise in the commodity and energy prices; impact of inflation and potential interest rate hikes; as well as the COVID-19 pandemic risk continuing to hold back a full global economic recovery.

In line with the sharp decline in global IPO activity there was a considerable fall in crossborder, unicorn, mega (proceeds above US$1b) and SPAC IPOs. There were also a number of IPO launches postponed due to market uncertainty and instability.

Overall regional performance IPO activity in the Americas region completed 37 deals in Q1 2022 raising US$2.4b in proceeds, a decline of 72% in the number of deals and a 95% fall in proceeds YOY. The Asia-Pacific region recorded 188 IPOs raising US$42.7b in proceeds, a decline YOY of 16% for volume, but an increase of 18% in proceeds. EMEIA market IPO activity in Q1 2022 reported 96 deals and raised US$9.3b in

proceeds, a decline YOY of 38% and 68%, respectively. Paul Go, EY Global IPO Leader, said: “A decrease in IPO activity was not unexpected when compared with Q1 2021 as the latter was the most active quarter in the last 21 years. However, the market shock from geopolitical tensions and other economic concerns in the second half of the quarter created volatility and impacted the capital markets. While markets continue to be volatile, and uncertainties on economic recovery remain for reasons including continuing concerns around COVID-19, there is a risk that IPO activity will continue to slow further with IPO candidates choosing to postpone their transactions. Companies need to be well prepared to access the market when the window opens, likely for a shorter timeframe, and include a careful review of business models and preparation of alternative fundraising plans.”

Americas IPO markets pale in comparison to Q1 2021 IPO activity in the Americas region weakened this quarter in comparison to the record- breaking Q1 2021, with deals down

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72% (37 IPOs) and proceeds falling by 95% (US$2.4b). Health and life sciences led the number of deals while a single large deal drove financials to lead by proceeds. In the Americas, the materials sector followed by number of deals, driven solely by the smaller Canadian exchanges (CSE and TSX-V), while health and life sciences ranked second by proceeds.

The pace of SPAC IPOs and mergers slowed amid challenging market conditions.

Activity is expected to pick up as the year progresses because more than a quarter of the 600+ active SPACs expire later this year and more than 60% expire in the first half of 2023.

Brazil's IPO market ground to a halt in 2022 as dozens of companies cancelled or postponed deals. Volatility in the Brazilian market is expected to continue with elevated inflation and interest rates, and a fragile fiscal position, coupled with upcoming elections and consequences from geopolitical tensions.

Rachel Gerring, EY Americas IPO Leader, said: “This year continues to test the resiliency and agility of companies looking to go public.

With increased volatility in the markets and uncertainties surrounding geopolitical crises, oil prices and inflation, there is increased focus on public company readiness to give companies the flexibility to capitalize when market conditions are optimal.”

Asia-Pacific IPO proceeds rose 18% in Q1 2022 benefiting from mega IPOs The Asia-Pacific region started the year strongly with an 18% rise in proceeds YOY, despite a 16% decline by deal numbers in Q1 2022. Four of the seven mega IPOs in Q1 2022 globally were listed in this region, including two of Q1’s largest IPOs by proceeds. The region saw 188 IPOs raising US$42.7b in proceeds, surpassing Q1 2021 which had raised the highest Q1 proceeds in

21 years. In terms of sector activity, industrials led by volume (40 IPOs, US$3.3b), followed by materials (37 IPOs, US$5.3b), while energy and telecommunications led by proceeds (US$11.2b via 8 IPOs and US$8.5b via 3 IPOs, respectively).

Greater China saw a 28% decline in deals (97) and a modest 2% rise in proceeds (which raised US$30.1b) YOY. Hong Kong saw notably slower IPO activity due to recent market volatility, a severe outbreak of Omicron

cases and a relatively bigger fall in the local stock market indices. While Mainland China also saw a small decline in deal numbers, proceeds rose YOY due to hosting three of the seven mega IPOs in Q1 2022.

After the largest number of IPOs seen in 2021, Japan’s IPO activity slowed in Q1 2022, with a number of small cap IPOs coming to the market. Overall Japan saw 15 IPOs raise US$0.2b in total proceeds.

South Korea carried its strong IPO momentum from 2021 into January 2022, with Korea Exchange’s largest ever IPO raising US$10.7b. IPO activity was slower in February, prior to South Korea’s presidential election in March. In Q1 2022, Korea saw 19 IPOs with total proceeds of US$11.2b, a 21% decline in deal numbers but a 368% rise by proceeds.

Ringo Choi, EY Asia-Pacific IPO Leader, said: “In many parts of Asia-Pacific, the COVID-

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IPO MARKET

19 pandemic is still impacting the economy and IPO activity. There is, however, optimism of more IPO activity to come in the second half of the year. The IPO markets remain receptive to high-quality companies as governments and Central Banks continue to support economic growth and liquidity. Due to recent geopolitical and regulatory changes, IPO candidates are recommended to have a plan B in place to explore more ways to secure investors from different geographies.”

EMEIA’s IPO market affected by market volatility Recent elevated market volatility from geopolitical tensions unsurprisingly impacted EMEIA equity markets and subsequent corporate activity. Many IPO candidates in the region postponed their IPOs until a clearer picture emerges on the economic outlook.

Overall EMEIA saw 96 IPOs, a decline of 38% YOY, proceeds raised were US$9.3b, a 68% decline YOY. On a more positive note, the global financial markets remain open and functioning despite the continued uncertainty.

In the first quarter of 2022, Europe accounted for 15% of global IPO deals and only 5% by proceeds. Two European exchanges were among the top 12 exchanges by deal numbers and by proceeds raised. Deal numbers in Europe were 47 with proceeds of US$2.7b raised. In the UK, the slower pace of IPO activity was due to a dip in investor confidence from Q4 2021 that carried into 2022. Q1 2022 saw eight IPOs in the UK with total proceeds of US$113m, a YOY decline of 60% by deal number and a dramatic 99% fall by proceeds. Dr. Martin Steinbach, EY EMEIA IPO Leader, said: “The current geopolitical tensions and widespread uncertainty in many EMEIA equity markets are forcing IPO dealmakers to look at alternative options or to consider delaying their IPO until calmer waters arise. We

have already seen a number of IPO postponements in the short-term which has resulted in a quiet first quarter of this year. It remains challenging for companies to determine the right timing and alternative strategies that provide access to funding for further growth.

IPO candidates should continue to prepare and keep all options open.”

Shift in sector performance The first quarter saw some slight shifts in sector performance partly due to the changing economic environment and market conditions.

Both the technology and materials sectors led by number of IPOs with 58 each, raising US$9.9b and US$5.9b, respectively. This was followed by industrials (57 IPOs raising US$5b).

Technology continued its dominance by deal numbers for the seventh consecutive quarter (since Q3 2020) but ranked second by proceeds – breaking a streak of seven consecutive quarters raising the highest IPO proceeds since Q2 2020. In Q1 2022, energy took the lead in terms of proceeds (US$12.2b via 15 IPOs), driven by Q1’s largest IPO on the Korea Exchange, while telecommunications came third (US$8.6b via six IPOs) due to Q1’s second largest IPO on the Shanghai Stock Exchange.

Q2 2022 outlook: use the pause to re-examine your business in face of the unprecedented challenges Paul Go said: “As many uncertainties remain, the market will remain volatile with a backlog of IPO candidates and pipelines will continue to build up. With the prevailing headwinds arising from geopolitical tensions and conflicts, inflation and interest rate hikes, it will be imperative for IPO-bound companies to take a fresh look at how these challenges will affect their markets, customers and suppliers to their business.”

LEADERS Business Arena is proud to announce the 2022 issue of its annual publication looking at the makings of good leaders, their vital contribution to overall business success and the future talent pipeline in Romana.

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Good leadership is essential to business, to government and to groups and organizations that shape the way we live and work. Leadership is also important because it sets a clear vision and commu nicates effectively. The clear vision gives staff members a better understanding of organizational direction and makes them realize their roles and responsibilities.

According to the Bersin by Deloitte report HighImpact Leadership Development, organizations with stronger “leadership maturity” are 11 times more likely to have a high number of leaders who can build talent for competitive advantage. And they’re seven times more likely to have a high number of leaders who can inspire people to follow them.

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

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HUMAN RESOURCES

BARINGS COLLABORATES WITH MASSMUTUAL ROMANIA TO RECRUIT NEW TALENT FOR STRATEGIC PROJECTS Barings, one of the world’s leading investment managers, announced that it entered into an agreement with MassMutual Romania Global Business Services (MassMutual Romania) to attract talent in Romania. Both companies are subsidiaries of Massachusetts Mutual Life Insurance Company (MassMutual). This new recruitment partnership follows the opening of MassMutual Romania in 2020 and its growth, aimed at providing both companies with access to a broader talent pool to remain on the cutting edge of technological advancement.

As part of Barings’ global talent sourcing strategy, MassMutual Romania will provide additional teammates to assist in the delivery of operational and technology capabilities. With operations in Bucharest and Cluj-Napoca, MassMutual Romania offers Barings the opportunity to access talent and build teams in the country, enabling Barings to provide its global clients with greater operational speed and increased coverage given the additional time zone it covers.

Steve Boehm, Chief Operating Officer at Barings, said: “We are excited to collaborate with MassMutual Romania to build a local team, as finding the right talent remains a key strategic priority for the business. The investment management industry is undergoing transformational change that requires us to employ data, technology - and people who are experts in them - in new and creative ways. We were impressed with Romania’s talent pool in data engineering and data science, software development and core technology, and operations management. We hope to become recognized as a great career option and place to work by professionals who will be integral to our future success.”

“MassMutual Romania’s partnership with

Barings is aligned to a common goal to further evolve in response to clients’ changing needs while remaining highly competitive in the global market,” added Michael Makar, Head of MassMutual Romania. We are delighted to collaborate with Barings, a testament to our company's growing strength and stability in Romania.” MassMutual Romania is already hiring local talent for Barings and building a team of developers to support its operations.

New employees undergo trainings both for interpersonal and technical skills as a part of the MassMutual Romania ongoing professional development program.

Mihaela Berechet, Head of HR at MassMutual Romania, said: “Working as a part of the Barings project team at MassMutual Romania means joining an established global firm with a collegial, team-based culture and rich history in asset management. We pride ourselves on fostering a dynamic environment where employees at all levels of the organization can exchange knowledge and ideas, and we offer them opportunities to develop both personally and professionally. We are committed to attracting and retaining a talented workforce whose diversity reflects our culture and communities.”

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REAL ESTATE

LOGISTICS MARKET SHOWS RESILIENCE The local logistics sector has not only shown resilience during the pandemic, but went on to benefit from consumer and business reactions to the sanitary crises. Thus, the leasing activity in 2021 exceeded the 1 million sq. m threshold for the first time in the market’s history. The net take-up accounted for over 80% (802,000 sq. m) of the transacted volume and continues to be the main driver of the market, according to Cushman & Wakefield Echinox real estate consultancy company.

Companies accelerated their expansion plans in the last quarter of 2021, the demand for industrial and logistics spaces reaching a record level of 441,000 sq. m, which represented 44% of the entire 2021 volume.

The broad expansion of e-commerce, both geographically and in terms of product range, were among the key drivers of demand over the last year. In this context, the take-up was mainly generated by companies active in the distribution and logistics sectors, and also by retail, FMCG, e-commerce operators, these companies being responsible for 50% of the traded volume.

Network One Distribution, Mobexpert, Havi Logistics, DSV, Elbi, Altex, Metro Cash & Carry, Kuehne + Nagel, ITC Logistics or Tuborg are just some of the tenants who signed relevant leasing contracts during last year. Other active sectors were the automotive, manufacturing, pharma and courier industries, with almost 200,000 sq. m rented.

Bucharest attracted 67% of the 2021 transactional volume, while Timisoara, Brasov and Oradea were the most dynamic regional markets.

In terms of new deliveries, the full-year new supply reached 530,000 square meters, corresponding to an annual decline of 18%. A sustained occupier demand resulted in the vacancy rate decreasing to 4.2% in Bucharest and 3.5% across Romania.

The strong demand for logistics and industrial properties combined with low vacancy rates, encourages developers to continue their portfolios’ expansion. The pipeline reveals almost 600,000 square meters of new spaces planned for delivery in the next 12 months, with more than 50% of those spaces being located in Bucharest. Timisoara, Brasov and Cluj will also benefit from new industrial and logistics premises in 2022, but there is also a clear interest towards secondary and tertiary cities driven by the recently increased demand for such locations.

Rodica Târcavu, Partner Industrial Agency, Cushman & Wakefield Echinox, said: “The market continued to be highly dynamic in 2021, driven by demand coming from various economic sectors. The most active companies in terms of demand come mostly from traditional retail, e-commerce, logistics and distribution..

We are pleased to see that a large of number of transactions (over 30), with an area of more than 10,000 sq. m, were finalized, which gives us confidence that the logistics and industrial market in the country will continue on this impressive development trend. Romania is perceived as an attractive destination for international companies due to its geographical connections with the Central and Eastern Europe, the Balkans and the Middle East, and also in terms of the workforce quality and availability and the overall wage level.”

BUSINESS TRENDS

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COMPANIES MUST BALANCE ESG, COVID-19, AND THE UKRAINE CRISIS TO WITHSTAND UNCERTAINTY Russia’s invasion of Ukraine has sent shockwaves through a broad spectrum of industries and could create hurdles for emissions targets as companies cope with disruption.

However, GlobalData found that companies that can balance Environmental, Social and Corporate Governance (ESG), COVID-19, and geopolitical priorities instead of episodically focussing on one form of disruption stand to gain the most.

According to a recent GlobalData survey, COVID-19 will continue to dominate the attention of businesses in 2022, with 69% of respondents indicating that it will have a high impact on their business in the next 12 months. Although 67% of respondents said COVID-19 had been a catalyst for an increased focus on ESG, the International Energy Agency (IEA) recently reported that 2021 saw the highest absolute increase in CO2 emissions ever recorded. ESG once again slipping down companies’ agendas due to the ongoing Ukrainian crisis remains a significant issue.

Despite the narrative of a green recovery, the latest IEA report reveals a bleak picture. In 2021, global energy-related carbon emissions increased by 6%, reaching 36.3 billion tonnes. This was the largest absolute increase in carbon emissions ever recorded. It is due to many parts of the world pursuing a dirty recovery, using fossil fuels to power a COVID-19 rebound. As the Ukrainian crisis looms large, it is clear a healthier response to perturbation is required.

Francesca Gregory, Associate Analyst at GlobalData, comments: “While many lessons can be learned from COVID-19, the pandemic revealed our struggle as a society to cope with

more than one emergency. Companies are encountering the same problem. In GlobalData’s recent thematic report, ESG Strategy Survey 2021, COVID-19 was singled out as the most disruptive threat, with 69% of respondents saying it would have a high impact on their businesses over the next 12 months.”

However, the current moment also represents an opportunity for companies to demonstrate their ability to respond to change. Companies such as Apple, Microsoft, Nike, Visa, Mastercard, and McDonald’s have all looked within their operations and supply chains to assess their contribution and react accordingly.

Gregory adds: “Companies that can detach from episodically focussing on one disruptive threat and instead balance ESG, geopolitics, and pandemic priorities will be the most resilient.

Flexibility is no longer just nice to have, it will be a necessity for withstanding the current uncertainty. A combination of geopolitical tensions, rising ESG scrutiny, and the potential for viral resurgences will demand a rapid reconfiguration of supply chains. Companies that fail to respond to change will face disruption in their operation as well as a potential backlash from consumers.”

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ECONOMY

COMMISSION AND EIB AGREE TO MOBILIZE 500 MILLION EURO WITH NEW EQUITY FUND FOR BLUE ECONOMY At the BlueInvest Days 2022 in Brussels, Commissioner Virginius Sinkevičius and EIF Deputy Chief Executive, Roger Havenith announced a new dedicated equity initiative for the blue economy under InvestEU. The initiative will mobilize an additional EUR 500 million of EU funds for financial intermediaries investing in this sector. Commissioner Sinkevičius also announced that the European Commission’s successful BlueInvest initiative will continue beyond 2022 until 2026.

European Commissioner Virginijus Sinkevicius, responsible for Environment, Oceans and Fisheries, praised the achievements of the BlueInvest initiative, which in the past 3 years has been highly successful in terms of getting hundreds of SMEs coached and matched with investors. The initiative has led to a large number of financing deals being signed, has strengthened the investment landscape for the blue eco-

EIF Deputy CE, Roger Havenith said: “After the success of the pilot initiative launched under EFSI, we are now very excited to be launching the new InvestEU Blue Economy initiative to support European businesses in the blue economy. Climate action and environmental sustainability are a top EU priority. We are confident that this initiative will make a meaningful contribution in that direction, making financing available to support innovative businesses and ambitious entrepreneurs that seek to find solutions to the blue economy challenges.

From BlueInvest to InvestEU Blue Economy

nomy, increased investor awareness and helped bridge the finance gap for blue technology SMEs and start-ups.

He said: “The first phase of the platform acted as an accelerator to foster innovation and investment in sustainable technologies for the blue economy. To further deepen and scale up these activities, we are now launching the second stage of BlueInvest. This will provide an even better service to European SMEs and investors, and more impact to support the European Green Deal objectives.”

InvestEU Blue Economy, the scaled-up equity initiative that builds on the BlueInvest Fund pilot under EFSI, brings together the European Maritime, Fisheries and Aquaculture Fund, the EIB Group and InvestEU finance, thereby mobilising an additional EUR 500 million of EU funds for financial intermediaries investing in this sector. This will result in EUR 1,5 billion of risk-financing available to innovative and sustainable blue economy SMEs and start-ups, via financial intermediaries. The call for expression of interest will be soon published by the EIF. As a novelty the BlueInvest platform as well as the EIF and EIB will provide capacity building and advisory support for financial intermediaries and impact investors targeting investments in the blue economy

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THERE’S NOTHING NORMAL ABOUT THE GLOBAL ECONOMY Markets are suggesting we're returning to some sort of normality despite the ongoing carnage in Ukraine. I think they're wrong. Europe's facing a humanitarian and economic crisis that has spill over consequences for the rest of the world. No, this is not a return to normality.

Financial markets suggest we're returning to some sort of normality. But as the war in Ukraine rages on, ING's Carsten Brzeski says nothing could be further from the truth.

The markets are not always right The war in Ukraine has entered its fifth week and financial markets seem to have returned to some sort of normality with stock markets recovering and the Russian ruble almost back to its pre-war level. There's an old saying that the market is always right. I'm not buying it this time around. Nothing about this war is normal. Every single second this war continues is not normal.

On the contrary, the economic implications of the war, sanctions and self-sanctions have only just started to unfold and will continue to affect the global, and particularly the European economy for a long while.

As much as everyone is looking for guidance to gauge the global economic impact of the war, it is simply impossible to give this kind of certainty. If anything, the last two years of the pandemic have shown that economic models are not able to precisely predict the economic consequences of an unprecedented event. The only thing models and economists can currently do is to describe and analyse the channels through which the war in Ukraine might and will affect the global economy. Think of the impact and role energy and commodities currently play, how supply chains will be hit once again but also how inflation will remain higher for longer all while Europe is trying to finance an even faster green transition combined with higher defence spending.

Europe has to overcome its many challenges Europe is particularly at the risk of losing international competitiveness as a result of the war. For the continent, the war is much more of a game-changer than the pandemic ever was.

I'm not talking just in terms of security and defence policies but notably about the entire economy. The eurozone is now experiencing the downside of its fundamental economic model, that of an export-orientated economy with a large industrial backbone and a higher dependency on energy imports. It's certainly benefited from globalisation and the division of labour. Now's it's having to speed up the green transition and energy autonomy while at the same time increasing defence spending and the funding of ongoing investment initiatives to improve digitalisation and education. It's quite the challenge.

But it's a challenge that can and actually must succeed. If and when it does, Europe should be well-positioned. But the pressure on household finances and incomes will remain huge until it gets there. Corporate profits, meanwhile, will remain high.

Europe is facing a humanitarian crisis and significant economic transition. The war is taking place in the 'breadbasket' of Europe, a key production area for grain and corn. Food prices will rise to unprecedented levels. Higher inflation in developed economies could be a matter of life and death in developing economies.

No. Financial markets are misguided. There's no return to any sort of normality of any kind right now.

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ECONOMY

US MARCH 2022 INFLATION TOUCHES A NEW 40-YEAR HIGH OF 7.9% Americans are grappling with the nation’s worst 12-month inflation in 40 years.

MoneyTransfers.com analysis shows that the nation’s inflation rate for February 2022 was 7.9%. That’s the highest it has been since January 1982. Then the nation had recorded an inflation rate of 8.4% off of a ravaging recession.

The recent figure keeps with market expectations. That’s because the FED had anticipated higher rates at the year’s turn.

MoneyTransfers’s analysis indicates that rising energy prices played a significant role in the metric. Market data shows that Energy prices grew by almost 26% in the month, with gasoline alone recording a 38% increase compared to 40% in January.

Where are Americans feeling the most pinch?

Significant price gains in food, housing, and motor vehicles have also contributed to the high inflation rate. For instance, housing costs shot up by 4.7% compared to 4.4% in January.

Likewise, Americans had to dig deeper for foodstuffs. Their prices shot up by 7.9%, a 0.9% from January estimates. Again, the gains in food costs are the biggest the country has recorded since July 1981.

Other areas that also recorded significant price movements are transportation and clothing. The data shows that Americans had to pay 12.4% more for new vehicles. Similarly, they had to part with an extra 41% for used cars and trucks. Overally, the country’s month on month CPI grew by a seasonal adjustment of 0.8% The past year has witnessed elevated inflation due to strong consumer demand for goods due to supply chain bottlenecks occasioned by the Covid 19 crisis. That has been exacerbated by a tight labor market pushing wages higher. Consequently, there are more job openings than businesses can fill, leaving them grappling with consumer demands.

How does the Russian-Ukraine conflict impact U.S inflation?

Analysts warn that the worst is yet to come too. They hold that the U.S is yet to experience the effects of the Russia-Ukraine conflict. That war will affect energy costs further following the U.S’s sanctions on Russian oil imports.

Economists, including Joel Naroff of Naroff Economics LLC, have been speaking about the effects of the Ukrainian crisis. He holds that the containment of coronavirus would have entangled the global supply chain. That is, however, now in doubt following the happenings in Ukraine.

Fears of rising inflation

Well before the crisis, economists had been projecting a rise in YOY inflation by spring of 2022. That would have arisen from the recovery of supply chains from the pandemic-induced disruptions. Russia’s invasion of her neighbor Ukraine has worsened the situation threatening to prolong the inflationary environment.

Russia is a critical supplier of oil and gas globally. It’s also a significant supplier of essential metals for motor vehicle and airplane manufacture. Again, the country plays a leading role in the supply of fertilizers, a central component of food production.

The West has been ramping up sanctions on the country to push its exit from Ukraine. Cutting it off from the global markets will have ripple effects on world economies, including the U.S. In his last presentation to the senate banking committee, the U.S’s Fed chair Jerome Powell has alluded to that much.

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GLOBALIZATION IN REVERSE

For a while now, experts have been predicting a gradual transition from globalization to localization, as countries feel an increasing need to be more self-reliant. And the war in Ukraine is the latest event offering more grounds for such initiatives. Find more views on this critical topic in this issue of Business Arena.

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DEGLOBALIZATION

LARRY FINK SAYS GLOBALIZATION IS OVER - HERE’S WHAT IT

MEANS FOR MARKETS

BlackRock founder Larry Fink declared that the Russia-Ukraine war is bringing the era of globalization to an end, but investors should keep in mind that the global economy and the financial system can’t turn on a dime, analysts say.

“There is a lot of talk about countries going back to local production and the era of globalization and long overseas supply chains is over,” said Chris Rupkey, chief economist at FWDBONDS, in a note following Thursday’s U.S. data showing a fall in first-time jobless benefit claims to their lowest since 1968. “But that economic model has one gigantic stumbling block in the U.S.A. because there is no one to work the factories to produce the goods here on American soil.”

So what is Fink, one of the founders of the world’s largest investment management firm, Blackrock BLK, +0.37%, with $10 trillion under management, talking about when he talks about the end of globalization?

In his annual investor letter, Fink said he remains a believer in the benefits of globalization: “Access to global capital enables companies to fund growth, countries to increase economic development, and more people to experience financial well-being. But the Russian invasion of Ukraine has put an end to the globalization we have experienced over the last three decades,” he wrote.

Sanctions imposed by the U.S., E.U. and allies have largely expelled Russia from the global financial system while numerous

Western companies have left or suspended operations in the country as punishment for its invasion of Ukraine. The “economic war” shows what can be achieved when companies, supported by their stakeholders, unite in response to violence and aggression, Fink said.

“Russia’s aggression in Ukraine and its subsequent decoupling from the global economy is going to prompt companies and governments world-wide to re-evaluate their dependencies and reanalyze their manufacturing and assembly footprints — something that Covid had already spurred many to start doing,” Fink said.

Indeed, talk of such decoupling first gathered momentum as the administration of former U.S. President Donald fought a trade war with China, a trend Fink had highlighted in previous letters. If globalization is poised to

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LARRY FINK unwind, some analysts say, it makes sense to look at homegrown investments, which for U.S. investors would include companies whose revenues come overwhelmingly from domestic sales and whose assets are primarily U.S.-based.

It also makes sense to expect more upward pressure on inflation as shorter supply chains raise costs.

Some expectations around deglobalization may not stand up to reality though.

After all, what happens if in a couple of years a firm’s competitor goes back to doing business with people around the world and can beat it on price? “Do you go back to the old model? It’s not an easy competitive point of view,” said Ed Keon, chief investment strategist at QMA. Competitive forces are likely to keep “at least a substantial degree of globalization going” despite near-term crosscurrents, he said.

In the short run, the simplest trade this year has been to look at areas that have seen underinvestment for years, including energy

and materials infrastructure, he said.

“Until that is reversed or we have embraced noncarbon sources until they displace the need for carbon, it seems quite likely this commodity rally might have some legs,” Keon said, which speaks in favor of investing in commodities and commodity producers.

It’s been a wild ride for commodity markets since Russia’s February 24 invasion of Ukraine. Both West Texas Intermediate crude, the U.S. benchmark, and Brent crude, the global benchmark, remain well above $100 a barrel. The energy stock sector, up 42.25% year to date, is the top gainer by far among the S&P 500 index’s 11 sectors.

U.S. stocks overall have stumbled to start 2022, but have bounced back from the lows.

Investors continued to shake off war-related jitters and took in stride signals from Federal Reserve officials, including Chairman Jerome Powell, who left open the door to boosting interest rates by more than 25 basis points, or a quarter percentage point, at future meetings.

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DEGLOBALIZATION

CHANGING PATTERNS The economic globalization seen since the end of the Cold War is coming to a close, which relied heavily on the interconnectedness of national economies for cross-border movement of goods, services, technology, and capital. Protectionism and selfreliance have stepped in over the last few years, replacing free trade agreements and the promotion of economic liberalization. What started off as trade wars and increasing tariffs has morphed into an outright rejection of the complex multinational supply chain, with pandemic restrictions exacerbating supply shortages and now the war in Ukraine endangering food and energy security.

Economist Adam Posen, President of the Peterson Institute: "It now seems likely that the world economy really will split into blocs, each attempting to insulate itself from and then diminish the influence of the other. With less economic interconnectedness, the world will see lower trend growth and less innovation.

Domestic incumbent companies and industries will have more power to demand special protections. Altogether, the real returns on investments made by households and corporations will go down."

Atlanta Fed President Raphael Bostic: "The tragic war in eastern Europe will further

momentum toward reorienting production and supply networks away from pure cost minimization and toward resilience and risk tolerance. Supply chain disruptions [also] caused by the coronavirus pandemic prompted business leaders to start diversifying supplier locations and firms, increasing inventories, and bringing production closer to final markets to maximize reliability. Think of it as a shift to just-in-case inventories from justin-time."

Oaktree Capital's Howard Marks: "The availability of ever-cheaper goods like cars, appliances and furniture produced abroad was a major contributor to the benign U.S. inflation picture in this quarter-century. On the other hand, offshoring also led to the elimination of millions of U.S. jobs, the hollowing out of the manufacturing regions and middle class of our country, and most likely the weakening of private-sector labor unions. The recognition of these negative aspects of globalization has now caused the pendulum to swing back toward local sourcing. Rather than the cheapest, easiest and greenest sources, there'll probably be more of a premium put on the safest and surest."

BlackRock CEO Larry Fink: "The Russian invasion of Ukraine has put an end to the globalization we have experienced over the last three decades. We had already seen connectivity between nations, companies and even people strained by two years of the pandemic. It has left many communities and people feeling isolated and looking inward. I believe this has exacerbated the polarization and extremist behavior we are seeing across society today."

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Food concerns As wheat and corn futures continue to surge, and fertilizer prices ride the commodity boom, some investors are reaping big gains. Compared with the nearly 6% YTD loss of the S&P 500, shares of the top three U.S.-listed fertilizer producers are having a great year. Mosaic (NYSE:MOS) is up a staggering 70%, CF Industries (NYSE:CF) is ahead by 50%, while Nutrien (NYSE:NTR) is up 40% - and the first quarter is not even finished yet.

Not all is well: The fertilizer shortage comes at a time when Northern Hemisphere producers are preparing for spring planting, according to Ben Maddox, Director of Farm Operations for AcreTrader. That could reduce crop yields across the board, with some farmers not even able to get their hands on fertilizer. Supply shortages continue for ingredients like nitrogen, phosphate and potash, while the crisis in Ukraine is compounding the problem, throwing a wrench into global food supply. "With regards to food shortages, it's going to be real," President Biden declared after meeting with NATO allies in Brussels, adding that Russia and Ukraine are the breadbasket of Europe. "The price of these sanctions is not just imposed on Russia, it is imposed on an awful lot of countries as well, including European countries and the U.S." Biden also related that the G7 had discussions on ways to "increase and disseminate more rapidly" grain from America and Canada, while European nations were urged to end limitations on sending food abroad.

Outlook: "This is a really big deal, because when that volume of calories comes out of the food chain, it triggers other things. Not only hunger, but unrest," AGCO (NYSE:AGCO) CEO Eric Hansotia told CNBC. "The last time we had this kind of disruption, it was one of the major triggers for the Arab Spring, and it's because a lot of this food goes to areas like North Africa, the Middle East, or places where the cost of food is a large portion of the income of that population."

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DEGLOBALIZATION

HOW RUSSIAN SANCTIONS COULD SPEED UP THE CORROSION OF GLOBALIZATION The Russian invasion of Ukraine and the sanctions placed on Russia by the West are putting supplies of steel, palladium and grain at risk, as well as setting back global aviation and adding to the chaos of the shipping industry. What does that mean for the global economic system?

Adam Posen, president of the Peterson Institute for International Economics, spoke with Kai Ryssdal about his Foreign Affairs piece on how Russia’s war in Ukraine could accelerate what he says is the already corroding state of globalization. The following is an edited transcript of their conversation.

Kai Ryssdal: Do me a favor, would you and give me the thumbnail sketch of globalization as you see it before the Russian invasion of Ukraine?

Adam Posen: Yeah, before the Russian invasion of Ukraine, for the last several years, globalization has been what I call “corroding,” as opposed to say, the height of globalization — which I would put around 2000, when everything was sort of open to everybody. And I think there’s two things behind it.

Ryssdal: I was just going to ask you, give me a couple of instances. What’s going on that globalization — which has been the economic force, as you say, in the last two decades — has now started to corrode?

Posen: I think there are two major forces.

One is in the U.S., Kai. For 20 years, there’s been a lot of anti-globalization politics. And so we were becoming more and more unwelcoming to immigrants, doing fewer trade deals. The other thing, which is widely

recognized, is China decided to pursue its own path, but tried to do so while still part of the global economy. And that presented a lot of challenges for people, for good reason.

Ryssdal: OK, then we have the Russian invasion of Ukraine — which, to be clear, you point out was the ethically, morally and just in every single way, right thing to sanction Russia about and try to exclude them from large parts of the global economy — but you say will make that corrosion of globalization worse. How? Posen: Right. In my view, the corrosion gets accelerated. Because first you have a bunch of countries, including China, watching what the U.S. and its allies are doing to the Russian economy and basically saying, “All your assets are worthless because we’re not going to let you buy anything with them. You’re not going to get access to all the organizations and all the financial networks and even technology.” That’s really scary for people. And even if the rest of the world says, “It’s justified in this case,” what happens when [former President Donald] Trump, or for that matter [President Joe] Biden, says, “You know, I don’t like you, your regime.

I’m going to go after you”?

A second thing that goes on is that people have been worried a lot over the last few years, for good reason, about supply chains. And one

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reason you’re worried about supply chains is interruptions because of earthquakes or storms. But another reason you’re worried is about geopolitical risk. And so I may have to build redundancies, essentially pay for expensive insurance, so that I can get these goods or make these production decisions someplace that’s geopolitically safe. And so those two factors, those are going to drive further the corrosion of globalization.

Ryssdal: What though, Adam, are the costs of that corrosion? Because if I am trying to get by, whether in this economy or another one, going to work, raising my kids, paying my mortgage, doing my job, how does that impact me?

Posen: Oh, it’s the right question, obviously.

First off, people are seeing more inflation because of the energy disruption. But over the medium term, meaning two, three, four, five years out, what we’re going to see is less variety of goods. And I don’t mean just how many cereal boxes, I mean, like, what kinds of cars, what kinds of communication equipment.

You’re going to see more expensive products, because even if companies and governments are rational to build and relocate these resilient connections — or “bring stuff home” as President Biden sometimes says — that’s just going to raise prices.

A third thing that happens is in a world that’s more divided and more politically uncertain, you end up trapping people’s savings. The American savings or the European savings get allocated around the world, and that helps even the average saver. So run that in reverse: We’re scared of putting money into China, we’re not allowed to put money into Russia. That’s going to drive down the return savers get, and it’s going to reduce diversification. So you’re more at risk.

Ryssdal: Let me ask you the geopolitical question here, because you’ve got a great line.

And I’m going to quote you back to myself, you know, President Biden has gotten a lot of praise from many quarters, for leading the allies in Europe, who, you know, can be a fractious bunch, to generally stick together to put the sanctions into place. But one of the things you say is that one of the corrosions, I guess, that might come out of this is that other countries might fear being subjected to Washington’s economic power. And here’s your quote, “now that it [Washington] is re-enamored with its apparent power.” So this is, at least in part, about what the Americans are doing.

Posen: Yeah. The economic realities are if we decide you’re a national security threat or we just don’t like you, we can cut you out of the financial system for decades like we did Cuba, Venezuela, North Korea, Iran. And now we’re even willing to do it to a nuclear power that exports energy, like Russia. People are going to say, “Well, I have to protect against that. I can’t count on that.” And I think that’s going to have a chilling effect, frankly, on growth in the developing countries.

Ryssdal: We have learned over the past month that peace in Europe, even though we had it for 75, 80 years, is not a sure thing. We thought globalization was a sure thing. And now you make the point that maybe it’s not. Is this corrosion a sure thing? Or can what’s happening that you describe be reversed?

Posen: I think at a minimum, it can be offset.

So I think the biggest thing is to build on the alliances that came together against the Russian invasion, strengthen the integration of our economies so you get some scale, some freedom, some diversification. And that also has the benefit of putting more competition within our world.

So I think it’s important to create a market of the democracies as far as we can get it, as deep as we can get it, and it’s got to be people and ideas as well as just stuff.

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DEGLOBALIZATION

THE FUTURE OF THE WORLD ECONOMY IS DEGLOBALIZATION If you are a globalist — someone who believes humanity can best thrive with the abundant flow of goods, ideas and people across international borders — it has been a dark decade. And getting darker.

Driving the news The list of affronts to a vision of liberal internationalism keeps getting longer. Xi and Putin. Brexit and Trump. Bolsonaro and Erdoğan and Orbán. Pandemic-closed borders, and now war in Eastern Europe.

Why it matters As countries feel a greater need to become more self-reliant, that means tossing out some of the benefits of interdependence — which could shape the world economy of the 2020s and beyond.

It is the "corrosion of globalization" as Adam

Posen, president of the Peterson Institute for International Economics, puts it in a humdinger of an essay in Foreign Affairs.

"It now seems likely that the world economy really will split into blocs," Posen writes, "each attempting to insulate itself from and then diminish the influence of the other."

"With less economic interconnectedness, the world will see lower trend growth and less innovation," he continues. "Domestic incumbent companies and industries will have more power to demand special protections. Altogether, the real returns on investments made by households and corporations will go down."

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Flashback For years now, companies with complex multinational supply chains have grappled with unexpected costs. First there were the Trump tariffs, applied to different lists of products and import sources with little warning.

The pandemic, with its lockdowns and extreme travel restrictions, were even more disruptive, as the continued shortages at car dealers and on U.S. store shelves confirm.

Now, the price of oil and agricultural commodities has soared, and with Russia cut off from the world economy, there is the prospect of sustained shortages of crucial industrial materials including nickel, palladium and neon.

This is forcing businesses to shift from an emphasis on "just-in-time" to "just-in-case," as Atlanta Fed president Raphael Bostic said in a speech this week. That is, they are increasingly willing to sacrifice efficiency for reliability.

Leading investors are coming to the same view. BlackRock chief Larry Fink writes in a new letter to shareholders that the Ukraine war "has put an end to the globalization" experienced in recent decades. Howard Marks, of Oaktree Capital, writes in a new investor letter that this era of globalization has been a boon for global GDP, but that the swing away from it may "improve importers' security," and "increase the competitiveness of onshore producers and the number of domestic manufacturing jobs."

The bottom line The global economy of the 2020s is looking quite different from the world of the previous three decades — in ways that we're only starting to understand but could have profound implications for macroeconomic policy.

For all the difficulties that faced economic policy in the 2010s, there was a saving grace.

The twin problems that faced the U.S. and other advanced nations — too-high unemployment and too-low inflation — had the same solution: more

stimulus. But that era might be over. Mark Carney, former governor of both the Bank of England and the Bank of Canada argues that forces including the breakdown of globalization mean new, less appealing, tradeoffs.

State of play If Carney is right, interest rates and inflation will be persistently higher in the decade ahead than we're used to — and current policymakers haven't adjusted yet.

The big picture: When demand collapses in the economy — say, because a financial crisis rips through — it tends to bring down both inflation and employment at the same time. As a result, stimulus helps on both frontiers at once.

Indeed, according to the dominant central bank models, the same policies should generate both full employment and steady 2% inflation.

Economists call this "the divine coincidence."

But when the problem is a shock to the supply side of the economy — say, a pandemic messes with global supply chains — more stimulus meant to help put people to work tends to also worsen inflation. That's the world we're living in right now. "Just as globalization was deflationary, its unwinding will be inflationary," Carney said in a speech at the National Association for Business Economics. Climate adaptation over the coming decade will also influence inflation and interest rates, he argued. Investment in energy infrastructure will need to rise in the neighborhood of two percentage points of global GDP per year through 2050 to prevent the most severe implications of climate change, according to IEA estimates Carney cited. This will increase inflation in the near-term, he argued, and increase the long-term neutral interest rate.

"The economic environment is now very different from that which reigned since the global financial crisis," Carney said. "Deficient demand and divine coincidence are out, trade-off inducing supply shocks and malign coincidence are in."

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CYBERSECURITY

GOOGLE’S $5.4 BILLION ACQUISITION MORE THAN DOUBLES GAFAM 2021 CYBERSECURITY SPEND Tech giants Google, Amazon, Facebook, Apple, and Microsoft (GAFAM) have been spending heavily to fortify their systems against cyber exploits. In 2021 the quintet spent $2.4B in fending off cyber attacks. And as per a recent tradingplatforms.com analysis, expenditure is about to more than double. This follows Google’s acquisition of cybersecurity outfit Mandiant for a whopping $5.4B. It is no secret that the GAFAM firms are prime targets for hackers. That’s because they’re treasure troves of information on individuals and organizations. So given the frequency and severity of cyber-attacks recently, they’ve been increasing their investment in cybersecurity. “Cyber threats have grown by leaps and bounds as businesses embrace remote working,” says tradingplatforms.com’s Edith Reads.

She adds, “ So far, the GAFAM firms have succeeded in fending off most cyber attacks. But the dangers still lurk and grow larger every day. If anything, the recent SolarWinds attack shows how vulnerable organizations can be to a complex cyberattack. That informs Google’s push.”

The SolarWinds’ influence Google’s acquisition of Mandiant is a shot in the arm for the company. Before, it had lagged behind Microsoft and Amazon in cloud-based cybersecurity solutions.

This acquisition will enable Google to reduce its time to respond to and contain cyber threats.

Again, it bridges the divide between it and others in the provision of cloud-based cybersecurity solutions.

There is no doubt that last year’s SolarWinds’ breach influenced Alphabet’s move. Experts believe that Mandiat’s acquisition will spur other firms to increase their security spending as well.

They say big tech companies will continue investing in cybersecurity solutions to safeguard their systems first. But they’ll also be looking to recoup some of these costs by selling their solutions externally.

The SolarWinds hack dealt a bodyblow to corporations that rely on third-party vendors for their IT systems. It exposed critical weaknesses in third -party IT systems that many considered safe against cyber exploits. Besides significant financial loss, it damaged the reputations of companies.

Mandiat will enhance Google’s competitiveness Mandiant is a renowned threat intelligence provider that tracks nefarious cyber activity by state actors, individuals, and gangs. It has a close working relationship with the American government. It played a critical role in investigations on the Colonial Pipeline hack. In 2020 it exposed the SolarWinds hack, a cyber espionage campaign by Russia on the US. As stated earlier, this acquisition will enable Google to match Microsoft’s cloud services capabilities. The latter has an established threat intelligence unit. Moreover, it acquired several cyber security outfits such as ReFirm labs and RiskIQ. Analysts insist that the acquisition is defensive and strategic as it’ll help Google compete better against Microsoft Azure and AWS. Google provides its cloud software customers with cyber security services. These include Chronicle and Security Command Center. The tools assist users in detecting and defending themselves from cyber risks.

F LEADERS’2022 INANCIAL

Hall of Fame

AWARDS in partnership with

Business Arena Magazine is proud to announce the 2022 edition of its annual event dedicated to the leaders in the financial market:

FINANCIAL LEADERS’ HALL OF FAME 2022

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

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

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

Speaking in the opening of last year's gala, Cristian Sporis, Head of Corporate Banking Division, Raiffeisen Bank Romania, noted that Romania's banks are on a par with their European Union peers

in terms of digitalization, but the competition is strong. "There are other players in the market who are creating certain trends and accelerating this transformation," he said, mentioning fintechs and marketplace platforms for small businesses. "These things are possible due to digitalization, and they are going to put pressure on the banking system. We need to find a way and reinvent ourselves so that we can remain an integral part of this value chain, financing production from end to end," Sporis added.

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

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

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

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AI

TENS OF TRILLIONS OF DOLLARS TO BE UNLOCKED BY BLOCKCHAIN’S CAPITAL REVOLUTION Tens of trillions of dollars in private assets are to be unlocked in the next decade as inthe-know investors pile into a radical technology revolution driven by blockchain, artificial intelligence (AI) and the internet of things (IoT).

This is to be achieved through the groundbreaking concept of “tokenisation of investments,” says Nigel Green, CEO of deVere Group, one of the world’s largest financial advisory, asset management and fintech organisations, which has partnered with Oryzon, a new venture capital fund that invests in the next big opportunities in cutting edge technologies.

Oryzon venture partner, Dr Abdalla Kablan, an award-winning serial tech entrepreneur, investor and globally renowned academic, explains: “We’re at a tipping point. Soon blockchain will develop much more sophisticated architectures, decentralized ledger technologies that will not only allow for storage but the processing too. IoT devices will collect data and will exhibit intelligent behaviour.

In turn, this will enhance the capabilities of data acquisition, administration, and processing beyond what we currently have, meaning that AI systems are going to improve to an unimaginable level. This convergence will disrupt all industries from financial services to healthcare, real estate, biotech and education, amongst many others.”

Nigel Green continues: “Clearly, investors will not want to miss out on the potentially enormous rewards from a once-in-a generation technology revolution. This is why we created this new fund, which is run by a team of some of the most renowned names in technology and finance. Together we identify opportunities by analysing trends, predicting the right winners, and investing in them.”

The game-changing CEO goes on to say: “There are hundreds of trillions of dollars in private assets that are locked into companies awaiting their ‘big break’ or IPO. This has made these opportunities highly illiquid and only available to an exclusive club of ultra-high net worth investors who can wait to reap the highest returns. However, blockchain technology allows us to now digitalise value through tokenisation, solving this problem of liquidity.

Therefore, investors can enter and exit their VC investments whenever they want, and this will unlock tens of trillions of dollars.”

When investing with Oryzon, the investors also buy a token that is representative of their investment in the Oryzon Fund. This token is called the Oryzon Token or ORX. This approach means that for the first time ever, venture capital investors are able to cash out on – or double down - on their investment immediately by selling their Oryzon Token on the Oryzon Token Marketplace. Dr Kablan concludes: “This is a moment of critical mass in terms of these truly ground-breaking technologies. The radical tech shake-up that’s on the cusp of dominating almost all sectors will change how business is done forever.” Nigel Green concludes: “This gives investors unprecedented opportunities, especially as tokenisation allows us to solve the illiquidity challenge traditionally associated with this type of investment.

Experienced investors will know that the coming together of blockchain and artificial intelligence is an inflection point in history.”

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SALES & REVENUE

THE COMBINED SALES OF GLOBAL FORTUNE500 EXCEEDS ONE-THIRD OF GLOBAL GDP 2021 was a challenging year for Global 500 companies. These recorded a dip in their revenues, as shown in a data presentation

by BanklessTimes.com. The website has revealed that the firms’ joint income came to $31.7 Trillion (T). That was a 4.8 % decline from their 2020 revenues of $33.3T.

BY ELIAH KEER Analysts have pinned that drop on the ravages of the COVID-19 pandemic. The scourge caused a slowdown in the global economy, impacting productivity and hence sales. Notwithstanding the decline, the firms still managed to raise a third of the world’s GDP. That’s quite a feat considering the difficult environment they were operating in.

AMERICAN DOMINANCE BanklessTimes' presentation of the top 10 global firms by revenue reveals a dominance

by American companies. These scooped five out of the ten slots. Leading the pack was Walmart. The giant retailer earned over $559 billion to retain a stranglehold of the top position that it has held since 2017.

E-commerce giant Amazon follows in the third overall spot with some $386B. Tech giant Apple took the sixth slot with returns of around $274B. Meanwhile, health providers CVs Health and UnitedHealth Group came in seventh and eighth, respectively. While the

former recorded nearly $269B in revenues, the latter’s stood at $257B. Chinese firms were not left out in the race to the top. These took up three of the top 10 global spots. China’s electricity utility company State Grid just about pipped Amazon to second place with revenues of $386.6B. China National Petroleum ($283.9B), and Sinopec Group ($283.7B) came in fourth and fifth.

And closing the top ten list were Japanese and German automakers Toyota and Volkswagen (VW). Toyota recorded returns of $256.7B to take the ninth position on the log.

That left VW to round up the list with an income of $253.9B.

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WINNERS AND LOSERS Several firms registered impressive returns despite the overall decline in the Global 500’s revenue. Amazon was 2021’s biggest winner. The company grew its revenues by nearly 38%. That growth netted it a profit of $21B, in itself a jump of 84% from 2020. The company owes its impressive performance to an uptick in online purchases after the COVID-19 containment restrictions kicked in.

Other firms with healthy profits were Toyota, UnitedHealth Group and CVS Health.

The carmaker made a profit of $21B off of a 13% increase in profitability. Likewise,

UnitedHealth and CVS Health made gains of $15B and $7B from upswings of 11% and 8%, respectively.

Conversely, VW and State Grid recorded significant dents in their profitability. VW took the worst hit, losing revenues by 10%. That saw its profits dip by 35% to stand at $10B. The German automaker attributes that performance COVID-19 induced supply bottlenecks. On its part, The Chinese power provider reported a 30% slump in the metric.

Its counterpart Sinopec Group also registered a 9% fall in its margins. It's possible that both firms’ declining fortunes arose from reduced demand for energy by manufacturers.

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A B e veevnetnst

MOST ADMIRED BUSINESS

A W ARDS Gala2022 Enjoy the Quality

WOMEN

* * * * *

Admire the Value

in partnership with

Business Arena recognizes the creativity and leadership of women in the workplace and their vital contribution to the success of business and banking activities throughout Romania.

The event recognizes the efforts and achievements of the ladies who have gained prominent roles in various sectors of the economy and contributed to the development of Romania’s economy throughout the years.

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

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.

The Most Admired Business Women Awards Gala 2022 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

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TOP BRAND Luxury maintains its trendsetting status and aspirational image with consumers. At the same time, the industry's evolution and rapid growth generates a democratization of luxury.

The democratization of luxury can be seen in two ways: one in which luxury goods feel more attainable to a larger population, and another in which luxury brands have more accessible channels with which to reach new customers.

In spite of recent difficulties, market experts show an enduring optimism about the industry’s resilience. The current hurdles are seen as an opportunity for businesses to re-invent themselves and adapt to a changing world.

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UPDATE YOUR SPRING WARDROBE

photos: Tibi Vîntur

HOW TO FEEL CLASSY AND COMFY FOR EASTER!

Change formality for style!

Instead of wearing the classic dark suit, go for a business smart look. Forget about tie or bow-tie and use trousers and blazer, in matching colors. You can go safe with a lightweight gray suit, that’s less formal but still elegant. For that easygoing look, pair it with a polo instead of a shirt, and use Brogue boots and sunglasses for a touch of personality.

Also, you can switch your blazer to a vest in contrast with your pants and shirt. The vest is an item that emphasizes the elegance of a look, so it can handle by itself the dress code of a special event such as Easter. Wearing it together with a suit would be too much in this case, but wearing it just over a shirt would be perfect and appropriate for spring.

Of course, black remains the option for going to church. You can go for dark jeans or chinos, and a dark jacket, that’s safer and nicer than bright colors for a church look.

Dressing like a gentleman must be a part of your DNA, but a piece of knowledge will always help you to discover your style and build your outfit according to different occasions. Spring is already here and you definitely need to reconfigure your wardrobe for the warm season. With Easter knocking at your door, you must find a way to balance your look with colors and comfortable cuts in order to feel classy and comfy at the festive dinner or lunch.

OUTFIT: TRENDS BY ADINA BUZATU

Dare to be creative while keeping sobriety!

The business-smart look is not difficult to achieve. Combine dark colors pants with a colored blazer or dinner jacket (in the evening).

You should go for rich and refined shades like deep green, blue, and burgundy. Leave the first button of your white shirt unbuttoned to add a touch of laidback style to your outfit. It’s important to keep the shoes in the same shade as your pants in order to create a lean and long silhouette. A belt is no longer an option of style so don’t bother to find the right one. A lightweight sweater with khaki pants or dress pants is also a nice choice for a business casual look that will make you feel confident and comfortable.

Color up your suit!

Suits are an appropriate option to wear for this Easter. But use one in a spring shade like

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light or electric blue, beige, olive, or other pastels you love. You can wear them either with a white shirt or with a printed one, for a more creative look. If you want to go further for Easter lunch, go for white pants, a fun printed shirt, and a colored vest. You can find all the pieces you need for your Easter outfit at TRENDS by Adina Buzatu’s shop.

Laidback doesn’t mean out of style Even if you go for a family brunch, don’t relax too much your outfit. You can have a comfortable, yet stylish approach with smart-casual attire. Chinos are the perfect pants for this occasion, but you can go for dark jeans, as well.

Wear them with dark Chelsea boots instead of white sneakers if you want to add that refined note. A collared shirt and a cardigan are super versatile button-down options that you can use this time in full comfort and style.

Smart accessories for the final touch Accessories are the key to a look with personality. They can change your entire outfit in an instant. If you want to look different on Easter, dare to change the ordinary ones for some special items. For instance, wear an ascot instead of a tie, a silk pocket square in a bright print, and braces instead of a belt. You can

create a polished look with a white shirt and pants, a double-breasted navy blazer, and a printed silk scarf and bow tie. And remember, if you go for braces, only the wide ones, of good quality, are appropriate to wear with a suit.

Choose one pair of premium quality silk braces, like those of the Albert Thurston brand. You can find a selection of different prints in TRENDS by Adina Buzatu’s shop, where you can, also, create your entire outfit for Easter according to your personality, style, and type of event.

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

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54

SUPERCARS

ASTON MARTIN N VALHALLA VALHALLA MODEL GETS GETS PRODUCTION MODEL

HYBRID V8 WITH 937 HP Aston Martin announced it was reviving the iconic Vanquish nameplate in 2019. Details regarding the next-gen supercar have since been few and far between, but we now have some powerful new info about the mill.

The lean, mean, mid-engined machine, which sits below the Valhalla and the Valkyrie in the Aston Martin lineup, was originally

supposed to be powered by an in-house 4.0 liter V-6. But it appears that plan has changed.

It’ll now be equipped with Mercedes-AMG’s menacing twin-turbo V-8, just like its two highpowered brethren, Autocar reports. (Aston Martin did not immediately respond to a request for comment from Robb Report regarding the powertrain.

The Valhalla’s hardcore V-8 comes from the Mercedes-AMG GT Black Series, whereas the Vanquish’s V-8 will likely be in the same state

AM is targeting a Nürburgring lap time of just 6 minutes and 30 seconds.

of tune as the Mercedes-AMG GT 63 S E Performance. That’s nothing to sneeze at, though. The combustion engine is said to churn out about 630 hp. he V-8 will be the beating heart of a new plug-in hybrid setup that will also comprise an electric motor. Altogether, you can expect a total output of 831 horses in the new Vanquish. By comparison, the Valhalla is good for 937 hp while the Valkyrie produces a staggering 1,160 horses. The company has

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already confirmed hybridization across all of its platforms by 2025. The new hybrid, which certainly rivals today’s most powerful supercars for outright potency, will be competing against the Ferrari 296 GTB and McLaren Artura.

Aston Martin will compete against itself, too.

The road-ready Vanquish will likely spur on a track-only twin geared toward one-make global racing series. Who knows, even more horsepower could be on the cards.

The mill might not be the only change to the

Vanquish, either. Aston Martin’s chairman Lawrence Stroll told Autocar the model will likely get a fresh name in place of the Vanquish Vision. Furthermore, the current bodywork will probably need to be tweaked to support a bigger engine.

Unfortunately, it’s going to be a while until we see the finished product. The Vanquish’s official reveal is scheduled to take place late next year, with customer deliveries slated for 2025.

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UPCOMING EV MODELS

ROLLS-ROYCE’S FIRST ALL-ELECTRIC CAR, THE SPECTRE,

TAKES A BIG STEP TOWARDS ITS 2022 DEBUT The battery-powered coupé will make its debut later this year.

A little sub-zero weather won’t be slowing down Rolls-Royce’s new Spectre.

The storied British marque’s first allelectric car has just completed coldweather testing. The important milestone puts the battery-powered coupé on pace to debut before the end of 2022, and go on sale next year.

The automaker announced on that the weather-specific testing, a standard autoindustry practice, concluded in Arjeplog, Sweden, which is located just 34 miles from the Arctic Circle. There, the car endured -40˚C temperature and completed the first quarter of its 1.55 million-mile testing program, which is meant to simulate 400 years of use. There’s a reason why over 60 percent of the cars the brand has built are still on the road. he latest Spectre announcement was accompanied by new set of images of the car. The photos show the camouflaged EV,

which the brand calls the “definitive spiritual successor” to the Phantom, maneuvering through icy terrain. The two-door is built upon the marque’s all-aluminum spaceframe architecture and is said to be so generously proportioned that it’s been referred to as an “electric super coupé.” It will feature split lamps that harken back to its Goodwood roots and a fastback silhouette that should improve aerodynamics. The two-door will also ride on a set of 23-inch wheels, marking the first time since 1926 that one of the brand’s coupés has driven on tires that size.

We’ll have to wait until the car makes its

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debut to learn the vital engineering details, like how powerful it will be and how far it can travel on a single charge. For now, Rolls-Royce says the Spectre will be its most connected vehicle ever. Its “decentralized intelligence” will be able to harmonize 141,200 user interactions, 1,000 electronically controlled functions and more than 25,000 sub functions. The Phantom, for context, had 51,000 interactions, 456 functions and 647 sub functions, according to the automaker.

“The announcement of every new RollsRoyce motor car carries a great weight of expectation, but Spectre is unquestionably the most

anticipated product in the marque’s modern history,” CEO Torsten Müller-Ötvös said in a statement. “This is because it is much more than a product. It is a symbol for our bright, bold electric future, and it represents a seismic shift in our powertrain technology.”

Rolls-Royce is tidying up in preparation for the Spectre’s arrival. Last week, MüllerÖtvös confirmed that the automaker had closed the order books for the Wraith and Dawn globally, after having done so in the US in 2021. That means its lineup will shrink from five to three models before the launch of the brand’s first EV.

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UPCOMING EV MODELS

LOTUS’S FIRST SUV, THE ALL-ELECTRIC

The marque's new EV will have a driving range well over 300 miles.

ELETRE, WILL BRING 600 HP OF GRUNT Electrification isn’t the only new thing Lotus is trying.

The British marque unveiled its latest vehicle, an all-electric SUV called the Eletre. The vehicle is a true outlier for the Lotus, but if it can deliver on what’s been promised it will more than live up to the brand’s high-performance reputation.

We may have known it was coming but it really can’t be stressed how much of a departure the Eletre is for Lotus. The automaker’s vehicles tend to be two things: sports cars and two-seaters (although a few have featured four).

The Eletre is neither of these things, but Lotus’s largest vehicle—it’s 16.7 feet long, 6.6 feet wide and 5.4 feet tall, according to the brand—still has the kind of flamboyant design enthusiasts expect from the brand.

It may not be as aggressive as the company’s first EV, the Evija hypercar, but it’s bold, with a heavily sculpted body that looks athletic and fast. It features a dramatic lighting package

from front to back, multiple active aero elements, including a three-position rear spoiler, and sits relatively low to the ground on a massive set of 23-inch rims. It chunkier than its predecessors, but like Lamborghini’s Urus, it’s an SUV that will actually turn heads.

The Eletre’s cabin is spacious, something that’s rarely, if ever, been said of a Lotus interior. Up front, you’ll find a relatively spartan leather and microfiber-covered dashboard broken up only by a digital gauge cluster behind the squared-off steering wheel and a large, 15.1-inch OLED infotainment screen positioned above the center console. There you’ll also find two sports seats covered in advanced woolblend fabric. In the back, you’ll have your pick of two seats or a three-person bench. Other creature comforts include LED backlighting, a 15-speaker surround sound audio system (you can upgrade to 23 speakers) and an optional panoramic glass sunroof.

Lotus is calling the Eletre a “hyper-SUV” and

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it’s easy to see why. In addition to its stylish design it also looks as if it’ll be a powerhouse.

We’ll have to wait for the full engineering details, but it’s built on the brand’s proprietary Electric Premium Architecture platform, which combines an aluminum and high tensile steel chassis with an 800-volt battery pack, with more than 100kWh of battery capacity. There will eventually be three versions available, each of which will feature two motors, one on the front axle, another on the back, according to the brand.

The least powerful variant will produce at least 600 hp, accelerate from zero to 62 mph in less than three seconds and top out at 161 mph.

Adaptive dampers and an air suspension will come standard.

Just as impressive as the Eletre’s baseline power figures is a driving range of 373 miles (although, as Car and Driver points out, that figure would likely be closer to 315 using the EPA’s rigid testing process). When you do need to top up the battery, Lotus says you’ll be able to add 248 miles of range in just 20 minutes

when connected to a DC fast charger. It still takes less time to fill a vehicle with gas, but that short of a charging time could prove to be a real

difference maker, especially on long trips.

Although it has the kind of flamboyant design you’d expect of a concept, Lotus plans to put the Eletre into production—and relatively soon.

The brand expects to start selling its hyper-SUV by the middle of next year. Pricing has yet to be confirmed, but there are reports that it’ll start at around $100,000.

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JEWELRY

IOR GRAND SOIR JARDINS DE NUIT N°9

The Dior Grand Soir watch collection unites the Maison's refined and sophisticated expression of creativity and sense of color with classic, finely crafted watchmaking features such as oscillating weights, bezels, calibers and dials.

36 mm case in white gold with a pavé of snow-set, brilliant-cut diamonds, bezel in aventurine, case back in aventurine and white gold gradient with time-adjustment corrector.

Water resistant up to 50 meters (164 feet).

Black dial adorned with gold leaves and

flowers set with brilliant-cut, pillow-cut, marquisecut and trillion-cut diamonds, brilliant-cut yellow sapphires and tsavorite garnets, and a cabochoncut white opal. Embellished with scarab wings, and faceted hour and minute hands in white gold.

Black velvet strap featuring a pin buckle in white gold with a pavé of snow-set, brilliant-cut diamonds.

Additional strap in black satin.

Off-center quartz movement at 12 o'clock Functions: Hours – Minutes

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DIOR GRAND SOIR JARDINS DE NUIT N°15 The Dior Grand Soir watch collection unites the Maison's refined and sophisticated expression of creativity and sense of color with classic, finely crafted watchmaking features such as oscillating weights, bezels, calibers and dials.

Pink gold with a pavé of snow-set, brilliant-cut diamonds, bezel in aragonite, case back in pink gold gradient aragonite with time-adjustment corrector.

Water resistant up to 50 meters (164 feet).

Black dial adorned with gold leaves and flowers set with brilliantcut and triangle-cut diamonds, brilliant-cut and marquise-cut pink sapphires, brilliant-cut and trillion-cut yellow sapphires, marquise-cut red spinels, pear-cut and marquise-cut rubies, trillion-cut Malaya garnets and spessartite, and pillow-cut Mexican opals, and inlaid with scarab wings, faceted hour and minute hands in pink gold.

Black velvet strap featuring a pin buckle in pink gold with a pavé of snow-set, brilliant-cut diamonds.

Additional strap in black satin.

Off-center quartz movement at 6 o'clock Functions: Hours – Minutes

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HAUTE HORLOGERIE

LAUREATO 38MM SUMMER EDITION GIALLO LUCE Laureato, a question of taste and choice The Laureato is a historical watch in the sense that it asserted a design combining sportiness with a sense of chic back in the 1970s, when elegance had thus far been the predominant factor in women’s watches. There is nothing ordinary about wearing a watch that played such a groundbreaking role. The current Laureato also stems from a wager on the future. A limited series in tribute to the 225th anniversary of the Maison. In the wake of this successful edition, GirardPerregaux decided to give this contemporary watch with its excellent timekeeping precision the place it deserved within its collections. The adventure thus began… all over again.

Laureato 38mm Summer Edition

The Laureato continues to extend its sphere of influence by connecting with women for whom style expresses an art of living. Pride of place is given to the sheer joy of being alive and of proclaiming that happiness, as well as to energygiving pop-inspired variations and to the unmistakable graphic appeal embodied by the Laureato.

Today, being oneself is a real art. It is a matter of taking perfectly measured decisions aimed at displaying various facets of one’s personality, including a touch of boldness, creativity and sometimes also a rebellious streak. In other words, showcasing individuality. Clothes, shoes, jewellery and a handbag all contribute to the persona, while a watch has a place of its own. An essential object rather than a mere fashion accessory, it literally says it all at first glance, before revealing subtler nuances as time goes by.

Pastels give way to vibrant and daring shades of blue, purple and yellow. For this model with its generously sized case, Girard-Perregaux opts for a manga-style ultra-colour vibe. To be worn however one wishes, as an offbeat touch with an understated outfit, or as part of a full-on look for those wishing to shattering ordinary style conventions.

The dial with its Clou de Paris hobnail pattern and painted finish strikes a bold contrast with the famous octagonal bezel, which on this model is set with 56 brilliant-cut diamonds. The movement powering the Laureato 38mm Summer Edition is a perfect illustration of the expertise that has forged the renown of the Manufacture. The in-house selfwinding GP03300 movement drives the hours, minutes, central seconds and date functions, as well as ensuring a 46-hour power reserve. It is tailor-made for the stainless steel case, much like a Haute Couture creation. The mainplate is circular grained and adorned with a Côtes de Genève pattern also engraved on the oscillating weight, along with a satin finish, bevelled chamfers and blued screws.

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REINE DE NAPLES 8905 - LOVE TAKES FLIGHT As Valentine's Day approaches, Breguet has attired the Reine de Naples in celestial poetry. The white mother-of-pearl dial was specially chosen for its appearance featuring fluffy “clouds” that appear to float between the moon-phase display and the hours, minutes and seconds subdials.

An emblem of feminine watchmaking, the Reine de Naples collection draws its inspiration from the first wristwatch in history, delivered in 1812 to Napoleon's sister, the elegant Caroline Murat, Queen of Naples. Today, this timepiece that originally featured an oblong shape and has now turned oval, is an undisputedly iconic women's watch. Each model in the contemporary collection, whether gemset, beaded or lacquered, is an ode to femininity. This new interpretation from Breguet is no exception to the rule. Issued on the occasion of Valentine’s Day, this timepiece exudes an appealing allure graced with subtle romantic references.

The dial is adorned with an airy sky whose white mother-of-pearl shimmer is sprinkled with "clouds". At 12 o'clock, the trail of love appears in red to indicate the 45-hour power reserve. As if suspended from the clouds, the finely hammered moon-phase display is composed of white gold. Located in the lower part of the dial, the chapter ring is set with hand-guilloché natural white mother-of-pearl, as is the centre of the small seconds display. The Breguet open-tipped blued steel hands indicate the hours and minutes.

Each second is priceless in the realm of love, which is why they are marked by a red-lacquered double heart. To complete these poetic touches, the white gold bezel and case flange are sprinkled with a sparkling shower of 128 diamonds. A symbol of passionate love, red also appears on the crown, which is set with a ruby. This white gold timepiece elegantly plays with the immaculate contrasts of the sky and the touches of garnet, expressing the fire of love. To finish off in style, its blazing red alligator leather strap is fitted with a white gold triple-blade folding clasp set with 28 diamonds.

This model is issued in a 28-piece limited edition.

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PANERAI INTRODUCES THE LUMINOR GOLDTECH CALENDARIO PERPETUO PAM01269 Enhancing the high complications roster.

Continuing its evolution from military watchmaker to one with a broader and civilian repertoire, Panerai introduces the Luminor Goldtech Calendario Perpetuo PAM01269.

AVAILABILITY: ONLY AT PANERAI BOUTIQUES PRICE: €78,000 INCLUDING TAXES

A variant of the minimalist Luminor perpetual calendar first unveiled last year, the PAM1269 has a dial made of tinted sapphire that reveals the concentric calendar discs underneath. And like many recent Panerai limited editions, the PAM 1269 is accompanied by an “experience”, in this case a trip to Florence (plus an NFT).

Initial thoughts If I were to just skim through the new watch releases of the year, I would have missed this Panerai because at a distance, it looks like any other Panerai. But it is more than that.

Apart from being just a smartly conceived perpetual calendar, the watch includes an allexpenses-paid trip to Florence curated by Panerai. Given Panerai’s historical connections to Florence and its status as a leading luxury watchmaker, I imagine the trip would be filled with experiences impossible to obtain otherwise.

Putting the trip aside, the watch itself is a marvel of clarity – a lot of information is displayed on the front and back in a manner as minimal as possible. The comprehensive display includes a second time zone and four-digit year indicator. Notably, the indicators on the front are also linear – everything is contained on a horizontal axis from nine to three o’clock, giving

it a clean, balanced aesthetic.

The PAM1269 costs twice as much as last year’s perpetual calendar in gold, a disparity that’s primarily due to the Florence trip, although the fact that last year’s model sold out easily no doubt contributed to the higher price.

Concentric rings The sapphire dial displays the inner workings of the calendar, revealing the twin discs for the day and date display that are framed in gold. All of the hour markers are applied, and naturally executed in the traditional Panerai style with Arabic numerals at the quarters and batons in between.

Within is the automatic P.4100 that runs on energy stored in the two barrels wound by a 22k micro-rotor. The movement beats at 4 Hz and has a three-day power reserve. The three-quarter plate of the movement includes displays for the month, year, leap year, and power reserve, which helps explain the concise dial on the front.

Each owner of the 33 examples of the PAM1269 will be invited to visit Florence and the surrounding Tuscan countryside. It will be a trip through the brand’s heritage – Panerai was founded in the city – and also an immersive experience of the city’s food, culture, and history.

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THE JAEGER-LECOULTRE MASTER GRANDE TRADITION CALIBRE 948 Worldtime display driven by an orbital flying tourbillon.

Horology is a child of astronomy. Ever since man wondered about the passage of time, the schedule of our lives has been shaped by celestial events. Time was measured by the sun, the moon and the stars… On the occasion of Watches and Wonders 2022, JaegerLeCoultre embarks on a Stellar Odyssey.

Among the watches inspired by this underlying theme, the Master Grande Tradition Calibre 948 is a spectacular worldtimer tourbillon combining a remarkable movement with exceptional crafts.

The first thing to catch your eye with the Jaeger-LeCoultre Master Grande Tradition Calibre 948 is its unique worldtime tourbillon movement. The calibre 948 – seen previously in the Geophysic Tourbillon Universal Time with minor differences such as a different balance wheel – is what the Grande Maison calls a Universal Tourbillon. It combines the traditional rotation of the tourbillon on itself every minute with an orbital rotation around the dial every day.

Therefore, the flying tourbillon also rotates around the watch once every day, tracing the 24 hours and thus reproducing the rotation of the earth on its own axis. This daily revolution of the tourbillon (together with the centre map and its city ring) also allows the watch to display the time for all 24 time zones.

The world time indication is straightforward and user-friendly. The 24-hour ring at the periphery of the dial is stationary – so as the map and city ring rotates, you can tell the time for every time zones. The watch is set via the crown with a first position to set the universal time and minutes (for instance align London to the current GMT time) and a second position (which moves only the hour hand, in one-hour jumps forwards or backwards) to adjust your local time zone. The Master Grande Tradition Calibre 948 dial brings together remarkable

artisanal techniques to create a striking three-dimensional design. The map itself is created on a domed skeletonized structure formed by the longitude and latitude lines. This 25.5mm openworked canvas combines miniature painting with champlevé enamel. Indeed, the map representing the Northern hemisphere is Champlevé enamel. The technique consists in carving out the pattern into the structure. The hollow areas are then filled with enamel with several layers in succession and fired at high temperatures after each layer. The design is then enhanced with refined hand-painted details. This domed map is adjusted onto a base plate representing the oceans consisting of blue lacquer applied on a wavy guilloche pattern. Altogether, each dial requires 70 hours of patient work. At the periphery of the rotating map, the fixed hour ring features applied numeral and indexes. The minute track is laser engraved on a blue lacquer ring.

THE JAEGERLECOULTRE MASTER GRANDE TRADITION CALIBRE 948 IS WORN ON AN ALLIGATOR STRAP FITTED WITH A FOLDING BUCKLE. IT IS RELEASED IN A LIMITED EDITION OF 20 PIECES.

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INGRID JEWELRY BY AUGUSTIN

Ingrid Jewelry is a family business, specializing in creating handmade, designer jewelry rather than Silver ring with golden mass-production bezel and citrine stone items. Its focus lies on creating interesting collections, inspired by various historical periods and cultures, nature or geometry.

Handmade gold and copper African mask, using riveting techniques

Ammolite

Gold ring with opal

Gold rings with black pearl

Rose gold ring with pearl

Handmade silver pendant with ammolite tinlay

Gold pendant with semiprecious stone and secret message inside (gold)

White gold cufflinks

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Ingrid Jewelry's main jeweler is Izabela Smada, but every piece of jewelry created here is overseen by designer Augustin Matei (Augustin Watches).

Gold minimalist pendant

Handmade gold cross with jad stone

Silver ring with yellow sapphire stone

Silver cross with opal stone Gold ring with black pearl

Silver ring with gold elements and semiprecio us stone

Gold ring (Family) Copper and silver Viking bracelet

Gold and meteorite pendant

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COMPUTER LOVE:

A HIGH TECH REDESIGN FOR A CLASSIC SUZUKI TIME IS THE enemy if you’re a one-man-band working in the custom scene. Builds can drag on and on, especially if you’re working part-time or after hours. Weeks turn into months, and even years.

So Sean Pelletier, the man behind The Motoworks in Rochester, NY, set himself a challenge. “How quickly can you build a very custom, very high quality bike?” he says. “The idea was to eliminate (or minimize) the amount of wasted time and labor that often goes into a custom.”

Sean started out by choosing a mid-70s GT380 as a donor, and picking ‘performance/sport’ as the style of the build. He roughed out some basic geometry, then figured out what he wanted the Zook to look like.

Sean called in Denver-based industrial designer Jeremy Lacy for help with the design. “Working with the mechanical parameters that we’d established, he helped us to figure out the bodywork,” says Sean.

“Once his sketches were finalized, the mechanical design of the bike could be finished and the bodywork designed in 3D—turning the 2D sketches into workable 3D parts.”

The design of this GT380 was broken down to a series of parts that could be machined or welded; the build itself involved putting the pieces together like a kit. “Since the pieces were all carefully designed in CAD, no time was wasted in reworking things once they were built,” says Sean.

“For example, we didn’t have to worry about the front fender hitting the fairing because we already moved the parts around in CAD to make sure there was no interference anywhere within the range of travel.”

The two-stroke triple has been rebuilt with mild tuning, and modifications to the port timing and compression ratio. Sean carefully measured and modeled the engine in MOTA, an engine simulation program designed for two strokes. “It can also be used to simulate changes in exhaust design, to maximize power,” says Sean.

The engine was completed with custom covers: “Just dress up parts, but they look nice with the rest of the bike.” The new exhaust has stainless steel expansion chambers that were designed using MOTA, laser cut and welded, then ceramic coated in satin black.

Incredibly, Sean also built a new frame for the GT380, using DOM (drawn over mandrel) steel tube, with integrated fuel and oil tanks. It’s hooked up to GSX-R600 forks that have been revalved and resprung to suit bike and rider. The back end is suspended by an Öhlins shock, slotted into a custom linkage.

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TESLA MOTORBIKE

ELECTRIC MOTORCYCLE OF THE FUTURE?

Tesla has dominated the luxury end of the Electric Vehicle market; the featurepacked Model Y due in late 2020 includes a ludicrous array of sensors to create a car that is intelligent and fully equipped to be the figurehead for self-driving vehicles. Whilst brands like Zero have led the charge on two-wheels, the question over whether a Tesla Motorbike is on the horizon remains a hot topic of conversation.

In 2018, designer Jans Slapins revealed his concept for the Tesla Model M, a 15Kw Electric Motorbike in the aesthetic style of the Tesla brand. Whilst the Model M is a concept rather than a reality; Slapins gives us an insight into the style of Electric Motorcycle we might start seeing on production lines.

The Tesla Model M concept includes a number of features that manufacturers will take note of and includes four riding modes; Eco, Standard, Race & Cruise. We know from the ‘Insane Mode’ installed on the Tesla Model S would suggest that any Electric Motorbike from Tesla would be insanely powerful and probably possess acceleration currently unmatched in the industry. Features on Slapins’s Model M Motorcycle include Lithium-ion Batteries, Storage space in place of a fuel tank, and carbon fiber wheels.

Not to be outdone, James Gawley has also produced his concept for the Tesla Model M Electric Motorcycle. Gawley’s concept introduces familiar Tesla lines to a Sports Bike aesthetic.

Gawley’s concept for a touch-screen dashboard is incredible, however, in reality, this seems like a huge amount of information to consume whilst riding. I love the idea of seeing more electric motorbikes with built-in navigation and diagnostics. This Model M concept also introduces connectivity through a smart-phone app; a feature of the popular Niu NGT electric moped.

I love the level of detail in Gawley’s Tesla Model M concept; his design document explains his innovative approach to footpegs, kickstand, charging and a fascinating concept for rear-facing cameras. Which Model M concept do you prefer?

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70

WELLNESS

YOUR FIVE GOLDEN RULES FOR PERFECT HEALTH & FITNESS IN SPRING

The attitude towards the health priority, the wellness and fitness needs, the pain and the gain, the lifestyle that you are after, the me-time that you are willing to give yourself, these are all factors that can change your life to the better. Find out the five golden tips that will benefit your physical and mental health this spring and come to the nearest World Class club for more.

1. There are no quick fixes, shortcuts or magic potions when it comes to weight loss, health or fitness! Important outcomes like these take time and commitment. Sure, you can speed up the process, avoid mistakes, and maximize your work with the help of health & fitness experts. Hard work and discipline is key. And there is something else. Following a personalized program, according to your fitness level, which is your ability to perform in the three key areas of fitness: relative strength, muscular endurance, and power.

Booking your first personal training session at your favourite club may be the best decision you will make this spring for a healthier you!

2. Scales are not a good way to track fat loss!

Unless you have more than 10-15kg to lose, scales are useless. They do not differentiate between muscle and fat. It is best to use a body composition monitor which monitors weight but also body fat percentage, body water percentage, muscle mass, physique rating, basal metabolic rate (BMR), daily caloric intake (DCI), metabolic age, bone mass, and visceral fat. To put all this information to good use, it is ideal to have a body assessment together with a personal trainer and start a personalized health & fitness plan from there.

3. Pain is good, but it's not a sign of effectiveness! The ideal situation is when you end your training session feeling energized and smiling, instead of exhausted and crying. Everyone reacts differently post-workout depending on their body's inflammatory response. If you choose to work out with a trainer or joining group fitness classes, you will minimize risks of injury or severe post-workout pain. You will also receive valuable tips on your nutrition to maximize the effects of

your fitness routine.

4. Don't believe that all you need to be healthy and fit is training! This is the reason why World Class, the largest health & fitness in Romania, does not promote fitness alone, but healthy living! Because there is an entire universe of healthy habits that converge to what you can call optimal health: regular physical exercise, healthy and well-balanced nutrition, good sleep and rest, a positive mindset, good hydration. A good trainer for you needs to be a good expert in both health & fitness.

5. Make physical exercise as common as brushing your teeth!

Just like the case of teeth brushing, if you exercise intensively for three days and then nothing, this won’t be of much help to you! You need to make exercise your routine because exercise adds life to your years and years to your life! It is a proven fact that it makes your heart stronger and prevents a lot of the most prevalent chronic diseases: cardio-vascular, diabetes and obesity. If you only have 30 minutes per day it is still ok, but never give up or postpone. Postponing physical exercise is very much like willingly postponing health.

For a personalized health & fitness program, for amazingly energizing group fitness classes, check out the training schedule at the nearest World Class club. Together with your club membership you also get unlimited access to the swimming pool. If you download the World Class app from Google Play or App Store you will discover there all the details you need.

Meanwhile, take health in your own hands and make it a day to day priority. Exercise is Medicine!

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AWARDS for

EXCELLENCE

2022

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With its strong tradition in creating new opportunities for the business community to express fresh views and ideas, and in recognizing business success and outstanding achievements, Business Arena is pleased to announce the upcoming Awards for Excellence.

Guests gather to celebrate excellence in business, sports, culture, and community, enjoying the company of friends and industry peers.

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

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

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Business Arena operates with a combination of permanent and freelance staff and has a wide network of writers, salespeople, conference moderators and digital experts with experience in many different markets which it calls upon when required.

Business Arena Magazine is a monthly English-language business magazine published

by Business Arena Publishing Group SRL. The magazine was launched in October 2009, and, since then, it has gained reputation as a valuable source of information and analyses for business people and professionals, offering a wide range of exclusive interviews, feature stories and reports, market analyses and special columns.

With over 20 years of experience in the business media segment, Business Arena Magazine’s team of dedicated journalists, graphic design artists, sales and marketing professionals count on innovation, responsibility and product quality as long-term strategies for development.

PUBLISHER: MADRIO PAUL }IC| & COSMIN STÂNGACIU COSMIN STÂNGACIU, GENERAL MANAGER tel: 0755.274.125 - cosmin.stangaciu@business-arena.ro.

news@business-arena.ro, cristian.cojanu@business-arena.ro, paul.madrio@business-arena.ro Reproducerea sau folosirea, f\r\ permisiune, a con]inutului grafic [i editorial sunt interzise.

Not\: Prestige Page = Advertorial “Editorul Revistei BAM [i Colectivul redac]ional al acesteia, nu sunt r\spunz\tori pentru con]inutul articolelor redactate de catre jurnalisti independen]i (free-lanceri) [i publicate `n spa]iul pus la dispozi]ie `n paginile revistei, `n aceste cazuri r\spunderea revenind `n exclusivitate autorului articolului.”

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