1 MONGOLIA-CHINA AGREE TO COLLABORATE IN INCREASING MEAT EXPORT WWW.MONTSAME.MN PUBLISHED:2018/09/21      2 U.S. AND MONGOLIA SEEK TO STRENGTHEN ECONOMIC RELATIONSHIP WWW.STRTRADE.COM PUBLISHED:2018/09/21      3 MONGOLIA, U.S. LEADERS DISCUSS BILATERAL TIES WWW.XINHUANET.COM PUBLISHED:2018/09/21      4 BELT AND ROAD SIGNIFICANT TO MONGOLIA, PEOPLE AROUND WORLD -- ACADEMIC WWW.ENG.YIDAIYILU.GOV.CN PUBLISHED:2018/09/21      5 PETRO MATAD UPDATES MONGOLIA EXPLORATION WWW.OGJ.COM PUBLISHED:2018/09/21      6 RIO TINTO’S EXIT FROM COAL PAYS OFF, TO RETURN $3.2B FROM SALES PROCEEDS TO SHAREHOLDERS WWW.MINING.COM PUBLISHED:2018/09/21      7 OPENING CEREMONY OF SAINSHAND SALKHIN PARK HELD WWW.MONTSAME.MN PUBLISHED:2018/09/21      8 ALIBABA’S MA SAYS TRUMP’S TRADE WAR ‘DESTROYED’ HIS PROMISE TO CREATE JOBS FOR 1MN AMERICANS WWW.RT.COM  PUBLISHED:2018/09/21      9 LEGAL DISPUTE OVER EMC OWNERSHIP COMES TO AN END WWW.ZGM.MN PUBLISHED:2018/09/20      10 ERDENES TAVAN TOLGOI REVENUE SURGES DUE TO HIGHER COAL PRICES WWW.NEWS.MN PUBLISHED:2018/09/20      НУРАХ ДӨХСӨН БАЙРУУДЫГ ШИНЭЧЛЭХ КОМПАНИ ОЛДОХГҮЙ БАЙНА WWW.ZGM.MN НИЙТЭЛСЭН:2018/09/21     МОНГОЛ УЛС ВАШИНГТОН, ПЁНЬЯНЫ ХЭЛЭЛЦЭЭРТ ЗУУЧЛАХАД БЭЛЭН ГЭДГЭЭ ЗАРЛАЛАА WWW.EAGLE.MN НИЙТЭЛСЭН:2018/09/21     УЛСЫН ХЭМЖЭЭНД 85.3 МЯНГАН ТОНН ТӨМС ХУРААН АВААД БАЙНА WWW.MONTSAME.MN НИЙТЭЛСЭН:2018/09/21     ЗГ: БУЦАЛТГҮЙ ТУСЛАМЖИЙГ УСНЫ НӨӨЦИЙГ САЙЖРУУЛАХ, ХЭРЭГЛЭСЭН УСЫГ БУЦААН АШИГЛАХАД ЗАРЦУУЛНА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/09/21     ҮСХ: УЛААНБААТАРТ АЖИЛЛАГЧДЫН САРЫН ДУНДАЖ ЦАЛИН УЛСЫН ДУНДЖААС 121.7 МЯНГАН ТӨГРӨГӨӨР ИХ БАЙНА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/09/21     МОНГОЛ УЛСЫН ИХ ХУРАЛ, ЕВРОПЫН ПАРЛАМЕНТ ХООРОНДЫН XII УУЛЗАЛТААР ХАМТАРСАН МЭДЭГДЭЛ ГАРГАЛАА WWW.DNN.MN НИЙТЭЛСЭН:2018/09/21     ТӨРИЙН АЛБАНЫ УДИРДАХ АЖИЛТНЫ УЛСЫН ЗӨВЛӨГӨӨН БОЛЖ БАЙНА WWW.UNUUDUR.MN НИЙТЭЛСЭН:2018/09/21     2019 ОНЫГ МОНГОЛ, АМЕРИКИЙН ЗАЛУУЧУУДЫН ЖИЛ БОЛГОНО WWW.EAGLE.MN НИЙТЭЛСЭН:2018/09/21     УУРХАЙЧДЫН АЖЛЫН БАЙР НЭМЭГДЭЖ, ЦАЛИН ӨСЧ БАЙНА WWW.GOGO.MN НИЙТЭЛСЭН:2018/09/20     “ЭРДЭНЭТ”-ИЙН 49 ХУВИЙН ӨМЧЛӨЛ ТОЙРСОН ХУУЛЬ ЗҮЙН МАРГААН ЭЦЭС БОЛЛОО WWW.ZGM.MN НИЙТЭЛСЭН:2018/09/20    

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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Starbucks to own 100% of its China stores after buyout deal www.bbc.com

 
Starbucks is to take full ownership of all its China outlets, after agreeing to buying out its joint venture partner for $1.3bn (£994m).
The deal will see it acquire the 50% stake it does not already hold in 1,300 stores in Shanghai and the provinces of Jiangsu and Zhejiang.
Starbucks already fully owns the other 1,500 outlets in China - its fastest-growing market outside of the US.
The coffee giant said the buyout was its biggest ever acquisition.
The announcement came as Seattle-based Starbucks announced net income fell 8.3% to $691.6m for the three months to July - only just matching market expectations.
The company also announced plans to close all 379 of its Teavana stores by the middle of next year because they had been "persistently underperforming".
Starbucks bought the tea brand for $620m in 2012, and plans to continue carrying the products in its main Starbucks stores.
Starbucks shares fell 5.5% to $56.24 in after-hours trading.
Chinese dreams
The latest results are the first under new chief executive Kevin Johnson, who took over from co-founder Howard Schulz in December.
Mr Johnson described the China buyout as part of the firm's "long game" to deal with cooling growth in the US.
The world's largest coffee chain is being affected by a reduced footfall in America's malls and high streets, as more consumers turn to shopping online or buying from meal kit sellers and convenience stores.
Same-store sales in the US rose by 5% last quarter. In China, there was 7% growth.
License deal
Starbucks already has a presence in 130 Chinese cities and hopes to expand its 2,800 stores to more than 5,000 outlets by 2021.
There are nearly 600 stores in Shanghai alone, the largest number of any city globally.
Meanwhile, Starbucks said it was offloading its 50% stake in all 410 outlets in Taiwan, meaning they will be fully owned by its joint venture partners. who pay the US firm license fees.
The firm made a similar move with its Hong Kong and Macau operations in 2011.
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Mongolia to draft science-based food safety policy www.montsame.mn

Ulaanbaatar /MONTSAME/ General Agency for Specialized Inspection will organize the fifth conference on food safety this October.

The ‘National Enquiry Laboratory on Food Safety’ academic conference will be held on October 13 with an aim to determine a food and drug safety policy based on science, research and facts.

The conference agenda includes topics such as research on food, bio preparations and raw materials, quality and safety study, challenging issues, plant protection, environmental study and radiation safety.

Scholars and researchers are invited to submit their academic articles and presentations before August 10.

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Glencore snaps up 49pc of Hunter Valley Operations in $US1bn deal www.theaustralian.com

UPDATE: Glencore has confirmed it had struck a $US1.139 billion deal to buy 49 per cent of the Hunter Valley Operations coal mines from Yancoal Australia and Mitsubishi.

The deal, which is conditional on approvals and the completion of Yancoal’s acquisition of Rio Tinto’s operating stake in HVO as part of a $US2.69bn deal struck last month to buy all of Rio’s Australian thermal coal, is expected to be completed within six months.

Under the deal, revealed by The Australian this afternoon, Glencore has also agreed to subscribe for $US300 million of Yancoal shares in an equity raising to fund Yancoal’s Rio purchase.

Glencore will be the exclusive marketing agent for HVO coal sales into Japan, South Korea and all other countries except China, Thailand, Taiwan and Malaysia.

Swiss miner and trader Glencore is close to finalising a $US1 billion deal to take a 49 per cent stake in the Hunter Valley Operations that Rio Tinto is selling to Chinese-backed Yancoal Australia as part of its exit of Australian thermal coal

The deal would give Glencore, who Yancoal last month beat in a late bidding auction for Rio’s Coal & Allied assets in New South Wales, access to marketing rights and cost savings that can be achieved with its neighbouring mines.

It would also extend Glencore’s position as the nation’s biggest miner of thermal coal, which is used in power stations.

For Yancoal, it gives access to the same cost savings and means it will not have to raise as much equity to complete its $US2.69bn purchase of the mines from Rio.

It is understood Glencore has agreed to buy a 16.6 per cent stake in the Hunter Valley Operations from Yancoal and a 32.4 per cent stake off Japanese trader Mitsubishi.

The deals are all subject to finalisation of Yancoal’s $US2.69bn purchase of Rio’s Coal & Allied operations in the Hunter Valley, which include HVO and the Mt Thorley-Warkworth mine (which is not thought to be part of the deal).

The price is not known, but based on a $US710 million deal Yancoal struck last month to buy Mitsubishi’s 32.4 per cent stake, it would be worth about $US1.1bn.

Glencore and Yancoal would jointly operate the mine and share marketing rights.

Yancoal went into a trading halt this morning “pending an announcement to the market in relation to a possible major transaction”, while its Hong Kong-listed, Chinese-controlled partner Yanzhou Coal said its board had approved the transfer of a 16.6 per cent interest in the Hunter Valley operations joint venture to an unnamed third party.

The Australian understands the third party is Glencore, which unsuccessfully tried to outbid Yancoal for the Rio assets, pushing the price up by $US240m from the original deal struck with Yancoal.

Glencore has also agreed to buy a Mitsubishi stake that Yancoal had previously agreed to buy.

Yanzhou also said it would also establish a joint venture to operate and manage the assets.

Neither Yancoal nor Glencore would comment further on the deal.

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UNDP, SDC and parliament hold a project board meeting www.montsame.mn

Ulaanbaatar /MONTSAME/ The board meeting of a project by UNDP, SDC and the Parliament took place on July 27, Thursday.

The ‘Strengthening of Local Self-Governing Bodies in Mongolia’ project is being-co-implemented by the United Nations Development Programme (UNDP), Swiss Agency for Development and Cooperation (SDC) and the Mongolian Parliament.

N.Enkhbold, Head of Parliamentary Standing committee on State Structure opened the meeting which addressed a report on project operations in the first half of 2017, and revision to the project operations in 2017.

In the first half of 2017, a memorandum of understanding has been signed with the Academy of Governance within the scope of an objective to institutionalize national training programmes for local elected representatives. Members of local Citizens’ Representative Khurals will be attending capacity-building training programmes. Moreover, the Cabinet Secretariat will be in charge of running the www.khural.mn website of Citizens’ Representative Khurals.

Then, Ts.Tsolmon, Secretary-General of Parliamentary Office briefed the meeting attendees about revisions to the project operations which became, according to him, necessary after some changes made to project finance. The revision proposal was given a nod by the board members.

UNDP Resident Coordinator Beate Trankmann, SDC Director Gabriella Spirli and corresponding Mongolian officials were present at the meeting.

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Turquoise Hill Resources: Catalysts Align In Its Favor www.seekingalpha.com

Since early June Turquoise Hill Resources (NYSE:TRQ) has been on a tear, as the stock has jumped from below $2.50 to $3.07 on July 25. This looks like the first time since the commodity super cycle hit a ceiling in early 2013 that a sustainable rebound is at hand. Copper started to slowly drop as early as 2011.

The giant economies of Europe and China are no longer putting downward pressure on copper as the global economic recovery remains in full swing. From earnings reports it suggests mining and materials stocks are entering a momentum phase.

One of several reasons I draw that conclusion was the way Freeport-McMorRan (NYSE:FCX) soared after its earnings report, where the company jumped 15 percent for the day. That was after failing to meet earnings expectations. But solid revenue and optimistic guidance gave the market what it wanted to hear, and the share price of Freeport upward momentum.

Turquoise Hill has its earnings report coming up in a few days, and I think it's going to continue to be rewarded from the recovery in copper prices.

Copper prices

Not too long ago copper was getting a temporary boost from what the market was calling the "Trump trade," a reference to his stated plans to build out and improve infrastructure in the U.S. That has changed to an improving outlook for China's economy, which of course plays directly into the benefit of Turquoise Hills and its Oyu Tolgoi flagship mine, which has China as its primary customer.

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Jeff Bezos Briefly Tops Bill Gates as the World's Richest Person www.bloomberg.com

A surge in Amazon.com Inc. shares Thursday morning in advance of the online retailer’s earnings report briefly propelled founder Jeff Bezos past Bill Gates as the world’s richest person.

Shares of the online retailer fell 0.7 percent to $1,046 at 4 p.m. in New York, after climbing as high as $1,083.31 four hours earlier, which gave Bezos a net worth of $92.3 billion. Gates had a net worth of $90.8 billion as of the Wednesday close.

Bezos remains ranked second on the Bloomberg Billionaires Index, behind the Microsoft Corp. co-founder. Gates, 61, has held the top spot since May 2013.

Amazon’s second-quarter earnings per share of 40 cents missed the lowest analyst estimate. The median estimate was for $1.42.

Bezos, 53, owns about 17 percent of Seattle-based Amazon, which had surged 40 percent this year through Wednesday, helping to add $24.5 billion to his net worth. He started 2017 as the world’s fourth-wealthiest person and has since surpassed Warren Buffett and Inditex SA founder Amancio Ortega, 81, who ranks third with $82.7 billion.

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Inaugural U.S.-Mongolia Energy Cooperation Dialogue on Energy Security and National Energy Policy www.state.gov

The U.S. Department of State hosted the inaugural U.S.-Mongolia Energy Cooperation Dialogue in Washington, D.C. on July 25, 2017, followed by meetings with energy technical experts on July 26. The discussions were led by Bureau of Energy Resources Acting Special Envoy and Coordinator for International Energy Affairs Mary Burce Warlick and Mongolia’s Director General of the Planning and Policy Department at the Ministry of Energy Chimeddorj Demchigjav.
 
During the dialogue, U.S. and Mongolian representatives exchanged views on national energy policies, best practices for managing an energy mix with diverse sources of energy, future cooperation between the United States and Mongolia, and opportunities for U.S. businesses in Mongolia’s energy sector. U.S. companies have shown a strong interest in partnering with Mongolia on a wide array of energy initiatives.
 
The visits with technical experts in Washington, D.C. on July 26, provided the delegation with additional information about the latest U.S. technologies and best practices for evaluating the feasibility of individual energy projects within an overall national framework.
 
For further information, contact Vincent Campos, Spokesperson for the Bureau of Energy Resources, at CamposVM@state.gov or visit www.state.gov/e/enr. You can also find information on Twitter at @EnergyAtState.
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7th roundtable meeting between Central Banks of Mongolia and China being held www.montsame.mn

Ulaanbaatar /MONTSAME/ With an aim to activate cooperation in the banking sector, 7th roundtable meeting between the central banks of Mongolia and PRC is taking place on July 27 and 28.
 
During the meeting, the central banks of both countries are expected to present their monetary policies and are discussing issues of exchange of currency. On July 6, the Bank of Mongolia extended the CNY 15 billion swap agreement with the People’s Bank of China to 2020. The economic cooperation of the two countries is further expanding. But the bilateral trade is mostly conducted using US Dollar. Therefore, the Deputy Governor of BoM B.Lkhagvasuren signified the importance of swap agreement on using MNT and CNY for bilateral trade.
 
Mr. B.Lkhagvasuren said “Mongolia has used 70 percent of the CNY 15 billion. But China has only spent MNT 500 million. Therefore, it is important to focus on increasing the usage of MNT in China. Presently, 12 Mongolian banks are cooperating with Chinese banks. Bank of China and ICBC Bank of China have their representative offices in Mongolia and haven’t officially opened a branch. We don’t have regulations for foreign banks to open a branch in Mongolia. Legal reforms are currently in process in our country and discussions on Law on Development Bank of Mongolia started taking place during the Parliament’s spring session. And a draft law on Commercial Banks will be discussed soon.”
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Russian airline first to sell tickets using ethereum blockchain www.rt.com

The Siberia-based S7 Airlines has teamed up with Russia's Alfa-Bank to start a blockchain platform for the automation of trade operations.

The new technology simplifies payments and has quicker settlement times between airlines and agents. The process that used to take two weeks can now be done in seconds.

“Implementation of the blockchain platform ethereum opens the door for optimization of business processes for both the carrier and its partners. Speed of computation has revved up from 14 days to 23 seconds. Thus, the airlines don't delay payment to an agent which receives the money shortly after the ticket is processed,” Alfa-Bank said.

In turn, agents can do away with termination payment security (TPS), which is typically used to eliminate the risk of non-payment.

Automation of the procedures speed things up and reduced the paperwork for the airline and agent. The new system makes sure there is a balance in an account before drawing a payment.

Blockchain also eliminates the human factor and boosts system reliability and transparency of trade operations.

“We have made the world's first flight ticket purchase through an open api (application programming interface) blockchain to a bank. I’m sure that the system will soon be used by most companies globally,” said Deputy CEO of IT Solutions at S7 Group Pavel Voronin.

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Geo-Database being developed to save exploration costs www.montsame.mn

Ulaanbaatar /MONTSAME/ In order to provide reliable and practical information to national and international investors of Mongolia, the Authority for Mineral Resources and Petroleum is starting to place data on geology, geochemistry, hydrogeology and locations on its website.

The geo-database is being established in frames of the Australia-Mongolia Program on Cooperation in Mineral Sector. “Unveiling geo-data will help lower the cost of mineral explorations. To provide information in globally compatible format, ‘Mongeokat” system is being developed”, said B.Baatartsog, Director of the Authority.

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