21/09/2016 Newsnight


21/09/2016

Similar Content

Browse content similar to 21/09/2016. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

No world War three, tick. Economy hasn't fallen into a big hole, tick.

:00:08.:00:19.

Bake off still on the box, tick. This Brexit thing seems to be going

:00:20.:00:23.

OK. Except of course, hasn't started yet. The economy appears buoyant, so

:00:24.:00:29.

how much can we read into that? We will try to make sense of the

:00:30.:00:33.

economic signals and see where we are heading. The head of MI6 says

:00:34.:00:37.

they will hack their way to victory as he recruits 1000 new spies. The

:00:38.:00:44.

information revolution fundamentally changes our operating environment.

:00:45.:00:48.

In five years' time there will be two sorts of intelligence services,

:00:49.:00:51.

one that understands this fact and prospers and one that doesn't and

:00:52.:00:55.

hasn't. And Ed Balls is here as the polls close in the Labour leadership

:00:56.:01:00.

election, with Jeremy Corbyn the hottest favourites. Where did it all

:01:01.:01:01.

go wrong? The doom-monger Remainers have been

:01:02.:01:08.

slain, their scares exposed. That view has gained a bit

:01:09.:01:13.

of traction of late, and today we got an official

:01:14.:01:17.

statistical summary of data so far from the Office

:01:18.:01:19.

for National Statistics. And it was ambivalent enough

:01:20.:01:23.

to reassure all sides. Basically, it said -

:01:24.:01:25.

we don't really know But we've got through

:01:26.:01:27.

the first part. There was other news too:

:01:28.:01:30.

an official forecast It cut its UK growth

:01:31.:01:32.

forecast for next year, but nudged it up for this year,

:01:33.:01:38.

and headlines went both ways too. Clearly the world hasn't

:01:39.:01:42.

fallen in, and that raises two questions

:01:43.:01:43.

- big questions. And secondly, does the economics

:01:44.:01:45.

profession have egg on its face for suggesting things

:01:46.:01:51.

might go wrong? No one doubts there were

:01:52.:01:57.

the occasional exaggerations on both In fairness to economists,

:01:58.:01:59.

they were a little more The most talked about warnings came

:02:00.:02:10.

from the Governor of Material slowdown in growth,

:02:11.:02:14.

notable increase in inflation, that's the MPC's

:02:15.:02:20.

judgment, it's a judgment not based It is a judgment not based

:02:21.:02:23.

on a whim, it is a judgment based on rigorous analysis and

:02:24.:02:28.

careful consideration. Of course, there is a range

:02:29.:02:30.

of possible scenarios around Which could possibly

:02:31.:02:33.

include a technical Well, in using the words that he did

:02:34.:02:36.

at the bank behind me, Mr Carney gave the Remain politicians

:02:37.:02:45.

something they could COuld work up into

:02:46.:02:47.

more lurid scenarios. But nothing that has happened

:02:48.:02:51.

since June has made the actual words appear

:02:52.:02:53.

particularly stupid. And for economists more generally,

:02:54.:02:56.

they have had some mood swings, as they so often do,

:02:57.:02:59.

and not just the economists. The first big business survey that

:03:00.:03:05.

came after the With the global financial crisis

:03:06.:03:07.

of 2008, 2009, the bursting of the dot-com bubble and the 1998 Asian

:03:08.:03:19.

financial crisis, the difference this time is that it is all entirely

:03:20.:03:22.

home-grown, which suggests the impact could be greater on the UK

:03:23.:03:25.

economy than before. All in all, it's a mixed enough

:03:26.:03:28.

picture for everybody's interpretation to be guided

:03:29.:03:36.

by their preconceptions. So what do we know

:03:37.:03:42.

and what don't we? Look at that edge of

:03:43.:03:44.

the Grand Canyon in the And the pound has not

:03:45.:03:48.

recovered from that But then you can look at things

:03:49.:03:53.

like car production, which So let me tell you why the answer

:03:54.:03:57.

to the question "what is the It is that economists

:03:58.:04:05.

are making one important prediction and that is that

:04:06.:04:12.

companies will hold off investing Why build a new factory if you don't

:04:13.:04:15.

know if you'll be able to sell That is a scary prediction,

:04:16.:04:21.

but it is way too early Economists are saying that business

:04:22.:04:25.

investment will contract next year. 90% of them feel that

:04:26.:04:30.

would be the case. And the average expectation

:04:31.:04:37.

is for a contraction This is quite unusual,

:04:38.:04:40.

it would generally occur in a recession, such as we had

:04:41.:04:47.

in 2009, for example. But this time it is occurring

:04:48.:04:52.

without a recession in GDP So it is a sharp change

:04:53.:04:55.

in an unusual circumstance. We will wait to see

:04:56.:05:03.

what happens next year but the truth is, economies

:05:04.:05:06.

do move quite slowly. Markets move fast, the pound can

:05:07.:05:11.

plummet here in the city in a day but production lines,

:05:12.:05:14.

they chug along, chickens carry on laying eggs,

:05:15.:05:16.

regardless of referendum results. We have little idea

:05:17.:05:21.

yet as to what "Brexit means Brexit" means,

:05:22.:05:23.

what its short-term effects are, let alone

:05:24.:05:25.

the all-important long-term impact. With me now is Linda Yueh,

:05:26.:05:33.

Professor of Economics at London Business School,

:05:34.:05:34.

Chris Giles, who is the Economics Editor

:05:35.:05:36.

at the Financial Times, and Alistair Heath, Deputy Editor

:05:37.:05:38.

of the Daily Telegraph. Alistair, I think you are the most

:05:39.:05:46.

sceptic among the panel. You think the economics profession over egged

:05:47.:05:53.

it and have egg on their faces? Yes, big time. All the hysteria about an

:05:54.:05:57.

immediate recession, a financial collapse, that hasn't materialised

:05:58.:06:02.

and I think it was a mistake for economists to make that kind of

:06:03.:06:05.

prediction or to allow themselves to be portrayed as making that kind of

:06:06.:06:10.

projection. It has damaged their credibility going forward, and that

:06:11.:06:15.

is a problem because we need their assistance when it comes to

:06:16.:06:19.

negotiating the right kind of Brexit, a pro-growth, liberal

:06:20.:06:22.

Brexit. They damaged themselves and went too far. I think what the data

:06:23.:06:27.

to date shows is there was no catastrophe, that this Armageddon

:06:28.:06:31.

situation did not materialise. Linda, speak up for the economists?

:06:32.:06:36.

I think there is some truth to the fact that because this was a

:06:37.:06:40.

referendum that was fiercely argued, I think both cases stated their

:06:41.:06:45.

cases very strongly. Economic is not a science, it is a social science.

:06:46.:06:49.

So the long-term negative effect, that lots of economists predicted is

:06:50.:06:55.

predicated on the UK not having astrometry deal with the EU and the

:06:56.:06:58.

rest of the world, not having the same kind of access to the world's

:06:59.:07:02.

biggest thing this block. But we don't know where that is going to

:07:03.:07:06.

head and the immediate impact, which wasn't emphasised enough, in the

:07:07.:07:13.

short term although this creates economic uncertainty, use and the

:07:14.:07:17.

one thing economists agree on its investment is not on take-off, lots

:07:18.:07:20.

of funds will wait to see, there are some signs of that. The Bank of

:07:21.:07:23.

England report on their business agents around the country said that.

:07:24.:07:27.

But the one thing I want to stress about uncertainty is different for

:07:28.:07:33.

you and me, for other businesses and for consumers. Consumers are much

:07:34.:07:37.

more optimistic, as we have seen in some of the surveys. Businesses are

:07:38.:07:41.

more worried. Eventually the two come together, but just as you and I

:07:42.:07:46.

react to uncertainty differently, there will be mixed reactions to

:07:47.:07:48.

Brexit and the fact we are leaving and I think that point should have

:07:49.:07:52.

been made more clearly. That is all you'll see in the immediate short

:07:53.:07:56.

term, it's only been three months since the vote and we are still in

:07:57.:08:00.

the EU until we are out on the subject of the same trade bills. Do

:08:01.:08:05.

you think the economists over egged it... Mark Carney, said there is a

:08:06.:08:08.

possibility of a technical recession. I think you've got to be

:08:09.:08:13.

very careful. I think Alistair's portrayal of what economists

:08:14.:08:16.

actually said is incorrect. They were much more careful. I think they

:08:17.:08:21.

made in two areas they should hold their hand up and say, actually I

:08:22.:08:25.

don't think we were right about the immediate impact. One was those

:08:26.:08:29.

warnings about a potential financial crisis. That clearly hasn't

:08:30.:08:34.

happened. The second was there was an expectation that sentiment and

:08:35.:08:39.

confidence would disappear and that happened, but it came back much

:08:40.:08:41.

quicker than they thought. Those two things I think they should put their

:08:42.:08:46.

hands up on. With anyone forecasting a financial crisis warning it was a

:08:47.:08:50.

possibility? I think that was entirely correct, it was possible.

:08:51.:08:54.

It didn't happen. If they didn't warn about it we could have been

:08:55.:09:00.

likely wearing 2008 saying, where were these economists, why were they

:09:01.:09:04.

warning about it? I think the way they warned of this and the words

:09:05.:09:08.

they dropped like recession, and some saying the next six quarters

:09:09.:09:12.

there will be three or four negative quarters of growth, I think that

:09:13.:09:15.

contributed to a sense of panic and created a lot of problems. There was

:09:16.:09:20.

a run on some commercial property funds and all sorts of dislocation,

:09:21.:09:24.

which fortunately seems to have abated. I think economists made a

:09:25.:09:28.

mistake and overrate their case, but it says nothing about the long run

:09:29.:09:31.

or the medium run. It doesn't say whether Brexit will a long long run

:09:32.:09:37.

triumph or a damp squid are in the shorter men made a mistake. One

:09:38.:09:42.

thing we do know, on the morning the pound fell, Linda, by 10% or so. We

:09:43.:09:47.

looked at that and said, that is a big fall and it has basically gone

:09:48.:09:53.

back up again. It has just settled at 1.30 against the dollar instead

:09:54.:09:59.

of 1.40 or 1.40 five. The markets react quickly but economies moved

:10:00.:10:03.

slowly, like oil tankers. One reaction to the pound could be we

:10:04.:10:08.

sell more, we buy more from the rest of the world than we sell. Some

:10:09.:10:11.

economists would say that sterling is essentially settling to wear

:10:12.:10:16.

investors think the economy is headed, which as we 40 said, in the

:10:17.:10:21.

medium term it depends a lot on what trade deals we get. But on the whole

:10:22.:10:26.

there is worry, the same worries we had about the British economy before

:10:27.:10:32.

the referendum, trade deficit, low productivity and wages, all those

:10:33.:10:35.

things are still true. Sterling reflects that. What's interesting is

:10:36.:10:39.

the stock market. It fell and then recovered. You saw the OECD and

:10:40.:10:43.

others say what they hadn't figured in their June assessment was the

:10:44.:10:48.

action of the Bank of England, of the Treasury, the fact... With the

:10:49.:10:55.

Bank of England made a big difference? I only use that as an

:10:56.:11:03.

example to say that... I think before class should be like the

:11:04.:11:07.

weather app on your smartphone, if it tells you what happened today

:11:08.:11:10.

it's pretty good. My point is policymakers can change the course

:11:11.:11:14.

of the economy and that's why it's hard. I want to come to investment,

:11:15.:11:18.

do we all do we not believe that companies are holding back on

:11:19.:11:21.

investment, relative to those they might have carried out in the

:11:22.:11:25.

absence of the Brexit to come as a result of the uncertainty Linda

:11:26.:11:30.

spoke about? We do, we don't have a lot of evidence for it is the honest

:11:31.:11:33.

answer. You haven't changed your mind that is one of the potential

:11:34.:11:39.

short-term effects? Yes, the potential short-term cost. You gave

:11:40.:11:43.

evidence economists are still very much in that position, thinking

:11:44.:11:46.

investment is going to fall. Not dramatically, but is going to be

:11:47.:11:50.

lower next year. They thought it was going to be rising. And it hasn't,

:11:51.:11:55.

so they've made a six or 7% difference to the forecast.

:11:56.:11:58.

Forecasts have changed for investment. You would think that is

:11:59.:12:02.

rational, because if there is a huge amount of uncertainty, the

:12:03.:12:04.

government doesn't seem to have much of an idea of what sort of Brexit

:12:05.:12:08.

once, it certainly doesn't want to tell the public it. If you hand have

:12:09.:12:13.

to spend ?304 million, would you do it now or wait a little bit? It is a

:12:14.:12:17.

rational thing to wait. You would agree with that? It is possible,

:12:18.:12:22.

yes. If there is one area affected in the short term it is business

:12:23.:12:26.

investment, because companies... It makes sense he would wait. It's

:12:27.:12:32.

possible, but the fact that 90% of economists are predicting something

:12:33.:12:37.

next year, I not bothered by that because I think the constant

:12:38.:12:40.

consensus among economists keeps changing. Sometimes they get it

:12:41.:12:44.

completely wrong and they are bad at making short or long-term forecasts.

:12:45.:12:48.

But I perfectly except it may be the case. One thing we all agree on if

:12:49.:12:52.

it's too early to say what the long-term impact of Brexit is. Any

:12:53.:12:56.

indication, anything, Linda, that has given you a sense of foreboding

:12:57.:13:02.

or a sense of encouragement, as you've looked at what has happened

:13:03.:13:06.

so far? I think consumer sentiment gives me a sense that quite a lot of

:13:07.:13:12.

people think the future will be better. Economists... It's very

:13:13.:13:15.

difficult to model how that plays out, but obviously consumption is

:13:16.:13:19.

the biggest part of the British economy. One of the hardest things

:13:20.:13:23.

about leading indicators is normally you would look at bond deals but

:13:24.:13:27.

because central banks have injected so much cash and rates are so low,

:13:28.:13:33.

they are not good indicator these days. The long-term interest rates

:13:34.:13:36.

in the markets and government lending have been so low... Yes,

:13:37.:13:41.

usually you would say, wait, actually bond yields, the government

:13:42.:13:45.

interest rates look lower in the future, that means the economy will

:13:46.:13:49.

be weaker because rates have to be cut. That's normally how you would

:13:50.:13:53.

view it. The other indicator is stock prices. The fact stocks

:13:54.:13:57.

reflect how companies feel they are going to be earning in the future,

:13:58.:14:02.

how investors view that, that's normally a leading indicator of how

:14:03.:14:07.

the economy does. I think these surveys are important, and it is

:14:08.:14:13.

important to note because all these investment decisions take a long

:14:14.:14:17.

time to realise. We haven't got much time. I just want to ask about the

:14:18.:14:21.

importance of the argument we've been having and the narrative,

:14:22.:14:25.

crests, that Brexit seems all right. I don't know how many conversations

:14:26.:14:29.

you've had, I'd had a lot in the last few weeks. Do you think that

:14:30.:14:31.

might affect the of Having quite a good period now or a

:14:32.:14:41.

reasonable period is paradoxically quite bad for the long-term records

:14:42.:14:46.

of gives us a sense of superiority, we are great, this is what we felt

:14:47.:14:50.

after the Second World War, we don't need to join in with other

:14:51.:14:54.

countries, we can do Brexit all along, let's do it straightaway.

:14:55.:14:59.

These would be the worst sort of decisions we could take and

:15:00.:15:02.

paradoxically, the fact that things have been slightly better than we

:15:03.:15:06.

might have expected might make it worse in the long run. What do you

:15:07.:15:12.

say to that? I think there is the possibility of that but I think that

:15:13.:15:18.

if you look at what Eurosceptics believe, they believed in this Nike

:15:19.:15:30.

swish, some transitionary period and then a stronger economy and so on so

:15:31.:15:34.

I think people have always expected it to be so so it is about the

:15:35.:15:39.

detail and we don't know what the government was today but we have

:15:40.:15:44.

ahead, they seem to want to restrict immigration, and that probably means

:15:45.:15:50.

they will not want a hard Brexit rather than soft. We will know

:15:51.:15:55.

before long. Thank you all very much. --

:15:56.:15:58.

Austerity may be choking local government, --

:15:59.:15:59.

one part of the public sector that is not in retreat.

:16:00.:16:03.

It's MI6, the secret intelligent service.

:16:04.:16:04.

Newsnight has learned that it is on a recruitment

:16:05.:16:06.

drive, and is looking for a thousand extra staff.

:16:07.:16:09.

You're better off applying if you know something

:16:10.:16:11.

about the internet, as it's technology that is making the job

:16:12.:16:13.

of MI6 so much harder, and driving the demand.

:16:14.:16:15.

Our diplomatic editor, Mark Urban explains.

:16:16.:16:30.

in an age when people live so much of their lives online, how can you

:16:31.:16:37.

create convincing false identities? And how do you stop our intelligence

:16:38.:16:43.

service from using facial recognition to find out the real

:16:44.:16:50.

identities of your operatives? MI6 has argued it needs more people to

:16:51.:16:56.

create aliases and cover its tracks. It currently has 2500 staff but

:16:57.:17:01.

Newsnight has established this is set to grow by 40% took nearly 3500

:17:02.:17:09.

by 2020. Last year the government announced the agencies would get

:17:10.:17:15.

1900 more people. Newsnight has established that MI6 will get most

:17:16.:17:23.

of that and MI5, currently 4000, and GCHQ at 5600 receiving smaller

:17:24.:17:28.

increases. Although the service has not yet publicly confirmed the scale

:17:29.:17:33.

of its increase, the MI6 chief, and a rare public appearance yesterday,

:17:34.:17:37.

acknowledged the size of the challenge posed by the internet. The

:17:38.:17:45.

information revolution fundamentally changes or operating environment. I

:17:46.:17:48.

would go further to say that in five years' time there will be two sort

:17:49.:17:54.

of intelligence services, those that understand this factor and those

:17:55.:17:59.

that don't and not. I am determined that MI6 will be in the former

:18:00.:18:05.

category. How exactly has the internet change things? The killing

:18:06.:18:09.

of a Palestinian militant in Dubai in 2010 gives some close. Using CCTV

:18:10.:18:16.

and passport details, it took only a few days to point the finger at his

:18:17.:18:21.

-- is really intelligence. They cloned the passports of people who

:18:22.:18:26.

had visited Israel were left there. Why? Because completely fake

:18:27.:18:29.

identities are not easily discovered. But as they should, bad

:18:30.:18:37.

fakes are not much harder to find with governments and even insurgent

:18:38.:18:43.

groups, able to deploy advanced techniques. Our opponents,

:18:44.:18:49.

unrestrained by considerations of lawfulness or proportionality, can

:18:50.:18:52.

use these capabilities to gain visibility of our activities, which

:18:53.:18:55.

means we have to completely change the way that we do stuff. And then

:18:56.:19:01.

there is rapid advance of facial recognition technology. For example,

:19:02.:19:06.

a photo of John Smith, arriving at an airport somewhere as a vacuum

:19:07.:19:13.

cleaner sales rep, can now be the first searched. It might reveal

:19:14.:19:18.

someone of an entirely different name several years earlier

:19:19.:19:21.

celebrating their recruitment to the foreign office on Facebook. Of

:19:22.:19:26.

course, these techniques can put plenty of aces into the hands of

:19:27.:19:30.

British espionage also. But the agencies have convinced Whitehall

:19:31.:19:36.

that post Snowdon, cooperation with the big service providers and

:19:37.:19:40.

technology firms has taken a knock. To the extent that those revelations

:19:41.:19:43.

damaged and undermines the trust that needs to exist, I think it is

:19:44.:19:49.

highly problematic. Now the agency has to recruit almost 1000 new

:19:50.:19:53.

people to establish more elaborate aliases, sweep up Bridge of Spies

:19:54.:19:59.

online identities and exploit the options to gather more intelligence

:20:00.:20:04.

through the internet. And on civil service pay, finding so many new

:20:05.:20:06.

people could be quite a challenge. Markers of me. How quickly has those

:20:07.:20:16.

caught up? George Osborne talked about expanding the intelligence

:20:17.:20:21.

services? There were two statements last year, one about 1000 new spies

:20:22.:20:26.

and one about 1900 in the strategic defence review and both referred to

:20:27.:20:31.

the top agencies, including GCHQ, the security service and buy some

:20:32.:20:34.

aspects even of police intelligence as well but we know that 1000 will

:20:35.:20:41.

go just to MI6, so forget the numbers going to those other

:20:42.:20:47.

agencies, which on their terms is a famous bureaucratic victory. And a

:20:48.:20:50.

pretty substantial growth. It is 40%. Is it technology driving that

:20:51.:20:58.

order they just want extra people? That is very important and it is

:20:59.:21:03.

fascinating, yesterday, to hear the chief making those arguments

:21:04.:21:05.

publicly without going into the details of how much they are going

:21:06.:21:12.

to get. They are comfortable talking about two there are three key

:21:13.:21:15.

missions. As they involve counterterrorism, cyber security

:21:16.:21:18.

and, in those areas, this is the key, this type of thing. The other

:21:19.:21:24.

area which they term more generically strategic advantage,

:21:25.:21:26.

that is more interesting, the traditional business of spying, in

:21:27.:21:32.

support of the UK's diplomatic position and all of this was agreed

:21:33.:21:36.

before Brexit but if you wish to say that we still punch above our weight

:21:37.:21:41.

in the world, and to find out the detail of those other European

:21:42.:21:46.

countries' positions on this negotiation, it would be useful to

:21:47.:21:48.

have this extra resources. Thank you.

:21:49.:21:52.

For the world community, or most of it, the Syrian government

:21:53.:21:54.

and Russia are between them responsible for atrocities that

:21:55.:21:56.

In addition to the targeting of an aid convoy on Monday,

:21:57.:22:00.

there were more deaths of those trying to help people yesterday,

:22:01.:22:03.

Well, when it comes to Syria we know our position,

:22:04.:22:06.

we know the American position, the Russian position too.

:22:07.:22:08.

But what do self-respecting Syrian government supporters say

:22:09.:22:11.

about the things that are occurring in their country?

:22:12.:22:14.

Earlier I spoke to Bouthaina Shaaban.

:22:15.:22:20.

A spokesperson for the Syrian government.

:22:21.:22:23.

I believe that nobody knows for sure what happened but what is certain

:22:24.:22:29.

is that neither the Syrians nor the Russians have any interest

:22:30.:22:34.

in targeting the humanitarian convoy when we are trying our best to make

:22:35.:22:38.

humanitarian assistance reach everywhere in that country.

:22:39.:22:43.

But it is unlikely the rebels would want to attack a convoy

:22:44.:22:46.

There are Russian planes, there were Russian planes,

:22:47.:22:53.

two Russian warplanes in the sky at the time.

:22:54.:22:58.

The Russians have just released pictures of the convoy

:22:59.:23:08.

that was protected by artillery and they have just said, the UN,

:23:09.:23:12.

that there was an American drone who was accompanying the convoy.

:23:13.:23:18.

So as you said, there are many statements about what happened

:23:19.:23:22.

but the one certain thing is that the convoy was in an area

:23:23.:23:29.

Neither nor the Syrians or Russians were anywhere near the area

:23:30.:23:43.

You know, also, I would like to remind you that for the last

:23:44.:23:49.

week that terrorists in Idlib were announcing in full

:23:50.:23:51.

mouth that they would not adhere to the truce agreed

:23:52.:23:58.

upon by the Russians and the Americans and it was

:23:59.:24:01.

said that they were going to burn any convoy that comes

:24:02.:24:03.

Do you think the bombing, deliberate bombing or

:24:04.:24:11.

attack on a Red Cross convoy is a war crime?

:24:12.:24:13.

Because many people are saying that this looks really

:24:14.:24:15.

They think your side is guilty of it.

:24:16.:24:19.

I think the logical thing would have been for the Russians and

:24:20.:24:23.

the Americans to try to investigate, do a proper investigation,

:24:24.:24:27.

instead of circulating concepts and assumptions.

:24:28.:24:35.

Do you think the Syrian government can win the war that is currently

:24:36.:24:38.

Do you know how we can win the war in our country?

:24:39.:24:44.

By stopping this war and by stopping the bloodshed in our country.

:24:45.:24:49.

We are absolutely devastated every day because of this war.

:24:50.:24:55.

It is a war that has been imposed on us, it is a war that has been

:24:56.:25:02.

brought to our people, to destroy our people

:25:03.:25:04.

I know, but what I want to ask is, do you think you can win the war?

:25:05.:25:10.

We're all thinking about ways in which this war, which has gone

:25:11.:25:13.

We don't want it to be like the Lebanese civil war,

:25:14.:25:17.

President Assad is not thinking about himself,

:25:18.:25:27.

he is thinking about Syria and about the Syrian people.

:25:28.:25:36.

It is our institutions, our schools, our army that has been destroyed.

:25:37.:25:38.

We want to stop this war, we want to stop the bloodshed.

:25:39.:25:41.

There are over 30,000 terrorists and mercenaries who have

:25:42.:25:46.

been brought to Syria, they are butchering our people.

:25:47.:25:49.

The West keeps calling it a civil war, it is not a civil war.

:25:50.:26:00.

I understand the way you want to frame the war is not

:26:01.:26:03.

I understand that you want to say it is bad foreigners

:26:04.:26:09.

We know that the war is a bit more complicated than that,

:26:10.:26:12.

which is why we persist in calling it a Civil War, even though,

:26:13.:26:16.

of course, lots of foreign powers are at fault.

:26:17.:26:18.

Let me just ask you about more immediate issues.

:26:19.:26:22.

Do you think, is the Syrian government position that there

:26:23.:26:24.

There was not a single gunshot in which the Syrian government

:26:25.:26:28.

refused to cooperate with the Russians and the Americans

:26:29.:26:32.

It is those terrorists who at every single juncture refused to adhere

:26:33.:26:40.

And yet we don't see the West pointing fingers at the terrorists.

:26:41.:26:45.

We see the West pointing fingers at the Syrian government.

:26:46.:26:48.

The Syrian government is the one who looks like the West,

:26:49.:26:59.

it is not the terrorists who look like the West.

:27:00.:27:01.

I could explain why but I'm not going to because we don't have time.

:27:02.:27:04.

The suggestion from the Americans is that there may be some kind

:27:05.:27:08.

of no-fly zone over large parts of Syria, northern Syria.

:27:09.:27:13.

Could you, Syria, agree to the idea of a no-fly zone as part

:27:14.:27:17.

Because a no-fly zone is a huge violation of our sovereignty.

:27:18.:27:24.

Do you think the Syrian government, as you look back over the last five

:27:25.:27:28.

years, what mistake, what is the biggest mistake

:27:29.:27:30.

Is it not having conceded to the demonstrators early

:27:31.:27:35.

Is it the barrel bombing or the chlorine gas?

:27:36.:27:42.

Is it not having come to the negotiating table earlier?

:27:43.:27:45.

What do you see as the biggest mistake your side has made or do

:27:46.:27:48.

you think you have made no mistakes at all, it is only everybody else

:27:49.:27:52.

Unfortunately, I come here and I take my time out in order

:27:53.:28:02.

to address you and your respectable audience and all I get is accusatory

:28:03.:28:06.

questions that are taken from a media that has taken

:28:07.:28:09.

Everyone speaks about barrel bombs and chlorine and nobody accepts,

:28:10.:28:16.

to come to the country and see exactly what is going on.

:28:17.:28:19.

We actually do have people, the BBC sends people to Syria

:28:20.:28:22.

Can I ask when you were last outside Damascus, just out of interest?

:28:23.:28:27.

Because it must be quite difficult to travel.

:28:28.:28:31.

When were you last able to get to Aleppo, for example?

:28:32.:28:34.

Personally, I haven't been travelling to Aleppo

:28:35.:28:39.

but there are many people from Aleppo who are coming

:28:40.:28:42.

here and from here who are going to Aleppo and who are

:28:43.:28:45.

So we are all a bit reliant on second-hand reports.

:28:46.:28:51.

Thank you very much for talking to us.

:28:52.:28:53.

Theresa May is facing a bit of criticism from supporters

:28:54.:29:04.

of David Cameron for dismantling his legacy - with the return of grammar

:29:05.:29:07.

schools and the very public sacking of George Osborne.

:29:08.:29:09.

But Newsnight has learnt that she is not holding back

:29:10.:29:12.

and is preparing changes to how the Conservative party is run

:29:13.:29:14.

Nick Watt is with me. What have you learned? Newsnight understands that

:29:15.:29:30.

a race me is taking a very hard look at how the Conservative party raises

:29:31.:29:35.

money and the signals that sends out. I understand that in her sights

:29:36.:29:40.

is the annual Black and white party for the party, this takes place

:29:41.:29:44.

every February, lots of champagne, they got into trouble if you years

:29:45.:29:47.

ago when the auction and an internship, not sending out the

:29:48.:29:51.

right signal! No decisions have been made about dumping the name but I

:29:52.:29:55.

think the feeling is that they need to do this differently and there is

:29:56.:30:07.

talk about how maybe you could have a series of parties outside London.

:30:08.:30:09.

I think that Theresa May thinks that sort of event really does not sound

:30:10.:30:12.

very good signal, does not fit in with their mission. To champion the

:30:13.:30:14.

struggling middle classes. And I understand from Downing Street that

:30:15.:30:17.

she is thinking of taking quite a look at how wider fundraising, is

:30:18.:30:20.

applied to be so reliant on hedge funds and also looking at imposing

:30:21.:30:25.

that ?50,000 cap on individual donations. The Labour Party will not

:30:26.:30:28.

like that, they say that will be hostile because that would harm

:30:29.:30:29.

their trade union donations. Do you feel you're getting a picture

:30:30.:30:37.

of Theresa May, the Prime Minister and what she will be like? She made

:30:38.:30:42.

her name in 2002 when she said there was a danger the Conservative Party

:30:43.:30:45.

could look like the nasty party. She clearly thinks it looks like the

:30:46.:30:49.

elitist party wants to move away from that. It also shows how she

:30:50.:30:53.

wants to run the Conservative Party very differently. Patrick McLachlan,

:30:54.:30:57.

the party chairman has gone back to the traditional role, he sits in the

:30:58.:31:02.

Cabinet in the Woakes Cecil Parkinson did under Margaret

:31:03.:31:11.

Thatcher and he does the two bits, runs the machinery century, out in

:31:12.:31:13.

the country. She wants to get away from the split role when the

:31:14.:31:15.

fundraising was done by Andrew Feldman, David Cameron's big body.

:31:16.:31:18.

She wants to get away from that but there murmurings maybe she does need

:31:19.:31:21.

to realise that money does need to be raised and there are some

:31:22.:31:26.

concerns among Tories that know about fundraising who say, watch

:31:27.:31:30.

out, you need to be careful, we do need to raise money. Nick, thank

:31:31.:31:31.

you. The voting is over in Labour's

:31:32.:31:32.

leadership election. The results will not be counted

:31:33.:31:34.

as quickly as a vote on Strictly. We have to wait to Saturday,

:31:35.:31:37.

but hey, you know who's One person who was a leadership

:31:38.:31:40.

candidate himself once, but whose career has had some

:31:41.:31:44.

interesting turns since, One time sidekick to Gordon Brown,

:31:45.:31:47.

then a job in the Cabinet, Shadow Chancellor,

:31:48.:31:50.

he has been around. A very good evening to you. Thank

:31:51.:32:01.

you for coming in. Good to be here. How bad is it that Jeremy Corbyn is

:32:02.:32:05.

going to win the Labour Party, do you think? I think the country needs

:32:06.:32:09.

a strong opposition that can be a credible party of government. At the

:32:10.:32:12.

moment the verdict of the voters is the Labour Party is not a credible

:32:13.:32:17.

party of government. I'm afraid Jeremy Corbyn has brought in new

:32:18.:32:21.

members, he might win the leadership election among the new members and

:32:22.:32:25.

members of the Labour Party, but the issue is, what does the country say?

:32:26.:32:29.

If Jeremy had succeeded in a great boost in the opinion polls, that

:32:30.:32:33.

would be different, but I'm afraid at the moment the verdict of people

:32:34.:32:42.

in marginal seat is they don't feel that Labour at the moment is

:32:43.:32:45.

speaking for them. Until that changes, I'm afraid Labour will be a

:32:46.:32:47.

party of opposition and that's not good enough, we should be a party of

:32:48.:32:50.

government. What you think went wrong with the Owen Smith campaign?

:32:51.:32:54.

Is it about him, the candidate, the pitch? What happened? Clearly the

:32:55.:32:59.

membership of the Labour Party has changed very substantially over the

:33:00.:33:03.

last year and a half. Jeremy Corbyn is clearly speaking for, in touch

:33:04.:33:09.

with the members of the Labour Party, it seems, because they are

:33:10.:33:12.

voting for him in large numbers. Owen Smith was almost the outsider,

:33:13.:33:17.

challenging the incumbent. The problem is, in a democracy it is not

:33:18.:33:22.

the members of the party who elect the government, it's the voters. I

:33:23.:33:26.

don't remember a time where the Labour Party membership and its

:33:27.:33:30.

views had become so disconnected from where the marginal seat, the

:33:31.:33:36.

swing voter, the centre-left vote is an issue after issue, things are

:33:37.:33:40.

pulled apart. To be fair to Jeremy, if he wins, he is winning because he

:33:41.:33:45.

speaking for his members. The failure, and you are part of this

:33:46.:33:48.

scum and new Labour is part of this, the failure is, is it not, that your

:33:49.:33:53.

site, Owen Smith and your clan have not managed to grip 500,000 people

:33:54.:34:01.

in the same way Jeremy Corbyn did? Jeremy Corbyn has mobilised and

:34:02.:34:07.

infused a lot of people and for some reason the other wing of the party

:34:08.:34:13.

just can't? What's wrong? In this world, where numbers are being

:34:14.:34:16.

recruited on the mentorship has grown, the only answer in the end,

:34:17.:34:22.

for the centrist mainstream centre-left of the Labour Party, is

:34:23.:34:27.

to do the same. But in the end, I know from general elections and how

:34:28.:34:31.

you win, you have to have a compelling vision, which people

:34:32.:34:35.

think reflects their view of the world. Jeremy clearly has a complete

:34:36.:34:39.

vision that represents members views and I think Owen has been saying, I

:34:40.:34:45.

sort of share your views, but I'm not Jeremy Tilse I don't think in

:34:46.:34:48.

the end that will work. Labour is going to have to say, or the PLP,

:34:49.:34:54.

the mainstream Labour MPs are going to have to say, we have a view of

:34:55.:34:58.

the world which is not the same as the Conservatives, not the same as

:34:59.:35:01.

new Labour but also not the same as Jeremy Corbyn's... He didn't define

:35:02.:35:07.

himself enough? I think it is very difficult for Owen when you have

:35:08.:35:13.

such a short campaign, to do that. I think he chose not to do that. Chose

:35:14.:35:18.

to be as close to Jeremy as he could be, that's not going to work. Look

:35:19.:35:25.

back to when Labour was in power. Somehow, at some point, now you look

:35:26.:35:28.

back on it looks as though there was a bit of a wedge between traditional

:35:29.:35:32.

Labour voters and the new Labour project. A lot of them went to Ukip,

:35:33.:35:39.

some went to Jeremy Corbyn, who is not New Labour at all. Is that a

:35:40.:35:48.

single thing, is it about the immigration, the polls in 2004,

:35:49.:35:53.

2005, when we had unrestricted immigration and no one else in

:35:54.:35:57.

Europe did? Is it about the crash? What do you think whether one or two

:35:58.:36:01.

things that led to that? I don't think it's one thing and I think in

:36:02.:36:04.

some ways the problem started earlier than that. 1997, Labour said

:36:05.:36:09.

we can run the economy competently, we can be tough with the public

:36:10.:36:13.

finances and invest in the schools and hospitals. We can reverse the

:36:14.:36:20.

unfairness of the Tory years. From 97-2001 that was compelling. After

:36:21.:36:25.

2001, a weak Conservative leader. Labour turned on itself. We started

:36:26.:36:29.

to be defined by arguments about whether we were going to privatise

:36:30.:36:33.

the NHS or not, which was completely out of touch of whether country was

:36:34.:36:37.

and where the members were. It started earlier. On top of that you

:36:38.:36:41.

have the global financial crisis, which we didn't see manage, the

:36:42.:36:47.

globalisation of labour, a problems for communities up and down the

:36:48.:36:50.

country... China, industry moving to China over that period? I think we

:36:51.:36:56.

thought in 2001 globalisation would be about companies moving to China.

:36:57.:37:00.

What we never saw was that globalisation would actually be

:37:01.:37:03.

people moving from Poland and the Czech Republic to work in Britain. I

:37:04.:37:09.

don't think in our country, France, Germany, America politics has coped

:37:10.:37:13.

with that global financial crisis or the mobility of labour or the

:37:14.:37:17.

squeeze on medium incomes at a time when incomes at the top have been

:37:18.:37:22.

rising so fast. All of those things meant the centrists, centre ground,

:37:23.:37:25.

which said we could grip a manage this, people said, you are not doing

:37:26.:37:31.

so well. Why has it not really work? In those circumstances populism

:37:32.:37:35.

techs over, whether it is Donald Trump, Marine le Pen or Jeremy

:37:36.:37:39.

Corbyn. It's easier to communicate in a protesting way, it's not a

:37:40.:37:45.

manifesto for government. Ed Balls, thank you very much indeed. Let's

:37:46.:37:50.

take a quick look at the the Times's from page. Our story, MI6 hires

:37:51.:37:59.

hundreds more spies. That is it from us.

:38:00.:38:00.

We leave you with great news for TV post-production geeks.

:38:01.:38:03.

The ReelSteady image stabilisation software plugin for Adobe

:38:04.:38:05.

After Effects has been thoroughly tested and works rather well.

:38:06.:38:10.

Why are we telling you this interesting but slightly niche fact?

:38:11.:38:12.

Well, the stabiliser software has now been tested with the help

:38:13.:38:15.

of a legendary GoPro movie - that of basejumper Graham Dickenson

:38:16.:38:17.

In case you're wondering, yes he used a parachute.

:38:18.:38:28.

Vive la France! Vive la France!

:38:29.:39:18.

across western Scotland and Northern Ireland. Plenty of sunshine

:39:19.:39:25.

cloud, a bit damp. Eastern Scotland will see some showers, into the

:39:26.:39:32.

cloud, a bit damp. Eastern Scotland of Northern Ireland later on. Plenty

:39:33.:39:32.

of sunshine in of Northern Ireland later on. Plenty

:39:33.:39:36.

north-west up and having a sunny day that some

:39:37.:39:44.

will brighten up across northern England, with quite a

:39:45.:39:50.

will brighten up across northern across East Anglia and the

:39:51.:39:50.

south-east. Through the afternoon across East Anglia and the

:39:51.:39:57.

quite warm, 20 or 21 the high. across East Anglia and the

:39:58.:40:03.

glum start much of Wales in south-west

:40:04.:40:04.

Download Subtitles

SRT

ASS