Business week in pictures

Germany and France have emerged from recession earlier than expected, raising hopes that the rest of Europe could soon be out of the woods. Germany, Europe's largest economy, recorded a surprise rise of 0.3% in gross domestic product in the second quarter, ending its worst recession since the second world war. France also returned to growth, mirroring Germany's rise in GDP between April and June. Economists had pencilled in declines of 0.3% for both countries Photograph: Andreas Rentz/Getty Images

Britain faces losing a generation to unemployment after figures showed half the jobs lost over the past year were those of youngsters, pushing up the UK's youth joblessness rate to the highest in Europe. As the data showed that all the progress on jobs since Labour came to power in 1997 had now reversed, the Tories attacked the government's record and urged it to do more to help the young find work, education or training Photograph: Oli Scarff/Getty Images

Recovery in the British economy could be 'slow and protracted', Bank of England governor Mervyn King warned as he attacked the big banks for their role in tipping the world into a deep recession. Releasing its quarterly inflation report, the Bank's monetary policy committee admitted that the UK recession was deeper than previously thought and that inflation would stay very subdued for a long time – a signal that interest rates will not rise in the short term Photograph: Alastair Grant/AP

Four businessmen, once hailed as heroes of British industry, who made millions of pounds running MG Rover in the years before its bankruptcy in 2005, could be disqualified from serving as company directors, the government has indicated. Peter Mandelson, the business secretary, is determined to seek some form of official sanction against key players at MG Rover after the Serious Fraud Office refused to open a criminal investigation into the affair involving the so-called Phoenix Four Photograph: Max Nash/PA

There were reports this week that Lloyds Banking Group is considering raising billions of pounds of fresh cash from its shareholders to extricate itself from its reliance on the taxpayer. The arrival of a new chairman, Sir Win Bischoff, next month has prompted speculation that the bank might raise new capital to limit taxpayers' involvement on its share register Photograph: Andy Rain/EPA

Heathrow reported its third-busiest month ever, as passenger numbers for July indicated that the UK's main airport is recovering from the recession. The airport's owner BAA said 6.5 million passengers passed through Heathrow last month, nearly 1% more than in July last year Photograph: Mark Lennihan/AP

The government is prepared to take further steps to clamp down on City bonuses after the Financial Services Authority published a watered-down code on bankers' pay. In a sign of frustration that the City regulator had stepped back from proposals made earlier this year, City minister Lord Myners said: 'The short-term bonus culture in the global banking industry must end. The government is pursuing all options to ensure banks can no longer get away with the risky pay and bonus policies that contributed to the financial crisis' Photograph: Peter Macdiarmid/Getty Images

The recent poor weather has taken the shine off sales at Greggs, the high street bakery chain, although profits for the first half of the year showed that Britain's cash-strapped consumers were still buying its pasties, sausage rolls and cakes before the heavens opened Photograph: Sarah Lee