:00:00. > :00:00.leaders are still insisting that President Assad must step down. Now
:00:00. > :00:19.time for the latest financial news. He was Alice.
:00:20. > :00:32.Oil prices fall rapidly after that nuclear deal with Iran, down by
:00:33. > :00:35.2.5%, is it a lasting trend? The first global trading deal in a
:00:36. > :00:45.decade is edging closer. It could add as much as $1 trillion to world
:00:46. > :00:52.trade. We have the details. A very warm welcome to you. This is World
:00:53. > :00:55.Business Report. We will have the first instalment in our week`long
:00:56. > :01:01.series on the impact of world events on the money in your pocket. But,
:01:02. > :01:07.first, our oil prices are falling after a run of agreed a deal to cut
:01:08. > :01:26.this new killer activities. After Iran. It has fallen by a more than
:01:27. > :01:29.2%, crude. Iran has the fourth largest reserves of oil. It will not
:01:30. > :01:33.be allowed to increase its oil sales for six months. The deal has eased
:01:34. > :01:42.tensions in the Middle East, a key oil`producing area. What else is
:01:43. > :01:50.driving prices down in Asia? As you said, it is essentially all about
:01:51. > :01:54.oil, analysts are saying that once the sanctions are ease, it will
:01:55. > :01:59.allow Iran to slowly re`enter the global economy. We know these
:02:00. > :02:04.sanctions have hurt the Iranian economy because they have been aimed
:02:05. > :02:09.specifically at a run's exports because they have been the key
:02:10. > :02:20.driver of the economy. The sanctions have cut the economy by 6% `` city
:02:21. > :02:30.percents inside it all. `` 60%. Since 2012. Washington threatened to
:02:31. > :02:35.cut off from financial institutions that conducted transactions with a
:02:36. > :02:42.run's Central bank. `` Iran's Central bank. It prompted several
:02:43. > :02:45.countries, it including China, Japan, India and South Korea, some
:02:46. > :02:48.of the biggest buyers of Iranian oil, it prompted them to cut their
:02:49. > :02:56.imports and we saw the European Union imposing a ban on imports of
:02:57. > :03:06.Iranian oil. It will give around some `` around some relief. What
:03:07. > :03:11.we're the games, indicators at a six`month high, that has got nothing
:03:12. > :03:16.to do with Iran. The yen is at the moment incredibly weak and that is
:03:17. > :03:25.boosting export reliant stalk. `` stock. We are seeing gains across
:03:26. > :03:35.the board from Asian markets. That is good news. Negotiators are poised
:03:36. > :03:38.to seal a global trade deal, the first for more than a decade. The
:03:39. > :03:42.deal could boost the sale of goods and services around the world by as
:03:43. > :03:49.much as $1 trillion by some estimates. Key measures will include
:03:50. > :04:01.cutting red tape to ease the flow of goods. It is said that we are
:04:02. > :04:10.entering a new era for global trade relations. The main engine of trade
:04:11. > :04:19.increase in the world is technology. What technology does is shrink the
:04:20. > :04:31.cost of distance. IT, Internet mobile phones, has reduced the cost
:04:32. > :04:35.of difference. `` distance. Maybe financial delocalisation will slow
:04:36. > :04:40.the engines of globalisation but overall I think trade will keep
:04:41. > :04:48.going, international division of labour will keep happening. The
:04:49. > :05:00.multilateral station of goods and services is on. Here is a dependent
:05:01. > :05:04.trade consultant. Rachel. As I understand, one of the key sticking
:05:05. > :05:08.points throughout these ongoing negotiations towards a global trade
:05:09. > :05:15.pact has been agriculture. We are edging closer to a solution on that.
:05:16. > :05:19.Agriculture has been problematic, it is not surprising that it is one of
:05:20. > :05:26.the final sticking points. It seems as though I, and the United States,
:05:27. > :05:36.are edging closer together. `` I. Too short to medium compromise. ``
:05:37. > :05:45.in PR. Had the WTO failed to come up with any agreement, there was a fear
:05:46. > :05:48.voiced by the new director`general. The other matter that is absolutely
:05:49. > :06:00.right, that message has got through in Geneva in the in the negotiating
:06:01. > :06:06.room. All of the transatlantic agreements have been revived. This
:06:07. > :06:10.is really the last attempt to show that while all those other
:06:11. > :06:16.agreements get going or conclude, the World Trade Organisation forum
:06:17. > :06:20.remains the overall umbrella. What will be the other key sticking
:06:21. > :06:24.points aside from agriculture? What they have done for this upcoming
:06:25. > :06:32.listeria or meeting is shorten the agenda, `` upcoming ministerial
:06:33. > :06:36.meeting. There are still sticking points within those three or four
:06:37. > :06:40.key topics. In the trade facilitation agreement, it is really
:06:41. > :06:44.about the complexity of an agreement or a draft agreement that is meant
:06:45. > :06:47.to streamline cross`border trade. There is a contradiction there, if
:06:48. > :06:51.you like. I think they are going to do at this time. It will be a good
:06:52. > :06:57.building block to get on with the next three or four issues. What do
:06:58. > :07:02.you make of the future of the WTO. It is a large, unwieldy
:07:03. > :07:07.organisation, it covers 159 member countries. Do you perceive a bright
:07:08. > :07:11.future for it. I think the way they are going about it for this
:07:12. > :07:14.particular ministerial meeting is the right way, to take three or four
:07:15. > :07:18.issues that have an interconnection and deal with those and then the
:07:19. > :07:22.next three or four. Instead of doing 20 plus topics at once, which
:07:23. > :07:31.becomes impossible to make any progress on. Thank you.
:07:32. > :07:37.It has been a rollercoaster ride for major currencies around the world.
:07:38. > :07:43.The Indian rupee, the Brazilian Riel and Indonesia's repeal all have
:07:44. > :07:50.plunged in value against the dollar. There was fear is that they would be
:07:51. > :07:54.in investor exodus. Delays in US action have extended falls on the
:07:55. > :07:57.Indonesian currency but US made goods remain tour percent dearer
:07:58. > :08:04.than they were a few months ago. In the first of a week`long series we
:08:05. > :08:10.have here, we report from Jakarta on the impact of world events on the
:08:11. > :08:17.money in your pocket! Living the American dream. This man is a car
:08:18. > :08:22.lover. He has bought 14 cars over the last decade. This is his latest.
:08:23. > :08:27.An American Sherri. The weakening of the Indonesian currency hasn't
:08:28. > :08:36.affected his ability to spend. `` and American Chevrolet. TRANSLATION:
:08:37. > :08:39.the prospects for the Indonesian economy are good. Whatever happens I
:08:40. > :08:47.hope people will be able to buy cars. Carmakers are keen to extend
:08:48. > :08:52.their reach into this market. Recent economic troubles and Indonesia have
:08:53. > :08:55.some concern that the Indonesian consumers purchasing power could be
:08:56. > :09:00.affected. There could be bad for business. General Motors than $150
:09:01. > :09:07.million spending `` setting up this factory in Indonesia. It starts
:09:08. > :09:11.operations this years and rolls out 20,000 units from this production
:09:12. > :09:15.line annually. The plan is to double that number. These tigers may not be
:09:16. > :09:25.met because car sales have declined recently. `` those targets. Any time
:09:26. > :09:32.there is uncertainty. There is a presidential election. Maybe there
:09:33. > :09:36.is a bit of weight and see a little bit. There is still confident in the
:09:37. > :09:44.Indonesian consumer's ability to splurge. Companies are not ruling
:09:45. > :09:47.out price rises in the future. If the currency keeps weakening, they
:09:48. > :09:49.will have to pass that on to the customers. That'll be the true test
:09:50. > :09:58.of whether people here will keep paying.
:09:59. > :10:02.That is all from me and the team this our in business. I will be back
:10:03. > :10:05.to look at the papers. `` this hour.