:00:02. > :00:12.revelation that sparked the Arab Spring.
:00:12. > :00:26.
:00:26. > :00:30.Now, it's time for Show Me The This is Show Me The Money, your
:00:30. > :00:38.weekly guide to who is making the money and what it means for the way
:00:38. > :00:45.we work. With me tonight, the chairman of BA and AA. He helps out
:00:45. > :00:50.at Berkeley's Bank and that is just for starters. Meanwhile, the woman
:00:50. > :00:54.behind nails Inc, and with a well- polished business on -- finger on
:00:54. > :00:58.the business Post, the business editor of the Sunday Telegraph.
:00:58. > :01:02.A strong Europe is in Britain's interests according to David
:01:02. > :01:07.Cameron. He was at a series of meetings to thrash out a solution
:01:07. > :01:14.to the Continent's debt crisis. They want to take three big steps
:01:14. > :01:18.all at once - cancelled part of Greece's debt, shore up Europe's
:01:18. > :01:28.banks, and increase the power of the emergency fund to protect the
:01:28. > :01:32.bigger countries like Italy. This is not exactly an on ambitious
:01:32. > :01:37.agenda we are trying to reach towards. If it is not ambitious
:01:37. > :01:41.enough for the markets. What the markets want to see and know is how
:01:41. > :01:46.do we stop having to go back with these bandied solutions, where we
:01:46. > :01:52.have more and more bail-out funds? And that means going to the
:01:52. > :01:56.fundamentals. The fundamentals mean, for the market, can you have a
:01:56. > :02:00.monetary union without a fiscal union. The most important thing
:02:00. > :02:05.that has happened today is a proposal for a single Treasury for
:02:05. > :02:10.the home of the Eurozone area. It is only by getting to that kind of
:02:10. > :02:13.fundamental solutions -- solution to the problems we have, where the
:02:14. > :02:17.peripheral nations are ordered to put their fiscal house in order,
:02:17. > :02:22.but the markets will be satisfied. So this stuff they have been
:02:22. > :02:26.talking about - the extra firepower for the emergency fund, the shoring
:02:26. > :02:31.up their capital reserves and the banks, probably all essential, but
:02:31. > :02:34.does not come close to answering the fundamental issue?
:02:34. > :02:39.absolutely. The markets will be satisfied for a period and we will
:02:39. > :02:42.be back here again in a few months talking about the same problems.
:02:42. > :02:49.You used to think that Britain should be part of the single
:02:49. > :02:53.currency. Do you still think that? No. I made the fundamental error of
:02:53. > :02:58.believing at the time that we were discussing the UK going into the
:02:58. > :03:03.common currency, that there would be an amount of discipline there,
:03:03. > :03:07.and that the Germans with nature -- nature discipline was applied. What
:03:07. > :03:12.it did was through the cheque book at Greece and Portugal and Ireland.
:03:12. > :03:15.And now they are having to pay the price. I am pleased we were not in
:03:15. > :03:21.their. But why I was for it was because I thought we would get some
:03:21. > :03:25.fiscal discipline, exactly the opposite happened. So, the euro as
:03:25. > :03:30.a straitjacket for all dura's economies? He yes, I just thought
:03:30. > :03:35.it would force governments to work within the fiscal rules. And I
:03:35. > :03:41.think it was the Germans who broke the rules first. You now think that
:03:42. > :03:47.if Britain should not be part of the single currency, in all
:03:47. > :03:53.circumstances, for all time? Yes. I think in my lifetime, in my
:03:53. > :03:57.lifetime I just cannot imagine it. And as we have just said now, there
:03:57. > :04:04.has to be a close to Europe. And I do not think there is any appetite
:04:04. > :04:08.in this country for that. What does this do for people who are running
:04:08. > :04:12.businesses on a daily basis? When you see the political discussions
:04:12. > :04:17.and the indecision on the Continent, dock at her sure business? Does it
:04:17. > :04:24.hurt the businesses you deal with? From a UK business point of view,
:04:24. > :04:28.we are a consumer facing business so it will affect foot fall and
:04:28. > :04:32.customers become nervous of spending money. You have to be able
:04:32. > :04:38.to work in that environment, that climate. How do you manage? We are
:04:38. > :04:46.very lucky, that the tea industry tends to survive downturns. And
:04:46. > :04:51.nail polish has been... Consumers are all too often looking for a
:04:51. > :04:54.pick me up, and beauty survives well. Do you make assumptions of
:04:54. > :04:59.what consumers are now likely to spend? Do you think people will
:04:59. > :05:03.spend less in the next six months? Absolutely. Going into the
:05:03. > :05:06.Christmas period you have to be able to offer great value offers
:05:06. > :05:13.for customers, and you have to tap into the market at what customers
:05:13. > :05:17.are thinking. And be aware of how spending is affected. I was going
:05:17. > :05:20.to ask, what happens if they do not reach an agreement? But from what
:05:20. > :05:24.you were saying it suggests that even if they do, it is not enough.
:05:24. > :05:27.I think they will reach an agreement of some description.
:05:27. > :05:32.Angela Merkel has had to put off the summit agreement because she
:05:32. > :05:35.has to go back to her Parliament to get agreement to that, after the
:05:35. > :05:41.constitutional court made its order that she had to go back more
:05:41. > :05:45.regularly than she had been doing. I'm sure there will be the
:05:45. > :05:51.political need for an agreement, it is absolutely vital. So there will
:05:51. > :05:55.be an agreement. It will not be enough, it will buy some time.
:05:55. > :06:00.for be more bust. A quick flick through some of the essential story
:06:00. > :06:08.she may have missed this week. This is how they are trying to
:06:08. > :06:15.solve bad drive think in Venezuela. With white gloves, they are wagging
:06:15. > :06:23.their fingers at offending motorists.
:06:24. > :06:28.20 years after it was scrapped,... In the old days, Scout's knocked on
:06:28. > :06:35.your door at offering to do things for a small payment. That was
:06:35. > :06:41.abandoned in 1992. And people in Paris who are
:06:41. > :06:46.exhausted from walking their dogs are flocking to sneak bars, her you
:06:46. > :06:51.have to pay to have an that. People behind the idea say it is appealing
:06:51. > :07:01.for those with high-pressure jobs. 45 minutes of sleep will cost you
:07:01. > :07:02.
:07:02. > :07:06.around �22, or 200 French francs, when they come back.
:07:06. > :07:11.Venezuela first. We thought this was a nice example of unusual ways
:07:11. > :07:16.of solving problems. What it shows is about trying to be disruptive,
:07:16. > :07:20.too do something in the market, the market of road safety, in the
:07:20. > :07:25.market that people think, I did not expect that. It is quite
:07:25. > :07:30.interesting. We were talking about it before we came on. If you
:07:30. > :07:33.imagine someone saying, how will I advertise my airline? By saying it
:07:33. > :07:39.will be very cheap. You might have to pay for the toilets and why do
:07:39. > :07:45.you not stand up. Everyone would think you were mad. And how about
:07:45. > :07:51.having a spread, where you would say, half people -- half of people
:07:51. > :07:55.will hate this? Marmite has promoted the idea really well. It
:07:55. > :08:01.is about the idea of disrupting how people think about what you were
:08:01. > :08:05.doing. And I think that the clowns, I would have thought if you were
:08:05. > :08:11.driving along and use of a clown, you would crash into the car in
:08:11. > :08:15.front. That is a whole other thing that we might need to check up on!
:08:15. > :08:22.And solving problems in unusual ways. Have you had to do that?
:08:22. > :08:26.Certainly. And I think when you are a relatively young company or a
:08:26. > :08:31.start-up company, having to stand out from the crowd and get yourself
:08:31. > :08:35.noticed is vital. I do not imagine you could have clowns guiding in
:08:35. > :08:41.aeroplanes when they come to land at Edinburgh or Heathrow. I hope
:08:41. > :08:45.not! And I hope people do not think we have plans to do that! But
:08:45. > :08:54.disruptive technology is a thing that is quite amazing. Accompany I
:08:54. > :09:00.shared a few years ago, it invented a brand new way... It rendered just
:09:00. > :09:10.about every other process in the world related to that redundant.
:09:10. > :09:12.
:09:12. > :09:15.Were you ever in the Scouts? Yes. I think a bog is worth a shilling, 5p.
:09:15. > :09:20.Is this a way of teaching youngsters about the world of work?
:09:20. > :09:25.Yes, I think so. It has everything. It is entrepreneurial, you have to
:09:25. > :09:30.charge what you can and what people will give. It is marketing, you
:09:30. > :09:34.have to market yourself. There is so little in schools taught about
:09:34. > :09:39.business, and the way that business runs. I think it is a great idea. I
:09:39. > :09:45.certainly learned a lot. I had doors slammed in my face, I cleaned
:09:45. > :09:49.cars, I did all sorts of things. What was the worst thing? Let me
:09:49. > :09:55.think. Having a door slammed in my face probably. It does not do a lot
:09:55. > :10:00.for your self-esteem. Were either of you in the Scouts and Guides?
:10:00. > :10:06.Yes, it is fantastic to teach young people are an alternative to school
:10:06. > :10:10.as well. What is the worst job you do it I'd do not think we did that.
:10:10. > :10:15.The Brownies was all about has been generally all nice to people. You
:10:15. > :10:21.just had to do nice things. It was not about earning money. There is a
:10:21. > :10:28.lot of talk about this being a voluntary and community based thing.
:10:28. > :10:31.I agree -- I agree. My son is in the beavers. My daughter is 11 and
:10:31. > :10:35.was not in the Brownies or their guides. But my daughter knows the
:10:35. > :10:39.kings and queens of England through her history lessons but has never
:10:39. > :10:44.met a business person, and has only been told about the notion of
:10:44. > :10:48.entrepreneurial spirit. I think it is a great idea to bring this in.
:10:48. > :10:52.And I hope that my son will be able to go, maybe not to get doors
:10:52. > :10:57.slammed in his face, but clean a few cars and maybe get some money
:10:57. > :11:01.in his pocket. So many businesses are started by people who were
:11:01. > :11:07.thinking about it at a very young age. May be at university or even
:11:07. > :11:14.at school. I think it is really important. In this age, there is an
:11:14. > :11:21.anti-business sentiment. I think it is a great idea. For the Parisian
:11:21. > :11:28.sleek bars. A quick thought about how to deal with stress. Well, work
:11:28. > :11:37.a little less hard! Paddy Ashdown apparently did it in the back of
:11:37. > :11:40.cars for 10 minutes, went to sleep. When I was running my business, a
:11:40. > :11:44.used to try not to have any appointments on a Friday because I
:11:44. > :11:48.wanted a day to think. I think people do not think enough. They
:11:48. > :11:55.are in action all the time, they are travelling. I think sometimes
:11:55. > :12:00.it is a good idea to think. Of course, you don't. Appointments
:12:00. > :12:09.happen. But in theory, you should not be booked up every day. Friday
:12:09. > :12:12.is a nice day to do it. Her yes. Let's talk about the Airports.
:12:12. > :12:19.Heathrow, first of all. It has ground to a halt at various points
:12:19. > :12:26.last year. Have you got more de- icer Int? We were never short of
:12:26. > :12:31.de-icer?! It was a combination of this no wonder frost. We took it
:12:31. > :12:38.very seriously. It was not our finest hour. We accepted that, and
:12:38. > :12:44.we got a report done that we actually publish. It was put on our
:12:44. > :12:48.website. And there were 30 or 40 points, may need to do with
:12:49. > :12:52.communication with passengers. I went round the airport during that
:12:52. > :12:56.period. The real issue was that we did not know what was happening, we
:12:56. > :13:00.have to get better at. But we also have to get better at co-ordinating
:13:00. > :13:04.the baggage handlers and getting this no out from underneath the
:13:04. > :13:09.aircraft. We have had an awful lot of work put in training, we have
:13:09. > :13:12.had scenario planning, we have done a lot. We are hoping we will not
:13:12. > :13:18.have such a bad combination of weather this year. What we are
:13:18. > :13:23.better prepared. Did you introduce yourself to passengers? I did.
:13:23. > :13:27.bet they were not shy in letting you know what they thought.
:13:27. > :13:30.Surprisingly, they understood the issue. They understood that the
:13:30. > :13:40.weather was appalling. What they did not understand was why people
:13:40. > :13:41.
:13:41. > :13:45.were not telling them anything. That was the real issue. We have
:13:45. > :13:49.somebody who is absolutely responsible. It is co-ordination
:13:49. > :13:54.between the airlines, with the trafficker. People actually getting
:13:54. > :13:58.to the airport. A lot of this stuff is outside our control. But people
:13:58. > :14:02.are not interested in that. They want to get on their holidays, so
:14:02. > :14:09.we had sat down with everybody and asked how we will make it work
:14:09. > :14:13.Edinburgh airport is up for sale because the competition watchdog
:14:13. > :14:17.said you had to sell Glasgow or Edinburgh and everyone thought she
:14:17. > :14:21.would sell Glasgow. It was a tough decision. We decided we would sell
:14:21. > :14:25.Edinburgh because it is a growing airport and in the circumstances
:14:25. > :14:31.that we had to sell one in these economic times it was the better
:14:31. > :14:35.airport to sell. Steve Ridgeway the boss of Virgin Airlines was in the
:14:35. > :14:39.seat last week and was talking about Heathrow been a bit cramped
:14:39. > :14:42.and it would stay that way because it is not getting the extra runway
:14:42. > :14:48.that you and he and the other airlines wanted. Are we stuck with
:14:48. > :14:52.that? It was in the Conservative manifesto, there would be no more
:14:52. > :14:56.runway capacity in the south-east, so we have to accept it is
:14:56. > :15:00.government policy. We think it is wrong, we have to accept it. And we
:15:00. > :15:05.have to work at being more efficient in the airport, but it is
:15:05. > :15:09.full. We are going to lose out to Charles de Gaulle, she poll,
:15:10. > :15:13.Frankfurt. We are not going to have the flight to China and India and
:15:13. > :15:22.South America that these airports have and London will lose out. What
:15:22. > :15:26.we voted for is for us to lose a share of the aviation market. And
:15:26. > :15:31.in a time when we need economic growth, the aviation industry is a
:15:31. > :15:35.driver of growth, so that is a tragedy. You are politically well-
:15:35. > :15:40.connected, particularly with the conservative side of the political
:15:40. > :15:44.argument. When did the Conservative Party becomes the party opposed to
:15:44. > :15:48.growth in one of Britain's premier industries? A I think it was at a
:15:48. > :15:52.period before the last election. I think there was a view that this
:15:53. > :15:58.was a very green policy and therefore they thought that this
:15:58. > :16:03.would be a vote winner. I don't know what the master Nations of the
:16:03. > :16:08.Conservative Party are, but unless you stop people flying around the
:16:08. > :16:11.world from Frankfurt or Charles de Gaulle, it has no affect on the
:16:11. > :16:16.climate the tall, because more flying will take place, but just
:16:16. > :16:20.not at Heathrow. The issue for Heathrow is that it is full and you
:16:20. > :16:24.would not have it there if you were starting afresh but it is a hub
:16:24. > :16:30.airport. We have to make a decision and I think the decision would be
:16:30. > :16:36.to build a third runway. I think looking 30 or 40 years down the
:16:36. > :16:41.line, you have to start looking for something else. Do you go through
:16:41. > :16:45.like all the other passengers? could do, but I imagine there will
:16:45. > :16:50.be some horrible journalist lurking around or somebody with a camera
:16:50. > :16:53.seen me go through the other way, so I always go through like all the
:16:53. > :16:59.other passengers and it teaches me a bit about what is happening in
:16:59. > :17:04.the airport. Has anyone ever complained about being taking our
:17:04. > :17:09.shoes off? Has anyone ever explain the there? Some of it is a
:17:09. > :17:12.requirement of the government. They have the Government's standards and
:17:12. > :17:16.we have to conform to it. I think we'll get better technology that
:17:16. > :17:20.doesn't make us do that, and I think that's right, but we have to
:17:20. > :17:24.comply with these regulations, it is not just Heathrow making it
:17:24. > :17:28.difficult for people. Sir Nigel Rudd, you will see him in an
:17:28. > :17:32.airport queue me. How much should we rely on small companies to
:17:32. > :17:36.revive from the economy? A report from the CBI is expected to say
:17:36. > :17:41.quite a lot, but they need more help and money from the banks and
:17:41. > :17:46.other sources of finance. When you started your business, where did
:17:46. > :17:50.you get the funding from? Private individuals. Because you went to
:17:50. > :17:55.the banks and they slammed the door in your face? When we first started
:17:55. > :18:00.we got an unsecured loan from a bank to tide us over what we set up
:18:00. > :18:03.the business, but then we went out to private individuals. And those
:18:03. > :18:07.individuals who back you, are they still backing you or have they had
:18:07. > :18:11.their money back and have retired happy? They are still backing us.
:18:11. > :18:17.How big a problem is it that so many businesses say they cannot get
:18:17. > :18:21.the money that they want? For the right idea there is always money
:18:21. > :18:27.out there and I think a lot of businesses start out, as we did,
:18:27. > :18:30.with private individuals and then go out and get other money. It is
:18:30. > :18:34.difficult for venture capitalists to back a start-up because they
:18:34. > :18:38.like to come in at the second or third stage, so it is about trying
:18:38. > :18:41.to find individuals when you start. It is an awful lot to ask
:18:41. > :18:49.entrepreneurs and small businesses that they will be the engine of
:18:49. > :18:55.recovery. BT's, and the shoot in the environment that we are in, the
:18:55. > :18:57.notion of starting now -- then notion of starting now is a
:18:57. > :19:01.difficult one. The whole argument from the banks about whether they
:19:01. > :19:08.are lending enough, the banks are say there is not enough demand out
:19:08. > :19:13.there for us to lend to. At one level, you would not go to banks or
:19:13. > :19:16.finance because they are not the most efficient way and you would go
:19:16. > :19:20.to venture capitalists as your first start-up. But the demand will
:19:20. > :19:25.not be there until we see growth ticking back into the economy, that
:19:26. > :19:32.demand will be very low. You what chairman of the Business Growth
:19:32. > :19:36.Fund. In 20 seconds, what is it and how to get the money? It is �2.5
:19:37. > :19:40.billion that have been put in by the Bank -- banks and is for
:19:40. > :19:46.investing in small companies, not start-ups, but companies up and
:19:47. > :19:50.running at need more capital, permanent capital to expand. You
:19:50. > :19:54.can look at our website. We are very keen to do business and we
:19:54. > :19:58.have a lot of companies and we have seen a lot of really good small
:19:58. > :20:03.companies come to us and that is encouraging as well in all sorts of
:20:03. > :20:09.areas like media to manufacturing. Look, website and put in an
:20:09. > :20:12.application. Thanks to all of you. The Chinese economy has slowed down
:20:12. > :20:15.and is only growing at 9% a year, but when we think about doing
:20:15. > :20:19.business with China we think about going over there or buying stuff
:20:19. > :20:27.made over there. The next new thing for business could be lots of
:20:27. > :20:32.Chinese people coming over here. That is as tourists. If we find out
:20:33. > :20:36.how the shops are getting ready for them. -- Lucy Barnett is going to
:20:36. > :20:41.find out how the shops are getting ready for them. London's West End
:20:41. > :20:44.has always attracted the more discerning shopper. And that luxury
:20:44. > :20:51.stores, there has long been an appeal to international visitors.
:20:51. > :20:55.But at the moment it is the Chinese tourists who are splashing the cash.
:20:55. > :20:59.Since 2008 there has been a cool 450 % growth in Chinese spending
:20:59. > :21:04.instruct -- shops like these. In less than four years' time, the
:21:04. > :21:08.Chinese will be the world's largest consumer of luxury goods. If you or
:21:08. > :21:12.I were to go on a big shopping spree we would spend on average
:21:12. > :21:17.about �120 per trip, when the Chinese come to town, they are
:21:17. > :21:22.spending at least �800 a time. have become more similar to us,
:21:22. > :21:25.meaning they have a lot of class variation. China used to be one of
:21:25. > :21:28.the most egalitarian societies on the planet but the problem was
:21:28. > :21:34.everybody was relatively poor and had the same amount of nothing. Now
:21:34. > :21:38.it has become one of the most unequal societies in the world, and
:21:38. > :21:42.there are lots of people in between. On the one hand, China has
:21:42. > :21:48.desperately poor people in hundreds of millions but also a large and
:21:48. > :21:52.growing middle-class. That middle- class ones the same things we want.
:21:52. > :21:59.This sterling silver ice bucket. How can British stores capitalise
:21:59. > :22:02.on that kind of spending power? are advertising in far eastern
:22:02. > :22:09.locations and we take roadshows to different parts of the world. We
:22:09. > :22:16.were in Kuala Lumpur last week, doing an exhibition there. Because
:22:16. > :22:21.we are a small company and very specialised, the best way for us to
:22:21. > :22:26.advertises to get people to come and pick up the product, feel, see,
:22:26. > :22:29.touch, get to know the quality and then we can explain it to them.
:22:29. > :22:33.Some of London's larger department stores have employed Mandarin
:22:33. > :22:37.speaking assistance to help Chinese shoppers make the special purchases.
:22:37. > :22:47.And some businesses have installed machines that except the Chinese
:22:47. > :23:01.
:23:01. > :23:06.Here at the Ritz they have seen a huge rise in a number of Chinese
:23:06. > :23:09.guests staying over the last couple of years. With me Steven Vauxhall,
:23:09. > :23:15.the managing director, who recently installed the Chinese union pay
:23:15. > :23:18.terminals. Must have been a bit of a no poet -- Brega. Completely. We
:23:18. > :23:25.have seen charlie increase threefold from China in the last
:23:25. > :23:29.couple of years, so to have union Pay installed was the right
:23:29. > :23:33.direction. We are keen to get lots of tourists in, competing with
:23:33. > :23:38.Paris, Rome, Madrid. What can the government do to help us get the
:23:38. > :23:42.Chinese tourists in? The government has to help us out. The visa and
:23:42. > :23:47.travel restrictions imposed on the Chinese market are terrible. We are
:23:47. > :23:51.crying out for business. The hospitality industry contributes
:23:51. > :23:56.billions. So, as wealthy Chinese tourists take the place of
:23:56. > :24:04.overspend Westerners on London's most exclusive areas, shops and
:24:04. > :24:07.hotels must learn to accommodate their every need. If your business
:24:07. > :24:13.is hunger for cash, you might be interested in the next guest. John
:24:13. > :24:16.Jenkins finance firms last year. Or you could do what Sally pressure