Browse content similar to 13/11/2013. Check below for episodes and series from the same categories and more!
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On Newsnight tonight, the dark side of the internet. We visit some of | :00:09. | :00:15. | |
the sites where money can buy you anything. Guns, drugs, even an | :00:16. | :00:23. | |
assassination. We talk to the former Foreign Secretary, Ed Miliband about | :00:24. | :00:30. | |
disasters and the David Miliband and about disasters and the threat they | :00:31. | :00:35. | |
pose. Immediately at the same time after the threat of sanitation and | :00:36. | :00:42. | |
difficulties, there is an increased threat of violence against women, to | :00:43. | :00:45. | |
turn away from that would be wrong. The Syrians who have had to feed | :00:46. | :00:48. | |
their country not because of war, but because parts of it are now run | :00:49. | :00:56. | |
by Al-Qaeda. And can it really be worthwhile for | :00:57. | :01:01. | |
supermarkets and department stores to spend a fortune on Christmas | :01:02. | :01:14. | |
marketing like this. First tonight, who says the media | :01:15. | :01:18. | |
don't report good news? 177,000 more people have jobs now than was the | :01:19. | :01:23. | |
case three months ago. Employment is growing much faster than the Bank of | :01:24. | :01:27. | |
England predicted. The governor of the bank has said he doesn't expect | :01:28. | :01:31. | |
interest rates to rise until unemployment falls below 7%. But | :01:32. | :01:36. | |
that now looks as if it will happen much sooner than had been predicted. | :01:37. | :01:40. | |
As early as this time next year perhaps. Who dare raise interest | :01:41. | :01:47. | |
rates in the current climate. It doesn't seem like a good moment to | :01:48. | :01:54. | |
hold your breath. If you order chicken and chips at the new | :01:55. | :01:58. | |
low-opened franchise in Streatham Hill in south London, you will serve | :01:59. | :02:03. | |
by someone who has been through long-term unemployment. Before | :02:04. | :02:07. | |
opening in June the new owner faced difficulties in finding staff, he | :02:08. | :02:11. | |
went to the welfare-to-work firm A4e, which had no shortage of | :02:12. | :02:16. | |
willing friars. All of his new staff were long-term unemployed and some | :02:17. | :02:20. | |
hadn't worked for years. How long were you out of work for? About a | :02:21. | :02:24. | |
year. What was that like? Getting up in the day and nothing to do really. | :02:25. | :02:29. | |
What to do? There was only so many times can you apply for a job like | :02:30. | :02:33. | |
that. You go out and you look for work you get a bit disheartened and | :02:34. | :02:39. | |
you go out and the position is filled or not enough experience, or | :02:40. | :02:43. | |
whatever reason, it weren't nice, it was horrible. How about your income, | :02:44. | :02:48. | |
how has that changed? It is difficult, before you used to have a | :02:49. | :02:52. | |
budget of ?70 and now I have got much bigger budget, I find it really | :02:53. | :02:56. | |
quite difficult to know what to do with my money now. Save it? Save it | :02:57. | :03:02. | |
and that and go to the cinema and that, Christmas coming up everybody | :03:03. | :03:06. | |
will be very happy now, nice Christmas present each one. Youth | :03:07. | :03:12. | |
unemployment fell by 9,000 to 965,000 in the three months to the | :03:13. | :03:15. | |
end of September. While those without a job for more than a year | :03:16. | :03:21. | |
fell to 890,000, overall unemployment was down 48,000 over | :03:22. | :03:23. | |
three months and by more than a quarter of a million over a year. | :03:24. | :03:27. | |
That is the biggest annual drop since the 1990s, the rate is now | :03:28. | :03:33. | |
7.6%. Good news, you would have thought, and the Governor of the | :03:34. | :03:36. | |
Bank of England thinks so. For the first time in a long time you don't | :03:37. | :03:40. | |
have to be an optimist to see the glass is half full. The recovery has | :03:41. | :03:45. | |
finally taken hold. The governor's glass may be half full by the City's | :03:46. | :03:50. | |
is half empty, that is because Mark Carney has given forward guidance | :03:51. | :03:54. | |
and said as long as unemployment is above 7% interest rates won't rise. | :03:55. | :03:59. | |
The City has taken it the other way round saying if unemployment gets | :04:00. | :04:02. | |
below that interest rates will rise. In this way the City takes good | :04:03. | :04:06. | |
economic news, if it is too good in a very bad way. So when might rates | :04:07. | :04:14. | |
rise? In August Mark Carney didn't expect unemployment to get to 7% for | :04:15. | :04:18. | |
three years. Now the Bank of England forecast it is as likely as not to | :04:19. | :04:23. | |
hit 7% just a year from now. That's rattled the financial markets which | :04:24. | :04:27. | |
used to ignore unemployment numbers. Now they worry an early rate rise | :04:28. | :04:32. | |
will cause investors to sell bond, hitting the value of hundreds of | :04:33. | :04:36. | |
billions of investments. Who wants a Government bond paying tiny interest | :04:37. | :04:40. | |
rates when rates are about to go up. Bonds have been very strong for 15 | :04:41. | :04:44. | |
years now, really on the back of having low interest rates for such a | :04:45. | :04:47. | |
long time. And that can come under pressure. The likelihood of an | :04:48. | :04:53. | |
earlier rate rise boosted the pound, but should make imports cheaper but | :04:54. | :04:59. | |
exports more expensive for foreign customers, the markets are we aried | :05:00. | :05:04. | |
about the recovery and share prices took a tumble. With 7,000 jobs | :05:05. | :05:10. | |
created in three months, the economy is heating up quickly. With the Bank | :05:11. | :05:15. | |
of England giving evens on a rate rise it is likely to be a year | :05:16. | :05:18. | |
before the general election. Not that it will bother Mark. | :05:19. | :05:23. | |
Here now is our guest, an external member of the Bank of England's | :05:24. | :05:27. | |
Monetary Policy Committee, and Gillian Tett from the Financial | :05:28. | :05:31. | |
Times. This is good news isn't it? It is pretty good news actually. | :05:32. | :05:36. | |
Tempered by some not quite so good news. We didn't really expect this | :05:37. | :05:40. | |
big fall in unemployment. That is good, but wages are the bad story. | :05:41. | :05:44. | |
You think it is pretty good news? I think it is good news, it does take | :05:45. | :05:51. | |
a chirpy north American to telling us all that the glass is half full | :05:52. | :05:55. | |
not half empty. We Brits are used to the half empty. It is certainly | :05:56. | :05:59. | |
encouraging. Is it sustainable, that is the big question? That is indeed | :06:00. | :06:03. | |
the big question for two reasons, firstly, the question everybody | :06:04. | :06:07. | |
should be asking is this increase in jobs and wealth actually leading to | :06:08. | :06:14. | |
a broad-base feel-food factor or is it concentrated in small niches of | :06:15. | :06:17. | |
the economy. Places like London are booming, if you get outside London | :06:18. | :06:22. | |
it is a different picture. Secondly, unfortunately the bank is in a trap | :06:23. | :06:25. | |
that it has indicated that interest rates may be going up much faster | :06:26. | :06:29. | |
than people expect? I was going to come to that in a second or two, do | :06:30. | :06:33. | |
you think it is sustainable? No I don't, if you think of the | :06:34. | :06:37. | |
components of growth. Nice for you to be cheerful? I will tell you the | :06:38. | :06:41. | |
truth. Components of growth are you need investment rising, that is not | :06:42. | :06:44. | |
happening, trade rising, that is not happening. Real wages aren't rising, | :06:45. | :06:49. | |
they are falling, and the only way we are getting consumers to spend is | :06:50. | :06:52. | |
by taking their savings, because they think house prices are going to | :06:53. | :06:56. | |
boom. So we have gone out of boom and bust, and we have come to a new | :06:57. | :06:59. | |
situation where we have a boom coming which eventually will end in | :07:00. | :07:03. | |
a bust. So the answer it is not sustainable. Especially if interest | :07:04. | :07:07. | |
rates were to rise. Let's engage with Gillian's point that she was | :07:08. | :07:10. | |
beginning to make there, which is what Mark Carney has said about | :07:11. | :07:16. | |
interest rates? I'm not as gloomy as David. But I do think the question | :07:17. | :07:20. | |
of interest rates is critical. We are starting to see house prices | :07:21. | :07:25. | |
rising fast, it is striking this is coming not after sharp house price | :07:26. | :07:29. | |
falls. In America you are seeing a rebound in housing prices but there | :07:30. | :07:31. | |
has been a very sharp downturn first. So the question of whether it | :07:32. | :07:36. | |
is sustainable in the housing market is a big one. Unfortunately the UK | :07:37. | :07:41. | |
is much more exposed to swings of interest rates in terms of mortgage | :07:42. | :07:45. | |
payments than other countries. So if interest rates do go up sooner than | :07:46. | :07:49. | |
people expect the impact could really be pretty nasty. He has boxed | :07:50. | :07:55. | |
himself in hasn't he? Both the Chancellor and the Governor of the | :07:56. | :07:58. | |
Bank of England are boxed in. We start from a position in the housing | :07:59. | :08:02. | |
market where house price-to-earnings ratios are about five, where at many | :08:03. | :08:07. | |
places in the past that is the peak where the thing bursts, this doesn't | :08:08. | :08:11. | |
look sustainable. Our problem is everybody has variable rate | :08:12. | :08:15. | |
mortgages. I came off the plane yesterday and there was an advert | :08:16. | :08:18. | |
saying you can get a mortgage rate base rate plus one. 49%, you take | :08:19. | :08:23. | |
the mortgage and the bank starts to raise rates, that kills house prices | :08:24. | :08:26. | |
people can't afford to pay their mortgages and that boom we have just | :08:27. | :08:30. | |
seen is not sustainable. The problem is that if, despite the fact that | :08:31. | :08:33. | |
people say interest rates are going to rise, if they rise they wipe out | :08:34. | :08:38. | |
so many people. Listeners to this programme could suddenly think what | :08:39. | :08:41. | |
would happen to my mortgage if interest rates went from a half per | :08:42. | :08:46. | |
cent to two to four. The problem the bank has unless we get sustained | :08:47. | :08:50. | |
growth they can't raise rates for a really long time. We should surely | :08:51. | :08:53. | |
accept, and lots of people said George Osborne would never pull this | :08:54. | :08:57. | |
sort of achievement off? I think that certainly George Osborne has | :08:58. | :09:00. | |
some reason to feel not just relieved but also pretty pleased | :09:01. | :09:03. | |
tonight. Whether you are going to argue whether that glass is half | :09:04. | :09:07. | |
full or empty, it is much better or fuller than we expected a year or | :09:08. | :09:11. | |
two ago. But unfortunately as David says the sustainability question is | :09:12. | :09:15. | |
key. And very key given the timing of the next election. I hope that | :09:16. | :09:21. | |
certainly this general rising in animal spirits starts to create more | :09:22. | :09:25. | |
incentives to invest, as David says, and actually get a more sustainable | :09:26. | :09:30. | |
pattern of growth, but it is still uncertain if we are going to see | :09:31. | :09:33. | |
anything that will last and see interest rates go up in the future. | :09:34. | :09:37. | |
Well, yes, in some sense we have had quite a fast lap. Unfortunately over | :09:38. | :09:42. | |
the last three years the UK was lapped three or four times by all | :09:43. | :09:45. | |
the other countries. So yes we have a small burst of growth, but | :09:46. | :09:49. | |
actually the level of output that we have is about 3% lower than it | :09:50. | :09:53. | |
should have been if we hadn't imposed this austerity. We start | :09:54. | :09:58. | |
from a level of recession or output which is the worst recession in 100 | :09:59. | :10:03. | |
years, we still have to get two. 5% growth to get us back to the | :10:04. | :10:07. | |
starting level of output, we are 66 months in, if you can compare it to | :10:08. | :10:10. | |
the Great Depression. That was over in 48 months. So yes, we have a nice | :10:11. | :10:14. | |
little burst of growth, but we should really understand that the | :10:15. | :10:18. | |
economy is basically much lower than it should have been. What would you | :10:19. | :10:21. | |
do if you were Mark Carney now? I think he has done pretty well. He | :10:22. | :10:26. | |
has been probably quite lucky. He wasn't really going to be drawn on | :10:27. | :10:29. | |
the question of when rates were going to rise. He's going to follow | :10:30. | :10:33. | |
what the US has done and follow the data. He's not going to say to us on | :10:34. | :10:40. | |
the #rd 3rd of January 3015 he will change rates. He will say we will | :10:41. | :10:43. | |
watch how the economy is doing and then we will command to that. What | :10:44. | :10:46. | |
we are hearing is people interpreting what he says. We need | :10:47. | :10:50. | |
to watch the data, I suspect the data, this little blip may continue | :10:51. | :11:02. | |
for a while, in the end it doesn't look sustainable. One thing he has | :11:03. | :11:06. | |
created is this obsession with the unemployment rate. Nothing is | :11:07. | :11:10. | |
bulletproof, there are always big questions around labour market data, | :11:11. | :11:16. | |
but by folk cutsing so heavily on it is -- focussing so heavily on it is | :11:17. | :11:21. | |
he has indicated that the bank cares about the pat RN of growth and has a | :11:22. | :11:26. | |
conscious. But boxing yourself into one set of numbers means creating | :11:27. | :11:29. | |
this trap you are in today. If unemployment falls faster than | :11:30. | :11:33. | |
people expect, for reasons other than fundamental growth, shifts in | :11:34. | :11:38. | |
the labour market data and the hours people are working, the bank finds | :11:39. | :11:42. | |
itself in a position where people expect it to raise interest rates | :11:43. | :11:45. | |
faster than it wants to. You must come back on another morale-lowering | :11:46. | :11:52. | |
visit! The The British people have given ?13 | :11:53. | :11:57. | |
million in under 24 hours to help the victims of the storm in the | :11:58. | :12:00. | |
Philippines. Some aid is beginning to reach survivors, those delivering | :12:01. | :12:04. | |
it have been astonished by the extent and severity of the damage | :12:05. | :12:10. | |
caused by the storm. The former Foreign Secretary and nearly leader | :12:11. | :12:15. | |
of the Labour Party, David Miliband left mainstream politics here to run | :12:16. | :12:19. | |
the International Rescue committee in New York. He was in London today | :12:20. | :12:24. | |
dealing with the violence against women occurring during humanitarian | :12:25. | :12:29. | |
crisis. I went to talk to him about that and talk about Sri Lanka, | :12:30. | :12:34. | |
despite its human rights record a visit. | :12:35. | :12:39. | |
David Miliband why is the tragedy in the Philippines any business of | :12:40. | :12:44. | |
ours? Our common ity is stirred when you see people in desperate | :12:45. | :12:49. | |
circumstances. Obviously the first response is for the Government of | :12:50. | :12:55. | |
the pill even if, but for the British and western charitable | :12:56. | :12:58. | |
response down the agencies has been born of common humanity. That is my | :12:59. | :13:02. | |
interest. The difference with previous ages is we can see it now. | :13:03. | :13:06. | |
Don't you think there is an argument now that says we have to learn to | :13:07. | :13:16. | |
harden our hearts because "acts of God" are happening? I think that a | :13:17. | :13:21. | |
hardening of heart is a miserable life. The essence of being a human | :13:22. | :13:25. | |
being is helping other human beings not that you stand and walk away. I | :13:26. | :13:28. | |
think there is a real issue in the world today. If you like it is a | :13:29. | :13:32. | |
sort of double pull that is going on. One pull is parts of the world | :13:33. | :13:36. | |
that are either undergoverned or suffering from lack of prop | :13:37. | :13:39. | |
governance. Not really thinking about the Philippines in that | :13:40. | :13:43. | |
circumstances, but in Syria, Somalia and elsewhere. It is problems that | :13:44. | :13:50. | |
seem unbelievably complex and insoluable, and on the other hand a | :13:51. | :13:54. | |
western world turning in on itself. That is a dangerous combination, | :13:55. | :13:57. | |
allied to a hardening of heart the world will become more unstable and | :13:58. | :14:01. | |
unequal. What is dangerous about it? About what? This insularity that is | :14:02. | :14:08. | |
taking place in the west and the growth of inEPT or incompetent or | :14:09. | :14:12. | |
absent governance? Precisely because we are a more connected world, there | :14:13. | :14:17. | |
is an instrumental and moral argument there. The polio outbreak | :14:18. | :14:21. | |
in Syria at the moment is not going to be confined within the governance | :14:22. | :14:26. | |
of Syria that it started in. You are here to take part in a conference on | :14:27. | :14:30. | |
proEKT itting girls -- protecting girls and women, a lot of people | :14:31. | :14:34. | |
will be surprised that such a conference is necessary in the | :14:35. | :14:43. | |
context of a Clamity that has taken place? I have learned this in my new | :14:44. | :14:47. | |
job, there are enDEMic violence against women in all societies. It | :14:48. | :14:50. | |
turns out there is a plague of violence against women in Emergency | :14:51. | :14:55. | |
Situations. Both those worn of conflict and Civil War but also | :14:56. | :14:59. | |
natural disaster, the evidence from Haiti, the Pakistani floods. From a | :15:00. | :15:06. | |
range of experience that we have, the Sierra Leone conflict, places | :15:07. | :15:10. | |
where the International Rescue committee has worked in. It has | :15:11. | :15:16. | |
booed two or three times in emergencies. A natural calamity can | :15:17. | :15:25. | |
unleash forces of bash BOURism latent in human society. What can an | :15:26. | :15:31. | |
aid agency do to restrain that? Let me give you a practical example, | :15:32. | :15:36. | |
women having torches so when they go to the toilet they are able to have | :15:37. | :15:41. | |
light around them, that is important. When our experience both | :15:42. | :15:46. | |
in refugee camps and outside them is those kinds of practical measures | :15:47. | :15:50. | |
that give a bit of power to women, can make a difference. It is also | :15:51. | :15:55. | |
extraordinary, even after a terrible act of sexual violence or other kind | :15:56. | :16:00. | |
of violence, being able to address the trauma that women have suffered | :16:01. | :16:07. | |
means that they might not be pregnant or becoming HIV-positive, | :16:08. | :16:10. | |
but also they can rebuild their lives. Both on the prevention and | :16:11. | :16:14. | |
treatment side. There is no easy answer, but you say what business is | :16:15. | :16:18. | |
it of aid agencies, the business is it is 52% of the population, they | :16:19. | :16:21. | |
are extra exposed in emergencies and we can make a difference. But you | :16:22. | :16:26. | |
have your work cut out there haven't you? The feeling when you see people | :16:27. | :16:30. | |
dying in the Philippines or going hungry or suffering in Syria or | :16:31. | :16:34. | |
wherever it is in the world, there is a natural fellow feeling, it is | :16:35. | :16:39. | |
there but for the grace of good go I. Very few people can imagine | :16:40. | :16:44. | |
perpetrating sexual violence in those circumstances? It is really | :16:45. | :16:49. | |
hard to come to terms with the fact that protecting people from sexual | :16:50. | :16:52. | |
violence is not a luxury in an emergency, it is a necessity. But | :16:53. | :16:56. | |
what we have learned over the years it is. The first priority in the | :16:57. | :17:01. | |
Philippines now is undoubtedly about water and sanitation and other | :17:02. | :17:04. | |
diseases. But immediately, at the same time, we know that there is an | :17:05. | :17:08. | |
increase threat of violence against women. To neglect that and to turn | :17:09. | :17:16. | |
our minds of eyes away from it, it would be wrong. If you were Prime | :17:17. | :17:20. | |
Minister or Foreign Secretary would you be going to the Commonwealth | :17:21. | :17:23. | |
conference in Sri Lanka? It is really hard for me, I have spoken up | :17:24. | :17:29. | |
very powerfully on this. I'm in a difficult position, and let me | :17:30. | :17:35. | |
explain it to you. We work with not just Governments around the world. | :17:36. | :17:40. | |
We have an office in STLI lank KA. -- Sri Lanka, we are trying to make | :17:41. | :17:43. | |
a difference across communal lines there. I do have very strong views | :17:44. | :17:50. | |
about the Sri Lanka issue. With the current position and the duty of | :17:51. | :17:53. | |
care I have to my own staff I have to be extremely careful about | :17:54. | :17:57. | |
becoming a commentator on political affairs. If people keep taking that | :17:58. | :18:03. | |
line and cop out, as it were, these Governments are immune? I think it | :18:04. | :18:07. | |
is a really powerful point that in the end the humanitarian world can | :18:08. | :18:11. | |
staunch the dying, but it takes politics to stop the killing. And | :18:12. | :18:15. | |
that's what we face in Syria, that is what we face in civil wars around | :18:16. | :18:21. | |
the world, and that is the fact of life. That is why politics remains, | :18:22. | :18:26. | |
has primacy in a lot of these societies. Equally the humanitarian | :18:27. | :18:31. | |
sector has shown how it can innovate and lead politics in various ways. | :18:32. | :18:35. | |
What you see in the Middle East at the moment is the humanitarian | :18:36. | :18:39. | |
catastrophe is actually affecting politics. The politics in Lebanon, | :18:40. | :18:42. | |
where one in four of the population is now a refugee, the politics in | :18:43. | :18:46. | |
Jordan where it is the equivalent of the whole of Poland moving to | :18:47. | :18:52. | |
America the refugee flow into Jordan. That is humanitarian need | :18:53. | :18:56. | |
changing local politic. It is another reason why we in the west | :18:57. | :19:02. | |
should be engaged. With one bound he was free! As we are on politics and | :19:03. | :19:08. | |
you still clearly have political instincts, let me ask you about the | :19:09. | :19:11. | |
Falkirk by-election inquiry? I can't get into the Falkirk by-election | :19:12. | :19:17. | |
inquiry Jeremy. You can't blame me for trying? I applaud you for | :19:18. | :19:21. | |
trying, I will tweet out you tried, as long as you tweet he resisted | :19:22. | :19:26. | |
temptation and didn't get into it. Why is it obvious you can't talk | :19:27. | :19:33. | |
about it? Because I'm the leader of a global NGO, not a member of | :19:34. | :19:37. | |
parliament, I'm a member of the Labour Party but one in a position | :19:38. | :19:40. | |
where I have to foreswear any comment on. That There was once a | :19:41. | :19:49. | |
New York cartoon showing a dog sitting up at a computer keyboard | :19:50. | :19:56. | |
and remarking smugly that no-one on the Internet knows you are a dog. It | :19:57. | :20:00. | |
seems nobody knows anything much, if you want to buy drugs, guns, fake | :20:01. | :20:06. | |
currency even a HITman you can do so, you just Need to know where to | :20:07. | :20:14. | |
go on the called dark net, covering your tracks. We have obtained a data | :20:15. | :20:19. | |
leak showing how fast the dark net is going. G. The FBI left us in no | :20:20. | :20:36. | |
doubt, shutting down the Silk Road was a big catch for the big guys. It | :20:37. | :20:42. | |
had allowed people to sell and buy almost all legal couldn't TRA band, | :20:43. | :20:52. | |
drugs and weapons - couldn't -- contraband, cloaked in the anonymity | :20:53. | :20:58. | |
of the Internet. As one dark net site gets illuminated and shut down, | :20:59. | :21:02. | |
others take its place, through a data leak, Newsnight has had a rare | :21:03. | :21:08. | |
glimpse of one of these operations and the speed at which it is | :21:09. | :21:12. | |
growing. There is such a customer demand for these types of sites, | :21:13. | :21:16. | |
taking one or a couple down will only mean that other sites of the | :21:17. | :21:20. | |
same kind are going to reassure very quickly. You can probably best think | :21:21. | :21:30. | |
of the dark web as a sort of rather dingey basement underneath the | :21:31. | :21:33. | |
familiar internet that we all know. Up there is google and Amazon and | :21:34. | :21:40. | |
Spotify and the BBC. Down here it is a rather murky anonymous world. Only | :21:41. | :21:46. | |
accessible through something called the Tor browser. Tor stands for the | :21:47. | :21:51. | |
The Onion Router, because the anonymity of users is safeguarded by | :21:52. | :21:57. | |
layers and layers of re-routing, like an onion peeling back the | :21:58. | :22:02. | |
layers ends in tears. It is used by anyone who would rather they didn't | :22:03. | :22:06. | |
identify themselves, from political activists to drug dealers. Messages | :22:07. | :22:12. | |
sent between buyers and sellers are automatically encrypted, and | :22:13. | :22:18. | |
customers are made with Bitcoin, an untraceable virtual currency. | :22:19. | :22:22. | |
Because neither side will run out to the police if they get ripped off, | :22:23. | :22:28. | |
the whole market place runs on establishing trustworthiness. And as | :22:29. | :22:34. | |
for users like Paul, not his real name, the advantages are clear. I | :22:35. | :22:39. | |
bought LSD and MDMA, ecstacy, essentially. Why would this be a | :22:40. | :22:44. | |
better way or more attractive for you than buying face-to-face? What | :22:45. | :22:49. | |
attracted me was the availability of certain drugs which I can't get from | :22:50. | :22:58. | |
street dealers. Certainly knowing if I went to buy the drugs I would get | :22:59. | :23:01. | |
what I paid for. It is off the street, you have no idea what you | :23:02. | :23:05. | |
are going to be buying. One of the sites to pick up activity from the | :23:06. | :23:11. | |
Silk Road is called Black Market Reloaded, we got hold of its user | :23:12. | :23:14. | |
database for from a month ago. It those over 330,000 individual | :23:15. | :23:19. | |
accounts, growing at 2,000 every day, set to hit the million mark by | :23:20. | :23:24. | |
May next year. This is just one of over a dozen dark net market places. | :23:25. | :23:32. | |
Those websites attract quite a lot of interest from customer, basically | :23:33. | :23:40. | |
because they provide a place to conduct the illegal activities in | :23:41. | :23:44. | |
the physical world. If you purchase drugs you won't really want to have | :23:45. | :23:50. | |
an interaction with a drug dealer. So those websites take the physical | :23:51. | :23:54. | |
interactions out of the equation. You click a few buttons on-line and | :23:55. | :23:59. | |
you get your illicit drugs shipped in the mail to you. That is actually | :24:00. | :24:05. | |
a very appealing proposition for a lot of customers. The vast majority | :24:06. | :24:11. | |
of these hundreds of thousands of buyers and sellers seem completely | :24:12. | :24:16. | |
untraceable. However, dark net analysts have managed to link a tiny | :24:17. | :24:20. | |
number of black market reloaded accounts with real world identities. | :24:21. | :24:29. | |
This is what the raw database looks like, once it has been knocked into | :24:30. | :24:32. | |
shape by data analysts at the BBC, it now looks like a spread sheet. | :24:33. | :24:36. | |
This reveals e-mail addresses that in a very few days have also been | :24:37. | :24:40. | |
used on social media sites. The first step to establishing a real | :24:41. | :24:45. | |
identity. There is a fisherman in California selling around a million | :24:46. | :24:48. | |
dollars worth of marijuana on the site each year. There is a man in St | :24:49. | :24:55. | |
Helen's who sold us three sets of credit card details that he says he | :24:56. | :25:00. | |
got through phishing scam, he also offered counterfeit currency. A man | :25:01. | :25:05. | |
in Norway claimed to provide links to provide access to child | :25:06. | :25:09. | |
pornography websites. It is human mistakes that led us to these | :25:10. | :25:13. | |
identities which are often the only way in for the police. The way that | :25:14. | :25:18. | |
law enforcement have potential ins is to masquerade as legitimate users | :25:19. | :25:24. | |
and to try to get various tools installed unbe knowns to the hosting | :25:25. | :25:31. | |
provider on to the server. By using those tools they can compromise and | :25:32. | :25:36. | |
find their way to the hosting provider and IP addresses. That is | :25:37. | :25:40. | |
pretty much what a hacker would try to do who was trying to take down a | :25:41. | :25:46. | |
big corporate website? It is that in reverse. As we have seen such | :25:47. | :25:51. | |
victories can be short lived, the triumph in which the FBI announced | :25:52. | :25:55. | |
the closure of Silk Road hasn't lasted long, in the past week it | :25:56. | :26:00. | |
went back on-line, mocking the police and showing a thousand drugs | :26:01. | :26:04. | |
listing. It seems until the demand disappears, neither will these | :26:05. | :26:12. | |
sites. Dave Kennedy is CEO of Trusted Sec, an information security | :26:13. | :26:16. | |
company and computer hacker himself. This is a race between law | :26:17. | :26:20. | |
enforcement and the underworld who is winning? The expansiveness of the | :26:21. | :26:24. | |
dark net and how they transfer information back and forth, it is | :26:25. | :26:27. | |
hard for law enforcement to catch up on. If you look how Silk Road was | :26:28. | :26:32. | |
taken down, it emboldened the dark net side of the house to expand | :26:33. | :26:37. | |
larger, they caught him on his public life not on what was | :26:38. | :26:41. | |
encrypted and secure. It is hard for law enforcement to track the folks | :26:42. | :26:45. | |
and get hold of their on-line identities TRAK it back to the | :26:46. | :26:49. | |
original person. Silk Road attracted a certain amount of attention, but | :26:50. | :26:53. | |
according to the piece there it was only a small part of the market? | :26:54. | :26:57. | |
That's right, it pales in comparison to what is actually happening behind | :26:58. | :27:00. | |
there. This is a whole new underground market for actually | :27:01. | :27:04. | |
transferring anything you want. Credit card data, personal | :27:05. | :27:10. | |
identifiable identification, explosions, drugs. These are | :27:11. | :27:14. | |
different areas you can sell in NOOKs and cranies on the Internet | :27:15. | :27:19. | |
separate from everything else. This isn't a scare story, you could go | :27:20. | :27:24. | |
on-line and buy drugs or explosions or guns or whatever it is? You can | :27:25. | :27:28. | |
buy drugs, explosives are difficult to come by, but you can find them | :27:29. | :27:32. | |
and buy them. These are things sold in the United States. Things that | :27:33. | :27:36. | |
are being sold all across the world. It is not a scare tactic at all, it | :27:37. | :27:41. | |
is relatively available, you don't have to worry about our identity. | :27:42. | :27:45. | |
The whole purpose of the designed infrastructure is to keep your | :27:46. | :27:49. | |
identity safe. Does it follow from that we should automatically | :27:50. | :27:56. | |
distrust DMIN who down-- anybody who downloads Tor? No, Tor is all about | :27:57. | :28:01. | |
privacy and privacy concerns and what your identity is on-line and | :28:02. | :28:05. | |
who can track it. Looking at recent actions with the NSA and what they | :28:06. | :28:09. | |
are able to do. There is a lot of private concerns in the security | :28:10. | :28:13. | |
industry about what type of information Governments have access | :28:14. | :28:17. | |
to, as long as on-line hackers. Tor was bred out of the privacy forum | :28:18. | :28:22. | |
and for good purposes, it can be used by the bad guys as well. What | :28:23. | :28:27. | |
is the way forward? I think there needs to be a blend, the Tor | :28:28. | :28:33. | |
application is very good for privacy and protecting information. At the | :28:34. | :28:36. | |
same time if you look at how law enforcement is able to do it. They | :28:37. | :28:40. | |
used zero day attacks, the things that haven't been discovered to | :28:41. | :28:44. | |
trace people on Tor. It is very hard for them to see what is going on | :28:45. | :28:47. | |
inside these areas. It will be really hard for them to move | :28:48. | :28:51. | |
forward. There has to be a ni blend between privacy and the ability to | :28:52. | :28:55. | |
get the bad guys that are doing these types of things on the | :28:56. | :28:58. | |
Internet. Can you see an obvious way of doing it? Right now, no. The way | :28:59. | :29:03. | |
technology is progressing and how it is progressing, there is a big | :29:04. | :29:07. | |
emphasis on encryption and security. That will sky rocket more with the | :29:08. | :29:12. | |
NSA allegations and everything else. Everybody is paranoid, which means | :29:13. | :29:16. | |
technology will expand in the next five years into something crazy we | :29:17. | :29:21. | |
can't look at. That will be challenging for law enforcement and | :29:22. | :29:27. | |
there is no good answer now. Now, the fond hopes of western | :29:28. | :29:31. | |
Governments that the dictatorship in Syria might be replaced by rebels | :29:32. | :29:37. | |
seeking a form of democracy look increasingly forlorn. Islamic | :29:38. | :29:40. | |
fundamentalists seem to be taking a more and more prominent role in the | :29:41. | :29:46. | |
Civil War. An organisation calling itself the Islamic state in Iraq and | :29:47. | :29:50. | |
the Levant, an Al-Qaeda affiliate now controls the important city of | :29:51. | :29:55. | |
Raqqa in Syria. A place of perhaps one million people, to whom they | :29:56. | :29:59. | |
brought their own species of religious tyranny. Refugees have | :30:00. | :30:02. | |
been telling our reporter about what it is like to live under. She has | :30:03. | :30:12. | |
reached the relative safety of Turkey but daren't talk openly. A | :30:13. | :30:17. | |
young Syrian activist, who fled not from the guns and the Assad regime, | :30:18. | :30:22. | |
but a new alien force. All lack Akbar. -- Allah hu Akbar. The | :30:23. | :30:30. | |
Islamic state of Iraq and Syria is a branch of Al-Qaeda has taking over | :30:31. | :30:35. | |
ever more of northern rebel held Syria. This is the story of how she | :30:36. | :30:40. | |
and other Syrians from her home city have been terrorised by the Jihadis, | :30:41. | :30:46. | |
after they thought they were liberated. TRANSLATION: Seven or | :30:47. | :30:52. | |
eight men with explosive belts surrounded my sister, some said | :30:53. | :30:57. | |
knife her or shoot her. She tore down her banner that said Christians | :30:58. | :31:00. | |
and Muslims are one, and told her she was an infidel. TRAN They are | :31:01. | :31:06. | |
the new dictators, like Bashar Al-Assad, but dressed in black. Only | :31:07. | :31:13. | |
the colour has changed. TRANSLATION: They bring children, and order them | :31:14. | :31:17. | |
to chant their slogans to say down with freedom, we want a KAL fate. | :31:18. | :31:31. | |
The Islamic state celebrated its takeover of Raqqa, exactly six | :31:32. | :31:35. | |
months ago. Celebrated by rounding people up to watch an execution. The | :31:36. | :31:47. | |
victims they said weren't Muslims. TRANSLATION: They didn't say their | :31:48. | :31:55. | |
names, just that they were Alawite, they fired in the air shouting "good | :31:56. | :32:02. | |
is greatest". An ambulance came for the bodies and they told the driver | :32:03. | :32:08. | |
to dump them on the rubbish tip but he insisted they were buried | :32:09. | :32:14. | |
properly. Raqqa, the population of a million, including disgraced people, | :32:15. | :32:18. | |
may be the largest city in the world ever fully controlled by Al-Qaeda. | :32:19. | :32:35. | |
Give me an example of how they made you behave differently and do what | :32:36. | :32:39. | |
you didn't want to do? TRANSLATION: I was walking down the street when | :32:40. | :32:42. | |
two masked men gave me a paper saying I must wear Islamic dress, no | :32:43. | :32:48. | |
make-up or high heels, otherwise they would take me to the | :32:49. | :32:54. | |
headquarters and beat me severely. TRANSLATION: They banned the sale of | :32:55. | :32:58. | |
alcohol, they tried to close cafes where boys and girls sit together, | :32:59. | :33:02. | |
they banned street cinema, theatre, bright colours. The men who imposed | :33:03. | :33:08. | |
the regin of terror include Jihadis from North Africa, Saudi Arabia and | :33:09. | :33:12. | |
Europe. Seen here training in northern Syria. The forces are | :33:13. | :33:21. | |
thought to include as many as 100 00 Britons. I'm here to help raise the | :33:22. | :33:27. | |
Jihad flag. The United States your time will come, we will bleed you to | :33:28. | :33:32. | |
death and raise the flag in the White House. With aims far wider | :33:33. | :33:35. | |
than Syria they have discredited the revolution in the eyes of the world | :33:36. | :33:42. | |
and split rebel forces. And that's produced another wave of refugees | :33:43. | :33:48. | |
trying to keep warm in a makeshift camp on the Turkish side of the | :33:49. | :33:52. | |
border. These have arrived in the last month from the nearby town, | :33:53. | :33:57. | |
where Jihadis have taken control. 12-year-old Mohammed can no longer | :33:58. | :34:03. | |
go to school. He's desperate to keep up his English. TRANSLATION: We had | :34:04. | :34:08. | |
to leave Damascus because Bashar Al-Assad destroyed our homes, we | :34:09. | :34:11. | |
moved to thevilleage, but the village was destroyed. We came here | :34:12. | :34:17. | |
to be safe. Just a few miles beyond the fence they cling to is a swathe | :34:18. | :34:22. | |
of Jihadi-controlled territory, it is getting wider by the day. Syrians | :34:23. | :34:26. | |
who have been under attack from their own Government for the last | :34:27. | :34:30. | |
two years are now bewildered and horrified to find they have a | :34:31. | :34:34. | |
second, equally ruthless enemy, they are being squeezed, sometimes | :34:35. | :34:38. | |
literally squeezed to death, between two forces, Jihadis and the regime, | :34:39. | :34:44. | |
who should be at opposite extremes, but who seem sometimes now to be | :34:45. | :34:47. | |
working in one another owes interests. | :34:48. | :34:51. | |
-- one another's interests. When the fighters attacked one of Raqqa's | :34:52. | :34:56. | |
main churches and made it their headquarters, they confirmed | :34:57. | :35:00. | |
Al-Assad's position that the revolution would turn sectarian. | :35:01. | :35:04. | |
TRANSLATION: Two carloads of armed fighters went on to the roof of the | :35:05. | :35:12. | |
church. They broke the bell with hammers and one of the crosses they | :35:13. | :35:16. | |
threw down into the street. They tried to break it but it was iron | :35:17. | :35:24. | |
and they threw down a crucifix too. The crucifix was seized by children. | :35:25. | :35:28. | |
But the cross was taken up by demonstrators chanting "shame, | :35:29. | :35:37. | |
shame" . Outside the headquarters they shouted that Muslims and | :35:38. | :35:41. | |
Christians would fight together for freedom. But now many of those | :35:42. | :35:46. | |
protestors and other social activists have been arrested or | :35:47. | :35:52. | |
forced to flee. TRANSLATION: They beat me with a rifle and with their | :35:53. | :35:56. | |
hands when they arrested me. They threw a wheel on my back so I | :35:57. | :36:04. | |
couldn't move. When I was arrested my mother came to the headquarters | :36:05. | :36:10. | |
and shouted at them, "you are like bats, when did you come to Syria, | :36:11. | :36:14. | |
where were you when our children stood defenceless against Assad's | :36:15. | :36:20. | |
bullets". Back on the border, refugees who have now escaped | :36:21. | :36:26. | |
Assad's blitz and bombs conDM him, but -- condemn him, but they are | :36:27. | :36:30. | |
mostly too scared to say anything against the Jihadis. The new enemy | :36:31. | :36:35. | |
that has jumped into the chaos of Syria, may now take even longer than | :36:36. | :36:40. | |
the regime to dislodge. Six weeks today it will be Christmas Day. So | :36:41. | :36:46. | |
there are a mere 42 days left in which to experience the glut of | :36:47. | :36:50. | |
advertising trying to persuade us that the only way to celebrate this | :36:51. | :36:53. | |
event is to spend a lot of money. The retailers need to get us into | :36:54. | :36:57. | |
the shops, apart from anything else, to recoup some of the fortune they | :36:58. | :37:01. | |
have spent on Christmas advertising campaign, in the last year or so we | :37:02. | :37:13. | |
have been exposed less to jingles and that but almost an arms race. We | :37:14. | :37:18. | |
will discuss whether it has success. First we have this. Tis the season | :37:19. | :37:30. | |
of amu mentality and nostalgia, and adverts that don't mention what they | :37:31. | :37:40. | |
are selling. That is far too boring. For these aren't really adverts at | :37:41. | :37:44. | |
all, apparently they are movies and the companies that make them take | :37:45. | :37:53. | |
them very seriously. Tesco even take you on set. What we're looking at is | :37:54. | :37:57. | |
something which is like a little slice of history. Nothing does | :37:58. | :38:02. | |
memory better than cinema. Tesco hope this ad will tell the real | :38:03. | :38:06. | |
story of Christmas, by following a pretend family through six decades. | :38:07. | :38:11. | |
So you met in the 1960s and we just got matter YOED and spent our first | :38:12. | :38:17. | |
Christm together. Spending on Christmas ads has increased | :38:18. | :38:23. | |
dramatically in recent years. Last Christmas supermarkets spent 23% | :38:24. | :38:27. | |
more on TV and press advertising than the year before. Tesco shelled | :38:28. | :38:32. | |
out the most ?8. Four million. Its sales went up by 5.6%. Sainsbury's | :38:33. | :38:38. | |
bill was ?5.7 million, their sales rose five. 1%. But Morrisons forked | :38:39. | :38:47. | |
out ?5. Five million and only had a 1.7 rise. Waitrose got a bang for | :38:48. | :38:55. | |
their buck, a mere ?2. Two million, translating into a nine. 3% increase | :38:56. | :39:01. | |
in sales. Earlier this evening Sainsbury's showed this Christmas | :39:02. | :39:05. | |
advert for the first time. It is a trailer for a documentary about | :39:06. | :39:09. | |
Christmas Day by the acclaimed director Devon McDonald. -- Kevin | :39:10. | :39:16. | |
McDonald. Christmas lunch is not a difficult meal to prepare. It is | :39:17. | :39:22. | |
made up of home videos gimp to the director by more than 100 families. | :39:23. | :39:26. | |
When we first saw the film that Kevin put together we thought it was | :39:27. | :39:29. | |
something pretty special, we asked ourselves a question how would you | :39:30. | :39:34. | |
launch a film, the idea is to do a preview or trailer, we thought about | :39:35. | :39:38. | |
using that perfect analogy, we thought our customers would love | :39:39. | :39:40. | |
seeing the full three-and-a-half minutes before moving down into | :39:41. | :39:45. | |
shorter formats. I think some people might be really struck even by the | :39:46. | :39:50. | |
language here, this is a film. You are selling Christmas cake, why are | :39:51. | :39:55. | |
you referring to it as a film, it is an ad? At Christmas time people want | :39:56. | :39:59. | |
to be entertained and engaged. Perhaps sometimes in marketing we | :40:00. | :40:03. | |
shout a bit too much at people about prices and promotions. It is | :40:04. | :40:07. | |
definitely a bit of a softer sell. Sainsbury's bought up the entire | :40:08. | :40:13. | |
ad-break during tonight's Coronation Street to show it. TV isn't all they | :40:14. | :40:18. | |
care about. Social media is at the core of their strategy. Sainsbury's | :40:19. | :40:38. | |
will be reading -- since breeze will be reading twitter and seeing what | :40:39. | :40:43. | |
the response will be, things have changed. | :40:44. | :40:52. | |
It is not clear whether all this advertTANment is working, will it | :40:53. | :40:57. | |
persuade you to walk through their doors? | :40:58. | :41:01. | |
With us now is Neil Christie managing director of the advertising | :41:02. | :41:12. | |
film and firm who made the advert and Isabelle Szmigin. They make it | :41:13. | :41:17. | |
sound as if they are doing a big style patronage of the arts. But | :41:18. | :41:21. | |
presumably these are hard commercial judgments? This is a very important | :41:22. | :41:25. | |
time for retail. But also for customers. Will they get their money | :41:26. | :41:30. | |
back? The one who is do a good job, will do, absolutely. What is your | :41:31. | :41:34. | |
view of these ads? I think we are going through a phase where there is | :41:35. | :41:44. | |
a particular kind of ad going on, going back to family values. It is a | :41:45. | :41:49. | |
very competitive market, some do well and some don't. We have to bear | :41:50. | :41:52. | |
that in mind, these companies are competing for the share of the | :41:53. | :41:58. | |
consumers' Christmas pound. They are not selling products? Not in these | :41:59. | :42:03. | |
ads, but this is just part of their overall campaign going up to | :42:04. | :42:06. | |
Christmas, there will be a whole load of other things, like your | :42:07. | :42:09. | |
report said, the social media is going on, there will be price | :42:10. | :42:15. | |
discounts in the stores. It is an amalgamation of ways to interact | :42:16. | :42:21. | |
with the consumers. It is a slightly old fashioned model, built around | :42:22. | :42:25. | |
the idea of the family sitting around the television, watching it | :42:26. | :42:28. | |
collectively, sharing in the narrative, as opposed to some kind | :42:29. | :42:32. | |
of viral campaign? Television is still a very effective way of | :42:33. | :42:35. | |
reaching a large number of people quickly. Television isn't the only | :42:36. | :42:38. | |
channel these retailers are using, they are using social media and | :42:39. | :42:43. | |
in-store, they are using on-line. These ways television is a great way | :42:44. | :42:46. | |
of starting the conversation, and that can continue. What is the | :42:47. | :42:50. | |
conversation about? It is about Christmas. People look forward to | :42:51. | :42:54. | |
Christmas. It is a lot of home videos? You are tapping into memory | :42:55. | :42:59. | |
which is an incredibly powerful thing. What is that to do with going | :43:00. | :43:03. | |
shopping? What that does is part of the preparation for all the stuff | :43:04. | :43:06. | |
you need. To have the Christmas you are looking forward to. I think your | :43:07. | :43:10. | |
cynicism is appropriate in many ways, what you have to do is at the | :43:11. | :43:13. | |
end of the day these companies have got to sell product and some of the | :43:14. | :43:17. | |
stories, people are going to like, but once you have seen the story, | :43:18. | :43:21. | |
and it comes up on the TV again and again, can you get a little bit | :43:22. | :43:25. | |
bored with it, and probably what you are thinking about, as you get up to | :43:26. | :43:29. | |
Christmas is how much money have I got and how much will I spend. How | :43:30. | :43:33. | |
many more times do I have to watch this? Exactly. We know consumers | :43:34. | :43:38. | |
attention span is quite tight. So if you have got an ad that is a minute | :43:39. | :43:43. | |
long, that can be problematic, I think the Sainsbury's one, they are | :43:44. | :43:47. | |
talking about a long one to start off with, then coming up with | :43:48. | :43:50. | |
smaller clips and so on. I think you have to be very careful about losing | :43:51. | :43:54. | |
your consumers' attention. I think it can. We have other things to do | :43:55. | :44:02. | |
as well as watch the ads. That is why so much time and effort goes | :44:03. | :44:06. | |
into making them engages and entertaining and as emotionally | :44:07. | :44:10. | |
moving as they can be. When you know the story at the end that the bear | :44:11. | :44:15. | |
has been woken up or the girl has her red shoe, the next time is it as | :44:16. | :44:21. | |
good. There is a level of craft and story telling that goes into them | :44:22. | :44:25. | |
that repays. How many times do you go to see a movie in a cinema? A | :44:26. | :44:32. | |
movie is 90 minutes long not a few seconds. You sit through the ads | :44:33. | :44:38. | |
repeatedly? Yes. And people do it. You have to be paid? People | :44:39. | :44:42. | |
genuinely enjoy these things and look forward to them. They look | :44:43. | :44:46. | |
forward to them? It is part of the celebration of Christmas, it is like | :44:47. | :44:49. | |
switching the lights on and putting up the decoration, they genuinely | :44:50. | :44:53. | |
love it. You have to bear in mind at the end of the day that people have | :44:54. | :44:57. | |
got to remember what is the brand they are watching. One of the things | :44:58. | :45:00. | |
I would be concerned about with some of them is, was that John Lewis or | :45:01. | :45:05. | |
was it Marks Spencers or whatever? Do we care? You know some of us care | :45:06. | :45:11. | |
more than others, but I think that the entertainment factor is | :45:12. | :45:16. | |
interesting. Why shouldn't ads be entertaining, there is nothing wrong | :45:17. | :45:20. | |
with that. What I'm concerned with is when you get so many ads like | :45:21. | :45:24. | |
this you can't cut through the clutter, they all become similar. | :45:25. | :45:29. | |
This is a vogue, it will pass and something else will come along? | :45:30. | :45:33. | |
There is definitely a trend over the last few years of more and more | :45:34. | :45:38. | |
being invested both financially and emotionally around these campaigns | :45:39. | :45:41. | |
at Christmas. It becomes a little bit like the Superbowl in America, | :45:42. | :45:45. | |
it becomes the place to be because there is so much at stake, and if | :45:46. | :45:49. | |
you are not in the game your people aren't aware you are out there and | :45:50. | :45:53. | |
you are not competing. So I think at the moment there is definitely a | :45:54. | :45:56. | |
feeling that for the big retailers, if you are not there in the | :45:57. | :45:59. | |
Christmas market you are really not competing and you will lose out. | :46:00. | :46:02. | |
Thank you very much indeed. Tomorrow morning's front pages now, the FT | :46:03. | :46:07. | |
goes with the news of the improvement in the economy: le | :46:08. | :46:11. | |
If you are the sort of of person who loves to cuddle up with a political | :46:12. | :46:46. | |
speech. The Conservative Party has deleted speeches David Cameron made | :46:47. | :46:53. | |
before he came to power. We have some left, so we leave you with a | :46:54. | :46:57. | |
reminder of those more innocent times. | :46:58. | :47:02. |