The parliamentary row over phone hacking grows in importance hour by hour. Rafael Behr, leader writer for the Observer, believes that as yet the coalition government has withstood the pressure. Julian Glover, chief leader writer for the Guardian, says that David Cameron is stubborn enough to hang on to his head of communications, Andy Coulson, the more he is attacked.
Presenter Allegra Stratton asks if Labour is really being true to its principles in opposing the bill to introduce a system of alternative voting. Rafael says it's good politics to oppose and that it was surprising how the first-past-the-post system brought about a coalition government.
Finally, they discuss the power of the banks: this week investment banker Bob Diamond has become head of Barclays, while Stephen Green of HSBC has left to join the government. He will have a say in the review of the industry. Julian explains that politicians still want to protect high street banks from the dangers of the speculative markets. But he points out that if government tries to split up banks such as HSBC and Barclays, they will just move their headquarters abroad.
