Renault, a carmaker, recently announced 4,000 job cuts in France.Germany's rescue package includes a state guarantee worth €400 billion to back banks' loans to each other, plus €80 billion to top up capital.
If the state tops up capital they must stop paying dividends and cut salaries and bonuses.
Private investors would then be happier to provide the extra capital the banks need to fund India's next investment upswing.Core capitalThe alternative to privatising India's state-owned banks is a continual top-up of capital buffers to make up for losses, using money that might better be spent on public goods, education or targeted welfare.
There would then be a capital top-up of £3bn – just over £1bn more than is currently planned to be spent on affordable housing.
Investec analyst Ian Gordon said: When we downgraded to hold [ in January], we cited five primary concerns: (1) frothy 2013 sellside forecasts (2) payment protection insurance top-up risk (3) enhanced capital notes unwind (4) other income decline and (5) government overhang.
Though it is participating in the second round of a French government bailout, with new write-downs expected, investors had been counting on the capital top-up from the Fortis acquisition.
His two-year £7bn Project Spring capital expenditure top-up – designed to get Vodafone's 3G and 4G networks up to speed – may have landed in time to halt the persistent drip of customer defections.
Immediately after the public dissemination of the stress test results on May 7, two big banks that were told they needed to top up their capital did so quickly.
Deutsche Bank, which was described by the International Monetary Fund as the world's riskiest bank, remained in the third category – where HSBC, Bank of America and French bank BNP Paribas also reside – requiring it to top up its capital by two percentage points.
Other European money transfer startups to have topped up their capital over the last year or so include Dublin-based CurrencyFair, which raised a further $2.5 million led by Frontline Ventures, and Lithuanian-based TransferGo, which raised a very modest €200,000 in funding to launch in the UK.
Capital spending in particular is to be slashed.In this section Angels and demons No farewell to arms Bang to rights The chancellor's eyebrows Top-up teaching Unintended consequences Ready for his close-up?
