foundation of new york, stowe, vt., and honolulu. newman homes -- newman's own foundation and union bank. >> union bank has put its global financial strength to work for a wide range of companies. what can it do for you? >> we are a nation of explorers. we seek new ways of living, of thinking, and of expressing ourselves. we take risks. we learn from experience and we

keep moving for. that is why we encourage and celebrate the explorer in all of us. >> and now, bbc news night. >> flash crash, a high frequency trading destabilize to the global economy. this week, it can cause wild fluctuations in the stock market in minutes. but how much of a threat is superfast high-frequency trading? >> the traders are well ahead of the regulators. >> what happens when two brothers go head-to-head for their leadership of a political party? we will speak with the winner. a doctor was injecting patients with unproven stem cell

treatment and was banned from the uk. what happens to global markets when computers cannot cope? flash crashes was just a moment. all true-fast automated trading -- ultra-fast automated trading stunned wall street. the securities and exchange commission has been examining it. >> 3:00 p.m. may 6,, without warning, the american dow jones went into meltdown in 10 minutes, it lost come% of its value. shares in giants like apple and procter and gamble tumbled as $9

billion worth were dumped, not by humans, but by computers. >> like "terminator," machines taking over. >> the markets were safe. >> i want to speak to the usual market -- to the unusual market activity that took place yesterday on wall street. the regulatory authorities are evaluating this closely. >> since then, there have been further, smaller flash crushers in markets across the globe. again, the suspicion is on computer-driven trees, feeding on one another, prompted by investment programs or algorithms. it is called hundred and two trading and it has changed the face of trading or remove the -- it is called high-frequency trading and it has changed the face of trading or removed the

face completely. the computers that do it can make a single trade in 16 microseconds. that is 1.5 million trades in the time i have been standing here talking to you. each trade may make just a fraction of a penny in profits before it is sold on, sometimes in a matter of seconds. when, why, and how much to buy and a single second is done by program. >> who date, stock prices, what people are searching on google, all that goes into an algorithm. >> are they accurate? >> accurate? they say it is difficult to forecast to the financial markets. but they seem to be very profitable. >> john maynard keynes once warned that markets can remain irrational for longer than you or i could remain solvent.

the london stock exchange says that around one-third of its daily trades are down to high- frequency trading. defenders of flash train say that it boosts liquidity. in other words, it makes trading easier. so what if there is an occasional slip? >> this crash happens very quickly. it started around 1/4 to 3:00 p.m. u.s. time. in seconds, the dow jones lost 600 points. within 20 minutes, it had recovered. did people lose money? people lost and made fortunes on that day. but you and i, our mutual friends, our pensions, did not miss a blank. >> some say that the flash crash of may 2010 could have been a much more serious crash of 1997,

if it were not for the correcting a fact of computerized trading. >> some people argue that computers will help the responsible for bringing a stock market back quickly. in october, 1987, they relied on the ordinary investor who was shellshocked by the stock market crash. that was much more damaging. >> markets have become more volatile, jittery, swaying back and forth. even those who creak algorithms say that it has created of culture of short-term buying. >> in the olden days, you could say this company was such and such and they do this and the other.

they have some many employees and they have this turnover. now you ask the high frequency people and they do not even know what the company is. >> do you think high-frequency trading is a danger to the market to? >> the danger at the moment is that there is a radical change in the way that equities are traded. they are poorly understood. it is not a question of the market being computerized. it is the nature of the way they're treated that have changed. there are dark pools, too. you have rapid changes where the traders are head of the regulators. first of all, the regulators are responding to a lot of political pressure. a lot of people came in the wake

of the last two years of problems that would have had in the stock market. they are pressuring their representatives to do something about it. they get a lot of people's pensions funds who get wiped out. because of the structural changes in the market, traditionally, people used to use technical analysis and fundamental analysis to make decisions about which companies are better to buy and sell. now, everything is moving to quantitative investing and using mathematical strategy is to buy and sell. this is where people are feeling that they do not understand what is happening with the market and why the market is so volatile and they are responding to different events. this creates a lot of fear and high-frequency trading is the most on known of all these new changes in the market and it is the most prominent cents last

year when -- since last year when goldman sacks arrested one of their employees. >> will this move for to faster and faster trading? >> there are a lot of misperceptions in the market. people think that people trade in microseconds. to make a trade, you have to put the money into the market, say, in a stock, even the most liquid one. then you have to wait for the stock to move at least one penny up or down in an otherwise you cannot make money. some people say that they are making fractions of pennies. what they mean is that, on average, sometimes they gained some and sometimes they lose some. at the minimum, you can make one penny appeared to make it move one penny, you have to wait two seconds, on average. >> is this the finessing nature?

>> it is to a degree. essentially, this is a game for hedge funds, banks, or experts. it is not the kind of bank that a mom-and-pop investor can play in. before, the trading moved on regulated exchanges onto private pools. >> do you think there are mechanisms you can have on trades in that sloped down? >> there are ways to slow the market down. frankly, one of the things people say is it is great because you get liquidity and a market. but you get liquidity in good times. when they freeze, you have a

worse situation, like what you saw on may 6. >> battling for the leadership of a political party is tough enough. what'd your leading rival is your brother? the labor party just elected a successor to former prime minister gordon brown. the contest saw ed and david go head to head. david, although he announced his brother's victory, he said he will not serve in his shadow cabinet. we will hear from the winner in a moment. first, we have a part of history. roadis a long, long >> at the age of 45, his political career could well be over could pushed aside by his younger brother, david

milliband declined to serve next to him. >> and needs a clean field to make sure that he is a -- ed needs a clean fill to make sure that he has what he needs to move the party forward. >> the sons of jewish refugees, rauf and marion milliband. when the boys were growing up in the 1960's, 1970's, 1980's, and 1990's, their home was one of the great political homes of north london, a kind of socialist-marxist south laalon. >> someone, i remember meeting

there, a marine who visited the foreign minister of brazil. >> one new year's eve we celebrated, i got them seeing a radical song. we were singing that and, suddenly, i noticed that the only two who had not joined in -- they were quite young -- were edward and david. i still have this memory of them standing underneath the staircase, looking bewildered at these crazies, wondering what on earth was going on. >> but the childhood was not all politics. david loved football. ed love computer games and puzzles. >> i sorted out the rubik's cubes in 20 minutes. >> ed followed his brother

precisely, by doing philosophy in college. where did it got a first, ed got a 2.1. many knew about his semi-famous father. >> wheel had colleagues who were dr. neri followers of rauf and edward. -- who were doctrinary followers of ralph and edward. >> all those children who are socially deprived -- > >> she is an active member of the jews of justice for palestinians. friends have said to me that she has been a bigger influence on the boy's, more hands-on and practical in her politics, then

their late father who was more ideological and theoretical. although, like him, she is still well to the left than either of the boys. she told friends that she has found the last two months a real strain. it would have been easier if they both had become academics rather than politicians. two brothers slugging it out is almost unknown in politics. it will be a long time, surely, before any british politician dares challenge to their sibling again. >> we spoke with the new labor leader after his first speech to his party. >> you talked yesterday about your family background in north london. it was clearly a have the kind of the child appeared >> yes, it was a happy childhood. it was quite a political family. an unusual family with unusual people coming in the door.

but it was also a very warm, warm family environment. >> it was a jewish household. are you a jew? >> yes, i am jewish. >> are you a practicing jew? >> no, i am not a practicing jean-pierre >> why not? >> probably because it was not the tradition -- practicing jew. >> why not? >> probably because it was not the tradition in which our group. in terms of my family history, but i am not a person of religious faith. >> so you do not believe in god? >> i do not believe in god, no. i have great respect for those people who do and i imagine that makes life on earth easier if you do. but i am not the one who believes in god. >> hearing you talk about your family, i wondered whether you

were really ready for the pressure that will come on you now, that will reveal this stuff. on the paper, there was your wife with her hair done -- >> partner. >> are you ready for all that sort of stuff? >> it is aid steep learning curve. but i am relishing it. -- it is a steep learning curve. but by embellishing it. -- but i am relishing it. i do not think it is necessary to get married politically. >> your father said, if you choose a university, i choose a different one from david.

>> did she say that? >> yes. >> no. >> why did you go to the same university as year-old brother? >> i looked up to him. i remember visiting him at university and he seemed to be having a nice time of it. we were both political animals, if you like. we were both interested in politics. i tried to explain this unusual family history that made us the political people that we are. >> so you sort of hero worship him in a way appeared >> . >> no, i looked up to him. that is all. i know what my responsibility is. it is to leave this party. there are a lot of people whose hopes are resting on me.

>> but no one else had to kill off their brothers ambition to do it. >> that is an extreme way of putting it. >> how else would you put it? >> personally, think that david will continue to make a contribution to british politics in one form or another. and it will be an important contribution. as he said to me the time, it would have been wrong for him to tell may, do not stand against me or for me not to stand because my brother happen to be standing. it was the right thing to do. he said at the time, let's have a fair contest and made the best man or woman win. i have a close relationship with louis. the biggest barrier to be standing to the leadership was the fact that david was one to be standing. that was the thing that was holding me back. but, in the end, i concluded that not to stand because he is

standing, accurate -- after you remove all the other reasons, that would have been the wrong thing to do. i had something to say about this party and where it goes. >> everybody says you are a very clever man. they say you can do the rubik's cubes in 90 seconds in one hand. >> not to anymore. >> but you will be following, as leader of the party, and and was very able and very clever, but not comfortable in his own skin. what is the difference between you and gordon brown? >> we are different in many ways. let me speak for myself. i am comfortable in my own skin could i know who i am. i know what i believe. i know why i believe in this party. i understand the scale of change

that this party needs if it helps to get back into power. >> the new leader of britain's labor party, ed milliband. a doctor is banned from practicing medicine in britain. the regulatory medical council said he had given his patients false hope and made exaggerated claims for hopeless trumans. it came to light after a long- running -- hopeless treatments. it came to light after a long- running news investigation. >> will you give that money back? >> no apology from robert tercel. he says he has always seemed to achieve the very best for his patience. >> he treated people badly. he let down the people he was

supposed to be helping. i feel very good about the results today. i am pleased to be able to stand up here and challenge him. >> the closing statement was damning. the chairman said that your misconduct is fundamentally incompatible with being a doctor appeared he said, you have given -- a doctor. he's a, you have given false hopes with exaggerated claims to patients. you have done long lasting harm, if not physically, then financially and emotionally to these patients. back in 2006, news tonight show that the doctor had injected stem cells into patients that were not intended for human use. he had been carrying out

treatment for advanced sell therapeutics, a shadowy -- advanced cell therapeutics, a shadow a company who said they previously ran a company that illegally sold stem cell products to patients. they were still running a stem cell business, allowing patients to believe that they had a high chance of recovery using umbilical cord stem cells of a kind that was not to be used on people at all. we filmed him giving stem cells to this 2-year-old who was brain-damaged by meningitis. these stem cells were only supposed to be used for research tools and were not safe enough to inject into people. after our broadcast, the doctor

said he was stopping all act treatments and taking legal action. he said at told him that those cells were a mistake in delivery. the couple behind act are in the midst of an extradition hearing. and number of patients testified at the gmc hearing, some who were act hearings and others who had gone to dr. tercel independently. he had injected them with other materials that included bovine cells. to do it without the patient's consent was a serious omission. we did discover that he was also sending stem cells over the border to a clinic in antwerp in belgium. we told the belgian authorities

what we had seen and, last year, they gave dr. tercel a five- month suspended sentence for illegal stem cell practice. he is appealing this. steve murphy was one of the ms patients who gave evidence. he handed over 7,000 pounds for his stem cell injections. he is embarrassed about being taken in. >> obviously, it is a huge disappointment. i had gone into it with great expectations and optimism that it might improve my situation, get my life back. it was what i was hoping for. it did not happen. >> experts warn that one ruling onlye doctor from led gm sc scratches the surface. stem cell tourism is a global problem. so many patients are so desperate to take risks and pay

for the small hope of a cure. christmases lettuce at the forefront of stem cells signs. he says real treatments are still many years away. he is just at the beginning of turning research into these potential therapies. how many clinics does he think could be offering stems no treatment before they have been tested and approved? >> the problem seemed to be mainly the far east and russia and possibly india as well. we do not know the exact size, but it could be as many as 700. these companies have been not been named. they string out and come and go. >> patients who used their savings and those of their families and friends on dr. torso's treatments are now pursuing a class-action to get

their money back. >> that is all for this week. from all of us here, goodbye. >> funding for this presentation is made possible by the freeman foundation of new york, stowe, vt., and honolulu, newman's own foundation, the john d. and catherine t. macarthur foundation, and union bank. >> i am julia styles. >> i am ken burns'. >> i am lili taylor. >> public broadcasting as my source for news about the world. >> for intelligent conversation. >> for conversations beyond the sound bites. >> a commitment to journalism. >> for deciding who to vote for. >> public broadcasting as my choice for intelligent connections to my community.

>> union bank has put its global expertise for a wide range of companies. what can we do for you?

>> hi, i'm john davis, and this is motorweek! first up, cadillac turns up the velocity of its new two-door. we test the awesome cts-v coupe. next, down at goss' garage, pat