04/12/2013 World Business Report

a truce was called on Tuesday. Those are the latest headlines from

BBC World News. Now for the latest financial news with World Business

Report. OPEC faces a dilemma as the boom in

US shale hits the oil cartels' revenues.

Stuck in second gear - that's the prognosis of the Australian

government as new figures show lacklustre economic growth there.

Welcome to World Business Report I'm Sally Bundock. In a minute, we'll

have a report about western retailers launching in India.

Not so long ago, the big worry was that the world would run out of oil

and gas, but the development of hydraulic fracking means those fears

have evaporated. America is producing more oil that it imports

and gas prices have fallen. This is seriously denting OPEC countries'

export earnings. For many years, the cartel of leading Gulf producers -

led by Saudi Arabia, Kuwait and Venezuela, who meet later today,

were able to manipulate prices through their grip on supply. But

now life has changed and many forecasts suggest that, in Europe,

the price of Brent crude may soon fall below $100 a barrel. Here's our

Europe business correspondent, Nigel Cassidy. For 50 years, OPEC held

sway over oil prices, securing the steady income for its members.

Today, 12% of production fetches file. All prices are lower. Thanks

to America's fracking revolution. For the first time since the '90s,

America is producing more crude than it is important. It could one day

overtake Saudi Arabia. They might the -- the biggest threat of OPEC

might come from within. Iran might produce more barrels a day within

months. Demand is harder to predict. The US oil monopoly is being broken

as cheaper shale gas finds its way into trade and truck engines. This

energy specialist says it is putting pressure on OPEC. The factors

driving this decline, the potential increase in oil in the US. There

might be the largest oil exporter in the world in three years. There is

the possibility of increased or the production in Iran. Iran is affected

by sanctions. The level has dropped. Its field is old and tired. They

cannot refurbish. If the price is down, opaque as a group needs to

reduce output to tighten the market. If one member of the group is dead

set on raising its output levels, it becomes difficult for the group to

act together. Brazil is the latest non- OPEC producer. The cartel has

much to discuss. One comfort might be that while lower oil prices are

forecast, recent history suggests they might not last.

Disappointing figures out a few hours ago for the Australian

economy. It grew only a modest 0.6% in the September quarter. Analysts

expected the economy to grow 0.8%. Gross domestic product rose 2.3%

compared to the third quarter of 2012, still ahead of much of the

rich world but substandard for Australia. Our correspondent has

more. It was known as the wonder from Down

Under. That's because Australia was the only country in the G20 to avoid

recession following the recent financial crisis. But now its

economy seems to be stuck in a rut. Rico Hizon is in Singapore.

Basically, it was a mediocre performance for the Australian

economy from July to September. We have to basic fact is. The demand

was a disappointment. Consumers chose to save rather than spend. It

expanded, as you mentioned, by 0.6% with many sectors of the economy

showing little or no growth at all. But on the flipside, we have the

solid contribution from international trade and a record low

borrowing cost at 2.5%. It helps cushion the slowdown. When you speak

to economists, they say if it was not for the fact is, the GDP could

have contracted in the third quarter. Despite the numbers,

investors reacted positively. The local dollar depreciated versus the

greenback. The stock market bucked the downward trend in the region,

double back into it positive territory. There is speculation that

the Central Bank could cut interest rates once again. The Reserve Bank

has revised forecasts next year. In 2015, mining investment will fall

off at a faster than expected pace. Despite the Adelaide Crows of 2.3%,

short of expectation, -- analysed results. It is higher than that of

the US, UK and Canada. The Indian government's Foreign

Investment Promotion Board has approved a plan by Swedish fashion

chain Hennes and Mauritz to invest $115 million dollars in India. H

is the second Swedish retailer after furniture company IKEA to get

approval from India to start retail operations. Both companies plan to

open single-brand stores, through which they would sell their own

brand of goods. Shilpa Kannan has more from Delhi on the Western

retailers preparing to launch in India. H is the latest of global

retailers have announced their plans to open in the market. The Swedish

fashion house will open 50 stores across the country, hoping to tap

into the country's middle class willing to buy. India will have a $5

billion retail market and opening up to global change has been a

cornerstone of the government's recent reform drive, and at changing

the investment climate, at a time when India is facing a patch. There

is slow growth and high inflation. Western firms like H have been

keen to enter imaging markets like India to boost the growth further.

India is the new priority market. India is a very important market for

us internationally. We have been having good performance coming out

of the stores in India. Going forward, we intend to establish a

leadership position in India. We will do that the expanding

aggressively across the cities in India. The painted at 80 stores by

2016. This would make it the largest number of stores anywhere outside of

the UK, internationally. The report that UK's Topshop, cup and others

will identify partners and announce plans. -- Gap. India gave approval

to IKEA, which will "5 stores for spending 1.9 $5 billion a making it

the biggest largest investor in the sector. Many in the industry are

anticipating changes for single brand retailers like IKEA and H

Like dealing with India's bureaucracy or the complicated tax

system or finding the right retail space as the country lacks high

street. That is unlikely to put off foreign investors. They hope that

with the growing population, it will mean an increased demand for

product. A US judge has ruled that the

heavily indebted city of Detroit is eligible for bankruptcy. The ruling

clears the way for the city to come up with a plan to shed $18 billion

in debt. Analysts say pensions may be very hard hit and the famous

Detroit Institute of Arts may see its collection sold.

Sales of bicycles outstripped car sales in almost every country in the

European Union last year, as transport habits adapted to hard

times. Figures from both industries' official associations show the

comparative popularity of two wheels went well beyond the traditional

cycling capitals of northern Europe - Amsterdam and Copenhagen. Italians

bought 1.6 million bikes in 2012, against 1.4 million cars.

The Attorney General is publishing advice from today to make social

media users in the UK aware that they can