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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IMF may soon be moving to China – Christine Lagarde www.rt.com

Head of the International Monetary Fund Christine Lagarde says the organization may move its headquarters from Washington DC to Beijing in a decade if the growth trend in China and other major emerging markets continues.

Changes in big emerging markets will be reflected in the IMF's voting structure, and the Fund will need to increase its representation in the region, according to Lagarde.

“Which might very well mean, that if we have this conversation in 10 years' time...we might not be sitting in Washington, DC We'll do it in our Beijing head office,” the Fund’s Managing Director said.

Lagarde highlighted that emerging economies are currently growing larger and more influential.

She added that the IMF's bylaws call for the institution's head office to be located in the largest member economy.

Since its establishment 70 years ago the IMF has always been located in the US. The US government has an effective veto over IMF decisions with a 16.5 percent share of its board votes.

According to analysts, China with growth rates forecast above six percent has a chance to overtake the US in gross domestic product during the next ten years and become the world's largest economy in nominal terms.

However, some experts, including IMF economists, argue that China already contributes more to global growth on a purchasing power parity basis, which adjusts for differences in prices.

The voting structure was last revised by the IMF in 2010, with China's share increased to 6.41 percent. The Fund is planning to set another review next year.

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Apple ordered to pay $506 million to university in patent dispute www.reuters.com

(Reuters) - A U.S. judge on Monday ordered Apple Inc to pay $506 million for infringing on a patent owned by the University of Wisconsin-Madison's patent licensing arm, more than doubling the damages initially imposed on Apple by a jury.

U.S. District Judge William Conley in Madison added $272 million to a $234 million jury verdict the Wisconsin Alumni Research Foundation won against Apple in October 2015. Conley said WARF is owed additional damages plus interest because Apple continued to infringe the patent, which relates to computer processor technology, until it expired in December 2016.

Apple is appealing Conley's ruling, according to court papers. An Apple spokesman did not immediately return a request for comment.

WARF sued Apple in 2014, alleging processors found in some versions of the iPhone infringe on a patent describing a "predictor circuit," which improves processor performance by predicting what instructions a user will give the system. University of Wisconsin computer science professor Gurindar Sohi and three of his students obtained the patent in 1998.

Cupertino, California-based Apple denied any infringement during a 2015 jury trial and argued the patent is invalid. Apple also urged the U.S. Patent and Trademark Office to review the patent's validity but the agency rejected that bid.

WARF brought a separate lawsuit against Apple in 2015, alleging chips in later versions of the iPhone infringe the same patent. Conley said he would not rule in that case until Apple has had an opportunity to appeal the 2015 jury verdict.

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Mongolian and Chinese delegates agree on promoting “Tea Road Tourism” www.montsame.mn

Ulaanbaatar /MONTSAME/ The Tea Road, a joint project of Mongolia, China and Russia for promoting tourism, has been chosen as a priority project to be implemented in frames of the three countries’ cooperation under the Agreement on Establishing Economic Corridor. The project was also discussed during the Second Ministerial Meeting for Tourism of Mongolia, Russia and China, took place on June 21 in Ulan-Ude, Russia.

“Khukh Mongolyn Udurlug” event, with an aim to promote the Tea Road Project, was held last weekend in Ulaanbaatar, attracting about 400 delegates from China.

The sides exchanged ideas on enhancing tourism along Tea Road through promoting the Tea Road tourism brand. In the ancient times, Tea Road used to be another trade route to connect the three neighboring nations. Now it passes through 10 cities of Mongolia, Russia and China.

During the event, delegates agreed on appointing the Third Ministerial Meeting for Tourism in Ulaanbaatar.

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China's iron ore imports from N.Korea double www.nhk.or.jp

China's imports of North Korean iron ore in the first half of this year more than doubled from the same period a year ago.

Chinese customs authorities say the country purchased 11.5 million dollars' worth of iron ore from North Korea in June. That's down 1.7 percent from the same month last year.

But, imports in each month from January through May recorded year-on-year increases.

Imports in the first half reached 86 million dollars, 2.4 times the amount in the same period the previous year.

Purchases of iron ore from North Korea are banned in principle by a UN Security Council sanctions resolution, but are permitted if the transactions exclusively serve livelihood purposes.

In February, China announced it would stop buying coal from the North for this year in line with another UN Security Council resolution.

Coal exports have been North Korea's main source of foreign currency.

China's total iron ore imports from the North last year amounted to less than 10 percent of its coal purchases.

NHK's reporter says the North wants to cover the drop in foreign currency earnings generated from coal shipments with exports of iron ore to China.

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Copper price surges to 2-year high www.mining.com

Copper futures trading on the Comex market in New York raced higher on Tuesday on renewed optimism about demand from top consumer China and indications of tighter global mine supply.

Copper for delivery in September jumped to a high of 2.8540 a pound ($6,292 tonne) in early afternoon trade, up 4.3% on yesterday's close to the highest since mid-May 2015. Copper's 2017 year to date gains in percentage terms now top 13% and the red metal is trading 28% higher than this time last year.

TC/RCs are a good indication of conditions in the spot market and rates have now fallen by 10% from the start of the year
While Chinese imports of refined copper dropped in June and is down 18% over the first half of 2017 to 2.23m tonnes, shipments of copper concentrate continue to strengthen jumping 23% in June from the month before to 1.41m tonnes.

Another sign that primary copper supply is tightening treatment and refining charges levied by smelters for concentrate are declining. TC/RCs paid by mining companies are a good indication of conditions in the spot market and rates have now fallen by 10% from the start of the year to around $80 a tonne and are well below the price floor set by China's major refiners for the third quarter.

Supply disruptions at some of the world's biggest mines including BHP's Escondida mine in Chile earlier this year and ongoing strike action at Freeport McMoRan's Grasberg operations in Indonesia are also boosting the price.

Workers at Grasberg last week extended their strike for a fourth month to end August. Freeport's temporary exporting licence is coming up for renewal in October, a bargaining chip used by Jakarta as it negotiates with the Phoenix-based company about divesting a majority stake in its Indonesian subsidiary.

Shares in Freeport jumped more than 15% to a 16-month high on Tuesday after the $21.5 billion company announced revenues that topped estimates and progress on talks with the Indonesian government. Grasberg was forecast to produce 680,000 tonnes of copper this year making it the world's second largest copper mine after Escondida.

Copper mining companies were trading higher across the board on Tuesday with world number three producer Glencore rising 4% in London trading. Diversified giants BHP gained 3.7% in New York trading and Rio Tinto received a 5% bump. Gains were more modest for Southern Copper Corp, Anglo American units trading in New York jumped 5.8% and Poland's KGHM jumped 4.4%.

Beijing boost
The economy of China, responsible for nearly half the world's consumption of copper, expanded at an annual rate of 6.9% in the second quarter against expectations of a slight decline and at a quicker pace than Beijing's own target of 6.5% growth for 2017.

In seasonally-adjusted quarter on quarter terms, growth was even more significant, picking up from 1.3% to 1.7%. If the trend continues, this year would be the first time since 2010 that the Chinese economy grew faster than the year before.

Industrial production data for June released today also pointed to a significant improvement. Growth in industrial output picked up from 6.5% year on year to 7.6% led by greater electricity and steel production. Bloomberg consensus forecasts pointed to no acceleration for Chinese industrial output.

Despite Beijing's tightening of lending and other measures to cool the property market, construction starts surged by more than 14% in June, providing further support for commodity-intensive sectors which continue to expand at a faster rate than the broader measure of industrial production.

The copper price is seen as a bellwether for metals markets and industry as a whole thanks to its widespread use in construction, the power sector, manufacturing and transportation.

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Caterpillar earnings beat estimates, shares hit five-year high www.mining.com

Shares in the world's largest mining and construction equipment maker Caterpillar (NYSE:CAT) jumped Tuesday, touching a five-year high in early trading, as the company posted better than expected earnings for the second quarter and bulldozed its way to another outlook upgrade.

Second-quarter revenues were up nearly $1 billion from a year ago, with earnings per share 40 cents higher as well.

CAT now expects adjusted earnings per share to come in at $5, significantly higher than the $3.75 it had forecast just three months ago and almost doubled the $2.90 it had originally projected for 2017.
In terms of full-year guidance, the Peoria, Illinois-based company now expects adjusted earnings per share to come in at $5, significantly higher than the $3.75 it had forecast just three months ago and almost doubled the $2.90 it had originally projected for the year.

Full year sales meanwhile will be between $42bn-$44bn, up from the $38bn-$41bn range it had previously penciled, driven by a continued rebound in mining and construction, the two key industries it serves.

"We anticipate making targeted investments in initiatives … including enhanced digital capabilities and accelerating technology updates to our products," CEO Jim Umpleby said in a statement.

As a global supplier of mining and construction equipment, Caterpillar is considered a reliable bellwether of economic activity.

That is why many were happy to hear the machinery giant is seeing improving demand, especially from the construction sector, in most regions.

Sales in North America, Caterpillar’s largest market, were up 7%, mostly due to recovering demand from the mining and energy industries.

In the Asia Pacific region, its third-biggest market, increased by 23% boosted by higher demand for construction equipment from China.

The machinery maker is going ahead with the planned move of its Peoria headquarters to the Chicago area, though most of the 12,000 manufacturing jobs will stay in Peoria, it said in April.

The company’s shares climbed 5% in pre-market trading and were still trading high (+4.7%) to $113.30 at 11:52 am in New York.

Watch Caterpillar Group President and Chief Financial Officer Brad Halverson discuss the company's second-quarter 2017 financial results:

 
 
 
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Electric Mini to be built in Oxford www.bbc.com

A fully electric version of the Mini will be built at the Cowley plant in Oxford, BMW has said.
The carmaker said the model would go into production in 2019, with Oxford the main "production location" for the Mini three-door model.
However, the electric motor will be built in Germany before being shipped to Cowley for assembly.
BMW said it had "neither sought nor received" any reassurances from the UK on post-Brexit trading arrangements.
Last year, the government faced questions about the "support and assurances" given to Nissan before the company announced that new versions of its Qashqai and X-Trail would be made in the UK.
And there have been reports that Toyota agreed to invest in the UK after receiving a letter reassuring the Japanese carmaker over post-Brexit arrangements.
'Vote of confidence'
About 360,000 Minis are made each year, with more than 60% of them built at Oxford. But BMW has built up an alternative manufacturing base in the Netherlands amid concerns about Britain's suitability as an export hub after Brexit.
BMW has warned about the damage of Brexit uncertainty, and in May chief executive Harald Krueger said the company had to remain "flexible" about production facilities.
UK Business Secretary Greg Clark hailed BMW's announcement as a "vote of confidence" in government plans to make Britain "the go-to place in the world for the next generation of vehicles". On Monday, he set out plans to invest in development of battery technology in the UK.
Mr Clark met BMW's head of sales and marketing, Ian Robertson, at the company's headquarters in Munich in January and March this year. The two also held meetings at Westminster in March and June.
David Bailey, professor of industry at Aston University, said the true test of the global car industry's desire to invest in the UK would come next year: "I don't think it [BMW's decision] tells us much about Brexit and the form of trade barriers we may face in the future.
"The big decisions will be about future models [which would have redesigned bodies], both at Mini and at companies like Vauxhall when they announce their new models in the next couple of years."

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IMF revises up China's growth forecast for 2017, 2018 www.xinhuanet.com.cn

KUALA LUMPUR, July 24 (Xinhua) -- The International Monetary Fund (IMF) on Monday revised up China's growth forecast for 2017 and 2018 to 6.7 percent and 6.4 percent respectively.

The updated World Economic Outlook report, which came days after China posted a stronger-than-expected second quarterly performance, was a reflection of a solid first quarter underpinned by previous policy easing and supply-side reforms, including efforts to reduce excess capacity in the industrial sector, the IMF said.
China has set its full-year growth target at "around 6.5 percent." The 6.7-percent forecast will leave the world's second-largest economy on a par with its growth level in 2016.
The fund also revised up China's economic forecast for 2018 by 0.2 percentage point to 6.4 percent, citing expectations that China may maintain high public investment and delay fiscal adjustment to meet its target of doubling the 2010 real gross domestic product (GDP) by 2020.
But the IMF also warned against strong credit growth that may come with rising downside risk to medium-term growth.
Maurice Obstfeld, chief economist of the IMF, recommended China go through a very important rebalancing process, which will inevitably entail a slowing path of growth.
He said China's recent moves to redress non-performing loans and a coordinated financial oversight overhaul are welcome.
The revision followed an April upgrade by the IMF on China's GDP growth forecast to 6.6 percent and 6.2 percent for 2017 and 2018 respectively, 0.1 percentage point and 0.2 percentage point higher than its forecast in January.

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President Battulga Called on Politicians and Public Servants www.gogo.mn

On July 24, the President of Mongolia Khaltmaagiin Battulga called on politicians, public servants and their relevant people on offshore account.
President’s call states: “Some politicians, public servants and their relevant people in Mongolia have been widely criticized for hiding their bribery, illegal profit and dirty money in offshore account to avoid taxes. The public media has uncovered news that some of their dirty money has already turned into luxury real estate.
List of 42 countries is considered as offshore financial centers by the International Monetary Fund and the Economic Cooperation Organisation. According to the International Consortium of Investigative Journalists’ report, a total of 49 Mongolian citizens have offshore accounts in these 42 countries.
Politicians, public servants and their relevant people, who are having offshore accounts to keep their money to avoid taxes, fueling public hesitation and harming people’s belief in justice. Mongolia did not have specific laws or regulations on having an offshore account until 2017. Therefore, I would like to call on the politicians, public servants and their relevant people who have offshore account to take back and transfer your money from offshore account into Mongolia.
As the President of Mongolia, I would like to call on the politicians, public servants and their relevant people who are holding offshore account to close down their offshore accounts and transfer the money into Mongolian bank within 49 days from July 24, 2017.
The people who refused to fulfill this requirement and did not transfer their money into Mongolian bank will be investigated and face legal obligation”.

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EU Plans Delegation in Mongolian Capital to Enhance Ties www.nytimes.com

The European Union plans to open a delegation in Mongolia this year, the 28-nation group said Tuesday, in a move that will expand its relationship with the resource-rich country wedged between China and Russia.

The decision to have a presence in the capital, Ulaanbaatar, marks a milestone in European-Mongolian relations, and will help enhance political dialogue and cooperation between Europe and Mongolia, the EU said in a statement.

High Representative Federica Mogherini said Mongolia has "an important role in a complex region, with a unique geostrategic position," according to the statement.

Following a peaceful democratic revolution in 1990 that removed it from the Soviet orbit, Mongolia has sought for decades to expand trade and diplomatic relations with "third neighbors" other than Russia and China, two powers that have historically exerted enormous political and economic influence.

The landlocked country of 3 million people boasts vast mineral wealth but has struggled in recent years to court foreign investment due to plunging commodity prices and high-profile disputes between the government and large investors such as mining giant Rio Tinto.

The government has also been weighed down by massive debt and recently obtained a $5.5 billion bailout led by the International Monetary Fund.

Earlier this month, Mongolia elected a populist business tycoon and ex-judo champion as its new president. In a runoff election, Khaltmaa Battulga of the Democratic Party edged out his establishment opponent, Miyegombo Enkhbold of the Mongolian People's Party.

Battulga said after his victory that he would boost ties with China and Russia but also seek to expand ties with "third neighbors."

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