1 IRKUTSK REGION SUPPLIES USD 31 MILLION PRODUCTS TO MONGOLIA WWW.MONTSAME.MN PUBLISHED:2018/11/20      2 27 PARLIAMENT MEMBERS SUBMIT PETITION ON CABINET DISSOLUTION WWW.ZGM.MN PUBLISHED:2018/11/20      3 AIRBNB IS USING WHAT3WORDS TO LIST STAYS WITH MONGOLIAN NOMADS WWW.TECHCRUNCH.COM PUBLISHED:2018/11/20      4 LOCAL PRECIOUS METAL ASSAY LABORATORY PURIFIES 99 KG OF GOLD WWW.MONTSAME.MN PUBLISHED:2018/11/20      5 LEGISLATOR OF MONGOLIA'S RULING PARTY SUBMITS PROPOSAL ON DISMISSING GOVERNMENT WWW.XINHUANET.COM PUBLISHED:2018/11/20      6 SHOCK DECISION: CHINA CLOSES BORDER TO COAL IMPORTS FROM MONGOLIA WWW.NEWS.MN PUBLISHED:2018/11/20      7 STRATEGY INTRODUCED TO FOSTER PRIVATE SECTOR IN WESTERN MONGOLIA WWW.MONTSAME.MN PUBLISHED:2018/11/20      8 MONGOLIA TO STRENGTHEN ECONOMIC TIES WITH RUSSIA WWW.XINHUANET.COM PUBLISHED:2018/11/19      9 VOLKSWAGEN TO SPEND $50 BILLION ON ELECTRIC CAR 'OFFENSIVE' WWW.CNN.COM PUBLISHED:2018/11/19      10 HABITABILITY OF MONGOLIA UNDER THREAT FROM CLIMATE CHANGE WWW.ADELAIDENOW.COM.AU PUBLISHED:2018/11/19      ЭРЧИМ ХҮЧНИЙ ИХ АЧААЛАЛ 973 МВТ-Д ХҮРЧЭЭ WWW.EAGLE.MN НИЙТЭЛСЭН:2018/11/20     ЗАСГИЙН ГАЗРЫГ ОГЦРУУЛАХ БИЧИГ ӨРГӨН БАРЬСНЫ ДАРАА "ГЭРЭГЭ" БОНДЫН ХАНШ БУУРЛАА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/11/20     ХАЙНАНЬД ЗУГААЛАХ ГЭСЭН МОНГОЛЧУУД УЛААН-ҮҮДЭЭС НИСЭХ ТАСАЛБАРЫГ ХУУ ХАМЖ БАЙНА WWW.UNUUDUR.MN НИЙТЭЛСЭН:2018/11/20     ГАШУУНСУХАЙТ БООМТ: ЖОЛООЧ НАРЫН МЭДЭЭЛЛИЙГ УРЬДЧИЛАН ЯВУУЛАХ БАЙДЛААР АСУУДЛЫГ ШИЙДВЭРЛЭХЭЭР БНХАУ-ТАЙ ТОХИРОЛЦЛОО WWW.GOGO.MN НИЙТЭЛСЭН:2018/11/20     ЗАМЫН НӨХӨӨС, 100 ГАРУЙ ТӨРЛИЙН РЕЗИНЭН БҮТЭЭГДЭХҮҮН ДОТООДОД ҮЙЛДВЭРЛЭЖ БАЙНА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/11/20     АЛТНЫ ОЛБОРЛОЛТ ЭДИЙН ЗАСГИЙГ ДЭМЖИЖ БАЙНА WWW.ZGM.MN НИЙТЭЛСЭН:2018/11/20     МОНГОЛЫН АНХНЫ ХУВИЙН ХӨРӨНГИЙН БИРЖИЙН ХОЁР ДАХЬ БҮТЭЭГДЭХҮҮН: “ПАРК ТАУН” БОНД WWW.GOGO.MN НИЙТЭЛСЭН:2018/11/20     МОНГОЛ, ОХУ-ЫН ТЭЭВРИЙН САЛБАРЫН ХАМТЫН АЖИЛЛАГААГ ӨРГӨЖҮҮЛНЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2018/11/20     БНХАУ-ЫН ОЛОН УЛСЫН ИМПОРТЫН ҮЗЭСГЭЛЭН БНХАУ-ОХУ-ЫН БИЗНЕСИЙН ХАРИЛЦААГ ӨРГӨЖҮҮЛЛЭЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2018/11/19     АМЧАМ МОНГОЛ 2018 ОНЫ ЖИЛИЙН ТАЙЛАНГИЙН ХУРЛАА АМЖИЛТТАЙ ЗОХИОН БАЙГУУЛЛАА WWW.IKON.MN НИЙТЭЛСЭН:2018/11/19    

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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MPP revises rulebook and action plan www.montsame.mn

Ulaanbaatar /MONTSAME/ The 28th Congress of the Mongolian People’s Party is continuing on the second day at the Central Cultural Palace.

On November 20, the 1,309 attendees of the Congress discussed and adopted revisions to the Party’s Rule and action plan.

The revised rule reflects a change in the number of the members of the MPP Board and the Conference, the party’s executive structure. It was agreed that 30 percent of the Conference members will represent primary units of the party and the women’s quota will be increased to 30 percent as well.

Remaining agenda of the Congress includes appointment of new leadership of the party and the Communique of the Congress.

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Marvell Technology to buy rival chipmaker Cavium for $6 billion www.reuters.com

(Reuters) - Chipmaker Marvell Technology Group Ltd (MRVL.O) said on Monday it would buy smaller rival Cavium Inc (CAVM.O) for about $6 billion, as it seeks to expand its wireless connectivity business in a rapidly consolidating semiconductor industry.

Shares of Marvell were down 0.8 percent to $20.14, while Cavium was up 7 percent at $81.14 in early trading.

Chief Executive Matthew Murphy, who took the top job a year ago, has been focusing on Marvell’s networking business to counteract declining demand for its chips used in hard disk drives of personal computers.

Murphy last year replaced former CEO Sehat Sutardja and President Weili Dai - a husband-wife team who co-founded the company - after an audit committee questioned their management style and hedge fund investor Starboard Value LP made a host of demands.

Analysts say the new leadership is preparing a number of important new product launches for later this year after refreshing 25 products in 18 months.

The deal is Murphy’s first acquisition at the company.

“With Marvell facing secular challenges on its core chip business, this acquisition is a smart strategic move which puts the company in a stronger competitive position for the coming years,” said GBH Insights analyst Daniel Ives.

A buyout of Cavium would give a boost to the networking ambitions of Marvell, which has clients such as network giants Cisco Systems Inc (CSCO.O) and Juniper Networks (JNPR.N).

Marvell and Cavium combined would be able to better compete with bigger rivals Intel Corp (INTC.O), Qualcomm (QCOM.O) and Broadcom (AVGO.O), Stifel analyst Kevin Cassidy said.

In the last two years, the chip industry has witnessed a series of deals as companies try to gain market share in emerging areas such as automotive technologies and connectivity.

The most recent is a bid by Wi-Fi chipmaker Broadcom for rival Qualcomm for a whopping $103 billion in what could be one of the biggest technology deals ever.

Marvell’s offer of $84.15 - based on the stock’s close on Friday - represents a premium of 11 percent to San Jose, California-based Cavium’s close, according to a Reuters calculation.

Marvell will offer $40 per share in cash and 2.1757 of its shares for each Cavium share.

The exchange ratio was based on a purchase price of $80 per share, Marvell’s share price prior to the first media report of the transaction on Nov. 3.

The chipmaker plans to fund the deal with a combination of cash on hand from the combined companies and $1.75 billion in debt financing, the company said.

Goldman Sachs & Co LLC was the financial adviser to Marvell, while Qatalyst Partners LP and J.P. Morgan Securities LLC were the financial advisers to Cavium.

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Rio Tinto's M&A madness www.mining.com

Some companies are good at takeovers. Berkshire Hathaway Inc. Chairman Warren Buffett has used well over a hundred acquisitions over decades to help leverage $1,200 of savings from his newspaper round into one of the world's largest business empires.

Rio Tinto Group isn't one of those companies. Indeed, it's hard to find an acquisition since its 2000 takeover of Australian iron ore miner North Ltd. that's not been a top-of-the-market catastrophe.

That should make investors nervous about the prospect that a big new lithium deal could be forthcoming.

Rio Tinto is working with advisers on a bid for a stake in Soc. Quimica & Minera de Chile SA, people familiar with the matter told Jack Farchy, Dinesh Nair and Thomas Biesheuvel of Bloomberg News on Friday.

SQM, as it's known, has been on a tear, with shares more than doubling this year alongside a lithium carbonate price that's tripled since the start of 2013. A purchase of the 32 percent stake held by Potash Corp. of Saskatchewan Inc. would be worth about $4.8 billion at current prices.

If you think you've seen this movie before, it's because you have — and it's never ended well. Aluminum prices rallied more than 50 percent in the two years before Rio Tinto fended off Alcoa Inc. in a $38.1 billion bid for Canada's Alcan in 2007. Over the subsequent 24 months, the metal slipped close to its lowest levels in two decades, and Rio ended up being bailed out of its debt problems by Aluminum Corp. of China Ltd.

As if that experience wasn't enough, management were back three years later for another bite at a hot commodity. With the takeovers of Riversdale Mining Ltd. and Coal & Allied Industries Ltd. in 2010 and 2011, Rio Tinto sought to take advantage of then-booming demand for coking coal (up 62 percent during 2010) and thermal coal (up 50 percent). The former was disposed of three years later for about 2 percent of its $3.7 billion purchase price and is now the subject of a fraud claim by the U.S. Securities and Exchange Commission. Coal & Allied was sold earlier this year at an equity value of about a third what Rio Tinto and its partner Mitsubishi Corp. had originally paid.

Even a less prominent deal like the purchase of BHP Billiton Ltd.'s interest in Richards Bay Minerals hasn't panned out well. During 2011, prices for its main product, titanium dioxide, climbed 43 percent, according to the U.S. Geological Survey. Since the $1.7 billion deal in 2012, they've mostly been in an extended slump. Last year, earnings from the division that includes Richards Bay, on South Africa's east coast, were less than a quarter of their level in the year of purchase.

All this should be a potent reason for Chief Executive Officer Jean-Sebastien Jacques to avoid taking a dip in SQM's Chilean salt lakes. As Gadfly has argued, the market for lithium isn't likely to be that tight over the medium term, despite current price exuberance. If Jacques wants to make a bullish bet, he's far better off spending money on Rio Tinto's own Jadar deposit in Serbia, which the company claims could be among the world's biggest.

Granted, Jacques may have learned from his predecessors' missteps. Getting into SQM's takeover data room would give Rio Tinto insight into the company's operations and a better understanding of the still-obscure lithium market in a way that would assist Jadar — a far better bet than an outright takeover, Bernstein analyst Paul Gait argued last week.

Shareholders had better hope that's right. For the $5 billion or so he would need to buy Potash Corp. out of SQM, Jacques could get a majority stake in Alcoa Inc., a company that Gadfly has contended would have far more attractive prospects. For all Rio Tinto's problems with aluminum takeovers, the current Alcoa is focused on more attractive upstream assets and generates more than twice SQM's Ebitda from an enterprise value that's only two-thirds as big.

Over the years, Rio Tinto's major acquisitions have proved an eerily prescient contrarian indicator for commodities. When they buy, it's a good idea to sell.

For the sake of his own reputation and that of his company, the best thing Jacques could do with this deal would be to walk away.

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ADB Asian Development Bank : Extends Assistance to Sustain Education Quality, Access in Mongolia www.4-traders.com

ULAANBAATAR, MONGOLIA (21 November 2017)- The Asian Development Bank's (ADB) Board of Directors has approved a $50 million loan to help sustain access to and quality of pre-primary, primary, and secondary education in Mongolia, as continued economic difficulties pose challenges to the provision of quality education services in the country.

'Significant cuts in the education budget for 2017 and beyond constrain the government's capacity to mitigate further deterioration of education services,' said Asako Maruyama, Education Specialist at ADB's East Asia Department. 'This would result in lost opportunities for pre-primary, primary, and secondary education, especially for children from disadvantaged backgrounds, unless some mitigating measures are implemented.'

With declining foreign direct investment and falling commodity prices, Mongolia's economic growth has slowed, from 17.3% in 2011 to 1.0% in 2016. The slowdown has led to large revenue shortfalls and cuts in government investment, requiring the government to adopt the Economic Recovery Plan supported by the International Monetary Fund and reduce public spending further. The education budget has been cut to a minimum, only enough to keep schools and kindergartens operating.

Meanwhile, seats in schools and kindergartens have increasingly become unavailable due to the growth in the school and kindergarten-aged population, which has been outpacing the construction and expansion of schools and kindergartens. During 2009-2015, enrollments in pre-primary education doubled, while the number of kindergartens increased only 1.5 times. Likewise, enrollments in primary and secondary education rose by 7.8% during 2012-2015, but only 13 schools were built. The gap in enrollment capacity has been widening particularly in Ulaanbaatar because of disproportionate population growth caused by internal migration. Of the 33 schools operating in three shifts in the country, 30 are in Ulaanbaatar.

The quality of education also suffers. The curriculum reform, which started in school year 2013 from primary education, remains incomplete without new curriculum for senior secondary education and reliable student learning assessment system. Adequate teaching and learning materials accompanying the new curriculum have not been developed or distributed to schools on time. Moreover, teachers, school managers, and local education administrators have received little training on the new curriculum.

The project aims to minimize these negative effects during this difficult economic period by narrowing the gap in the enrollment capacity of schools and kindergartens, and supporting the curriculum and associated assessment system reforms, provision of teaching and learning materials, and training of teachers, school managers, and local education administrators. It will also strengthen systems for planning and managing education services. The project will directly benefit about 15,000 children enrolled in 35 newly constructed or expanded schools and kindergartens.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration. Established in 1966, ADB is celebrating 50 years of development partnership in the region. It is owned by 67 members-48 from the region. In 2016, ADB assistance totaled $31.7 billion, including $14 billion in cofinancing.

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Mongolian kids hope Harumafuji stays in sumo world www3.nhk.org.jp

Children in Mongolia say they hope a scandal-hit sumo champion who hails from their country will continue to compete in the world of Japanese wrestling.

The grand sumo champion Harumafuji, who is of Mongolian-descent, is alleged to have assaulted a lower-ranking wrestler and fellow Mongolian Takanoiwa.

Young residents in the Mongolian capital Ulaanbaatar, where sumo is a popular sport, gather weekly to learn the art of Japanese wrestling.

On Monday, 12 children ranging in age from 9 to 15 attended a lesson which focused on wrestling techniques and sumo bouts.

The children expressed their admiration for Harumafuji, who they described as one of the most popular sumo stars in Mongolia.

One 12-year-old boy said that he wanted to become a wrestler like Harumafuji who is renowned for his speed and skill in sumo bouts.

Another 11-year-old boy said that he believed Harumafuji will continue to be a good wrestler and that he hopes the Japanese public will support him.

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The British company opens OTR tire repair service in Mongolia www.mongolianbusinessdatabase.com

With more than forty years’ experience and repair systems installed across all seven continents, Monaflex is the industry leader in providing equipment for the repair and vulcanisation of damage in all tyres, ranging from the largest OTR earthmovers to the smallest truck tyre and it opened its official business with Mongolian partner Uran Tusul LLC last week.

H.M.Ms.Catherine Arnold an Ambassador of the UK, Mr.Algaa President of MNMA, Mr.Ser-Od I, Founder & CEO of MBD and B2B Mongolia, Mr.Matt Summers, Director of Operations of Monaflex UK, Mr.D.Urantusul, Director General of Uran Tusul LLC and Mr.Kenneth Brown of the Lee Masters who will lead the operation in Mongolia were attended the opening ceremony and introduced the technology.

Matt Summers of Monaflex said "We are pleased to open the business with Uran Tusul our partner in Mongolia based on our advanced technology which was discovered a long time research and effort. Our vulcanised repair method is proven technology that is best in this market and we provide a "lifetime" service guarantee on specific tire we repair.

I am sure this operation in Mongolia will demonstrate its cost savings and efficiency to the customers and will promote the country's environmental protection and part of the economy as overall".

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Russia targets strategic Chinese energy market www.rt.com

Russian oil major Rosneft has inked a deal with Chinese partner CEFC Energy for crude oil deliveries starting next year. It is part of the companies’ long-term agreement announced earlier this year.

According to the agreement seen by TASS, Rosneft will supply CEFC with 60.8 million tons of oil annually until 2023. The price of the oil would be pegged to the global crude market.

The agreement covers the development of exploration and production projects in Siberia. The two companies plan to cooperate in refining, petrochemicals and crude trading.

CEFC expects to receive up to ten million tons of ESPO (Eastern Siberia-Pacific Ocean pipeline) crude from Russia’s Far East next year; an unknown source told Reuters, adding the rest would be Urals grade and a smaller amount of Sokol crude. Two months ago CEFC agreed to buy a 14.16 percent stake in Rosneft for $9.1 billion.

According to the Russian producer, the deal will increase direct supplies of crude oil to the “strategic Chinese market and ensure a guaranteed cost-efficient export channel for the company's crude sales.”

Russian exports to China have more than doubled over the past six years, up by more than 550,000 barrels a day. The country began supplying China with crude using the Skovorodino-Mohe branch of the ESPO pipeline in 2011. That followed agreements between Rosneft, Transneft, and China National Petroleum Corporation’s (CNPC).

In 2014, Rosneft and CNPC inked a 25-year oil deal worth $270 billion under which the Russian company is expected to supply 360.3 million tons of crude to China.

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Amazon holiday hiring is reaching sky-high levels — this year's tally will be about 120,000 www.businessinsider.com

With Thanksgiving only a few days away, American consumers and retailers are gearing up for the annual post-Turkey Day holiday spending bonanza. In preparation for the madness, Amazon has said it plans to hire some 120,000 seasonal employees at sites in 33 US states.

The e-commerce giant is bringing in extra people to work in its warehouses and customer service centers, and to work with some of its Prime service offerings, including Prime Pantry, which delivers everyday packaged goods to consumers. As we can see in this chart from Statista, the number of seasonal employees Amazon hires has grown considerably since 2012 as e-commerce has taken off.

Amazon seasonal workers have an entire culture of their own and include a group of traveling workers nicknamed "CamperForce." Primarily made up of retirees, the group lives in recreational vehicles and works 3 to 4 months in the fall and winter in preparation for the holidays. 

This year's seasonal hires will be in addition to the massive number of people Amazon has already added to its workforce. The company's employee base swelled by 159,500 people in just three months between the end of June and the end of September this year.

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MNT 100 thousand fine imposed on lack of documentations in foreign nationals www.montsame.mn

Ulaanbaatar /MONTSAME/ The Immigration Agency notifies foreign nationals residing and traveling in Mongolia about the compulsion of carrying their passports and other documents at all times.

In specific, Law on Legal Status of Foreign nationals states that foreign nationals who are staying in Mongolia for business or personal reasons are obliged to carry their passport and residence permit provided by the authority at all times. If a foreigner is not carrying passport or identification equaling to that, he shall be fined with MNT 100 thousand.

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November 20, 2017 trading report www.mse.mn

On November 20, 2017, 672,766 shares of 35 firms listed as Tier I, II, and III were traded. 18 firms’ shares increased in price, 14 decreased and 3 remained unchanged. Gonir JSC /GNR/ was the top performer, increasing 15.00 percent, whereas Frontier Land Group JSC /MDR/ was the worst performer, decreasing 6.38 percent.

On the secondary market for government bonds, 1,764 bonds with a value of MNT175.9 million were traded.

The MSE ALL Index increased by 1.13 percent to stand at 1,192.19 points. The MSE market cap stands at MNT 2,326,077,401,850.

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