1 US TRADE WAR COULD COST GLOBAL ECONOMY $430 BILLION, IMF WARNS WWW.RT.COM PUBLISHED:2018/07/18      2 US PLANS G7 TALKS ON CHINA WWW.NHK.OR.JP PUBLISHED:2018/07/18      3 GOOGLE HIT WITH RECORD EU FINE OVER SHOPPING SERVICE WWW.BBC.COM PUBLISHED:2018/07/18      4 TURQUOISE HILL ANNOUNCES SECOND QUARTER 2018 PRODUCTION AND COMPLETION OF SHAFT 5 WWW.GOGO.MN PUBLISHED:2018/07/18      5 DEVELOPMENT OF BILL ON CIVIL SERVANT CODE OF CONDUCT FINALIZED WWW.GOGO.MN PUBLISHED:2018/07/18      6 CRUDE OIL EXPORTS GENERATED 94.3 BILLION WWW.GOGO.MN PUBLISHED:2018/07/18      7 MONGOLIAN PRESIDENT SUMMONS IRREGULAR PARLIAMENTARY SESSION WWW.NEWS.MN PUBLISHED:2018/07/18      8 JEFF BEZOS IS NOW WORTH MORE THAN BILL GATES AND LARRY PAGE COMBINED WWW.CNN.COM PUBLISHED:2018/07/17      9 APARTMENT COMPLEX FOR YOUNG FAMILIES UNDER CONSTRUCTION IN ERDENET WWW.MONTSAME.MN PUBLISHED:2018/07/17      10 NUM GRADUATES INVITED TO WORK FOR TOSHIBA CORPORATION WWW.MONTSAME.MN PUBLISHED:2018/07/17      ГЕРМАНЫ “ЧИНГИС ХААН” ХАМТЛАГ ИРЭХ ОНД МОНГОЛД ТОГЛОЛТОО ХИЙНЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2018/07/18     АНУ, ОХУ ХҮЙТЭРСЭН ХАРИЛЦААНДАА ЦЭГ ТАВИЛАА WWW.UBINFO.MN НИЙТЭЛСЭН:2018/07/18     ХУДАЛДААНЫ ДАЙН ХЯТАДЫН КОМПАНИУДАД НӨЛӨӨЛЖ ЭХЭЛЖЭЭ WWW.NEWS.MN НИЙТЭЛСЭН:2018/07/18     МОНГОЛД 92 ОРНЫ 9.6 МЯНГАН ГАДААДЫН ИРГЭН АЖИЛЛАЖ БАЙНА WWW.EAGLE.MN НИЙТЭЛСЭН:2018/07/18     ГАДААД ХУДАЛДААНЫ НИЙТ БАРАА ЭРГЭЛТ 6,3 ТЭРБУМ АМ.ДОЛЛАРТ ХҮРЧЭЭ WWW.DNN.MN НИЙТЭЛСЭН:2018/07/18     ЕВРОПЫН ХОЛБОО ЯПОН УЛСТАЙ ЧӨЛӨӨТ ХУДАЛДААНЫ ГЭРЭЭ БАЙГУУЛАВ WWW.MEDEE.MN НИЙТЭЛСЭН:2018/07/18     АЖ ҮЙЛДВЭРЖИЛТИЙН ЭРЧ СУЛАРЧЭЭ WWW.ZGM.MN НИЙТЭЛСЭН:2018/07/18     МӨНГӨНИЙ НИЙЛҮҮЛЭЛТ 3.8 ИХ НАЯД ТӨГРӨГӨӨР НЭМЭГДЖЭЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2018/07/18     ОЛОН УЛСЫН ИННОВАЦИЙН ИНДЕКСЭЭР МОНГОЛ УЛС 53-Т ЖАГСЧЭЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2018/07/17     ШАДАР САЙД НҮБ-ЫН ӨНДӨР ТҮВШНИЙ УУЛЗАЛТАД ОРОЛЦОЖ БАЙНА WWW.EAGLE.MN НИЙТЭЛСЭН:2018/07/17    

Events

Name organizer Where
"Open to Export" ICC WTO International business award ICC WTO London

NEWS

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Korean Air to plant trees in Mongolia to prevent desertification www.koreanair.com

 
Korean Air has been taking the lead in saving the Earth by volunteering for 14 consecutive years to plant trees in Mongolia.
 
From May 15th to 26th, more than 200 Korean Air employees will be cooperating with 600 local residents to plant trees in Mongolia. This activity is part of Korean Air’s ‘Global Planting Project’ which aims to prevent desertification of the city and save the environment. What was once a deserted area now has more than 110,000 trees planted and has been renamed ‘Korean Air Forest’. The forest is located at Baganuur, a city 150 kilometers east of Ulaanbaatar, the capital of Mongolia.
 
‘Korean Air Forest’ covers an area of 440,000 square meters and consists mainly of poplar trees, sea buckthorn and Siberian elms. The fruits of the sea buckthorn are used as ingredients of vitamin drinks. Thus planting trees not only makes the city greener but also contributes to increasing the incomes of local residents. The airline is focused on maintaining the forest well and has hired a local professional to look after it and to train local residents in supervision.
 
Moreover, Korean Air has been donating educational materials such as computers, desks and chairs to local schools which participate with the airline in the tree planting activity. Thanks to Korean Air’s continuous effort, residents’ determination to save the environment has grown tremendously and they have become ardent supporters of the annual planting activity.
 
Apart from tree planting, Korean Air has engaged in an array of programs in the different markets where it flies to assist communities in need. Utilizing its extensive global network, the airline has provided relief goods to countries such as Myanmar, Nepal, Japan and Peru when they were affected by natural disasters. Korean Air will continue to roll out corporate social responsibility programs at home and abroad, in support of protecting the environment, maintaining sustainable development and supporting local communities.
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Mongolia will play its own music in Belt and Road orchestra, says PM www.news.cgtn.com

 
The Prime Minister of Mongolia, Jargaltulga Erdenebat, praised the Belt and Road Initiative as a “major development milestone” and insisted Mongolia would play its role in the project, in an interview with CGTN after the close of a crucial Belt and Road Forum in Beijing this week.
 
“We all witness the global affairs on political, economic and social areas are not easy these days. And this uneasiness remains a major challenge to all of us in maintaining our collective and sustainable development goal,” Erdenebat‍ told CGTN's Dialogue with Yang Rui.
The Belt and Road Forum brought together the leaders of 29 countries as well as of the United Nations, the World Bank and the International Monetary Fund, he noted. "That already testifies that the Belt and Road Initiative has already emerged as a major international event and a major international development milestone.”
 
“Mr. Xi Jinping said it’s going to be an orchestra to be played by many different players from all over the world. In that sense, Mongolia, with her own musical instrument, with her own developmental agenda... will be playing our own music in this collective orchestra of the world.”
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'Trump Trade' turns to trepidation as investors unwind www.reuters.com

Investors were shelving rosy hopes for U.S. tax reform and rethinking strategies premised on Donald Trump's economic growth promises on Wednesday, as the President faced his loudest criticism yet over possible collusion between his election campaign and Russia.

From stocks to bonds to the U.S. dollar, a bevy of trades that have been fashionable since Trump's election last November, were getting dialed back or in some cases shredded as his reform agenda looked increasingly vulnerable amid the fallout from his firing last week of James Comey, the director of the Federal Bureau of Investigation.

The uncertainty about Trump's future increased in the last 24 hours over allegations Trump had sought to end Comey's investigation into ties between the president's first national security adviser, Michael Flynn, and Russia, and even some Republicans were now calling for a deeper probe into possible obstruction of justice.

The result was the harshest sell off yet in U.S. stocks since Trump was elected and a jettisoning of positions that were tied to the notion that his policies would stoke economic growth and inflation.

"The Trump Trade is over as of today," Ross Gerber, co-founder and CEO of Gerber Kawasaki Wealth and Investment Management, who said they have been selling for the past 45 days and continued to be bearish on risky assets today. "We've seen cracks all year, but today, this is the first institutional selling we are seeing."

Indeed, some "Trump trades" have been unwinding for weeks, especially in the bond and currency markets where bets on inflation risks and economic growth prospects are most prevalent.

"This has created opportunities for investors," said Richard Benson, managing director, co-head of portfolio investments, Millennium Global Investments, London, who said they had been short U.S. dollars against European currencies. "And right now, we're looking at these opportunities."

On Wednesday, one key indicator of the level of inflation five years from now fell to its lowest since late November. Meanwhile, the U.S. dollar, which had surged more than 5.0 percent after Trump's election, was effectively back to its Election Day level.

The real pain trade on Wednesday, though, was in stocks. Through the end of last week the S&P 500 stock index had gained more than 12 percent since Trump won the White House, and while the index has seen one other day since last November's election in which it fell by more than 1.0 percent, Wednesday's drop of 1.7 percent was its largest one-day fall in eight months.

"It doesn't mean that institutions are saying: 'its time to leave the U.S.', but for various reasons it's time to go to the sidelines," said Michael Purves, chief global strategist at Weeden & Co.

Julian Emanuel, executive director of U.S. equity and derivatives strategy at UBS Securities, said clients were "certainly concerned because it increases the uncertainty".

With Washington policymakers distracted by Trump's political problems, investors were betting on a longer timeline to get to tax reform.

"Immediately after the election, we asked our analysts to use lower forward-looking tax rates in their models, and now in the last couple of days I'm starting to think whether we should reverse that to assume the status quo for tax rates," said Edward Perkin, Chief Equity Investment Officer at Eaton Vance.

U.S. House Speaker Paul Ryan said on Wednesday that Republicans were determined to keep pursuing tax reform, although such efforts could be seriously hampered. Democratic Representative Jim Himes, a member of the House Intelligence Committee, told MSNBC that the "legislative agenda...(was) lying in ruins."

Investors have become increasingly bearish on US equities versus international assets in recent weeks, pulling a total of $11.2 billion from U.S.-based domestic stock funds, according to Thomson Reuters Lipper data, and instead stampeding into U.S.-based stock funds that invest in Europe.

“We have been contemplating an increase in international stocks to kind of hedge our U.S. equity bet," said Phil Blancato, CEO of Ladenberg Thalmann Asset Management in New York. "So we are very much remodeling our portfolios."

A longshot worry is the uncertainty that could be presented if Trump is actually impeached by the U.S. Congress. A small but growing number of Trump's fellow Republicans called for an independent probe of possible collusion between his 2016 campaign and Russia, and one mentioned impeachment.

Investors said that was not necessarily a market negative, if Vice President Mike Pence were to take over.

"Policy wise it might not make such a difference," said Frances Hudson, Global Thematic Strategist at Standard Life Investments in Edinburgh.

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Money supply slightly increases www.en.montsame.mn

 
Ulaanbaatar /MONTSAME/ According to the report of the Bank of Mongolia (BoM), the money supply (broad money or M2) has reached MNT 12.4 trillion at the end of April 2017, showing an increase by MNT 220.9 billion or 1.8 percent from the previous month and by MNT 1,892.8 billion or 18.0 percent compared with the same period of 2016.
At the end of April 2017, the national currency in circulation reached MNT 843.2 billion, up by MNT 45.9 billion or 5.8 percent from the previous month and by MNT 89.1 billion or 12.0 percent compared to the same period of 2016.
The amount of outstanding loan amounted to MNT 12.7 trillion in the reference period. This is a growth by 0.2 percent against the previous month and by 9.2 percent compared to the same period of 2016. At the end of April 2017, the principals in arrears reached MNT 1,009.3 billion, indicating a decrease by MNT 14.2 billion or 1.4 percent from the previous month, up by MNT 98.0 billion or 10.8 percent from the same period of 2016.
The non-performing loans in the bank system reached MNT 1 087.3 billion, up by MNT 51.8 billion or 5.0 percent from the previous month, up by MNT 13.4 billion or 1.3 percent from the same period of 2016.In April 2017, 4.9 million pieces of securities worth of MNT 178.4 billion were traded on the national stock market, up by MNT 46.2 billion or 34.9 percent from the previous month and by MNT 131.8 billion which is 3.8 times more from the same period of the previous year. The traded share number increased by 2.0 million or 69.1 percent from the previous month and decreased by 5.3 million pieces or 52.3 percent compared with the same period of the previous year.
In April 2017, the Top 20 index of the financial market was 12999.6, increased by 320.5 units from previous month and 1979.7 units from the same period of 2016.
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IMF Executive Board to discuss Mongolia's request next Wednesday www.en.montsame.mn

 
Ulaanbaatar /MONTSAME/ The International Monetary Fund Executive Board is scheduled to discuss Mongolia's request to implement Extended Fund Facility (EFF) during its meeting on May 24. Minister of Finance B.Choijilsuren was interviewed on this matter and other issues concerning the EFF program.
 
Has the meeting schedule of the IMF Executive Board been confirmed? Is there a guarantee that the meeting will not be delayed again?
 
Deputy Governor of Bank of Mongolia and I attended the spring meeting of Asian Development Bank on May 08, during which we met with relevant IMF officials and confirmed the meeting schedule.
 
Do initial agreements and funding remain the same? Would there be any change?
 
The total financing package within the EFF will be around USD5.5 billion. USD2.2 billion of it covers an extension of swap line of the People’s Bank of China with the Bank of Mongolia. IMF will provide loan of USD440 million with 15 year term. The loan will be less than 2 per cent interest and the loan principal will not be repaid over the first 5 years. The Asian Development Bank will grant a loan of USD900 million, of which USD600 million will be spent for recovering state budget deficit and USD300 million for funding programs and projects. The World Bank pledged USD600 million with less than 2 per cent interest and 15 year term and we agreed to spend USD440 million of it for recovering state budget deficit in 2017-2019. Japan and South Korea are expected to together provide loans of USD1.3 billion.
 
When programs and projects start to be implemented and when the funding is provided?
 
We will not implement it directly. Ministries are preparing feasibility studies of projects to use the loans. After completion of feasibility studies by second quarter of 2017 and in 2018-2019, the fundings will be disbursed.
 
A request to postpone the realization of increased excise tax on passenger vehicles has been submitted. Is it possible to accept the request?
 
An increase of 7 types of taxes in stages to raise budget revenue has been agreed in detail with IMF within the policy. Therefore, it cannot be changed by a group of people. IMF has 182 member countries and the Executive Board has 24 members. It is difficult to make all members understand our internal problems. Increased tax took effect from the beginning of this month. In connection to the excise tax increase, customs organization worked extended hours during the last working days of April and over 1000 hybrid cars were imported.
 
Concerning the EFF implementation, some people criticize that government has given the country’s economic freedom to foreigners. What is your comment on it?
 
The situation was very hard when the Government got its authority on July 30, 2016. Then, we asked assistance from IMF, which put its requirements to decrease budget deficit and create debt stability. We had no choice because, if we did not accept the IMF program, the economy would have been bankrupted. The EFF will have positive effects on the economy.
 
How fruitful was the Prime Minister’s visit to China or how much benefit will the economy get from the visit?
 
The Parliamentary Speaker visited China in autumn of 2016 and forwarded two requests; to increase the quota of our traditional export products in 2017-2018 and to give support by creating a market. During the Foreign Minister’s visit, China expressed its position to accept the requests and increased quota of coking coal and iron ore to be exported from Mongolia and their prices have grown up. The PM’s recent visit was a continuation and next step of this policy.
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Minister addresses 'ENERGY MONGOLIA - 2017' international conference www.en.montsame.mn

 
Ulaanbaatar /MONTSAME/ “I would like to assure investors and businesses on the stability of the current Government’s policy for the next 4 years”, remarked Minister of Energy P.Gankhuu as he delivered an opening speech at the annual ‘Energy Mongolia’ international conference & exhibition which is to take place on May 17-18 at the Corporate Hotel & Convention Center.
 
As 2017 marks the 95th anniversary of energy sector in Mongolia which is frequently called the ‘fireplace of homeland’, he extended his warmest wishes to the about 11 thousand staff working in the energy sector on the anniversary.
 
“I hope this conference serves as an effective platform for productive discussion practical cooperation among the energy sector representatives and foreign delegates”. Aiming to solve the challenges the energy sector is facing in Mongolia, facilitate constructive discussion on solutions, and attract investment, the international conference gathers about 300 international and local delegates representing over 50 organizations from Mongolia, the Russian Federation, the People’s Republic of China, the US, Germany, Switzerland and Thailand.
 
The energy sector of Mongolia, the driver of economic growth, is considered to have been established in 1922, with powering of athermal power facility with capacity of 24kW, fueled by mine bench coals delivered from Nalaikh mine. The commissioning of the plant is regarded as the start of the industry.
 
Afterwards, the first power plant came into operation in 1934, forming the ground for the future energy complex. In the following 70 years of the sector’s history, the capital city as well as main centers in the central region of the country were connected to the energy grid. As a result of implementation of the government’s policies for investment and development in the sector, well over 90 percent of the total population of Mongolia is now connected to integrated energy grid.
 
The Minister also touched upon the 2016-2020 action plan of government which states that a very targeted policy is to be implemented in the energy sector, and reflects several major projects to improve and renovate the sector.
 
Mongolia will start the implementation of a range of development projects namely Ulaanbaatar – Mandalgobi, Baganuur – Choir, Khushuut – Uyench power transmission lines, and capacity expansion works for Dornod Power Plant, Erdenet Power Plant and Thermal Power Plant No. 3 starting this year. In addition, development works are commencing this year for the completion of 50MW wind farms in Tsogttsetsii soum of Umnugobi aimag and in Sainshand soum of Dornogobi aimag.
 
 
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Ukraine to Block Russian Social Media in Sweeping Sanctions www.themoscowtimes.com

 
Ukraine will block several top Russian websites, including VKontakte and Odnoklassniki, social networks with broad popularity across the former Soviet Union.
 
On May 15, Ukrainian President Petro Poroshenko signed an order imposing new sanctions on Russia for three years, the Meduza news site reported. Among the entities facing restrictions under the sanctions is the Mail.ru Group, a major Russian internet company that owns VKontakte and Odnoklassniki.
 
Both sites have millions of users in Ukraine, and VKontakte maintains a server in the country. Last year, VKontakte boasted 53 percent of Ukraine's daily internet audience, while Odnoklassniki commanded 34 percent, internet researcher Kirill Mikhailov wrote on Twitter.
 
The order will also require Ukrainian internet providers to block all services of the Yandex internet company, besides its search engine, and the anti-virus companies Kaspersky Lab and DrWeb.
 
Ukraine also will impose asset freezes and broadcast bans on Russian television channels TV Tsentr, RBK, VGTRK, NTV-Plus, Zvezda, TNT, REN and ORT, the independent Novaya Gazeta newspaper reported. Additionally, it will block the Rossiya Segodnya Russian state media conglomerate, the RIA Novosti news site, a branch of the conglomerate, reported.
 
The order also blacklists the Aeroflot and Transaero airlines, the Rossiya and Gazprombank banks and the defense companies Russian Helicopters and Rosoboroneksport.
 
 
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MPRP nominates S.Ganbaatar as a candidate for the Presidential election www.gogo.mn

Assembly of Mongolian People`s Revolutionary Party to select its next presidential candidate was held yesterday. With the 65 percent of the voting result, S.Ganbaatar was announced as MPRP’s candidate for the Presidential election that will be held on June 26. 
Now the MPRP must register its next candidate at the General Election Committee within today. 
Based on some missing statements and other reasons, former presidential candidate of MPRP N.Enkhbayar was not allowed to run in the parliamentary elections.

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Turquoise Hill revenue surprise lifts shares 6% www.mining.com

 
Shares in Turquoise Hill (TSE:TRQ) rose sharply on Tuesday after the company announced better than expected revenues amid declining production at its massive Oyu Tolgoi copper and gold mine in Mongolia.
 
By the close in New York Turquoise Hill stock was changing hands at $2.81, up 6.2% on the day, bringing its year-to-date gains to more than 21%.
 
The Vancouver-based company said in a statement copper production at Oyu Tolgoi fell 16.3% during the first quarter compared to the final quarter 2016 while gold production declined 49%. Turquoise Hill said the drop was expected due to lower grade and recoveries at the lower end of the grade recovery curve.
 
Sales went in the other direction and the company recorded revenue of $237.5 million in Q1 which was 5.7% higher than Q4 last year reflecting a higher average selling price for copper and higher volumes of copper in concentrates sold. The Oyu Tolgoi concentrator amassed record average daily throughput for the quarter of 112,100 tonnes, up 5.1% compared to the December quarter.
 
Turquoise Hill is forecasting lower output at the open pit compared to last year of 130,000 – 160,000 tonnes of copper in concentrates during 2017. Gold in concentrate output of 100,000 ounces – 140,000 ounces is forecast for the full year.
 
$136.4 million was spent on the Oyu Tolgoi underground expansion during the quarter and the company awarded several large contracts during the quarter, with the largest for the decline material handling system.
 
More than $363 million has been spent on construction of the new mine so far and capital commitments for the year is an additional $872 million. Total capital outlay is around $5.3 billion with first production from the underground operation expected mid-2020.
 
Oyu Tolgoi is expected to be world's third-largest copper mine at peak production in 2025 with output of over 550,000 tonnes per year.
 
Turquoise Hill owns a 66% interest in Oyu Tolgoi in the Gobi Desert close to Mongolia's border with China with the government of the Asian nation holding the rest. Turquoise Hill is controlled by Anglo-Australian giant Rio Tinto (LON:RIO).
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Export surge as coal price increases www.en.montsame.mn

 
Ulaanbaatar /MONTSAME/ Some positive changes occurred in Mongolian economy in connection with the 100-120 percent increase in coal price on the global market against the same period of last year, reports the Bank of Mongolia.
 
Following the soaring coal price, Mongolia’s exports grew by 41 percent, said the Director of the Research and Statistics Department of the central bank, Mr D.Gan-Ochir. “Regarding this growth, as the foreign exchange flow has been increasing, the GDP rose by 4.2 percent compared to the same period of 2016. All of these have been resulting in alleviation of foreign debt burden, and stabilization of MNT rate against foreign exchange. Also, companies and individuals have been transferring their USD savings into MNT accounts”, he added.
 
The amount of non-performing loans has been decreasing as MNT rate stabilizes. Non-performing loans constituted 7.9 percent of total outstanding loans. The banks, which had been granting only consumption loan, started to allocate loans for mining and construction.
 
“All of the positive changes are thanks to the coal price increase and Mongolia’s cooperation with IMF”, said Mr Gan-Ochir.
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