26/07/2012

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0:00:01 > 0:00:03Britain's back and open for business, the Prime Minister's

0:00:03 > 0:00:10rallying call for foreign investment. But, with the economy

0:00:10 > 0:00:13shrinking, who is willing to buy into us?

0:00:13 > 0:00:17A taste of what brand Britain can be, we can do the showbiz, but

0:00:17 > 0:00:22where is the business. The Mayor of Rio, and the Brompton Cycles, are

0:00:22 > 0:00:28here to tell us what is needed for success.

0:00:28 > 0:00:34The excitement is growing so much rb, -- so much, the geiger counter

0:00:34 > 0:00:39of limb mania is going to go off the scale. He's certainly excited,

0:00:39 > 0:00:46what about the rest of us. Is London 2012 the best hope of

0:00:46 > 0:00:50reviving our economic hopes. The edge for Olympic goal. The ruling

0:00:50 > 0:00:55bodies say what is allowed, in terms of physics, anything is

0:00:55 > 0:01:01possible as long as the rules of physics allow that. Who are the

0:01:01 > 0:01:10Syrian rebels, who is funding and arming them? We are on the Turkish

0:01:10 > 0:01:15border to investigate. Good evening, Big Ben bathed in sunshine, crowds

0:01:15 > 0:01:19along the Mal, the royals doing their royal thing at Buckingham

0:01:19 > 0:01:23Palace, although in branded sports wear, Britain has rarely looked

0:01:23 > 0:01:27better. Most would see the country at the top of its game tonight. But

0:01:27 > 0:01:30behind the pomp lies a nation still reeling from the latest shocking

0:01:30 > 0:01:36growth figures evidence and a still deepening recession. And today

0:01:36 > 0:01:41David Cameron invited, some might say, pleaded with, to buy into

0:01:41 > 0:01:47Britain, foreign investors. Paul Mason, what is going on? Before we

0:01:47 > 0:01:50go on to that, there is moving news in Europe, the boss of the European

0:01:50 > 0:01:55Central Bank, Mario Draghi, made a speech, where he said these words,

0:01:55 > 0:01:58I will read them to you, "The ECB is ready to do whatever it takes to

0:01:58 > 0:02:01preserve the single currency, believe me, it will be enough".

0:02:01 > 0:02:06Translated, that means they will buy up the bonds of the striken

0:02:06 > 0:02:11countries, Spain and Italy, or even lend to the bail out fund so it can

0:02:11 > 0:02:14do unlimited bond buying itself. If that happens, that is the big Baz

0:02:14 > 0:02:21sook ka we have all been waiting for. That is why all the markets

0:02:21 > 0:02:26rose in Europe today. It is a big if, although Draghi holds the bass

0:02:26 > 0:02:29sook ka, it is the German parliament who holds the projector,

0:02:30 > 0:02:34they have never agreed to do it before. It may be turning point. We

0:02:34 > 0:02:37don't know. Here in Britain we have been asking ourselves, how is it we

0:02:37 > 0:02:44can stage the incredible thing we are about to see, and yet we can't

0:02:44 > 0:02:48grow our economy. The quest for answers began for David Cameron in

0:02:48 > 0:02:53the rose garden. It is the morning after disastrous news after growth,

0:02:53 > 0:02:55what is the best thing to do? Sit in garden and make a sales pitch to

0:02:55 > 0:02:58foreign investors. We have brilliant British companies they

0:02:58 > 0:03:03can partner with. Last year more businesses were set up in Britain

0:03:03 > 0:03:12than in almost any year in our history. We are a very

0:03:12 > 0:03:16entreprenurial country. I can even offer good weather today. This is

0:03:16 > 0:03:20the Britain millions are seeing as they flock to the city. The

0:03:20 > 0:03:27sunshine be lies a terrible fact. The economy just can't grow, even

0:03:27 > 0:03:33when it is pumped up with money from the Bank of England. David

0:03:33 > 0:03:37Cameron said he would carry on with Plan A+, which is more austerity,

0:03:37 > 0:03:40with more money printed by the Bank of England. Why are things so

0:03:40 > 0:03:44persistently bad, what is the blue sky thinking about putting it

0:03:44 > 0:03:48right? The missing bit of the recovery has been called

0:03:48 > 0:03:52rebalancing, lost jobs in local councils, replaced by new jobs in

0:03:52 > 0:03:55manufacturing. Growth in public spending replaced by private

0:03:55 > 0:04:00investment. There have been jobs created, including in the all-

0:04:00 > 0:04:05important car-making plants, that produce more than 10% of UK exports.

0:04:05 > 0:04:101100 were announced this week by Jaguar Land Rover. Since the new

0:04:10 > 0:04:14year, McCollateralen, Nissan, Vauxhall, and Honda, together with

0:04:14 > 0:04:18mid-size supply chain companies, announced about 8,000 new jobs. For

0:04:18 > 0:04:22the private sector as a whole, more than 200,000 jobs were created in

0:04:22 > 0:04:26just three months. So why are we still in trouble,

0:04:26 > 0:04:31some think it is not macro- economics, but microstructures,

0:04:31 > 0:04:35like the supply chains of almost successful factories that is the

0:04:35 > 0:04:40problem. The import content is sucked in to actually make the

0:04:40 > 0:04:43exports. That is the fundamental problem. If you look at the factory

0:04:43 > 0:04:49like Vauxhall Ellesmere Port, the fundamentally, for the last few

0:04:49 > 0:04:53years, been running a kit assembly operation, with a Brit content of

0:04:53 > 0:04:59about 12%. If that is so, then every Astra that you export sucks

0:04:59 > 0:05:03in the imports, and that's the problem of broken supply chains.

0:05:04 > 0:05:08help struggling firms, last month George Osborne launched what may be

0:05:09 > 0:05:12the last big tweak to Plan A, in the form of �08 billion, lent by

0:05:12 > 0:05:16the Bank of England to banks to get them lending again to business. But

0:05:16 > 0:05:21will it work? We hear quite a bit about small and medium enterprises

0:05:21 > 0:05:25that can't get finance. And they are what I think we have is what

0:05:25 > 0:05:29some would say is an excessive degree of risk aversion on the part

0:05:29 > 0:05:35of the banks. In my view the problem with the schemes so far is

0:05:35 > 0:05:43they are essentially subsidise to the banks to -- supsidies to the

0:05:43 > 0:05:50banks to lend more. But a sill subsidies to the bank doesn't mean

0:05:50 > 0:05:53they will lend. If the lending doesn't work, the fear is the

0:05:53 > 0:05:57economy will stagnate, you get growth but it is not spectacular,

0:05:57 > 0:06:02and jobs are part-time and low-paid. You can live with that for a while,

0:06:02 > 0:06:06as long as you don't have massive debts, but we do. Last November the

0:06:06 > 0:06:10Government was already forced to announce an extra �43 billion of

0:06:10 > 0:06:15spending cuts, for 2015 and 2016, just to maintain its target of

0:06:15 > 0:06:20balancing the book. But even these drastic measures were premised on

0:06:20 > 0:06:27achieving growth this year and decent growth next. That looks

0:06:27 > 0:06:31unlikely, what can they do? number thing I would actually do is

0:06:31 > 0:06:36incentivise manufacturing output by value-added-promotion. Rebate

0:06:36 > 0:06:43corporation tax, for people who manage organic increases in output.

0:06:43 > 0:06:47Give people an incentive to increase out put, because out--

0:06:48 > 0:06:53output, because output drags employment with it. It is not

0:06:53 > 0:06:58rocket science, we have a lot of skilled people, we have a creeking

0:06:58 > 0:07:01infrastructure, and a structural shortage of houses, it is simple,

0:07:01 > 0:07:05the Government should borrow more money at record low interest rates,

0:07:05 > 0:07:10and using that to invest in things like infrastructure, housing and

0:07:10 > 0:07:16getting the unemployed people back to work.

0:07:16 > 0:07:19For now, the world's rich and powerful, and their yachts, have

0:07:19 > 0:07:23come to London, to see the greatest show on earth. What is the secret

0:07:23 > 0:07:27of a successful exporting economy. I caught up with Mexico's Central

0:07:28 > 0:07:37Bank boss this morning. In the short-term there are no quick fixes.

0:07:38 > 0:07:38

0:07:38 > 0:07:42You have to go through the motions, you have to go through the process

0:07:42 > 0:07:46of stagnatisation. The strong message I have from Mexico is

0:07:46 > 0:07:48stagnation pays. Britain's options are, in truth,

0:07:49 > 0:07:54limited by what the financial markets will bear. But in the

0:07:54 > 0:07:57meantime, we are determined to have one heck of a party.

0:07:57 > 0:08:05What does it take to get business to invest here, and what do they

0:08:05 > 0:08:11get in return. With me here is Emerson Roberts, who heads fold

0:08:11 > 0:08:16away Brompton Cycles. And Eduardo Paes, the Mayor of Rio. And Gillian

0:08:16 > 0:08:22Tett joins us. You hear the case that David Cameron is making today,

0:08:22 > 0:08:28is it convincing, when you listen to that, as a foreigner, who has

0:08:28 > 0:08:31many businesses who you could be advising, is it convincing?

0:08:31 > 0:08:35Especially at this time it is a convincing message. I know the

0:08:35 > 0:08:40economic crisis has nothing to do with the Olympics, but when Britain

0:08:40 > 0:08:46brings the Olympics, when the Olympics happens in London, it

0:08:46 > 0:08:49opens, it shows again that this is the capital of the world. Because

0:08:49 > 0:08:56it is more open than other important cities. That you can come

0:08:56 > 0:08:59here and make business. You are saying we are the capital of the

0:08:59 > 0:09:05world tonight, you don't really believe that? I do, what are the

0:09:05 > 0:09:09two most important cities in the world, after Rio, just kidding, it

0:09:09 > 0:09:13is New York and London. Great Britain is more open than the US,

0:09:13 > 0:09:19so when you have a big event like that, I mean, it shows really that

0:09:19 > 0:09:24people can come here. But, OK, if businesses come to you, and say we

0:09:24 > 0:09:28want ideas of where to do business, round the world, how far up is

0:09:28 > 0:09:33London on your list, seriously? Seriously, I think it is a great

0:09:33 > 0:09:37place to do business. Unless you have to buy real estate. Again,

0:09:37 > 0:09:42Europe is going through a crisis, the developed world is going

0:09:42 > 0:09:47through a crisis. China isn't, India isn't, Russia isn't? It is

0:09:47 > 0:09:52not as bad as the developing world, the developing world is not as bad

0:09:52 > 0:09:56as developed world. Peru is not doing perfect, but it is going fine,

0:09:56 > 0:10:00compared to what is happening in Europe. But I do believe that at

0:10:00 > 0:10:05the moment, when you bring everyone in. That's how I see the Olympics.

0:10:05 > 0:10:08Gillian Tett, a slightly different view, sometimes, from Stateside,

0:10:08 > 0:10:12Mitt Romney who is in town today, once wrote that England was a small

0:10:12 > 0:10:20island, roads and houses are small, and it makes things the rest of the

0:10:20 > 0:10:23world doesn't really want to buy. think that certainly reflects a

0:10:23 > 0:10:28view of considerable pessimism amongst many people over here in

0:10:28 > 0:10:31America. You talk to American policy makers or economists or

0:10:31 > 0:10:37business leaders today about what is happening in the global economy,

0:10:37 > 0:10:41and Europe, in general, is seen as a pretty black spot. London and the

0:10:41 > 0:10:44UK until now have been viewed slightly differently, partly

0:10:44 > 0:10:47because, or primarily because it is thought that there is a Government

0:10:47 > 0:10:52there that has its act together. That it had a plan drawn up a

0:10:52 > 0:10:57couple of years ago, to tackle the debt. It has been implementing that

0:10:57 > 0:11:02plan. In stark contrast to even a country like the US, never mind the

0:11:02 > 0:11:05eurozone, where Governments have been less decisive. You say, up

0:11:06 > 0:11:10till now, is that changing as a result of yesterday's figures?

0:11:10 > 0:11:13There was a general concern, on the part of the US Government in

0:11:13 > 0:11:17Washington, who I have been speaking to recently, about the

0:11:17 > 0:11:21feeling that Europe is pressing ahead with austerity a bit too fast.

0:11:21 > 0:11:25A number of people would say that, in fact, the UK has been a little

0:11:25 > 0:11:28bit too aggressive in terms of its austerity actions. It does, at

0:11:28 > 0:11:32least, have plan. One of the things you shouldn't forget, is when the

0:11:32 > 0:11:37Government was elected a couple of years ago. There were people out

0:11:37 > 0:11:42there, big, powerful, bond investors who said the UK gilt

0:11:42 > 0:11:45market was sitting on a bed of nitroglycerin, it seemed they were

0:11:45 > 0:11:48heading towards a bond market crisis. That has been largely

0:11:48 > 0:11:52averted, because there is a Government in plan with a plan.

0:11:52 > 0:11:57Whether or not it is the right plan or not.

0:11:57 > 0:12:00I personally would echo the view of the IMF, that would say perhaps the

0:12:00 > 0:12:04austerity has been a bit too much. They could or should ease back. But

0:12:05 > 0:12:08above all else, they need to do so in a controlled way, that retains

0:12:08 > 0:12:12business confidence. If busys the UK Government does have a plan to

0:12:12 > 0:12:18go a bit easy on fiscal austerity, maybe introduce some stimulus

0:12:18 > 0:12:25measures, but at least it is part of a co-ordinated measure, that

0:12:25 > 0:12:29would help bolster things a bit. you think you build things no-one

0:12:29 > 0:12:34wants? I have to laugh at that. The USA has been the fastest-growing

0:12:34 > 0:12:39market in the last 12 months, that and Jaguar Land Rover, other

0:12:39 > 0:12:43British well known brands do incredibly well in the US. To be

0:12:43 > 0:12:51honest, I was in Rio a couple of years ago, doing a south American

0:12:51 > 0:12:54tour, effectively, looking fordom some distributors in -- for some

0:12:54 > 0:12:58distributors. It only takes two weeks out of the schedule to do

0:12:58 > 0:13:03that sort of trip. More interesting is what I learned from the guys

0:13:03 > 0:13:07leading the UKTI trip down to Sao Paulo. They were saying it is great

0:13:07 > 0:13:11you guys are down here, buff to realise that you are quite late in

0:13:11 > 0:13:14the game. That is what I want to know, you said fundamentally all it

0:13:14 > 0:13:21takes is a couple of weeks, but clearly for most British businesses

0:13:21 > 0:13:28it doesn't, most British businesses are not in Rio. Why not? It is a

0:13:28 > 0:13:33good qe, one statistic tis -- is a good question That is a good

0:13:33 > 0:13:39question, there are more regional headquarters for companies in Sao

0:13:39 > 0:13:44Paulo than Berlin, German companies. The trade balance between Brazil

0:13:44 > 0:13:48and England, it is so small. It has grown a little bit in the past two

0:13:48 > 0:13:51to three years, it is still really small. If you go to Brazil you will

0:13:51 > 0:13:56see lots of American companies a lot of German companies, Spanish

0:13:56 > 0:14:00companies, lots of them. Some Portuguese companies, but not many

0:14:00 > 0:14:03British. We are not alone, generally we don't push ourselves

0:14:03 > 0:14:07out into these big markets as easily as other countries?

0:14:07 > 0:14:10personal view is I think we have been spoiled by our historical

0:14:10 > 0:14:15associations with the Commonwealth. I think we saw that as our export

0:14:15 > 0:14:18markets. The growth markets now are Brazil, India, Russia, and markets

0:14:18 > 0:14:22where we are not very strong. do you think of that, Gillian, do

0:14:22 > 0:14:26you think there is a cultural inhibition here? I think the issue

0:14:26 > 0:14:30with the UK and Brazil is that there have been fewer ties

0:14:30 > 0:14:35historically than between other parts of Europe. What is crystal

0:14:35 > 0:14:39clear right now is British business needs to do what politicians told

0:14:39 > 0:14:42ordinary employees a couple of decades ago, get on their bike.

0:14:42 > 0:14:48They can't count on the eurozone providing growth at the moment.

0:14:48 > 0:14:51They will be lucky if they avoid being draged downwards by a nasty

0:14:51 > 0:14:54recession there. We need to widen their eyes and look at the emerging

0:14:55 > 0:14:58markets, Brazil, China, and the Middle East. They need to look at

0:14:58 > 0:15:01America. Because there are parts of the American economy growing.

0:15:01 > 0:15:07terms of what David Cameron is saying, briefly, how do you get

0:15:07 > 0:15:11those markets interested in Britain. What are we, on a non-eve of

0:15:11 > 0:15:15Olympics night, actually offering? I would imagine one of the most

0:15:15 > 0:15:19powerful things the UK is offering, is it is within Europe but not part

0:15:19 > 0:15:23of the eurozone. It is not being dragged down by those problems, and

0:15:23 > 0:15:27thus far it hasn't had a debt crisis. Let's hope it will continue.

0:15:27 > 0:15:32Very last word to you? It is incredibly easy to set up a company

0:15:32 > 0:15:38in Britain. We are very open n that sense. We went to Chile in the same

0:15:38 > 0:15:43tour I went on, Brazil and Argentina, they have high import

0:15:43 > 0:15:47tarrifs, Chile has a free trade agreement with the EU, it is much

0:15:47 > 0:15:52better to export bikes to Chile. We are open for business, it is just

0:15:52 > 0:15:56handing out that message. You get the dubious honour of

0:15:56 > 0:15:59getting the first guest in shorts. Olympic medal waiting for you off

0:15:59 > 0:16:04the set. If there is anything likely to get a British audience

0:16:04 > 0:16:08behind the Olympics, it is a national slagging off from an

0:16:08 > 0:16:13American politician. Mitt Romney, the Republican US presidential

0:16:13 > 0:16:16candidate, questioned the Brits preparation for the Olympics. He

0:16:16 > 0:16:23was slapped down quickly by the Prime Minister.

0:16:23 > 0:16:32The golden light went through London's landmarks on the last day

0:16:32 > 0:16:38of the run. We followed the flame. This is a tester of what you can

0:16:38 > 0:16:43expect if you have a ticket for the opening ceremony of the Olympic

0:16:43 > 0:16:46Games at Stratford tomorrow evening. It has emerged tonight that all the

0:16:46 > 0:16:51seats have been sold for the big launch, with punters balking at

0:16:51 > 0:16:56price tags of up to �2,000. It is understood that members of the

0:16:56 > 0:17:00Armed Forces and children will fill some of the empty places.

0:17:00 > 0:17:04I hope what people will see is, obviously, all the things they love

0:17:04 > 0:17:08about Britain's past, all the fingers they like about our history,

0:17:08 > 0:17:13our institutions, our culture, or contribution to world development,

0:17:13 > 0:17:17but I also hope they will see a very open country, and one that has

0:17:17 > 0:17:22an enormous amount to offer for future. People keep talking about

0:17:22 > 0:17:28the Olympic family. Perhaps they mean the Windsors, who have been

0:17:28 > 0:17:33publicly lending their support to the London Olympiad today. As has

0:17:33 > 0:17:36footballer, David Beckham, rejected by one leader of great brain,

0:17:36 > 0:17:42Stuart 'Psycho' Pearce, he's happily joining forces with another,

0:17:42 > 0:17:46to take part in a called "Hunger Summit", which will take place

0:17:47 > 0:17:51before the games end. I'm honoured to be part of UNICEF and be here

0:17:51 > 0:17:55today, voicing our opinions on malnutrition, because it is so

0:17:55 > 0:18:02important. Why are the eyes of the world -- while the eyes of the

0:18:02 > 0:18:09world are on our country. # Love is a burning flame

0:18:10 > 0:18:13# And it makes a fiery ring Like a flaming brandysnap of hope.

0:18:13 > 0:18:17The Olympic Torch, or rather torches, have been travelling the

0:18:17 > 0:18:22country in recent weeks. The passing flame has shed light on the

0:18:23 > 0:18:28extraordinary achievements of some of our fellow countrymen and women.

0:18:28 > 0:18:32Today it came to white City in west London, the home of Newsnight --

0:18:32 > 0:18:37White City in west London, the home of Newsnight and BBC Television

0:18:37 > 0:18:41Centre. That's the magic of the torch, it's bringing a little joy

0:18:41 > 0:18:47and wonder to this isolated community, which, let's face it,

0:18:47 > 0:18:50hasn't had much to do with entertainment for years.

0:18:50 > 0:18:55High five, come on, feel the love. Bruce a quick word for Newsnight,

0:18:55 > 0:19:00are you thrilled about this event? Don't I look thrilled, I have been

0:19:00 > 0:19:03waiting for this 84 years, I have finally done it, carried the

0:19:03 > 0:19:06Olympic Torch, thank you so much. But there is a danger that Sir

0:19:06 > 0:19:13Bruce will have to work into old age to pay for the games. That

0:19:13 > 0:19:17could go for the rest of us too. With apologies to Brucie and his

0:19:17 > 0:19:22classic game show, Play Your Cards Right, the initial price tag for

0:19:22 > 0:19:28the games was a comparatively modest �2.4 billion. Higher, higher.

0:19:28 > 0:19:31Only for it to go up to more than �9 billion, in 2007. Lower, lower.

0:19:31 > 0:19:38Last month, the Government said the cost was inching down. The games

0:19:38 > 0:19:42were coming in under budget to the tune of �476 million. Higher,

0:19:42 > 0:19:48higher. Ah yes, but MPs on the Public Accounts Committee say the

0:19:48 > 0:19:53final figure could go up again, to �11 billion. Tonight, the torch

0:19:53 > 0:20:00reached Buckingham Palace, met by the Duke and Duchess of Cambridge,

0:20:00 > 0:20:03in Team GB sports wear, bearing the manufacturer's logo. The problem

0:20:03 > 0:20:07with the games is they are unnecessarily expensive, we don't

0:20:07 > 0:20:11have all these different sports and all these specially-designed venues,

0:20:12 > 0:20:17then we have to commercialise them, we have to get sponsors, the

0:20:17 > 0:20:24sponsors are paranoid with everyone muscling in on it, with the Royal

0:20:24 > 0:20:29Family dressing-up in their gear. It is undignified and ridiculous.

0:20:29 > 0:20:33The London mayor biffed the American presidential hopeful, Mitt

0:20:33 > 0:20:43Romney, who downed the games. Romney wants to know whether we are

0:20:43 > 0:20:45

0:20:45 > 0:20:47ready, are we ready? Yes! Yes we are. Have a wonderful wonderful

0:20:47 > 0:20:51London 2012 thank you for your support.

0:20:51 > 0:20:56We to speak to LOCOG, the London Organising Committee, yet again

0:20:56 > 0:20:59they didn't want to be interviewed by us. Happily the Olympic minister,

0:20:59 > 0:21:03Hugh Robertson is with us. Thank you for coming with us, ahead of a

0:21:03 > 0:21:06busy day. Our economy is in dire need of a bright spark, and as we

0:21:06 > 0:21:11saw from the growth figures, yesterday. We are pretty desperate

0:21:11 > 0:21:16to find the right solution. Do you think that the Olympics can provide

0:21:16 > 0:21:20that touch paper? Yes, I. Do I think in a sense the Olympics has

0:21:20 > 0:21:24already given us one fantastic legacy, is that we undertook the

0:21:24 > 0:21:29largest construction project anywhere in Europe, to try to

0:21:29 > 0:21:34transform the largest area of industrial wasteland inside the M25

0:21:34 > 0:21:38into the Olympic Park. When you look at the GDP figures, everyone

0:21:38 > 0:21:42points to construction, and you would think that the Olympic Park

0:21:42 > 0:21:47hadn't even happened? The Olympic Park is the most magnificent

0:21:47 > 0:21:52calling card moving forward. The trick is to use in the years ahead

0:21:52 > 0:21:54to secure more business opportunities and contracts for

0:21:55 > 0:21:58business construction. David Cameron spoke of the lasting

0:21:58 > 0:22:02economic legacy, you have come up with a figure of �13 billion over

0:22:02 > 0:22:05the next ten years. Break it down, the quoted figures are a billion

0:22:05 > 0:22:11pounds from UK business conferences held during the games? Absolutely.

0:22:11 > 0:22:15There is a long programme, it is all done at Malboro House, and next

0:22:15 > 0:22:18door at Lancaster House, there is a programme right the way through the

0:22:18 > 0:22:24Olympics, of business conferences, of getting the world's top business

0:22:24 > 0:22:27leaders in the country. A billion pounds in three weeks? That is the

0:22:27 > 0:22:30realistic estimate, of contracts signed as a result, the estimate of

0:22:30 > 0:22:33contracts signed as a result of the games. �4 billion of opportunities

0:22:33 > 0:22:38for British business from embassy summits after the games? Absolutely,

0:22:38 > 0:22:43there is a programme called The Great Campaign, launched in the ten

0:22:43 > 0:22:46major markets, very successfully, it has been all over the New York

0:22:46 > 0:22:50subway and Los Angeles. Across the ten major markets. When will you

0:22:50 > 0:22:54add them up and tell us what they made? The Foreign Office said it is

0:22:54 > 0:22:58the most successful trade campaign they have ever seen, it has a good

0:22:58 > 0:23:03chance of raising those sorts of sums. You will know that when?

0:23:03 > 0:23:08years after the Olympics. These are, as you said in the introduction,

0:23:08 > 0:23:13ten-year figures. For a country in such dire economic constraints,

0:23:13 > 0:23:16there is huge marketing constraints, I'm looking at the wording you can

0:23:16 > 0:23:23use, the sponsorship after every event, banning smaller businesses

0:23:23 > 0:23:29to get in on the act. We have the royals wearing Addidas sweat

0:23:29 > 0:23:35shirts? They are wearing those because they are Team GB supporters,

0:23:35 > 0:23:39it is not a sports brand thing. Don't you wake up wondering what

0:23:39 > 0:23:43LOCOG will tell you what to do next? I won't, because LOCOG have

0:23:43 > 0:23:48been more successful than any other organising committee in the history

0:23:48 > 0:23:53of the Olympic Games, by raising �700 million from the private

0:23:53 > 0:23:56sector. That is a success story, it says a lot to foreign investors

0:23:56 > 0:24:01about our ability to attract sponsorship to major sporting

0:24:01 > 0:24:06events. It shows that every year from 201224 will be a major

0:24:06 > 0:24:11sporting event. Let's look at some of the sponsorship. We have covered

0:24:11 > 0:24:16on Newsnight the area of obesity, LOCOG has refused to engage with it.

0:24:16 > 0:24:20The games sponsored by Coca-Cola, McDonalds, Cadbury's, a lot fast

0:24:20 > 0:24:25food sponsors, they contribute 2% to the overall IOC income, and yet

0:24:25 > 0:24:30they have extraordinary dominance in the field? They do, but many of

0:24:30 > 0:24:33those sponsors also run fantastic grass roots programmes, they have

0:24:33 > 0:24:40healthy eating programme, and sport in schools programme, they have

0:24:40 > 0:24:45corporate responsibility programmes. But isn't it strange someone

0:24:45 > 0:24:49running with a fast food logo on it. You are happy that McDonalds will

0:24:49 > 0:24:53be ruling the school at the Olympics? I'm happy for them to be

0:24:53 > 0:24:58investing money in children's sports, getting people fit, and

0:24:59 > 0:25:02conducting their corporate responsibility programmes. Who will

0:25:02 > 0:25:07do the Olympic Torch, Mitt Romney? Fortunately it is not my decision,

0:25:07 > 0:25:11I'm not involved in it. There is nobody who has done as much for

0:25:11 > 0:25:15British sport, particularly as in recent times as Coe, I suspect he -

0:25:15 > 0:25:20- Sebastian Coe, I suspect he's not available, with other things on the

0:25:20 > 0:25:24night. If you look at the olympian with the greatest number of medals,

0:25:24 > 0:25:28it has to be Steve Redgrave. If the rebels of the Free Syrian

0:25:28 > 0:25:35Army, in and around Aleppo, lack weapons to match those of Bashar

0:25:35 > 0:25:37Al-Assad's forces, one thing they don't lack is optimisim. They have

0:25:37 > 0:25:44claimed victory in parts of the city after clashes in recent days.

0:25:44 > 0:25:48Who are the rebels, and who arms them?

0:25:48 > 0:25:54It is within range of Syrian artillery. Once a part of Syria,

0:25:55 > 0:25:57and today, the Turkish town of Antackia, serves as a safe haven

0:25:57 > 0:26:02for rebels fighting across the border. Place to recover,

0:26:02 > 0:26:07reorganise, and begin to plan their country's future.

0:26:07 > 0:26:10Rebels like this man, he left his home town of Hama, a few years

0:26:10 > 0:26:14after the regime massacred thousands of Muslim Brotherhood

0:26:14 > 0:26:18rebels there in the 1980s, and built a new life as a prosperous

0:26:18 > 0:26:28businessman in the United States. This year, a sense of guilt brought

0:26:28 > 0:26:29

0:26:29 > 0:26:32him back to his country. To fight for its freedom.

0:26:32 > 0:26:39He re-equipped this rebel battalion, partly from his own pocket, and

0:26:39 > 0:26:49became its commander, at the age of 52. I participate in so many fights,

0:26:49 > 0:26:53

0:26:53 > 0:27:01like including many cities. I enjoyed it. You enjoyed it?

0:27:01 > 0:27:07course. I would consider I spent the best six weeks in all my life.

0:27:07 > 0:27:13I was so happy to be there. I was so happy to be a part of it. I

0:27:13 > 0:27:17don't have this kind of guilt that I had, it's gone.

0:27:17 > 0:27:22This week, Syrian rebels like him celebrated one of their greatest

0:27:22 > 0:27:27victories yet. An advance into their country's second city, and

0:27:27 > 0:27:31trading hub, Aleppo, which up until recently appeared to be a

0:27:31 > 0:27:36Government stronghold. In a darkened house, just yards over the

0:27:36 > 0:27:39border in Turkey, Mahmoud was waiting to help some of the

0:27:39 > 0:27:43refugees, as they emerged through the nigh. This builder and his son

0:27:43 > 0:27:48have walked for hours, still keeping the Ramadan fast. He

0:27:48 > 0:27:53translates as they tell me why they flet Government militia.

0:27:53 > 0:27:59TRANSLATION: They killed, they burned their bodies, they burned

0:27:59 > 0:28:04some people who were alive, then they threw them in the street.

0:28:04 > 0:28:13Why is it all starting in Aleppo now. Because for a very long time,

0:28:13 > 0:28:19for a year, even after the uprising started, Aleppo was quite quiet?

0:28:19 > 0:28:25There is a lot of money in Aleppo. Most of the business people were

0:28:25 > 0:28:31partners with the regime. Or members of the regime. Those people

0:28:31 > 0:28:35it took them so long to get their families outside of the country, to

0:28:35 > 0:28:39transfer their money somewhere else, that is what took so long, and now

0:28:39 > 0:28:46there is no more money, and people are in a safe I can't remember

0:28:46 > 0:28:50outside the country. That is why the situation has changed.

0:28:50 > 0:28:55Now that the Government can't hold their cash, or their relatives

0:28:55 > 0:29:00hostage, they are free to declare their support for the uprise, and

0:29:00 > 0:29:09join their family in a Turkish refugee camp.

0:29:09 > 0:29:14Meanwhile, back in Aleppo, the Government was mustering its

0:29:14 > 0:29:20superior fire power for a return attack. Fighting wars costs money,

0:29:20 > 0:29:28and the rebels don't have much. 24 hours we estimated the

0:29:28 > 0:29:32ammunition we used of over $1.2 million.

0:29:32 > 0:29:35Here the rebel commanders are holding a crisis meeting, desperate

0:29:35 > 0:29:38to find ways of getting more cash and weapons. They have had little

0:29:38 > 0:29:42luck from the main opposition grouping, the Syrian National

0:29:42 > 0:29:49Council, which is funded partly by Saudi Arabia and Qatar, countries

0:29:49 > 0:29:54committed to arming the rebels. I have been told by one senior Syrian

0:29:54 > 0:29:57national council official, that there was a pause in fighting

0:29:58 > 0:30:01because mistakes were being made. Weapons were being passed to people

0:30:01 > 0:30:09who were not real revolutionaries, they were dealers, who were selling

0:30:09 > 0:30:13the guns on. The fear that weapons may fall into the wrong hands,

0:30:13 > 0:30:19including terrorist hands, is the reason why CID agents are said to

0:30:19 > 0:30:28be operate anything the area, trying to vet arms decision. They

0:30:28 > 0:30:34are collaborating with the General who is are more involved than they

0:30:34 > 0:30:44are said. Down the road, one Syrian rebel leader said he had received

0:30:44 > 0:30:48arms from a Turkish truck parked down the road. An opposition party

0:30:48 > 0:30:53member in Turkey has heard similar stories. They told us two or three

0:30:53 > 0:30:56times a week, between midnight and 5.00am, there are mini-buses and

0:30:56 > 0:30:58lorries bringing boxes. Sometimes they are escorted by military

0:30:58 > 0:31:01vehicles. We are getting information they are bringing

0:31:01 > 0:31:10weapons. It is not possible it could be done without the knowledge

0:31:10 > 0:31:13of Government. According to the rebels, those deliveries go mainly

0:31:13 > 0:31:17to battalions that support the Muslim Brotherhood. They say it is

0:31:17 > 0:31:22the dominant force in the Syrian National Council. And units like

0:31:22 > 0:31:29his, which aren't Islamist, are left out. The other parties who are

0:31:29 > 0:31:33apart from the SNC are not effective, they are not doing

0:31:33 > 0:31:41anything. The Muslim Brotherhood are getting money. They are getting

0:31:41 > 0:31:46money from the Arab countries, they are getting money from other places.

0:31:46 > 0:31:49They have money, and when you have money you have power.

0:31:49 > 0:31:52The SNC itself denies any discrimination in the use of funds.

0:31:52 > 0:31:57But the claim raises questions for western powers, which won't pay for

0:31:57 > 0:32:01arms, but do help the Syrian opposition in other ways. Britain,

0:32:01 > 0:32:05which last year unambiguously backed the main Libyan opposition

0:32:05 > 0:32:11group, the National Transitional Council, now, much more gingerly

0:32:11 > 0:32:16describes its would-be equivalent, the Syrian National Council, as

0:32:16 > 0:32:22just "a", not "the" legitimate Syrian representative of the people,

0:32:22 > 0:32:25and helps other groups as well. British sources deny they have any

0:32:25 > 0:32:29concerns about the overdue influence of the Muslim Brotherhood,

0:32:29 > 0:32:33they are urging it could be as inclusive as possible of all Syrian

0:32:33 > 0:32:36communities and political groups. As for Turkey the border crossings

0:32:36 > 0:32:41with Syria are now closed. Something the Government here, led

0:32:41 > 0:32:46by a Sunni-Islamic party, is encouraging chaos, but trying to

0:32:46 > 0:32:52bring down the secular Assad regime, dominated by the minority Alawite

0:32:52 > 0:32:56sect, and backed by Shia Iran. TRANSLATION: This is part of our

0:32:56 > 0:33:00Prime Minister's great Middle East project to redesign the region.

0:33:00 > 0:33:05What began in Tunisia and Egypt has now got stuck in Syria. Next will

0:33:05 > 0:33:08come Iran. To make it easier tie tack Iran, Israel, America, Saudi

0:33:08 > 0:33:17Arabia and Qatar want a new Government in Syria. They are

0:33:17 > 0:33:20sparking a sectarian war. McMood last the same fear of -

0:33:20 > 0:33:25Mahmoud has the same fear of sectarianism. We will have civil

0:33:25 > 0:33:35war, most of the people in the regime and the Syrian people

0:33:35 > 0:33:36

0:33:36 > 0:33:40fighting now, they are Alawite. I don't think that's something the

0:33:40 > 0:33:45Syrians will forget soon. There will be a retaliation, I have no

0:33:45 > 0:33:54doubt. The end of the regime, he's sure, won't be the end of the

0:33:54 > 0:33:58struggle. But he doesn't want to give up fighting. Over the next few

0:33:58 > 0:34:03week, for some, winning a medal at the Olympics, will hang on a few

0:34:03 > 0:34:10hundreths of a second. What is it that gives elite athlete the edge

0:34:10 > 0:34:16they need for success. We have had exclusive access to Teep GB

0:34:16 > 0:34:22athletes and the -- Team GB athletes and the scientists and

0:34:22 > 0:34:32people working with them to find out if it is talent or anything

0:34:32 > 0:34:36

0:34:36 > 0:34:44else. Focused to win. Striving to reach

0:34:44 > 0:34:48the top. We expect our athletes to be almost superhuman. So is it as

0:34:48 > 0:34:55simple as being the best, or is there more to these elite

0:34:55 > 0:35:05performers. What is it that sets them apart. What is it that gives

0:35:05 > 0:35:05

0:35:05 > 0:35:10them the edge? McCollateralen doesn't just do cars. -- McLaren

0:35:10 > 0:35:16doesn't just do cars. At their technology centre, a Formula One

0:35:16 > 0:35:23effort is being applied to help top athletes too. With performance

0:35:23 > 0:35:28across many sports reaching a peak, winning depends on the smallest of

0:35:28 > 0:35:32margins, fine tuning is what McLaren does best. It is this know-

0:35:32 > 0:35:37how that Team GB is tapping into. Many athletes are monitored every

0:35:37 > 0:35:40day in their training environment, as opposed to a lab. That

0:35:40 > 0:35:44continuing collection of information helps us understand how

0:35:44 > 0:35:48the athlete is developing all the time. It is about data, we talk

0:35:48 > 0:35:51about the only competitive, sustainable advantage is to learn

0:35:52 > 0:35:55faster than the opposition. Technology has given us a platform

0:35:55 > 0:36:00to better understand individuals, and better intervene so they can

0:36:00 > 0:36:07develop more effectively for their events. Live measurement of Formula

0:36:07 > 0:36:11One cars during a race on tyre or engine performance, and the

0:36:11 > 0:36:17driver's physiology, means teams can make instantaneous decisions

0:36:17 > 0:36:27about the tactics. The technology is closely guarded in motor racing,

0:36:27 > 0:36:29

0:36:29 > 0:36:33and McLaren is equally secretive about how they have helped Team GB.

0:36:33 > 0:36:39The impact of the work we do is generally the difference between

0:36:39 > 0:36:48meddling and not meddling. It might even be the case of once you --

0:36:48 > 0:36:53medals, and not medaling, once you get in the case, you can get a

0:36:53 > 0:36:58medal. This lab in Sheffield is where the ideas of the future will

0:36:58 > 0:37:02be honed. These PhD students are not dancing, they are learning

0:37:02 > 0:37:06about posture. They are helping to build the proto-types of systems to

0:37:06 > 0:37:11help athletes out in the field as they train. Everything he does

0:37:11 > 0:37:17depends on measuring an athlete's performance, then feeding that

0:37:17 > 0:37:21information back straight away, giving them the edge. You have the

0:37:21 > 0:37:25boundaries of the allowed and the possible. The ruling bodies, they

0:37:25 > 0:37:31say what is allowed, but in terms of physics, anything is possible,

0:37:32 > 0:37:38as long as the rules of physics allow that.

0:37:38 > 0:37:43How many strokes per minute does it say? 32.5 something.

0:37:43 > 0:37:48Yes t looks daft, but believe me, this kind of monitoring is intended

0:37:48 > 0:37:54to help athletes work out how to optimise their performance.

0:37:54 > 0:37:58It is great, keep going. Tiny reflectors on my arms and legs,

0:37:58 > 0:38:02mean the 12 infrared cameras around the world can track my movements.

0:38:02 > 0:38:06An athlete can use this to watch how they position their bodios, how

0:38:06 > 0:38:16long and how fast their stroke -- bodies, how long and how fast their

0:38:16 > 0:38:19

0:38:19 > 0:38:25strokes are, how much weight they put on an arm or leg, and when.

0:38:25 > 0:38:30It is out in competition that matters most.

0:38:31 > 0:38:34The key is the rapid development of mobile technology. This makes

0:38:34 > 0:38:38instantaneous feedback possible, right at the pool side. Teams have

0:38:38 > 0:38:43access to more than a million pieces of data, on thousands of

0:38:43 > 0:38:48races, by swimmers from over 60 nations. They can begin to see

0:38:48 > 0:38:52though they compare with rival, or over the years. -- how they compare

0:38:52 > 0:38:57with rivals, or over the year. At qualifiers in Sheffield last month,

0:38:57 > 0:39:01the athletes were on edge. This is the second round of the Olympic

0:39:01 > 0:39:06trials for British swimmers. 37 places have already been filled,

0:39:06 > 0:39:11there are only 15 left to compete for. So for these swimmers, every

0:39:11 > 0:39:21hundreths of a second really counts. -- hunddret of a second really

0:39:21 > 0:39:23

0:39:23 > 0:39:30counts. Stacey has already earned her place at the London Olympics.

0:39:30 > 0:39:34She's watched by her performance team, so they can feedback last-

0:39:34 > 0:39:38minute tweaks. Professor Haake is monitoring her too and her rivals.

0:39:38 > 0:39:42What they are looking at Stacey's race, they will look at the video,

0:39:42 > 0:39:47with that they can see her technique, and the individual

0:39:47 > 0:39:51strokes going into and out of the turns. With an all what they have

0:39:51 > 0:39:54done already, they are looking at analysis and the number of strokes

0:39:54 > 0:39:57per minute, the distance between strokes and her velocity through

0:39:57 > 0:40:05the water, particularly coming into the beginning and ends of the race.

0:40:05 > 0:40:08You weren't aware of them here. Stacey herself seems less

0:40:08 > 0:40:13interested in the high-tech analysis, just watching the video

0:40:13 > 0:40:18tells her the most. Spectators too can be wary of the role technology

0:40:18 > 0:40:22plays in an athlete's performance. People like to see, in any sport,

0:40:22 > 0:40:26that it is the athlete in front of them that is winning, not some

0:40:26 > 0:40:29spurious piece ofing at the knowledge. So, the world governing

0:40:29 > 0:40:38body, although they like technology, they want technology it keep the

0:40:39 > 0:40:42sport alive, it can't be the dominant effect.

0:40:42 > 0:40:50At Loughborough, and the British Olympic swimming team is now in

0:40:50 > 0:40:55lockdown. Craig beginson is the world junior champion for the 100m

0:40:55 > 0:40:59breast stroke. His coach wants to work on his weak points. When he

0:40:59 > 0:41:04qualified for the Olympics, off the start he came up, he was probably

0:41:04 > 0:41:09last after the start, so the first 10-15ms of the race, he was one of

0:41:09 > 0:41:13the slowest, and by the time he got down to 50ms he was second-fastest,

0:41:13 > 0:41:17so you know, obviously if we improve the start to the point

0:41:17 > 0:41:21where he's one of the best at the start, then he's probably going to

0:41:21 > 0:41:27be one of the best swimmers in the world. Today, she and Craig have

0:41:27 > 0:41:31scientists from the University of Southampton, poolside, to help,

0:41:31 > 0:41:35they are measuring his speed through the water and the way he

0:41:35 > 0:41:39turns. Feeding this back to him straight away, while the memory is

0:41:39 > 0:41:43still fresh enough, that he can still almost feel the movements in

0:41:43 > 0:41:49his body. It can make the difference between winning an

0:41:49 > 0:41:59Olympic gold medal and not. Because, you are talking, at the Olympics,

0:41:59 > 0:42:04of such small amounts between 1st, 2nd, 3rd, 4th, sometimes it is.01

0:42:04 > 0:42:09of a second. Anything to improve that is good.

0:42:09 > 0:42:19At the Olympic Park, with the games just a few weeks away, the British

0:42:19 > 0:42:24women's hockey team, enjoy a 2461 win against Argentina -- 2-1 win

0:42:24 > 0:42:30against Argentina. Then this happens, the moment every athlete

0:42:30 > 0:42:38dreads, Alex Danson injuries her shoulder, is it all down to bad

0:42:38 > 0:42:44luck, or could her genes have played a role too? A few weeks

0:42:44 > 0:42:49later and she's having physio. Let's do eight.

0:42:49 > 0:42:54Her prospects for London look good. But by knowing about her gene,

0:42:54 > 0:42:59could she have avoided injury all together? A London team has

0:42:59 > 0:43:04identified two genes with variants that can mean an athlete is more

0:43:04 > 0:43:09prone to stress fractures, might genetics be the clue to elite

0:43:09 > 0:43:14performance? If you look at any one sporting element, let as say, for

0:43:14 > 0:43:18instance, how high you can jump as a child, quite a lot of that

0:43:18 > 0:43:22variation in a classroom will be down to genes. It can be as much as

0:43:22 > 0:43:2680% of the variation of that sort of event. As you get more and more

0:43:26 > 0:43:30elite, you require an increasingly rare combination of genes, but

0:43:30 > 0:43:36quite clearly, if you didn't get to train, if you didn't get the right

0:43:36 > 0:43:40nutrition, you would never reach that potential.

0:43:40 > 0:43:44At the English Institute of Sport, they spend millions making sure the

0:43:44 > 0:43:48latest in sports science and medicine reaches Olympic and

0:43:48 > 0:43:53Paralympic athletes, they are keen to make use of anything that

0:43:53 > 0:43:57science can teach them, including the latest in genetics.

0:43:57 > 0:44:02We know some individuals seem to have a higher risk of certain types

0:44:02 > 0:44:07of injury. If we can better understand the risk of injury for

0:44:07 > 0:44:10an individual athlete, due to their genetics, so we can Taylor their

0:44:10 > 0:44:14conditioning programme to pre-- tailor their conditioning programme

0:44:14 > 0:44:20to prevent injury, but also inform their medal programme to manage and

0:44:20 > 0:44:25treat injury. That research involved work with

0:44:25 > 0:44:30the military, as well as athletes, but to some, the idea of testing

0:44:30 > 0:44:35for genes to help swap the perfect -- spot the perfect soldier or

0:44:35 > 0:44:40athlete is a chilling one. There is a danger, not least it isn't yet an

0:44:40 > 0:44:43exact science. And if we try to apply it in that way, we could be

0:44:43 > 0:44:48missing out on possible champions. But perhaps more importantly, it

0:44:48 > 0:44:51raises some big ethical and social issues, and for many people,

0:44:51 > 0:44:55participation in sport is about fun, it is about healthy lifestyle, and

0:44:55 > 0:44:59the last thing we or anyone else should be doing is actually

0:44:59 > 0:45:06screening people in to or out of particular sports, based on genetic

0:45:06 > 0:45:14variations. In the end, being the best is about

0:45:14 > 0:45:16so much more than data collection, fine tuning and genetic testing.

0:45:16 > 0:45:22Let's just imagine you have screened all the males in the

0:45:22 > 0:45:27country at the age of two, you have identified the next Beckham Gino

0:45:27 > 0:45:31type, does that person want to play, enjoy playing, have they also

0:45:31 > 0:45:35developed the set of gene that is will lead them to discover alcohol

0:45:35 > 0:45:45and cigarettes at the age of 11 and stop training. None of these things

0:45:45 > 0:45:49

0:45:49 > 0:45:52are predictable. If the winners emerge from people like you and me,

0:45:52 > 0:45:55they are essentially the same enough or different enough to set

0:45:55 > 0:46:04them apart. If they weren't, the rest of us would have nothing to

0:46:04 > 0:46:12aspire to. Let me take you through the front

0:46:12 > 0:46:22of tomorrow's papers. A lot with beautiful covers, and souvenir

0:46:22 > 0:46:44

0:46:44 > 0:46:48That's all from Newsnight, tomorrow night we are timed to be on air

0:46:48 > 0:46:52right in the middle of the Olympic ceremony, I'll be here with the

0:46:52 > 0:47:02best moments, we will explore what it says about Britain, with a panel

0:47:02 > 0:47:04

0:47:04 > 0:47:07from music, sport and literature, good night from all of us.

0:47:07 > 0:47:11The Olympic Park looked amazing in the sunshine this week, that is set

0:47:11 > 0:47:14to change, to some extent, during Friday, a risk of showers pushing

0:47:14 > 0:47:18in across the south-east of England. Showers across the North West of

0:47:18 > 0:47:21Scotland. Inbetween many places dry, sunshine coming through from time

0:47:21 > 0:47:25to time. Temperatures across northern areas still struggling.

0:47:25 > 0:47:32Just scraping up to 21 degrees across Yorkshire. In the south

0:47:32 > 0:47:36lower than they have been. 23 degrees in London, as opposed to 30

0:47:36 > 0:47:45we saw days ago. In the south-east largely dry, sunshine coming

0:47:45 > 0:47:48through, pleasantly warm on the beaches. A fine afternoon, some

0:47:48 > 0:47:50patchy cloud, some sunshine as well. Dodge the showers across Northern

0:47:50 > 0:47:54Ireland, being pushed in by a fairly brisk north-westerly wind,

0:47:54 > 0:47:57that won't help with the feel of the day, those showers merging to

0:47:57 > 0:48:05get longer spells of rain across North West Scotland, particularly

0:48:05 > 0:48:09to the north of the great Glenn. Not the warmest of days, by