1 FRONTIER'S "INVEST MONGOLIA TOKYO 2018" WWW.MONGOLIANBUSINESSDATABASE.COM PUBLISHED:2018/09/19      2 U.S.-CHINA TRADE TUSSLE IS CREATING WINNERS IN SOUTHEAST ASIA WWW.BLOOMBERG.COM PUBLISHED:2018/09/19      3 YUSAKU MAEZAWA: THE JAPANESE BILLIONAIRE WHO WANTS TO FLY TO THE MOON WWW.BBC.COM PUBLISHED:2018/09/19      4 MONGOLIAN FOREIGN MINISTER RECEIVES CARDANO BLOCKCHAIN FOUNDER WWW.NEWS.MN PUBLISHED:2018/09/19      5 ERDENE ANNOUNCES RESOURCE ESTIMATE FOR THE HIGH-GRADE KHUNDII GOLD PROJECT WWW.GLOBENEWSWIRE.COM PUBLISHED:2018/09/19      6 RUSSIAN GIANT COPPER PROJECT IN TALKS TO RAISE $1.25B WWW.REUTERS.COM PUBLISHED:2018/09/19      7 MONGOLIA GRADUALLY WITNESSING PROGRESS IN TOURISM WWW.TRAVELANDTOURWORLD.COM PUBLISHED:2018/09/19      8 CHINA, MONGOLIA, RUSSIA PUSH FOR ‘ECONOMIC CORRIDOR’ WWW.RUSSIABUSINESSTODAY.COM PUBLISHED:2018/09/19      9 EXPERTS FROM CHINA, MONGOLIA, RUSSIA TALK ON CONSTRUCTION OF ECONOMIC CORRIDOR WWW.XINHUANET.COM PUBLISHED:2018/09/19      10 PM U.KHURELSUKH PAYING AN OFFICIAL VISIT TO THE UNITED STATES WWW.MONTSAME.MN PUBLISHED:2018/09/18      ШЕНГЕНИЙ БОГИНО ХУГАЦААНЫ ВИЗИЙН МЭДҮҮЛГИЙГ УЛААНБААТАР ХОТОД АВНА WWW.MEDEE.MN НИЙТЭЛСЭН:2018/09/19     2018 ЭХНИЙ 7 САРД МОНГОЛЧУУД ГАДААД РУУ ЭМЧИЛГЭЭНД ЯВАХДАА 19.5 САЯ АМ.ДОЛЛАР ЗАРЦУУЛЖЭЭ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/09/19     ӨНӨӨДӨР ТӨВ ТАЛБАЙД 4000 АЖЛЫН БАЙРАНД БҮРТГЭНЭ WWW.DNN.MN НИЙТЭЛСЭН:2018/09/19     ЗАЛУУЧУУДЫН ГАРААНЫ БИЗНЕСИЙН ШАЛГАРСАН ТӨСӨЛД 10,0 САЯ ТӨГРӨГИЙН ДЭМЖЛЭГ ҮЗҮҮЛЛЭЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2018/09/19     WORLD ECONOMICS: МОНГОЛЫН АЖИЛ ЭРХЛЭЛТИЙН ТҮВШИН СҮҮЛИЙН 5 ЖИЛИЙН ДЭЭД ТҮВШИНД ХҮРЛЭЭ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/09/19     ERD: "ХӨНДИЙ" АЛТНЫ ТӨСЛИЙН ТОГТООГДСОН НӨӨЦ 751 МЯНГАН УНЦ АЛТ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/09/19     ХЯТАДЫН $200 ТЭРБУМЫН ИМПОРТОД ТАРИФ ТОГТООВ WWW.ZGM.MN НИЙТЭЛСЭН:2018/09/19     ШИВЭЭХҮРЭН БООМТООР ХОНОГТ 60-80 МЯНГАН ТОНН НҮҮРС ЭКСПОРТОЛЖ БАЙНА WWW.GOGO.MN НИЙТЭЛСЭН:2018/09/19     БНХАУ-ЫН 200 ТЭРБУМ АМ.ДОЛЛАРЫН ИМПОРТОД 10 ХУВИЙН ТАРИФ НОГДУУЛАХ ШИЙДВЭР ИРЭХ 7 ХОНОГООС ХЭРЭГЖИНЭ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/09/18     ӨВӨЛ ЦАХИЛГААН СААТВАЛ ХОТ ДӨРВӨН ЦАГИЙН ДОТОР Л ХӨЛДӨНӨ WWW.ZGM.MN НИЙТЭЛСЭН:2018/09/18    

Events

Name organizer Where
Frontier's "Invest Mongolia Tokyo 2018" Frontier Securities Tokyo Japan
"Open to Export" ICC WTO International business award ICC WTO London

NEWS

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Asia gains as South Korea hits record high, dollar sags on White House woes www.reuters.com

TOKYO (Reuters) - Asian stocks mostly rose on Tuesday, shaking off downbeat factory readings out of China, while the dollar sagged after investigators probing Russian interference in the 2016 U.S. election charged President Donald Trump’s former campaign manager.

Spreadbetters expected Britain's FTSE .FTSE to open a shade lower and France's CAC .FCHI to open flat. The German markets will be shut for a national holiday.

MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS was up 0.4 percent.

Strong gains in South Korea and Taiwan, which make up roughly a quarter of the index’s weighting, helped offset weakness in China and Hong Kong.

The KOSPI .KS11 ended up 1 percent at a record high after Seoul and Beijing agreed to normalize relations that have been strained by a year-long standoff over the deployment of a U.S. anti-missile system in South Korea.

“Shares that have long been pressured by ongoing political disputes between the two countries are reacting positively to the announcement, including Hyundai Motor-related stocks,” said Cho Byung-hyun, a stock analyst at Yuanta Securities.

Tech-heavy Taiwan .TWII added 0.4 percent after Apple (AAPL.O) made big gains overnight.

But Chinese equities wobbled after data showed a sharper-than-expected slowdown in October factory growth.

Beijing’s war on winter air pollution is forcing many northern steel mills, smelters and factories to curtail production, adding to uncertainty amid early signs of a slowdown in the world’s second-largest economy.

China's blue-chip CSI300 index .CSI300 fell 0.2 percent and Hong Kong's Hang Seng .HSI dipped 0.1 percent.

Japan's Nikkei .N225 closed flat, capped by weaker U.S. shares and a stronger yen.

Wall Street pulled back from record-high territory on Monday, weighed down by a drop in drugmaker Merck (MRK.N) and a report that U.S. lawmakers are discussing a gradual phase-in corporate tax cuts rather than reducing it all at once. [.N]

“The report of the gradual corporate tax cut option came when equities were strung high, so it served as a catalyst for markets to adjust,” said Masahiro Ichikawa, senior strategist at Sumitomo Mitsui Asset Management in Tokyo.

“Expectations were for the corporate tax to be cut in one go. But even if the cut is implemented gradually, it still is a reduction and that won’t be bad news in the long term.”

The dollar hovered near a 10-day low of 113.02 yen JPY= struck overnight.

The greenback lost about 0.4 percent against the yen overnight on investor caution after former Trump campaign manager Paul Manafort and another aide, Rick Gates, were charged with money laundering on Monday by federal investigators.

“It’s weighing on dollar/yen a little bit. I think there’s a little bit of uncertainty,” said Stephen Innes, head of trading in Asia-Pacific for Oanda in Singapore, adding the yen drew some support as risk sentiment was looking a bit wobbly.

The yen showed little reaction to the Bank of Japan’s decision to stand pat on monetary policy even as it slightly cut its inflation forecast for the current fiscal year, an outcome that had been widely expected.

The U.S. currency was also pressured as Treasury yields slipped on reports that Trump is likely to appoint Federal Reserve Governor Jerome Powell, who is viewed as more dovish than other contenders, as the next head of the Federal Reserve.

The 30-year Treasury bond yield US30YT=RR fell to its lowest in a week after Bloomberg quoted Treasury Secretary Steven Mnuchin saying the government does not see a lot of demand for ultra-long bonds.

The dollar index against at basket of six major currencies .DXY steadied at 94.547 after slipping overnight from a three-month high of 95.150.

The euro was little changed at $1.1637 EUR=. It had pulled back overnight from a three-month low of $1.1574 on Friday.

European markets got a lift on Monday after an opinion poll showing waning support for independence soothed investors’ concerns over a Catalan secession from Spain.

Crude oil prices steadied below their recent peaks after being boosted by expectations OPEC-led production cuts would be extended beyond March.

Brent crude futures LCOc1 was down 0.2 percent at $60.78 a barrel after rising to $61 overnight, the highest since July 2015.

U.S. crude CLc1 was 0.1 percent lower at $54.09 after touching $54.46, its highest since late February.

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October 30 2017 trading report www.mse.mn

On October 30, 2017, 354,930 shares of 22 firms listed as Tier I, II, and III were traded. 7 firms’ shares increased in price, 12 decreased and 3 remained unchanged. Gobi JSC /GOV/ was the top performer, increasing 4.73 percent, whereas Mongol Post JSC /MNP/ was the worst performer, decreasing 13.56 percent.

On the secondary market for government bonds, 3,000 bonds with a value of MNT296.5 million were traded.

The MSE ALL Index decreased by 0.36 percent to stand at 1,139.54 points. The MSE market cap stands at MNT 2,198,753,225,449.

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Glencore raises marketing guidance, lowers output www.mining.com

LONDON, Oct 30 (Reuters) – Glencore on Monday cut its output forecast for core commodities including zinc, but raised its marketing division’s full-year earnings before interest and tax (EBIT) to between $2.6 billion and $2.8 billion, reflecting higher raw materials prices.

Its previous 2017 marketing, or trading, EBIT guidance was $2.4 billion to $2.7 billion, which was already an upward revision from $2.1 billion to $2.4 billion at the start of the year.

In its third-quarter production report on Monday, Glencore lowered its output guidance for copper, zinc and coal, citing operational difficulties, maintenance and end-of-mine-life declines, but it said full-year earnings would not suffer.

Analysts said it had been a weak quarter, but marketing conditions were favourable.

The share price rose 0.43 percent by 0912 GMT, slightly more than the broader market.

“Overall, we see today’s results as slightly negative, though the marketing EBIT guidance upgrade is a clear positive,” analysts at Bernstein said in a note.

They reiterated their “outperform” rating, saying Glencore’s commodity mix makes it well-placed for an increase in demand from electric vehicles.

For zinc output, Glencore cut its 2017 guidance to 1.1 million tonnes (+/- 15,000 tonnes) from 1.13 million tonnes (+/- 25,000 tonnes) seen in August.

Glencore’s zinc production has been in focus as a doubling in the market since the start of last year has raised questions over whether Glencore would bring back the production it shut in when the market was much weaker.

CEO Ivan Glasenberg has said he will only raise zinc output once he is confident any increase will not drag the market lower.

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Mongolia and Russia to intensify border cooperation www.montsame.mn

 
Ulaanbaatar /MONTSAME/ A joint working group concerning the border cooperation at the Mongolian Ministry of Justice and Home Affairs and the Russian Ministry of Internal Affairs held its meeting on October 24 in Ulan-Ude, Russia.
The meeting was co-chaired by B.Enkhbayar, Deputy Minister of Justice and Home Affairs of Mongolia and I.N.Zubov, Deputy Minister of Internal Affairs of the Russian Federation.
The parties shared views and information on crimes near borders, measures combating terrorism and extremism, fighting illicit trade of drugs and narcotic substances, strengthening the control and cattle-lifting. As a result of joint efforts, the number of animal theft nears borders declined. Although the number of Mongolians who commit crimes while travelling to Russia has decreased, Mongolian travelers are still becoming victims of crimes, the sides noted.
During the meeting, the sides decided to hold short-term training on fighting illegal drug trafficking and ensuring security in case of public events or extremist actions with help of instructors of training organizations at the Russian Ministry of Internal Affairs.
 
The next meeting of the joint working group will be held in 2018 in Mongolia.
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Mongolia to accelerate joint projects with China www.montsame.mn

Ulaanbaatar /MONTSAME/ Deputy Prime Minister U.Enkhtuvshin exchanged views on the Mongolia-China relations and cooperation with Xing Haiming, Ambassador Extraordinary and Plenipotentiary of the People’s Republic China to Mongolia, on October 30.

The Chinese Ambassador congratulated U.Enkhtuvshin on becoming Deputy Prime Minister, and he further expressed Chinese readiness to closely cooperate in all sectors and implement joint projects and programs in certain sectors.

The Deputy Prime Minister noted that he would pay big attention on the bilateral relations and cooperation as he serves as Head of the Mongolian part at the Mongolia-China Intergovernmental Commission as well as the Cooperation Council on Minerals, Energy and Infrastructure Affairs.

The parties exchanged views on accelerating ongoing and planned projects financed by a Chinese Government’s soft loan and non-refundable aid on constructions of paved-roads and bridges.

U,Enkhtuvshin pointed out that Mongolia aspires to maximize the trade turnover to USD 10 billion by 2020 after improving carrying capacity of the Gants Mod border checkpoint, reducing traffic jams at borders, increasing the export of mineral, agricultural and animal products.

The sides also considered as necessity to intensify construction works of the economic cooperation zone in Zamyn-Uud and Erenhot and promptly launch joint feasibilities for establishing a free trade agreement.

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MSE share capital goes up www.montsame.mn

Ulaanbaatar /MONTSAME/ The Financial Regulatory Commission (FRC) has raised the share capital of the Mongolian Stock Exchange JSC by MNT20 billion and made changes to the securities registration.

Thus the Mongolian stock exchange company now has the share capital of MNT21.8 billion or 218.4 million units of shares with nominal value of MNT100 each.

The FRC held its regular meeting on October 27 and made decisions on issuance and cancel of special licenses of some companies.

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IMF Reaches Staff-Level Agreement on the First and Second Reviews of Mongolia’s Extended Fund Facility www.imf.org

Mongolia’s economy is recovering and GDP growth is now projected at 3.3 percent this year and 4.2 percent in 2018, reflecting buoyant external conditions and improving confidence. Key targets have been achieved.

Important structural reforms are underway to lay the foundations for long-term growth and break the boom-bust cycle. The key near-term focus is supporting the authorities’ policies to strengthen the banking sector and enhance fiscal policy making.
The IMF welcomes the authorities’ commitment to continue the reform momentum to cement the long-term benefits.
An International Monetary Fund (IMF) staff team led by Mr. Geoff Gottlieb visited Ulaanbaatar from October 18-30, 2017 to conduct discussions on the first and second reviews of the three-year Extended Fund Facility (EFF) arrangement approved on May 24, 2017, in an amount equivalent to SDR 314.5054 million, or about US$434.3 million (see Press Release No. 17/193).

At the conclusion of the visit, Mr. Gottlieb made the following statement:

“The economy is growing more strongly than expected, with GDP growth likely to reach at least 3.3 percent this year on the back of strong coal exports, a robust recovery in services, and a return of confidence following the approval of the $5.5 billion IMF-supported package. Growth is expected to become more broad-based in 2018 as the domestic economy revives, but there are downside risks to the coal sector.

“Performance under the program has been positive, with all quantitative targets met. Fiscal results have been better than expected, supported by stronger revenues and tight expenditure control. The overall fiscal deficit is likely to be 7.5 percent of GDP this year compared to 17 percent in 2016. The authorities’ proposed 2018 budget is in line with the revised program that envisages a deficit of 6.5 percent of GDP. The authorities have committed to save half of any revenue overperformance should it materialize, thus helping to reduce borrowing and ensure debt sustainability. The remainder would be used to fund productive one-off spending in line with the government action plan. Both this year and next, the authorities have allocated a one-time bonus to civil servants. Net international reserves have improved, and the authorities have rolled over the sovereign bonds maturing in 2017 and 2018 at attractive interest rates, removing a key risk to the external position.

“The authorities have moved ahead with their ambitious structural reform agenda, which will help to sustain growth over the medium term, promote diversification and competitiveness, and mitigate the boom-bust cycle. The rehabilitation and strengthening of the banking system is underway: the results of the comprehensive Asset Quality Review are expected in mid-December; important legal reforms are being drafted to strengthen the financial system; and improvements to the regulatory and supervisory framework are under way.

“On the fiscal side, steady progress is being made in strengthening tax administration, tax policy, and budgetary controls, including through the establishment of a fiscal council and a high-level working group on tax policy. It is important that the reform momentum is maintained in 2018 to cement the long-term benefits of such policies on promoting inclusive and sustainable growth. In this regard, it is encouraging that the commitment of the new government to the program policies remains strong.

“The authorities and the team have reached staff-level agreement on the completion of the first and second reviews under the EFF arrangement, which is subject to the approval of the IMF Executive Board.

“The team thanks the authorities for their cooperation, constructive dialogue, and hospitality during its stay in Mongolia.”

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Camel caravan embarked www.montsame.mn

A Mongolian woman B.Baigalmaa is ready to fulfill her life-time dream of an epic adventure. An opening of her camel caravan “Steppes to the West” was held on October 29 at Sukhbaatar Square.

She believes it would be a historical journey that will promote the country, publicize Mongolia’s history and culture and show the strength of Mongolian woman.

The journey team headed by B. Baigalmaa consists of eight people from five countries. They will travel around 12,000 km on bactrian camels for over three years covering 16 countries. 

B. Baigalmaa is an experienced mountaineer who climbed up Mongolia’s highest peaks and Mt.Elbrus, the highest peak of Europe, and Mt.Kilimanjaro, the highest peak of Africa as well as she had travelled 28 countries of the world.

Seeing off the journey, Mongolian mothers sprinkled with milk for the successful trip and wellbeing return.

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South Korea's Lotte Corp soars in debut on investor hopes for better returns www.reuters.com

SEOUL (Reuters) - Shares in Lotte Corp, the new holding company for South Korea’s No. 5 conglomerate, soared some 45 percent on their debut above their issue price, bolstered by hopes for better corporate governance and shareholder returns.

Although the debut comes at a difficult time for the conglomerate, which has been hit by political tensions between Beijing and Seoul, combined valuations for the group’s main listed firms on Monday were some 17 percent above levels for comparable entities in late September.

In early afternoon trade, Lotte Corp’s stock was trading at 68,400 won per share, above its issue price of 47,100 won.

Korea’s stock exchange, however, calculates moves on the first day of trade by comparing with an opening price which it works out from an average of orders before trade. On that basis, it was up about 7 percent on the day.

The holding company was created to simplify the group’s complex ownership structure and enhance the control of Chairman Shin Dong-bin, who survived a power struggle with his elder brother.

Under the restructuring, four key group firms - Lotte Shopping, Lotte Confectionery, Lotte Chilsung Beverage and Lotte Food were each split into two companies, with half of the resulting eight firms combined into one holding company.

The remaining four companies resumed trading on Monday after having been suspended since Sept. 28.

Lotte Confectionery, which has previously served as a proxy for the whole Lotte group for many investors, tumbled 13.5 percent as they switched out of the firm and into Lotte Corp.

Lotte Shopping, the group’s flagship retail unit, was down 6.6 percent. One of the South Korean firms’ most hurt by the political tensions between Beijing and Seoul, it has had to close most of its stores in China and last week posted a 58 percent drop in third-quarter operating profit.

The Lotte group agreed to hand over land to the South Korean government for a U.S.-made missile defense system in late February - a plan that has angered Beijing, which argues the radar can penetrate far into its territory.

Lotte Corp currently controls 42 of the group’s 91 units, a spokeswoman said, and plans to add others like Lotte Chemical and Hotel Lotte in the longer term.

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Mongolia-EU relations enter new phase www.montsame.mn

Ulaanbaatar /MONTSAME/ EU-Mongolia relations are entering a new phase with the opening of a Delegation of the European Union (the equivalent of an embassy for the EU) in Ulaanbaatar, and the entry into force of the EU-Mongolia Partnership and Cooperation Agreement, said a press release issued by the EU on October 27.

Against this backdrop, the EU Ambassador to Mongolia Hans Dietmar Schweisgut will lead a group of more than twenty ambassadors and senior European diplomats from EU Member States to Mongolia to meet with the country's political leaders as well as representatives of civil society.

"This visit takes place at a timely moment: a new Government is in place, we open an EU Delegation, and the Partnership and Cooperation Agreement enters into force. I am looking forward to discuss with the new leadership of Mongolia how to take our relations to a new level. Now all conditions are in place to step up our political dialogue and cooperation, and to further strengthen our partnership.The EU and Mongolia share many common values: respect for human rights, democracy and the rule of law are the foundation of our relationship," Ambassador Schweisgut said.

The EU Ambassador, together with over 20 ambassadors and senior diplomats from EU Member States come to Ulaanbaatar for their annual meeting with the Mongolian leadership. The objective of these meetings is to take stock of relations between the EU and Mongolia, and to discuss how to strengthen, promote and extend the scope of cooperation between the parties. The visit will also offer an early opportunity to discuss how the EU and its Member States, together with Mongolia, start implementing the Partnership and Cooperation Agreement. We have already made some progress with the first EU-Mongolia Human Rights Dialogue held in March this year. The EU is also looking into possibilities to enhance trade relations, and will discuss Mongolian ideas on how best to assist Mongolia's businesses to better use the EU's GSP+ (Generalised Scheme of Preferences – an EU policy allowing developing countries to pay fewer or no duties on exports to the EU, giving them vital access to the EU market and contributing to their growth). The EU provides development assistance to support Mongolia's authorities in implementing structural economic reforms.

On 1 November 2017, the EU-Mongolia Partnership and Cooperation Agreement (PCA) will enter into force. It provides the EU and its Member States on the one hand and Mongolia on the other with a general framework for expanding their bilateral relations. Its implementation will strengthen political, economic and sectoral cooperation across a wide range of policy fields. It is an expression of our mutual commitment to enhance bilateral cooperation.

The EU Ambassador will also sign the Establishment Agreement that will allow the European Union to open its Delegation in Ulaanbaatar. The Delegation will strengthen the EU's relationship with Mongolia, and is a sign of the EU's long-term commitment to the people of the country.

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