That was the grim message given by the head of the World Bank, Robert Zoellick, at a conference in Beijing at the weekend. He said that, crippling sovereign debt, slowing growth and a lack of confidence was plunging the world into a new recession. 'The world economy is entering a new danger zone this autumn,' he warned.

    The speech followed poor unemployment data from the US on Friday which spooked stock markets around the world amid further concerns about some eurozone countries ability to repay bond debt in a timely manner.

    'We are living in a global economy. Decisions in Europe, decisions in the United States, decisions in China - they affect us all,' said Zoellick.
    The executive said that the US 'must address the issues of debt' and went on to urge China to speed up the reform of its economy.

    Meanwhile, European bourses have plunged again this morning with London's FTSE 100 down 2%, Germany's DAX falling by 3.22% and the French CAC 40 plummeting by 3.48%.
 

(source:asiasis)