25/11/2013 World Business Report

leaders are still insisting that President Assad must step down. Now

time for the latest financial news. He was Alice.

Oil prices fall rapidly after that nuclear deal with Iran, down by

2.5%, is it a lasting trend? The first global trading deal in a

decade is edging closer. It could add as much as $1 trillion to world

trade. We have the details. A very warm welcome to you. This is World

Business Report. We will have the first instalment in our week`long

series on the impact of world events on the money in your pocket. But,

first, our oil prices are falling after a run of agreed a deal to cut

this new killer activities. After Iran. It has fallen by a more than

2%, crude. Iran has the fourth largest reserves of oil. It will not

be allowed to increase its oil sales for six months. The deal has eased

tensions in the Middle East, a key oil`producing area. What else is

driving prices down in Asia? As you said, it is essentially all about

oil, analysts are saying that once the sanctions are ease, it will

allow Iran to slowly re`enter the global economy. We know these

sanctions have hurt the Iranian economy because they have been aimed

specifically at a run's exports because they have been the key

driver of the economy. The sanctions have cut the economy by 6% `` city

percents inside it all. `` 60%. Since 2012. Washington threatened to

cut off from financial institutions that conducted transactions with a

run's Central bank. `` Iran's Central bank. It prompted several

countries, it including China, Japan, India and South Korea, some

of the biggest buyers of Iranian oil, it prompted them to cut their

imports and we saw the European Union imposing a ban on imports of

Iranian oil. It will give around some `` around some relief. What

we're the games, indicators at a six`month high, that has got nothing

to do with Iran. The yen is at the moment incredibly weak and that is

boosting export reliant stalk. `` stock. We are seeing gains across

the board from Asian markets. That is good news. Negotiators are poised

to seal a global trade deal, the first for more than a decade. The

deal could boost the sale of goods and services around the world by as

much as $1 trillion by some estimates. Key measures will include

cutting red tape to ease the flow of goods. It is said that we are

entering a new era for global trade relations. The main engine of trade

increase in the world is technology. What technology does is shrink the

cost of distance. IT, Internet mobile phones, has reduced the cost

of difference. `` distance. Maybe financial delocalisation will slow

the engines of globalisation but overall I think trade will keep

going, international division of labour will keep happening. The

multilateral station of goods and services is on. Here is a dependent

trade consultant. Rachel. As I understand, one of the key sticking

points throughout these ongoing negotiations towards a global trade

pact has been agriculture. We are edging closer to a solution on that.

Agriculture has been problematic, it is not surprising that it is one of

the final sticking points. It seems as though I, and the United States,

are edging closer together. `` I. Too short to medium compromise. ``

in PR. Had the WTO failed to come up with any agreement, there was a fear

voiced by the new director`general. The other matter that is absolutely

right, that message has got through in Geneva in the in the negotiating

room. All of the transatlantic agreements have been revived. This

is really the last attempt to show that while all those other

agreements get going or conclude, the World Trade Organisation forum

remains the overall umbrella. What will be the other key sticking

points aside from agriculture? What they have done for this upcoming

listeria or meeting is shorten the agenda, `` upcoming ministerial

meeting. There are still sticking points within those three or four

key topics. In the trade facilitation agreement, it is really

about the complexity of an agreement or a draft agreement that is meant

to streamline cross`border trade. There is a contradiction there, if

you like. I think they are going to do at this time. It will be a good

building block to get on with the next three or four issues. What do

you make of the future of the WTO. It is a large, unwieldy

organisation, it covers 159 member countries. Do you perceive a bright

future for it. I think the way they are going about it for this

particular ministerial meeting is the right way, to take three or four

issues that have an interconnection and deal with those and then the

next three or four. Instead of doing 20 plus topics at once, which

becomes impossible to make any progress on. Thank you.

It has been a rollercoaster ride for major currencies around the world.

The Indian rupee, the Brazilian Riel and Indonesia's repeal all have

plunged in value against the dollar. There was fear is that they would be

in investor exodus. Delays in US action have extended falls on the

Indonesian currency but US made goods remain tour percent dearer

than they were a few months ago. In the first of a week`long series we

have here, we report from Jakarta on the impact of world events on the

money in your pocket! Living the American dream. This man is a car

lover. He has bought 14 cars over the last decade. This is his latest.

An American Sherri. The weakening of the Indonesian currency hasn't

affected his ability to spend. `` and American Chevrolet. TRANSLATION:

the prospects for the Indonesian economy are good. Whatever happens I

hope people will be able to buy cars. Carmakers are keen to extend

their reach into this market. Recent economic troubles and Indonesia have

some concern that the Indonesian consumers purchasing power could be

affected. There could be bad for business. General Motors than $150

million spending `` setting up this factory in Indonesia. It starts

operations this years and rolls out 20,000 units from this production

line annually. The plan is to double that number. These tigers may not be

met because car sales have declined recently. `` those targets. Any time

there is uncertainty. There is a presidential election. Maybe there

is a bit of weight and see a little bit. There is still confident in the

Indonesian consumer's ability to splurge. Companies are not ruling

out price rises in the future. If the currency keeps weakening, they

will have to pass that on to the customers. That'll be the true test

of whether people here will keep paying.

That is all from me and the team this our in business. I will be back

to look at the papers. `` this hour.