Week in pictures

Housebuilder Persimmon announced it is laying off 2,000 staff - 40% of its workforce - after a slump in sales, and warned that conditions in the housing market remain tough. Redrow and Bovis then followed suit Photograph: Nic Randall/Newscast

Gordon Brown insisted that the UK would ride out the global economic downturn, after the G8 summit admitted that rising oil prices had intensified problems caused by the credit crunch Photograph: Junko Kimura/Getty

Bradford & Bingley investors continued to desert the bank despite backing from some of the largest financial institutions in the City for a £400m rescue deal Photograph: David Sillitoe/Guardian

Wall Street stocks suffered their sharpest fall for two months as dismal US employment figures and rumours of hedge fund failures cast a cloud of gloom over trading floors Photograph: Vincent Thian/AP

Terminal 5 came in for renewed criticism after it emerged that passengers transferring between planes at Heathrow's troubled new £4.3bn building are losing more than 900 bags a day Photograph: Cate Gillon/Getty

Rolls-Royce and British Airways are teaming up to conduct an in-depth study of using alternative fuels in the aviation industry as it faces escalating fuel costs and growing pressure to curb emission levels Photograph: Newscast

The Chrysler building, one of the best-loved buildings on the New York skyline, has been sold to the investment arm of the Abu Dhabi government for an estimated $800m (£400m). Photograph: Giorgio Deiana/guardian.co.uk

At Marks & Spencer's annual meeting more than 20% of shareholders failed to back the appointment of Sir Stuart Rose as executive chairman of the ailing retail chain Photograph: Ho/Reuters

The Bank of England left interest rates on hold at 5% for the fifth month running in the face of growing evidence that the economy is rapidly heading into recession Photograph: Luke MacGregor/Reuters

The Vatican has blamed the weak dollar for pushing it into its first loss in four years Photograph: Stefan Zaklin/EPA