15/02/2017

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:00:00. > :00:10.Is reality catching up with the reality TV President?

:00:11. > :00:15.I think it's very, very unfair what's happened to General Flynn,

:00:16. > :00:18.the way he was treated and the documents and papers

:00:19. > :00:21.that were illegally - I stress that, illegally -

:00:22. > :00:26.We'll ask if the White House can defeat the combined

:00:27. > :00:30.forces of the Democrats, the FBI and the "fake media".

:00:31. > :00:37.Did you think this was a stock exchange?

:00:38. > :00:39.No - this secret data centre in New Jersey

:00:40. > :00:44.And the closer traders can get to the mainframe,

:00:45. > :00:49.It's not only being in the building as close

:00:50. > :00:54.It's where you are in the building, relative to where the exchange is.

:00:55. > :00:57.A foot of cable equates to a nanosecond, a billionth of a second.

:00:58. > :00:59.People are getting into pissing matches over

:01:00. > :01:07.We look at how the playing field could be levelled.

:01:08. > :01:33.In most known universes, it could be either "conspiracy

:01:34. > :01:35.theories and fake news" or valid information allegedly

:01:36. > :01:41.leaked to journalists by intelligence services.

:01:42. > :01:46.In Donald Trump's universe it can, apparently, be both.

:01:47. > :01:48.Not yet a month in office and already one National

:01:49. > :01:52.Security Adviser down, the American President today took

:01:53. > :01:57.to blame pretty much everybody except Russians and his campaign

:01:58. > :02:02.team for the reported Russian infiltration of his campaign team.

:02:03. > :02:05.More on that momentarily, but first a rather more conventional

:02:06. > :02:09.sortie for a newly-minted President, the Middle East peace process.

:02:10. > :02:12.Earlier tonight, at a press conference with the visiting Israeli

:02:13. > :02:19.Prime Minister Benjamin Netanyahu, President Trump shared his vision.

:02:20. > :02:22.So, I'm looking at two-state and one-state, and I like the one

:02:23. > :02:28.I'm very happy with the one that both parties like.

:02:29. > :02:39.The BBC's Middle East editor Jeremy Bowen is here.

:02:40. > :02:47.He is certainly covering his bases. Did that mark a profound shift in US

:02:48. > :02:51.policy? It is hard to know, with President Trump. He is rewriting the

:02:52. > :02:58.rules or making them up as he goes along. If he says it this week, he

:02:59. > :03:01.might say something else next week. Certainly, the idea that a US

:03:02. > :03:09.President is backing away from the idea of the two-state solution is a

:03:10. > :03:15.change in a fundamental of American foreign policy for... Well, the last

:03:16. > :03:18.four presidents, since 1990, something like that, the two-state

:03:19. > :03:21.solution has been what they have been pushing for. Do you think

:03:22. > :03:28.Netanyahu would have been surprised by what came out of Donald Trump's

:03:29. > :03:32.mouth at the podium? Or would he have had early warning? All of these

:03:33. > :03:35.are contingent on more conventional politics, these questions. In these

:03:36. > :03:40.things, there's clearly a lot of preparation that goes into them. I

:03:41. > :03:43.think Prime Minister Netanyahu and the Israeli right have been hoping

:03:44. > :03:49.for rather more from President Trump. Judging by the things he said

:03:50. > :03:52.as a candidate, they were more or less going to get a blank cheque

:03:53. > :03:54.when it came to the Palestinians, to do what they wanted, build

:03:55. > :03:59.settlements where they wanted, in the numbers that they wanted. The US

:04:00. > :04:03.Embassy was going to move from Tel Aviv to Jerusalem, therefore

:04:04. > :04:06.recognising Jerusalem as the Israeli capital, something the rest of the

:04:07. > :04:11.world has not done, most of the rest of the world. But as President

:04:12. > :04:15.Trump, he has reined back on this. In the first couple of days after

:04:16. > :04:25.the inauguration, Mr Netanyahu approved 6500 new settlements for

:04:26. > :04:30.Jews, new homes for Jews, in the settlement, I should say, and in a

:04:31. > :04:33.news conference President Trump is saying, hang on, I want you to hold

:04:34. > :04:40.hard on settlements, there has to be a deal with concessions. Netanyahu

:04:41. > :04:41.was a bit taken aback, I thought, and said, well, concessions from

:04:42. > :04:43.both sides. The reported constant contact

:04:44. > :04:46.between key Trump aides and Russian officials during the election

:04:47. > :04:48.campaign is a burgeoning scandal with the potential to shake most

:04:49. > :04:51.politicians to their core. But Donald Trump is not

:04:52. > :04:55.most politicians. John Sweeney has been wondering

:04:56. > :05:09.whether the Teflon candidate might I think it is very, very unfair what

:05:10. > :05:15.has happened to General Flynn, the way he was treated and the documents

:05:16. > :05:20.and papers that were illegally - I stress that, illegally leaked. Very,

:05:21. > :05:26.very unfair. President Trump today mourned the loss of his National

:05:27. > :05:30.Security Adviser of 24 days. The man who, according to reports, he sacked

:05:31. > :05:32.in a flash. When he ran for office, they called him the Teflon Don.

:05:33. > :05:37.Don't worry about it, Little Marco, I will.

:05:38. > :05:53.I'm running against the crooked media.

:05:54. > :06:01.That is what I'm running against. He won and carried on regardless. Time

:06:02. > :06:05.to chuck dirt at the CIA. The intelligence agencies allowed any

:06:06. > :06:11.information that turned out to be so false and fake out, that they did

:06:12. > :06:16.that, I think it is a disgrace. I say that, and I say that, and that

:06:17. > :06:23.is something that Nazi Germany would have done. But the Teflon Don is no

:06:24. > :06:29.more. The grime is sticking to President Trump as never before. At

:06:30. > :06:33.the heart of the Flynn fiasco are fears that team Trump had a Russian

:06:34. > :06:37.connection with Kremlin spies. This morning, the New York Times reported

:06:38. > :06:47.that US intelligence sources told it that three of his closest election

:06:48. > :06:52.aides have repeated contact with Russian intelligence officials. All

:06:53. > :07:02.three deny it. Trump took to Twitter to fight back.

:07:03. > :07:08.The best evidence for the Russia connection might not be all

:07:09. > :07:11.nonsense, it was from the man himself in the campaign. Russia, if

:07:12. > :07:19.you are listening, I hope you are able to find the 30,000 e-mails that

:07:20. > :07:27.are missing. I think you will probably be rewarded mightily by our

:07:28. > :07:31.press. Today, the former reality TV star was clear who was to blame.

:07:32. > :07:38.America's greatest newspapers and its own spies. So, what is going on?

:07:39. > :07:41.This building behind me is the case for the defence. It is the new

:07:42. > :07:48.American Embassy in London. As you can see, like the Trump presidency,

:07:49. > :07:52.it is a work in progress. Trump has teething problems. But give him time

:07:53. > :07:59.and he will work perfectly well. The counter argument goes like this. OK,

:08:00. > :08:04.maybe the building will work, but, for the moment, it has a bloody

:08:05. > :08:09.great hole in it and it is leaking! Trump this morning praised American

:08:10. > :08:14.Security journalist Eli Lake. So, who better to ask than the

:08:15. > :08:17.President's current favourite reporter? We trust the government to

:08:18. > :08:23.eavesdrop in order to stop terrorism, stop crying, stop foreign

:08:24. > :08:27.infiltration and so forth. If you want to say Mike Flynn is indeed a

:08:28. > :08:33.spy, a patsy or agent for the Russians, which nobody is saying,

:08:34. > :08:38.and I would find hard to believe, having covered the man, that is

:08:39. > :08:43.interesting. But do that in a court. Let him defend himself. Don't do it

:08:44. > :08:46.anonymously like this, when you have the allegation hanging over him.

:08:47. > :08:50.There was a time when this sort of thing was done and it was called

:08:51. > :08:54.McCarthyism. Perhaps the US the state is at fault and the media are

:08:55. > :09:01.not giving President Trump a break either. I do think there is not the

:09:02. > :09:06.same rigour going on in newsrooms. The number of rubbish stories we are

:09:07. > :09:12.seeing, with reporters rushing to publish, with thinly sourced or

:09:13. > :09:15.anonymously sourced stories, it is not doing any favours to the

:09:16. > :09:19.impression that they are out to get Donald Trump. But where are the

:09:20. > :09:25.media getting the leaks from in the first place? What we are seeing is

:09:26. > :09:29.we have an establishment faction, like Sean Spicer, and then the

:09:30. > :09:32.populist faction that sees people in Congress, the leadership in

:09:33. > :09:35.Congress, Paul Ryan, Mitch McConnell, as sell-outs who have

:09:36. > :09:39.failed their wing of the Republican party. The number of leaks we are

:09:40. > :09:44.seeing is people jockeying for power. It could be an explanation

:09:45. > :09:47.for what happened to Flynn. With his back against the wall, Trump will

:09:48. > :09:52.need to rely upon Republicans in Congress to push through his agenda.

:09:53. > :09:55.Tonight, his pick for labour secretary dropped out because of a

:09:56. > :10:01.lack of that support from his own party. In politics, as in life, in

:10:02. > :10:06.London, Washington, DC, wherever, the more Knowl View throw around,

:10:07. > :10:09.sooner or later some of it will stick to you. -- the more mud you

:10:10. > :10:14.throw around. Let's talk now to Democrat

:10:15. > :10:16.Congresswoman Jackie Speier, who sits on the Intelligence

:10:17. > :10:29.Committee in the House It is hard to know where to start.

:10:30. > :10:34.Let's begin with that word illegal, employed by the President to

:10:35. > :10:39.describe the passage of information from who knows where into the hands

:10:40. > :10:44.of American newspapers, with regards to General Flynn. Do you recognise

:10:45. > :10:50.his description of criminality, illegality? Let's go further back,

:10:51. > :10:53.to when Sally Yates, then the Acting Attorney General, communicated with

:10:54. > :11:00.the President through his special counsel that there was concern is

:11:01. > :11:04.that Michael Flynn was compromised because there were intercepted

:11:05. > :11:12.communications from the Russian ambassador and inadvertently

:11:13. > :11:19.received information from Michael Flynn. It is very serious business.

:11:20. > :11:26.The role of Russia in impacting and meddling in the election in the

:11:27. > :11:30.United States is real. The President, for the longest time,

:11:31. > :11:34.denied that Russia was responsible. Now he seems to want to dismiss it.

:11:35. > :11:44.What we are mostly concerned with is what is the relationship, why is

:11:45. > :11:50.there such a bromance between our President and Vladimir Putin? In the

:11:51. > :11:53.last few days, Russia has tested missiles against the treaty dating

:11:54. > :12:00.back to Ronald Reagan. There was a destroyer that was buzzed by Russian

:12:01. > :12:06.aeroplanes and also a destroyer on our coast, a spy ship, that was

:12:07. > :12:12.within 30 miles of Connecticut and Delaware. Forgive me, none of which

:12:13. > :12:15.addresses the question of off there is a danger, think, that people see

:12:16. > :12:20.him as being right about everything or wrong about everything. It's

:12:21. > :12:23.impossible he is 100% right or 100% wrong. Surely, regardless of where

:12:24. > :12:27.the information has come from, for it to make its way from the

:12:28. > :12:34.intelligence services to the media is, at best, a dereliction of duty,

:12:35. > :12:38.and, worst, a form of criminality bordering on treason? Well, I guess

:12:39. > :12:45.I would disagree with you. The media has to be independent. The extent to

:12:46. > :12:52.which the President is now is trying to exclude mainstream media and only

:12:53. > :12:57.provide for opportunities for bloggers that are supportive of him

:12:58. > :13:03.or local TV stations that are not part of the mainstream media, would

:13:04. > :13:06.suggest to me that he is trying to silence the media. I go back to the

:13:07. > :13:13.Sally Yates situation, because it was detected by the CIA and that

:13:14. > :13:17.information was shared with the President about their concern that

:13:18. > :13:21.Michael Flynn had been compromised because of the conversations he had

:13:22. > :13:24.had with the Russian ambassador. Then more information has come out

:13:25. > :13:28.that there were other people. I haven't seen any of those

:13:29. > :13:31.transcripts. Whether I will be able to see them as a member of the

:13:32. > :13:38.intelligence committee is something that we are looking into right now.

:13:39. > :13:42.But I would say that, if there was collusion by the Trump campaign and

:13:43. > :13:48.his associates, with the Russian government, that is treason. That is

:13:49. > :13:53.a crime. Then we move onto a different. The transcripts

:13:54. > :13:58.notwithstanding, what else is the role of the intelligence committee

:13:59. > :14:02.now? I don't know how long you have been on it, but have you ever

:14:03. > :14:07.encountered a phenomenon like this before? No, I have only been on the

:14:08. > :14:15.committee for two years, but I would suggest to you that this is as big

:14:16. > :14:18.as Watergate, if not bigger. I think we have an ultimate response ability

:14:19. > :14:25.to the American people to make sure that we have reviewed all of the

:14:26. > :14:30.information the CIA has provided, that we have double checked it, that

:14:31. > :14:33.we have looked into whether or not, beyond what we know today, there

:14:34. > :14:38.were other relationships that existed between the Trump campaign

:14:39. > :14:45.and Russian officials. We also need to have the tax return of President

:14:46. > :14:47.Trump released. It has always been historically the way that

:14:48. > :14:51.presidential candidates have addressed this issue. He has first

:14:52. > :14:55.said it was because of an audit, now he says he is not going to release

:14:56. > :15:03.it at all. We have to find out if there are links between President

:15:04. > :15:06.Trump and Russian oligarchs, if they have received financing, if there

:15:07. > :15:09.are relationships that exist. That then puts in question any decision

:15:10. > :15:12.that is made, relative to Russia, by the President. Many thanks indeed

:15:13. > :15:16.for your time. One perspective on the unfolding

:15:17. > :15:19.drama that is often hard for Western watchers to appreciate is that

:15:20. > :15:22.of the Putin camp itself. Its members could never be accused

:15:23. > :15:25.of beating a path to the doors Avigdor Eskin isn't exactly in it

:15:26. > :15:32.but the Russian-Israeli businessman and political activist is a staunch

:15:33. > :15:36.supporter of the Russian President and frequently lectures

:15:37. > :15:42.in the country on political science. He's made a reputation by holding

:15:43. > :15:48.some controversial views. I spoke to him earlier

:15:49. > :15:50.at his home in Jerusalem, how the Russian media had reacted

:15:51. > :15:54.to General Flynn's resignation. People could not understand this

:15:55. > :16:00.whole scandal around General Flynn, because many of us remember him

:16:01. > :16:06.coming to Moscow one year ago. My colleagues, everybody noticed

:16:07. > :16:18.that he was kind of redneck American with the type of ideology close

:16:19. > :16:21.to late Senator Jesse Helms who promoted the American interest

:16:22. > :16:26.line, America first line, and when someone suspected him

:16:27. > :16:29.of being somehow leaning towards Moscow, it just sounded

:16:30. > :16:34.as a joke, as a kind of McCarthyism, which was probably too much

:16:35. > :16:37.for Senator McCarthy. Flynn is an author of a book

:16:38. > :16:44.where he describes the fight against world terrorism,

:16:45. > :16:50.and criticising Russia for many of the things that Russia

:16:51. > :16:54.presents in this circle of interest and after it, he somehow presents

:16:55. > :16:57.Washington as being pro-Russia. I mean, it's unbelievable,

:16:58. > :17:01.it's something unheard-of and nobody Is it really mysterious

:17:02. > :17:07.to Russians to understand how a National Security Advisor

:17:08. > :17:15.being economical with the truth to a vice president becomes

:17:16. > :17:23.a dismissible offence? There are some misunderstandings

:17:24. > :17:25.between different people, What we are saying is

:17:26. > :17:28.that Flynn was nothing If he does not force his way now,

:17:29. > :17:33.to the greater satisfaction of his friends and allies around

:17:34. > :17:36.the world, and in the United States, He needs to stick to one

:17:37. > :17:39.promise on every issue, OK, I will park that question of how

:17:40. > :17:47.it can be uncontroversial to have a National Security Advisor

:17:48. > :17:49.being misleading I will ask you instead why

:17:50. > :17:54.Donald Trump was the preferred candidate of the Kremlin

:17:55. > :17:56.during the American election? We know nothing about it,

:17:57. > :17:59.Trump was critical of certain However, being a realistic leader

:18:00. > :18:08.of a first world power sees Russia as a potential ally in fighting

:18:09. > :18:13.terrorism, which is a mutual threat. He wants to find some neutral ground

:18:14. > :18:16.for cooperation with Russia, with all the respect to Moscow,

:18:17. > :18:18.well, Trump is going to disagree It's absolutely clear,

:18:19. > :18:25.it's absolutely clear. We've are talking about the

:18:26. > :18:35.realistic approach to this world. Many thanks, Avigdor

:18:36. > :18:42.Eskin, good night. Even in this era of unprecedented

:18:43. > :18:44.political upheaval, some of the old conventions

:18:45. > :18:47.still hold true. And it's fair to say that busy

:18:48. > :18:55.Prime Ministers don't often turn up on the mid-term by-election stump -

:18:56. > :18:58.unless they think they've got a very real chance of winning

:18:59. > :19:01.the seat from another party. Factor in the pub quiz classic

:19:02. > :19:03.about governing parties not having made a by-election gain since 1960,

:19:04. > :19:05.defections excluded, and you'll understand some

:19:06. > :19:07.of the excitement surrounding Theresa May's visit

:19:08. > :19:13.to Copeland today. Newsnight's Political Editor

:19:14. > :19:30.Nick Watt was there. For more than 80 years, the Tories

:19:31. > :19:36.have really had much electoral success beyond the dreamy landscape

:19:37. > :19:41.of swallows and Amazons countries in the Lake District but now for the

:19:42. > :19:44.first time since 1981, the Conservatives think that they can

:19:45. > :19:51.win over the deprived west coast of Cumbria. Today, Theresa May donned a

:19:52. > :19:58.suitable outfit for this mainly role constituency, as she paid a brief

:19:59. > :20:03.visit to support her candidate in Copeland, it was not an easy ride as

:20:04. > :20:06.both Labour and Tories have a strength and weakness in the

:20:07. > :20:12.by-election -- rural. The Conservatives are on the defensive

:20:13. > :20:20.why labour. Trying to remove electoral surgery

:20:21. > :20:23.and midwifery services to Carlisle, 40 miles away.

:20:24. > :20:27.Labour was today accused of scaremongering, with a warning that

:20:28. > :20:32.babies could die. The Tory candidate was today criticised for failing to

:20:33. > :20:35.mention the NHS in her election leaflets but Trudy Harrison is

:20:36. > :20:39.advocating a rare case for a candidate from a governing party.

:20:40. > :20:46.She would oppose the reforms outlined in the NHS success regime

:20:47. > :20:50.consultation. All of the candidates are opposing the success regime. I

:20:51. > :20:54.think it is a dreadful shame that Labour are using it to score party

:20:55. > :20:58.politics because it is far too important for that. What is

:20:59. > :21:02.important is what we do about it. And whilst others have been

:21:03. > :21:06.designing leaflets, I've been speaking to the health minister.

:21:07. > :21:09.Feelings are running so high on the NHS that one pensioner who voted

:21:10. > :21:16.Conservative at the general election is now switching to Labour. In the

:21:17. > :21:22.Conservative leaflet, the NHS isn't mentioned once. She wants to close

:21:23. > :21:25.the hospital. Maggie Thatcher was the worst Conservative Prime

:21:26. > :21:31.Minister. David Cameron was not any better. This woman is in the same

:21:32. > :21:36.league. Ian Peter is supporting Labour, even though he has strong

:21:37. > :21:39.doubts about Jeremy Corbyn. I do not think public opinion will keep him

:21:40. > :21:44.there much longer. You say that you feel confident he will be on his way

:21:45. > :21:48.out? I don't think he will last much longer. A nurse working in the West

:21:49. > :21:52.Cumberland Hospital, who normally votes Labour, agrees with the party

:21:53. > :21:56.'s campaign on the NHS but she may switch her vote. Labour are

:21:57. > :22:04.campaigning heavily on the NHS, why are you pausing about them? I think

:22:05. > :22:09.possibly due to the leadership. Tell me about it? With Jeremy Corbyn? I

:22:10. > :22:12.think that he is a weak figure, really. The doubts about Jeremy

:22:13. > :22:17.Corbyn highlight Labour's principal weakness in this by-election. His

:22:18. > :22:22.equivocal support for nuclear power in the home of the Sellafield

:22:23. > :22:29.nuclear reprocessing plant. It employs a vast majority of people

:22:30. > :22:35.around here. It's under nuclear, it is going to be very difficult for

:22:36. > :22:39.Labour. But I think it is going to be very close, actually. Labour's

:22:40. > :22:43.campaign literature barely mentions Jeremy Corbyn, who appeared last

:22:44. > :22:49.month to offer less than wholehearted support for plans to

:22:50. > :22:53.build a new, nuclear power station in the community. Eventually he said

:22:54. > :22:58.he supported the more side project. If you win, you are going to win

:22:59. > :23:05.despite Jeremy Corbyn, and you? Jeremy has been, and I've had a

:23:06. > :23:09.pretty good talks with Jeremy... Democracy is that we have a local

:23:10. > :23:14.candidate who is fighting for their local area. That is what we need

:23:15. > :23:17.here, someone who really understands the issues in this constituency and

:23:18. > :23:23.will be a strong voice fighting for this constituency. We need someone

:23:24. > :23:27.who understands the nuclear industry and understands the investment that

:23:28. > :23:32.we need for our infrastructure and most importantly, understands that

:23:33. > :23:36.we need decent health in this constituency to support us when we

:23:37. > :23:40.most need it. If Labour are struggling with the defining issue

:23:41. > :23:45.in Copeland, you could believe that they have a clear advantage on the

:23:46. > :23:54.defining issue in British politics -- Ukip. It was strongly voted here

:23:55. > :24:00.to leave the EU, 62%. The Tories are obviously saying that they want to

:24:01. > :24:04.leave but the Prime Minister was a remain, and half the Cabinet were as

:24:05. > :24:11.well. There are doubts that they will see Brexit through, so they are

:24:12. > :24:16.thinking of voting Ukip. Despite that, the Liberal Democrats believe

:24:17. > :24:20.they can appeal across the board by campaigning against hard Brexit. The

:24:21. > :24:25.Greens have a clear, and some would say brave, message in the home of

:24:26. > :24:31.Sellafield. Noted nuclear power. Tucked away in a removed

:24:32. > :24:43.-- removed corner, voters in Copeland often feel forgotten, but

:24:44. > :24:46.next week they have the power. A Labour win could stabilise Jeremy

:24:47. > :24:49.Corbyn's leadership at a loss would embolden his critics once again. --

:24:50. > :24:54.but a loss. Here is a list of all

:24:55. > :24:56.the candidates standing Back in 2014 the journalist

:24:57. > :25:08.Michael Lewis caused a storm on Wall Street

:25:09. > :25:10.and beyond with with He concluded the markets were rigged

:25:11. > :25:14.against ordinary investors. The book lifted the lid on the world

:25:15. > :25:20.of High Speed financial traders, who use ever more sophisticated

:25:21. > :25:22.technology to generate huge profits. They manage to take a tiny slice

:25:23. > :25:25.of millions of transactions , Two of the stars of the book,

:25:26. > :25:31.who helped Lewis expose how these traders operate,

:25:32. > :25:34.have now started a new Stock Exchange to protect investors

:25:35. > :25:36.from being picked off Our Technology Editor David Grossman

:25:37. > :25:42.has been to see how they hope to change the odds

:25:43. > :25:45.so that the fastest operator Who is going to make money today

:25:46. > :25:56.in New York's financial district? If it's anything like yesterday,

:25:57. > :25:58.and the day before, it will probably be the people with the fastest

:25:59. > :26:01.network, the best connections, I've come to New York to meet some

:26:02. > :26:09.people who think they can rewire the financial system to make it work

:26:10. > :26:13.for ordinary investors and companies that need to raise capital

:26:14. > :26:17.for their businesses to grow. They started their

:26:18. > :26:20.own stock exchange. It's called the Investors

:26:21. > :26:29.Exchange, or IEX. Brad Katsuyama was a trader

:26:30. > :26:32.for the Royal Bank of Canada. He set up the exchange

:26:33. > :26:36.because he became disillusioned with the way stock exchanges

:26:37. > :26:38.allowed other traders What stock exchanges have become

:26:39. > :26:43.are vendors of data and technology, where they now make more money

:26:44. > :26:45.by selling high-speed data and technology,

:26:46. > :26:47.than they actually do from matching The complexity of the market

:26:48. > :26:59.is almost overwhelming. 13 stock exchanges in the US alone,

:27:00. > :27:01.and dozens of other venues, At its heart, each

:27:02. > :27:07.venue is a computer. How quickly traders can connect

:27:08. > :27:10.to each of these computers can Selling these ultra fast

:27:11. > :27:14.connections is a very lucrative They're selling tiers

:27:15. > :27:22.and levels of access. The more money you'll pay them,

:27:23. > :27:24.the better and quicker The tourists come to Wall Street

:27:25. > :27:29.to see the American The institutions they've come to see

:27:30. > :27:34.are, in reality, long gone. To find them, we have to get out

:27:35. > :27:46.of Manhattan and head east. The fact is, wherever

:27:47. > :27:48.the stock exchanges say that they're based -

:27:49. > :27:50.New York, Philadelphia, Chicago - they're all actually housed in four

:27:51. > :27:56.highly secure data centres, Forget the idea of traders

:27:57. > :28:04.waving their arms around, this is what a real stock exchange

:28:05. > :28:11.floor looks like. This is the Equinix NY5 data centre

:28:12. > :28:16.in Secaucus, New Jersey. It houses four of America's 13

:28:17. > :28:21.regulated stock exchanges. To be allowed to have a tour of this

:28:22. > :28:25.place and film I had to agree not The organisations that pay

:28:26. > :28:30.to be in here are buying absolute discretion

:28:31. > :28:41.- absolute secrecy. This is one of the four

:28:42. > :28:47.main financial data Trillions and trillions

:28:48. > :28:52.of dollars a day are traded in the computers, the servers,

:28:53. > :28:58.and the wires in this building. Hundreds of brokers,

:28:59. > :29:01.asset managers and traders rent space here because they want to be

:29:02. > :29:03.as close as possible to the exchange's computer,

:29:04. > :29:10.called the matching engine. This is a graphical

:29:11. > :29:12.representation of orders, both buy orders and sell orders,

:29:13. > :29:17.coming into the market. Before he and Brad founded IEX,

:29:18. > :29:26.he made a very good living installing the ever faster boxes

:29:27. > :29:28.and cables for traders looking It's not only being in the building,

:29:29. > :29:33.as close as possible to exchange, it's where you are in the building

:29:34. > :29:36.relative to where the exchange is. I'll give an idea on that,

:29:37. > :29:40.roughly 11.8 inches, a foot of cable, equates

:29:41. > :29:42.to a nanosecond, one People are getting into pissing

:29:43. > :29:46.matches over the length of their cable in relation

:29:47. > :29:49.to where the matching engine is. Well, imagine a pension fund

:29:50. > :29:55.is looking to buy 1 million shares. The order might start in one

:29:56. > :29:58.exchange, but have to travel around A high-speed trader,

:29:59. > :30:04.who has paid the first exchange for superfast access,

:30:05. > :30:07.detects the order in a few millionths of a second and races

:30:08. > :30:10.around the other exchanges to buy up By the time the pension fund arrives

:30:11. > :30:16.at the other exchanges, it has to buy it from the trader

:30:17. > :30:19.at a slightly higher price. It's a guaranteed profit

:30:20. > :30:22.for the trader and great This is where the New York Stock

:30:23. > :30:32.Exchange really is, its massive, windowless data centre in Mahwah,

:30:33. > :30:38.New Jersey. Traders can locate their computers

:30:39. > :30:43.inside - of course, for a price. It's estimated that if you want it

:30:44. > :30:46.to connect to all the exchanges in the US, using the highest speed

:30:47. > :30:50.services available, it would cost They want one team to win

:30:51. > :30:59.more than the other. Because if the team that was buying

:31:00. > :31:01.these advantages was losing, So, the price that is being paid

:31:02. > :31:07.for these advantages helps give you some sense of the magnitude

:31:08. > :31:09.of the cost. It ends up adding up

:31:10. > :31:14.to billions of dollars. This is their matching engine,

:31:15. > :31:19.housed in the CenturyLink NJ2 Not only can you not pay

:31:20. > :31:24.to get faster access, IEX routes all orders through this

:31:25. > :31:29.boring looking box. It contains miles and miles

:31:30. > :31:32.of fibre-optic cable, coiled up. It's a speed bump to slow down

:31:33. > :31:40.the high-speed traders. What we've done is delayed

:31:41. > :31:50.the access by 350 microseconds. To give you an idea

:31:51. > :31:53.what that means, it's 350 millionths of a second,

:31:54. > :31:55.one thousandth a blink of an eye. Whoever measures this stuff,

:31:56. > :31:57.it's approximately that. That allows us to interpret what's

:31:58. > :32:00.going on in the market and ensure the experience on IEX

:32:01. > :32:02.is as fair as possible. Well, say a pension fund put

:32:03. > :32:06.in its order to IEX, it goes through a 350 microsecond

:32:07. > :32:10.speed bump on its way in. But this doesn't matter because,

:32:11. > :32:12.as yet, no-one knows it's The news of the order also goes

:32:13. > :32:18.through the speed bump It's only now that high-speed trader

:32:19. > :32:23.can see the order as it's spread IEX has already had time to check

:32:24. > :32:30.the other exchanges to see The speed merchants have

:32:31. > :32:37.lost their advantage. We're not going to let a buyer pay

:32:38. > :32:40.a price that we know So, in many ways, we prevent

:32:41. > :32:43.trades from happening. We are lowering our revenue,

:32:44. > :32:46.but protecting them. We are lowering our market share,

:32:47. > :32:49.but we are preserving the experience and the quality of the experience

:32:50. > :32:52.of a buyer on our market by not letting them get

:32:53. > :32:57.picked off consistently. This is Nasdaq's data

:32:58. > :33:01.centre at Carteret. Other stock markets have waged

:33:02. > :33:05.a concerted, but unsuccessful battle against IEX's

:33:06. > :33:09.approval by regulators. They argue that the 350 microsecond

:33:10. > :33:12.speed bump meant the new exchange would prevent fair access

:33:13. > :33:16.to the market. Now, we did ask Nasdaq

:33:17. > :33:18.for an interview, but they declined, Which is a shame, because there

:33:19. > :33:23.are plenty of questions No-one can say they're not

:33:24. > :33:30.cleaning up Wall Street. But a few pine needles

:33:31. > :33:33.is the least of their problems. Faith in our financial system has

:33:34. > :33:38.not recovered since the crash. Slowing everything down,

:33:39. > :33:40.and freezing out the high-speed It could also help the whole system

:33:41. > :33:46.become more stable and less prone to Last night you heard Graeme Wood

:33:47. > :34:02.give his view that Isis was part We promised you an alternative

:34:03. > :34:05.view and here it is, from the academic and philosopher

:34:06. > :36:18.Tariq Ramadan. Let's go back to where we started,

:36:19. > :36:31.with President Trump. Is what we have seen so far just

:36:32. > :36:32.teething problems for an insurgent President, or fundamental problems

:36:33. > :36:36.of competence and integrity? Let's talk to Dana Milbank

:36:37. > :36:39.from the Washington Post and Asra Nomani, who has written

:36:40. > :36:52.for Breitbart and the Hill. I'll start with you, I will mash up

:36:53. > :36:55.a famous quote about the news being something that somebody somewhere

:36:56. > :36:59.doesn't want the people to see, everything else is PR. When Donald

:37:00. > :37:03.Trump talks about fake news, the crew could media, he is talking

:37:04. > :37:11.about everything that isn't it? -- the crooked media. A correction, I

:37:12. > :37:15.haven't worked for Breitbart. I now write freelance for a number of

:37:16. > :37:21.publications. I have to make that correction only because what I

:37:22. > :37:26.fundamentally see happening in our press in the United States, in our

:37:27. > :37:29.discourse about so much related to the Trump administration is the

:37:30. > :37:34.vilification of both the Trump administration and anybody who might

:37:35. > :37:37.say there is any rational discourse to be had about the administration

:37:38. > :37:43.and its policies. That is what really concerns me as a journalist.

:37:44. > :37:47.What do you mean by vilification? I think we have lost our other guest,

:37:48. > :37:53.this could be the beginning of a beautiful friendship! What do you

:37:54. > :38:01.mean by vilification? I will give you a few examples. 40 years ago, as

:38:02. > :38:04.you know, you are an old school journalist, Carl Bernstein at the

:38:05. > :38:07.Washington Post treaded new ground of investigative journalism. Just to

:38:08. > :38:13.show how far we have fallen, this last week, Carl Bernstein's son, now

:38:14. > :38:22.a reporter at the New York Times, was busted for calling Melania Trump

:38:23. > :38:29.a hooker. He owned up to it and apologised. I'm going to insist you

:38:30. > :38:35.tell me how Donald Trump was vilified, he wasn't busted, he came

:38:36. > :38:38.forward after an anonymous journalist was identified and, in

:38:39. > :38:43.something that people may say was dramatic of honest media, said that

:38:44. > :38:49.me and I apologise profusely. Could you give me some examples of Donald

:38:50. > :38:53.Trump being vilified? That example is the Trump family being vilified

:38:54. > :38:57.through the wife. That was a private conversation that wasn't reported.

:38:58. > :39:03.I'm interested in how journalism has vilified the President. You know as

:39:04. > :39:06.well as I do that we have a sacred duty as journalists not to have

:39:07. > :39:15.malice and not to have this type of rabid hatred that I see expressed.

:39:16. > :39:18.In terms of published journalism? The Washington Post a couple of

:39:19. > :39:28.weeks ago wrote a piece, a future peace, in which they said Donald

:39:29. > :39:32.Trump was an ignoramus. An ignoramus? OK. This is not the kind

:39:33. > :39:36.of language we expect from the media. What we have today, a

:39:37. > :39:49.columnist for the New York Times, putting forward a hashtag of

:39:50. > :39:55.Flynngazi, trying to conflated with Benghazi, arguing for new hearings.

:39:56. > :39:59.The media has, unfortunately, with social media, very important, from

:40:00. > :40:03.Facebook to Twitter, to traditional legacy media, they have engaged and

:40:04. > :40:14.participated in this thing that I consider an intifada happening in

:40:15. > :40:18.America. He has complained about reports regarding his executive

:40:19. > :40:21.order being turned over by two courts, he has complained about

:40:22. > :40:28.reports that have led his national security are pointy to resign, he is

:40:29. > :40:33.no doubt poised to complain about reports on why he can get his labour

:40:34. > :40:38.secretary pick through a Congress who controls. Being called an

:40:39. > :40:41.ignoramus is unpleasant, it pales into insignificance when you about

:40:42. > :40:51.what he levelled at Barack Obama and Hillary Clinton. Ignoramus is just

:40:52. > :40:55.name-calling, where is the dishonesty? What I find interesting

:40:56. > :40:59.even in your response, everything high present as substandard

:41:00. > :41:09.behaviour by the media, you discount as a irrelevance. But it is not

:41:10. > :41:14.published vilification. What it reflects is a bias that is turning a

:41:15. > :41:19.lot of people off. You can deflect from it at every turn, every example

:41:20. > :41:23.I present, but what I am telling you is that there is a constituency in

:41:24. > :41:25.America that is very turned off to it and they are going to go into

:41:26. > :41:30.hiding, like they did with the election. But they will come back

:41:31. > :41:40.for the votes in 2018, 20 20. It would prove gait behoove is to

:41:41. > :41:48.ignore those that are turned off by the buyers. -- the bias.

:41:49. > :41:51.We leave you with news that Harrison Ford is facing

:41:52. > :41:53.the possibility of losing his pilot's license after almost

:41:54. > :41:57.landing his single engine plane on top of a Boeing 737 at John Wayne

:41:58. > :42:22.And it's now come to light that this isn't his first offence.

:42:23. > :42:23.Hello. Most places becoming dry for the rest of the