18/07/2016 Newsnight


18/07/2016

Analysis of the day's headlines with Evan Davis. It's Smith v Eagle for the right to face Jeremy Corbyn for Labour leadership. Plus Trump v Clinton.


Similar Content

Browse content similar to 18/07/2016. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

Decision day approaches for Labour MPs.

:00:11.:00:25.

They are poised to decide who will take on Jeremy Corbyn.

:00:26.:00:28.

Will it be Angela Eagle or Owen Smith?

:00:29.:00:34.

It was another embarrassing day for Labour in the Commons,

:00:35.:00:36.

divided on Trident and with MPs turning on their leader.

:00:37.:00:38.

Whatever she is about to hear from our front bench,

:00:39.:00:44.

it remains steadfastly Labour Party policy to renew the deterrent

:00:45.:00:48.

while other countries have the capacity to threaten

:00:49.:00:50.

We'll debate the pros and cons of Corbyn, Eagle and Smith.

:00:51.:00:59.

Tonight on Newsnight, we're in Ohio, away

:01:00.:01:03.

from the politicians, the police, the

:01:04.:01:09.

predictable speeches,

:01:10.:01:11.

what does real America make of Mr Trump as the candidate

:01:12.:01:13.

And democracy is restored in Turkey, in President

:01:14.:01:17.

In the aftermath of the coup, President Erdogan and his

:01:18.:01:23.

supporters in the police and elsewhere want revenge.

:01:24.:01:25.

They are cracking down on what they call

:01:26.:01:28.

Already, nearly 6,000 people have been arrested.

:01:29.:01:39.

The new Prime Minister Theresa May lobbed a small nuclear device over

:01:40.:01:44.

at the Labour Party today, she gave them a vote

:01:45.:01:46.

on a Trident replacement, knowing that it was

:01:47.:01:49.

bound to exacerbate the leadership tensions there.

:01:50.:01:51.

The parliamentary motion in favour of a Trident replacement

:01:52.:01:57.

It was a binary motion - for or against, but Labour managed

:01:58.:02:01.

to split three ways - for, against and abstain.

:02:02.:02:03.

And tonight, Labour's leadership contest is also split three ways.

:02:04.:02:08.

Jeremy Corbyn, in the running of course, and two challengers

:02:09.:02:10.

putting themselves up for a fight, Angela Eagle and Owen Smith.

:02:11.:02:13.

The two challengers should become one before long.

:02:14.:02:20.

Our political editor Nick Watt is with me.

:02:21.:02:24.

the result of the Trident vote, any surprise? No surprise, parliament

:02:25.:02:35.

has voted overwhelmingly in favour of replacing Trident. That means a

:02:36.:02:39.

sizeable number of Labour in these voted with the government but

:02:40.:02:43.

crucially they voted for official Labour Party policy, to support the

:02:44.:02:47.

nuclear deterrent. Jeremy Corbyn, facing a leadership challenge, a

:02:48.:02:52.

great opportunity for him to burnish his credentials as a lifelong

:02:53.:02:56.

supporter of unilateral nuclear disarmament. Where does this leave

:02:57.:03:00.

the leadership race? We have learned that the two challengers, Angela

:03:01.:03:04.

Eagle and Owen Smith, are going to agree a unity candidate when

:03:05.:03:10.

nominations close at 5pm on Wednesday. The candidate with the

:03:11.:03:13.

fewest number of nominations will stand aside. So we thought with 48

:03:14.:03:17.

hours to go until the deadline, we would have a look at the dark horse

:03:18.:03:19.

candidate, Owen Smith. It isn't that long ago that the man

:03:20.:03:29.

who could be on the cusp of challenging Jeremy Corbyn for the

:03:30.:03:33.

leadership of the Labour Party was barely known outside the world of

:03:34.:03:39.

political think tanks. Bevan has gone. Owen Smith is being hailed by

:03:40.:03:44.

his friends as Labour's great hope, in the mould of his hero and fellow

:03:45.:03:52.

Welshman, Nye Bevan. Very much the soft left of the Labour Party. Much

:03:53.:04:04.

of is rooted in his own roots in Wales, someone who can see the other

:04:05.:04:10.

point of view and is able to create a bridge between different parts of

:04:11.:04:14.

the Labour Party. Smith has moved to distance himself from Tony Blair by

:04:15.:04:18.

calling for Klaus four of the Labour Party constitution to be rewritten

:04:19.:04:23.

once again, to contain an explicit commitment to tackle inequality.

:04:24.:04:29.

Some of the things that particularly excited me are his bold plans for

:04:30.:04:35.

the economy, now is the time we need to be investing in the future, not

:04:36.:04:39.

cutting back. That tradition of economic intervention. He's

:04:40.:04:45.

articulated that, really powerfully and passionately in a way I think

:04:46.:04:51.

that can win the next election on that platform. Critics in the Labour

:04:52.:04:55.

Party say that Owen Smith started his political career as an adviser

:04:56.:04:59.

to a Cabinet minister who was one of Tony Blair's greatest admirers. But

:05:00.:05:04.

his former boss points out that Smith was no fan of the most

:05:05.:05:08.

damaging legacy of the Blair in the, the Iraq war. On issues like the

:05:09.:05:14.

Iraq war, for example, he was with me in 2003 when I was the Northern

:05:15.:05:20.

Ireland Secretary in the Cabinet. He disagreed with the decision to go

:05:21.:05:26.

into the Iraq war and he stuck with that position. Owen Smith knows he

:05:27.:05:31.

has a challenge to show that he is a clean skin, untainted by Labour's

:05:32.:05:36.

period in office. Friends say that he was one of the first senior

:05:37.:05:43.

figures to clock the defining aspect of the party, the disconnect between

:05:44.:05:47.

the grassroot members and the elite. His loss in a loss solid -- in a

:05:48.:05:55.

solid Labour seat a decade ago taught him failure and never

:05:56.:05:58.

neglecting natural supporters. Friends say that his experience in

:05:59.:06:01.

the by-election has informed his approach to politics ever since. As

:06:02.:06:05.

soon as he arrived in Parliament in 2010 he said that Labour had to move

:06:06.:06:10.

on from the Blair and Brown era. Campaigning in the Scottish

:06:11.:06:12.

independence referendum, he predicted the collapse in support

:06:13.:06:19.

for Labour with the words" this feels like my constituency." He has

:06:20.:06:24.

an instinctive feel for Labour as a son of one of its great historians.

:06:25.:06:38.

His father, Dai Smith, the doyen of Street. It's only after Owen decided

:06:39.:06:46.

he would work with us that I got to know him -- of history. Owen Smith

:06:47.:06:50.

is working hard to show he is a man of the people. He ran into trouble

:06:51.:06:55.

today when he put his family to the fore, inviting comparisons with his

:06:56.:07:01.

rival, Angela Eagle, who is in a civil partnership. I'm glad you

:07:02.:07:04.

think I'm normal, I am normal, I grew up in a normal household, I

:07:05.:07:08.

have a wife and three children, my wife is a teacher. Owen Smith is a

:07:09.:07:12.

determined political fighter but he can sometimes appear a bit on

:07:13.:07:18.

worldly. During his time as a BBC radio producer he was once asked to

:07:19.:07:22.

get a police response to an unfolding crime story. Smith

:07:23.:07:26.

telephoned 999, prompting an official complaint by the Met. He

:07:27.:07:32.

made to be a bit more savvy if he's going to wrest control of the Labour

:07:33.:07:33.

Party. Just to give you one bit of data,

:07:34.:07:38.

for what it's worth. The bookies have Jeremy Corbyn

:07:39.:07:41.

as favourite to win the leadership race, but Owen Smith

:07:42.:07:43.

is not far behind. The odds imply a 54%

:07:44.:07:45.

chance of Corbyn winning, Well, I'm joined by three Labour MPs

:07:46.:07:47.

with three different views. Lisa Nandy is backing Owen Smith,

:07:48.:07:55.

Lilian Greenwood is supporting Angela Eagle and Barry Gardiner,

:07:56.:08:01.

who opposes the challenge Lilian, you published a speech that

:08:02.:08:13.

you gave to your party about why you weren't behind Jeremy Corbyn. What

:08:14.:08:18.

anecdote can you get from that that you would say is the most telling

:08:19.:08:21.

for what's wrong with the Corbyn leadership? For me, it's all about

:08:22.:08:29.

confidence or rather the lack of it. Calendar item is when rail fares go

:08:30.:08:34.

up at the start of the year and Labour had a brand-new policy, a

:08:35.:08:39.

very popular policy around renationalising the railways. We

:08:40.:08:43.

planned to go out and do the work on the 4th of January, we had activists

:08:44.:08:47.

ready to highlight our policy and ready to talk about the

:08:48.:08:50.

Conservatives' failure and that very day when we had started doing the

:08:51.:08:55.

media rounds, Jeremy Lawlor is re-shuffle and completely knocked it

:08:56.:09:00.

off the newspapers -- Jeremy launched his reachable. At a leader

:09:01.:09:05.

has to do reshuffle when he has two reshuffle. It wasn't a little press

:09:06.:09:12.

think it was a huge media item that was planned for a long time. If that

:09:13.:09:16.

was the only example, I wouldn't be saying that I'd lost confidence but

:09:17.:09:20.

unfortunately that was only one of many examples. Lisa, is that your

:09:21.:09:25.

experience too Western Mark during the leadership election when Jeremy

:09:26.:09:32.

fought on the ticket of changing politics, that was Barry welcomed

:09:33.:09:35.

and we should recognise it was an important moment for the party but

:09:36.:09:40.

the experienced Lilian described is the experience of many of my Shadow

:09:41.:09:45.

Cabinet colleagues, finding that the culture of having small groups

:09:46.:09:49.

around the leader making decisions outside of the collective leadership

:09:50.:09:52.

team has continued, we haven't been able to change that. What is worse

:09:53.:09:56.

is that when it became apparent that this was becoming a real crisis and

:09:57.:10:02.

a small group of us who are politically and personally

:10:03.:10:04.

sympathetic to Jeremy and the attempts he's made to bring people

:10:05.:10:08.

into his team went to see him it became very apparent that the

:10:09.:10:12.

collective leadership around him were not prepared to reach out and

:10:13.:10:17.

unite and compromise. In fact they were telling us they were going to

:10:18.:10:21.

do the opposite, even if the likely result is to smash the party. The

:10:22.:10:25.

truth is that none of us should support that. Barry Gardiner, why

:10:26.:10:32.

are you supporting that? I'm taking on the Conservatives because I

:10:33.:10:35.

believe it was incredible that at a time when we had seen the results of

:10:36.:10:40.

the referendum, when we had a Prime Minister being forced to resign as a

:10:41.:10:47.

result of it, our top team, as it were, went a while. I don't think

:10:48.:10:55.

that was right -- went AWOL. The weight in which it was done was to

:10:56.:10:59.

try and get Jeremy to resign rather than following the party process, to

:11:00.:11:03.

say we will have a contest and here is someone standing against them and

:11:04.:11:07.

they have 50 votes -- the way in which it was done. That would have

:11:08.:11:11.

been upfront, it would have been tough but it would have been

:11:12.:11:15.

according to the process. The rather nasty undermining process. They

:11:16.:11:21.

tried to force out without a vote. I think that was very wrong and it was

:11:22.:11:25.

disrespectful. You are shaking your head. That isn't how it was, that

:11:26.:11:31.

morning of the result when Jeremy called for the triggering of article

:11:32.:11:35.

50 without even talking to the Shadow Cabinet, without talking to

:11:36.:11:39.

the leader of the European Parliamentary Labour Party, was the

:11:40.:11:45.

last straw. I could imagine having to talk to my voters, there was a

:11:46.:11:50.

possibility of a very speedy general election, and they would ask me, do

:11:51.:11:55.

you think Jeremy is the right person to lead the country and I wouldn't

:11:56.:11:58.

be able to look them in the eye and say yes. Do you think he's the right

:11:59.:12:03.

person to lead the country? Let's say we have an election in October,

:12:04.:12:06.

you would say that he's the right man to be Prime Minister? As you

:12:07.:12:12.

know, I didn't support Jeremy nine months ago and I will be

:12:13.:12:22.

nominating... You would say that he should be Prime Minister? Any Labour

:12:23.:12:26.

leader is better than any Conservative Prime Minister because

:12:27.:12:29.

a Labour leader will deliver Labour policies and that is what is needed

:12:30.:12:34.

by the people who we serve in this country, the people who are

:12:35.:12:38.

marginalised, suffering from benefits cuts, the people who

:12:39.:12:43.

absolutely need jobs that are not just wasted jobs. One of the key

:12:44.:12:48.

test of a leader isn't whether he or she is prepared to stand up to their

:12:49.:12:51.

enemies but whether they are prepared to stand up to their

:12:52.:12:54.

friends and I think too much of what we've heard from people like Lilian

:12:55.:13:00.

has shown that actually we don't have a situation in the Labour Party

:13:01.:13:02.

where someone is prepared to do that. I also think, Barry, honestly,

:13:03.:13:08.

that this isn't just about members of Parliament losing confidence in

:13:09.:13:11.

Jeremy. We know that the membership is divided. Many people absolutely

:13:12.:13:16.

support Corbyn and many people oppose him. We cannot be a united

:13:17.:13:22.

political force if both the parliamentary party and large

:13:23.:13:25.

sections of the membership have lost confidence in the leader. Including

:13:26.:13:30.

newcomer from the sounds of this. All -- including you, from the

:13:31.:13:36.

sounds of this. We don't own the party as members of Parliament, the

:13:37.:13:41.

party operates according to democratic processes and what we

:13:42.:13:45.

need to do is to find a negotiated way forward where all sides of the

:13:46.:13:47.

party... Part two is both of you, backing

:13:48.:13:57.

different candidates for checking on Jeremy Corbyn. Give me the 12 word

:13:58.:14:03.

pitch. I am backing Angela Eagle because... I am not clear what the

:14:04.:14:09.

distinctive pitches are. What is it that makes you back Angela Eagle? We

:14:10.:14:14.

need somebody who can heal the party and the country and I think Angela

:14:15.:14:19.

has got the experience, we have seen her resting George Osborne, the

:14:20.:14:25.

experience of uniting the party, a brilliant chair of the national

:14:26.:14:28.

policy forum, she is not factional and is frankly courageous. I think

:14:29.:14:34.

it is about time the Labour Party was led by a woman. What is your

:14:35.:14:40.

short pitch? I would agree with something one said, he would be

:14:41.:14:46.

proud to serve under Angela Eagle if she emerged as a candidate and I

:14:47.:14:50.

would echo that, I would do so with real pride. But what is good? What I

:14:51.:15:00.

want in a Labour Party leader is someone with socialist values but a

:15:01.:15:03.

plan to achieve them, who understands deeply that the way we

:15:04.:15:08.

get the best answers for the country is to draw upon all the traditions

:15:09.:15:12.

of the party in the Shadow Cabinet and the membership and somebody who

:15:13.:15:16.

is relentlessly focused on the challenges we have now and coming

:15:17.:15:20.

down the line rather than rehearsing old arguments of the past. How

:15:21.:15:24.

important is it that a woman should be leader? Angela Eagle is making a

:15:25.:15:28.

lot of that. When you say, would you drop out, it is basically about the

:15:29.:15:37.

X chromosome? It is primarily about her qualities as a person, about

:15:38.:15:41.

what I have seen of her in the time I have known her and were both pride

:15:42.:15:48.

trading women but the Tories have got their second female Prime

:15:49.:15:55.

Minister, goodness knows... 2-0! And for the party that is founded on the

:15:56.:16:00.

basis of equality, I would agree, I would love a woman leader, but

:16:01.:16:03.

equally I would love to see a feminist in Number 10 Downing St, I

:16:04.:16:07.

don't believe we have that, Owen Smith is that person. Who is the

:16:08.:16:15.

more left-wing? I am not sure. I would not say you cannot tell the

:16:16.:16:18.

difference but what is happening in this debate is in many domestic

:16:19.:16:23.

policy areas, there is not a huge mound of difference between members

:16:24.:16:27.

of the Labour Party, I think myself, Harry, Lillian, we fundamentally

:16:28.:16:33.

agree about the NHS in public hands, the railways in public hands and

:16:34.:16:37.

that the basis of the economy should be about investment and not just

:16:38.:16:41.

cuts. All of us are united on that and that is why we need a candidate

:16:42.:16:45.

who can reach out across the party and bring us together. Barry

:16:46.:16:50.

Gardiner, who would you support? Jeremy Corbyn? I am not supporting

:16:51.:16:56.

or nominating anybody. You are members of the party. In the end, I

:16:57.:17:02.

will have a vote. But I don't know. I will listen to the arguments as

:17:03.:17:06.

they are made for the next couple of months and at the end of the day, I

:17:07.:17:11.

will vote for whoever I think represents the best chance of us

:17:12.:17:13.

getting a Labour government. There is an argument that I have heard

:17:14.:17:20.

that is, you are saving the best candidates for the next leadership

:17:21.:17:23.

election. These two are not the true a list. Lisa, you have been

:17:24.:17:30.

mentioned as that! Why are you not running? Because I think that Owen

:17:31.:17:36.

Smith is the best candidate and he asked me the same question and I

:17:37.:17:40.

said that I think you should do this, you are the person to unite

:17:41.:17:44.

this party and win the election and he would make an amazing Prime

:17:45.:17:47.

Minister. You would support him, of all the other Labour MPs, you will

:17:48.:17:52.

lose the next one and take one for the team... No, he is my top pick to

:17:53.:17:59.

leave this party. Can you say the same thing about Angela Eagle?

:18:00.:18:03.

Absolutely, there was no way I am writing off the next election, I

:18:04.:18:07.

want to win the next election, that is why I am making the argument is,

:18:08.:18:11.

the voters who put me in Westminster need a Labour government. And one

:18:12.:18:17.

last quick one, there is a deal that only one of them can stand to beat

:18:18.:18:21.

Jeremy Corbyn because it focuses the debate about one or the other rather

:18:22.:18:27.

than some confused message? You cannot have two people standing on a

:18:28.:18:31.

unity ticket and the truth is, both Angela and Owen Smith can reach out

:18:32.:18:37.

to heal some of these divisions and unite the party and that is why we

:18:38.:18:41.

need one of them going forward. Angela Will Pooley out? Everybody in

:18:42.:18:46.

the Labour Party would like there to be one single candidate but it has

:18:47.:18:51.

to be someone who can reach out to the Parliamentary party but unite

:18:52.:18:54.

all of the wings of the party amongst the membership and I know

:18:55.:18:57.

that Angela Eagle can do that but I have no doubt that Owen Smith could

:18:58.:19:02.

also do that. -- Owen Smith. Thank you all.

:19:03.:19:05.

Well, these are exceptional political times over here.

:19:06.:19:07.

But they are also exceptional over in the US - the Republican National

:19:08.:19:10.

Convention getting ready to crown Donald Trump this week

:19:11.:19:12.

as its Presidential candidate in the election in November.

:19:13.:19:15.

It's all happening over in Cleveland, Ohio.

:19:16.:19:16.

Good evening. Almost ready, we should say. You join us from

:19:17.:19:29.

Cleveland, Ohio, on a night of high drama - if we have learned one thing

:19:30.:19:34.

about politics and the last month, is that predicted that he is dead

:19:35.:19:38.

and tonight delegates have been trying to overturn the rules of the

:19:39.:19:42.

convention that will secure Donald Trump that nomination. They have

:19:43.:19:47.

been asking for a roll call to recognise every individual vote

:19:48.:19:51.

rather than the block vote of each state, it is cognitive stuff but

:19:52.:19:56.

essentially there is still an insurgency RFID. The Colorado

:19:57.:20:00.

delegation which understand was walking out of you in protest in

:20:01.:20:01.

response to this... In the opinion of the chair,

:20:02.:20:07.

the ayes have it. APPLAUSE

:20:08.:20:27.

If it sounds like the attempted coup has failed, we're hearing that the

:20:28.:20:31.

Colorado delegation is going to try again. This is an embarrassing

:20:32.:20:37.

moment for the self-styled law and order candidate, Donald Trump. And

:20:38.:20:41.

the convention is set against a backdrop of disunity, not just here

:20:42.:20:46.

but across the country as America reels from more racially motivated

:20:47.:20:51.

killings. Donald Trump has called America and divided crime scene. Is

:20:52.:20:54.

he the man to offer unity? We begin our report away

:20:55.:20:57.

from the pomp and proceedure, on the dirt tracks of Trumbull

:20:58.:21:00.

country. A Sunday afternoon spent bashing up

:21:01.:21:03.

cars is a strangely, They call this Demolition DARby -

:21:04.:21:08.

DURby, here - and it pulls in the mostly white crowds

:21:09.:21:15.

from rural Ohio. You just take a regular

:21:16.:21:19.

old American-made car and strip it down to the bare bones and you bring

:21:20.:21:21.

it out here and you smash it and smash it until

:21:22.:21:25.

there is nothing left. If it sounds like a metaphor

:21:26.:21:28.

for what Donald Trump is doing to the Republican Party right now,

:21:29.:21:31.

Democrats like Michael The convention begins today,

:21:32.:21:33.

just a couple of It will probably be more of a wreck

:21:34.:21:36.

than what you will see today! The Confederate flag,

:21:37.:21:44.

a symbol of southern They will tell you it is about

:21:45.:21:46.

pride, but it is a vestige of the country's civil war

:21:47.:21:52.

and a reminder of the deep divisions Kyle here sees Donald

:21:53.:21:55.

Trump as his Superman. And Superman, don't forget, fights

:21:56.:22:00.

a never-ending battle for truth, I don't know much about

:22:01.:22:03.

politics but I'll wing it! If you are an idiot

:22:04.:22:11.

and you are screwing up America, he will tell you and

:22:12.:22:16.

then will fix it. And, to be fair, America itself

:22:17.:22:19.

is feeling pretty ANNOUNCER: Please give a warm

:22:20.:22:21.

welcome to the chairman of the Republican National Committee -

:22:22.:22:24.

Reince Priebus of Wisconsin. As the convention opened,

:22:25.:22:30.

the committee chairman, Reince Priebus, welcomed

:22:31.:22:33.

delegates with a brief Our nation grieves when we see

:22:34.:22:35.

these awful killings. Will you join me in a moment

:22:36.:22:41.

of silence? Outside, they find less

:22:42.:22:44.

euphemistic ways of saying it. Donald Trump has looked

:22:45.:22:53.

at the racial tension that has erupted in Baton Rouge, in Dallas,

:22:54.:22:55.

in Ferguson and beyond, and called America

:22:56.:22:58.

"a divided crime scene" - wilfully oblivious, perhaps,

:22:59.:23:01.

of the effect his own language He points to Obama as the man

:23:02.:23:03.

to blame for weakness and calls himself the candidate

:23:04.:23:10.

for law and order. He is not helping to promote

:23:11.:23:16.

dialogue between people. He is just trying to

:23:17.:23:18.

promote more division. Do you think that racial tensions

:23:19.:23:20.

in the country have got worse? I tell you what,

:23:21.:23:23.

talking is over with. We want this and we want this,

:23:24.:23:27.

do you know what I mean? What does that mean,

:23:28.:23:31.

payback time is over? An eye for an eye and

:23:32.:23:32.

a tooth for a tooth. The latest poll here for NBC gives

:23:33.:23:35.

Donald Trump a stunning 0% support from black voters in Ohio,

:23:36.:23:47.

a crucial electoral battleground that has picked the Presidential

:23:48.:23:49.

winner the last 13 times. He is causing people who have

:23:50.:23:54.

all this hate towards minorities and these other kinds of people that

:23:55.:24:00.

aren't part of the majority, and everything he stands

:24:01.:24:03.

for is causing them to rise up. Crime rates have actually declined

:24:04.:24:08.

in recent years but Trump's invocation of law and order

:24:09.:24:10.

and his message to the majority echoes another Republican leader

:24:11.:24:14.

at a time of historic unrest. "The silent majority" was a phrase

:24:15.:24:20.

first used by Nixon in 1960s to speak to those who didn't protest

:24:21.:24:25.

the Vietnam War, but it quickly became a rallying call to white

:24:26.:24:29.

conservatives amidst the black It appealed to those who felt left

:24:30.:24:31.

behind, dispossessed by a perceived threat

:24:32.:24:38.

to their way of life. And crucially - then, as now -

:24:39.:24:41.

the language pitting minority Trump has adapted his slogan today

:24:42.:24:44.

to "Make America Safe Again". And there will be plenty more

:24:45.:24:57.

than happy to come For all those who worry

:24:58.:24:59.

about the mud-flinging, there are plenty more

:25:00.:25:03.

who appreciate his rhetoric At a time when few of those in power

:25:04.:25:05.

seem to offer tangible solutions, they see a man unafraid to call it

:25:06.:25:11.

as it is and think it is time that someone, somewhere came

:25:12.:25:15.

to clear up the mess. Emily in Ohio and she will be

:25:16.:25:27.

reporting from the convention throughout the week.

:25:28.:25:30.

If you wanted to be proud of any modern British company,

:25:31.:25:32.

you probably couldn't select a better one than ARM

:25:33.:25:35.

It doesn't make anything, but it is the brains behind

:25:36.:25:38.

the chips that power the smartphones we all buy; and in fact,

:25:39.:25:42.

its chips are in many other devices, too.

:25:43.:25:44.

It designs them and gets a few pence every time one is sold.

:25:45.:25:47.

And fortunately for ARM, billions are sold each year.

:25:48.:25:49.

The A in ARM, by the way, once stood for Acorn,

:25:50.:25:52.

for those who remember those early days of Acorn Computers.

:25:53.:25:57.

So should we worry that ARM may soon be part of a large Japanese group?

:25:58.:26:02.

Here's our business editor, Helen Thomas.

:26:03.:26:05.

You may not immediately recognise the name ARM Holdings,

:26:06.:26:09.

but the UK's biggest technology company has a hand in almost

:26:10.:26:12.

ARM's chip designs underpin the technology in about 95%

:26:13.:26:18.

of the smartphones sold globally last year.

:26:19.:26:23.

From its start in Cambridge with just 12 engineers in 1990,

:26:24.:26:26.

ARM has grown at speed and its sales have nearly doubled in the past five

:26:27.:26:30.

years and quadrupled over the past decade.

:26:31.:26:33.

But the company makes only a tiny sliver of its revenues

:26:34.:26:35.

Its biggest customers are overseas technology companies based

:26:36.:26:41.

in places like the US, China and Taiwan.

:26:42.:26:46.

That global dominance caught the eye of Japan's SoftBank, a telecoms

:26:47.:26:49.

They're betting ?24 billion that ARM can replicate its dominance

:26:50.:26:57.

in smartphones in what's called the Internet of Things -

:26:58.:27:01.

connecting up physical devices from buildings and to household

:27:02.:27:04.

appliances so they can talk to each other.

:27:05.:27:09.

So, should SoftBank's interest be welcomed or is this another

:27:10.:27:11.

example of a home-grown champion going overseas?

:27:12.:27:17.

Theresa May has struck a cautious note on foreign takeovers

:27:18.:27:19.

but today her new Chancellor of the Exchequer gave

:27:20.:27:21.

The fact that a Japanese company, just three weeks after

:27:22.:27:27.

the referendum decision, is prepared to make this kind

:27:28.:27:34.

of commitment to the UK and commit to grow that kind

:27:35.:27:37.

of business here in the UK, is a resounding endorsement

:27:38.:27:39.

of the resilience of the British economy.

:27:40.:27:41.

One of ARM's founders, at least, reckons it's too soon to say

:27:42.:27:44.

whether a takeover by SoftBank should be mourned or celebrated.

:27:45.:27:48.

To me, in this Internet of Things idea, there are things that ARM

:27:49.:27:54.

is doing and things that SoftBank is doing and if you can put those

:27:55.:27:57.

two ideas together and make them bigger and better and move

:27:58.:28:00.

If you do it appallingly, it's the opposite of a win,

:28:01.:28:04.

One source of comfort should be a series of SoftBank guarantees.

:28:05.:28:09.

The Japanese company has pledged to double ARM's UK workforce over

:28:10.:28:12.

And to keep its headquarters in Cambridge.

:28:13.:28:17.

ARM's business isn't linked to the UK economy.

:28:18.:28:20.

You could hardly find a more international business.

:28:21.:28:23.

But SoftBank says it wants to invest, not cut,

:28:24.:28:25.

and it wants to use this country as a base for innovation.

:28:26.:28:30.

But this is the first time these kinds of legally enforceable

:28:31.:28:34.

pledges have been used in a large UK takeover,

:28:35.:28:38.

so who, in five years' time, is going to aggressively enforce

:28:39.:28:41.

One concern is that UK companies may be snapped up by buyers taking

:28:42.:28:52.

But ARM's strong share price performance since the vote to leave

:28:53.:29:00.

the EU, plus a hefty price tag, means SoftBank isn't exactly

:29:01.:29:03.

ARM's founding CEO has another worry about what Brexit means

:29:04.:29:07.

We started in the UK, which happens to be in Europe

:29:08.:29:11.

and there is European funding available in

:29:12.:29:15.

a collaborative programme called the Open Microprocessors Systems

:29:16.:29:17.

Initiative that made a huge contribution to the early

:29:18.:29:19.

If we cast off from Europe, the UK isn't going to have that advantage.

:29:20.:29:25.

I hope the government can keep that onside in whatever

:29:26.:29:28.

With the takeover of ARM, the UK-listed tech sector

:29:29.:29:32.

is losing not just a limb, but its backbone.

:29:33.:29:34.

The UK's latest crop of start-ups could face new challenges getting

:29:35.:29:37.

to the head of the pack in global tech.

:29:38.:29:45.

Hermann Hauser was one of the founders of ARM and joins us

:29:46.:29:47.

Good evening. You said this is one of the saddest days of your life.

:29:48.:30:00.

Let me push you on wire. The company have said that they will preserve

:30:01.:30:03.

ARM in Cambridge, keep the management, doubling the UK

:30:04.:30:09.

headcount, so why are you so sad about it being bought by the

:30:10.:30:13.

Japanese? ARM has been the greatest achievement in my life and the

:30:14.:30:17.

reason I'm sad, not just for myself but technology in Britain, the next

:30:18.:30:23.

generation of the architecture of smartphones but more importantly the

:30:24.:30:28.

upcoming architecture of the Internet of things, which is going

:30:29.:30:31.

to be a wave that is much larger than the smartphone waves, will

:30:32.:30:36.

ultimately be designed in Japan and not the UK. What did you think of

:30:37.:30:40.

Philip Hammond's comments, you probably heard them, that this is a

:30:41.:30:48.

vote of confidence in Britain after Brexit? He's putting a brave face on

:30:49.:30:52.

the fact that we've lost the one remaining high technology company

:30:53.:30:55.

that has a global footprints. 15 billion ARMs sold last year, a high

:30:56.:31:02.

percentage of the phones and there is no other UK tech company that has

:31:03.:31:08.

that kind of global reach. More importantly, ARM can be the key

:31:09.:31:13.

building block of putting an industrial strategy together for the

:31:14.:31:17.

UK in the Internet of things. Tell me, if you were designing policy, if

:31:18.:31:22.

Philip Hammond or Greg Clark, the new industry Minister was sitting

:31:23.:31:26.

with you, what would you say they should do? I'm not thinking you want

:31:27.:31:30.

the government to decide who owns what. Generally people think there

:31:31.:31:38.

is room for a market in corporate control, so what would you like the

:31:39.:31:43.

government to do? I was delighted to hear Theresa May in her speech in

:31:44.:31:49.

front of number ten saying that industrial strategy is something

:31:50.:31:53.

that she will support. The Internet of things is just happening right

:31:54.:32:01.

now. The basic rules about how we build on top of the basic hardware,

:32:02.:32:06.

which is already all ARM -based, so we've almost all won that basis of

:32:07.:32:13.

the building blocks, what is needed now is the higher layers, the cyber

:32:14.:32:18.

Security and most importantly, who owns the data? What would you like

:32:19.:32:23.

the government to do? Would you like them to veto it and save sorry, even

:32:24.:32:27.

though the management say that you should be able to buy it,

:32:28.:32:33.

shareholders don't want to stop it, the government should say that it

:32:34.:32:37.

cannot be bought and sold by the Japanese? I think it's too late for

:32:38.:32:41.

that. Theresa May might introduce something like a golden share, for

:32:42.:32:45.

the really strategically important companies in the future but for ARM,

:32:46.:32:50.

this is too late. But you would like such a system? Let's face it, many

:32:51.:32:54.

other countries intervened more than we do. AstraZeneca, a good example,

:32:55.:33:00.

Obama basically blocked it, we didn't. Astra Zeneca is one of those

:33:01.:33:08.

key companies. They played the leadership role in Cambridge and ARM

:33:09.:33:11.

could do it the same in the tech sector. Do you think that we are

:33:12.:33:16.

selling the company to cheaply? If you had ?25 billion, would you say

:33:17.:33:22.

that the Japanese are getting it to cheaply, I will make a bigger bid

:33:23.:33:25.

for the company because it is worth more? Absolutely. I think ARM is at

:33:26.:33:32.

the centre of the next generation of the next wave of computing. I hear

:33:33.:33:37.

talk about the six waves of computing and every new brave is

:33:38.:33:40.

bigger than the previous one. We are in the middle of the smartphone

:33:41.:33:44.

waves but the next one, everything being connected and there is a

:33:45.:33:49.

simple interface for these things which will be connected through

:33:50.:33:53.

voice. This will be so much bigger than the smartphones and we have an

:33:54.:33:58.

opportunity to define the basic architecture of it. But if the

:33:59.:34:04.

Japanese are paying too little, why was the share price so much lower

:34:05.:34:09.

until they made the offer? Well, because sadly there are very few

:34:10.:34:15.

people who seek the opportunity in the Internet of things and have the

:34:16.:34:24.

money to pay the price, the premium, which is good, but not fantastic.

:34:25.:34:30.

40%. Taking a gamble and reaping the benefits, as they well. Thank you

:34:31.:34:31.

for joining us. What a strange Friday night-

:34:32.:34:36.

Saturday morning it was in Turkey. A coup that collapsed

:34:37.:34:39.

within 14 hours. It caused deaths in the hundreds

:34:40.:34:41.

and did almost the exact opposite of what its leaders had set out

:34:42.:34:44.

to achieve, in that it appears to have strengthened the position

:34:45.:34:47.

of President Erdogan and given him a pretext for a clampdown

:34:48.:34:51.

on opponents. Turkey, in the aftermath

:34:52.:34:55.

of the coup, is a turbulent place. Now it matters to us

:34:56.:34:58.

for four reasons: It's applying to join,

:34:59.:35:00.

although membership looks more The Syrian civil war and Isis, it's

:35:01.:35:05.

an important player in events there. And migrants, Turkey

:35:06.:35:13.

is relieving pressure on Greece. Then there is also the fact

:35:14.:35:15.

that the last thing anyone needs is for more instability

:35:16.:35:18.

in that neighbourhood. Our diplomatic editor Mark Urban

:35:19.:35:19.

managed to get to Ankara on Sunday, Plenty of lives have been smashed

:35:20.:35:22.

here in the last few days. At Kocatepe Mosque,

:35:23.:35:36.

relatives of eight policemen killed on Friday

:35:37.:35:39.

attended their funeral. At this moment of national crisis,

:35:40.:35:41.

those already bereaved are voiced the hope that it

:35:42.:35:49.

will not claim more lives. TRANSLATION: My child

:35:50.:35:52.

was 19 years old. Phalanxes of police

:35:53.:35:55.

were on hand and hundreds of supporters of President

:35:56.:36:06.

Erdogan's ruling party. But the public at large

:36:07.:36:11.

have been held back. The trouble may not be over

:36:12.:36:15.

and in waves of arrests, Turkey's leader has

:36:16.:36:18.

called into question the loytalty of big parts

:36:19.:36:20.

of In the aftermath of the coup,

:36:21.:36:21.

President Erdogan and his supporters, in the police

:36:22.:36:29.

and elsewhere, want revenge. They are cracking down

:36:30.:36:31.

on what they call Already nearly 6,000

:36:32.:36:33.

people have been arrested. The response has

:36:34.:36:40.

been swift and hard. These chiefs from military

:36:41.:36:43.

intelligence, accused of being plotters, bandaged and uttered

:36:44.:36:47.

and paraded this morning. so-called Gulenist network,

:36:48.:36:51.

sympathisers of exiled Islamist But the scale of arrests prompts

:36:52.:36:56.

opposition scepticism. That's why it's a big

:36:57.:37:05.

question over this executive order, expelling all

:37:06.:37:14.

of them, from the army, from the police, from

:37:15.:37:18.

So this is an extraordinary situation.

:37:19.:37:21.

At Ankara's police HQ, evidence of how

:37:22.:37:24.

The coup plotters attacked it first with a

:37:25.:37:30.

helicopter, then bombed it from a jet fighter before

:37:31.:37:33.

While all the time, police inside held out.

:37:34.:37:38.

What triggered the coup, and how could

:37:39.:37:42.

the thousands of judges, army people and police now arrested

:37:43.:37:47.

or dismissed already be found guilty by association?

:37:48.:37:52.

The list for a crackdown had already been prepared,

:37:53.:37:56.

a senior government MP has confirmed to Newsnight.

:37:57.:38:06.

TRANSLATION: We were getting ready for them.

:38:07.:38:09.

We have been gathering evidence against them for

:38:10.:38:11.

All the political parties want to fight this

:38:12.:38:17.

Parliament was also hammered by the plotters.

:38:18.:38:28.

On Friday, supporters of

:38:29.:38:32.

all parties united in opposition to the coup, but now the governing

:38:33.:38:36.

party, with its explanation of the conspiracies it's

:38:37.:38:39.

thwarted, seeks to reap all the political rewards.

:38:40.:38:42.

Having struck so many institutions of the

:38:43.:38:46.

Turkish state and of course the parliament itself,

:38:47.:38:49.

it's rather hard to see the plotters as acting in any

:38:50.:38:52.

The opposition united against them and many Turks seem ready to accept

:38:53.:38:59.

the government line that these plotters were members of a secret

:39:00.:39:03.

sect, a parallel structure, the Gulenist movement.

:39:04.:39:09.

But how credible is it that thousands of soldiers and

:39:10.:39:13.

police, as well as a big slice of the high command, would support a

:39:14.:39:17.

The opposition accuse Erdogan of finding

:39:18.:39:22.

a pretext for a wholesale clear out of anyone suspected of disloyalty.

:39:23.:39:28.

He is the one polarising society, dividing the society.

:39:29.:39:34.

Using the half of the population in his own

:39:35.:39:40.

policies' favour and the rest are feeling excluded, second-class

:39:41.:39:44.

At the funeral of Ankara police killed on Friday, Erdogan

:39:45.:39:57.

supporters in the crowd chanted for the plotters to get the death

:39:58.:39:59.

Though a senior member of his party has told us it won't happen and that

:40:00.:40:04.

evidence of the Gulen movement's role in the coup will be

:40:05.:40:07.

TRANSLATION: We are patient but our patience has run out.

:40:08.:40:21.

Everything we do, we will do legally.

:40:22.:40:26.

In the aftermath of what many Turks are calling the Event,

:40:27.:40:28.

the country's rulers seek to channel their supporters' righteous anger.

:40:29.:40:31.

But while the wider Turkish public or foreigners might question the

:40:32.:40:36.

government's rubric that the purge is now

:40:37.:40:38.

coup, Erdogan's people are determined to seize their moment.

:40:39.:40:49.

Did we tell you about what's happening on Saturday, the 23rd of

:40:50.:40:53.

July? The British people have spoken

:40:54.:40:55.

and the answer is, we're out. I love this country and I feel

:40:56.:40:58.

honoured to have served it. A political landscape

:40:59.:41:06.

changed for ever. I know that virtually none

:41:07.:41:09.

of you have ever done The Scottish parliament

:41:10.:41:12.

should have the right Exactly one month after

:41:13.:41:23.

the UK's momentous vote... Brexit means Brexit,

:41:24.:41:29.

and we're going to make a success ..Newsnight hosts a special day

:41:30.:41:31.

of discussion and debate on Brexit A divided nation

:41:32.:41:37.

and its relationship Tickets for this event, to be held

:41:38.:41:42.

at the Royal Geographical Society in London, are available

:41:43.:41:48.

on the Newsnight website. And we'll be live on BBC

:41:49.:41:52.

Two, 6pm on Saturday. What better can you do on a summer

:41:53.:42:00.

weekend? You may have been mystified this

:42:01.:42:03.

weekend by all the people wondering the streets doing the

:42:04.:42:08.

Pokemon phone thing. So, courtesy of the Useless Duck

:42:09.:42:10.

Company, here's our ongoing series, Tonight,

:42:11.:42:12.

"Part 1 - How to Throw a Pokeball". Monday was the hottest day of the

:42:13.:42:37.

year so far with 30 degrees in London. We are going to break that

:42:38.:42:40.

by several degrees

:42:41.:42:41.

In-depth investigation and analysis of the stories behind the day's headlines with Evan Davis.

It's Smith v Eagle for the right to face Jeremy Corbyn for Labour leadership, Trump v Clinton, Turkey mops up the coup plotters, and ARM is bought cheaply.


Download Subtitles

SRT

ASS