World economy given grim warnings

World stock markets have dropped sharply after a series of grim warnings over prospects for the global economy.

The president of the World Bank, Robert Zoellick, said the world's economy was "in a danger zone".

However, Christine Lagarde, head of the International Monetary Fund, said there is a "path to recovery".

The comments came after the Federal Reserve warned that the US economy faced "significant downside risks".

Hywel Griffith reports.