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      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     СЗХ-НД МӨНГӨ УГААХТАЙ ТЭМЦЭХ НЭГЖИЙГ БАЙГУУЛАХААР БОЛЛОО WWW.MONTSAME.MN НИЙТЭЛСЭН:2018/09/20     БНХАУ: ОЛОН ТАЛТ, ЧӨЛӨӨТ ХУДАЛДААГ ДЭМЖИЖ БАЙНА WWW.BLOOMBERGTV.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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IMF accusations of US protectionism “rubbish” – Trump’s top trade official www.rt.com

Warnings of Washington’s trade protectionism by the International Monetary Fund (IMF) chief Christine Lagarde and others are “rubbish,” according to US Secretary of Commerce Wilbur Ross.
 
The billionaire investor, hired by President Trump as commerce secretary to curb the $500 billion trade deficit inherited from Barack Obama’s administration, has accused US trade partners of protectionism in an interview with The Financial Times.
 
“The response is very simple: we are the least protectionist of the major areas. We are far less protectionist than Europe. We are far less protectionist than Japan. We are far less protectionist than China,” Ross told the newspaper.
 
“We also have trade deficits with all three of those places. So they talk free trade. But in fact what they practice is protectionism. And every time we do anything to defend ourselves, even against the puny obligations that they have, they call that protectionism. It’s rubbish,” he added.
 
Last week, Christine Lagarde said global economic growth has sped up, but "protectionism is clearly a threat," she warned. The IMF chief did not single out any country.
 
According to Ross, Lagarde and others are trying to protect the system that let others enjoy trade surpluses, covered by the US deficit.
 
“We like it that way. So we don’t want you to disrupt it. That’s what they are really saying when you strip it away,” Ross said.
 
“That’s the bottom line. But that’s not going to happen. Our tolerance for continuing to be the deficit that eats the surpluses of the whole rest of the world — the president is not tolerant of that anymore,” he added.
 
Donald Trump took the Oval Office pledging to reduce the trade deficit, create jobs in the US and return manufacturing to the country.
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Housing price index increased in short term www.montsame.mn

Ulaanbaatar /MONTSAME/ Tenkhleg Zuuch LLC reports on the March results of the “Housing Price Index” study conducted independently at the request of the Bank of Mongolia.
The research shows that the general index of housing price was 1,01 in March, by 1.0 per cent up than in January 2013, basic consideration period of the research. The index increased by 0.17 percent compared to the previous month. The general index increased by 0.10 per cent compared to the starting period of this year, and dropped by 3.34 per cent compared to the same month of previous year.
According to the National Statistics Office data, the housing price index declined by 4.8 per cent compared to the first quarter of 2016 and by 0.2 per cent compared with the previous quarter. The biggest change of the housing price index took in Songinokhairkhan district, showing a decrease by 6.6 per cent. Over the last 7 years, the housing price index across the 6 central districts of Ulaanbaatar city showed a drastic increase by 83 per cent.
Tenkhleg Zuuch LLC has calculated Housing Price Index by applying Hedonic regression methods and the calculation was based on the information available for 4906 old and new houses supplied for sale at the real estate market of Ulaanbaatar for the particular month. The Price index indicators classified by new and old houses, are as below:
The new house price index was at 1,15. This shows a growth by 0.98 percent compared to the previous month. The index dropped by 0.06 per cent compared to an earlier period of this year, and by 0.61 per cent compared to the same month in previous year.
The old house price index was at 0.91. This shows a decline by 8.7 percent in January 2013. The index dropped by 0.99 percent compared to the previous month, and by 6.10 per cent compared to the same month in previous year.
B.Ooluun

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Three TAXES to increase starting MAY 1 www.gogo.mn

Parliament of Mongolia approved amendments to the 2017 State budget, with proposed tax increases last week in accordance with the Staff-Level Agreement between Mongolia and International Monetary Fund on Three-Year Extended Fund Facility. In regards, following tax increases will take effect on May 1, 2017. 
VEHICLE EXCISE TAX
Majority or the 75-86 percent of vehicles registered in Mongolia are outdated and more than 10 years old, causing negative impacts on the environment and increasing amount of air pollution.
Therefore, the tax rebate for hybrid vehicles, LPG-fueled vehicles, and electric vehicles is set to be decreased by 50 percent while excise taxes on vehicles will be increased depending on the engine capacity and aging. 
For instance, excise taxes on vehicles with engine size less than 4500 sm³ will be added by 3-15 percent and vehicles with engine size more than 4501 sm³ will be added by 40-250 percent. 
Thus, vehicle excise tax revenue expects to increase MNT 33.8 billion and reach MNT 57.3 billion. 
INTEREST REVENUE WILL BE TAXED
Interest income on personal savings accounts will be taxed from May 1, 2017. Previously, it was said to be imposed on only owners of savings more than MNT 100 million. However, it was decided to be applied to all owners of savings. 
Owners of savings will pay 10 percent of taxes on their interest income. 
Thus, it expects to increase budget revenue as follows;
MNT 43 billion in 2017, 
MNT 67 billion in 2018, 
MNT 70 billion in 2019. 
CUSTOMS TAX ON IMPORTED TOBACCO WILL BE INCREASED
Customs tax on imported tobacco is now at 5 percent. Minister of Finance noted that the customs tax on tobacco is lower than limits set by the World Trade Organization and it shall be increased up to 30 percent. Therefore, customs tax on imported tobacco will be increased by 30 percent. 
Thus, it expects to increase state revenues approximately by MNT 20 billion in 2017, MNT 26 billion in 2018 and MNT 27 billion in 2019.

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Iron ore price in free fall www.mining.com

The Northern China import price of 62% Fe content ore slumped again on Monday to trade down 3.7% at $64.60 per dry metric tonne according to data supplied by The Steel Index.

It's the lowest price since November 3 last year and brings the pullback over the past month to over 30%.

Chinese GDP figures released on Monday showed an economy growing at a faster than expected pace of 6.9% on the back of a surge in fixed investment, particularly in the construction sector. While steel output growth in top consumer China has underpinned prices, the market has become fixated on additional supply growth and stockpiles at record highs.

Iron ore price in free fall
“I think we will see the iron ore price to return to where you’d expect it to be based on the supply curve, which is around that $60 to $65 per tonne mark historically"
According to Umetal's survey of the 42 largest ports in China, the total iron ore inventory now top 133 million tonnes, the highest ever. Elevated stocks have not dampened importer enthusiasm however with total imports for the first quarter climbing 12% to 271 million tonnes after the second highest cargo volumes recorded in March of 95.6m tonnes.

New supply worries
Noted iron ore bull, Nev Power, CEO of world number four producer Fortescue Metals Group, said last week the pullback in the price should be expected:

“I don’t think anybody should be surprised to see the iron ore price come back to more sustainable levels,” Mr Power said.

Others are more pessimistic, FocusEconomics in its April survey of analysts and institutions shows a median forecast price of iron ore of $57 a tonne during the final quarter of this year. For Q4 2018, analysts expect prices to moderate further to average $54 over the three month period.

Dutch bank ABN Amro is the most optimistic calling for a $75 average towards the end of 2017 while London-based Investec sees an average of $71.50 over the course of this year. Year to date iron ore is averaging $83.60.

BMO Capital Markets see prices correcting sharply from today's levels to average $45 by the start of 2018 while Oxford Economics expects iron ore to average $72 this year but correct sharply to $51 in 2018.

According to estimates from Rio Tinto, world number two producer, 296m tonnes of additional seaborne supply have entered the market in the last three years.

The Melbourne-based diversified giant forecasts supply growth to slow but a combined 100m tonnes from the world's top six producers are expected to be added to supply this year (40m tonnes) and next.

It's not only low-cost miners from Brazil and Australia that are clouding the outlook, but domestic Chinese supply which have fallen by 140m tonnes from its peak to around 260m per year, are now making a comeback Rio Tinto said last month.

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US Energy Secretary worried about coal www.mining.com

In a memo issued late Friday to his chief of staff, the US Energy Secretary Rick Perry expressed concerns about the diversification of power sources and the stability of the country’s grid.

“We are blessed as a nation to have an abundance of domestic energy resources, such as coal, natural gas, nuclear and hydroelectric, all of which provide affordable baseload power and contribute to a stable, reliable and resilient grid,” Perry is quoted as saying in the missive, which was initially obtained by Bloomberg. However, he adds that experts have “highlighted the diminishing diversity of our nation’s electric generation mix and what that could mean for baseload power and grid resilience.”

By “diminishing diversity,” Perry is referring to recent closures of coal-fired and nuclear power plants caused, in part, by the low cost of natural gas and a booming clean energy industry. When he talks about reliability, he points to a supposed intermittence in generation from sources such as wind and solar.

The Energy Secretary instructed his second-in-command to develop a 60-day review that looks at how regulatory burdens, subsidies, and tax policies “are responsible for forcing the premature retirement of baseload power plants.” He also wants to know whether wholesale energy markets adequately compensate actions that, in his view, strengthen grid resilience such as on-site fuel supply usually provided by coal and nuclear plants.

“Perry’s effort suggests that the [Trump] administration may be looking for other ways to keep coal plants online,” Bloomberg’s account concludes.

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Mongolian basketball team became Asian University 3x3 Basketball Champion www.gogo.mn

Mongolian basketball team became a champion of the third edition of Asian University 3x3 Basketball Championships, which was held in Malaysia during April 12 to 16, 2017. 
Mongolian team won over the Philippines by 21:14 and Iran by 21:14 in group matches. Moreover, they battled against Indonesia in the quarter-final and won with 16:14 scores.
Mongolian team won a gold medal after beating China with 17:13 in the finals match. 
Also, player Naranbaatar won the title in the dunk contest. 
In the first edition of the Asian University 3x3 Basketball Championships 2015, the Mongolian team placed second and China won titles in their home. 
In the second edition which was held last year, Mongolia settled for a silver medal again and China became the champion.

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EU project to help Mongolia to export honey products www.montsame.mn

Ulaanbaatar /MONTSAME/ A team of an EU project “Support to the Modernization of Mongolia's Standardization System” has worked in Selenge aimag on April 12-13. The team was composed of project team leader Henk De Pauw, expert Andre Francois and other members. Their mission of the Selenge working tour was to assist with exporting honey and honey products made in Selenge aimag to the European Union.
The project team met with B.Munkhtur, Director of Food and Agricultural Department of Selenge province to exchange views on research works of exporting honey products to the European Union.
Moreover, the team visited some honey farms of Shaamar soum and co-held workshop on “Exporting honey products to the European Union” in cooperation with the Governor's Office and Food and Agriculture Department of Selenge province. The workshop was attended by over 100 honey farmers came from Suhkbaatar, Zuunburen, Shaamar, Tsagaanuur and Eruu soums of the province.

B.Amarjargal

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Mortgage Corporation’s special purpose entity to release securities www.montsame.mn

Ulaanbaatar /MONTSAME/ On April 13, the Financial Regulation Commission (FRC) granted a financial activity license to ‘MIC Active Twelve Months”, a special purpose entity established by the "Mongolian Mortgage Corporation“ company last August and registered its securities. 
‘MIC active twelve months” company is releasing mortgage loan guaranteed securities of 2.7 million with nominal value of MNT100 000 and 30-year term. The Commission assigned the two companies to insure the loan package for long term and in accessible way, meeting the interest and demand of the insured.
During its meeting, FRC resolved 30 issues, including merger approval of “Standart Agriuculture Group” LLC to “Uujimkhangai” JSC, “Anumargad erdene nonbanking financial institution”LLC to “Diamond capital nonbanking financial institution” LLC, “Tuusjam nonbanking financial institution” LLC to “Ashivtuvshin finance nonbanking financial institution” LLC. The commission also granted licenses to five nonbanking financial institutions and 8 savings and credit cooperatives.

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Land farmers meet to discuss 2017 goals www.montsame.mn

Ulaanbaatar /MONTSAME/ During his opening speech at the National Symposium of Land Farmers which took place last Friday, April 14, P.Sergelen, Minister of Food, Agriculture and Light Industry informed that 458 thousand ha land will be cultivated for sowing in 2017.

In particular, 381.6 thousand area will be sowed this spring inclusive of 362.1 thousand ha for wheat, 15.1 thousand ha for potatoes, 8.5 thousand ha for vegetables, 23.2 thousand ha for fodder, 28.6 thousand ha for oil plants and 1 thousand ha area for fruit.

From this, the agricultural industry has set an objective to harvest 498.5 thousand tons of grain including 477.6 thousand wheat, 166.5 thousand tons of potatoes, 102.1 thousand tons of vegetables, 46.4 thousand tons of fodder, 22.8 thousand tons of oil plants and 4 thousand tons of fruit.

To reach this goal, some 1360 entities and individuals are preparing for seed and oil plant sowing on the national level and 468 entities and 35 thousand households for vegetable, potato and fruit planting.

Attended by over 500 land farmers from the capital city and 21 provinces of Mongolia, the symposium addressed the 2017 objectives of the industry and measures and technologies to be adopted including ‘Young Land Farmer’ and ‘Agricultural technology leasing’ projects.
Kh.Aminaa

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Steel, stimulus drive China's strongest economic growth since 2015 www.reuters.com

China's economy expanded faster than expected in the first quarter as higher government infrastructure spending and a gravity-defying property boom helped boost industrial output by the most in over two years.

Growth of 6.9 percent was the fastest in six quarters, with forecast-beating March investment, retail sales and exports all suggesting the economy may carry solid momentum into spring.

But most analysts say the first quarter may be as good as it gets for China this year, and worry Beijing is still relying too heavily on stimulus and "old economy" growth drivers, primarily the steel industry and a property market that is showing signs of overheating.

"The Chinese government has a tendency to rely on infrastructure development to sustain growth in the long term," economists at ANZ said in a note.

"The question we need to ask is whether this investment-led model is sustainable as the authorities have trouble taming credit. We need to watch closely whether China’s top leadership will send a stronger signal to tighten monetary policy shortly."

Even as top officials vowed to crack down on debt risks, China's total social financing, a broad measure of credit and liquidity in the economy, reached a record 6.93 trillion yuan ($1 trillion) in the first quarter -- roughly equivalent to the size of Mexico's economy.

At the same time, spending by the central and local governments rose 21 percent from a year earlier.

That helped goose the pace of growth in the first quarter well above the government's 2017 target of around 6.5 percent, and pipped economists' forecasts of 6.8 percent year-on-year.

Such a strong bolt from the gate could see Beijing once again meet its annual growth target, even if activity starts to fade later in the year, as many analysts widely expect.

"Main indicators were better than expected...which laid a good foundation for achieving the full-year growth goals," statistics spokesman Mao Shengyong said at a news conference.

SAME OLD GROWTH DRIVERS?

Once again, China's policymakers leaned on infrastructure and real estate investment to drive expansion in the first quarter. Growth in both areas has accelerated from last year and helped offset slightly weaker growth in the services sector.

"Faster growth in industrial output is the primary factor in the first quarter surprise, and due mostly to higher value-added growth related to supply-side consolidation in heavy industry," said Brian Jackson, China economist at IHS Global Insight.

Real estate investment also remained robust in the first quarter, expanding by 9.1 percent on-year, and the pace of new construction quickened despite intensifying government measures to cool soaring prices.

Most analysts agree the heated property market poses the single biggest risk to China's economic growth, but predict the cumulative weight of property curbs will eventually temper activity, not produce an outright crash.

"Sales have started falling, which means tightening measures are starting to take effect," said Shen Jianguang, an analyst at Mizuho Securities in Hong Kong, noting that will start to drag on both the services and construction sectors.

More than two dozen cities announced new or additional property cooling measures in March and early April, after curbs late last year appeared to have little lasting effect.

Buoyed by a near 12 percent increase in housing starts, China produced a record amount of steel in March, Reuters data showed, though analysts say warning signs are flashing.

Rising inventory levels and recent falls in steel prices suggest output has been growing faster than China's actual demand, raising worries of a glut later in the year, which could heighten trade tensions with the U.S. and its other major trading partners.

INCOME GROWTH PICKS UP

There were also positive signs on the consumer front in Monday's data dump.

After slowing for five quarters, disposable income growth picked up to 7.0 percent in the first quarter, the fastest since the end of 2015.

Auto sales also showed signs of recovering after weakening in the first two months of the year after the government reduced subsidies on small cars.

Analysts are closely watching for signs that consumption is accounting for a greater share of China's economy, which would

not only make growth more resilient and broader based but also reduce the need for more debt-fueled stimulus and reliance on "smokestack" industries.

FOCUS ON STABILITY, THEN REFORMS

Though policymakers have pledged repeatedly to push reforms to head off financial risks and asset bubbles, the government is seeking to keep the economy on an even keel ahead of a major leadership transition in later this year.

China's central bank has gingerly shifted to a tightening policy bias in recent months, and is using more targeted measures to contain risks in the financial system, after years of ultra-loose settings.

It has bumped up interest rates on money market instruments and special short- and medium-term loans several times already this year and further modest increases are expected, especially if U.S. rates continue to rise.

"I think China should be directing the economy to slow down its growth in the long term...but on the contrary, growth is accelerating," said Hidenobu Tokuda, senior economist at Mizuho Research Institute in Tokyo.

"This is good for now but it makes it difficult to see how China's economic slowdown will land in the future. Uncertainties remain high."

(Reporting by Kevin Yao and Yawen Chen; Writing by Elias Glenn; Editing by Kim Coghill)

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