Episode 48 Show Me the Money

revelation that sparked the Arab Spring.

Now, it's time for Show Me The This is Show Me The Money, your

weekly guide to who is making the money and what it means for the way

we work. With me tonight, the chairman of BA and AA. He helps out

at Berkeley's Bank and that is just for starters. Meanwhile, the woman

behind nails Inc, and with a well- polished business on -- finger on

the business Post, the business editor of the Sunday Telegraph.

A strong Europe is in Britain's interests according to David

Cameron. He was at a series of meetings to thrash out a solution

to the Continent's debt crisis. They want to take three big steps

all at once - cancelled part of Greece's debt, shore up Europe's

banks, and increase the power of the emergency fund to protect the

bigger countries like Italy. This is not exactly an on ambitious

agenda we are trying to reach towards. If it is not ambitious

enough for the markets. What the markets want to see and know is how

do we stop having to go back with these bandied solutions, where we

have more and more bail-out funds? And that means going to the

fundamentals. The fundamentals mean, for the market, can you have a

monetary union without a fiscal union. The most important thing

that has happened today is a proposal for a single Treasury for

the home of the Eurozone area. It is only by getting to that kind of

fundamental solutions -- solution to the problems we have, where the

peripheral nations are ordered to put their fiscal house in order,

but the markets will be satisfied. So this stuff they have been

talking about - the extra firepower for the emergency fund, the shoring

up their capital reserves and the banks, probably all essential, but

does not come close to answering the fundamental issue?

absolutely. The markets will be satisfied for a period and we will

be back here again in a few months talking about the same problems.

You used to think that Britain should be part of the single

currency. Do you still think that? No. I made the fundamental error of

believing at the time that we were discussing the UK going into the

common currency, that there would be an amount of discipline there,

and that the Germans with nature -- nature discipline was applied. What

it did was through the cheque book at Greece and Portugal and Ireland.

And now they are having to pay the price. I am pleased we were not in

their. But why I was for it was because I thought we would get some

fiscal discipline, exactly the opposite happened. So, the euro as

a straitjacket for all dura's economies? He yes, I just thought

it would force governments to work within the fiscal rules. And I

think it was the Germans who broke the rules first. You now think that

if Britain should not be part of the single currency, in all

circumstances, for all time? Yes. I think in my lifetime, in my

lifetime I just cannot imagine it. And as we have just said now, there

has to be a close to Europe. And I do not think there is any appetite

in this country for that. What does this do for people who are running

businesses on a daily basis? When you see the political discussions

and the indecision on the Continent, dock at her sure business? Does it

hurt the businesses you deal with? From a UK business point of view,

we are a consumer facing business so it will affect foot fall and

customers become nervous of spending money. You have to be able

to work in that environment, that climate. How do you manage? We are

very lucky, that the tea industry tends to survive downturns. And

nail polish has been... Consumers are all too often looking for a

pick me up, and beauty survives well. Do you make assumptions of

what consumers are now likely to spend? Do you think people will

spend less in the next six months? Absolutely. Going into the

Christmas period you have to be able to offer great value offers

for customers, and you have to tap into the market at what customers

are thinking. And be aware of how spending is affected. I was going

to ask, what happens if they do not reach an agreement? But from what

you were saying it suggests that even if they do, it is not enough.

I think they will reach an agreement of some description.

Angela Merkel has had to put off the summit agreement because she

has to go back to her Parliament to get agreement to that, after the

constitutional court made its order that she had to go back more

regularly than she had been doing. I'm sure there will be the

political need for an agreement, it is absolutely vital. So there will

be an agreement. It will not be enough, it will buy some time.

for be more bust. A quick flick through some of the essential story

she may have missed this week. This is how they are trying to

solve bad drive think in Venezuela. With white gloves, they are wagging

their fingers at offending motorists.

20 years after it was scrapped,... In the old days, Scout's knocked on

your door at offering to do things for a small payment. That was

abandoned in 1992. And people in Paris who are

exhausted from walking their dogs are flocking to sneak bars, her you

have to pay to have an that. People behind the idea say it is appealing

for those with high-pressure jobs. 45 minutes of sleep will cost you

around �22, or 200 French francs, when they come back.

Venezuela first. We thought this was a nice example of unusual ways

of solving problems. What it shows is about trying to be disruptive,

too do something in the market, the market of road safety, in the

market that people think, I did not expect that. It is quite

interesting. We were talking about it before we came on. If you

imagine someone saying, how will I advertise my airline? By saying it

will be very cheap. You might have to pay for the toilets and why do

you not stand up. Everyone would think you were mad. And how about

having a spread, where you would say, half people -- half of people

will hate this? Marmite has promoted the idea really well. It

is about the idea of disrupting how people think about what you were

doing. And I think that the clowns, I would have thought if you were

driving along and use of a clown, you would crash into the car in

front. That is a whole other thing that we might need to check up on!

And solving problems in unusual ways. Have you had to do that?

Certainly. And I think when you are a relatively young company or a

start-up company, having to stand out from the crowd and get yourself

noticed is vital. I do not imagine you could have clowns guiding in

aeroplanes when they come to land at Edinburgh or Heathrow. I hope

not! And I hope people do not think we have plans to do that! But

disruptive technology is a thing that is quite amazing. Accompany I

shared a few years ago, it invented a brand new way... It rendered just

about every other process in the world related to that redundant.

Were you ever in the Scouts? Yes. I think a bog is worth a shilling, 5p.

Is this a way of teaching youngsters about the world of work?

Yes, I think so. It has everything. It is entrepreneurial, you have to

charge what you can and what people will give. It is marketing, you

have to market yourself. There is so little in schools taught about

business, and the way that business runs. I think it is a great idea. I

certainly learned a lot. I had doors slammed in my face, I cleaned

cars, I did all sorts of things. What was the worst thing? Let me

think. Having a door slammed in my face probably. It does not do a lot

for your self-esteem. Were either of you in the Scouts and Guides?

Yes, it is fantastic to teach young people are an alternative to school

as well. What is the worst job you do it I'd do not think we did that.

The Brownies was all about has been generally all nice to people. You

just had to do nice things. It was not about earning money. There is a

lot of talk about this being a voluntary and community based thing.

I agree -- I agree. My son is in the beavers. My daughter is 11 and

was not in the Brownies or their guides. But my daughter knows the

kings and queens of England through her history lessons but has never

met a business person, and has only been told about the notion of

entrepreneurial spirit. I think it is a great idea to bring this in.

And I hope that my son will be able to go, maybe not to get doors

slammed in his face, but clean a few cars and maybe get some money

in his pocket. So many businesses are started by people who were

thinking about it at a very young age. May be at university or even

at school. I think it is really important. In this age, there is an

anti-business sentiment. I think it is a great idea. For the Parisian

sleek bars. A quick thought about how to deal with stress. Well, work

a little less hard! Paddy Ashdown apparently did it in the back of

cars for 10 minutes, went to sleep. When I was running my business, a

used to try not to have any appointments on a Friday because I

wanted a day to think. I think people do not think enough. They

are in action all the time, they are travelling. I think sometimes

it is a good idea to think. Of course, you don't. Appointments

happen. But in theory, you should not be booked up every day. Friday

is a nice day to do it. Her yes. Let's talk about the Airports.

Heathrow, first of all. It has ground to a halt at various points

last year. Have you got more de- icer Int? We were never short of

de-icer?! It was a combination of this no wonder frost. We took it

very seriously. It was not our finest hour. We accepted that, and

we got a report done that we actually publish. It was put on our

website. And there were 30 or 40 points, may need to do with

communication with passengers. I went round the airport during that

period. The real issue was that we did not know what was happening, we

have to get better at. But we also have to get better at co-ordinating

the baggage handlers and getting this no out from underneath the

aircraft. We have had an awful lot of work put in training, we have

had scenario planning, we have done a lot. We are hoping we will not

have such a bad combination of weather this year. What we are

better prepared. Did you introduce yourself to passengers? I did.

bet they were not shy in letting you know what they thought.

Surprisingly, they understood the issue. They understood that the

weather was appalling. What they did not understand was why people

were not telling them anything. That was the real issue. We have

somebody who is absolutely responsible. It is co-ordination

between the airlines, with the trafficker. People actually getting

to the airport. A lot of this stuff is outside our control. But people

are not interested in that. They want to get on their holidays, so

we had sat down with everybody and asked how we will make it work

Edinburgh airport is up for sale because the competition watchdog

said you had to sell Glasgow or Edinburgh and everyone thought she

would sell Glasgow. It was a tough decision. We decided we would sell

Edinburgh because it is a growing airport and in the circumstances

that we had to sell one in these economic times it was the better

airport to sell. Steve Ridgeway the boss of Virgin Airlines was in the

seat last week and was talking about Heathrow been a bit cramped

and it would stay that way because it is not getting the extra runway

that you and he and the other airlines wanted. Are we stuck with

that? It was in the Conservative manifesto, there would be no more

runway capacity in the south-east, so we have to accept it is

government policy. We think it is wrong, we have to accept it. And we

have to work at being more efficient in the airport, but it is

full. We are going to lose out to Charles de Gaulle, she poll,

Frankfurt. We are not going to have the flight to China and India and

South America that these airports have and London will lose out. What

we voted for is for us to lose a share of the aviation market. And

in a time when we need economic growth, the aviation industry is a

driver of growth, so that is a tragedy. You are politically well-

connected, particularly with the conservative side of the political

argument. When did the Conservative Party becomes the party opposed to

growth in one of Britain's premier industries? A I think it was at a

period before the last election. I think there was a view that this

was a very green policy and therefore they thought that this

would be a vote winner. I don't know what the master Nations of the

Conservative Party are, but unless you stop people flying around the

world from Frankfurt or Charles de Gaulle, it has no affect on the

climate the tall, because more flying will take place, but just

not at Heathrow. The issue for Heathrow is that it is full and you

would not have it there if you were starting afresh but it is a hub

airport. We have to make a decision and I think the decision would be

to build a third runway. I think looking 30 or 40 years down the

line, you have to start looking for something else. Do you go through

like all the other passengers? could do, but I imagine there will

be some horrible journalist lurking around or somebody with a camera

seen me go through the other way, so I always go through like all the

other passengers and it teaches me a bit about what is happening in

the airport. Has anyone ever complained about being taking our

shoes off? Has anyone ever explain the there? Some of it is a

requirement of the government. They have the Government's standards and

we have to conform to it. I think we'll get better technology that

doesn't make us do that, and I think that's right, but we have to

comply with these regulations, it is not just Heathrow making it

difficult for people. Sir Nigel Rudd, you will see him in an

airport queue me. How much should we rely on small companies to

revive from the economy? A report from the CBI is expected to say

quite a lot, but they need more help and money from the banks and

other sources of finance. When you started your business, where did

you get the funding from? Private individuals. Because you went to

the banks and they slammed the door in your face? When we first started

we got an unsecured loan from a bank to tide us over what we set up

the business, but then we went out to private individuals. And those

individuals who back you, are they still backing you or have they had

their money back and have retired happy? They are still backing us.

How big a problem is it that so many businesses say they cannot get

the money that they want? For the right idea there is always money

out there and I think a lot of businesses start out, as we did,

with private individuals and then go out and get other money. It is

difficult for venture capitalists to back a start-up because they

like to come in at the second or third stage, so it is about trying

to find individuals when you start. It is an awful lot to ask

entrepreneurs and small businesses that they will be the engine of

recovery. BT's, and the shoot in the environment that we are in, the

notion of starting now -- then notion of starting now is a

difficult one. The whole argument from the banks about whether they

are lending enough, the banks are say there is not enough demand out

there for us to lend to. At one level, you would not go to banks or

finance because they are not the most efficient way and you would go

to venture capitalists as your first start-up. But the demand will

not be there until we see growth ticking back into the economy, that

demand will be very low. You what chairman of the Business Growth

Fund. In 20 seconds, what is it and how to get the money? It is �2.5

billion that have been put in by the Bank -- banks and is for

investing in small companies, not start-ups, but companies up and

running at need more capital, permanent capital to expand. You

can look at our website. We are very keen to do business and we

have a lot of companies and we have seen a lot of really good small

companies come to us and that is encouraging as well in all sorts of

areas like media to manufacturing. Look, website and put in an

application. Thanks to all of you. The Chinese economy has slowed down

and is only growing at 9% a year, but when we think about doing

business with China we think about going over there or buying stuff

made over there. The next new thing for business could be lots of

Chinese people coming over here. That is as tourists. If we find out

how the shops are getting ready for them. -- Lucy Barnett is going to

find out how the shops are getting ready for them. London's West End

has always attracted the more discerning shopper. And that luxury

stores, there has long been an appeal to international visitors.

But at the moment it is the Chinese tourists who are splashing the cash.

Since 2008 there has been a cool 450 % growth in Chinese spending

instruct -- shops like these. In less than four years' time, the

Chinese will be the world's largest consumer of luxury goods. If you or

I were to go on a big shopping spree we would spend on average

about �120 per trip, when the Chinese come to town, they are

spending at least �800 a time. have become more similar to us,

meaning they have a lot of class variation. China used to be one of

the most egalitarian societies on the planet but the problem was

everybody was relatively poor and had the same amount of nothing. Now

it has become one of the most unequal societies in the world, and

there are lots of people in between. On the one hand, China has

desperately poor people in hundreds of millions but also a large and

growing middle-class. That middle- class ones the same things we want.

This sterling silver ice bucket. How can British stores capitalise

on that kind of spending power? are advertising in far eastern

locations and we take roadshows to different parts of the world. We

were in Kuala Lumpur last week, doing an exhibition there. Because

we are a small company and very specialised, the best way for us to

advertises to get people to come and pick up the product, feel, see,

touch, get to know the quality and then we can explain it to them.

Some of London's larger department stores have employed Mandarin

speaking assistance to help Chinese shoppers make the special purchases.

And some businesses have installed machines that except the Chinese

Here at the Ritz they have seen a huge rise in a number of Chinese

guests staying over the last couple of years. With me Steven Vauxhall,

the managing director, who recently installed the Chinese union pay

terminals. Must have been a bit of a no poet -- Brega. Completely. We

have seen charlie increase threefold from China in the last

couple of years, so to have union Pay installed was the right

direction. We are keen to get lots of tourists in, competing with

Paris, Rome, Madrid. What can the government do to help us get the

Chinese tourists in? The government has to help us out. The visa and

travel restrictions imposed on the Chinese market are terrible. We are

crying out for business. The hospitality industry contributes

billions. So, as wealthy Chinese tourists take the place of

overspend Westerners on London's most exclusive areas, shops and

hotels must learn to accommodate their every need. If your business

is hunger for cash, you might be interested in the next guest. John

Jenkins finance firms last year. Or you could do what Sally pressure