Greece draws on IMF
…to pay IMF
Greece made its scheduled €750m (£538.19m) loan repayment to the International Monetary Fund this week, but only after taking the unusual step of drawing on its special drawing rights at the IMF to do so. The SDR is an international reserve, described as a notional or artificial currency of which every member state has an allocated holding. The embattled Athens government withdrew €650m to help towards its loan repayment, and to help it pay public sector salaries. The step demonstrates the growing liquidity issue faced by Greece, and the risk that it will out of cash to make good its public sector payroll at the end of the month,
'Solid' but softer
BoE trims forecasts
The Bank of England downgraded its growth forecasts this week, and made clear that it was in no rush to raise interest rates in what it described as a "solid" economy. The central bank reduced its central forecast for full-year growth to 2.6 per cent, from its 2.9 per cent estimate in February, and predicted 2.5 per cent growth in 2016 and 2017. Inflation was predicted to remain low, though rising at the end of the year towards the bank's 2 per cent target, with governor Mark Carney talking of "looking through" the temporary low levels of inflation caused in part by suppressed oil prices.
Social news
Facebook deal
Facebook has begun directly publishing articles from BBC News, The Guardian and other major news organisations. The landmark deal highlights the allure of the social media giant's more than 1.4bn active users, and Facebook's mounting importance as a gateway to news and media. The publishers are effectively trading control of distribution for unprecedented reach; they risk Facebook supplanting their websites as a content destination, creaming off their visitors and advertisers. However, they will receive all advertising revenue from ads embedded in articles and have access to audience data. Facebook has promised much faster loading times for mobile users and new tools such as interactive maps.
Admiral off-deck
Founder steps down
The chief executive of Admiral, Henry Engelhardt, who founded the insurance company in 1991 and has since grown it to a business employing more than 7,000 staff and serving more than 4m customers, is stepping down. In a press statement Mr Engelhardt implored: "Don't bury me yet, guys!" He will remain in the role for 12 months before passing the torch to the company's chief operating officer David Stevens. The major items on the incoming chief's in-tray will be the company's struggling overseas operations, while premiums in its domestic market show signs of improvement after years of declines.
Media megadeals
Verizon picks AOL
US telecoms behemoth Verizon has secured the acquisition of AOL in a $4.4bn (£2.8bn) deal, as it looks to digital and video platforms to drive further growth. The deal values AOL at $50 a share, which represented a 23 per cent premium on the company's three-month average share price. The company said the merger allowed it to build a "scaled, mobile-first platform" to target a global advertising industry estimated to be worth as much as $600bn. It is the latest of a series of deals lined up among big media companies after rival AT&T agreed to buy satellite TV provider DirecTV for $48.5bn, an acquisition that has created competition concerns.
Allez les bleus
French growth up
The French economy grew by 0.6 per cent in the first quarter, its fastest pace in nearly two years, driven by a rise in household spending. This spending spree also helped other eurozone economies, as the group grew by a collective 0.4 per cent in the period. Italy's economy is also accelerating, though from a more modest base, growing 0.3 per cent in the quarter. But the same rate of growth was viewed as disappointing in the German economy.
