Transcripts For KQED PBS NewsHour 20160708

Sreenivasan all that and more on tonights pbs newshour. Major funding for the pbs newshour has been provided by you never discriminate. You want everyone the young, the old, the soft and the strong but cancer, were fighting you with immune therapies and genetic testing, with laughter, with strength because every one of us is doing one thing only making cancer history. Xq institute. Lincoln financial committed to helping you take charge of your financial future. And by the alfred p. Sloan foundation. Supporting science, technology, and improved Economic Performance and Financial Literacy in the 21st century. Supported by the rockefeller foundation. Promoting the wellbeing of humanity around the world by building resilience and inclusive economies. More at rockefellerfoundation. Org Carnegie Corporation of new york. Supporting innovations in education, democratic engagement, and the advancement of International Peace and security. At carnegie. Org. And with the ongoing support of these institutions and individuals. This program was made possible by the corporation for public broadcasting. And by contributions to your pbs station from viewers like you. Thank you. Sreenivasan police are again under scrutiny tonight over the deadly use of force against minorities. Thats after the second Fatal Shooting in as many days. This time, it happened in the town of falcon heights, minnesota, just outside st. Paul, the state capital. He didnt deserve to die cheers sreenivasan emotions ran high outside the Governors Mansion in st. Paul this morning. Why do we have to keep saying were human . Its time for us as a people to collectively come together and begin to Work Together on these issues unafraid, not fearing anything or anybody and working until justice comes. Sreenivasan in this latest incident, an officer shot 32 yearold Philando Castile in his car after pulling him over for a broken tail light. Castiles girlfriend, Diamond Reynolds, then livestreamed the aftermath on facebook, with her young daughter in the backseat. The victim could be seen bloodied and slumped in his seat, as reynolds narrated that castile was legally carrying a gun. Hes licensed to carry. He was trying to get out his i. D. And his wallet out of his pocket and he let the officer know that he had a firearm and he was reaching for his wallet and the officer just shot him in his arm. Sreenivasan more and more people viewed the chilling video overnight, and hundreds of protesters gathered outside the Governors Mansion in st. Paul. By morning, governor mark dayton, a democrat, announced hes seeking a federal civil rights investigation. But to many in the crowd, including the reverend danny givens, those words rang hollow. You keep telling us youre going to do something i sat at the table with you i just want you to put some action on it put some respect on our peoples names thats all i want. I just want it to be real. Sreenivasan castiles girlfriend was also at the rally, and directed her frustration at police. They did not check for pulse on the scene of the crime. They did not make sure that he was breathing. They instantly rushed their colleague off to the side where they comforted him. Would this have happened if passengers were waiting, i dont thinks. Im forced to think this kind of racism economist. Sreenivasan Police Officials did not identify the officer except to say hes been on paid administrative leave. Friends and family of Philando Castile spoke of him kindly. A black lives matter sign hung today and a protest was at the Governors Mansion. Enough is enough our Community Needs to hear from everybody in the community that this isnt our Community Needs to hear from everybody that this isnt ok and we need to make sure that all lives matter and you know it was just a traffic stop and if things escalate but maybe this couldve been prevented. He was just so patient and even when kids were coming in late and dropping trays well getting jammed in that line you know i watched him and he was just so patient and calm with the kids. Sreenivasan the minnesota shooting came just one day after a white officer in baton rouge, louisiana fatally shot alton sterling outside a convenience store. As protests continue, louisianas governor has asked for a federal civil rights investigation into that killing. And at a house hearing today, a leading black congressman urged f. B. I. Director james comey to take action. I am a lawyer. And i know how Important Police are and i know theres so many great folks, but mr. Director, if you do nothing else in your 2,000 plus days left, you have got to help us get a hold of this issue. It is so painful i cant even sreenivasan in his own statement, president obama said the killings show again that theres a serious problem in relations between police and minorities. Well explore the issue of Police Killings of black suspects, in greater detail, after the news summary. Woodruff in the days other news, the latest trial began in baltimore for Police Officers charged in connection with the death of a young black man. Freddie gray had his neck broken while riding in a Police Transport van last year. Lieutenant brian rice is the highestranking of six officers charged. Hes accused of manslaughter and other crimes for not making sure gray was using a seat belt. Two other officers have been acquitted, and another trial ended in a hung jury. Sreenivasan House Republicans have indefinitely put off any vote on gun control legislation. A number of news outlets reported today its unclear when Party Leaders can win over enough conservatives to pass their gun and antiterrorism bill. Meanwhile, democrats spoke one byone on the floor. They held photos of People Killed by guns, and demanded a vote on tightening background checks for gun buyers. Woodruff the Political Drama over Hillary Clintons emails played out on capitol hill today. At a congressional hearing, f. B. I. Director james comey defended the decision not to recommend criminal charges in the case. And House Speaker paul ryan confirmed hes asked the director of National Intelligence to bar classified briefings for clinton, once she becomes the democrats president ial nominee the director of the f. B. I. Just said that Hillary Clinton recklessly mishandled sensitive classified information. And in three weeks when she comes out of the convention, she is going to get unfettered access to the most sensitive classified information our government has . No way. Woodruff well have a full report on todays house hearing with f. B. I. Director comey, later in the program. Sreenivasan theres word that senator Bernie Sanders is finally ready to endorse Hillary Clinton for president. Democrats have been pressing sanders, and the newshour has confirmed the announcement will come tuesday. Meanwhile, donald trump spent today in washington, trying to reassure congressional republicans. He met with members of the house and senate, and some, including several who had criticized trump, said they were encouraged. I wanted to see him do two things cast a vision and then contrast himself with the democrats flawed candidate. And then thirdly have fewer unforced errors and fourthly raise some money. And so you feel better after today . I do. Sreenivasan but trumps meeting with senators became heated when he attacked critics and warned theyd lose re election. One of them, jeff flake of arizona, is not actually up for reelection this year. He said the exchange did nothing to win him over. Yeah it was a bit tense. Why . I wanted to talk about a few of the concerns we had and did. I mentioned in there that im not in the Never Trump Movement i want to support our nominee i really do but given some of the statements that have been made im finding it difficult. Sreenivasan trump also reportedly called illinois senator mark kirk a loser. Later, kirk branded the candidate a wealthy bully. And a spokesman for nebraskas ben sasse said given the choice of trump or clinton, the senator believes this election remains a dumpster fire. Woodruff in iraq, the death toll from sundays bombing in baghdad soared again today. Iraqs Health Ministry reported a total of 292 people have now died as a result of the Islamic State attack. The bombing devastated a busy market in a mostly shiite neighborhood. In addition to the dead, more than 200 were wounded. Sreenivasan islamist militants also struck again in bangladesh, attacking police at a festival marking the end of ramadan. Four people were killed. Last week, an assault on a cafe in dhaka, the capital, left 28 dead. The Islamic State group claimed that attack. Woodruff britain may be on the verge of having its first female Prime Minister since Margaret Thatcher was ousted in 1990. Ruling conservatives narrowed the field for the leadership of their party today to two interior minister theresa may and andrea leadsom, who helped head the campaign to leave the European Union. A final decision is due by early september. Sreenivasan and, wall street struggled, after crude Oil Inventories came in expectedly high, and oil prices sank. The Dow Jones Industrial average lost 22 points to close below 17,896. The nasdaq rose 17 points, but the s p 500 dropped about two. Woodruff still to come on the Newshour Police shootings in the spotlight. The f. B. I. Director takes republican heat over his handling of Hillary Clintons email server. Estonia nato exercises in a nation under russian threat, and much more. Sreenivasan the Police Shooting of an africanamerican man in minnesota, and the disturbing live video that captured part of the aftermath, led to another day of anger, distress and serious questions. Among them why was lethal force used. How Police Respond to situations and the growing impact of video and social media. We explore this with jelani cobb, a staff writer for the new yorker. His latest project is a frontline documentary called policing the police. David klinger is a criminal justice professor at the university of missouri st. Louis, and a senior fellow at the police foundation, and issie lapowsky a staff writer at wired magazine. Jelani, let me start with you. Like thousands if not millions of people today, you saw the video. Your initials reactions . It was just abject horror. It was an amazing thing to see someone able to maintain their composure in the face of just the most horrible circumstance that we could imagine, and to think this happened just in the span of 36 hours after the previous video of someone who died in an incident with the police, it honestly was a lot to process. Sreenivasan David Klinger, your reaction . The video out of minnesota is one of the most compelling things ive ever seen. I follow up with what the other gentleman just said about trying to process it in terms of her composure, the fact that her daughter is there, her daughter comforting her later on, the video opening with the gentleman bleeding, obviously being shot, the officer shouting. It was very compelling and very disturbing. Sreenivasan david, staying with you for a second, there are thousands if not hundreds of thousands of traffic stops every day and police around the country figure out a way to never get anything to escalate to this level. Whats failing in these cases . Whats the training on a basic traffic stop . Well, basically, walk up and identify yourself as a Police Officer, ask for drivers license, registration, and then you move from there. In this situation, as i understand it, the driver told the officer that he had a ccw permit, carry concealed weapon permit, and it devolved from there, and trying to understand how it got to that point is going to be the nub of the investigation. Because the video starts after the shots have been fired, we dont know what preceded it, and, so, i say we just need to wait and see what all the rest of the evidence is regarding what happened in terms of pulling the trigger. Sreenivasan issie, you wrote today this Live Streaming was almost like a 911 call in the context of police abuse. Sure. When youre on the other side of Police Brutality or Police Shootings, you cant call the police, which is the natural instinct most people have when youre in an emergency situation. So now social media has really become this lifeline for people. Its not only there to document it so we can see what happened after the fact, but in that moment, in that video, you can see Diamond Reynolds is really calling out for help in that moment because she doesnt know where else to turn. Sreenivasan jelani, the idea that woman was literally giving out her address, trying to get people to come to her, is this a sign there is a vacuum in some ways that law enforcement, the department of justice, when they do these investigations, there is still a failure there that there cannot be that accountability that someone can turn to . Certainly. And, you know, weve seen this again and again and again in a systemic way. You know, to the bigger point thats here is also something about the gun culture in the United States, wherein weve seen the response to, you know, Mass Shootings and total sum of homicides in this country and, in the face of that, a really recalcitrant inassistance insistence on a fundamentalist version of the Second Amendment, yet this person was guilty of nothing more than taking the Second Amendment at face value and identifying himself as a registered weapon holder and it results in him being killed, fatally shot. So i think it sends a message here that these principles are really not made with us in mind, they dont apply to us. Sreenivasan David Klinger, governor mark dat dayton said ot loud today that basically would this have happened if the driver or passenger was white . And the governor says no. Whats the Training Police have when it comes to racial profiling, something that the whole country is sensitive about these days . Theres a lot of training thats been going on around the country. The United States department of justice is putting on an implicit bias training for all federal agents, as i understand it, and, so, its something that is ongoing. But i would challenge the governors position. He knows nothing about how this situation went down. Hes not privy to the investigative case file. The investigation is still ongoing. To say that it was a raciallybased shooting, we have no idea at this point. It may well be, but we dont know that at this point and the evidence that we do have in terms of the statistics that we do have indicate in fact the majority of People Killed across the country by United States Police Officers are white people. Sreenivasan david go ahead, janly. Also, thats misleading to frame it in that way. Certainly, we should be very cognizant that the majority of the People Killed in this country are white, also the majority of the population is white. When you look at this in terms of population share, a proportionately smaller number of white people in the general population killed by police and a generally proproportionately higher number of colored people are. Immediately we say, well, there are higher Crime Statistics among people of color, but even when dealing with unarmed individuals, there is still a disproportionate number of people of color killed. Sreenivasan in the last two years, 2. 5 times as many africanamericans killed as white people. Issie, i want to bring this to you for a second. Did the videos change something . When i saw it last night, i almost found it impossible to believe that it was true, and then all of a sudden, as it was rolling out, there were different feelings i was having. I think this video cuts really deep. You have a man there dying in the drivers seat, his girlfriend is sitting next to him suffering, you have the Police Officer yelling out these barbaric screams, you have a little 4yearold girl who just witnessed a murder suddenly comforting her mother. Its impossible not to be sympathetic. So theres a lot of conversation about whether these videos should immediately be published, and i think thats we have to decide as a society whether we, you know, want to protect these delicate sensibilities we have, or whether we want to let these stories be shared in full, aside of the story that historically has not been shown and the value of social media has always been allowing people to go direct to the public and sidestep the Mainstream Media and, so, yes, i think it is changing things. Sreenivasan what about the possibility of a desensitizing effect, the fact were talking about two videos in such short succession over time, discuss it become almost like a drum beat and ultimately change the equeetion . Wellwell, i dont know. Many communities have talked about this and were not believed. So at the very least, we now have some sort of documentary evidence of what is happening. As far as desensitizing, the majority of the population has been desensitized to the suffering of this Community Since the inception of this country, and so i dont think this is going to somehow or another make someone that is concerned about these issues look askance and say i can no longer countenance whats happening. Sreenivasan David Klinger, video seems to be a realty of what every Police Department has to deal with, whether their body cameras and the chain of custody of the video throughout the process, or as we now see, more often than not, after the initial moment of the incident, someone, a bystander or in this case part of the victims are actually turning to social media to turn this on. So how do Police Departments around the country kind of brace for this, prepare for this . What they should do is they should be telling all their officers to assume that you are being videoed, even if you are not wearing a body camera or you dont have an incar video thats working and to, therefore, act appropriately, just as another check to remind officers to do the right thing. One of the things thats frustrating to me is there is still some Police Agencies out there that dont understand that citizens have an absolute lawful right to go ahead and video and audio record them when theyre in public space. The only issue is that we have to negotiate or explain to people what the rule set is going to be about not interfering, and i think that thats the next thing that people are going to have to understand, theres a time and place to step back and take that video. You shouldnt be introducing yourself into the event itself. Ive got friends who are Police Officers who say that a sizable number of times when they get out of their vehicle, a crowd will surround them and try to egg them on so they can get a better clip to put up on youtube. So i think we better figure some stuff out here. But Police Agencies shouldnt be worried about the fact the public is monitoring them from video and audio recordings. Sreenivasan David Klinger and generall jelani cobb, thanko much for joining us. Thank you. Woodruff we turn now to another highprofile story of this day where the u. S. Justice system is being questioned. Lisa desjardins reports. Im here because were mystified and confused. Immediately republican chairman jason chafe its of utah challenged f. B. I. Director james comey over whether the bureau let clinton off easily. It seems to a lot of us that the average joe, the average american, that if they had done what you laid out in your statement, that theyd be in handcuffs, and they might be on their way to jail and they probably should. And i think that there is a legitimate concern that there is a double standard. Reporter but over five hours of testimony, comey insisted his agency was right to recommend no charges. Recommendation was made the way you would want it to be, by people who didnt give a hoot about politics but who cared about, what are the facts, what is the law, and how have similar people, all people, been treated in the past. Reporter still, other republicans, like south carolinas trey gowdy, pressed the f. B. I. Chief on whether clintons previous statements about the emails were true. Secretary clinton said i did not email any classified material to anyone on my email, there is no classified material. was that true . There was classified email. Secretary clinton said she secretary clinton said all workrelated emails were returned to the state department. Was that true . No. We found thousands that were not returned. Reporter comey argued insisted that what clinton did may well be have been worth some kind of punishment, but not prosecution as a crime. So should have known, must have known, had to know does not get you there. You must prove beyond a reasonable doubt that they knew they were engaged in something unlawful. Reporter he drew a distinction with a similar case, that of general david petraeus, who agreed to a plea deal in 2015 over mishandling classified information. Have obstruction of justice, misconduct, thats a perfect illustration of case that wed prosecute. Reporter while republicans argued that the lack of charges was political, Committee Democrats contended the politics were all in the hearing itself. Despite your impeccable credentials, republicans have turned on you with a vengeance, your recommendation not to approve criminal charges against secretary Hillary Clinton. Hillary clinton stayed off the campaign trail but her press secretary said todays hearing knocked down republican falsehoods and shut the door on conspiracy theories about the emails once and for all. House speak. But House Speaker paul ryan believes the case is not closed right now, there are still far more questions than answers regarding the investigation of secretary clinton. Reporter the nations Top Republican asked for all unclassified documents in the investigation to be released, for the pbs newshour, im lisa desjardins. Sreenivasan tonight our series from eastern europe, fault lines, takes us to estonia. Unlike ukraine, where we spent the last two nights, estonia is a member of nato, one of the alliances smallest countries, but among its most committed members. Today estonians say they need nato more than ever because their fears about a resurgent russia are the highest since the country gained independence when the soviet union collapsed 25 years ago. With the help of the Pulitzer Center on crisis reporting, special correspondent Nick Schifrin begins our report in the city of narva, literally a stones throw from russia. Reporter welcome to the friendship bridge, even though things here arent very friendly at the moment. Behind me is an estonian castle from the middle ages. This is estonias easternmost border, the narva river. Which means its the border between nato and the e. U. , and russia. This has been called natos most sensitive border. Ivan the terrible built the russian castle. And of the last 300 years, russia has occupied estonia for 250. We said, never again. Reporter 51yearold Brigadier General meelis kiili commands the Estonian Defense league, the equivalent of the national guard. He met me in the occupation museum, surrounded by artifacts of the soviet unions occupation that began in the 1940s. Me and my father were listening every night. There was a voice of america that reached out behind the iron curtain. Reporter when you look at todays russia, do you see echoes of what we are looking at around us . I remember the joy when we regained our independence. The message is clear, we are going to defend our liberties, our country and our pride. Reporter to defend the country, all estonian men are conscripted. But the army has only 5,000 active duty soldiers. So the 15,000 volunteers whom general kiili commands, are the tip of the countrys spear. I would like my child will also be in free estonia. Not, as i was born, in occupied estonia. Reporter 51yearold toomas varva spends his weekends training as a sniper. His day job is c. E. O. Of a textile factory. You see what happened in ukraine. You have to be ready for that. Reporter estonians watched in horror as crimeans celebrated russias annexation, and russian soldiers helped destabilize eastern ukraine. They fear estonia might be next. Across the border russia launches military exercises with as many as 80,000 soldrs. Nearby, swedens hunted for russian submarines believed to have operated off its coast. And russian jets have buzzed american warships. When crimea started, several friends of mine, family members asked, hey, is it time to pack up our families, put them on ships, somewhere safe place, and get ready for war . Reporter 42yearold lt. Col. Jaak tarien commands estonias air force. My grandfather was an officer in the Estonian Army before war and he was deported to siberia, never to come back. I hope that we can deter russia from ever making a big mistake again. Reporter deterring the bear requires a lot of backup. Tarien commands an air force with no jets. He relies entirely on nato and u. S. Firepower. If russia wanted to, they could come through very, very quickly. And so our Response Time must be much, much faster now. Reporter 32yearold Christopher Moore trains apache pilots based in germany. For 15 years he taught Counter Insurgency for iraq and afghanistan. Russias annexation of crimea changed his training overnight. The pilots coming out of Flight School now, we are immediately building this idea of how to fight the disciplined fight. Reporter translation after a quarter century of looking elsewhere, natos refocused on its original enemy. When i started this 27 years ago, we were trained to fight the soviet union. Reporter col. John meyer commands the 2nd cavalry regiment. During the cold war, the second cavalry guarded the iron curtain. Today, his troops his men are deployed in half a dozen countries behind the curtain. What has changed over the last 27 years is that there are nations now in eastern and Central Europe that have volunteered to join in the alliance. Reporter after crimea estonia invited the u. S. To deploy 150 soldiers, and hold increasingly large exercises, like this one. Tomorrow, nato will announce the deployment of a new, 700soldier unit to estonia. So its that commitment of a unified alliance with 28 nations that is what deters. Reporter but after britain voted to leave the European Union, estonians worry about european fortitude. And they fear the possible impact of president ial candidate donald trump. We are protecting them and they are getting all sorts of military protection and other things, and theyre ripping off the United States. And theyre ripping you off. Reporter trumps criticism is economic. In the early 1980s, the u. S. Accounted for half nato members military budgets. Today, the u. S. Accounts for three quarters of those budgets. Either they pay up, including for past deficiencies, or they have to get out. And if it breaks up nato, it breaks up nato. We cannot allow this very successful alliance to fall apart because in one case we dont want to do anything. Reporter Toomas Hendrick ilves has been estonias president for nearly a decade. Natos article 5 says if estonia were attacked, the United States and every nato country would be obliged to go to war with estonias attacker. If that political will is missing in one case then the entire enterprise falls apart. Reporter why should americans who are skeptical about spending money on the military in other places care about estonia . Its about the american values. It is important for the better world in the future that estonia stays free and democratic country and democracy spreads east from here, instead of vice versathe tyranny spreading west from here. Reporter why is this important that you are training for this threat . If we continue to sit back and watch one country fall, and then another country fall, they are literally talking all of europe. And now literally the only thing they have left is the u. S. , but now they have the resources of all those other countries. Its a dangerous mindset to be passive and just sit back. Reporter estonians argue, unlike the vast majority of nato members, they meet the military spending requirements. And when the alliance has called, theyve answered. Article 5 has been invoked once and that was by the United States and that was in the wake of 9 11 in which we went to afghanistan, we were smack in the middle of taliban land. So we did it, we did our duty. Reporter is the end of that sentence that, you came to the United States aid, you would expect the United States to come to your aid . We came to we fulfilled our nato obligations and we would expect nato to fulfil theirs. Reporter back in narva, along the russian border, the soviet war memorial serves as a warning. In crimea, russia claimed authority to intervene on behalf of ethnic russians. And more than 90 of narva is russian speaking. When you come up here and see this view, what do you think . 14yearold igor shirai is the son of a russian mother and estonian father. From the castle, there is no sign of tension. Igor and much of this town wants to keep it that way. These provocations from both, from both sides, theyre pretty much useless, because it just grows the tension, raises the tension even more. Reporter thats because narva feels calm and estonians have it pretty good. They make more money than their russian neighbors. Their children can work across the e. U. That stability and prosperity keeps russian speaking residents, pro european. translated this region economically is quite well off and selfsufficient. Reporter judging by the office of 62yearold vladimir petrov, hes a russian nationalist. You have the magnets of putin, newspaper, it seems like youre prorussian. translated when i receive older people, they are familiar with all this. Its very dear to them. It makes them feel at home. Reporter he is the chairman of the union of russian citizens in estonia. But even he wants his love of russia to remain a Long Distance relationship. Russia could very quickly come in. Would the people of narva welcome that . translated the daily life thats continuing here is nothing like military intervention, and no one is hoping for that. Reporter so estonias deterrences are economic enlargement and military might. For both to work, they need a robust European Union and nato. Without those alliances, natos most sensitive border, could become its most vulnerable. For the pbs newshour, im Nick Schifrin in narva, estonia. Sreenivasan tomorrow in our final story, nick will look at natos biggest buildup in europe since the cold war. Woodruff stay with us, coming up on the newshour the ominous future of cyber warfare. And jim gaffigins take on the changing world of comedy. But first, it has been a rough couple of weeks in britain since the country voted to leave the European Union. The pound dropped to its lowest levels in more than three decades, and the european markets have taken hits over concerns about the economic impact. Tonight, we get a longer view, and a less alarmed one, about what it means for Global Banking and financial stability. Our economics correspondent, paul solman, filed this report from across the pond, part of his weekly reporting on making sense of financial news. Reporter mervyn king, the former head of the bank of england. In his new book, the end of alchemy, king still worries that the world Banking System hasnt reformed itself, eight years after its excesses led to collapse. Thames, the Old Man River of britain, been here forever, rather like money and banking, weve always had them. Reporter as it happens, he was giving me a tour of london to make his case on the day of the brexit vote. The odds makers, the markets, and i at least thought britain would remain in the e. U. As we passed a group of upbeat remainers i thought no problem. Counting is under way of tens of millions of votes. Reporter then came the result. And the answer is, were out. Reporter so before asking you to take the tour, we checked back with king to see if the vote had altered his analysis. We didnt talk much about the brexit vote because actually the brexit vote isnt germane to the fundamental challenges dealing with our Banking System and putting it on a sound footing. We were talking as we walked around london about the really important longrun issues affecting our economies. Reporter look, king says, when you take the long view, the Global Financial system needs the same fixes it did before brexit; he believes his tour of london finance, therefore, is as relevant as ever. This is lombard street, the title of walter bagehots great book in the 1870s about how to ensure that banking crises dont occur or how to respond to them and this was the place where finance houses were situated, the early coffee houses which turned into banks and trading houses and the heart of the city of london. And his idea was that people who worked here would just be able to walk across the street to the bank of england, give the security, the collateral they had to the bank of england. Bank would lend them money, theyd rush back and pay off the creditors and depositors who wanted their money back. Reporter Central Banks exist to be lenders of last resort. Problem too big to fail. And thats what began happening in england, just like america, in the 80s and 90s. So here we are now in the modern docklands area. So this is where the banks came to trade. All the derivative instruments, cdo squared, all the complex instruments, they were traded down here. Reporter and is a large part of the problem that crystallized in the crash of 08, because people like yourself, the bank of england, the fed in the United States, couldnt keep up with the innovation that was going on in places like this . I would put it differently, i think there were two things that were going on. One was that because Interest Rates were falling throughout the world, asset prices were rising, trading looked very profitable and therefore the leverage of the Banking System rose very sharply. Reporter leverage meaning the ratio of the banks own money to the money it borrows in the form deposits or short term loans. So that made the Banking System more fragile. The other thing was that what proved very difficult, and its always going to be very difficult, is that businesses or particular methods of Financial Services that keep making money year after year. Are they making money because they are just good ideas and they are very successful or are they making money because they are very risky and are just on the edge. Reporter but people mustve realized that was happening so how come regulation didnt adapt to the changing environment . Its easy with hindsight to look back and say, oh these regulations turned out to be inadequate because it turned out the mortgage lending, for example, was riskier than was thought beforehand. But thats the problem of thinking in advance that youve got a detailed system that works, and then you think, oh that will work, then you discover it doesnt. And you do need something much more robust and more simple to prevent i think the same problem from happening again. Reporter so king has two proposals for preventing another crash. So this now is the bank of england. This is the building which has been the home of the central bank since the early 18th century. Reporter and this is where you were in 2008 . Yes, i was on the ground floor because the Governors Office is on the ground floor and this is where the banks would come in to meet with us regularly and where they would say, we need a lot of money. Reporter and the whole point of your book is to make sure that we dont have as frequent or as damaging a banking crisis as we saw in 2008. Reporter kings first proposal is that banks insure themselves against catastrophe by making enough safe, secure loans so they have assets of real value to pledge to the central bank if they need a cash infusion in a hurry. Yes, so that when there is a run on the bank and depositors lose confidence for whatever reason, it is perfectly acceptable for the central bank to pay the cash to the Banking System as a short term loan. Reporter kings second proposal is also simple force the banks to keep enough cash on hand to cover loans gone bad. Banks did not have enough equity finance. Reporter so when you say equity you mean the cushion of the banks own money. Yeah, the shareholders own funds which are available to be able to absorb losses without defaulting on the loans which banks have taken out, whether from other bits of the Financial Sector or from you and i as depositors. When a bank fails to be able to return money to its depositors or other people from which its borrowed, then the bank fails and you get into a problem of potential default. Reporter the last question i asked king the day of the brexit vote was this in how much danger is the world Banking System at the moment . On a scale of 110, i added. I think in terms of the current immediate problems you know only 3, 4 or 5 but if you were to say to me, do i think we are going to avoid a serious problem in the next decade . , then i think the answer is probably not. That is much more like 7 or 8. Reporter and does he still give the same scores, now that the u. K. Has voted to exit the e. U. . I dont think the vote makes any significant difference to the risks facing the Global Banking system. There were and are significant risks in that system because of the potential fragility of our banks, and because of the state of the world economy. But i really dont think the brexit vote itself really makes any significant difference. Reporter as, he adds, it may not make any significant difference to the longterm future of europes economies, despite the chop in the currency and stock markets at the moment. Economies have a habit of being pretty resilient in the longer run. When people and countries want to trade with each other they find ways to do so. And im sure that will happen now. Reporter this is economics correspondent paul solman, reporting from the u. K. , and now, from back in the u s of a. Sreenivasan now, a new documentary lays out a sobering view about the use of cyberwarfare, a future thats accelerated since intelligence agencies sabotaged Irans Nuclear program. The film, called zero days, opens in more than a dozen cities tomorrow and will be available online. Its director stopped by as part of the recent a. F. I. Docs festival. Jeffrey brown has our conversation. Brown the 2010 cyberattack on an Iranian Nuclear facility, the first question is what exactly was this sophisticated weapon, the second who created and carried it out and in the year since many new questions have arisen about cyberwarfare and the new world we live in. The documentary zero days pulls together what happened. Alex gibney, fillmaker of numerous films, joins me. Welcome. Thank you. Brown why was this a subject you wanted to tackle . Seemed like it was a story that was about the internet and the militarization of the internet but was not properly understood and i certainly didnt understand it so it made me want to dig in. Reporter remind us what stuck net was and how you figured out a way to capture it. Stucks net was a piece of malwear self replicating so you didnt have to click on it for it to spread from computer to computer but it was unique in the sense that it crossed the threshold from the dyber realm to the physical realm and introduced to the Iranian Nuclear facility and took over the machines that controlled the centrifuges and caused them to spin wildly out of control until they blew up. Interestingly, it had an oceans 11 kind of component which relayed a messageo the engineers that all was well, so it sowed tremendous doubt in the minds of the people. Brown the beginning first part of your film is this detective story, you go to cybersecurity experts and i want to show a clip where two of them are trying to figure out what it is and what it might be aimed at. It spread to any windows machine in the entire world. We had these organizations inside the United States who were in charge of industrial control facilities saying were infected, whats going to happen . We didnt know if there was a deadline coming up where the threat would trigger and suddenly turn off all electricity plants around the world or start smovg things down or mounting some attack. We knew stucks net could have dire consequences, and we were very worried about what the pay load contained and there was an imperative speed that we have to race in trying to beat this ticking bomb. Eventually, we were able to refined this and saw iran was the number one affected country in the world. That immediately raised our eyebrows. We had never seen a threat before where it was predominantly in iran. Brown how do you capture Something Like this . These arent bombs at go boom. These arent things that we can see. This is the digital world. We have three approaches that helped us tell the story. One is we had two detectives. It became a detective story. Our two detectives were the cybersecurity experts from symantec and they led us through the weaponry a step at a time so it revealed things like a detective story. Two, we worked in partnership with a great special effects and Graphic Company called main story. Our main character is a piece of code but we made it live and breathe as if you were inside it an used elements to have the role code so its 100 accurate in how we portrayed it. The last thing is we had a number of people who came forward to reveal information that was of a shocking nature. To protect their identity, we came up of a means of cybergenerated character who spoke their words. Brown one of the running themes throughout the film was secrecy. I dont answer that question. Cant comment. Dont know how to answer that. Two answers, i dont know and if i did we wouldnt talk about it anyway. Brown no one wants to talk about this. Thats right. Brown and thats the nature of this new Weapon System youre up against. I think it goes beyond it. We can all accept a certain amount of secrecy, particularly when youre protecting agents in the field and when human life is at stake, but i think, in the case of Cyber Weapons, we have a whole new generation of weapons, a whole new kind of warfare practiced in the field, both by us and against us, yet were not allowed to talk about them. People at a very high level wont even admit that there was, a, a stucks net, that the u. S. And israel were involved and thirdly that were using these offensive Cyber Weapons routinely and theyre also used on us, that, it seems to me, was a really big problem. Brown some people would argue that the program, stucks net, in particular, achieved its purpose at least in the sense of brig iran to the negotiating table. The stucks net worm did accomplish a very targeted shortterm goal, but in its release and we tell the story of how and why it was released into the world it started a new arms race that has destabilized the world that it was intended to secure. Brown and to that end, in the last part of your film, you have various experts talking about the potential uses against us of these Cyber Weapons. How fearful, in other words, are you after watching . Well, im fearful because i dont think that the Current Administration or the the Previous Administration have taken seriously enough the need for a kind of International Regulatory system the way we have with Nuclear Weapons and, furthermore, they seem to be emphasizing deterrents through secret offense rather than defense, and theyre not telling us about the dangers. You know, recently, for example, there was a shutdown of the ukrainian electrical grid or a big part of it, and were pretty sure that it was the result of russian malwear, a kind of new hyper version of a stucks net. Well, that could happen at anytime with us, and nobodys more vulnerable than we are because were so deeply connected via the internet. Its particularly disquieting because were not allowed to talk about it. Brown the new film talks about it, zero days, alex gibney, thank you very much. Thank you. Woodruff next, to our brief but spectacular series, where interesting people talk about their passions. Tonight, we hear from actor and comedian jim gaffigan. He is the star of the jim gaffigan show which airs sunday nights at 10 00 p. M. On tvland. He has become one of the most universally appreciated voices working in comedy today. Gaffigan speaks to us now about where his observational storytelling began. Whats the most common thing people say to you on the street . Are you brad pitt. Middle clas i was raised to seek security. My parents were children during the depression, and security was wearing a coat and tie. The irony is that my brothers and sisters that are bankers have less job security than me, and i tell diarrhea jokes. I knew probably similar to how somebody when they first try heroin this is pbs, by the way they know their life has been changed and thats how i felt when i was on stage making fun of myself. Standup comedy changed dramatically with the success of Comedy Central and youtube. When i started, there were people that were comedians but there were much more of a riffraff of society, like the people who really couldnt afford therapy went into standup. I was kind of an oddity, being this superben durbin, collegeeducated kids, now i think thats the norm. Essentially, the diversity of comedy has been ruined. Any creative person will tell you youre supposed to write about things youre passionate or embarrassed about. Food is a very passionate and embarrassing thing for me, and its also universal. I mean, everyone eats. I mean, i just eat a lot more than other people. I curse in every day life, but im not going to curse in front of a room full of people. Thats not how i kind of feel empowered, by shocking people. I feel empowered by telling them about jesus no, i feel empowered by making people laugh. I think a lot of observational humor comes from annoyance. Why should we make our bed . We dont tie our shoes after we take them off. Why are we dragging a tree into our living room in december like a drunk person . Human beings are a rather compliant species, so we go along with things that, after some thought, we might realize are kind of silly. My name is jim gaffigan and this is my brief but spectacular take on being a comedian. Woodruff and you can find more from our brief but spectacular series on our woodruff you can find more from our brief but spectacular series on our website. Thats at pbs. Org newshour brief. Now, an update to tonights lead story president obama has just made a statement on the Police Shootings of black suspects in minnesota and louisiana. He spoke after arriving in warsaw, poland, for a nato summit when incidents like this occur, there is a big chunk of our fellow citizenry that feels as if, because of the color of their skin, they are not being treated the same. And that hurts. And that should trouble all of us. This is not just a black issue. Its not just an hispanic issue. This is an american issue. Woodruff you can follow our continuing coverage of these and other stories on our web site. As doctors around the world race to end the aids epidemic, tomorrow we starts a series, the end of aids. Correspondent William Brangham has a preview. Brangham we travel around the world to south africa, struggling to care for more people with h. I. V. Than anywhere else. These are unprecedented around the world. We have to do something about this. Brangham san francisco, which laid out a blueprint to get to zero new cases by 2030. Atlanta, the heart of americas epidemic in the south where hundreds still die every year from aids. I think i have a better chance of winning the lottery than i have of ending aids where we are today. Brangham to a Remote Island in kenya to see whats working with hardtoreach populations. And rwanda, once the site of a genocide, now giving birth to a generation free of h. I. V. We need a generation of kids who never blame us, who never blame the country. Brangham our series on the end of aids starting tomorrow on the pbs newshour. Sreenivasan thats the newshour tonight. Sreenivasan and thats the newshour for tonight. Im hari sreenivasan. Woodruff and im judy woodruff. Join us online and again here tomorrow evening with mark shields and david brooks. For all of us at the pbs newshour, thank you and good night. Major funding for the pbs newshour has been provided by lincoln financial committed to helping you take charge of your financial future. The lemelson foundation. Committed to improving lives through invention. In the u. S. And developing countries. On the web at lemelson. Org. And with the ongoing support of these institutions this program was made possible by the corporation for public broadcasting. And by contributions to your pbs station from viewers like you. Thank you. Captioning sponsored by newshour productions, llc captioned by Media Access Group at wgbh access. Wgbh. Org this is nightly Business Report with Tyler Mathisen and sue herera. High stakes. Tomorrows employment report takes on added importance as investors try to determine whether the labor market is healthy or has in fact lost its mojo. Milk money. A french yogurtmaker makes its biggest acquisition in almost a decade, and its putting its faith in the fast growing market for organic food. Age discrimination . Google has publicly addressed gender and racial imbalance in its workforce. Now a lawsuit alleges another issue. All that and more tonight on nightly Business Report for thursday, july 7th. Good evening, everyone and welcome. An is high. The release of the monthly jobs report is always