Week in pictures

Bank of England governor Mervyn King said that there is now an 'obvious risk' of deflation next year, and financial markets now believe that interest rates could be cut to 1.5% next year. A sharp rise in unemployment added to policymakers' growing list of economic problems Photograph: Chris Radcliffe/AP

Stockmarkets around the world rose as investors were cheered by China's 4tn yuan (£375bn) stimulus package to shore up its economy - which they hope will help the global economy ride out the financial crisis. By the end of the week the mood turned sour after the US government scrapped the central plank of its $700bn financial rescue strategy Photograph: David Gray/Reuters

The Financial Services Authority has fined a former British ambassador to Peru, Richard Ralph, £118,000 for insider trading after he bought shares in a mining company which he chaired while also taking part in takeover talks Photograph: Times Newspapers/Rex Features

Dairy Crest, the group whose Country Life butter is being advertised by John Lydon, aka Sex Pistols front man Johnny Rotten, reported it plans to lay off 100 staff and warned of a 10% drop in profits Photograph: PR/PR

Sales are down at Majestic Wine, which reported a 25% drop in half-year profits. 'Champagne sales have fallen as prices have gone up - and people have nothing much to celebrate,' said chief executive Steve Lewis Photograph: Graham Turner/Guardian

Sir Philip Green, the retail billionaire, indicated he may move quickly to snap up struggling Moss Bros as he bought a 28.5% stake in the menswear retailer for £6. Photograph: Newcast

J Sainsbury has ducked the gloom in the retail sector and posted half-year profits towards the top end of forecasts, after poaching customers from more upmarket rivals Waitrose and Marks & Spencer Photograph: David Devins/Newscast

Britain's biggest property developer Land Securities has abandoned plans for a three way demerger because of adverse market conditions Photograph: Gabriel Szabo/Newscast

The global financial meltdown has struck the art market, with a Francis Bacon self-portrait with an estimate of $40m failing to sell at a disappointing auction in New York Photograph: AP

Mobile phone company 3 is hoping to capitalise on the success of Facebook with the launch of the INQ1, which puts users in touch with their social networking circle at the touch of a button Photograph: PR