:00:33. > :00:40.This is Show Me The Money - your weekly guide to who's making the
:00:40. > :00:44.cash, and how it works. With me Digby Jones, banging the drum for
:00:44. > :00:47.British business. Former Trade Minister, now an advise tore the
:00:47. > :00:50.most gold-plated of British names. The American travel entrepreneur,
:00:50. > :00:55.Barbara Cassani, lives over there, but works over here. She will tell
:00:55. > :00:59.us why this is the place to do business. Ruth Lea has spepbtd her
:00:59. > :01:04.working life talking about and helping to run the economy. She
:01:04. > :01:09.advises the Arbuthnot Banking Group. The cash machine is standing by.
:01:09. > :01:13.The wheelbarrows are at the ready. Europe's Finance Ministers will say
:01:13. > :01:19.tomorrow they will give Greece a second bail out. That is �100,000
:01:20. > :01:25.of new loans, so Greece can pay back some of its existing lenders.
:01:25. > :01:30.Ruth Lea - why give Greece any money at all? It should be the end
:01:30. > :01:34.game now. The Greek my is in such a bad state and its deficits and debt
:01:34. > :01:42.is so enormous that by doing this you are not solving any problems at
:01:42. > :01:47.all. On the economy, it is almost tanking at the moment. GDP fell 7%.
:01:47. > :01:52.Unemployment is 22-23%. This is unsustainable. More to the point,
:01:52. > :01:56.it has very little competitiveness. It probably needs a devaluation of
:01:56. > :02:02.30-40% to get some go into this economy so it can grow. What is the
:02:02. > :02:07.point of giving it money, saying, stay where you are, keep up the
:02:07. > :02:12.austerity. It will not solve any of Greece's problems. This is just
:02:12. > :02:17.continuing the madness? It is sticking plaster time. And the
:02:17. > :02:23.indebtedness of Greece is so huge, it cannot pay these debts off. It
:02:23. > :02:27.is time for a reality check. Let it devalue, let it get some
:02:27. > :02:31.competitiveness back into the economy. I actually think, giving
:02:31. > :02:36.them the money at the moment is going to solve nothing. It's not
:02:36. > :02:41.going to be good for the Greek people, because they'll have to
:02:41. > :02:46.take enormous austerity. Secondly, Ruth is right, it will not grow the
:02:46. > :02:50.economy. We'll be here again. The northern European countries, where
:02:50. > :02:55.you, where there are democratically elected people managing a default
:02:55. > :02:58.in Greece, because if banks take a haircut, which they are, but a
:02:58. > :03:03.default, secondly Greece is being told what to do by another country.
:03:04. > :03:07.The two things they say they will not have, which is a transfer of
:03:07. > :03:11.sovereignty or managed default, they are having both. At the end of
:03:11. > :03:15.the day the Greek people will have an awful time for the next ten
:03:15. > :03:19.years and not solve the issue. do we have the Greek Prime Minister
:03:19. > :03:23.flying into Brussels saying thank you very much? They are all
:03:23. > :03:29.democratically elected people. The Greek one is not at the moment. The
:03:29. > :03:32.problem is they have got to be seen to do something. The thing to be
:03:32. > :03:37.done would actually be to get Greece into a position where, at
:03:37. > :03:41.some point in the future, they can earn enough money as a nation to
:03:41. > :03:44.pay down some debt. I don't see it happening because they give them
:03:44. > :03:48.money now. These comments coming in from the American Treasury
:03:48. > :03:52.secretary. This is a very strong and very difficult package of
:03:52. > :03:57.reforms, deserving of support of the international community and the
:03:57. > :04:01.IMF, the United States will encourage the IMF to support this
:04:02. > :04:06.agreement. Barbara, of course this has been felt on the ground
:04:06. > :04:11.economically. Among the companies you work with you are on the board
:04:11. > :04:17.of Air Berlin. It has noticed the impact of this? Yes, both from the
:04:17. > :04:21.US perspective as well as looking at it from a country like Germany,
:04:21. > :04:25.it's all about how consumers feel and how much confidence people have
:04:26. > :04:30.in making decisions in going forward. Looking at it from say the
:04:30. > :04:36.US, if Europe falls apart, it's a particularly frightening prospect.
:04:36. > :04:41.When you are sitting in Germany you may still have a job, you may have
:04:41. > :04:49.everything fine. It feels uncertain. Neither things are good.
:04:49. > :04:54.outsiders, to nations in China, the countries Europe is going to asking
:04:54. > :04:58.for help to them this looks like a disorganised row? It takes them
:04:58. > :05:04.wonder what happens next, what happens to Spain, to Portugal, et
:05:04. > :05:09.cetera. It would be best for Europe, as a whole, if it could be settled,
:05:09. > :05:14.but that may or may not be possible. Ruth says this may not be the
:05:14. > :05:18.settlement - it suggests there might be more to do? Greece is not
:05:18. > :05:23.Argentina. It worked well for them to take the devaluation, et cetera.
:05:23. > :05:27.It is part of a bigger entity. There are similarities and
:05:27. > :05:32.dissimilarities. That brings me on to another point. We have talked
:05:32. > :05:37.about Greece, you touched on other eurozone countries weak as well.
:05:37. > :05:41.It's not just Greece uncompetitive, you could argue that Portugal and
:05:41. > :05:46.spaib is, possibly Ireland. They have actually got some export
:05:46. > :05:51.industries as well. The real problem of the eurozone is you have
:05:51. > :05:56.a competitive northern countries, Germany, the Netherlands, Finland
:05:56. > :05:59.and you have this sudden string of countries which need a 40%
:05:59. > :06:04.devaluation in order to be competitive with Germany when you
:06:04. > :06:07.are in a single currency. That is the fundamental flaw. It's the
:06:07. > :06:15.fundamental problem of the eurozone. If you were Ayoub Salangi telling
:06:16. > :06:20.the Scottish people, if you have -- If you wereal election Salmond
:06:20. > :06:25.telling the Scottish people either have the pound or the euro, think
:06:25. > :06:31.of this, you have the position Ruth described having to take it on
:06:31. > :06:36.interest rates, exchange rates, the whole thing to suit the competitive
:06:36. > :06:40.big country. Germany runs the show. They will say, we'll have the pound,
:06:40. > :06:45.England will run the show. If it is no, we'll have the euro, Germany
:06:45. > :06:51.will rub the show. If you don't have inherent competitiveness and
:06:51. > :06:56.an export country, then there is a word for it - Greece. Argentina -
:06:56. > :07:02.what was that comparison? Apparently with the Peso, it was
:07:03. > :07:11.tide with the dollar until the early 2000s. They did that because
:07:11. > :07:19.they had hyper inflation in the 1990s. Argentina was
:07:19. > :07:23.uncompetitive.... They try to harness themselves. A Stronger
:07:23. > :07:28.currency. They broke the linked with the dollar. They had a 40%
:07:28. > :07:32.devaluation with the currency. For a time it had a boost for the
:07:33. > :07:39.Argentinean economy. At least they got growth back. It was based in
:07:39. > :07:44.minerals, exports in agriculture, which is not Greece's.... It is
:07:44. > :07:49.something Greece cannot do. They have tourism. Should they go that
:07:49. > :07:55.route? I think they should leave the euro and go for it. It is make
:07:55. > :07:59.your mind up time. Thank you. Now time for Boom or Bust. Our flick
:07:59. > :08:03.through some of the news stories, starting with an itsy-bitsy teeny-
:08:03. > :08:10.weeny newspaper. This is an edition of the Portuguese weekly paper, no
:08:10. > :08:17.sign of it being yellow or polkadot. It is one inch high and the
:08:17. > :08:23.Guinness Book of Records said it is the world's smallest newspaper. A
:08:23. > :08:30.tall tale - this is Paul Sturgess, the tall block, his nickname is
:08:30. > :08:36.Tiny. He's the first British player to sign for the Harlem
:08:36. > :08:40.globetrotters. He is the tallest player at seven foot eight inches.
:08:40. > :08:44.The photocall to unveil him was on the top of the Empire State
:08:44. > :08:52.Building. You might want to put your feet up in retirement - I know
:08:52. > :08:57.I do - it is not the thing for Dorrie Noyek. She is only 10 -- 105
:08:57. > :09:03.years old. She works in a Florida hospital
:09:03. > :09:09.every day. She says the thing is never to complain. The business we
:09:09. > :09:14.draw from that is even if you have a product that works you can never
:09:14. > :09:21.close the door to innovation. I worked in a traditional airline
:09:21. > :09:28.industry and then started up a low- cost, there is something to
:09:28. > :09:37.reinvent in the industry. I am not sure about a small newspaper. The
:09:37. > :09:41.apps on your iPad take a traditional business model and
:09:41. > :09:45.change it and hopefully make more money out of it. There are many
:09:45. > :09:49.ways newspapers are trying ta make it work for them. They are
:09:49. > :09:53.realising that you can charge for something that the public, the
:09:53. > :10:00.reading public until now has assumed was free, if you add
:10:00. > :10:04.something else on to it. Absolutely. You were working within BA at the
:10:04. > :10:10.time, as an executive. They came to you with the idea, orp you went to
:10:10. > :10:14.them with the idea? Let's launch another airline within an airline?
:10:15. > :10:20.They said, we need someone to write a business plan to see if it is a
:10:20. > :10:24.good or crazy idea. I went at it with a sceptical approach. I had
:10:24. > :10:29.been selling first class seats on Concorde for years and years. I got
:10:29. > :10:37.into it, started to look at the numbers, looked at what competitors
:10:37. > :10:41.had done. It continues to be a much better business model. I got in
:10:42. > :10:46.there quickly and strapped on a back pack myself. Did you feel it
:10:46. > :10:51.was difficult to sell the idea of what would have been a ku ku in the
:10:51. > :10:55.nest? Yes. It was. That was the reason British Airways ended up
:10:55. > :10:59.selling Go is because there was a change of chief executive. The new
:10:59. > :11:03.chief executive said, strategically I don't want a subsidiary which
:11:03. > :11:08.competes with their own business. The new guy says, oh, that was a
:11:08. > :11:13.big mistake, so every time there is a change at the top you get a
:11:13. > :11:18.strategic shift. It is the problem with big companies is how you
:11:18. > :11:22.innovate within a big organisation. It is tough. You have to take risks
:11:22. > :11:28.and accept that change is required. I will ask you about the tall
:11:29. > :11:33.basketball player. He has a skill. It is his height and sporting
:11:33. > :11:40.ability. The business lesson is his skill is not actually that he's
:11:40. > :11:44.seven foot something. That's not the skill. He's there. The skill is
:11:44. > :11:50.how you exploit that, what you already have and turn it to
:11:50. > :11:54.advantage. In a business, you've got a mind to the business and find
:11:54. > :11:58.where the talent is and then maximise that talent, get that
:11:58. > :12:02.talent to do things it never thought it could, that might be
:12:02. > :12:06.leading people. It might be exploiting the market where you are
:12:06. > :12:10.established but didn't know certain things were happening. The lesson
:12:10. > :12:14.we can take from the basketball player is not he's seven foot
:12:14. > :12:19.something, it is how do you build around him to turn it to advantage.
:12:19. > :12:25.When you were looking at the old lady doing her stuff, my mum
:12:25. > :12:32.retired at Christmas, she's 89 this year. She finally packed it in at
:12:32. > :12:40.Christmas. Now she is getting under everyone's feet. She is 89 and she
:12:41. > :12:45.packed it in. Dorrie Noyek going at 105. My father is 91 and still
:12:45. > :12:49.playing the organ in church. It is a growing issue, this one. There
:12:49. > :12:53.are two things, one businesses say they have a shortage of skills.
:12:53. > :12:56.Often it is older workers who have the skills. We are finding
:12:56. > :13:00.retirement is becoming more and more expensive and more people have
:13:00. > :13:04.to take part-time jobs to be able to afford it. Frpbld and their
:13:04. > :13:10.pensions will not be as good -- their pensions will not be as good
:13:10. > :13:14.as ten or 15 years ago. A business wants the skills of people who are
:13:14. > :13:19.adaptable and can change. I loved the way she said the mystery, the
:13:19. > :13:25.key thing about this is you don't complain. If somebody asks you to
:13:25. > :13:30.do something, you don't want to do it - it wasn't done that this in my
:13:30. > :13:35.day, was it? You grasp it, say this is what I have been asked to do,
:13:35. > :13:39.just do it. You keep that aliveness, which is important as you go
:13:39. > :13:44.forward. On the other hand - so that is the relationship between
:13:44. > :13:47.the employer and employee. It is that people will have less good
:13:47. > :13:52.pensions than they had ten or 15 years ago. That means people will
:13:52. > :13:55.want or need to work longer than they otherwise did. This point
:13:55. > :14:01.about not complaining - that's never going to work in this country.
:14:02. > :14:06.We like a good wage. We do. It is very interesting. I worked for a
:14:06. > :14:10.Japanese company, an American company and then for a British
:14:10. > :14:13.again. The Japanese and the Americans did not complain. The
:14:13. > :14:17.Brits complained. I thought the British company was better than the
:14:17. > :14:21.American or the Japanese company, but there you go. Having a whinge,
:14:21. > :14:28.but that is different than a complaint. You might have a whinge,
:14:28. > :14:34.then you just, you know get on and do it. I think humour is the key.
:14:34. > :14:39.It can dispel most whinges. Do you think we whinge today? Great humour.
:14:39. > :14:43.I think a whinge can be a constructive thing if it is
:14:43. > :14:46.channelled properly and used properly with a glint and a smile.
:14:46. > :14:52.One great thing about using older people and I think supermarkets
:14:52. > :14:56.find this, is they are more reliable, they are more dependable,
:14:56. > :15:00.their customer-facing is good. If we can do this, it will give us a
:15:00. > :15:05.fabulous lead, is why don't we put an older person as the mentor to a
:15:05. > :15:11.younger person in the business and bring them on, in terms of all the
:15:11. > :15:15.soft skills you need - confidence, look me in the eye, be more dil
:15:15. > :15:22.gent and careful. They are the talents that the older people have
:15:22. > :15:27.developed over the years. It is more about the soft skills. They
:15:27. > :15:37.are so essential. Especially in consumer-facing businesses.
:15:37. > :15:41.
:15:41. > :15:46.Your worry is there are a large If you think that half of the kids
:15:46. > :15:51.do not get above a seat in English or maths, they are functional
:15:51. > :15:55.illiterate and innumerate, and many have so much unemployed people, I
:15:55. > :16:01.would say to you that about half of them are unemployable because all
:16:01. > :16:10.the businesses of Britain will telly the biggest challenge is
:16:10. > :16:15.education. They cannot be employed? We have just heard about how we
:16:15. > :16:21.have mood this country to a branded end of the game to goods and
:16:21. > :16:26.services. One thing you need is you need skilled people, not rocket
:16:26. > :16:33.scientists, just can read and write, turn up to work on time, at all,
:16:33. > :16:37.and if you crack that, that is fine. People are delivered into the world
:16:37. > :16:40.of work that are not fit for purpose. So this is not a feeling
:16:40. > :16:45.of employers that they are not providing the training that is
:16:45. > :16:50.required because the apprenticeship schemes, that have come back. But
:16:50. > :16:56.it did with a. You were saying the problem is done at a much longer
:16:56. > :17:01.level. Definitely. You have got people, 11 and 12, who cannot read
:17:01. > :17:06.and write. When you try to teach them geography, it goes over their
:17:06. > :17:11.heads. You get truancy and drugs. We have got to address illiteracy
:17:11. > :17:15.and innumeracy. If we do not, we have got a very good time to come.
:17:15. > :17:18.Lord Jones, thank you. The Labour has called on the
:17:18. > :17:22.government cut taxes. Ed Balls wants a temporary cut in
:17:22. > :17:27.either VAT or income tax. He says it will give the economy a
:17:27. > :17:31.necessary boost. We need growth. We need to get the
:17:31. > :17:36.economy moving. This is the only way to get the deficit down. A
:17:36. > :17:40.temporary VAT cut is the fairest way. There are other ways, but the
:17:40. > :17:46.Chancellor needs to act. Doing nothing will make the growth crisis
:17:46. > :17:52.was and make it harder to get the crisis down. Is he right? How much
:17:52. > :17:55.will he stimulate economy by doing this? Would get me is that Moody's,
:17:55. > :18:01.the credit agent -- credit rating agency, downgraded the outlook for
:18:01. > :18:06.our debt, the sovereign debt, from stable to negative, meaning that is
:18:06. > :18:11.a one-in-three chance we might have our credit -- credit rating from
:18:11. > :18:16.the AAA now. If that happened, you get high interest rates, because
:18:16. > :18:19.the bond market will react badly, so you might well have some initial
:18:19. > :18:23.kick on the economy by cutting taxes, but they knew would have
:18:23. > :18:28.interest rates going up, and it would be difficult to see over all
:18:28. > :18:34.what the impact would be fools stop these are the rating agencies that
:18:34. > :18:42.got it so terrific the wrong. should we pay any attention to it?
:18:42. > :18:48.It is whether the markets listen to them. Having said that, when
:18:48. > :18:51.standards and pause to downgrade the United States, what happened to
:18:51. > :18:56.Treasury yields in the States, they went down. So people were still
:18:56. > :19:01.buying them. But we are in not such a happy situation. Will the markets
:19:01. > :19:04.not be more worried that we are stuck, that there is growth, but
:19:04. > :19:10.very little of it? Unemployment is rising and the deficit is getting
:19:10. > :19:17.bigger. I take that point, but I would like to put the question back
:19:17. > :19:22.to Ed Balls and say, how much extra growth will he get out of these tax
:19:22. > :19:27.cuts? He needs to answer that before we actually entertained this.
:19:27. > :19:33.Barbara, would you cut taxes? Of their taxes worth cutting? Taxes
:19:33. > :19:37.are high, but I think fixing the budget deficit is more important.
:19:37. > :19:43.When businesses look at whether or not they will invest, they are
:19:43. > :19:46.going to create new jobs, etc, they need to be able to predict the
:19:46. > :19:50.business environment. So it is a tough situation. Everyone wants
:19:50. > :19:54.lower taxes, but we have come through 10 years of doing whatever
:19:54. > :19:59.we want and there are consequences. Now we are dealing with the
:19:59. > :20:03.consequences. I am in tough it out mode. The argument is, if you cut
:20:03. > :20:08.VAT, it drives up demand and get people spend ing. There is not much
:20:08. > :20:13.evidence of it. Does that work? There was not so much evidence when
:20:13. > :20:18.the rate was cut a couple of years ago, and, by the way, I am not
:20:18. > :20:22.pessimistic about the economy as much as Ed Balls does. By the
:20:22. > :20:26.second half of this year, it might pick up again. The squeeze on real
:20:26. > :20:30.incomes we saw last year when the price of inflation was running so
:20:30. > :20:39.high ahead of earnings, that will end. By the end of the year, there
:20:39. > :20:45.will be grateful to drop would you cut taxes? I would get the
:20:45. > :20:53.employers tax, I would abolish it. That money, please do the dock one
:20:53. > :20:56.of my jobs is to chair a business. And we pay �60,000 a year in
:20:56. > :21:01.National Insurance. We are not making a profit it. We would employ
:21:01. > :21:04.three more people, but because we do not, is because we are paying
:21:05. > :21:10.National Insurance. The depression world have just put
:21:10. > :21:15.on a show for London fashion Week. They put on a show. The catwalk was
:21:15. > :21:20.inspired by Stella McCartney and a magical trick. It is all about
:21:20. > :21:24.making magic out of a few more sales in a shoe.
:21:25. > :21:29.-- in Asia. London's big names unveil their
:21:29. > :21:33.latest collections and a up-and- coming talents good a chance to
:21:33. > :21:37.showcase their skills. This season, the event has an international
:21:37. > :21:42.flavour. As well as a big push to attract more buyers from Asia and
:21:42. > :21:48.the Middle East, 19 embassies and cultural institutions are promoting
:21:49. > :21:54.the work of 18 young designers. inspiration is about nature power
:21:54. > :22:02.and the garment and the human bodies. And all of the subject is a
:22:02. > :22:05.reflection of the radiations and tsunami in Japan. For London
:22:05. > :22:09.fashion Week, it creates an opportunity for me. Many of those
:22:09. > :22:14.displaying clothes on the main catwalks also have their sights set
:22:14. > :22:19.further afield. Maria has been showing in London for many years.
:22:19. > :22:23.This season, heart art-deco inspired signature prints and
:22:23. > :22:26.sculptured Sutton creations are just as likely to be snapped up at
:22:26. > :22:34.her boutiques in Singapore and Taiwan as in her flagship London
:22:34. > :22:38.store. Companies go in cycles. The Asian economy is where the Western
:22:38. > :22:45.economy was 10-15 years ago. Singapore is a completely different
:22:45. > :22:50.place now than it was 10 years ago. It is, you know, booming, and you
:22:50. > :22:55.have got a very sophisticated and developed customer there, that
:22:55. > :22:59.really is... They are young, call, and they are embracing a whole
:22:59. > :23:05.designer fashion. How has it been, working as an international
:23:05. > :23:10.designer in this economic climate? When the recession kicked off in
:23:10. > :23:14.2007 or thereabouts, there was a real shift in the consumer and
:23:14. > :23:19.people started to think much more carefully about how they shopped,
:23:19. > :23:23.what they bought. And, I think as a designer, that pushes you much more
:23:23. > :23:28.to really think about design. Design in its core essence. If you
:23:28. > :23:32.think of Great design, it should be timeless. From a creative
:23:32. > :23:38.perspective, it is a really healthy thing. From a business perspective,
:23:38. > :23:42.it was the natural cycle of What -- of a baby we were going. In terms
:23:42. > :23:47.of the challengers, my main challenge has been suppliers going
:23:47. > :23:50.out of business. I have had a number of things like that over a
:23:50. > :23:55.number of years. I created something and then I wasn't able to
:23:55. > :24:01.produce it because I couldn't get the fabric or I had to source it
:24:01. > :24:05.from somewhere else. Quite challenging? Yes, and it is sad.
:24:05. > :24:10.When people who have been in business for 40 years and cannot
:24:10. > :24:14.make it work any more. I find that quite sad.
:24:14. > :24:19.Despite such setbacks, her expansion plans continue. She
:24:19. > :24:23.follows a path blazed by the bigger fashion houses like Burberry. It
:24:23. > :24:29.sales rose by 30% in China during the last three months of last year.
:24:29. > :24:39.Asia is also the biggest market for the brunt a Chris Hughton. There is
:24:39. > :24:41.
:24:41. > :24:46.a shift. It is to do with made in England. People think, I have got
:24:46. > :24:51.to wear something British. Key to Maria's success has not also be --
:24:51. > :24:55.has not only been her creativity but her keen business sense. It has
:24:55. > :25:00.been my dream to be a designer and I was cutting and making from age
:25:00. > :25:07.12. But it was actually someone at London fashion Week who gave me a
:25:07. > :25:12.lovely piece of advice and said, you need to run a business. I did a
:25:12. > :25:16.little bit of business courses and ended up in the city. That was for
:25:16. > :25:21.a short while. That gave me a good financial background as well, which
:25:22. > :25:26.has been very helpful, I have to save. Especially during this time.
:25:26. > :25:31.As the autumn-Winter Collection 2012 wraps up at London fashion
:25:31. > :25:35.Week, she will be straight back at the drawing board, designing what
:25:35. > :25:40.her customers will be wearing next spring and summer.