The Londoner

Book Review by Sikander Hayat  As far as I have been able to decipher, this book is about the emergence of an event which  is  totally unforeseen, unpredictable and which cannot be modelled for by our usual  forecasting models . Black Swan by Nassim Nicholas Taleb is a great book to read despite  its length and tone which shows its anger against the current establishment in academia,  industry and just about anyone in high places. Nassim has been a quant in his previous life,  has practised financial forecasting methods in trying to choose the eventual winners and has  tried to use his practitioner's knowledge to inject life into the idea of his Black Swan thesis.  Although he has used forecasting models in his life as a trader, he is fully aware of the short  comings of these models and in fact, he makes a strong case against modelling risk with the  current tool...

By Sikander Hayat  It is fascinating to understand the creation of money out of thin air by the central banks and governments across the world. How a fiat currency gains credence and what is it backed by is a very interesting subject. How piece of paper or some digits on computer screen can be called money and can be exchanged for physical goods is fascinating to observe. Off course value of such a currency is only valid as long as people trust it. Is there a future for current paper currencies or these are going to be replaced by digital ones. With the meteoric rise of Bitcoin and other cryptocurrencies , it is a matter of time before central banks will have to come up with a mechanism to integrate these into fabric of current currency universe and find a way to regulate them. I assume that the currently cryptocurrencies derive their value from the use by money launderers and criminal element of our societies as it is possibly the best way to make their b...

The French finance minister, Michel Sapin, has announced a series of initiatives to improve the tracking of terrorism financing, Le Monde newspaper reports. The measures include better supervision of prepaid bank cards, which the ministry believes played an important role in the preparation of the 13 November attacks. The new measures will make it harder for card users to remain anonymous. Currently, prepaid cards can be recharged without identity checks, so long as they do not exceed 2,500 euros over one year, according to the AFP news agency. "There are new means of payment which have been created which should be on our radar," Bruno Dalles, head of the finance ministry's Tracfin intelligence unit, told AFP.    Read the full story at bbc.co.uk

For many people in their twenties, the dream of a debt-free existence in a comfortable house near their place of work has given way to more modest hopes for a tiny flat in the middle of nowhere , and the occasional meal out with friends. With  interest rates  stuck at 0.5 per cent since the financial crisis,  bond yields  at or around zero and a property ladder that is increasingly out of reach, many young professionals with good intentions and decent salaries find themselves stuck between what feels like an undeserved rock on one side, and a very hard place on the other. For these savers, putting money away for the future might seem like a hopelessly unrewarding pursuit — especially while they still have student debt to repay. But wealth managers insist that as people live longer and the population ages, young adults need more than ever to plan ahead. “A few of my friends think taking out a mortgage is completely impossible,” says Lauren Ingram, a 27-yea...