The Weekly Review - USA & Europe, from TTIP to Apple
Today, LSM Mag inaugurates a brand new formula: the weekly review. Each monday, from September to June, you will be given the opportunity to read our insight about two subject coming from the past week newspapers. The first one will be about something that happened in Belgium while the other will discuss about an International information. Last point: this weekly publication will be writen in english in order to reflect the worldwide echo of the Louvain School of Management and give to foreign students the opportunity to read and share the work of the LSM Mag. We wish you a pleasant reading.
Belgian review - Demonstration aginst TTIP
Last week the city of Brussels has been invaded. Neither by a warlike enemy nor unhealthy american products - not yet. Nearly 9.000 opponents of the TTIP (Transatlantic Trade Partnership) have filled the streets of the European capital on tuesday September 20 to protest against the widely disparaged treaty.
Despite still being negotiated between Europe and USA, the free trade agreement fails to charms people. Indeed, several elements of the work-in-progress document have been leaked month after month: lower custom fees, lower regulatory barrier and lower administrative complexity, raising the fear of some people to see welfare being unravelled. Demonstrators also claim that the TTIP directly threatens the european health and environment because of the lowering of sanitary norms in order to be adjusted on the american level. Hormone-treated meat, chlorine-washed chicken or GMO are representative symbols of how evil is the american culture of food.
Beyond all of these things, there’s a legitime worrying about multinational companies taking power over national governments, via the highly criticised Investor-State Dispute Settlement, giving to the investor the right to sue a country’s government. Opponents are afraid of a dramatic decline of public institutions and national sovereignty. Interestingly the same haunt was already used by euro-sceptical movements, with the Brexit showing the awareness of people and the power of these groups. TTIP protesters, by using fairly the same arguments, could success in their goal of burying the agreement.
Finally, what’s really representative of the strong opposition is that demonstrations occur both in Europe and in the United States. Indeed, the desired regulatory lowering would also affect Uncle Sam’s country. For example, the european free Healthcare sector is making people completely mad in USA, fearing the invasion of prototype and unapproved drugs - because the american drug regulatory agency is far more exigent than the european one. From an american’s point of view, evil lives in Europe.
This strong opposition to the TTIP from people of both parties is making the negotiation very difficult and sensible. A lot of concessions are asked from european countries and USA. Definitely, when - and if - the deal is finally closed, what’ll remain from the “free trade” original philosophy ?
International review - Apple moves on luxury supercar ?
Wednesday, the Financial Times announced that the computer giant Apple was in talk with the british luxury supercar maker and Formula One team, McLaren, about a potential acquisition. Despite the information has been officially denied by McLaren Technology Group, it is a new sign that the company founded by Steve Jobs is looking at the automotive industry. As Apple has been working on self-driving cars for a few years, this rumor reflates the dream of some people so see a kind of “iCar” one day. Apple has no less than $200 billions available in cash and an admitted will to get into the tech cars market.
The reported project of the Cupertino based company was either a full takeover or a strategic investment in the carmaker, valued at circa $1.5 billion and owned by british businessman Ron Denis - who is also CEO and founder of McLaren Technology Group - and TAG Group. The interest of this move lies in the advanced technological infrastructure setted up by the tech subsidiary - McLaren Applied Technology - along with the high quality know-how of a supercar constructor and legendary F1 team.
Moreover, the company originally named by new-zealand founder and former driver Bruce McLaren, has a strong reputation among race passionates but remains fairly unknown of the general audience. This is a favourable argument as an acquisition of legendary manufacturers like Ferrari or Lamborghini would be very costly and more sensitive in the aspect of “cultural” identity. Here, the Woking based firm is more confidential, yet extremely qualitative.
As a modern F1 jewel, technology and luxury is written in the team’s DNA. Apple is an american technological, luxurious giant. Then, one could say “there’s a match”.
Nevertheless, as said before, McLaren has formally stated that it was “not in discussion with Apple about any potential investment” and precised the nature of its business tend to keep such information highly secret.
For those who are not intimate with F1 rhetoric, this is a denial that don’t really deny. Indeed, not in discussion right now does not mean that there were no discussion formerly. Also, the statement about strong secrecy could confirm that even if there has been talks that did not succeed, the company wouldn’t have confess it. Actually, in F1 nothing is neither true nor false before it becomes officially true.
That’s it.