Global shares fall following Federal Reserve warning

Global shares have fallen sharply after the Federal Reserve gave a stark warning about the state of the US economy and announced limited measures designed to boost growth.

The Fed warned of "significant downside risks" as it announced a bond swap programme designed to keep long-term interest rates low.

Major European markets all dropped in morning trading, with the FTSE down 4.7%, and the Cac-40 down 5%.

Hugh Pym reports.