Bloomberg: Inside Pictet, the Secretive Swiss Bank for the World’s Richest People

Interviews with a dozen people familiar with Pictet’s private-wealth arm reveal a business at a crossroads, confronted with the reality that, in order to stay ahead, Switzerland’s preeminent private bank must adapt. That means embracing more risk and changing the client relationship — away from the concierge-like approach that endured for generations toward a more transactional model. [...]

The challenge facing the partners is that in order to grow, they need to aggressively target Asia, the epicenter of wealth creation. But that requires the embrace of new — and potentially riskier — investment assets, chief among them structured products, which use derivatives to track the performance of an underlying asset. [...]

Suddenly, Pictet was forced to reckon with its haphazard organization that often put personal relationships before a systematic structure. Until then, it wasn’t unusual for bankers to act independently with no uniform approach to clients, for example sending out correspondence using their own fonts and letterheads. Among historic quirks, some employees didn’t have a formal work contract — joining the bank was a social compact with a benevolent patriarchy holding a protective hand over its flock.

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Social Europe: Tourism in Europe: a new model

Many skilled workers are leaving the industry, which risks emerging from the shutdown only to face the challenge of inadequate staffing. In France alone, nearly 100,000 employees are expected to be missing when business reopens. In the United Kingdom, one in ten hospitality workers are believed to have left in the last year. In countries, such as Spain, which rely extensively on tourism, temporary employment schemes have helped avert massive job destruction. [...]

EFFAT has asked EU member states to place hospitality tourism at the heart of their National Recovery and Resilience Programmes—to secure maximum jobs, support the sector and strive for swift, co-ordinated and safe travel. We call on the European Commission to assess these plans not just with an administrative mindset but with a strategic, 360-degree view, which recognises the recovery of tourism as functional to the revival of other sectors (including agriculture, food and beverages) and the economy at large.[...]

We must strive for a new model based on decent and secure employment, investment in human resources and reinvestment of profits, to ensure sustainable growth, visitor loyalty, diversification of the offer and a reduction of seasonality. We should promote proximity-based and domestic tourism—especially in countries, regions and cities where the sector upholds many jobs and businesses, offering a principal avenue for recovery, allied to lower environmental impact and support for communities and workers.

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New Statesman: The rise of the new Toryism

In the multiparty electoral systems of Europe, formerly dominant conservative parties have yielded ground to the right. Everywhere politics is trying to deal with what Tony Judt called “one long scream of resentment” and everywhere the pivotal question is immigration. The reverberations began in February 2000 when Jorg Haider’s far-right Freedom Party of Austria entered the government. Its nasty rallying cry has become sadly common: to be against Überfremdung (over-foreignisation). Today, the National Front has replaced the Republicans as the repository of the right in France.[...]

The Conservative Party is not far behind. Go back to the 1951 UK general election, won by Winston Churchill. If at the time you had known the income and the occupational status of a voter, you would have been able to predict who they voted for. By 2019 the predictive power of social class had disappeared entirely. Somewhere hidden in his surface clowning, Boris Johnson has absorbed this point and responded to it. To anyone schooled in the more doctrinal left, the British Conservative Party can seem versatile to the point of emptiness. It is a party that has gone from a split over free trade in 1846 to late-Victorian imperial preference, to tariff protectionism under Stanley Baldwin, to rampant free-market capitalism under Margaret Thatcher, to a departure from the single market she helped to create. [...]

Johnson’s brand of conservatism might be best understood as an English Gaullism. Serge Bernstein’s definition of Gaullism – neither left nor right, affirming sovereignty over the nostrums of class, a strong state and exceptionalism in foreign policy – sounds much like Johnson’s peculiar adaptation of conservatism. The closest to the usual tradition you can get is to say he is responding to circumstances that, as Edmund Burke wrote in Reflections on the Revolution in France, “give in reality to every political principle its distinguishing colour and discriminating effect”.

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PolyMatter: Singapore: The World's Only Successful Dictatorship?

 

National Public Radio: California City

 Deep in the Mojave Desert, there is a little town with a big name and a bizarre history: California City. For decades, real estate developers have sold a dream here: if you buy land now, you'll be rich one day. Thousands of people bought this dream. Many were young couples and hard-working immigrants looking to build a better future. But much of the land they bought is nearly worthless. In this new podcast from LAist Studios, host Emily Guerin tells a story of money, power and deception.

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The Red Line: Belarus: The Next Crimea?

 Since 1994 Belarus has been ruled by Alexander Lukashenko, often dubbed Europe's last dictator. 2020 though brought a brand new wave of protests and Lukashenko's position in power has become somewhat shaky, and he is beginning to outlive his usefulness to the Kremlin. Will the Kremlin fight to keep him there, or place someone else on the throne? Is there a future for Belarus in the West?

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New Statesman: The Fateful Chancellor: What the end of the Merkel era means for the world

 Yet Merkel is also fiendishly hard to define. She is a Protestant woman scientist from the former East Germany in a political family (the CDU and its Bavarian ally the Christian Social Union or CSU) dominated by male Catholic lawyers from West Germany. She has been hailed as a progressive icon and defender of liberal democracy, yet is also a paragon of small-c conservatism and has been frustratingly reluctant to stand up to autocracy. She is a global power broker in an age of swaggering strongmen, yet is unflashy in her personality and habits; she lives in a modest flat and can be seen doing her own grocery shopping in a central Berlin supermarket. She has called multiculturalism “a grand delusion” yet is perhaps best known for admitting one million mostly Middle Eastern migrants at the peak of the migration crisis in 2015. She is profoundly interested in history yet travels light, ideologically and strategically, in her own style of leadership. [...]

Merkel is also fascinated by the 19th century and how a seemingly sophisticated world collapsed into the carnage of the First World War. The 60th birthday lecture was delivered by Jürgen Osterhammel, author of The Transformation of the World (2009), a history of that first age of globalisation and the uncontrollable, disruptive effects it unleashed. In 2018 she urged her ministers to read The Sleepwalkers (2012), Christopher Clark’s account of what Merkel herself called “the violent juggernaut of 1914”. “I am afraid that open societies in the post-Cold War world are more in danger than we realise,” she once said. [...]

That method has three main elements. The first is strategic inoffensiveness. Though wryly funny in private (her impressions of other world leaders are the stuff of Berlin political legend), Merkel’s public demeanour is usually bland to a fault. Where others lead from the podium, with soaring rhetoric and sharp dividing lines, her hedged and vague use of language can verge on the anaesthetic. Critics have called this “asymmetrical demobilisation”, the practice of diffusing conflicts and denying opponents substantial grievances with which to mobilise their voters. Merkel herself has acknowledged the advantages of avoiding drama (“in calmness lies power” is one of her mantras) and has achieved a sort of apolitical status. “She’s a bit like the Queen of England,” says Khuê Pham, an essayist for Die Zeit newspaper: “Her political style is ‘you know me, you can trust that I am going to do the right thing’, not a discussion about what she wants to do.” [...]

“Her biggest single historical failure was the eurozone crisis in 2010,” says Garton Ash. “She had the chance to convince Germans of the case to make the eurozone fit for the 21st century, but she did not use it. It was one of those moments where the chancellor has an extraordinary power to lead and she missed that chance and let the narrative of the idle, corrupt south preying on the virtuous north become established in German public opinion and politics. It took ten years and a pandemic to overcome that.” When bailouts became imperative to pull the eurozone back from the brink she presented them not so much as desirable but merely alternativlos (“without alternative”), a term with which she has become associated.

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PolyMatter: India's Privately Owned City

 

The Atlantic: India Is What Happens When Rich People Do Nothing

 Laying the blame for India’s coronavirus disaster—hundreds of thousands of new cases and thousands of deaths each day, both of which are certainly a huge underestimate—at Modi’s feet would be easy. Certainly, much can be attributed to his government: After the virus landed on India’s shores, he imposed a brutal shutdown—one that largely hurt the poorest and most vulnerable—without consulting the nation’s top scientists, yet did not use the time to build up the country’s health-care infrastructure; his administration offered little in the way of support for those who lost their job or income as a result of restrictions; and rather than taking advantage of low case counts in prior months, his government offered an air of triumphalism, allowing enormous Hindu religious festivals and crowded sporting competitions to go ahead. Modi’s ruling Hindu-nationalist party has been accused of hoarding lifesaving drugs, and has held mass election rallies cum super-spreader events that would make Donald Trump blush. (This is to say nothing of how the authorities have used the pandemic to invoke a draconian colonial-era law to restrict freedoms, while Modi’s government has at various points blamed minority groups for outbreaks, arrested questioning journalists, and, most recently, demanded that social-media platforms including Facebook and Twitter delete posts critical of the authorities, ostensibly as part of the fight against the virus.) [...]

India’s economic liberalization in the ’90s brought with it a rapid expansion of the private health-care industry, a shift that ultimately created a system of medical apartheid: World-class private hospitals catered to wealthy Indians and medical tourists from abroad; state-run facilities were for the poor. Those with money were able to purchase the best available care (or, in the case of the absolute richest, flee to safety in private jets), while elsewhere the country’s health-care infrastructure was held together with duct tape. The Indians who bought their way to a healthier life did not, or chose not to, see the widening gulf. Today, they are clutching their pearls as their loved ones fail to get ambulances, doctors, medicine, and oxygen. [...]

Many things went wrong then, and many people were responsible: Safety systems that could have slowed down or partially contained the leak were all out of operation at the time of the accident; gauges measuring temperature and pressure in various parts of the plant, including the crucial gas-storage tanks, were so notoriously unreliable that workers ignored early signs of trouble; the cooling unit—necessary to keep chemicals at low temperatures—had been shut off; the flare tower, designed to burn off methyl isocyanate escaping from the gas scrubber, required new piping.What has happened since is perhaps more instructive. Indians have by and large forgotten the tragedy. The people of Bhopal have been left to deal with its fallout. Richer Indians have never had to visit the city, so they have ignored it. Yet their apathy signals a choice, a decision to look the other way as their fellow Indians suffer.

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CityLab: More Americans Are Leaving Cities, But Don’t Call It an Urban Exodus

 A year into the Covid-19 pandemic, after much speculation about emptied downtowns and the prospect of remote work, the clearest picture yet is emerging about how people moved. There is no urban exodus; perhaps it’s more of an urban shuffle. Despite talk of mass moves to Florida and Texas, data shows most people who did move stayed close to where they came from—although Sun Belt regions that were popular even before the pandemic did see gains.

Across the U.S., the number of people making moves that they defined as permanent was up a modest 3% between March 2020 and February 2021. Even with that increase, national migration rates are likely still at historic lows. But zoom in to a few of America’s densest and most expensive metro regions and the picture is more dramatic, with the percentage increase in moves well into the double digits.

Those Americans who did move accelerated a trend that predates the pandemic: Dense core counties of major U.S. metro areas saw a net decrease in flow into the city, while other suburbs and some smaller cities saw net gains. In other words, people moved outward. Outward to the suburbs of their own core metro area, but also farther out, to satellite cities or even other major urban centers that might still give people proximity to their region. As CityLab contributor Richard Florida has noted, the pandemic compressed into a matter of months moves that might have happened in the next few years anyway. [...]

Even for people who said their moves were permanent, wealth was the dominant explanation for the jump in moves in New York City’s five boroughs. While people across incomes continued to move around as they had before the pandemic, it was higher-income zip codes that saw a sharp change in movement at the height of the pandemic.

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Social Europe: Covid-19 in India—profits before people

 The incomprehensible decision to allow a major Hindu religious festival—the Mahakumbh Mela, held every 12 years—to be brought forward by a full year, on the advice of some astrologers, brought millions from across India to one small area along the Ganges River and contributed to ‘super-spreading’ the disease. Unbelievably, the last major ‘ritual bathing’ goes ahead today! [...]

India is home to the largest vaccine producer in the world and has several other companies capable of producing vaccines. Before the pandemic, 60 per cent of the vaccines used in the developing world for child immunisation were manufactured in India. [...]

Low uptake even among this vulnerable group could have resulted from concerns about the rapid regulatory approval granted to Covaxin, which had not completed Phase III trials. The Indian government also encouraged exports, partly to fulfil commitments by the Serum Institute of India to AstraZeneca and the global COVAX facility—partly to enhance its own standing among developing countries. [...]

The latest sign of this active encouragement of disaster capitalism by the Indian state is even more egregious. In the proposed opening up of vaccination to the 18-45 age group from May 1st, access is to be limited to private hospitals and clinics, and only on payment—with prices ranging from ₹1,200 to ₹2,400 (€13.25-€26.5) per dose! Obviously, the poor will be unable to afford the vaccines, and so the pandemic will rage on, the massive human suffering will continue and countless lives will be lost.

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CityLab: Copenhagen’s New Artificial Island Hits Rough Seas

 This March, the Danish Parliament starts deliberating on a massive engineering project: the construction of a new artificial island called Lynetteholm. If approved, a 1.1 square mile (2.8 square kilometer) land mass will emerge from the harbor waters just north of Copenhagen’s city center; by 2050, it could be built-up with enough homes to house 35,000 people. [...]

On February 22, officials in the Swedish county of Skåne, connected to Copenhagen by the Øresund Bridge, said that they opposed the project because it risked altering ocean currents. “The Øresund is a narrow sound with a very fine environmental balance in its waters, and we need to keep it healthy,” Kristian Wennberg, head of Skåne County’s water services, told CityLab. “There is risk of contamination, and of a reduction of water flow into the straits. The Baltic Sea is already not in the best state and we don’t want the slightest modification.” [...]

Other critics point to a flaw in the model itself. When the city’s first metro line opened in 2007, it exceeded its initial budget by over three times and attracted fewer riders than initially predicted. This left By og Havn saddled with higher-than-expected debts, and thus under ever more pressure to develop its sites for maximum profit. While By og Havn has clarified that its finances are indeed sound and sustainable, the need to keep the financial ball rolling does put pressure on them to find (or create) new land to develop. [...]

Lynetteholm’s environmental impact study failed to allay these fears, critics say, because it looks only at the island’s immediate construction in isolation, without also assessing the potential effects of future harbor tunnel construction, metro expansion and the transferral of water treatment works currently occupying part of the island’s site. So while the tunnel and metro are cited as key reasons for the island’s construction, there is as yet no material to assess their impact. An editorial in the Danish engineering publication Ingeniøren said that preliminary studies for the harbor tunnel and beltway aren’t prepared yet. Danish politicians are eager to fast-track the project, the editorial alleges, because alternative development schemes might “appear less fancy and magnificent in the legacy of former mayors and prime ministers.”

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Social Europe: A rail renaissance for Europe

 The momentum for a European rail renaissance is growing. A recent survey by the European Investment Bank revealed that 74 per cent of respondents intended to fly less frequently for environmental reasons, once restrictions were lifted, and 71 per cent planned to choose trains over planes for short-haul trips.

The rail system is not yet in shape, though. On average, rail accounts for only 8 per cent of passenger transport. The Achilles heel is cross-border rail: the European system is only a patchwork of national systems. Ask anyone who has ever tried to cross several European countries by train.[...]

EU funding makes up an important share of overall transport infrastructure funding and can be a lever for other sources. Yet too much goes into roads and airports, too little into rail. Much even of that is spent on mega-projects with exploding costs, long delays and sometimes only limited European value. The European Court of Auditors cautioned in 2018 that projects were often chosen on a political basis—not sound cost-benefit analysis—and lacked co-ordination across borders.

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Freakonomics: The Downside of Disgust

 It’s a powerful biological response that has preserved our species for millennia. But now it may be keeping us from pursuing strategies that would improve the environment, the economy, even our own health. So is it time to dial down our disgust reflex? You can help fix things — as Stephen Dubner does in this episode — by chowing down on some delicious insects.

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WorldAffairs: Why Farmers are Fighting in Modi's India

 When India’s Prime Minister Narendra Modi introduced a series of agricultural reforms last November, India’s farmers launched what might be the largest protest movement in modern history. An estimated 250 million Indians went on strike in solidarity, and today, tens of thousands of farmers are camped just outside the nation’s capital. Modi’s government has responded by silencing journalists and detaining activists, raising troubling questions about the state of the world’s largest democracy. Then pop star Rihanna tweeted about the protests, causing an international incident, and all hell broke loose. In this episode, we talk with experts and journalists about India’s new agricultural reforms, why farmers don’t like it, and how platforms like Facebook and Twitter are playing a pivotal role in this conflict.

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BBC4 Analysis: Flying Blind

 What do we really know about the policy choices confronting us? Covid-19 has been a brutal lesson in the extent of our ignorance. We face hard decisions, and argue about them ferociously, when in truth we’re often in the dark about their full consequences. But Covid is not unusual in this respect - and we could learn from it. Other areas of life and policy are similarly obscured. Not that we like to admit it. How well, for example, do we know what the economy is up to? Quite possibly not nearly as well as you might think - even to the extent that it’s recently been suggested the first estimates of GDP can’t be sure of telling the difference between boom and bust - the problem really can be that extreme. Some recessions have turned out to be illusions. In this programme Michael Blastland examines our collective ignorance and how it affects policy and debate, asking if public argument needs a lot more humility.

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Vox: How museum gift shops decide what to sell

 Gift shops are like the final exhibit of an art museum. They’re often located toward the exit and are unmissable on your way out the door. Souvenirs inside can range from Vincent Van Gogh socks to giant stuffed soup cans to Mona Lisa rubber ducks. But how do gift shop curators decide what to sell?

Stocking decisions often revolve around how curators want visitors to perceive the art lining museum walls. When you see a certain piece of art on a lot of merchandise, that usually means curators think that artwork is important. And thanks to a psychological phenomenon called the mere-exposure effect, the more you see that art, the more you begin to think it’s important.

Freakonomics: Can I Ask You a Ridiculously Personal Question?

 One reason I love to do what I do is because a). I am curious, which I’m guessing you are as well; but also b). I’m fairly shy — or at least I used to be. Not sure I ever really outgrew it. Shy and curious is a tough combination: there are answers you want to know but you’re not always comfortable asking the questions. These days, the internet is a big help — you can learn a lot from the comfort of your keyboard. But there are still occasions where you really need to ask another human being a question. Sometimes a sensitive question. That’s one reason I became a writer: it gives you permission to ask. [...]

This result may not surprise you. Most of us want other people to like us. And it would seem obvious that we’re more likable if we don’t ask sensitive questions. On the other hand: these were anonymous, virtual conversations; you might think it’d simply be more interesting, more fun, to ask the so-called sensitive questions. But this experiment suggests that most people don’t think that way, or perhaps that we’re so conditioned to not ask sensitive questions that even when allowed, we don’t.

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The Guardian Longreads: Penthouses and poor doors: how Europe's 'biggest regeneration project' fell flat

It has been billed as the world’s first swimming-pool bridge, a dazzling feat of acrylic engineering that will span the 14-metre gap between the two buildings and give residents the feeling of “floating through the air in central London”. But, although he lives in Embassy Gardens, Iqbal and his neighbours will never enjoy the thrill of going for an aerial dip. “We have a front-row seat of the Sky Pool,” he told me. “But the sad thing for us, living in the shared-ownership building, is that we will never have access to it. It’s only there for us to look at, just like the nice lobby, and all of the other facilities for the residents of the private blocks. Nobody expects these amenities for free, but we’re not even given the choice to pay for them.” [...]

The capital is well used to high-rise, high-end totems by now, but VNEB takes the iniquities of the real estate-industrial complex to extremes. It is a place where penthouses with private chapels and running tracks loom above crumbling council estates across the railway line, where scores of flats lie empty, held by secretive shell companies in off-shore tax havens, and where the division between absentee investors and owner-occupiers confined to poor doors could not be more stark. Dogged by allegations of cronyism and gerrymandering, it is the product of politicians in thrall to property developers, driven by a blind faith in the market – even when investors started to realise that they might have bought into a mirage. [...]

In one snapshot, looking at an agency that listed 35 new-build properties for sale during an eight-month period, the constant relisting made it look as if there were in fact 368 properties for sale. Rather than roughly £50m in market value of apartments advertised, the distortion would have made it appear as more than £500m. In another example, a £3.6m flat was re-listed 15 times in six months, making it seem like the average asking price in the area was skyrocketing. The manufactured flurry also gave the impression to potential buyers that flats were “flying off the shelves”, she said, when in fact the developers were struggling to offload them. The reality was that they were selling off homes in bulk at steep discounts to corporate landlords and institutional investors, with prices slashed by up to 38%.

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PolyMatter: Why Statues are North Korea’s Biggest Export