Business week in pictures

French finance minister Christine Lagarde announced on Wednesday that she will seek the top job at the International Monetary Fund, a candidacy that has widespread support across Europe. Lagarde had remained silent about whether she wanted the job, and said she came to the decision after 'mature reflection' and consulting with French president Nicolas Sarkozy Photograph: Thibault Camus/AP

But the Bric nations – Brazil, Russia, India and China – along with South Africa said in a rare joint statement that the choice of managing director on the basis of nationality undermines the legitimacy of the International Monetary Fund, and stressed it should be based on competence. Pictured: The townhouse, left, in the Tribeca area of Manhattan where former IMF head Dominique Strauss-Khan is being held under house arrest in New York Photograph: Stan Honda/AFP/Getty Images

In the UK, the economy remained under scrutiny. Britain's fragile recovery was dealt a severe blow after figures revealed a slump in household spending that could severely restrict growth and knock the government's debt reduction plans off course Photograph: Andrew Winning/Reuters

Some of Britain's richest businesses and individuals spent an extra £1bn on private jets in the last three months of 2010 in a desperate bid to beat the rise in VAT which took effect in January. The colossal spending spree on everything from £2.4m Cessnas to £48m Learjets revealed a hunger for private aircraft from a community of buyers, many of them City bankers who for the previous two years had lived with a self-imposed no-fly zone Photograph: Harold Cunningham/Getty Images

The west's leading economic thinktank warned the Bank of England that it would have to start raising interest rates this year to prevent inflation taking hold in the UK. In a downbeat assessment of the prospects for the economy, the Paris-based OECD said Threadneedle Street would have to steadily increase borrowing costs over the next 18 months despite the weakness of growth. Pictured: OECD Secretary-General Angel Gurria gives a speech during the Brussels Economic Forum 2011 Photograph: Olivier Hoslet/EPA

Government borrowing hit the highest figure ever recorded for April, news that is likely to intensify the pressure on George Osborne from the right of the Conservative party to step up public spending cuts. Pictured: A protester poses during a Rally against Debt demonstration in favour of government cuts Photograph: Carl Court/AFP/Getty Images

A higher exchange rate and lower export growth would be a price worth paying to prevent an inflationary spiral gripping the UK economy, leading interest rate hawk Andrew Sentance has claimed. Sentance, who steps down this month from the Bank of England's monetary policy committee, said his colleagues on the committee were wrong to believe there was little they can do to arrest inflation that has sent prices soaring by 4.5% Photograph: David Levene/David Levene

The administrators of collapsed DIY chain Focus have confirmed that about 3,000 jobs will go after they failed to find a buyer for the loss-making chain. A massive everything-must-go sale will start on Saturday Photograph: Rui Vieira/PA

The chairman of JJB Sports said it could take up to five years to turn around the retailer, after it came 'perilously close' to collapse and annual losses ballooned to £181m Photograph: Simon Dawson/Bloomberg via Getty Images

Nationwide ruled itself out of the race to acquire Northern Rock, the mortgage lender that was nationalised in 2008 after the first run on a British bank since the late 19th century Photograph: Dan Kitwood/Getty Images

The British energy company that has angered British environmentalists by drilling off Greenland is exploring for oil off the sun-drenched beaches of southern Spain. Cairn Energy, which is run by former Scottish rugby player Sir Bill Gammell, has won the rights to operate oil rigs in 4,000 square kilometres in the Gulf of Valencia Photograph: Greenpeace/PA

Ryanair's inexorable passenger growth will go into reverse this winter for the first since it became a low-cost carrier, the airline admitted, as high fuel costs and weak demand force the grounding of up to 80 aircraft Photograph: Peter Muhly/AFP/Getty Images

Major British banks including HSBC and Royal Bank of Scotland – along with investment banks Goldman Sachs and Nomura – held billions of dollars of Libyan state funds, a leaked report revealed. The world's biggest banks led by France's Société Générale were involved in $5bn (£3.1bn) of deals involving Libya, according to an internal report for the Libyan Investment Authority obtained by UK campaign group Global Witness Photograph: Joel Saget/AFP/Getty Images

The luxury fashion retailer Burberry posted revenues of £1.5bn and profits of £298m. The shares fell despite the good news, investors worrying that an increase in capital expenditure to extend the brand will hit profits in 2012 Photograph: Linda Nylind for the Guardian