Week in pictures

The Bank of England's monetary policy committee cut interest rates by half a percentage point to 1.5% – their lowest level since the central bank was founded more than 300 years ago Photograph: Andrew Winning/Reuters

Fears are growing for the future of 2,000 Waterford Wedgwood workers in Britain and Ireland after it emerged that production at the famous china and glassmaker, which went into administration this week, could be moved overseas Photograph: Leon Neal/AFP/Getty Images

European leaders announced a breakthrough deal with Moscow that could see Siberian gas flowing to the households and heating systems of Europe. But hundreds of thousands of families faced a freezing weekend without heating amid uncertainty over whether the deal settling the dispute between Russia and Ukraine would stick Photograph: Patrik Stollarz/AFP

Madoff appeared in court where a judge placed him under curfew. He was ordered to wear an electronic tag after failing to find anybody outside his family willing to sign surety for his $10m bail Photograph: Justin Lane/EPA

Marks & Spencer chief Sir Stuart Rose called on the government to do all it could to restore consumer confidence as the high street giant unveiled dire Christmas trading, the closure of 27 stores and confirmed more than 1,200 staff were to be axed in a bid to cut costs Photograph: Newscast

Unlike M&S, Sainsbury's reported Christmas sales above City expectations, with like-for-like sales for the 13 weeks to 3 January up 4.5%. More than half that improvement is the result of higher prices rather than selling more goods Photograph: PR

Nissan announced plans to cut the 5,000-strong workforce at its Sunderland plant by 1,200. The cutback will involve 800 permanent jobs and 400 temporary staff as the company, Britain's biggest car producer and exporter, bids to curb production in the face of falling demand Photograph: PR

McDonald's aims to become the UK's largest apprenticeship provider within two years with the promise of up to 10,000 places a year from 2010 Photograph: Ben Stansall/AFP

Larry Flynt is hoping to bring off one of the more bizarre PR coups of the credit crunch by asking the US government for a $5bn (£3bn) rescue package to firm up America's limp pornographic industry Photograph: David Sillitoe/Guardian