Business week in pictures

The International Monetary Fund warned that the European debt crisis could flare up again at any time and send the global economy back into deep recession. Olivier Blanchard, the Fund's chief economist (second right), said there was currently 'an uneasy calm' following the tensions in financial markets at the end of 2011, with hopes of a gradual recovery dependent on keeping the single currency in one piece Photograph: Stephen Jaffe/EPA

A man walks past a closed store with a sign reading 'total clearance closure' in central Madrid. The IMF also warned that Europe's banks risk triggering a major credit crunch if they all take drastic action to repair their balance sheets at the same time. In its half-yearly look at the state of the global financial system, the IMF said it was 'essential to continue to avoid a synchronised, large-scale, and aggressive trimming of balance sheets that could do serious damage to asset prices, credit supply, and economic activity in Europe and beyond' Photograph: Andrea Comas/Reuters

The World Bank named Korean-born doctor Jim Yong Kim as its new president amid criticism that the role had once more gone to a US-nominated candidate. The 52-year-old president of Ivy League Dartmouth College beat Nigerian finance minister Ngozi Okonjo-Iweala to the post, the first time in the World Bank's history that the US candidate has faced a serious challenge Photograph: Enrique Castro-Mendivil/Reuters

A man cleans the front of a hotel overlooking the seafront at Weymouth Bay, which is an Olympic venue. George Osborne has come under pressure to explain when the UK's economy will begin to grow, after warnings that inflation will stay stubbornly high while average earnings remain depressed. MPs are expected to demand an explanation from the Treasury over its strategy after the Bank of England effectively scrapped plans to inject more money into the economy while admitting that inflation may not fall as fast as predicted. Paul Tucker, deputy head of the Bank, said that the rate of inflation might stay above 3% this year Photograph: Matt Cardy/Getty Images

Speculation is rife about who will be the next governor of the Bank of England, even though it is another 12 months before the Queen has to anoint a successor to Sir Mervyn King. Always an influential figure, the new governor will have more powers than ever. As well as setting interest rates, he or she will be handed a host of new powers to supervise the banking sector and constrain rampant credit growth under the coalition's reforms of the financial sector. There were denials from the latest rumoured candidate – the governor of Canada's central bank, Mark Carney - that he was in the running Photograph: Patrick Doyle/Reuters

Barclays chief executive Bob Diamond is attempting to head off a damaging shareholder rebellion over his £17m pay package by pledging to link part of his bonus to an improvement in the bank's performance. In an unscheduled announcement to the stock market, demonstrating the level of concern about the scale of the potential shareholder revolt at the annual meeting next week, the bank reiterated its determination to reach a return-on-equity target of 13% – well above the 6.6% reported for 2011 Photograph: Dylan Martinez/Reuters

Citigroup shareholders have rejected the bank's plan to pay its chief executive $15m (£9.4m) for a year during which its shares fell by 44%. After a preliminary tally at the New York-based firm's annual meeting in Dallas, the bank said a majority of shareholders had voted against its compensation plans for chief executive Vikram Pandit. About 45% of the votes supported the plan, which Citigroup had argued would help attract and retain top talent Photograph: Justin Sullivan/Getty Images

Lord Wolfson, the chief executive of fashion chain Next, handed back £640,000 of his long-term bonus. The move by the Conservative party adviser came as the retailer, which has maintained a reputation for fair remuneration policies despite the recent focus on executive pay, also moved to cut potential rewards paid out to its top executives by clamping down on another incentive scheme that hands them bonus shares Photograph: Rex Features

A demonstrator holds a poster of Goldman Sachs CEO Lloyd Blankfein as thousands gathered in Los Angeles to protest against the inequality of the US tax system. Profits at Goldman Sachs fell to $2.1bn in the first quarter of 2012, 23% lower than the first quarter of 2011. But the bank beat expectations as trading bounced back. Goldman's revenue fell to $9.95bn, down from $11.89bn in the same period a year ago Photograph: Michael Nelson/EPA

Tesco signalled the end of the supermarket space race as it slammed the brakes on aggressive UK expansion to focus on a £1bn makeover of its existing outlets and website. The supermarket giant is trying to win back disgruntled shoppers after a shock profit warning in January exposed cracks in its UK business. Its chief executive, Philip Clarke, said the investment would 'put the heart and soul back into Tesco', which has been forced to reassess itself after suffering its first decline in UK profits in more than 20 years Photograph: Darren Staples/Reuters

The Jaeger fashion brand was sold in a rescue deal as the retail empire built by one of the UK's best known rag traders unravels in the high street downturn. Harold Tillman, who is chairman of the British Fashion Council, sold the business to distressed debt expert Jon Moulton's Better Capital for just under £20m with the 'substantial majority' used to settle its debts. Moulton is best known for his failed attempt to rescue another historic British brand, MG Rover Photograph: Jaeger

A model walks down the catwalk at an Aquascutum show at The Savoy hotel. Another of Tillman's investments, Aquascutum fell into administration. Two days later it announced the closure of its manufacturing plant in Corby with the loss of 115 jobs Photograph: Ian Gavan/Getty Images

A worker at the Repsol oil refinery in Cartagena, Spain. Argentina sent shock waves through the oil industry by announcing plans to nationalise local oil assets controlled by the Spanish giant in a controversial move that threatens to sour the already troubled relationship between the two countries. The move to seize 51% of Repsol's business in Argentina sent the company's shares spinning down 18% on Wall Street and will worry other big foreign investors such as BP. Cristina Fernández de Kirchner, Argentina's president, introduced the new measure to Congress in a bid to recover sovereignty over its national hydrocarbon resources Photograph: Susana Vera/Reuters

Warren Buffett, the world-famous philanthropist and billionaire head of the investment firm Berkshire Hathaway, has been diagnosed with stage one prostate cancer. A letter was posted from Buffett, 81, on the Berkshire website notifying shareholders of his condition. In it Buffett describes the cancer as 'not remotely life-threatening' Photograph: Carlos Barria/Reuters