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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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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History Of Ideas — Talking Politics: Shklar on Hypocrisy

 Judith Shklar’s Ordinary Vices (1984) made the case that the worst of all the vices is cruelty. But that meant we needed to be more tolerant of some other common human failings, including snobbery, betrayal and hypocrisy. David explores what she had to say about some of the other authors in this series – including Bentham and Nietzsche – and asks what price we should be willing to pay for putting cruelty first among the vices.

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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: Inside the ‘Tartarian Empire,’ the QAnon of Architecture

For some, it’s too fantastical to believe … or perhaps not fantastical enough. A dedicated group of YouTubers and Reddit posters see the Singer Building and countless other discarded pre-modern beauties and extant Beaux-Arts landmarks as artifacts of a globe-spanning civilization called the Tartarian Empire, which was somehow erased from the history books. Adherents of this theory believe these buildings to be the keys to a hidden past, clandestinely obscured by malevolent actors. [...]

The Tartaria storyline is not directly related to the adrenochrome-harvesting Satanic-pedophile cabal that lies at the heart of QAnon, the unfounded conspiracy theory that crashed into the real world in 2020. But it shares some of what Peter Ditto, a social psychologist at the University of California-Irvine who specializes in conspiracy theories, calls QAnon’s “cafeteria quality:” There’s no overarching narrative or single authorial voice interpreting events. It’s just a gusher of outlandish speculation; adherents can pick and choose which elements they want to sign on to. [...]

The Tartarian milieu is an intensely visual medium, occupied with riffing on photos and maps, picking out apparent inconsistencies and making one-off conjectures instead of weaving together comprehensive timelines. The theory is notably light on reasoning as to why and how the greatest cover-up in history was undertaken, but it does offer a few options for how Tartaria was erased and the great reset propagated. Many say that an apocalyptic mud flood buried its great buildings; some suggest the use of high-tech weaponry to tactically remove Tartarian infrastructure. A consistent theme is that warfare is an often-used pretext to wipe away surviving traces of Tartarian civilization, with the two world wars of the 20th century finishing work that may have begun with Napoleon’s invasion of Russia. [...]

At its core, the theory reflects a fear of how quickly things change. As they look at today’s cityscapes, Tartaria believers see an eerie and alienating place, filled with abstract monoliths that emerged out of nowhere in a brief period of time. They’re skeptical of the rapid rise and development of the U.S., and even more suspicious of how quickly Modernism came to dominate the landscape. One favorite case study, useful for illustrating this aesthetic whiplash, is the grand domed Henry Ives Cobb Chicago Federal Building, built in 1905. Like the Singer Building, it was razed after just 60 years in favor of an icy black Mies van Der Rohe tower. [...]

In fact, the governing ideology of the modern architecture that Tartarians despise was a critique of this system. Modernism argued for an egalitarian architecture that would help break the shackles of the past, rejecting backbreaking representational craftsmanship to honor omnipotent kings and divine beings in favor of simple, universal forms that would leverage restraint and efficacy into a broad uplift for the masses. Minus the weirdest stuff — the global mud flood, the ancient energy weapons, the vanished race of giants — the Tartaria theory is just an extreme form of aesthetic moralism, the idea that traditional architecture styles are inherently good and modern architecture is the product of a degenerate culture.

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BBC4 Analysis: The Fine Art of Decision Making

 Margaret Heffernan explores the fine art of decision making in times of uncertainty. We make decisions all the time which affect our personal lives, but what about the decisions which affect the lives of many others? How do you decide, when the well being of a nation or the success of a company are at stake, but the path is unclear because the risks cannot be quantified? A desire for more data, the temptation to procrastinate, a reluctance to admit mistakes and the outsourcing of decisions to machines can all lead to bad decision making, so what processes and practices, leadership qualities and attitudes of mind can serve as the best guides? Senior politicians, public servants, business people and academics share their insights based on past failures as well as successes, and suggest ways of better decision making in an increasingly uncertain world.

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BBC4 Analysis: Science in the Time of Covid-19

The Covid-19 pandemic has seen the best of science and the worst of science. New vaccines have been produced in less than twelve months. But at the same time we’ve seen evidence exaggerated and undermined, falsified, and flawed. Scientists arguing in public over areas of policy that have reached into all of our lives in an unprecedented way. There has never been so much “science”. But the pandemic has seen science politicised and polarised in ways some of us could never imagine.In this episode of Analysis, Sonia Sodha explores what the pandemic has revealed about the practice of science, and our relationship with it.

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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: Why Putin wants Alexei Navalny dead

 In 2006, a lawyer named Alexei Navalny started a blog where he wrote about corruption in his home country of Russia. It’s the most prominent problem under the regime of Vladimir Putin, who has ruled Russia since 2000. Putin has systematically taken over the country’s independent media, oligarchy, elections, and laws to cement his own power and wield corruption to his advantage.

That’s what Navalny set out to expose. And in 2010, he published a groundbreaking investigation into a state-owned transportation company, Transneft, which was funneling state money into the hands of its executives. The post launched Navalny into politics.

By 2016, he had become the face of Russia’s opposition movement, run for mayor, and was running for president against Putin himself. Navalny was unifying Russia’s opposition like no politician had before. That’s why the Kremlin tried to kill him. Navalny survived the assassination attempt, launching a movement never before seen in Russia.

BBC4 Analysis: Magic Weapons

 There used to be a romantic notion of globalisation that all countries would simply have to get along as we were all so interconnected. Why fight when your interests are aligned? It’s an idea that has made direct military engagement less likely. But something very different has emerged in its place.

We live in a new era of conflict, where states try to achieve their aims through aggressive measures that stay below the threshold of war. This is a strategy of statecraft with a long history, but which has a new inflection in our technologically charged, globalised world.

Now a mix of cyber, corruption and disinformation is employed to mess with adversaries. China’s president, Xi Jinping, has referred to political influence activities as being one of the Chinese Communist Party's 'magic weapons'.

In this edition of Analysis, Peter Pomerantsev looks at how political warfare works in a world where we’re all economically entangled - and what Britain could and should do to adapt.

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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

 

The Guardian: The mystery of the Gatwick drone

 The airport had been closed for 33 hours. More than 1,000 flights had been cancelled, and more than 140,000 passengers affected. “It showed the serious risk of drone intrusion, and how quickly that could bring an airport to its knees,” said John Strickland, an aviation consultant. In total, 170 drone sightings were reported, 115 of which were later deemed “credible” by police. But neither Mitchell, nor any of the news crews camped out for two days, had managed to get a photo or video. Neither had any of the thousands of passengers and airport staff on site; no one who reported a sighting had captured an image on their phone. [...]

Military drones such as the Reaper or the Predator are capable of flying hundreds of kilometres and staying in the air for more than 24 hours at a stretch. But most drones do not have anything approaching this capability: they vary in size, but most are, even with their arms extended, no bigger than a laptop. They struggle to fly in wind or rain, and have limited battery life. Top-tier consumer drones can travel for up to five miles, but have a maximum flight time of about 30 minutes. Custom-built drones might manage up to a couple of hours, but not much more: larger batteries add weight, which uses up more battery. “If someone were flying drones for hours, they’d need a carload of batteries,” Ryan told me. [...]

When Hudson first heard about Gatwick, “I thought this was some absolute idiot and I wanted them caught.” But then he realised “the basic facts don’t add up”. Sussex police had mentioned lights in the corroborated sightings. But if someone had planned the attack, to the extent that they had procured scores of batteries and hacked the drone’s in-built geofencing software – which uses GPS to stop drones from flying into restricted zones such as airports or prisons – then why would they leave the lights on? “You’d disable them,” said Hudson. [...]

Hudson looked at publicly available information: photographs taken during the incident, and statements by Sussex police. Since then, he has identified inconsistencies that he believes undermine the claim that there were drones at Gatwick. Soon after we first spoke, Hudson sent me a long email, including a timeline of tweets and photographs posted during the incident, highlighting contradictions. (“Did he send you four A4 pages with closely typed text and diagrams?” another drone-flyer joked. “It’s one of Ian’s pet subjects.”) The photos he included showed military counter-drone systems being set up on 20 December, the second day of the shutdown – and tweets by Sussex police mentioning sightings after this point, right into the early hours of 21 December. This included one cluster by “credible” witnesses – airport staff and police officers.

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BBC4 Thinking Allowed: Disinformation

 Laurie Taylor talks to Annie Kelly, a researcher of the Digital Far Right, about the QAnon conspiracy theory and why it has attracted a striking number of female followers, many of whom are mothers. She argues that their rhetoric and slogans have cleverly smuggled legitimate concerns about the welfare of children into a baseless and dangerous set of entirely false claims about the nature of child trafficking. What role have social media sites dominated by women played in the circulation of QAnon theories and how can they be challenged?

Also, Nina Jankowitz, Global Disinformation Fellow at the Woodrow Wilson International Centre for Scholars, examines Russia’s role in the spread of disinformation, not only in the USA but also in Eastern and Central Europe. What lessons can be learned from these experiences? She argues that the best types of disinformation are able to amplify and exploit the already existing divisions in society, including racism and inequality in the US context.

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Foreign Policy: Pentagon Says UAE Possibly Funding Russia’s Shadowy Mercenaries in Libya

 Experts have long suspected that the UAE may be using Russian private military contractors to help obfuscate its role in the conflict—a charge that Abu Dhabi denies—but the report is the first public, official assessment of the arrangement. [...]

But the revelation that those Russian mercenaries may have been bankrolled by one of America’s closest military allies in the Middle East further complicates the calculus for Washington, and comes as Democrats in Congress have been mounting a campaign to oppose the Trump administration’s proposed $23 billion sale of F-35 fighter jets to Abu Dhabi. The Senate Foreign Relations Committee is set to hold a closed hearing on the arms sale early Monday evening. [...]

While private military contractors are outlawed within Russia, a network of companies collectively known as the Wagner group has been at the forefront of Russian interference efforts abroad from Ukraine to Libya and Sudan. The Kremlin’s increasing reliance on the group has lent its overseas operations a veneer of plausible deniability, but Wagner is deeply entwined with Russian military and intelligence structures and the Department of State has characterized it as a “surrogate for the Russian ministry of defense.”

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Nautilus Magazine: Why We Judge People Based on Their Relatives

We know that humans are inference machines. With very little information, people can guess at rates above chance whether someone is a psychopath. With a 10-second video clip, people can correctly guess whether someone is gay 81 percent of the time. To many, “stereotype” is a word practically synonymous with “false,” but stereotype accuracy is one of the best replicated findings in psychology. You can accurately infer a lot about someone simply by knowing their ethnicity, sex, or country of origin. Of course, when we know people better, we tend to rely relatively more on our own experience. [...]

For most characteristics, it looks like genetics are much more important than parenting. One large study found that, for adopted children, their rate of criminality was 12 percent if their biological parents were criminals but their adopted parents were not criminals—but just 6 percent if their adoptive parents were criminals and their biological parents were not. When both sets of parents, biological and adoptive, were criminals, the rate of criminality shot up to 40 percent. There is a similar pattern when it comes to drug and alcohol abuse. If we know that Pete is a criminal with a substance-abuse problem, his father Jack is much more likely to have these problems as well. [...]

It’s surprising that there is almost no research about how much we judge people based on their relatives, given the abundance of evidence showing that we make quick inferences about other people on the basis of little information. Some sociologists have looked into a related bias, called the “courtesy stigma.” If you associate with someone who is stigmatized in society, like someone with substance-abuse problems, schizophrenia, or a cognitive disability, that stigma can fall on you. “Family stigma” is one form of courtesy stigma.

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Social Europe: Tax havens: patience is running out

 That’s no surprise. The OECD had certainly sought to legitimise its claim to speak for all by creating an ‘inclusive framework’ involving developing countries. However, of the 137 nations sitting around the negotiating table, only the G7—those home to the major multinationals and their lobbying teams—had a voice. As a result, the solutions advocated by the OECD would hardly limit financial flows to tax havens and the scarce resources recovered would mainly benefit rich countries. [...]

Estimating the loss of resources caused by corporate and individual tax abuse country by country, and the consequences for healthcare spending, this research is chilling. Globally, these diversions correspond to 9.2 per cent of health budgets, equivalent to the salaries of 34 million nurses. The impact is even more devastating in developing countries, where the shortfall represents 52.4 per cent of health spending. [...]

Of course, there is strong opposition within the EU itself, for one simple reason: if we readily point the finger at the small islands of the Caribbean, it is to make people forget that Europe has its own tax havens. The departing UK, together with its network of Overseas Territories and Crown Dependencies—often referred to as its ‘spider’s web’—is responsible for 29 per cent of the $245 billion the world loses to corporate tax abuse every year, according to The State of Tax Justice. And we have further examples inside the EU. Every year, for example, the Netherlands steals the equivalent of $10 billion from its EU neighbours. And it is not alone: Luxembourg, Ireland, Cyprus and Malta do the same.

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BBC4 Analysis: Chasing Unicorns Analysis

 We live in a world of unicorns. From hailing taxis to ordering pizza to renting a holiday home, the world has come to rely on huge tech startups known in Silicon Valley as unicorns. But in a post-pandemic world, can these mythical beasts survive?

In tech lingo, a unicorn is a rare start-up company valued at $1 billion dollars or more in private markets. Five years ago there were fewer than 50. Today there are over 400, including Airbnb, Uber and Deliveroo. Often created by eccentric founders and funded by evangelical venture capital backers with deep pockets, these companies have come to define our digital age while creating unimaginable riches for their investors.

But with many enduring eye-watering losses even before the pandemic, and with big question marks hanging over their long term viability, is the magic dust finally coming off?

Elaine Moore is a tech columnist at the Financial Times based in San Francisco - home of the tech unicorn. She's on a mission to find out what the future holds for the industry and what it could mean for us next time we take a taxi or order in a Friday night curry.

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Freakonomics: Does Advertising Actually Work? (Part 2: Digital)

 Google and Facebook are worth a combined $2 trillion, with the vast majority of their revenue coming from advertising. In our previous episode, we learned that TV advertising is much less effective than the industry says. Is digital any better? Some say yes, some say no — and some say we’re in a full-blown digital-ad bubble. [...]

There are, not surprisingly, objections to this research. Especially from the marketing industry. For instance, they’ll point to the brand-building aspect of advertising: “It’s not just about short-term sales,” they’ll say. Or the game-theory aspect — that is, if you don’t advertise your product and your rivals do, where does that leave you? Still, any company that spends even thousands of dollars on TV ads, much less millions or billions, would have to be sobered by Anna Tuchman’s findings. [...]

But what about the precise targeting that digital ads are supposed to offer? A 2019 study, this one done by three academic researchers, addressed this question by measuring the impact of a user’s cookies. Those, remember, are the tracking codes that most of us allow to roam our computers and phones in exchange for all the free information we get from companies like Google and Facebook. This study found that when a user’s cookies were unavailable, ad revenues only dropped by around 4 percent. Why would cookies be so ineffective? Tim Hwang argues that people pay a lot less attention to online ads than they used to.

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