:00:11. > :00:25.Decision day approaches for Labour MPs.
:00:26. > :00:28.They are poised to decide who will take on Jeremy Corbyn.
:00:29. > :00:34.Will it be Angela Eagle or Owen Smith?
:00:35. > :00:36.It was another embarrassing day for Labour in the Commons,
:00:37. > :00:38.divided on Trident and with MPs turning on their leader.
:00:39. > :00:44.Whatever she is about to hear from our front bench,
:00:45. > :00:48.it remains steadfastly Labour Party policy to renew the deterrent
:00:49. > :00:50.while other countries have the capacity to threaten
:00:51. > :00:59.We'll debate the pros and cons of Corbyn, Eagle and Smith.
:01:00. > :01:03.Tonight on Newsnight, we're in Ohio, away
:01:04. > :01:09.from the politicians, the police, the
:01:10. > :01:11.predictable speeches,
:01:12. > :01:13.what does real America make of Mr Trump as the candidate
:01:14. > :01:17.And democracy is restored in Turkey, in President
:01:18. > :01:23.In the aftermath of the coup, President Erdogan and his
:01:24. > :01:25.supporters in the police and elsewhere want revenge.
:01:26. > :01:28.They are cracking down on what they call
:01:29. > :01:39.Already, nearly 6,000 people have been arrested.
:01:40. > :01:44.The new Prime Minister Theresa May lobbed a small nuclear device over
:01:45. > :01:46.at the Labour Party today, she gave them a vote
:01:47. > :01:49.on a Trident replacement, knowing that it was
:01:50. > :01:51.bound to exacerbate the leadership tensions there.
:01:52. > :01:57.The parliamentary motion in favour of a Trident replacement
:01:58. > :02:01.It was a binary motion - for or against, but Labour managed
:02:02. > :02:03.to split three ways - for, against and abstain.
:02:04. > :02:08.And tonight, Labour's leadership contest is also split three ways.
:02:09. > :02:10.Jeremy Corbyn, in the running of course, and two challengers
:02:11. > :02:13.putting themselves up for a fight, Angela Eagle and Owen Smith.
:02:14. > :02:20.The two challengers should become one before long.
:02:21. > :02:24.Our political editor Nick Watt is with me.
:02:25. > :02:35.the result of the Trident vote, any surprise? No surprise, parliament
:02:36. > :02:39.has voted overwhelmingly in favour of replacing Trident. That means a
:02:40. > :02:43.sizeable number of Labour in these voted with the government but
:02:44. > :02:47.crucially they voted for official Labour Party policy, to support the
:02:48. > :02:52.nuclear deterrent. Jeremy Corbyn, facing a leadership challenge, a
:02:53. > :02:56.great opportunity for him to burnish his credentials as a lifelong
:02:57. > :03:00.supporter of unilateral nuclear disarmament. Where does this leave
:03:01. > :03:04.the leadership race? We have learned that the two challengers, Angela
:03:05. > :03:10.Eagle and Owen Smith, are going to agree a unity candidate when
:03:11. > :03:13.nominations close at 5pm on Wednesday. The candidate with the
:03:14. > :03:17.fewest number of nominations will stand aside. So we thought with 48
:03:18. > :03:19.hours to go until the deadline, we would have a look at the dark horse
:03:20. > :03:29.candidate, Owen Smith. It isn't that long ago that the man
:03:30. > :03:33.who could be on the cusp of challenging Jeremy Corbyn for the
:03:34. > :03:39.leadership of the Labour Party was barely known outside the world of
:03:40. > :03:44.political think tanks. Bevan has gone. Owen Smith is being hailed by
:03:45. > :03:52.his friends as Labour's great hope, in the mould of his hero and fellow
:03:53. > :04:04.Welshman, Nye Bevan. Very much the soft left of the Labour Party. Much
:04:05. > :04:10.of is rooted in his own roots in Wales, someone who can see the other
:04:11. > :04:14.point of view and is able to create a bridge between different parts of
:04:15. > :04:18.the Labour Party. Smith has moved to distance himself from Tony Blair by
:04:19. > :04:23.calling for Klaus four of the Labour Party constitution to be rewritten
:04:24. > :04:29.once again, to contain an explicit commitment to tackle inequality.
:04:30. > :04:35.Some of the things that particularly excited me are his bold plans for
:04:36. > :04:39.the economy, now is the time we need to be investing in the future, not
:04:40. > :04:45.cutting back. That tradition of economic intervention. He's
:04:46. > :04:51.articulated that, really powerfully and passionately in a way I think
:04:52. > :04:55.that can win the next election on that platform. Critics in the Labour
:04:56. > :04:59.Party say that Owen Smith started his political career as an adviser
:05:00. > :05:04.to a Cabinet minister who was one of Tony Blair's greatest admirers. But
:05:05. > :05:08.his former boss points out that Smith was no fan of the most
:05:09. > :05:14.damaging legacy of the Blair in the, the Iraq war. On issues like the
:05:15. > :05:20.Iraq war, for example, he was with me in 2003 when I was the Northern
:05:21. > :05:26.Ireland Secretary in the Cabinet. He disagreed with the decision to go
:05:27. > :05:31.into the Iraq war and he stuck with that position. Owen Smith knows he
:05:32. > :05:36.has a challenge to show that he is a clean skin, untainted by Labour's
:05:37. > :05:43.period in office. Friends say that he was one of the first senior
:05:44. > :05:47.figures to clock the defining aspect of the party, the disconnect between
:05:48. > :05:55.the grassroot members and the elite. His loss in a loss solid -- in a
:05:56. > :05:58.solid Labour seat a decade ago taught him failure and never
:05:59. > :06:01.neglecting natural supporters. Friends say that his experience in
:06:02. > :06:05.the by-election has informed his approach to politics ever since. As
:06:06. > :06:10.soon as he arrived in Parliament in 2010 he said that Labour had to move
:06:11. > :06:12.on from the Blair and Brown era. Campaigning in the Scottish
:06:13. > :06:19.independence referendum, he predicted the collapse in support
:06:20. > :06:24.for Labour with the words" this feels like my constituency." He has
:06:25. > :06:38.an instinctive feel for Labour as a son of one of its great historians.
:06:39. > :06:46.His father, Dai Smith, the doyen of Street. It's only after Owen decided
:06:47. > :06:50.he would work with us that I got to know him -- of history. Owen Smith
:06:51. > :06:55.is working hard to show he is a man of the people. He ran into trouble
:06:56. > :07:01.today when he put his family to the fore, inviting comparisons with his
:07:02. > :07:04.rival, Angela Eagle, who is in a civil partnership. I'm glad you
:07:05. > :07:08.think I'm normal, I am normal, I grew up in a normal household, I
:07:09. > :07:12.have a wife and three children, my wife is a teacher. Owen Smith is a
:07:13. > :07:18.determined political fighter but he can sometimes appear a bit on
:07:19. > :07:22.worldly. During his time as a BBC radio producer he was once asked to
:07:23. > :07:26.get a police response to an unfolding crime story. Smith
:07:27. > :07:32.telephoned 999, prompting an official complaint by the Met. He
:07:33. > :07:33.made to be a bit more savvy if he's going to wrest control of the Labour
:07:34. > :07:38.Party. Just to give you one bit of data,
:07:39. > :07:41.for what it's worth. The bookies have Jeremy Corbyn
:07:42. > :07:43.as favourite to win the leadership race, but Owen Smith
:07:44. > :07:45.is not far behind. The odds imply a 54%
:07:46. > :07:47.chance of Corbyn winning, Well, I'm joined by three Labour MPs
:07:48. > :07:55.with three different views. Lisa Nandy is backing Owen Smith,
:07:56. > :08:01.Lilian Greenwood is supporting Angela Eagle and Barry Gardiner,
:08:02. > :08:13.who opposes the challenge Lilian, you published a speech that
:08:14. > :08:18.you gave to your party about why you weren't behind Jeremy Corbyn. What
:08:19. > :08:21.anecdote can you get from that that you would say is the most telling
:08:22. > :08:29.for what's wrong with the Corbyn leadership? For me, it's all about
:08:30. > :08:34.confidence or rather the lack of it. Calendar item is when rail fares go
:08:35. > :08:39.up at the start of the year and Labour had a brand-new policy, a
:08:40. > :08:43.very popular policy around renationalising the railways. We
:08:44. > :08:47.planned to go out and do the work on the 4th of January, we had activists
:08:48. > :08:50.ready to highlight our policy and ready to talk about the
:08:51. > :08:55.Conservatives' failure and that very day when we had started doing the
:08:56. > :09:00.media rounds, Jeremy Lawlor is re-shuffle and completely knocked it
:09:01. > :09:05.off the newspapers -- Jeremy launched his reachable. At a leader
:09:06. > :09:12.has to do reshuffle when he has two reshuffle. It wasn't a little press
:09:13. > :09:16.think it was a huge media item that was planned for a long time. If that
:09:17. > :09:20.was the only example, I wouldn't be saying that I'd lost confidence but
:09:21. > :09:25.unfortunately that was only one of many examples. Lisa, is that your
:09:26. > :09:32.experience too Western Mark during the leadership election when Jeremy
:09:33. > :09:35.fought on the ticket of changing politics, that was Barry welcomed
:09:36. > :09:40.and we should recognise it was an important moment for the party but
:09:41. > :09:45.the experienced Lilian described is the experience of many of my Shadow
:09:46. > :09:49.Cabinet colleagues, finding that the culture of having small groups
:09:50. > :09:52.around the leader making decisions outside of the collective leadership
:09:53. > :09:56.team has continued, we haven't been able to change that. What is worse
:09:57. > :10:02.is that when it became apparent that this was becoming a real crisis and
:10:03. > :10:04.a small group of us who are politically and personally
:10:05. > :10:08.sympathetic to Jeremy and the attempts he's made to bring people
:10:09. > :10:12.into his team went to see him it became very apparent that the
:10:13. > :10:17.collective leadership around him were not prepared to reach out and
:10:18. > :10:21.unite and compromise. In fact they were telling us they were going to
:10:22. > :10:25.do the opposite, even if the likely result is to smash the party. The
:10:26. > :10:32.truth is that none of us should support that. Barry Gardiner, why
:10:33. > :10:35.are you supporting that? I'm taking on the Conservatives because I
:10:36. > :10:40.believe it was incredible that at a time when we had seen the results of
:10:41. > :10:47.the referendum, when we had a Prime Minister being forced to resign as a
:10:48. > :10:55.result of it, our top team, as it were, went a while. I don't think
:10:56. > :10:59.that was right -- went AWOL. The weight in which it was done was to
:11:00. > :11:03.try and get Jeremy to resign rather than following the party process, to
:11:04. > :11:07.say we will have a contest and here is someone standing against them and
:11:08. > :11:11.they have 50 votes -- the way in which it was done. That would have
:11:12. > :11:15.been upfront, it would have been tough but it would have been
:11:16. > :11:21.according to the process. The rather nasty undermining process. They
:11:22. > :11:25.tried to force out without a vote. I think that was very wrong and it was
:11:26. > :11:31.disrespectful. You are shaking your head. That isn't how it was, that
:11:32. > :11:35.morning of the result when Jeremy called for the triggering of article
:11:36. > :11:39.50 without even talking to the Shadow Cabinet, without talking to
:11:40. > :11:45.the leader of the European Parliamentary Labour Party, was the
:11:46. > :11:50.last straw. I could imagine having to talk to my voters, there was a
:11:51. > :11:55.possibility of a very speedy general election, and they would ask me, do
:11:56. > :11:58.you think Jeremy is the right person to lead the country and I wouldn't
:11:59. > :12:03.be able to look them in the eye and say yes. Do you think he's the right
:12:04. > :12:06.person to lead the country? Let's say we have an election in October,
:12:07. > :12:12.you would say that he's the right man to be Prime Minister? As you
:12:13. > :12:22.know, I didn't support Jeremy nine months ago and I will be
:12:23. > :12:26.nominating... You would say that he should be Prime Minister? Any Labour
:12:27. > :12:29.leader is better than any Conservative Prime Minister because
:12:30. > :12:34.a Labour leader will deliver Labour policies and that is what is needed
:12:35. > :12:38.by the people who we serve in this country, the people who are
:12:39. > :12:43.marginalised, suffering from benefits cuts, the people who
:12:44. > :12:48.absolutely need jobs that are not just wasted jobs. One of the key
:12:49. > :12:51.test of a leader isn't whether he or she is prepared to stand up to their
:12:52. > :12:54.enemies but whether they are prepared to stand up to their
:12:55. > :13:00.friends and I think too much of what we've heard from people like Lilian
:13:01. > :13:02.has shown that actually we don't have a situation in the Labour Party
:13:03. > :13:08.where someone is prepared to do that. I also think, Barry, honestly,
:13:09. > :13:11.that this isn't just about members of Parliament losing confidence in
:13:12. > :13:16.Jeremy. We know that the membership is divided. Many people absolutely
:13:17. > :13:22.support Corbyn and many people oppose him. We cannot be a united
:13:23. > :13:25.political force if both the parliamentary party and large
:13:26. > :13:30.sections of the membership have lost confidence in the leader. Including
:13:31. > :13:36.newcomer from the sounds of this. All -- including you, from the
:13:37. > :13:41.sounds of this. We don't own the party as members of Parliament, the
:13:42. > :13:45.party operates according to democratic processes and what we
:13:46. > :13:47.need to do is to find a negotiated way forward where all sides of the
:13:48. > :13:57.party... Part two is both of you, backing
:13:58. > :14:03.different candidates for checking on Jeremy Corbyn. Give me the 12 word
:14:04. > :14:09.pitch. I am backing Angela Eagle because... I am not clear what the
:14:10. > :14:14.distinctive pitches are. What is it that makes you back Angela Eagle? We
:14:15. > :14:19.need somebody who can heal the party and the country and I think Angela
:14:20. > :14:25.has got the experience, we have seen her resting George Osborne, the
:14:26. > :14:28.experience of uniting the party, a brilliant chair of the national
:14:29. > :14:34.policy forum, she is not factional and is frankly courageous. I think
:14:35. > :14:40.it is about time the Labour Party was led by a woman. What is your
:14:41. > :14:46.short pitch? I would agree with something one said, he would be
:14:47. > :14:50.proud to serve under Angela Eagle if she emerged as a candidate and I
:14:51. > :15:00.would echo that, I would do so with real pride. But what is good? What I
:15:01. > :15:03.want in a Labour Party leader is someone with socialist values but a
:15:04. > :15:08.plan to achieve them, who understands deeply that the way we
:15:09. > :15:12.get the best answers for the country is to draw upon all the traditions
:15:13. > :15:16.of the party in the Shadow Cabinet and the membership and somebody who
:15:17. > :15:20.is relentlessly focused on the challenges we have now and coming
:15:21. > :15:24.down the line rather than rehearsing old arguments of the past. How
:15:25. > :15:28.important is it that a woman should be leader? Angela Eagle is making a
:15:29. > :15:37.lot of that. When you say, would you drop out, it is basically about the
:15:38. > :15:41.X chromosome? It is primarily about her qualities as a person, about
:15:42. > :15:48.what I have seen of her in the time I have known her and were both pride
:15:49. > :15:55.trading women but the Tories have got their second female Prime
:15:56. > :16:00.Minister, goodness knows... 2-0! And for the party that is founded on the
:16:01. > :16:03.basis of equality, I would agree, I would love a woman leader, but
:16:04. > :16:07.equally I would love to see a feminist in Number 10 Downing St, I
:16:08. > :16:15.don't believe we have that, Owen Smith is that person. Who is the
:16:16. > :16:18.more left-wing? I am not sure. I would not say you cannot tell the
:16:19. > :16:23.difference but what is happening in this debate is in many domestic
:16:24. > :16:27.policy areas, there is not a huge mound of difference between members
:16:28. > :16:33.of the Labour Party, I think myself, Harry, Lillian, we fundamentally
:16:34. > :16:37.agree about the NHS in public hands, the railways in public hands and
:16:38. > :16:41.that the basis of the economy should be about investment and not just
:16:42. > :16:45.cuts. All of us are united on that and that is why we need a candidate
:16:46. > :16:50.who can reach out across the party and bring us together. Barry
:16:51. > :16:56.Gardiner, who would you support? Jeremy Corbyn? I am not supporting
:16:57. > :17:02.or nominating anybody. You are members of the party. In the end, I
:17:03. > :17:06.will have a vote. But I don't know. I will listen to the arguments as
:17:07. > :17:11.they are made for the next couple of months and at the end of the day, I
:17:12. > :17:13.will vote for whoever I think represents the best chance of us
:17:14. > :17:20.getting a Labour government. There is an argument that I have heard
:17:21. > :17:23.that is, you are saving the best candidates for the next leadership
:17:24. > :17:30.election. These two are not the true a list. Lisa, you have been
:17:31. > :17:36.mentioned as that! Why are you not running? Because I think that Owen
:17:37. > :17:40.Smith is the best candidate and he asked me the same question and I
:17:41. > :17:44.said that I think you should do this, you are the person to unite
:17:45. > :17:47.this party and win the election and he would make an amazing Prime
:17:48. > :17:52.Minister. You would support him, of all the other Labour MPs, you will
:17:53. > :17:59.lose the next one and take one for the team... No, he is my top pick to
:18:00. > :18:03.leave this party. Can you say the same thing about Angela Eagle?
:18:04. > :18:07.Absolutely, there was no way I am writing off the next election, I
:18:08. > :18:11.want to win the next election, that is why I am making the argument is,
:18:12. > :18:17.the voters who put me in Westminster need a Labour government. And one
:18:18. > :18:21.last quick one, there is a deal that only one of them can stand to beat
:18:22. > :18:27.Jeremy Corbyn because it focuses the debate about one or the other rather
:18:28. > :18:31.than some confused message? You cannot have two people standing on a
:18:32. > :18:37.unity ticket and the truth is, both Angela and Owen Smith can reach out
:18:38. > :18:41.to heal some of these divisions and unite the party and that is why we
:18:42. > :18:46.need one of them going forward. Angela Will Pooley out? Everybody in
:18:47. > :18:51.the Labour Party would like there to be one single candidate but it has
:18:52. > :18:54.to be someone who can reach out to the Parliamentary party but unite
:18:55. > :18:57.all of the wings of the party amongst the membership and I know
:18:58. > :19:02.that Angela Eagle can do that but I have no doubt that Owen Smith could
:19:03. > :19:05.also do that. -- Owen Smith. Thank you all.
:19:06. > :19:07.Well, these are exceptional political times over here.
:19:08. > :19:10.But they are also exceptional over in the US - the Republican National
:19:11. > :19:12.Convention getting ready to crown Donald Trump this week
:19:13. > :19:15.as its Presidential candidate in the election in November.
:19:16. > :19:16.It's all happening over in Cleveland, Ohio.
:19:17. > :19:29.Good evening. Almost ready, we should say. You join us from
:19:30. > :19:34.Cleveland, Ohio, on a night of high drama - if we have learned one thing
:19:35. > :19:38.about politics and the last month, is that predicted that he is dead
:19:39. > :19:42.and tonight delegates have been trying to overturn the rules of the
:19:43. > :19:47.convention that will secure Donald Trump that nomination. They have
:19:48. > :19:51.been asking for a roll call to recognise every individual vote
:19:52. > :19:56.rather than the block vote of each state, it is cognitive stuff but
:19:57. > :20:00.essentially there is still an insurgency RFID. The Colorado
:20:01. > :20:01.delegation which understand was walking out of you in protest in
:20:02. > :20:07.response to this... In the opinion of the chair,
:20:08. > :20:27.the ayes have it. APPLAUSE
:20:28. > :20:31.If it sounds like the attempted coup has failed, we're hearing that the
:20:32. > :20:37.Colorado delegation is going to try again. This is an embarrassing
:20:38. > :20:41.moment for the self-styled law and order candidate, Donald Trump. And
:20:42. > :20:46.the convention is set against a backdrop of disunity, not just here
:20:47. > :20:51.but across the country as America reels from more racially motivated
:20:52. > :20:54.killings. Donald Trump has called America and divided crime scene. Is
:20:55. > :20:57.he the man to offer unity? We begin our report away
:20:58. > :21:00.from the pomp and proceedure, on the dirt tracks of Trumbull
:21:01. > :21:03.country. A Sunday afternoon spent bashing up
:21:04. > :21:08.cars is a strangely, They call this Demolition DARby -
:21:09. > :21:15.DURby, here - and it pulls in the mostly white crowds
:21:16. > :21:19.from rural Ohio. You just take a regular
:21:20. > :21:21.old American-made car and strip it down to the bare bones and you bring
:21:22. > :21:25.it out here and you smash it and smash it until
:21:26. > :21:28.there is nothing left. If it sounds like a metaphor
:21:29. > :21:31.for what Donald Trump is doing to the Republican Party right now,
:21:32. > :21:33.Democrats like Michael The convention begins today,
:21:34. > :21:36.just a couple of It will probably be more of a wreck
:21:37. > :21:44.than what you will see today! The Confederate flag,
:21:45. > :21:46.a symbol of southern They will tell you it is about
:21:47. > :21:52.pride, but it is a vestige of the country's civil war
:21:53. > :21:55.and a reminder of the deep divisions Kyle here sees Donald
:21:56. > :22:00.Trump as his Superman. And Superman, don't forget, fights
:22:01. > :22:03.a never-ending battle for truth, I don't know much about
:22:04. > :22:11.politics but I'll wing it! If you are an idiot
:22:12. > :22:16.and you are screwing up America, he will tell you and
:22:17. > :22:19.then will fix it. And, to be fair, America itself
:22:20. > :22:21.is feeling pretty ANNOUNCER: Please give a warm
:22:22. > :22:24.welcome to the chairman of the Republican National Committee -
:22:25. > :22:30.Reince Priebus of Wisconsin. As the convention opened,
:22:31. > :22:33.the committee chairman, Reince Priebus, welcomed
:22:34. > :22:35.delegates with a brief Our nation grieves when we see
:22:36. > :22:41.these awful killings. Will you join me in a moment
:22:42. > :22:44.of silence? Outside, they find less
:22:45. > :22:53.euphemistic ways of saying it. Donald Trump has looked
:22:54. > :22:55.at the racial tension that has erupted in Baton Rouge, in Dallas,
:22:56. > :22:58.in Ferguson and beyond, and called America
:22:59. > :23:01."a divided crime scene" - wilfully oblivious, perhaps,
:23:02. > :23:03.of the effect his own language He points to Obama as the man
:23:04. > :23:10.to blame for weakness and calls himself the candidate
:23:11. > :23:16.for law and order. He is not helping to promote
:23:17. > :23:18.dialogue between people. He is just trying to
:23:19. > :23:20.promote more division. Do you think that racial tensions
:23:21. > :23:23.in the country have got worse? I tell you what,
:23:24. > :23:27.talking is over with. We want this and we want this,
:23:28. > :23:31.do you know what I mean? What does that mean,
:23:32. > :23:32.payback time is over? An eye for an eye and
:23:33. > :23:35.a tooth for a tooth. The latest poll here for NBC gives
:23:36. > :23:47.Donald Trump a stunning 0% support from black voters in Ohio,
:23:48. > :23:49.a crucial electoral battleground that has picked the Presidential
:23:50. > :23:54.winner the last 13 times. He is causing people who have
:23:55. > :24:00.all this hate towards minorities and these other kinds of people that
:24:01. > :24:03.aren't part of the majority, and everything he stands
:24:04. > :24:08.for is causing them to rise up. Crime rates have actually declined
:24:09. > :24:10.in recent years but Trump's invocation of law and order
:24:11. > :24:14.and his message to the majority echoes another Republican leader
:24:15. > :24:20.at a time of historic unrest. "The silent majority" was a phrase
:24:21. > :24:25.first used by Nixon in 1960s to speak to those who didn't protest
:24:26. > :24:29.the Vietnam War, but it quickly became a rallying call to white
:24:30. > :24:31.conservatives amidst the black It appealed to those who felt left
:24:32. > :24:38.behind, dispossessed by a perceived threat
:24:39. > :24:41.to their way of life. And crucially - then, as now -
:24:42. > :24:44.the language pitting minority Trump has adapted his slogan today
:24:45. > :24:57.to "Make America Safe Again". And there will be plenty more
:24:58. > :24:59.than happy to come For all those who worry
:25:00. > :25:03.about the mud-flinging, there are plenty more
:25:04. > :25:05.who appreciate his rhetoric At a time when few of those in power
:25:06. > :25:11.seem to offer tangible solutions, they see a man unafraid to call it
:25:12. > :25:15.as it is and think it is time that someone, somewhere came
:25:16. > :25:27.to clear up the mess. Emily in Ohio and she will be
:25:28. > :25:30.reporting from the convention throughout the week.
:25:31. > :25:32.If you wanted to be proud of any modern British company,
:25:33. > :25:35.you probably couldn't select a better one than ARM
:25:36. > :25:38.It doesn't make anything, but it is the brains behind
:25:39. > :25:42.the chips that power the smartphones we all buy; and in fact,
:25:43. > :25:44.its chips are in many other devices, too.
:25:45. > :25:47.It designs them and gets a few pence every time one is sold.
:25:48. > :25:49.And fortunately for ARM, billions are sold each year.
:25:50. > :25:52.The A in ARM, by the way, once stood for Acorn,
:25:53. > :25:57.for those who remember those early days of Acorn Computers.
:25:58. > :26:02.So should we worry that ARM may soon be part of a large Japanese group?
:26:03. > :26:05.Here's our business editor, Helen Thomas.
:26:06. > :26:09.You may not immediately recognise the name ARM Holdings,
:26:10. > :26:12.but the UK's biggest technology company has a hand in almost
:26:13. > :26:18.ARM's chip designs underpin the technology in about 95%
:26:19. > :26:23.of the smartphones sold globally last year.
:26:24. > :26:26.From its start in Cambridge with just 12 engineers in 1990,
:26:27. > :26:30.ARM has grown at speed and its sales have nearly doubled in the past five
:26:31. > :26:33.years and quadrupled over the past decade.
:26:34. > :26:35.But the company makes only a tiny sliver of its revenues
:26:36. > :26:41.Its biggest customers are overseas technology companies based
:26:42. > :26:46.in places like the US, China and Taiwan.
:26:47. > :26:49.That global dominance caught the eye of Japan's SoftBank, a telecoms
:26:50. > :26:57.They're betting ?24 billion that ARM can replicate its dominance
:26:58. > :27:01.in smartphones in what's called the Internet of Things -
:27:02. > :27:04.connecting up physical devices from buildings and to household
:27:05. > :27:09.appliances so they can talk to each other.
:27:10. > :27:11.So, should SoftBank's interest be welcomed or is this another
:27:12. > :27:17.example of a home-grown champion going overseas?
:27:18. > :27:19.Theresa May has struck a cautious note on foreign takeovers
:27:20. > :27:21.but today her new Chancellor of the Exchequer gave
:27:22. > :27:27.The fact that a Japanese company, just three weeks after
:27:28. > :27:34.the referendum decision, is prepared to make this kind
:27:35. > :27:37.of commitment to the UK and commit to grow that kind
:27:38. > :27:39.of business here in the UK, is a resounding endorsement
:27:40. > :27:41.of the resilience of the British economy.
:27:42. > :27:44.One of ARM's founders, at least, reckons it's too soon to say
:27:45. > :27:48.whether a takeover by SoftBank should be mourned or celebrated.
:27:49. > :27:54.To me, in this Internet of Things idea, there are things that ARM
:27:55. > :27:57.is doing and things that SoftBank is doing and if you can put those
:27:58. > :28:00.two ideas together and make them bigger and better and move
:28:01. > :28:04.If you do it appallingly, it's the opposite of a win,
:28:05. > :28:09.One source of comfort should be a series of SoftBank guarantees.
:28:10. > :28:12.The Japanese company has pledged to double ARM's UK workforce over
:28:13. > :28:17.And to keep its headquarters in Cambridge.
:28:18. > :28:20.ARM's business isn't linked to the UK economy.
:28:21. > :28:23.You could hardly find a more international business.
:28:24. > :28:25.But SoftBank says it wants to invest, not cut,
:28:26. > :28:30.and it wants to use this country as a base for innovation.
:28:31. > :28:34.But this is the first time these kinds of legally enforceable
:28:35. > :28:38.pledges have been used in a large UK takeover,
:28:39. > :28:41.so who, in five years' time, is going to aggressively enforce
:28:42. > :28:52.One concern is that UK companies may be snapped up by buyers taking
:28:53. > :29:00.But ARM's strong share price performance since the vote to leave
:29:01. > :29:03.the EU, plus a hefty price tag, means SoftBank isn't exactly
:29:04. > :29:07.ARM's founding CEO has another worry about what Brexit means
:29:08. > :29:11.We started in the UK, which happens to be in Europe
:29:12. > :29:15.and there is European funding available in
:29:16. > :29:17.a collaborative programme called the Open Microprocessors Systems
:29:18. > :29:19.Initiative that made a huge contribution to the early
:29:20. > :29:25.If we cast off from Europe, the UK isn't going to have that advantage.
:29:26. > :29:28.I hope the government can keep that onside in whatever
:29:29. > :29:32.With the takeover of ARM, the UK-listed tech sector
:29:33. > :29:34.is losing not just a limb, but its backbone.
:29:35. > :29:37.The UK's latest crop of start-ups could face new challenges getting
:29:38. > :29:45.to the head of the pack in global tech.
:29:46. > :29:47.Hermann Hauser was one of the founders of ARM and joins us
:29:48. > :30:00.Good evening. You said this is one of the saddest days of your life.
:30:01. > :30:03.Let me push you on wire. The company have said that they will preserve
:30:04. > :30:09.ARM in Cambridge, keep the management, doubling the UK
:30:10. > :30:13.headcount, so why are you so sad about it being bought by the
:30:14. > :30:17.Japanese? ARM has been the greatest achievement in my life and the
:30:18. > :30:23.reason I'm sad, not just for myself but technology in Britain, the next
:30:24. > :30:28.generation of the architecture of smartphones but more importantly the
:30:29. > :30:31.upcoming architecture of the Internet of things, which is going
:30:32. > :30:36.to be a wave that is much larger than the smartphone waves, will
:30:37. > :30:40.ultimately be designed in Japan and not the UK. What did you think of
:30:41. > :30:48.Philip Hammond's comments, you probably heard them, that this is a
:30:49. > :30:52.vote of confidence in Britain after Brexit? He's putting a brave face on
:30:53. > :30:55.the fact that we've lost the one remaining high technology company
:30:56. > :31:02.that has a global footprints. 15 billion ARMs sold last year, a high
:31:03. > :31:08.percentage of the phones and there is no other UK tech company that has
:31:09. > :31:13.that kind of global reach. More importantly, ARM can be the key
:31:14. > :31:17.building block of putting an industrial strategy together for the
:31:18. > :31:22.UK in the Internet of things. Tell me, if you were designing policy, if
:31:23. > :31:26.Philip Hammond or Greg Clark, the new industry Minister was sitting
:31:27. > :31:30.with you, what would you say they should do? I'm not thinking you want
:31:31. > :31:38.the government to decide who owns what. Generally people think there
:31:39. > :31:43.is room for a market in corporate control, so what would you like the
:31:44. > :31:49.government to do? I was delighted to hear Theresa May in her speech in
:31:50. > :31:53.front of number ten saying that industrial strategy is something
:31:54. > :32:01.that she will support. The Internet of things is just happening right
:32:02. > :32:06.now. The basic rules about how we build on top of the basic hardware,
:32:07. > :32:13.which is already all ARM -based, so we've almost all won that basis of
:32:14. > :32:18.the building blocks, what is needed now is the higher layers, the cyber
:32:19. > :32:23.Security and most importantly, who owns the data? What would you like
:32:24. > :32:27.the government to do? Would you like them to veto it and save sorry, even
:32:28. > :32:33.though the management say that you should be able to buy it,
:32:34. > :32:37.shareholders don't want to stop it, the government should say that it
:32:38. > :32:41.cannot be bought and sold by the Japanese? I think it's too late for
:32:42. > :32:45.that. Theresa May might introduce something like a golden share, for
:32:46. > :32:50.the really strategically important companies in the future but for ARM,
:32:51. > :32:54.this is too late. But you would like such a system? Let's face it, many
:32:55. > :33:00.other countries intervened more than we do. AstraZeneca, a good example,
:33:01. > :33:08.Obama basically blocked it, we didn't. Astra Zeneca is one of those
:33:09. > :33:11.key companies. They played the leadership role in Cambridge and ARM
:33:12. > :33:16.could do it the same in the tech sector. Do you think that we are
:33:17. > :33:22.selling the company to cheaply? If you had ?25 billion, would you say
:33:23. > :33:25.that the Japanese are getting it to cheaply, I will make a bigger bid
:33:26. > :33:32.for the company because it is worth more? Absolutely. I think ARM is at
:33:33. > :33:37.the centre of the next generation of the next wave of computing. I hear
:33:38. > :33:40.talk about the six waves of computing and every new brave is
:33:41. > :33:44.bigger than the previous one. We are in the middle of the smartphone
:33:45. > :33:49.waves but the next one, everything being connected and there is a
:33:50. > :33:53.simple interface for these things which will be connected through
:33:54. > :33:58.voice. This will be so much bigger than the smartphones and we have an
:33:59. > :34:04.opportunity to define the basic architecture of it. But if the
:34:05. > :34:09.Japanese are paying too little, why was the share price so much lower
:34:10. > :34:15.until they made the offer? Well, because sadly there are very few
:34:16. > :34:24.people who seek the opportunity in the Internet of things and have the
:34:25. > :34:30.money to pay the price, the premium, which is good, but not fantastic.
:34:31. > :34:31.40%. Taking a gamble and reaping the benefits, as they well. Thank you
:34:32. > :34:36.for joining us. What a strange Friday night-
:34:37. > :34:39.Saturday morning it was in Turkey. A coup that collapsed
:34:40. > :34:41.within 14 hours. It caused deaths in the hundreds
:34:42. > :34:44.and did almost the exact opposite of what its leaders had set out
:34:45. > :34:47.to achieve, in that it appears to have strengthened the position
:34:48. > :34:51.of President Erdogan and given him a pretext for a clampdown
:34:52. > :34:55.on opponents. Turkey, in the aftermath
:34:56. > :34:58.of the coup, is a turbulent place. Now it matters to us
:34:59. > :35:00.for four reasons: It's applying to join,
:35:01. > :35:05.although membership looks more The Syrian civil war and Isis, it's
:35:06. > :35:13.an important player in events there. And migrants, Turkey
:35:14. > :35:15.is relieving pressure on Greece. Then there is also the fact
:35:16. > :35:18.that the last thing anyone needs is for more instability
:35:19. > :35:19.in that neighbourhood. Our diplomatic editor Mark Urban
:35:20. > :35:22.managed to get to Ankara on Sunday, Plenty of lives have been smashed
:35:23. > :35:36.here in the last few days. At Kocatepe Mosque,
:35:37. > :35:39.relatives of eight policemen killed on Friday
:35:40. > :35:41.attended their funeral. At this moment of national crisis,
:35:42. > :35:49.those already bereaved are voiced the hope that it
:35:50. > :35:52.will not claim more lives. TRANSLATION: My child
:35:53. > :35:55.was 19 years old. Phalanxes of police
:35:56. > :36:06.were on hand and hundreds of supporters of President
:36:07. > :36:11.Erdogan's ruling party. But the public at large
:36:12. > :36:15.have been held back. The trouble may not be over
:36:16. > :36:18.and in waves of arrests, Turkey's leader has
:36:19. > :36:20.called into question the loytalty of big parts
:36:21. > :36:21.of In the aftermath of the coup,
:36:22. > :36:29.President Erdogan and his supporters, in the police
:36:30. > :36:31.and elsewhere, want revenge. They are cracking down
:36:32. > :36:33.on what they call Already nearly 6,000
:36:34. > :36:40.people have been arrested. The response has
:36:41. > :36:43.been swift and hard. These chiefs from military
:36:44. > :36:47.intelligence, accused of being plotters, bandaged and uttered
:36:48. > :36:51.and paraded this morning. so-called Gulenist network,
:36:52. > :36:56.sympathisers of exiled Islamist But the scale of arrests prompts
:36:57. > :37:05.opposition scepticism. That's why it's a big
:37:06. > :37:14.question over this executive order, expelling all
:37:15. > :37:18.of them, from the army, from the police, from
:37:19. > :37:21.So this is an extraordinary situation.
:37:22. > :37:24.At Ankara's police HQ, evidence of how
:37:25. > :37:30.The coup plotters attacked it first with a
:37:31. > :37:33.helicopter, then bombed it from a jet fighter before
:37:34. > :37:38.While all the time, police inside held out.
:37:39. > :37:42.What triggered the coup, and how could
:37:43. > :37:47.the thousands of judges, army people and police now arrested
:37:48. > :37:52.or dismissed already be found guilty by association?
:37:53. > :37:56.The list for a crackdown had already been prepared,
:37:57. > :38:06.a senior government MP has confirmed to Newsnight.
:38:07. > :38:09.TRANSLATION: We were getting ready for them.
:38:10. > :38:11.We have been gathering evidence against them for
:38:12. > :38:17.All the political parties want to fight this
:38:18. > :38:28.Parliament was also hammered by the plotters.
:38:29. > :38:32.On Friday, supporters of
:38:33. > :38:36.all parties united in opposition to the coup, but now the governing
:38:37. > :38:39.party, with its explanation of the conspiracies it's
:38:40. > :38:42.thwarted, seeks to reap all the political rewards.
:38:43. > :38:46.Having struck so many institutions of the
:38:47. > :38:49.Turkish state and of course the parliament itself,
:38:50. > :38:52.it's rather hard to see the plotters as acting in any
:38:53. > :38:59.The opposition united against them and many Turks seem ready to accept
:39:00. > :39:03.the government line that these plotters were members of a secret
:39:04. > :39:09.sect, a parallel structure, the Gulenist movement.
:39:10. > :39:13.But how credible is it that thousands of soldiers and
:39:14. > :39:17.police, as well as a big slice of the high command, would support a
:39:18. > :39:22.The opposition accuse Erdogan of finding
:39:23. > :39:28.a pretext for a wholesale clear out of anyone suspected of disloyalty.
:39:29. > :39:34.He is the one polarising society, dividing the society.
:39:35. > :39:40.Using the half of the population in his own
:39:41. > :39:44.policies' favour and the rest are feeling excluded, second-class
:39:45. > :39:57.At the funeral of Ankara police killed on Friday, Erdogan
:39:58. > :39:59.supporters in the crowd chanted for the plotters to get the death
:40:00. > :40:04.Though a senior member of his party has told us it won't happen and that
:40:05. > :40:07.evidence of the Gulen movement's role in the coup will be
:40:08. > :40:21.TRANSLATION: We are patient but our patience has run out.
:40:22. > :40:26.Everything we do, we will do legally.
:40:27. > :40:28.In the aftermath of what many Turks are calling the Event,
:40:29. > :40:31.the country's rulers seek to channel their supporters' righteous anger.
:40:32. > :40:36.But while the wider Turkish public or foreigners might question the
:40:37. > :40:38.government's rubric that the purge is now
:40:39. > :40:49.coup, Erdogan's people are determined to seize their moment.
:40:50. > :40:53.Did we tell you about what's happening on Saturday, the 23rd of
:40:54. > :40:55.July? The British people have spoken
:40:56. > :40:58.and the answer is, we're out. I love this country and I feel
:40:59. > :41:06.honoured to have served it. A political landscape
:41:07. > :41:09.changed for ever. I know that virtually none
:41:10. > :41:12.of you have ever done The Scottish parliament
:41:13. > :41:23.should have the right Exactly one month after
:41:24. > :41:29.the UK's momentous vote... Brexit means Brexit,
:41:30. > :41:31.and we're going to make a success ..Newsnight hosts a special day
:41:32. > :41:37.of discussion and debate on Brexit A divided nation
:41:38. > :41:42.and its relationship Tickets for this event, to be held
:41:43. > :41:48.at the Royal Geographical Society in London, are available
:41:49. > :41:52.on the Newsnight website. And we'll be live on BBC
:41:53. > :42:00.Two, 6pm on Saturday. What better can you do on a summer
:42:01. > :42:03.weekend? You may have been mystified this
:42:04. > :42:08.weekend by all the people wondering the streets doing the
:42:09. > :42:10.Pokemon phone thing. So, courtesy of the Useless Duck
:42:11. > :42:12.Company, here's our ongoing series, Tonight,
:42:13. > :42:37."Part 1 - How to Throw a Pokeball". Monday was the hottest day of the
:42:38. > :42:40.year so far with 30 degrees in London. We are going to break that
:42:41. > :42:41.by several degrees