goes to plan the bank gets that money back plus interest. these loans have to be backed up by sufficient capital this could comprise deposits such as personal savings accounts or bonds but technically neither belong to the bank after all customers can withdraw their cash anytime they want and when bonds depreciate in value banks write that off. the bank s own capital on the other hand includes things like profits it s previously made so what happens during a financial crisis if companies don t pay back their loans the bank loses capital it eats the last. if the bank has enough capital reserves to remain stable by the way before the financial crisis the reserve ratio of european banks
a middle kind and invite a war. what do you see? yeah, i see they ve already done that, just what we ve seen. required reserve ratio dropped 50 basis points yesterday adding liquidity in the market. that dropped rmb but 1.5% in five days. 3.5% the last month. so they re already ready. that will negate any kind of trade tariff that we ll impose. that i know at the end of the day, there s so lack of clarity coming out of the white house that they re just preparing for it. also realizing that they ve had a soft patch of data coming in. perhaps trump is trying to hit them while they re weak. neil: we have a lot of breaking news here. i do want to bring in the former heinz ceo, bill johnson, global read of things if there was one. bill, i m looking at this and wondering what the signals could be for us. if a company like g.m.
school. the gun was found at the scene. witnesses say lane walked up to a group of students sitting in the cafeteria and opened fire. the latest polls put republican presidential frontrunners mitt romney and rick santorum in a dead heat going into today s primaries. both candidates have made a final push in michigan. the second contest is in arizona. michigan is a vital test of romney since he was born and raised there and his father served as governor. world business today starts now. good morning from cnn london. i m nina dell santos. good afternoon from cnn hong kong. i m andrew stevens. welcome to world business today. the top stories this tuesday, february 28th. asia chief explains the latest results and tells us where the growth is. the world conference, not his latest company s weapon against apple and google. it was wall street s gordon gecko who famously said greed is good. the actor who played him now has a very different message. first up, though,
today. noda is to be japan s sixth krm in five years. convicted lockerbie lopper al megrahi is in a coma and apparently near death. krn can cnn found him at an expensive village. freed from a scottish prison in 2009 after doctors treated him for cancer said he was dying. libyan rebels are advancing and have 14,000 fighters set to liberate moammar gadhafi s hometown of sirte and have given loyalists there a monday deadline to disarm and surrender peaceful lp. the rebels gained control of the city. and 28 people killed when a suicide bomb went off at a sunni mosque in baghdad. a member of parliament was pun of the victims. other attacks elsewhere. those are the top stories from cnn, the world s news leader. i m zain verjee and world news today starts right now. good morning from cnn london. i m charles hodson. and good afternoon from cnn hong kong. welcome to world business today. stop stories this monday august the 29th. now the citizen for japan s revolving door