:00:10. > :00:13.Tonight, a chorus of criticism from Europe, as Cameron's vetos labelled
:00:13. > :00:17.selfish nationalism. There are always for Britain to return its
:00:17. > :00:21.rebate money. The head of the commission says the PM's demands
:00:21. > :00:25.were unworkable. The United Kingdom, in exchange for giving its
:00:25. > :00:30.agreement, asked for specific protocol on financial services,
:00:30. > :00:35.which, as presented, was a risk to the integrity of the internal
:00:35. > :00:38.market. This made compromise impossible.
:00:38. > :00:44.We will discuss the implications for Britain.
:00:44. > :00:50.One step closer to the God particle, are we about to solve the mystery
:00:50. > :01:00.of mass in the universe. Earlier scientists got their first
:01:00. > :01:01.
:01:01. > :01:11.tantalising results, as they hone in on the his boson. We take you
:01:11. > :01:18.
:01:18. > :01:21.So, the recriminations from Europe have begun in full, today two
:01:22. > :01:25.senior figures voiced their criticism of David Cameron's's
:01:25. > :01:28.decision to veto the new treaty, calling it lacking in solidarity.
:01:28. > :01:31.Jose Manuel Barroso, said the demands made by the Prime Minister
:01:31. > :01:36.could have undermined the rules of the Common Market, and the leader
:01:36. > :01:40.of the European People's Party, the largest group in parliament, called
:01:40. > :01:44.on Britain to return its budget rebate as a result of the decision.
:01:44. > :01:47.The split with Britain has distracted attention from the fact
:01:47. > :01:52.that the separate treaty, agreed by the other 26 members, has failed to
:01:52. > :01:58.take the jitters out of the markets. Tonight, amid accusations that
:01:58. > :02:03.Britain wants to break the internal market, we ask if Britain's demands
:02:03. > :02:08.were unreasonable and what happens now.
:02:08. > :02:11.Their dream of a united Europe shattered. Many on the continent
:02:11. > :02:16.that David Cameron cold shouldered have wasted no time getting their
:02:16. > :02:18.own back on Britain. Today, in the European Parliament, the leader of
:02:18. > :02:23.the influential grouping that British Conservatives abandoned
:02:23. > :02:27.some years ago, even threatened the rebate on the UK's budget
:02:27. > :02:31.contributions. Hard won fruit of so many negotiations.
:02:31. > :02:34.TRANSLATION: The British isolation clearly shows that country's
:02:34. > :02:38.Government regards the European Union as a simple free trade area,
:02:38. > :02:42.it has no consideration for solidarity and responsibility
:02:42. > :02:47.towards its partners, and that, in my view, implies a change in the
:02:47. > :02:51.behaviour of the 26, and also to an extent, within the European
:02:51. > :02:56.institutions, in behaviour towards that country, in particular I think
:02:56. > :03:01.the British check is now up for question. Meanwhile, this former
:03:01. > :03:04.Prime Minister, scorned a language he's usually happy to use. Tran
:03:04. > :03:07.President, I will be speaking my native language today, because I
:03:07. > :03:13.don't think English would be a very appropriate language to use!
:03:13. > :03:18.In the end, though, he did revert to plain English, to deliver this
:03:18. > :03:21.swipe at Mr Cameron. To say it with an English expression to our
:03:21. > :03:27.British friends, when you are invited to the table, either it is
:03:27. > :03:30.as a guest or otherwise you are part of the man u. The commission's
:03:30. > :03:35.President, often considered an anglophile, blamed British
:03:35. > :03:41.intransigence for the failure of his attempts to bridge differences
:03:41. > :03:44.at last week's summit. Fortunately we haven't seen a split between the
:03:44. > :03:50.European Union between the 17 and the 10, this was indeed the
:03:50. > :03:55.greatest risk ahead of the summit. This is not an agreement at 17 plus,
:03:55. > :04:00.but an agreement of 27, my mus. the single market, finally
:04:00. > :04:03.established by -- minus. But the single market is the aspect
:04:03. > :04:06.of British intergrai, that Prime Ministers, including Margaret
:04:06. > :04:10.Thatcher, and David Cameron, have championed for more than 20 years,
:04:10. > :04:15.would the UK really compromise it. The single market only runs because
:04:15. > :04:23.it runs on the basis of qualified majority voting. If you give each
:04:23. > :04:25.of the 27 nations a veto on each piece of findishly complicated of
:04:26. > :04:33.financial services regulations, chemical regulations, the single
:04:33. > :04:37.market would never have worked. That is what Margaret Thatcher knew,
:04:37. > :04:42.that is why she put it in place in the first place. Now for Cameron
:04:42. > :04:46.say yes we will undermine that principle, Barroso had an issue
:04:46. > :04:50.with that. David Cameron used his veto, he said, to defend the City,
:04:50. > :04:54.but did he need to? One of the proposed European measure that is
:04:54. > :04:59.institutions here most fear, a possible tax on financial
:04:59. > :05:03.transactions, can only be levyed by unanimity any way. As for other
:05:03. > :05:07.regulations that can be introduced by qualified majority voting, many
:05:07. > :05:12.say that Britain's view on financial services would carry
:05:12. > :05:17.particular weight. This investment director, his firm
:05:17. > :05:24.manages �2 billion of assets, isn't sure what exactly in the City the
:05:24. > :05:28.Prime Minister was protecting. the moat kwhrif for this veet --
:05:28. > :05:32.motive for this veto was to protect the financial services industry
:05:32. > :05:36.from Brussels, we are not sure it achieves that outcome. In truth, we
:05:36. > :05:38.are not really clear on what those threats might be.
:05:38. > :05:41.Some people would be quite surprised to hear you say that, you
:05:41. > :05:45.are in the financial services industry, and David Cameron said
:05:45. > :05:49.everything he did at the summit last week he did for you? Well, I
:05:49. > :05:54.think there is, the financial services industry is clearly a very
:05:54. > :06:00.important part of the UK economy. It generate as great deal of tax
:06:00. > :06:06.revenue for the UK Government. The Government needs to be seen to be
:06:06. > :06:12.supporting what is a very important industry. I'm not sure that this is
:06:12. > :06:17.the most effective way to go about it. But, we can understand that the
:06:17. > :06:22.principles behind his actions are sound.
:06:22. > :06:27.Many in the City think Britain, with its Anglo-Saxon wariness of
:06:27. > :06:30.regulation is right to be worried about a union dominated by powers
:06:30. > :06:37.traditionally keener on state interference, but Britain isn't the
:06:37. > :06:41.only EU member that takes that view, some way we would have protected
:06:41. > :06:45.financial interests by all lying with others within the framework of
:06:45. > :06:49.treaty negotiations. The countries most disappointed by Cameron's
:06:49. > :06:52.walkout are Britain's traditional allies, the northern Europeans, the
:06:52. > :06:56.central east Europeans, that have a lot of common interests in Britain,
:06:56. > :07:00.in terms of keeping the single market going, keeping the EU open
:07:00. > :07:05.to international trade, and making sure that the EU doesn't go down
:07:05. > :07:09.the road of more social and tax legislation and harmonisation.
:07:09. > :07:13.These countries want Britain to be in the room, to be a strong voice
:07:13. > :07:18.to stand up for their joint interests. Tonight Downing Street
:07:18. > :07:21.said Mr Cameron had only been seeking equal, not preferential
:07:21. > :07:25.treatment for the financial services industry. Whether that
:07:25. > :07:27.industry and the rest of our economy are sliding into a
:07:27. > :07:32.dangerous isolation, or are now a little safer from the still
:07:32. > :07:37.gathering storm in the your Roy zone s a question even the City
:07:37. > :07:42.doesn't know the answer to. I'm joined by Aino Lepik Von Wiren,
:07:42. > :07:45.the ambassador to the UK for Estonia, Margot James, the
:07:45. > :07:48.Conservative MP, and from Strasbourg the Dutch MEP and vice
:07:48. > :07:53.chair of the European People's Party, Corien Wortmann-Kool, thank
:07:53. > :07:57.you very much for-to-all of you for joining us. Corien Wortmann-Kool,
:07:57. > :08:00.to -- thank you very much to all of you for joining us. Corien
:08:00. > :08:06.Wortmann-Kool, why would Jose Manuel Barroso say that David
:08:06. > :08:13.Cameron's demands undermine the single market? It was actually an
:08:13. > :08:17.example of a very bad timing at a very bad moment to defend the City.
:08:17. > :08:22.Because 26 member states wanted to agree on more fiscal discipline,
:08:22. > :08:28.which would be included in the treaty. It would not affect the UK,
:08:28. > :08:35.but to use this moment, this timing, to get exemptions from financial
:08:35. > :08:39.markets regulation, that is really a very bad, that is not how you co-
:08:39. > :08:43.operate together. Margot James? Well, it never is the right time is
:08:43. > :08:47.it, apparently, to stand up for a very key British interest. Which
:08:47. > :08:49.should be an interest across the whole of the European Union as well.
:08:50. > :08:54.Financial services is not just important to the UK, it is
:08:54. > :09:02.important to everywhere else as well. The British Government is
:09:02. > :09:04.very concerned about the impending threats of regulation. Wasn't it
:09:05. > :09:08.interesting, you heard what the man from the financial services office
:09:08. > :09:13.was saying there, actually this whole idea of demanding unanimity
:09:13. > :09:16.on the Robinhood tax is something already in place. You -- Robin Hood
:09:16. > :09:20.tax is something already in place, you didn't need to make that
:09:20. > :09:24.demand? That is not the only one coming down the track, that is one
:09:24. > :09:28.of more than 40 threatening regulations coming over on to the
:09:28. > :09:35.financial services industry. There is the whole issue of having to
:09:35. > :09:41.clear all our euro trade over on the continent as well. That is not,
:09:41. > :09:49.that is subject to qualified majority votinging, it is not just
:09:49. > :09:55.the -- majority voting, it is not just that which is the headline-
:09:56. > :09:59.grabber. There is already the need for unanimity, so there was no
:09:59. > :10:03.need? That is only one of 40 regulations on financial services,
:10:04. > :10:07.it is the only one subject to unanimity, all the others are sublt
:10:07. > :10:11.to qualified majority voting. Subject to qualified majority
:10:11. > :10:14.voting. You are the newest member of the eurozone, when you saw the
:10:14. > :10:22.negotiations as a country, did you think that David Cameron's position
:10:22. > :10:28.was attractive to a smaller, newer country like your's? We went to
:10:28. > :10:35.Brussels last week, hoping that all 27 countries could agree on the
:10:35. > :10:39.financial dis Palestinian, and also that the market would regain its --
:10:39. > :10:44.discipline, and also that the market would regain its confidence
:10:44. > :10:50.in the euro. It didn't happen, Estonia is happy about what was
:10:50. > :10:57.decided, because it is nothing new for us, because our budget is
:10:57. > :11:01.balanced, and for us it is new. There is never a moment you would
:11:01. > :11:09.have taken Britain's side, where you would have imagined you being
:11:09. > :11:16.part of the ten, on the outer block? We fully agree with what was
:11:16. > :11:20.decided in Brussels. We are happy that it was 26 countries that it
:11:21. > :11:25.didn't say with 17 and 10, so we are happy about it is decide. We
:11:25. > :11:29.are hopeful that this will now be this new treaty will come as soon
:11:29. > :11:36.as possible, because the most important thing for Estonia now is
:11:36. > :11:41.that the euro will be table and the market will get confidence. Corien
:11:41. > :11:45.Wortmann-Kool, when your leader of the EPP, I'm meaning, talks about
:11:45. > :11:50.selfish nationalism, it is very hard not to think of it as sour
:11:50. > :11:58.grapes towards a leader who, in a big headline, left your grouping a
:11:58. > :12:05.couple of years ago. Well, let's look to today. The attitude of
:12:05. > :12:11.David Cameron. When 26 member states want to agree on something
:12:11. > :12:14.which would not affect the British, on the contrary, the British people
:12:14. > :12:19.would benefit from having the eurozone crisis calmed down, so it
:12:19. > :12:25.would actually be in the interests of the British. When such a moment
:12:25. > :12:30.is chosen to get something additional out for the British, I'm
:12:30. > :12:35.afraid, oh no I'm not afraid, I expect this will really harm the
:12:35. > :12:39.British position on the negotiating table, on key pieces of legislation,
:12:39. > :12:42.which are currently under discussion with regards to
:12:42. > :12:46.financial markets and regulations. It will easily work the other way
:12:46. > :12:50.round. You heard it there, Margot James will be isolated from this
:12:50. > :12:58.decision? Well, there is a great deal more to be gone through before
:12:58. > :13:03.it is all settled down. I respect the other view, but there is no
:13:03. > :13:07.doubt that the safeguards that David Cameron argued for were
:13:07. > :13:11.modest, moderate, they were not extreme in any way, and he
:13:11. > :13:15.exercised what is our country's right to exercise. In the defence
:13:15. > :13:18.of our interests. Of course it is in our interests to have the
:13:18. > :13:22.eurozone crisis solved. We have been arguing that for months now.
:13:22. > :13:25.Let me just take it a step further, because the Times front page I'm
:13:25. > :13:29.hearing is talking about Tory euro- sceptics trying to force Cameron's
:13:29. > :13:33.hand to push for a referendum on Europe now. Is that something that
:13:33. > :13:36.he will do, is he prepared to go that far? I don't think so,
:13:36. > :13:39.obviously you would have to ask him that. Do you know if he has ruled
:13:39. > :13:43.it out, would you like that? Nch I don't think the time is right now
:13:43. > :13:50.for a referendum at all. I think the dust has to settle. Even if
:13:50. > :13:55.he's riding high in the polls? still would think that the
:13:55. > :13:59.referendum that we promised was, from before the election, and that
:13:59. > :14:05.was on the Lisbon Treaty, that was ratified, and there is absolutely
:14:05. > :14:10.no commitment from this Government to hold a referendum. Let...Unless
:14:10. > :14:16.There are more powers, could I just say, that are argued to go to
:14:16. > :14:21.Europe. In that case, if there were any treaties that were proposed
:14:21. > :14:24.that would demand more powers go from this country to Europe, then
:14:24. > :14:28.that would automatically trigger a referendum. You have already vetoed
:14:28. > :14:32.a new treaty, the question lies with Britain now, with your
:14:32. > :14:36.Government, will you stop the institutions from functioning in a
:14:36. > :14:43.way that you are table to, because they are 26 not 27, is that
:14:43. > :14:46.something you will do? I think if there is any attempt to use those
:14:46. > :14:50.institutions to regulate the financial services industry, in the
:14:50. > :14:55.way that is being proposed, I would expect the Government to use the
:14:55. > :15:00.law to prevent that from happening, yes. Corien Wortmann-Kool, one
:15:00. > :15:03.thing your leader was saying today, is Britain should return its rebate.
:15:03. > :15:08.He made this rather funny speech, there are no Kalashnikovs, no
:15:08. > :15:13.declaration of war, of course that is a declaration, at least, of a
:15:13. > :15:19.diplomatic war, isn't it? Will you get the rebate back? No, this is a
:15:19. > :15:23.parliament with lively debate, as is the British parliament. So.,
:15:23. > :15:27.what he wanted to make clear is it seems the British are only looking
:15:27. > :15:32.to their own interests, and they only want to get things from the
:15:32. > :15:41.European Union when they like it. But they also have to look to the
:15:41. > :15:47.other 26. He was actually making clear that would be needed in order
:15:47. > :15:51.to continue a fruitful co-operation. Aino Lepik Von Wiren, do you think,
:15:51. > :15:54.briefly, that David Cameron made the wrong decision, when you saw
:15:54. > :16:04.the way he negotiated, he didn't bring any other allies on board,
:16:04. > :16:09.was that a mistake? We understand that the UK its decision. But
:16:09. > :16:14.Estonia hopes in the future we will have 27 on the new agreement, and
:16:14. > :16:18.it could be incorporated into the basic agreement in the EU, that it
:16:19. > :16:24.will happen as soon as possible. Thank you very much.
:16:24. > :16:30.Later in the propbl, we will be walking you through some of -- in
:16:30. > :16:34.the programme, we will be walking you through some of the economic
:16:34. > :16:39.blizzards in rather graphic form. The charts have been singled out by
:16:39. > :16:42.some of our economists for what they tell us about the year we have
:16:42. > :16:46.just had. Before then, a step closer to understanding the mystery
:16:46. > :16:49.of mass, the scientists confirm they are on the verge of finding
:16:49. > :16:54.what is called the God particle. The Higgs Boson is the last missing
:16:54. > :17:01.piece in a leading theory, known as the standard model, which describes
:17:01. > :17:09.how particles and forces interact to make the world we see about us.
:17:09. > :17:13.Over to SERN, to our science editor. There is great excitement today in
:17:13. > :17:19.Geneva with results that scientists say may be tantalising hints that
:17:19. > :17:24.the Higgs Boson exists. Hundreds of scientists piled into packed
:17:24. > :17:32.auditorium, and heard the latest data on the particle smashing
:17:32. > :17:38.machine, the hadron collider, they looked at various graphs, which was
:17:38. > :17:42.largely impet traibl to journalists there. The reason it has physicists
:17:42. > :17:49.excited, is the two teams working separately have seen a spike in
:17:49. > :17:55.their data at the same point, 125 gig ga electron votes, that is a
:17:55. > :17:59.possible measure of the mass of the Higgs Boson. The mass range for the
:17:59. > :18:04.Higgs Boson was like this at the beginning of the year, and now it
:18:05. > :18:09.was moving and now we are here. In the open window, which is the most
:18:09. > :18:12.likely one, there are fluctuations and intriguing hints, that is
:18:12. > :18:17.exciting. Does that mean you are seeing the first hints of the Higgs
:18:17. > :18:20.Boson? We may be seeing the first hints of the Higgs Boson. One of
:18:20. > :18:25.the things we have just found out this week is the mass regions where
:18:25. > :18:32.we are looking for the Higgs, the places where we see the possible
:18:32. > :18:37.signals for the Higgs, it turns out they are consistent geen the two
:18:37. > :18:41.experiments. Why is it important? If they are in the same place the
:18:41. > :18:51.Higgs is there, if it was not there there would be no reason for them
:18:51. > :18:52.
:18:52. > :18:55.to be in the same place. Does this mean the Higgs exists or not?
:18:55. > :19:05.Unfortunately, on that crucial point we have lost our science
:19:05. > :19:15.
:19:15. > :19:23.editor, but let's hear what she We don't really know why everything
:19:23. > :19:28.around us exists. Why the universe has form. Why objects have mass.
:19:28. > :19:37.The fundamental question about why we are here remains unanswered. But
:19:37. > :19:41.today's announcement could change all of that. For decades scientists
:19:41. > :19:46.have been searching for a particle, a particle that will give us an
:19:46. > :19:52.insight into the workings of the universe, the Higgs Boson. To find
:19:52. > :19:57.it, they have had to recreate the conditions of the Big Bang.
:19:57. > :20:03.Billions have been spent in the hunt for the elusive Higgs, to
:20:03. > :20:09.detect it, scientists have built the largest particle accel lator,
:20:09. > :20:12.the Large Hadron Collider, an 18- mile tunnel below the French-Swiss
:20:12. > :20:16.border. Sub atomic particles are fired through opposite directions
:20:16. > :20:22.through the tunnel, at a rate approaching the speed of light.
:20:22. > :20:25.With the help of magnets they smash into each other. Detectors monitor
:20:25. > :20:34.the conditions, and search the debris for signs of the Higgs Boson.
:20:34. > :20:38.But what is the Higgs Boson? For the last two years, scientists at
:20:38. > :20:43.the SERN nuclear laboratory have been searching their results on the
:20:43. > :20:50.hunt for the Higgs. The theory about its existence has been around
:20:50. > :20:54.for 50 years. Until now no-one had seen any sign of it.
:20:54. > :20:59.As the universe cooled after the Big Bang, an invisible force known
:20:59. > :21:04.as the Higgs field formed, together with its associated Higgs Boson
:21:04. > :21:08.particle. The field permeates the entire universe, and when a
:21:08. > :21:11.particle without mass passes through the field it accumulates
:21:11. > :21:17.mass, it develops form, that is why there is something rather than
:21:17. > :21:23.nothing. It is very exciting, and it is also very important, because
:21:23. > :21:30.physics needs us to be driven by a mixture of good theories, but of
:21:30. > :21:35.solid experimental data. This hunt for the Higgs is like fishing where
:21:35. > :21:41.instead of using modern tools you were in the water from the pond. It
:21:41. > :21:46.might be looking at the endous, but it is the only very clean way -- at
:21:46. > :21:50.the endous, but -- tedious, it is the only way when you have removed
:21:50. > :21:53.the water from the pond to find any fish. In the run up to today's
:21:53. > :21:58.announcement there was a real buzz, a sense we were on the verge of
:21:58. > :22:03.something big. I would say it would be a milestone in this particular
:22:03. > :22:08.field. Whatever the results will be. We took data now for two years, and
:22:08. > :22:14.I was pretty much involved in data taking. Of course, it is big
:22:14. > :22:21.excitement. In the control room at CERN, they are testing the
:22:21. > :22:25.Clydeer's capabilities. Collider's capablities. When the machines
:22:25. > :22:30.aren't being used, it is time for the engineers to see how far they
:22:30. > :22:37.can push it to its limits. Harnessing the power of this
:22:37. > :22:40.machine is very exciting. It has become a Holy Grail quest, a large
:22:40. > :22:46.part of the motivation for the Large Hadron Collider was to find
:22:46. > :22:50.the Higgs Boson, or whatever replaces it, this really is a
:22:50. > :22:56.culminating point. The Higgs Boson is part of what is known as the
:22:56. > :23:01.standard model of physic -- physics. This is an instruction booklet for
:23:01. > :23:08.how the Cosmos works, to explain how the different particles and
:23:08. > :23:11.forces react. This is the former head of theoretical physics at CERN,
:23:11. > :23:19.Anwar expert at spotting particles amongst the debris. The standard
:23:19. > :23:23.model explains all the fundamentals of particle physics, it can be seen
:23:23. > :23:28.as on enormous jigsaw puzzle and there is a bit missing in the
:23:28. > :23:35.middle. We have been looking for it for 30 years, and behind the sofa
:23:35. > :23:40.we are finally finding it. Without the Higgs, the standard
:23:40. > :23:46.model is incomplete, finding it would help confirm everything we
:23:46. > :23:49.know about modern physics. Built layer upon layer since 19000. But
:23:49. > :23:59.then in September, something happened that could blow all of
:23:59. > :24:01.
:24:01. > :24:06.this apart. For nearly a century scientists
:24:06. > :24:10.thought nothing could travel faster than the speed of light.
:24:10. > :24:13.neutrons are arriving faster than they should. The speed of light is
:24:14. > :24:17.not an abitary speed limit we made up because we like it, it is built
:24:17. > :24:22.into our understanding of the very space and time around us. It is the
:24:22. > :24:30.very stage on which physics happens. What has so rocked the world of
:24:30. > :24:34.physics was a beam of neutrinos, the most common and weird of all
:24:34. > :24:39.fundamental particles. They had been sent 450 miles from CERN to a
:24:39. > :24:44.laboratory underground, deep inside a mountain in Italy. But they had
:24:44. > :24:48.arrived 60 billionths of a second sooner than light would have done
:24:48. > :24:53.travelling the same distance. Some scientists thought CERN had sent
:24:53. > :24:58.them in bunches too wide to monitor accurately. So they did it again,
:24:58. > :25:04.with a narrower beam. We sent the beam for two nanoseconds to the
:25:04. > :25:07.target producing neutrinos and they measured it in Italy, you have a
:25:07. > :25:12.precise timing measurement on it, it was the same as the measurements
:25:12. > :25:16.they did before with the long beams. Professor Jon Butterworth works in
:25:16. > :25:21.one of the two teams searching for the Higgs at CERN, he thinks there
:25:21. > :25:26.are many ways the neutrino experiment could have gone wrong.
:25:26. > :25:32.It is such an out-there result, there are many, many thousands of
:25:32. > :25:35.results that confirm relativity, and one that challenges it. Before
:25:35. > :25:39.you throw it away and challenge our understanding so much you want to
:25:39. > :25:44.be sure. In the end it was a careful experiment, they have
:25:44. > :25:47.raised any of the systematics that people raised initially, you have
:25:47. > :25:54.to repeat the result until you are sure, as with any science. Making
:25:54. > :26:02.sense of these results throws up all sorts of possiblities. Some
:26:02. > :26:07.theories talk of ten dimensions of space. So could the neutrinos have
:26:07. > :26:14.taken a short cut through another dimension? Arriving in Italy, back
:26:14. > :26:17.in our dimension sooner than expected.
:26:18. > :26:23.The result is so revolutionary, it has to be repeated before it is
:26:23. > :26:30.seen as robust, but even if it is, would it mean anything to all of us
:26:30. > :26:34.in the real world. I'm sure if you asked Einstien back in 1905 what
:26:34. > :26:39.real world applications would his theory of relativity have, he
:26:39. > :26:44.wouldn't give an answer. Now of course we know that relativeity has
:26:44. > :26:48.to be taken into account in the global positions system, sat-nav.
:26:48. > :26:52.Travelling faster than the speed of light, this is perhaps a crazy
:26:52. > :26:59.remark. But I notice that in the financial world, they are now
:26:59. > :27:03.timing their trades at the level of nanoseconds. So if you could make
:27:03. > :27:08.neutrinos go a little bit faster than light, maybe someone would
:27:08. > :27:12.find a competitive edge. With each of us facing our daily troubles,
:27:12. > :27:18.and with the world of finance and politics in turmoil all around us,
:27:18. > :27:22.why should it matter if we find the Higgs and whether the neutrinos go
:27:22. > :27:27.faster than the speed of light, if there is some deeper symmetry under
:27:27. > :27:35.the surface or not. There is in my opinion a very important means for
:27:35. > :27:41.investing, this is very tiny amount of our wealth, in the future. In
:27:41. > :27:50.what is curiosity-driven research. Without that, without that, we are
:27:50. > :27:55.doomed. It has been within of the most incredible years for physics,
:27:55. > :27:58.hints of the Higgs, and from nowhere, particles that could have
:27:58. > :28:05.broken the cosmic speed limit, we could be on the verge of a new
:28:05. > :28:10.physics, a new understanding of our universe, and our place within it.
:28:10. > :28:18.We are going to tryen to that slightly dodgy line to -- try on
:28:18. > :28:24.that slightly dodgy line to cross to Geneva to when of the CERN
:28:24. > :28:28.physicists join in the hunt for Higgs. She talked there about the
:28:28. > :28:31.sense of this year really, the moment that physics had become fun
:28:31. > :28:38.again, and had become revolutionary. Why do you think this is so central
:28:39. > :28:43.to that, why does this matter? has been a fantastic year for CERN
:28:43. > :28:45.and the Large Hadron Collider, we have been waiting for this for 20
:28:45. > :28:49.years, people have been talking about building these experiments.
:28:49. > :28:54.Already in the summer, in the units we count the number of collision
:28:54. > :28:58.that is have been created in the LHC, we had one inverse part of
:28:58. > :29:02.data to look at. We were already starting to exclude certain masses
:29:02. > :29:07.for the standard model Higgs Boson, today we were looking at five
:29:07. > :29:12.inverse parts of data, five-times more data. For us it was a
:29:12. > :29:15.tremenduously exciting day. The Higgs Boson is a key part of the
:29:15. > :29:19.standard theory, the standard model that describes the way particles
:29:19. > :29:22.interact, it describes the forces between the particles. Without the
:29:22. > :29:25.Higgs Boson, none of the fundamental particles would have
:29:25. > :29:30.any mass, they would whizz around at the speed of light. The universe
:29:30. > :29:33.would not at all be as we know T the standard model has been
:29:34. > :29:38.extremely successful in predicting the way particles interact, the
:29:38. > :29:41.results of all of the collision experiments we have done up to now
:29:41. > :29:45.are very well described by the standard model. Without the Higgs
:29:45. > :29:48.Boson, the whole things falls apart. The question Susan never got to
:29:48. > :29:52.answer before she disappeared, probably into a parallel universe
:29:52. > :29:58.or different dimension, is does the Higgs exist, would you put money on
:29:58. > :30:02.that now? We are certainly a step closer, we know the Higgs Boson is
:30:02. > :30:06.pinned down into a much smaller range of mass than we knew before.
:30:06. > :30:11.Within that mass range we have a tantalising hint, we have spikes
:30:11. > :30:15.from the two experiments, ATLAS and CMS, what's more they have looked
:30:15. > :30:18.at different ways the Higgs Boson might decay, so different channels,
:30:18. > :30:22.different Higgs decay modes, we are seeing a hint of something lining
:30:22. > :30:25.up. We are not at the point where we could claim we have evidence of
:30:25. > :30:29.the Higgs Boson. The Last Years of Edward Thomas experiment, there is
:30:29. > :30:33.still something like a 1% probability that the effects we are
:30:33. > :30:38.seeing today could be a fluctuation of the backgrounds, for CMS about
:30:38. > :30:42.5%. So it is not the end of the road for us. This is the way a
:30:42. > :30:45.Higgs Boson signal would be emerging, but it is too early to
:30:45. > :30:49.say something definitive. Let me ask you. There has been, as we can
:30:49. > :30:53.hear from you, huge progress in this one area, if you expand this
:30:53. > :30:59.out, where else do you think physics is becoming truly ground-
:31:00. > :31:04.breaking now, what is exciting for you? The LHD programme, the Higgs
:31:04. > :31:09.Boson discovery or exclues is just one component of the LHC programme.
:31:10. > :31:14.The next steps for the Higgs will be to finalise the results we were
:31:14. > :31:17.looking at today. Today we were showing preliminary results, in the
:31:17. > :31:22.next few months we will publish those results. We will combine the
:31:22. > :31:26.results of the two experiments, ATLAS and CMS, in 2012 we expect to
:31:26. > :31:29.have something like four-times more data. We will be able to close the
:31:29. > :31:33.book on the standard model Higgs Boson in the coming year. But then
:31:33. > :31:36.the Clydeer will be shut down, we will be refurbishing parts of the
:31:36. > :31:40.connections between the magnets and we will be able to resume taking
:31:41. > :31:44.data at twice the energy. We are hoping to then start to explore
:31:44. > :31:50.problems of physics beyond the standard model. One possibility
:31:50. > :31:53.that we are very excited about is the theory of supersymmetry w the
:31:54. > :31:58.low mass Higgs Boson that we may have seen some first glimpses of,
:31:58. > :32:03.this would be consistent with this theory of supersymmetry, that says
:32:03. > :32:08.all the normal particles we know, have a supersymmetric heavier
:32:08. > :32:12.partner. Why supersymmetry is an appealing theory? One thing is does
:32:12. > :32:15.is have the lowest mass supersymmetric particle, which
:32:15. > :32:19.could explain dark matter. The matter we know and love described
:32:19. > :32:23.by the standard model only makes up 4% of the universe, we don't know
:32:23. > :32:26.what 96% of the Cosmos is made of. One of the hopes for the LHC will
:32:26. > :32:29.be that we find a candidate for this missing dark matter that is
:32:29. > :32:35.making up a huge fraction of the universe.
:32:35. > :32:40.We would love to have you back at that point. Thank you very much.
:32:40. > :32:45.Perhaps it was wrong for Twitter to call our next sequence chart porn,
:32:45. > :32:48.br for those interested in economic data, it certainly doesn't get more
:32:48. > :32:51.salacious than this. We have brought together 11 leading
:32:51. > :32:56.economists to single out the graphic that best demonstrates the
:32:56. > :33:01.key trend in this chilly economic year. The results are an know tated
:33:01. > :33:11.and explained. We will ask a few of the contributors afterwards what it
:33:11. > :33:14.
:33:14. > :33:20.the contributors afterwards what it tells us about the Tate we are in.
:33:20. > :33:24.This chart shows the ten-year bonds in the eurozone. Before the euro
:33:24. > :33:28.was created the markets thought there was differences in credit
:33:28. > :33:33.worthiness in different countries. Greece had to pay for more debt,
:33:33. > :33:36.Germany didn't have to pay very much. The euro was created and the
:33:36. > :33:39.markets thought there was no delivering prospects of the
:33:39. > :33:44.different countries. They all merged into one rate, practically.
:33:44. > :33:47.Then we had Lehmans and the financial crisis, and the mood
:33:47. > :33:57.changes significantly. There was clearly no support mechanism for
:33:57. > :34:03.
:34:03. > :34:07.private sector has been paying down debt under zero interest rate
:34:07. > :34:11.circumstances, which is highly unusual. People may be paying down
:34:11. > :34:14.debt at higher interest rates, when the rate is at zero, they should be
:34:14. > :34:20.borrowing and spending money. That is not happening in the UK. It is
:34:20. > :34:23.not happening in the US or in Ireland or in Spain. This is not
:34:23. > :34:33.what we learn in universities. So we are in a completely different
:34:33. > :34:38.
:34:38. > :34:43.world compared to what we learned shows competitiveness of one
:34:43. > :34:47.country against another in Europe, the horzontal axis shows their
:34:47. > :34:55.relative trade performance. The countries in the top lefthand
:34:55. > :35:03.corner have declining competitiveness and declining trade.
:35:03. > :35:06.That is the underlying problem the eurozone is trying to grapple with.
:35:06. > :35:10.This chart a really interesting because it shows the
:35:10. > :35:15.competitiveness problem within the eurozone. Unit labour costs in
:35:15. > :35:20.Germany have hardly risen since the euro was formed. But the vulnerable
:35:20. > :35:25.ones, the ones in trouble, have seen their costs rise by 30-40%. In
:35:25. > :35:28.the old days they could out of that by devaluing their currency. Now
:35:28. > :35:32.they can't, they are locked within the euro. The interesting thing
:35:32. > :35:36.about this, this is not being dealt with at all by any of the summits,
:35:36. > :35:44.negotiations or deals. This is not a problem that can be solved by
:35:44. > :35:48.bailouts, or write-offs. I think the graph is very striking,
:35:48. > :35:52.because it shows so many things in one picture. Firstly, if you look
:35:52. > :35:55.at what happened when Lehman Brothers went down in late 2008,
:35:55. > :35:59.you can see all of a sudden the Bank of England's calculation
:35:59. > :36:05.suggesting the market did think a chance that a country like Ireland
:36:05. > :36:09.would default on its debt in the last four years. Recently you see
:36:09. > :36:16.that is paled into incision with the things happening elsewhere. In
:36:16. > :36:19.Greece there is suggestions of 100% default in the next five years.
:36:19. > :36:24.The reason I think this chart is interesting, is because it tells me
:36:24. > :36:28.that the rate at which the UK economy can grow sustainably over
:36:28. > :36:33.the medium term, which people thought was 2.5% a year. Is now
:36:34. > :36:39.down to half a periods or lower. If the economy does only -- half a per
:36:39. > :36:47.cent or low. If it does that, unless there is deflation, that
:36:47. > :36:54.will mean defaults on mortgages and the banks not lending. That is the
:36:54. > :36:57.issue George Osborne needs to worry issue George Osborne needs to worry
:36:57. > :37:02.about most. Those are our charts, and back by
:37:02. > :37:06.popular demand the Financial Times US managing editor, Gillian Tett,
:37:06. > :37:10.and Ann Pettifor from Prime scam economics. You should have heard
:37:10. > :37:14.the gasps coming out of the corner of the study.
:37:14. > :37:20.Anne, take us through your graph, first of all, and why you think it
:37:20. > :37:25.tells us so much. My graph is taken from the
:37:25. > :37:31.Government, the Treasury's budget report in March, it is striking to
:37:32. > :37:37.me because it shows the growth in private sector debt in Britain from
:37:37. > :37:44.1987-2010. It is taken from the McKenzie report on global debt,
:37:44. > :37:49.they have excluded public debt. That is the bottom bar. It is less
:37:49. > :37:54.than 50% of the beginning, and rises just above 50 towards the end.
:37:54. > :37:58.So relative to that vast amount of private sector debt, public debt is
:37:58. > :38:01.very small. But all of the public policy making and politicians and
:38:01. > :38:10.economists are focused on the consequence of the growth of that
:38:10. > :38:15.private debt. When the Government talks it talk about the problem
:38:15. > :38:18.with public sector borrowing and bringing that down. If Ann's chart
:38:18. > :38:21.is right the emphasis is completely wrong? The other chart on the
:38:21. > :38:28.Newsnight website looking at the percentage of global Government
:38:28. > :38:31.debt as a percentage the of GDP. It shows since the crisis has began it
:38:31. > :38:38.has shot up very fast. I would say that the creation of Government
:38:38. > :38:42.debt, over the last couple of years, has been extraordinarily rapid, and
:38:42. > :38:46.forecasts for 2012, 2013 continue to see that. In fact, you are
:38:47. > :38:51.looking at a tripling of UK Government debt, in about ten years,
:38:51. > :38:56.if you forecast on a few years. That is why it gets ideolgical?
:38:56. > :39:01.That is because it is a consequence of the crisis. My point is if you
:39:01. > :39:08.don't address the collapse, the delefrpbaging of that private debt
:39:08. > :39:12.now, -- deleverageing of that private debt and focusing on the
:39:12. > :39:17.public debt, you are losing the cause of the crisis. Should the
:39:17. > :39:21.Government sort out private debt, that is not its role? It can't step
:39:21. > :39:25.in a heavy-handed moment now. If you look at the totality of the
:39:25. > :39:31.charts the basic message is telling that many of the fundamental issues
:39:31. > :39:35.to do with the eurozone were absolutely unworkable. You look
:39:35. > :39:39.back at the charts on competitiveness, it is astonishing
:39:39. > :39:43.anybody thought the eurozone could work in its form. It is not just
:39:43. > :39:48.the eurozone that is a problem, the debt is key across the western
:39:48. > :39:53.world, in the UK and US as well. The markets are panicking about it,
:39:53. > :39:58.the level of stress in the markets is worrying. There is one more
:39:58. > :40:02.thing these charts show, it is the defeatism of economists. There
:40:02. > :40:08.aren't solutions in these charts, only problems, only the end of the
:40:08. > :40:12.world, actually. Except for one, that is Ken. If you look at the
:40:12. > :40:14.charts we have seen today, the dashboard we are presenting for
:40:14. > :40:18.policy makers, flying the global economic aeroplane, if you like, it
:40:18. > :40:22.is very different from a decade ago. A decade ago people were watching
:40:22. > :40:26.things like equity markets, and inflation data. It shows in many
:40:26. > :40:31.ways people have been simply watching the wrong metrics in the
:40:31. > :40:35.run up to the crisis. Jo that is what my chart will actually show. -
:40:35. > :40:39.- That is what my chart will actually show. Basically, what
:40:40. > :40:47.Gillian said is completely right, everybody focus on equity markets,
:40:47. > :40:54.bond markets, completely ignore the sexy world of what I have looked at
:40:54. > :41:01.FRA, ORIA spread shart. The FRA is like, the cost of a three-month
:41:01. > :41:07.loan for a bank, and how much more expensive that is, when there is an
:41:07. > :41:12.over night loan from the ECB done over three months. It is the extra
:41:12. > :41:17.cost a bank has to pay for a three- month loan, in these wholesale
:41:17. > :41:23.markets, that are jamming up. In the summer the extra cost was only
:41:23. > :41:27.0.2%, it is now up it a full 1% nor more. If you look it has been
:41:27. > :41:33.forever rising, there is no oh the politician also do something, the
:41:33. > :41:37.rate comes down. Is the ECB on that chart? It is not a real ECB, a rate
:41:37. > :41:41.that is tied to. This is more the banks go into the wholesale market
:41:41. > :41:45.and try to borrow money. This shows you the extra cost of them trying
:41:45. > :41:48.to do that in the wholesale market. This is symptomatic, because the
:41:48. > :41:54.bank is effectively insolvent and people are worried about lending
:41:54. > :42:00.for them. Is this tell us, all the political argument about whether
:42:00. > :42:04.the ECB should step in to bail out the eurozone? But they are stepping
:42:04. > :42:08.in. This is telling us the ECB is not working. The Central Bankers
:42:08. > :42:13.when they try to, all the things they announce, to try to alleviate
:42:13. > :42:19.the problems in the markets t ain't working, clearly. The issue is,
:42:19. > :42:22.this isn't chart born porn, this is chart mang er, it is the way of
:42:22. > :42:27.communicating fatastically complex issues and geeky bits of the market
:42:27. > :42:29.people have ignored for far too long, to the public at large. It is
:42:29. > :42:34.fatastically important to democracy and that politicians understand
:42:34. > :42:40.this stuff and understand the other issues you are pointing too as well
:42:40. > :42:43.Ann. Can I say the only reason economists and politicians came to
:42:43. > :42:48.look at credit masters is because of the great work by Gillian Tett.
:42:48. > :42:51.There is a real interest in the data, the royal data, the peeling
:42:51. > :42:55.away of all the soundbites and the politics, do you think that is
:42:55. > :42:58.because of the state of the summits and the eurozones and all stuff we
:42:58. > :43:02.have talking about? We need to get the public engaged and understand
:43:02. > :43:05.how money goes around the world, or how right now it is not going to
:43:05. > :43:09.around the markets effectively. People don't trust either
:43:09. > :43:14.economists or politicians, because they have been conned. They were
:43:14. > :43:18.told, don't worry, join the euro and there is fairyland there after,
:43:18. > :43:23.go out and take a credit card, borrow to your heart's delight and
:43:23. > :43:28.all will be well, we were encouraged by the politicians and
:43:28. > :43:33.the Alan Green sldfan spans of the world and Central Bank governors,
:43:33. > :43:37.and respected economists. You can also put it aside -- put it on
:43:37. > :43:42.chart. The way you two disagreed about the way you read public-
:43:42. > :43:50.private borrowing suggests that? is about the way economists look at
:43:50. > :43:55.symptoms and not causes. The thing about my charred chart, I think it
:43:55. > :44:01.is ideolgical to have a blindspot for the debts. For a decade we
:44:01. > :44:04.pretended the debt wasn't there and focused on the public sector, that
:44:04. > :44:08.is ideolgical. If can you map a system, you can start to see what
:44:08. > :44:12.people aren't watching, the dark corners, they really matter. Ann
:44:12. > :44:17.deserve as lot of credit, she was trying to highlight these issues
:44:17. > :44:21.many years ago, unfortunately weren't enough people trying to map
:44:21. > :44:27.a system, model it and modify it. We have to map the financial system
:44:27. > :44:31.and work out how to change it. Politicians have very good at
:44:31. > :44:34.blinding us with the science of modelling. The reason why the
:44:34. > :44:39.wholesale credit markets are important, is because if banks
:44:39. > :44:45.can't fund themselves, they cannot then turn around and give that
:44:45. > :44:49.money to businesses and individuals. That is called a credit crunch.
:44:49. > :44:53.Post Lehman, the credit crunch caused massive damage to the global
:44:53. > :44:58.economy, not just the eurozone, the US economy, to the global economy.
:44:58. > :45:03.This is important, these are markets people need to feck cuss on,
:45:03. > :45:07.not equities and -- focus on, not equities and bonds. You can see 11
:45:07. > :45:10.gorgeous graphs selected by some leading economists on the Newsnight
:45:10. > :45:20.website. Let me take you briefly through the front pages of the
:45:20. > :45:20.
:45:20. > :46:12.Apology for the loss of subtitles for 51 seconds
:46:12. > :46:15.An interesting poll that has reached us, the Conservatives have
:46:15. > :46:20.overtaken Labour in an opinion poll for the first time this year. This
:46:20. > :46:29.is a bounce they are saying on the back of Prime Minister's veto of
:46:29. > :46:38.the new European Union treaty. This comes from a riot areers -- Reuters
:46:38. > :46:48.poll, Cameron more popular. A review from the press hacking
:46:48. > :47:07.
:47:07. > :47:11.inquiry tomorrow, from all of us Some pretty serious weather in the
:47:11. > :47:14.forecast, particularly from the end of the week. Overnight tonight it
:47:14. > :47:18.is cold and showery in some places, developing the theme as we go
:47:18. > :47:22.through the day. Some showers falling as snow, not just over the
:47:22. > :47:26.high ground in the north, anywhere could have a flake or two of snow
:47:26. > :47:29.as we go through the day. Some places will see a lot of sunshine
:47:29. > :47:34.through the afternoon, one or two places seeing lively showers and
:47:34. > :47:38.wintry showers too. Maybe down to low levels. Southern coastal areas
:47:38. > :47:43.are most prone to heavy and thundery showers. Hail and a gusty
:47:43. > :47:47.wind. Even across the south west of England a few flakes of snow. It
:47:47. > :47:51.will be cold everywhere, despite some places seeing sunshine.
:47:51. > :47:54.Temperatures around 5-6, when the showers come along they fall away
:47:54. > :47:58.by several degrees. It is not all bad news, for Northern Ireland
:47:58. > :48:01.plenty of sunshine, largely bright and breezy through the afternoon.
:48:01. > :48:04.Showers still affecting northern and western parts of Scotland.
:48:04. > :48:08.Further south and east, after another showery start, things will
:48:08. > :48:13.tend to dry out. On Thursday, some sunshine, for a time, rain clouds
:48:13. > :48:17.gathering across the south west. There is a lot of uncertainty about
:48:17. > :48:20.what happens after that. The low pressure system winding itself up
:48:20. > :48:25.down to the south west is not sure of the way to go. There is the