Global business
Microsoft is reportedly preparing an update to address unpopular features on its Windows 8 operating platform. Its latest system was launched with much fanfare only last October and described as a "bet the company" moment by Steve Ballmer, Microsoft's chief executive. Windows 8 was designed to be more compatible with tablets and smartphones, but its dual interface and multi-tiled screens have left many PC users bewildered.
BMC Software, a Texan company that manages computer networks for businesses, agreed to be taken private by a consortium led by Bain Capital. At $6.9 billion, it is one of the biggest leveraged buyouts so far this year.
Toyota said that a weaker yen was one reason why its net profit almost tripled in the first quarter of the year. The falling currency also helped propel Sony to a small annual profit, its first in five years. The Japanese government's concerted effort to end deflation has pushed the yen down by 20 percent against the dollar since mid-November.
Portugal's first sale of a 10-year bond since requesting a bailout from the E.U. in April 2011 was heavily oversubscribed. The $4 billion offer yielded 5.67 percent, well below the yield of 15 percent at the height of Portugal's sovereign debt crisis
Stock markets had a buoyant week. The Dow Jones industrial average closed above 15,000 for the first time; the S&P 500 and Germany's DAX also reached all-time highs; and Japan's Nikkei index and the FTSE 100 hit five-year records.
HSBC reported a 34 percent increase in pretax profit for the first quarter, to $7.6 billion. The bank's restructuring program is paying dividends, cutting costs by $4 billion a year. Since 2011 HSBC has closed 50 of its business units globally and shed 46,000 jobs.
Diageo confirmed that Ivan Menezes, its chief operating officer, will take over as chief executive from Paul Walsh in July. Walsh has been in the job for 13 years, during which time Diageo has become one of the world's biggest booze companies by selling off its nondrinks businesses, such as Burger King, and acquiring new drink brands, notably in emerging markets.
Political economy
President Obama indicated that he is warming to the idea of letting American energy companies export more liquefied natural gas. Thanks to the boom in shale gas, America will soon produce more gas than it needs, but selling more of it abroad is resisted by environmentalists and those who fear that domestic prices will rise.
Mario Draghi, the president of the European Central Bank, vowed "to take further action" to help the eurozone after the latest economic data showed little sign of a recovery. The ECB cut its main refinancing rate on May 2 by a quarter of a percentage point, to 0.5 percent. Draghi also held out the possibility of reducing the deposit rate for banks to below zero, in effect charging banks for conserving money in the hope that they will lend more.
In an unexpected move the Reserve Bank of Australia shaved a quarter-point off its benchmark interest rate, bringing it down to 2.75 percent. The Australian dollar, which is at a 30-year high and hindering Australian exports, fell after the announcement.
Malaysia's ruling BN coalition, which has been in power since independence, won an election, taking 133 out of 222 parliamentary seats. But the leader of the opposition, Anwar Ibrahim, claimed the vote had been "stolen" and thousands of his supporters took to the streets to protest. The BN, headed by Najib Razak, the prime minister, denied allegations of cheating.
A Pentagon report accused China's government and armed forces of targeting American government computers as part of a cyberespionage campaign. This is the first time the Pentagon has directly linked such attacks to the Chinese government. China called the accusations groundless speculation.
Dock workers in Hong Kong ended a 40-day strike, after agreeing to a pay raise of 9.8 percent. They had asked for more than 20 percent. Cargo was delayed at the port, one of the world's busiest, resulting in a backlog of thousands of containers.
