US imbalances 'threaten economy'

Global trade imbalances are one of the biggest threats to the world economy, the International Monetary Fund's Rodrigo de Rato has warned.

The reliance on US consumers to support other economies was unsustainable in the long term and had to be addressed, the IMF head said.

Mr de Rato's speech came amid further market jitters as fears of higher US interest rates hit investor confidence.