Browse content similar to 01/11/2012. Check below for episodes and series from the same categories and more!
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Tonight, a Newsnight investigation into some of the world's most | :00:12. | :00:18. | |
successful companies. Companies who appear to make massive profit in | :00:19. | :00:25. | |
Britain, but pay very little tax. # I'd like to buy the world a coke | :00:25. | :00:29. | |
# And keep it company Companies such as Coca-Cola are | :00:29. | :00:33. | |
doing nothing illegal, of course, but is it immoral. It is | :00:33. | :00:36. | |
irresponsible, unethical and unacceptable. There needs | :00:36. | :00:39. | |
substantial reform to bring our business tax system up-to-date, as | :00:39. | :00:43. | |
it should be. I will ask the Treasury Minister, David Gauke, why | :00:43. | :00:46. | |
the loopholes can't be closed, and whether smaller British companies | :00:46. | :00:50. | |
are put at a disadvantage. The comedian, Freddie Starr, is | :00:50. | :00:53. | |
arrested by detectives investigating the Jimmy Savile | :00:53. | :00:58. | |
abuse claims. He becomes the second celebrity to face questioning, as | :00:58. | :01:01. | |
the police investigation turns the spotlight on those still alive. We | :01:01. | :01:06. | |
will have the latest. And with social media sites | :01:06. | :01:09. | |
sweeping in and sometimes out of fashion, we ask the founder of | :01:09. | :01:13. | |
Tumblr, what is so different about his site. It can be this really | :01:13. | :01:16. | |
delightful surprise when you bump into some stranger on Tumblr or | :01:16. | :01:20. | |
anywhere on the Internet, who cares about the same stuff that you do. I | :01:20. | :01:25. | |
don't think it is narcissistic, I think it is a whole new opportunity | :01:25. | :01:34. | |
for humans to socialise that hasn't existed before. | :01:34. | :01:37. | |
Good evening, one of the big priorities at the Treasury has been | :01:37. | :01:42. | |
in very hard times, new efforts to crack down on those not paying or | :01:42. | :01:45. | |
avoiding tax. One or two celebrities have been named, and | :01:45. | :01:49. | |
possibly shamed, but for many people, scandal is not -- the | :01:49. | :01:53. | |
scandal is not what is legal, but what is permitted -- illegal, but | :01:53. | :01:57. | |
what is permitted under the law. Newsnight's investigation has | :01:57. | :02:00. | |
revealed that some of the world's biggest companies apparently make | :02:00. | :02:04. | |
massive profits in Britain, but in some cases could pay as little as | :02:04. | :02:08. | |
2% tax. While smaller British companies have been paying | :02:08. | :02:11. | |
corporation tax at 26%. Nothing illegal in what these big companies | :02:11. | :02:21. | |
:02:21. | :02:22. | ||
are doing, that is the point. Their iconic adverts have adorned | :02:22. | :02:26. | |
gable walls, bus shelters and TV screens for decades -- competing | :02:26. | :02:30. | |
for our attention in order to create and sustain global brands. | :02:30. | :02:35. | |
Which their owners know have a monetary and intangible value, | :02:35. | :02:39. | |
worth billions of pounds. But while the most powerful and sticky brands | :02:39. | :02:44. | |
openly talk to us, their corporate owners are much less open about | :02:44. | :02:49. | |
their tax affairs. But research by Newsnight seems to show that many | :02:49. | :02:52. | |
of the largest UK multinationals here are paying only a fraction of | :02:52. | :02:56. | |
the corporation tax that they might have paid. And it is perfectly | :02:56. | :03:02. | |
legal. Because large multinationals don't publish a figure for how much | :03:03. | :03:06. | |
profit they make in each individual country, we had to estimate it, | :03:06. | :03:09. | |
using extrapolate from the worldwide figure. If the global | :03:09. | :03:15. | |
profit margin is 20-30%, we applied that to UK sales, which is | :03:15. | :03:18. | |
published. That gives us a chance to estimate how much corporation | :03:18. | :03:21. | |
tax could have been paid if the full rate of corporation tax was | :03:21. | :03:25. | |
being paid, and of course, to compare that with the actual rate | :03:26. | :03:30. | |
of corporation tax that was paid. Needless to say the companies don't | :03:30. | :03:33. | |
like our methodology, and one company said it was completely | :03:33. | :03:38. | |
flawed, but it gives us a chance to compare and contrast. We looked at | :03:38. | :03:42. | |
the accounts filed at companies House by 19 of the best known | :03:42. | :03:45. | |
American multinationals, and found that the tax gap between what was | :03:45. | :03:49. | |
paid in corporation tax, and what could have been paid, amounted to | :03:49. | :03:56. | |
almostp �3 billion. The microchip maker, Intel, sits in most PCs and | :03:56. | :04:02. | |
laptop, last year it made �4 billion in UK sales, based on the | :04:02. | :04:08. | |
worldwide profit margin it could have paid �348 million in UK | :04:08. | :04:12. | |
corporate taxes, instead it said �27 million, a corporation tax rate | :04:12. | :04:22. | |
:04:22. | :05:00. | ||
Coca-Cola is still the world and UK This is a former tax lawyer, and | :05:00. | :05:05. | |
now a Conservative MP for Dover, who has been campaigning for all | :05:05. | :05:11. | |
firms to pay their fair share in tax. Post 2008, the world has | :05:11. | :05:14. | |
changed. After the financial crisis, this playing the system is no | :05:14. | :05:17. | |
longer acceptable. It is not acceptable for people claiming | :05:17. | :05:22. | |
benefits, it is not acceptable for the super-rich. Everyone has to | :05:22. | :05:27. | |
play their role in ensuring we get the deficit down and repair the | :05:27. | :05:32. | |
nation's finances. The head of Google, they said we love you guys, | :05:32. | :05:37. | |
we will pay tax if we have to, we don't, so we don't. No firm wished | :05:37. | :05:47. | |
:05:47. | :06:13. | ||
These firms are in good company, Starbucks, Google and Facebook, are | :06:13. | :06:18. | |
paying almost no taxes on their UK profits at all. The key to this is | :06:18. | :06:21. | |
something called transfer pricing, which allows one part of a company | :06:21. | :06:25. | |
to bill another part for using goods, and especially services. In | :06:25. | :06:28. | |
general, the bit of the multinational which controls | :06:28. | :06:34. | |
valuable brand trade mark or patents, bases itself in a low-tax | :06:34. | :06:37. | |
company like Luxembourg, Ireland, or Switzerland. From there it can | :06:38. | :06:41. | |
bill the British sister company, where taxes are higher, for | :06:41. | :06:44. | |
permission to use those trade marks or certain product. That has the | :06:44. | :06:49. | |
effect of magnifying the profits in the low-tax countries, and | :06:49. | :06:53. | |
minimising them in Britain. Finally, the profits left over in Luxembourg | :06:53. | :06:59. | |
or other low-tax country, gets sent back to the States were it can't be | :06:59. | :07:02. | |
taxed a second time. To prevent abuse, companies have to show the | :07:03. | :07:07. | |
relevant tax authorities that they are billing fairly. The rules | :07:07. | :07:12. | |
established by the OECD, even they admit that things are getting a bit | :07:12. | :07:16. | |
out of control. The concern is there has been a shift towards | :07:16. | :07:19. | |
aggressive tax planning, which may have been encouraged by the | :07:19. | :07:23. | |
Governments, let's be fair, but which now needs to be stopped. It | :07:23. | :07:28. | |
needs to be stopped with firmer rules which would be clearer, more | :07:28. | :07:32. | |
simple, but west which have to be implemented. | :07:32. | :07:37. | |
HMRC's new strategy is to man mark each of the biggest 2,000 companies | :07:37. | :07:41. | |
operating here. And they have recovered �29 billion above what | :07:41. | :07:46. | |
they would have otherwise got over the past few years. But that's | :07:46. | :07:50. | |
unlikely to assuage ordinary voters, who are paying more tax, while the | :07:50. | :07:58. | |
brands and the companies they love, might be paying much less. | :07:58. | :08:02. | |
The Treasury Minister, David Gauke, is here. This is legal, but it's | :08:02. | :08:07. | |
wrong, isn't it? Well I can't comment about individual companies. | :08:07. | :08:13. | |
Ministers don't get to see any of the confidential information HMRC | :08:13. | :08:17. | |
sees. If there is an abuse of the system, if businesses are | :08:17. | :08:22. | |
artificially diverting profit out of the UK, we expect to see HMRC on | :08:22. | :08:26. | |
the case, and indeed HMRC are on that case, we are strengthening | :08:26. | :08:30. | |
their ability to deal with transfer pricing, as Joe described it. What | :08:30. | :08:34. | |
I would say, having seen the report, we have to remember what | :08:34. | :08:39. | |
corporation tax is, it is a tax on profits from activity conducted in | :08:39. | :08:43. | |
the UK. It is not a tax on sales. It is not a tax on turnover. It is | :08:43. | :08:47. | |
a tax on profits in the UK. But if it's in the UK, it should be taxed | :08:47. | :08:54. | |
in the UK. But if a small company, a tea shop, would be taxed at 26%, | :08:54. | :09:00. | |
going down to 24%, corporation tax, some companies. And on to 22%. | :09:00. | :09:10. | |
companies are paying 2% or 3% or 4%, that sounds immoral? 2-3% on what? | :09:10. | :09:13. | |
I have to say having looked at the methodology, as it was explained | :09:13. | :09:17. | |
there, I'm not sure it is necessarily a fair one, but there | :09:17. | :09:23. | |
are others who can speak more about the technical details on it. Your | :09:23. | :09:26. | |
colleague seems to think it is immoral? It is not right if | :09:26. | :09:29. | |
companies are artificially lowering their profits so they end up paying | :09:29. | :09:34. | |
less in corporation tax. That is not right, that is why HMRC are | :09:34. | :09:38. | |
strengthening their ability to deal with that sort of behaviour, that | :09:38. | :09:43. | |
is why they have got in an additional �4.7 billion over the | :09:43. | :09:53. | |
:09:53. | :09:55. | ||
last five years, specifically on transfer pricing. You at HMRC is | :09:55. | :09:59. | |
very complicated in the tax laws, what are you doing those who | :09:59. | :10:04. | |
transfer pricing, going to Luxembourg where there is a low-tax | :10:04. | :10:10. | |
regime, lower than the 22% we have here? You can't do anything? One is | :10:10. | :10:14. | |
about strengthening HMRC's capacity to deal with t they have got in | :10:14. | :10:19. | |
over the last five years �4.7 billion because they take a strong | :10:19. | :10:21. | |
line on transfer pricing. The second is working with other | :10:21. | :10:28. | |
countries, if we see profits being diverted to low-tax jurisdictions | :10:28. | :10:32. | |
or tax havens, clearly that is a concern. HMRC would consider that | :10:32. | :10:37. | |
to be a risk factor, we would want to address it. You said you can't | :10:37. | :10:40. | |
comment on individual cases, people understand that, when you have | :10:40. | :10:48. | |
somebody like Eric Scmidt of Google saying we would pay more if you | :10:48. | :10:51. | |
taxed us? The tax is on the activities they conducted in a | :10:51. | :10:55. | |
particular jurisdiction. If you have a business that actually, if | :10:55. | :10:59. | |
you like, exports its services or the goods, from one country to | :10:59. | :11:03. | |
another, it's taxed in the country in which it's in, rather than the | :11:03. | :11:08. | |
country in which its sales are done. That also benefits UK businesses, | :11:08. | :11:11. | |
who are based here and provide their services overseas, we get the | :11:11. | :11:15. | |
tax from those UK businesses. That's the way corporation tax work. | :11:15. | :11:19. | |
And actually, you are right to say that the UK can't unilaterally | :11:19. | :11:22. | |
change that, we would have to work with other countries to do it. | :11:22. | :11:29. | |
will leave it there, we are also joined by Bill Dodwell, head of tax | :11:29. | :11:36. | |
accountany at Deloittes. Maurice Lindsay owns a clothing website, | :11:36. | :11:42. | |
and we have a tax campaigner. How common is this, do big | :11:42. | :11:45. | |
multinationals naturally just take advantage of this? This all started | :11:45. | :11:49. | |
20, 30 years ago, when multinationals found it was more | :11:49. | :11:53. | |
efficient to run their businesses on a centralised model. So instead | :11:53. | :11:57. | |
of doing everything, in each individual country, they worked out, | :11:57. | :12:00. | |
if they had one big factory somewhere, and another factory | :12:00. | :12:04. | |
doing a different thing somewhere else, that would be a better, | :12:04. | :12:09. | |
overall result. It would reduce their costs, and it would drive | :12:10. | :12:13. | |
down and produce consumer benefit. Then when they came to look about | :12:13. | :12:17. | |
where to base their activities, they will lock at a whole range of | :12:17. | :12:21. | |
activities. They will look at have we got people here, have we got | :12:21. | :12:24. | |
killed people, do we have access to university research, for example, | :12:24. | :12:28. | |
what about the tax situation. They will look at all of those things | :12:28. | :12:32. | |
together, and make a choice based on that combination. Do you see | :12:32. | :12:36. | |
that this is, and could be unfair to smaller businesses, who can't do | :12:36. | :12:39. | |
that, who haven't got that reach, and they would find it very | :12:39. | :12:42. | |
difficult to compete against some of these big players? I think, you | :12:42. | :12:47. | |
will have to ask a smaller business soon. The question really is, | :12:47. | :12:49. | |
smaller businesses have different strength, and different things they | :12:49. | :12:55. | |
are good at. They are very nimble, they can move rapidly into markets | :12:55. | :13:00. | |
in the way businesses cannot. unfair Poppy? I think it is unfair | :13:00. | :13:04. | |
in terms of the economies of scale, it is not, you don't want to get | :13:04. | :13:09. | |
into an argument of David and Golaith, smaller companies have | :13:09. | :13:12. | |
advantages and disadvantages, as you have just said, but when I have | :13:12. | :13:17. | |
to spend money on accountant to obviously, as part of any business | :13:17. | :13:22. | |
strategy to keep their taxes low, but I'm not in a position to spend | :13:22. | :13:24. | |
millions of pounds protecting my position with Government, and | :13:24. | :13:31. | |
making sure that frg's protected. Presumably -- Everything's | :13:31. | :13:34. | |
protected. Presumably your accountant will minimise your | :13:34. | :13:38. | |
exposure to tax. You could conceivably, if you were bigger, | :13:38. | :13:42. | |
take advantage of it? There is an element is we are trying to talk | :13:42. | :13:46. | |
about what is morally correct in a capitalist world, but we are all | :13:46. | :13:50. | |
out to make as much money as possible in businesses. There is | :13:50. | :13:55. | |
that difficulty. But if you look at Starbucks assay they haven't made | :13:55. | :13:58. | |
profit, and comparing them similar companies who have made the same in | :13:58. | :14:02. | |
UK revenue, and the differences in what they have paid, it is | :14:02. | :14:04. | |
unbelievable. You have written a lot about this, what do you want | :14:04. | :14:09. | |
the Government to do? Well, I found it frustrating to hear David say | :14:09. | :14:13. | |
that he wasn't going to comment on individual cases, because that begs | :14:13. | :14:18. | |
the question, who is he working for, who is the Government working for? | :14:18. | :14:21. | |
You should be commenting on individual cases, should be telling | :14:21. | :14:25. | |
companies they should not be avoiding tax. I want to put this in | :14:25. | :14:28. | |
some kind of context. We are now seeing the biggest cuts we have | :14:28. | :14:32. | |
ever had in British history in public spending. People's lives are | :14:32. | :14:37. | |
really being damaged and destroyed by these cuts, and as it was | :14:37. | :14:41. | |
written in the Guardian yesterday, if all tax avoidance and evasion in | :14:41. | :14:45. | |
this country was tackled, it could pay off the entire budget deficit. | :14:45. | :14:50. | |
This is really immoral, that is the key. I'm sure many people will | :14:50. | :14:53. | |
agree but, with 20% of the cuts to the police and difficulties for | :14:53. | :14:56. | |
families up and down the country. What do you want the Government to | :14:56. | :15:00. | |
do about it, it is a very complicated position, 120 tax | :15:00. | :15:05. | |
treaties, they can't unpick all of it? What I find frustrating, this | :15:05. | :15:08. | |
myth that nothing can be done about it. There are alternatives out | :15:08. | :15:11. | |
there. There have been suggestions made, particularly by the tax | :15:11. | :15:17. | |
justice network, which has written a very extensive document on an | :15:17. | :15:22. | |
anti-avoidance principle. Saying what? It advocates an anti- | :15:22. | :15:25. | |
avoidance principle in the law. So companies would have to adhere to | :15:25. | :15:28. | |
the spirit of the law rather than the letter of the law. Which is | :15:28. | :15:33. | |
what the tax schemes essentially. Do the other things the Tax Justice | :15:33. | :15:36. | |
Network has advocated, is Government's refuse to give | :15:36. | :15:40. | |
Government contracts to companies that avoid tax. Those are very, | :15:40. | :15:44. | |
very good measures that should at least be looked at by the | :15:44. | :15:48. | |
Government. What about consumer boycotts, not going to Starbucks or | :15:48. | :15:52. | |
Coca-Cola if you feel strongly about it? I wrote about this, if | :15:52. | :15:57. | |
you, on a moral level, as I do, feel that this type of behaviour is | :15:57. | :16:02. | |
wrong, you should boycott it. However, I think consumer boycotts | :16:02. | :16:07. | |
have limited effect. What really needs to happen is a long-term | :16:08. | :16:11. | |
campaign against tax avoidance, that takes place in a variety of | :16:11. | :16:16. | |
ways, with a variety of taxes. Going with the spirit of the law | :16:16. | :16:19. | |
rather than the letter of the law. How would that work? Companies do | :16:19. | :16:23. | |
it here to the spirit of the law. We are about to get a general anti- | :16:23. | :16:28. | |
abuse rule, as well, brought into the UK, to prevent those very small | :16:28. | :16:31. | |
minorities who try to duck out of that particular aspect. I think the | :16:31. | :16:35. | |
issue we are locking at here though, isn't just about spirit of the law | :16:35. | :16:39. | |
and anything like that, it is about the fact that, in a globalised | :16:39. | :16:45. | |
world, it is open and sensible for multinationals to deliver a cheaper | :16:45. | :16:48. | |
service to their consumers, by basing their activities around the | :16:48. | :16:52. | |
world. That is where their choices come from. Starbucks or Coca-Cola | :16:52. | :16:56. | |
won't pull out of this country if they had to pay 24% tax rather than | :16:56. | :17:01. | |
4% tax, would they? I can't comment on their particular situation. | :17:01. | :17:05. | |
big companies that sell us stuff, are not just going to leave a | :17:05. | :17:10. | |
market and an important market like this? I'm sure that is absolutely | :17:10. | :17:13. | |
right for an important market like Britain. You have to think, where | :17:14. | :17:17. | |
do the profits come from. If you think about the US technology | :17:17. | :17:21. | |
companies in the news, of course, they are spending billions of | :17:21. | :17:24. | |
dollars developing their technology in the US, that really is the key | :17:24. | :17:30. | |
driver of their profits. Do you see any solution to this, Poppy Dinsey, | :17:30. | :17:35. | |
you are not going to drink cappuccino from tomorrow among? | :17:35. | :17:39. | |
can't get behind the boycotting idea, as a start-up entrepeneur, I | :17:39. | :17:44. | |
often have a three-hour gap between meetings, I will constituent in | :17:44. | :17:48. | |
Starbucks and pay �3 for a bottle of water and use the Internet for | :17:48. | :17:51. | |
two hours. Its hard work to be boycotting the majority of big | :17:52. | :17:56. | |
companies, and everything gets big, big becomes evil, this sort of | :17:56. | :18:01. | |
thing. I think loophole need to be closed, and you are always going to | :18:01. | :18:07. | |
try to pay as little as possible. Whilst you can, it is going to | :18:07. | :18:09. | |
happen. Do you sense the frustration that many people feel, | :18:09. | :18:12. | |
you are cutting the police budget, just to take one example, people | :18:12. | :18:15. | |
resent it and would like you to spend more money, and have more | :18:15. | :18:19. | |
money to spend. This would be potentially way of getting more | :18:19. | :18:23. | |
money? I can understand there's a frustration there. Indeed that is | :18:23. | :18:28. | |
the reason why we have reinvested �917 million into HMRC, and over | :18:28. | :18:32. | |
the course of this parliament, by the end of the parliament, they are | :18:32. | :18:38. | |
going to be getting an additional �7 billion a year, dealing with | :18:38. | :18:41. | |
avoidance and evasion. It is really important to get the tax due in. I | :18:41. | :18:46. | |
think the point I'm making is that, although there can often be | :18:46. | :18:51. | |
allegations about particular companies, I think it is right that | :18:51. | :18:54. | |
ministers don't talk about. That the sort of country that the amount | :18:54. | :18:57. | |
of tax that is paid is decided by what a minister says on the basis | :18:58. | :19:02. | |
of political matters, as opposed to what the law says, is not where we | :19:02. | :19:05. | |
want to be. Businesses can choose where they locate their activities, | :19:05. | :19:09. | |
not so much their sales, but their activities. We do want businesses | :19:09. | :19:14. | |
to locate here. We do want to be competitive here. All of that, but | :19:14. | :19:17. | |
we also want to make sure businesses pay the right amount of | :19:17. | :19:20. | |
tax. That is exactly what we are trying to do. | :19:20. | :19:23. | |
Next week the German Chancellor, Angela Merkel, will meet the Prime | :19:23. | :19:27. | |
Minister and top of the agenda will be what to do about the EU budget. | :19:27. | :19:35. | |
Both leaders want cut, but the ability of these two fiscally | :19:35. | :19:38. | |
conservative nations might be held back because Angela Merkel is at | :19:39. | :19:42. | |
the heart of the EU, and David Cameron, after last night's vote | :19:42. | :19:48. | |
about budget cuts, is seen as on the outer circle. How are Mr | :19:48. | :19:51. | |
Cameron's views considered by those he has to negotiate with on the | :19:51. | :20:01. | |
:20:01. | :20:05. | ||
budget. There is one Brit who is still | :20:05. | :20:10. | |
popular in Europe. This week 007 was topping box-office charts | :20:10. | :20:18. | |
across the continent. Tough, powerful, in control. Just the | :20:18. | :20:22. | |
image the PM would like us to have abroad. It is one view of the | :20:22. | :20:32. | |
British. Here's another, as the new Bond film was released, Germany's | :20:32. | :20:35. | |
best-known news magazine was comparing us to the grumpy old men | :20:35. | :20:43. | |
in the Muppet Show. I think there's a "K" in knucklehead. The UK is now | :20:43. | :20:46. | |
just a spectator, it says, watching from the sidelines as a new | :20:46. | :20:50. | |
European Union is taking shape. Does that mean they are getting | :20:50. | :20:58. | |
better or worse! This is a sense that there's the people sitting on | :20:58. | :21:07. | |
the island, looking over, watching the continent, and not really | :21:07. | :21:11. | |
participating, more like observing and making mean comments. Trying to | :21:11. | :21:17. | |
sabotage, even, whatever is being done. David Cameron will soon be in | :21:17. | :21:22. | |
Brussels for another crucial EU summit. That word "crucial" is | :21:22. | :21:26. | |
often overused. After last night's vote, it is clear that negotiating | :21:26. | :21:30. | |
positions are hardening fast. And it's now a real chance, there will | :21:30. | :21:35. | |
be no budget deal in three weeks time. You know, now that we may be | :21:35. | :21:38. | |
seeing Cameron undermined at home, needs to push for a cut. There is | :21:38. | :21:42. | |
no willingness anywhere, Paris, Berlin, even some of the northern | :21:42. | :21:46. | |
European countries, which are traditional UK allies on the budget, | :21:46. | :21:50. | |
there is no support for that right now. If there is isolation before, | :21:50. | :21:56. | |
even increased isolation now. is this row really about? The | :21:56. | :22:02. | |
current EU budget of worth around �12 -- 126 billion euros in 2011, | :22:02. | :22:06. | |
the European Commission says that should rise to pay for EU | :22:06. | :22:10. | |
enlargement and new functions, like financial supervision. The UK | :22:10. | :22:15. | |
Government wants the budget to rise only with inflation. Labour and | :22:15. | :22:19. | |
Tory rebels want to go further with an actual cut. Everyone wants to | :22:19. | :22:27. | |
see a reduction in the EU budget, the negotiations have just started. | :22:27. | :22:31. | |
There are 26 other countries. We accept a deal that is not good for | :22:31. | :22:35. | |
Britain, we will only do a deal that is good for Britain. Last | :22:35. | :22:39. | |
night in a House of Commons be date on the budget...That Position on | :22:39. | :22:42. | |
the budget was backed by Nick Clegg today. But he made it very clear. | :22:42. | :22:48. | |
He will not support any further attempt to clawback wider powers | :22:48. | :22:52. | |
from Brussels. Europe is changing, yes. But rather than go into | :22:52. | :22:57. | |
retreat, now is the time to confront those changes head-on. We | :22:57. | :23:03. | |
theed to make a decision about who we -- need to make a decision about | :23:03. | :23:07. | |
who we will be in the new Europe. I say we need to be strong, loud, | :23:07. | :23:15. | |
present. All right, so an EU row might not be quite as exciting as a | :23:15. | :23:20. | |
Bond film, but this month's budget summit could be about as lively as | :23:20. | :23:24. | |
Brussels ever gets. He specially if David Cameron carries through with | :23:24. | :23:29. | |
that threat, to veto the whole deal, if he doesn't get his way. | :23:29. | :23:31. | |
mutual destruction that is going on here now, Britain is coming with | :23:31. | :23:36. | |
its veto threat, the response from the EU is OK, if you want to really | :23:36. | :23:39. | |
veto this, and make this go through the end of the year, we will force | :23:39. | :23:42. | |
you to pay more money than you would have with a budget deal. That | :23:42. | :23:46. | |
is the clash of interests that is happening right now. There is a lot | :23:46. | :23:50. | |
of fear that this November summit will be a real disaster, and lead | :23:50. | :23:56. | |
to a lot of problems for all member states involved. The stakes are | :23:56. | :24:00. | |
high, if David Cameron compromises on this budget deal, he risks | :24:00. | :24:04. | |
infuriating his own backbenchers. But if he sticks to his guns, he | :24:04. | :24:14. | |
:24:14. | :24:14. | ||
could alienate most of Europe. We have the London correspondent, and | :24:14. | :24:18. | |
other our guests. Seen across Europe, particularly in | :24:18. | :24:22. | |
Germany, did last night's Commons vote really matter, did it filter | :24:22. | :24:28. | |
through? Yeah, I think actually it does matter. But I think it matters | :24:28. | :24:31. | |
for different reasons than generally reported, it won't change | :24:31. | :24:34. | |
much on the budget, there Nick Clegg is absolutely correct. But I | :24:34. | :24:39. | |
think the one thing that really is a game-changer, is Labour's | :24:39. | :24:45. | |
position. Because they now are starting to have a position. And | :24:45. | :24:49. | |
they are possibly moving into a rebel position. They are now | :24:49. | :24:52. | |
starting to consider whether it might be a better option for | :24:52. | :24:59. | |
Britain to leave the EU. The interesting thing about it is | :24:59. | :25:03. | |
there is a coherent and intelligence analysis about it. The | :25:03. | :25:05. | |
problem with Cameron's Government at the moment, they don't have a | :25:06. | :25:08. | |
position on Europe, they don't have a coherent position on Europe. On | :25:08. | :25:13. | |
the one hand, they say, OK, Europe should further integrate, on the | :25:13. | :25:17. | |
other hand they say they won't be part of it. What they don't think | :25:18. | :25:24. | |
through is Britain will be catapult today some second-teir position | :25:24. | :25:30. | |
they won't be able to live with. that context, won't be it very | :25:30. | :25:34. | |
difficult if Merkel and Cameron meet next week, they have a lot in | :25:34. | :25:38. | |
common about the way economies work, but they can't work together on | :25:38. | :25:41. | |
this? I say they could quite well, and I think they started to. I | :25:41. | :25:46. | |
think something has changed since last December. Last December Merkel | :25:46. | :25:51. | |
and Cameron also a week before Cameron vetoed, but the big mistake | :25:51. | :25:56. | |
he made, he didn't listen. He had, apparently, this obscure list from | :25:56. | :25:59. | |
his Treasury, he had a list of certain points that he thought he | :25:59. | :26:04. | |
could ram through. He didn't listen to the City, he didn't listen to | :26:04. | :26:08. | |
other countries, he only looked to his backbencher. That has changed. | :26:08. | :26:12. | |
I think he realises now that he has to make some deal with Merkel. | :26:12. | :26:15. | |
Merkel says, repeated low, she would like Britain to be a bigger | :26:15. | :26:19. | |
player in all -- repeededly she would like Britain to be a bigger | :26:20. | :26:24. | |
player in it all? I think she does genuinely want the British to be | :26:24. | :26:29. | |
there. For the simple reason you need more of a free market edge. | :26:29. | :26:33. | |
Firstly, because she agrees with that, and also because it is a | :26:33. | :26:36. | |
balance to the French and the people in the south. It brings, | :26:36. | :26:40. | |
from her point of view, the Nordic, and some of the easterners. I think | :26:40. | :26:44. | |
there is a role for Britain. But her tolerance for giving the Brits | :26:44. | :26:49. | |
a lot is not great. Where are the other British friends, I don't know, | :26:49. | :26:56. | |
the Poles, perhaps, the Finns? was the hope when in Brussels. A | :26:56. | :27:00. | |
year ago we kept on being told that Cameron really fought this country, | :27:00. | :27:04. | |
and lots of people would back him up, and they didn't. That is the | :27:04. | :27:08. | |
danger, from a mildly euro-sceptic point of view, it is getting to a | :27:08. | :27:12. | |
point where people begin to get very annoyed with Britain. Did this | :27:12. | :27:18. | |
really matter last night, or because of the reason Imke Henkel | :27:18. | :27:21. | |
said? That is very interesting, there is a real problem for Labour, | :27:21. | :27:24. | |
a short-term strategic gain, they beat the Government in a vote that | :27:25. | :27:30. | |
didn't matter. You are getting incredible reactions in Europe now. | :27:30. | :27:36. | |
Poor Douglas Alexander is deeply humiliated by Ed Balls. You have | :27:36. | :27:43. | |
seen the Austrian ambassador's text recent low, poor labour is now seen | :27:43. | :27:49. | |
-- poor Labour is seen as the anti- European party in Europe. Oddly, I | :27:49. | :27:54. | |
think Cameron is greatly helped by this. In what way? It is not a | :27:54. | :27:58. | |
defeat that has any consequence, or binding quality to it, I think he | :27:58. | :28:04. | |
came out of it very statesmanlike. He adopts a pragmatic position in | :28:04. | :28:10. | |
Europe. He will go there and negotiate. Do exactly what Ed | :28:10. | :28:13. | |
Miliband would have done if he hadn't gone on a tactical flip. It | :28:13. | :28:17. | |
is a wonderful moment. I would almost say that the revival of the | :28:17. | :28:22. | |
Tories on Europe, and towards the next election, started last night. | :28:22. | :28:25. | |
That is perhaps not entirely how you see it, can you see that | :28:25. | :28:30. | |
Cameron can say, you see what I'm dealing with at home, I have Labour | :28:30. | :28:33. | |
also saying this, you are better to deal with me? Merkel knows that. | :28:33. | :28:38. | |
That is not the point. The point is his difficulty, is he had listened | :28:38. | :28:44. | |
far too much to his people at home. He has to start to make alliances | :28:44. | :28:48. | |
across Europe, and there are quite a few states who would be | :28:48. | :28:51. | |
interested, or would have been interested, I'm not sure if they | :28:51. | :28:57. | |
are any more. I think the problem for Cameron really is, he hasn't | :28:57. | :29:02. | |
thought through his position. Labour hasn't either? I think | :29:02. | :29:07. | |
Britain is starting to. I think Labour's really starting to think | :29:07. | :29:10. | |
it through. They are very much at the beginning, but the Europe that | :29:10. | :29:15. | |
is now envisaged, with a core Europe, and other states around, | :29:15. | :29:21. | |
that will not work. I think there is a degree of opportunism, there | :29:21. | :29:25. | |
is a degree of opportunism, and Labour, it is naked and obvious, | :29:25. | :29:27. | |
they are doing something in order to carve out a position. I think | :29:27. | :29:30. | |
what's interesting about Cameron, is when he came in, when you talk | :29:30. | :29:34. | |
to the people in Europe, they repeatedly, when Cameron first | :29:34. | :29:39. | |
appear, they kept on talking about him being a "little Englander", | :29:39. | :29:43. | |
they saw the thing at Christmas last year as being frustrated. It | :29:43. | :29:46. | |
was just him trying to deal with his backbencher, as we saw this | :29:46. | :29:49. | |
time round. What is interesting, is he parked had himself, by doing | :29:49. | :29:55. | |
this thing straight up, by doing this thing about any cessation of | :29:55. | :29:59. | |
sovereignty, you have to be to have a referendum. Many wiser old men | :29:59. | :30:03. | |
said be careful on. That the reason it would be difficult going forward, | :30:03. | :30:08. | |
if there is a deal to save the euro it will be sovereignty going to | :30:08. | :30:10. | |
Brussels. That is when Cameron and Osborne might be prepared to go | :30:10. | :30:15. | |
along with t but the referendum will keep them in. In terms of the | :30:15. | :30:18. | |
friendlessness in Europe, in terms it of the Government, is it your | :30:18. | :30:22. | |
position, Peter, when Cameron talks about, or when Conservative | :30:22. | :30:27. | |
backbenchers have a vote, force a vote causing a toughening in the | :30:27. | :30:30. | |
British position, they are speaking for many German voters as well, | :30:31. | :30:35. | |
they are equally sceptical. Is that how you see it? What I think is the | :30:35. | :30:42. | |
other European leaders, we look at it in our parochial way, they are | :30:42. | :30:50. | |
very sympathetic, they have all got domestic issues. Angela Merkel has | :30:50. | :30:55. | |
issues. They see that Britain has a domestic issue, Cameron has the | :30:55. | :31:00. | |
management issue. I think also that when Cameron goes to Brussels, a | :31:00. | :31:04. | |
lot of -- with a euro-sceptic message there will be a lot of | :31:04. | :31:07. | |
European leaders quite happy to come in behind that cover. They | :31:07. | :31:12. | |
will be delighted today hear him say that.S Certainly true of some | :31:12. | :31:17. | |
German vote -- it is certainly true of some German voters? That is an | :31:17. | :31:20. | |
important point to make much the other importance of the vote | :31:20. | :31:23. | |
yesterday evening is it chimes with the sentiment around Europe, that | :31:23. | :31:27. | |
is the sentiment of the people. It is interesting, a German minister | :31:27. | :31:33. | |
today already react to it, not just saying there go the Brits again. He | :31:33. | :31:38. | |
said it would be more difficult, but he also said it is fantasy to | :31:38. | :31:42. | |
increase the European budget. final thought, just the thought of | :31:42. | :31:46. | |
another British veto, by theself would that be bad news, in European | :31:46. | :31:51. | |
eyes, if not domestic? I disagree with the other two on this. I think | :31:51. | :31:54. | |
within Germany there is a straight forward element to the populus fed | :31:54. | :31:57. | |
up with giving money to other people. That is there. The moment | :31:57. | :32:00. | |
you start testing it on the idea of people coming out of the European | :32:00. | :32:04. | |
Union, there you have a tougher thing, I think. It is a much more | :32:04. | :32:07. | |
solid, coherence around the idea of Europe. Once you get to play like | :32:07. | :32:14. | |
France and the others it is harder There have been further development | :32:14. | :32:19. | |
tonight in the inquiry sentering on Jimmy Savile. The comedian, Freddie | :32:19. | :32:23. | |
Starr, who has always denied any wrongdoing, and still does, has | :32:23. | :32:28. | |
been arrested. We have the details. What is going on? Starr who is now | :32:28. | :32:36. | |
69, has been arrested as part of operation yue tree, looking into -- | :32:36. | :32:42. | |
Yew ld tree, looking into the investigation: it happened when | :32:42. | :32:47. | |
Karin Ward told the BBC that he had groped her when she was 13. He said | :32:47. | :32:57. | |
:32:57. | :32:57. | ||
he never met her. But then footage emerged of them when he was hosting | :32:57. | :33:02. | |
on Clunk Click, with Jimmy Savile, but he admits he was wrong but says | :33:02. | :33:10. | |
he denies any wrong done. We should say that Miss Ward took part in a | :33:10. | :33:15. | |
investigation with Newsnight about Jimmy Savile that was not proceeded | :33:15. | :33:18. | |
with. Max Clifford is involved now? He has had phone calls from pop | :33:19. | :33:23. | |
musicians of the time who are concerned they might fall under | :33:23. | :33:28. | |
suspicion, simply because at some moment in the past they may have | :33:28. | :33:33. | |
encountered Jimmy Savile and young members of the audience on Top Of | :33:33. | :33:38. | |
The Pops. Everyone who has phoned me from the 60s and 70s, says they | :33:39. | :33:43. | |
had no knowledge or involvement in any shape or form, but, for example, | :33:43. | :33:46. | |
I was there doing Top Of The Pops, Jimmy Savile came up to me, with | :33:46. | :33:50. | |
some girls, will I have a picture I had a picture. There is a picture | :33:50. | :33:55. | |
of me, and him, with girls. I don't know their age. What he did with | :33:55. | :34:00. | |
them afterwards, before, I haven't got a clue. But you see how that | :34:00. | :34:05. | |
could now be damaging for me. other development, that Newsnight | :34:05. | :34:08. | |
investigation, which was dropped, we have heard a bit more about what | :34:08. | :34:12. | |
is happening about that? This is the Pollard inquiry, named after | :34:12. | :34:17. | |
Nick Pollard, late of Sky News. It has emerged that the inquiry has | :34:17. | :34:21. | |
asked some members of BBC staff for documents. It is also embarked on | :34:21. | :34:26. | |
what is described as an electronic search of archive documents, | :34:26. | :34:30. | |
presumably e-mails and the like. The inquiry will have a barrister | :34:30. | :34:33. | |
asking questions of the interviewees, and they, in turn, | :34:33. | :34:38. | |
will be allowed to have their own lawyers. The inquiry will be in | :34:38. | :34:43. | |
private, but its final report will be published. They hope that will | :34:43. | :34:48. | |
be before the end of the month. Remember Friends Reunited, it was a | :34:48. | :34:53. | |
social media darling for a while, and then fell prey to a new fancy, | :34:53. | :34:58. | |
called Facebook. In the world of social media one of the newer | :34:58. | :35:02. | |
success stories is Tumblr, like Facebook before it has become an | :35:02. | :35:06. | |
internet phenomenon. In a moment we will debate how far it is fashion | :35:06. | :35:11. | |
or the solidity of a new business model. Paul Mason went to meet | :35:11. | :35:15. | |
Tumblr's founder, the very successful, 26-year-old, Karp. | :35:15. | :35:18. | |
There is a joke on the internet, Facebook is how you would like | :35:18. | :35:24. | |
others to see you, Twitter is how you see yourself, and Tumblr | :35:24. | :35:31. | |
is...oh look, funny cat picture! If so, David Karp has raised a heck of | :35:31. | :35:35. | |
a lot of money on the back of funny cat pictures. The 26-year-old is | :35:35. | :35:41. | |
the boss of the hottest property on the net. I tried to set up blogs on | :35:41. | :35:47. | |
the big publishing platforms at the time. I tried to tweet, I used | :35:47. | :35:52. | |
flick flicker, and all the other things -- Flickr and all the other | :35:52. | :35:57. | |
things around, I wanted something to be more expressive and present | :35:57. | :36:03. | |
myself in a way that I was proud of. What is Tumblr, if you are asking, | :36:03. | :36:08. | |
you are probably over 24 years old, you express videos and other stuff | :36:08. | :36:14. | |
to express yourself. It sounds mundane, but it is given rise to | :36:14. | :36:20. | |
something called "curating", this year's buzzword. What is curating? | :36:20. | :36:24. | |
Even if you are the guy who isn't in front of the camera playing | :36:24. | :36:27. | |
guitar, you can still express a point of view and the things you | :36:27. | :36:32. | |
care about, through the stuff you select. On Tumblr you find users do | :36:32. | :36:37. | |
just pull stuff together and it expresses them? They do all of it. | :36:37. | :36:40. | |
We have millions of creator, people who make the stuff, they are | :36:40. | :36:43. | |
getting in front of the camera, taking the photos and recording the | :36:43. | :36:50. | |
songs. They are making the tough. Around that you have tens of | :36:50. | :36:54. | |
millions of curators, and channelling into the blogs they | :36:54. | :37:00. | |
care about, and the audience of 150 million people that show up every | :37:00. | :37:07. | |
month. 150 million is small stuff compared to Facebook with one | :37:07. | :37:12. | |
billion. But it is host to smaller users, nail art is one,. You don't | :37:12. | :37:18. | |
think there is a level of narcissism going on, you put your | :37:18. | :37:21. | |
favourite Barbra Streisand song next to your cat, who is | :37:21. | :37:23. | |
interested? The interest is really to have something out there for the | :37:23. | :37:28. | |
people who care. It can be this really delightful surprise when you | :37:28. | :37:31. | |
bump into some stranger in Tumblr or anywhere on the Internet who | :37:31. | :37:35. | |
cares about the same things you do. I don't think it is narcissistic, I | :37:35. | :37:39. | |
think it is a whole new opportunity for humans to socialise, that | :37:40. | :37:44. | |
hasn't existed before. Social media has come a long way. Smartphones | :37:44. | :37:50. | |
and tablets and all the other gadgets we are queuing up to buy, | :37:50. | :37:55. | |
have put the power to create original content in the hands of | :37:55. | :38:00. | |
ordinary people. And Karp has raised $125 million of venture | :38:00. | :38:05. | |
capital on the idea it all has to go somewhere. All of this stuff is | :38:05. | :38:10. | |
on the hardware. I'm so excited about Apple and Google today are | :38:10. | :38:15. | |
pushing the hardware so far, so quickly. As the creative horse | :38:15. | :38:19. | |
power in that hardware moves faster and faster and faster as it seems | :38:19. | :38:23. | |
to be right now, the software I think will just explode around that. | :38:23. | :38:27. | |
You are starting to see that. There is a whole ecosystem of these | :38:27. | :38:30. | |
favourite apps that are popping up. What I'm most excited about in | :38:31. | :38:36. | |
social media is all the stuff people are making. That includes | :38:36. | :38:40. | |
trouble. Tumblr's breakthrough moment came when Occupy Wall Street, | :38:40. | :38:45. | |
used it to tell the story of the 99%. This making Karp one of the | :38:45. | :38:51. | |
few capitalists whose eyes light up at the thought of anarchists | :38:51. | :38:56. | |
protesting. The 99% blog started on Tumblr, started to garner all this | :38:56. | :39:00. | |
attention and the events ultimately ended up being organised through | :39:00. | :39:03. | |
communication going on Twitter, people saying we're going here, and | :39:03. | :39:07. | |
the police are there, and we are going here now. The reach you can | :39:07. | :39:12. | |
build out of a network like Tumblr, and the mass communication that is | :39:12. | :39:15. | |
able to go down in a network like Twitter is incredible, something | :39:15. | :39:18. | |
that has never existed before. There is the communication, the | :39:18. | :39:22. | |
other end is just the media. It is easier than ever for you and me, | :39:22. | :39:25. | |
people who may not have been the ones going in there and making the | :39:25. | :39:28. | |
stuff. It is easier than ever for you and me to make something that | :39:29. | :39:32. | |
is really compelling, really tells a story, and put that out into the | :39:32. | :39:37. | |
world and really move people. is a dark side to Tumblr, not just | :39:37. | :39:43. | |
porn, but lots of references to teenage angst, self-harm, eating | :39:43. | :39:47. | |
disorders. And Karp does intend to make profits out of other people's | :39:47. | :39:51. | |
content, by the time honoured method. Our model is pretty simple. | :39:51. | :39:54. | |
We have all of this attention built off all of the great work that | :39:54. | :39:59. | |
these creators are making, attracting an audience of 150 | :39:59. | :40:03. | |
million people, we are selling a little sliver of that attention to | :40:03. | :40:07. | |
marketers. Will it succeed? Nobody knows, where does the social metdia | :40:07. | :40:12. | |
go next, nobody knows that either - - media go next, nobody knows that | :40:12. | :40:16. | |
either, that's the point. We will try to figure that out, Suw | :40:16. | :40:23. | |
Charman Anderson is a social media consultant, and the editor of Wire | :40:23. | :40:31. | |
clouk is here. Some media -- wire.co.uk is here. Some media | :40:31. | :40:36. | |
sites you go on to and then move to the next one? There are social | :40:36. | :40:41. | |
media sites that come and go and you never hear of them. Other sites | :40:41. | :40:46. | |
like orchid huge for a while, and less popular now. There is a huge | :40:46. | :40:49. | |
ecosystem of media sites and social networks out there. There is a huge | :40:49. | :40:55. | |
big ones that most people have heard about, Facebook, Twitter, | :40:55. | :41:00. | |
linkedin. They are the players. Some of these big successful sites, | :41:00. | :41:04. | |
is there something that makes the break for them? Once you have | :41:04. | :41:07. | |
critical mass and you are the destination, it is hard for an | :41:07. | :41:11. | |
outside Tory breakthrough. If Facebook has a billion people | :41:11. | :41:13. | |
connected, that is where your friends will be. There is a barrier | :41:13. | :41:17. | |
to entry. Do they come and go, the Friends Reunited, or MySpace, | :41:17. | :41:20. | |
something like that, people can leave? Often it is the ones that | :41:20. | :41:26. | |
are in a hurry to make some revenue that fade away. Remember MySpace, | :41:26. | :41:32. | |
Miguel-Anxo Murado paid a lot of money for that, -- Rupert Murdock | :41:32. | :41:36. | |
went nowhere with that, it was founded on advertising and wasn't | :41:36. | :41:39. | |
about community. The people at Twitter and the other successful | :41:39. | :41:43. | |
networks are trying to get the user engagment right, a place where | :41:43. | :41:52. | |
people want to share and hang out, the money will probably follow. | :41:52. | :41:57. | |
Twitter and Facebook, people get angry at the idea ofed ands popping | :41:57. | :42:03. | |
up, it is not for the d ads popping up, it is for -- ads popping up, it | :42:03. | :42:08. | |
is not for the user? There is a risk of alienating users, people | :42:08. | :42:12. | |
don't want ads cutting into what they think of as a personal | :42:12. | :42:15. | |
conversation. There is also the risk, particularly for Twitter, | :42:15. | :42:20. | |
they foblg cuss so hard on a mass market -- focus so hard on a mass | :42:20. | :42:24. | |
marketing model, they are ignoring other sources of revenue. They are | :42:24. | :42:27. | |
putting themselves at risk. Because if the ads don't work for them. If | :42:27. | :42:32. | |
it doesn't make enough money, then they aren't set up to move on to a | :42:32. | :42:35. | |
different kind of revenue model. Like what. What would be better for | :42:35. | :42:39. | |
Twitter, do you think? There a few things they could do. Including | :42:39. | :42:45. | |
premium accounts and business accounts. When you look at networks | :42:45. | :42:49. | |
like linkedin, that gets two-thirds of revenues from fee, not | :42:49. | :42:56. | |
advertising. Advertising isn't the only way to make money. But Twitter | :42:56. | :42:59. | |
is resolutely ignoring other potential sources of income. | :42:59. | :43:03. | |
that another thing, you get interested for one reason or | :43:03. | :43:06. | |
another and building a community, then the ad, or something you | :43:06. | :43:11. | |
really don't like pops up, and that could be the death blow? Not so | :43:11. | :43:18. | |
much for Twitter. Twitter is all about tiny nuggets of communication. | :43:18. | :43:22. | |
140 characters. What screen does a tiny nugget of communication work | :43:22. | :43:27. | |
best at? On your smartphone. The smartphone, the mobile internet is | :43:27. | :43:36. | |
where the revenue will come from, that is why Facebook bought into | :43:36. | :43:40. | |
Instagram. For a slice of that. There is figures from a venture | :43:40. | :43:44. | |
capital firm a couple of months ago, that print media currently accounts | :43:44. | :43:49. | |
for 7% of our engagment time, but 25% of advertising. Mobile is about | :43:49. | :43:56. | |
10% of our time, but just 1% of advertising. It's going to cash up. | :43:56. | :44:00. | |
-- Catch up. In terms of the next five years or so. Have you any | :44:00. | :44:06. | |
thoughts of what will survive and what the social media landscape | :44:06. | :44:11. | |
will look like, so we can all make money out of it, what would you put | :44:11. | :44:15. | |
your money? Mobile is a key market. Mobile advertising is the nut to | :44:15. | :44:20. | |
crack. Facebook has done very well just over recent months in | :44:20. | :44:24. | |
increasing its mobile advertising revenue. They have 60% of users who | :44:24. | :44:30. | |
access Facebook through mobile. You are really looking at tools that | :44:30. | :44:36. | |
either allow people to achieve something really important, | :44:36. | :44:40. | |
Linkedin is about finding a job and your professional career, that | :44:40. | :44:45. | |
won't go away. Twitter and Facebook are about maintaining your social | :44:45. | :44:48. | |
life and maintaining social relationship, that won't go away as | :44:48. | :44:51. | |
a need. Whether Twitter and Facebook actually survive is | :44:51. | :44:54. | |
another kettle of fish. Do you really think so, given the size of | :44:54. | :45:00. | |
both of them? With Twitter, they aren't making a huge amount of | :45:00. | :45:03. | |
money at the moment. If they don't increase their revenues and start | :45:03. | :45:07. | |
to turn a healthy profit, there might be tension with the investors. | :45:07. | :45:12. | |
With Facebook the issue is the IPO, which was a bit of a shamble, and | :45:12. | :45:17. | |
their share price is shadeing at 55% lower than where it was in May | :45:17. | :45:23. | |
-- trading at 55% lower than where it was in May. That could cause | :45:23. | :45:27. | |
stormy seas for Facebook. That's all tonight, I'm back tomorrow. We | :45:27. | :45:30. | |
will leave you with the news that not everyone in the United States | :45:30. | :45:33. | |
is absolutely thrilled that Obama and Romney are back on the campaign | :45:33. | :45:43. | |
:45:43. | :45:47. | ||
trail. It is good to be back in Green Bay | :45:47. | :45:53. | |
Wisconsin. We have to take back America, I'm counting on you. | :45:53. | :46:01. | |
I'm tired of Barack Obama and Mitt Romney. That is why you are crying? | :46:01. | :46:11. | |
:46:11. | :46:11. | ||
Oh, it will be over soon Abbey. The Oh, it will be over soon Abbey. The | :46:11. | :46:13. | |
election will be over soon, OK? It is cold out and won't get warmer | :46:13. | :46:18. | |
over the next few days. A chilly start to the day, a brisk old wind | :46:18. | :46:21. | |
feeding showers across the country. Hit and miss, some place avoiding | :46:21. | :46:27. | |
them. Having a bright and breezy day, others seeing heavy downpours. | :46:27. | :46:31. | |
Mid-afternoon plenty of blue sky and sunshine. Temperatures aren't | :46:32. | :46:35. | |
perterrific, but out of the breeze and into the sun not too bad. | :46:35. | :46:38. | |
Shower towards the south coast. Some will be heavy, possibly | :46:38. | :46:46. | |
thundery too. It will be cold enough on the | :46:46. | :46:50. | |
higher ground of Wales. Not too many problems roaming the hills | :46:50. | :46:53. | |
tomorrow afternoon. Some sunshine inbetween. For Northern Ireland, | :46:53. | :46:56. | |
after a brightish start it will tend to cloud over with outbreaks | :46:56. | :47:00. | |
of rain pushing from the north. A disappointing end to the day here. | :47:00. | :47:05. | |
For Scotland, after an icey start in some place, plenty of sunshine | :47:05. | :47:08. | |
around, away from southern most areas across the borders. Hill snow. | :47:08. | :47:12. | |
As we hit the weekend, northern areas seeing that mixture again of | :47:12. | :47:15. | |
sunshine, a few showers, and it will be cold enough for further | :47:15. | :47:19. | |
snow over the high ground. Further south too, mixture, some bright | :47:19. | :47:22. | |
spells, but nobody, nobody is immune from some fairly sharp | :47:22. | :47:26. |