1 US-MONGOLIA 'THIRD NEIGHBOR TRADE ACT' ON THE WAY WWW.THEDIPLOMAT.COM PUBLISHED:2018/11/17      2 CHINA'S FIGHT AGAINST SMOG MAKES PALLADIUM 2018'S BEST METAL WWW.MINING.COM PUBLISHED:2018/11/17      3 MILLENNIUM CHALLENGE CORPORATION PRESENTS GMS LICENSES WWW.MONTSAME.MN PUBLISHED:2018/11/17      4 MONGOLIA CALLS FOR GLOBAL ATTENTION ON CLIMATE CHANGE WWW.NEWS.MN PUBLISHED:2018/11/17      5 ADB OPENS A NEW WASTEWATER TREATMENT PLANT IN ARVAIKHEER, MONGOLIA WWW.AGENPARL.EU PUBLISHED:2018/11/17      6 CHINA TO BOOST COOPERATION WITH INDIA, MONGOLIA: DEFENSE MINISTER WWW.GLOBALTIMES.CN PUBLISHED:2018/11/17      7 DEATH ON MONGOLIA’S ‘COAL ROAD’ WWW.NEWS.MN PUBLISHED:2018/11/17      8 MONGOLIA SHAKEN BY WIDENING LOAN SCANDAL WWW.ASIA.NIKKEI.COM PUBLISHED:2018/11/17      9 MONGOLIA’S UNEMPLOYMENT FALLS BY 2.2 PERCENT WWW.NEWS.MN PUBLISHED:2018/11/16      10 MEETING MEAT DEMAND: MONGOLIA TO TRADE 17.9 PERCENT OF LIVESTOCK WWW.NEWS.MN PUBLISHED:2018/11/16      БНСУ-ЫН АЖ АХУЙН НЭГЖҮҮДИЙН АУТСОРСИНГ ЗАХИАЛГЫГ ГҮЙЦЭТГЭХ ЗАЛУУЧУУДЫГ СОНГОН, ШАЛГАРУУЛНА WWW.UNUUDUR.MN НИЙТЭЛСЭН:2018/11/17     НҮҮРСНИЙ ЭКСПОРТ 10 ХУВИАР ӨСӨЖ, 31.3 САЯ ТОНН БОЛОВ WWW.GOGO.MN НИЙТЭЛСЭН:2018/11/17     СУДАЛГААГААР ЖДҮ ЭРХЛЭГЧИД ЗЭЭЛИЙН ХҮҮНИЙ ЗАРДАЛ ХАМГИЙН ИХ ХҮНДРЭЛ УЧРУУЛДАГ ГЭЖ ХАРИУЛЖЭЭ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/11/17     ERDENE RESOURCE DEVELOPMENT: ХАЙГУУЛЫН ЗАРДАЛ III УЛИРАЛД 42 ХУВИАР БУУРСАН WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/11/17     ГОРХИ, ТЭРЭЛЖИЙН БАЙГАЛИЙН БОХИРДОЛД АНХААРАЛ ХАНДУУЛЖ ЭХЛЭВ WWW.MONTSAME.MN НИЙТЭЛСЭН:2018/11/17     ИРЭХ БААСАН ГАРАГТ ХОТЫН ДАРГЫГ ОГЦРУУЛАХ ЭСЭХИЙГ ХЭЛЭЛЦЭНЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2018/11/17     “АМГАЛАН” ХОТХОНД БАЙРЛАХ ГЭРТЭЭ КАННАБИС ТАРЬЖ, УРГУУЛЖ БАЙСАН ТУРК ИРГЭНИЙГ БАРИВЧИЛЖЭЭ WWW.MEDEE.MN НИЙТЭЛСЭН:2018/11/17     ӨНӨӨДӨР АВТОМАШИНЫ ДУГААРЫН ХЯЗГААРЛАЛТ ҮЙЛЧЛЭХГҮЙ WWW.EAGLE.MN НИЙТЭЛСЭН:2018/11/17     ГАШУУНСУХАЙТЫН НҮҮРСТЭЙ МАШИНЫ ЦУВАА 120 КМ БОЛЖЭЭ WWW.EAGLE.MN НИЙТЭЛСЭН:2018/11/16     ТАТВАРЫН ОРЛОГО 32.2 ХУВИАР ӨСӨЖ, ТӨСВИЙН ТЭНЦЭЛ 341.9 ТЭРБУМ ТӨГРӨГИЙН АШИГТАЙ ГАРЛАА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/11/16    

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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Softbank's profit surges www3.nhk.or.jp

 
Telecom giant Softbank Group has logged a record net profit in fiscal 2016, which ended in March. Its officials say strong performance of the group's domestic operation drove the result.
 
Sales were about 78 billion dollars. That's up slightly from the level for the previous year.
 
Net profit tripled to 12.5 billion dollars. It's the first time the figure topped 1 trillion in yen terms.
 
Executives say earnings were also boosted by the sale of part of the firm's stake in the Chinese online retail giant Alibaba Group.
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Tesla starts taking orders for premium solar roofs www.reuters.com

 
Tesla Inc (TSLA.O) on Wednesday began taking orders for its solar roof tiles, a cornerstone of Elon Musk's strategy to sell a fossil-fuel-free lifestyle under the brand name of its luxury electric vehicles.
 
Tesla said the product, which generates solar energy without the need for traditional rooftop panels, will be pricier than a conventional roof but will look better and ultimately pay for itself through reduced electricity costs.
 
The solar roof tiles were unveiled in October as Musk sought to convince shareholders of the benefits of combining his electric vehicle maker with SolarCity, the solar installer run by his cousins.
 
Tesla acquired SolarCity in November, and has been working to remake a money-losing company that was selling traditional solar systems into a premium energy brand. To date, other companies have had little market success with attempts to incorporate solar technology directly into roof tiles. It remains unclear whether the products will appeal to consumers as much as Tesla's electric vehicles do.
 
To get in line for a solar roof, homeowners must put down a $1,000 deposit via Tesla's website. There, they can also calculate the estimated upfront cost of a solar roof.
 
A 1700-square-foot roof in Southern California, with half the roof covered in "active" solar tiles, would cost about $34,300 after a federal tax credit, according to the calculator. Tesla estimates such a roof could generate $76,700 of electricity over 30 years.
 
The company said its solar roofs would cost between 10 and 15 percent less than an ordinary new roof plus traditional solar panels.
 
But Jim Petersen, chief executive of PetersenDean Inc, which installs about 30,000 new roofs plus solar a year, estimated that a 1700-square-foot roof with new solar panels, including the tax credit, would cost about $22,000, well below the Tesla website's estimate. Costs vary depending on roof type.
 
Glass tiles will be available in the United States later this year, beginning with gray smooth glass and black textured glass versions, Tesla said. Slate and Tuscan styles will be introduced in 2018. Overseas markets will receive the products next year.
 
Tesla said it expects the product to be popular in locations beyond where its SolarCity subsidiary currently operates, and plans to expand installation crews accordingly.
 
Tesla will manufacture the tiles at its solar factory in Buffalo, New York. Production will start "very slowly," Musk told reporters on a conference call, adding he expects robust demand.
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ISDEF Expo 2017 - Israel www.mongolianbusinessdatabase.com

We are happy to announce that WE WILL BE EXHIBITING at ISDEF 2017, which will take place on June 6th-8th at the Tel-Aviv Convention Center, Israel.

ISDEF 2017 is a great opportunity to see our new products, meet with colleagues and business partners, get acquainted with the latest and newest in defense and homeland security technology and more. 

Please contact us at 77109911, 98994787, 99066062 or contact@mongolianbusinessdatabase.com for more information and registration.

 
 
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Labour selects John Grogan to contest Keighley seat at General Election www.keighleynews.co.uk

(Mr.John Grogan is the Chairman of Mongolian-British Chamber of Commerce, very close business partner/"friend" of MBD and its business delegations to UK)

- JOHN Grogan is to reprise his battle to wrest Keighley from Tory control.

He has been selected by Labour to contest the Parliamentary seat at the General Election, on June 8.

In 2015, he failed in his bid to unseat sitting Conservative MP Kris Hopkins, who was returned with a 3,053 majority.

But Mr Grogan said this week he was confident the polls nationally would tighten in the coming weeks and that he was looking forward to a "robust but civilised" campaign.

"I'm delighted to be standing again in Keighley," he said.

"I was asked to put forward my name in a couple of safe Labour seats, but I wanted to stand my ground and fly the party flag in Keighley and Ilkley once again.

"The constituency is 23rd on the national list of target seats for Labour and if we are to get rid of the Conservative majority in Parliament, it is crucial that it is a Labour gain on June 8."

Mr Grogan said he first campaigned for Labour in Keighley in 1979, when the late Bob Cryer stood and took the seat by just 78 votes.

And he began his latest campaign today with the constituency's last Labour MP, Ann Cryer, exactly 20 years after her election victory and the party's national success.

Mr Grogan, 56, who lives at Burley-in-Wharfedale, was MP for Selby from that same year until 2010.

"When we were in Parliament together Ann and I voted the same way on 95 per cent of votes," he said.

"As we remember that great victory in 1997 we of course are also looking forward to the coming campaign.

"I anticipate some robust discussions on policy in the next five weeks, but I'm sure the local campaign will be civilised and courteous as it was last time.

"I expect the national polls to tighten as the campaign goes on and electors begin to look beyond the Conservatives' mantra of 'strong and stable'.

"There is not much stability in Keighley's schools at the moment, for example, as they face very significant cuts in funding.

"In the coming weeks I will set out Labour's policies for Keighley and Ilkley regarding education, health, transport, Brexit and housing."

On the issue of party leader Jeremy Corbyn, Mr Grogan said neither he nor Mrs Cryer had voted for him in the leadership contest.

But he added: "I think he has made a strong start to the campaign.

"Both of us know his many qualities from our time working together on the backbenches on issues such as Iraq."

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Japan Display still swimming in red ink after missing Apple wave www.asia.nikkei.com

 
TOKYO -- Japan Display's dismal fiscal 2016 earnings stood out in the sea of good results from electronic-device makers, but the company has only itself to blame for misreading a clear shift in demand from its biggest customer -- Apple.
 
The major LCD panel manufacturer on Wednesday reported a group net loss of 31.6 billion yen ($277 million) for the year ended in March. The third consecutive year of net losses came despite Chairman Mitsuru Homma expressing hope for a annual profit as recently as February.
 
Japan Display continued a familiar pattern, having repeatedly downgraded earnings forecasts since its stock listing in 2014. President Shuji Aruga said at the earnings briefing that he felt "greatly responsible" for the disappointing result. Homma was a no-show.
 
Missing the boat
 
The red ink sprung mainly from the business of supplying liquid crystal display panels for smartphones, which generates roughly 80% of the company's sales. Japan Display struggled to keep output flowing smoothly, beset by delays in improving the production yield of a new type of panel.
 
South Korea's Samsung Electronics also snatched some business from Japan Display by pitching organic light-emitting diode panels to Chinese smartphone makers for use in their upmarket handsets.
 
Japan Display said during Wednesday's briefing that it aims to counter the setback in smartphone panels by boosting sales of LCD panels for other electronic devices, such as automotive displays. But this segment looks unprepared to deliver, accounting for only around 10% of the company's sales.
 
Storms ahead
 
"Three straight years of net losses will be viewed as a seriously negative factor when we consider additional loans," an official of a lender bank noted. But things could get even worse for Japan Display.
 
Apple, the source of roughly half of Japan Display's sales, is expected to use an OLED panel on the iPhone for the first time with the new model set for release in the fall. This change could sink Japan Display's fiscal 2017 sales by 20% compared with a year earlier, according to some estimates.
 
OLED displays are expected to make up a significantly bigger share of the iPhone's 2018 models, said Yoshio Tamura of research firm Display Supply Chain Consultants.
 
Apple's shift toward OLED panels likely will prompt Chinese smartphone makers to follow suit, since they have grown by imitating the U.S. tech giant. This poses a serious threat to Japan Display's plan to capture market share for its LCD panels among high-end Chinese-made models.
 
With its eyes fixed on LCDs, Japan Display kicked off production at a 190 billion yen panel plant in Japan's Ishikawa Prefecture in December. Though the company has the technology to manufacture OLED panels, it is unable to ready production in time to supply them to Apple in 2018, Aruga said, in essence admitting management's failure to anticipate a major shift in the industry.
 
Samsung, by contrast, has invested billions of dollars to raise its OLED production capacity. Fellow South Korean manufacturer LG Display is expected to begin supplying Apple in 2018.
 
Japan Display was created five years ago through a merger of the LCD panel operations at major Japanese electronics manufacturers under the lead of the Innovation Network Corp. of Japan. Still the top shareholder, the public-private investment fund has enlisted Nobuhiro Higashiiriki, president of Japanese OLED panel developer JOLED, to take the helm at Japan Display next month to try to change course. But some warn that navigating the transition from LCDs to OLEDs will would prove a challenge for even a deft hand.
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After IMF postpones approval, Parliament repeals Subclause 11 requirement of mandatory FX deposits in Mongolian banks, awaits IMF board review of assistance package – but is it over? NAMBC Newsletter

The State Great Khural has repealed the highly controversial subclause 11 in the revised budget legislation that would have required foreign companies to deposit foreign exchange sales revenues in Mongolian banks. The board of directors of the International Monetary Fund (IMF) had postponed approval of the Mongolia bailout package, scheduled for April 28, because of concern about that clause. The IMF will now re-examine the amended budget law and proceed towards a decision. The mandatory bank deposit clause was not in the Government’s original bill but rather was added by MPs during the Budget Committee consideration of the bill.

Besides erecting a major new impediment to FDI, and throwing a scare into overseas financial markets that were beginning to incline towards taking another chance on Mongolia, the provision would have been a clear violation of existing Investment Agreements (IA) and Production Sharing Contracts (PSC), which guarantee investors no changes in tax and performance requirements beyond those in effect at the time the IA or PSC was signed. Foreign companies making multi-billion dollar investments in projects with life spans of 30 to 60 years must have a stable tax and regulatory environment in order to secure the necessary capital. Among the foreign investors with major stakes in the sanctity of Investment Agreement contracts are the IFC and MIGA, members of the World Bank Group, which arranged US$2.2 billion in debt and guarantees to support the Oyu Tolgoi copper. Mongolia concluded its Investment Agreement on Oyu Tolgoi in 2009. The International Monetary Fund and the World Bank Group are sister organizations that were both created at the international Bretton Woods Conference (New Hampshire, USA) in July 1944. The IMF and the World Bank Group hold their semi-annual meetings together at the same time and place because of the close ties between the two.

However, comments made by a Mongolian People’s Party (MPP) leader when the MPP announced that they would support repeal of subclause 11 with their 85% majority in parliament have reignited worries among foreign investors about whether this issue will come back again. MP Khayankhyarvaa Damdin, MPP floor leader in the State Great Khural, told a Mongolian reporter for Nikkei Asian Review that, yes, the parliament would “change the new regulation again [i.e., repeal and delete subclause 11],” but he went on to explain, “Because the economy is in a dire state, Mongolia first needs to be part of the [IMF] grant,.” However, he concluded, “after that, we will discuss whether foreign investment should go through a Mongolian bank."

Some observers suggest that the IMF board – and the global financial community – might welcome, if not require, reassurances of stability and transparency in the form of an official statement from the Mongolian Government declaring that proposals requiring mandatory bank deposits would not again be raised during the life of the current government, which runs until the next parliamentary election in 2020. One Canadian financial analyst told us, “The [Mongolian] Government offered an undertaking to China last December that promised no future visits by the Dalai Lama for the duration of the incumbent government and that same modus vivendi regarding forced bank deposits may well be a good idea now.”

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Agreement on Indian government loan to be submitted for immediate parliamentary discussion www.montsame.mn

 
Ulaanbaatar /MONTSAME/ The cabinet discussed the bill of ratification of General Agreement on Credit Line of USD 1.0 billion between the Government of Mongolia and the Government of the Republic of India, and resolved to recommend the parliament to run immediate discussion on this matter.
 
The 20-year loan will have annual interest rate of 1.75 percent with 5-year grace period. It has been agreed by both governments to dedicate the credit financing to projects on industrialization, railroad, infrastructure, agriculture and other important economic fields.
 
In regard to the amount of financing, credit grace period for infrastructural projects costing more than USD 200 million and project with strategic importance that cost USD 100 million or more will be seven years, with overall credit term of 25 years.
 
 
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Cabinet approves draft agreements on infrastructure development www.en.montsame.mn

 
Ulaanbaatar /MONTSAME/ During its regular meeting on May 10, Wednesday, the Cabinet discussed and approved draft special loan agreements on projects ‘Construction of steel-concrete bridges on Tuul River in Bayanzurkh and Sonsgolon’ and ‘Construction of Ulaanbaatar-Mandalgobi electricity transmission network and electrical substation’ to be established by the Ministry of Finance and Chinese Export-Import Bank.
 
From USD 1 billion soft loan issued by the Export-Import Bank following an agreement established with Mongolian Government in 2015, USD 118 million fund will be allocated for the Ulaanbaatar-Mandalgobi electricity transmission network and electrical substation project.
 
With establishment of the agreement, the Cabinet views, electricity will be distributed to major mines like Oyu Tolgoi, Tavan Tolgoi and Tsagaan Suvarga, and moreover, there will be two electricity sources when Tavan Tolgoi power station launches its operation.
 
The Bayanzurkh bridge on Tuul River, inaugurated in 1963 and 1965, will be enlarged with the project, and the road leading to Sonsgolon bridge will be expanded to a four-lane road.
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Ross: Washington won't oppose TPP without US www.nhk.or.jp

US Commerce Secretary Wilbur Ross says that he will not oppose an Asia-Pacific free trade deal that may take effect without the participation of the US.

Ross stressed on Tuesday that the US will seek bilateral deals to reduce its trade deficit.

The US pulled out of the Trans-Pacific Partnership in January. The remaining 11 member countries, including Japan, are pursuing the possibility of getting the deal implemented without the US.

The Pacific-Rim countries will hold a ministerial meeting in Vietnam in late May to discuss the trade deal.

An NHK correspondent says the US administration is eager to not only protect domestic manufacturers, but also to boost exports of US farm goods.

He also said that the administration may start pressuring trade partners to enter bilateral negotiations.

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China says Silk Road plan is not tied to presidency www.reuters.com

China's President Xi Jinping initiated the ambitious "Belt and Road" development plan but it has become a world plan not tied to his presidency, the Commerce Ministry said on Wednesday, days before Xi hosts a global forum on the initiative.

The forum in Beijing next week will draw heads of state to discuss Xi's plan to expand trade links between Asia, Africa and Europe through billions of dollars in infrastructure investment.

Representatives from more than 100 countries will attend China's biggest diplomatic event of the year, though only one leader from the Group of Seven (G7) industrialized nations, Italian Prime Minister Paolo Gentiloni, is set to join.

China says between 2014 and 2016, its businesses signed projects worth $304.9 billion along inland and maritime corridors of the plan, also known as the New Silk Road. But some of the projects could be in development for years.

Judging by recent precedent in China's political system, Xi is slated to step down from the presidency in early 2023 at the end of his second five-year term.

Asked what guarantee the world had that the initiative would go on after Xi's second term, Vice Minister of Commerce Qian Keming told a news briefing that its vitality lay in countries' hopes for development and not in the idea of "who proposed it or what term in office there is later".

"The Belt and Road initiative was proposed by President Xi in 2013, but this initiative is not an individual proposal, or merely left at a proposal level. Rather it is an initiative that has been widely received by the whole world. It is jointly owned by everyone," Qian said.

China has repeatedly rebuffed concern that the plan is part of a grand strategy to expand its economic interests for selfish gain and to seek global dominance, saying that anyone can join the plan to boost common prosperity.

Xi has used the initiative to help portray China as an open economy, distinct from a rising wave of global protectionism.

However, the government has faced criticism from foreign business groups and governments alike, who say it has done little to remove discriminatory policies and market barriers that favor Chinese companies.

Foreign business groups have questioned whether multinational companies would be able to compete with Chinese firms through the plan in transparent bidding processes.

Zhang Xingfu, an official from the Commerce Ministry's cooperation department, played down such concerns.

"Chinese enterprises conducting investment and cooperative business in countries along the Belt and Road initiative will ... actively participate in project bidding, and cooperate and compete with international enterprises in the same industries on the same platform," Zhang said.

(Reporting by Michael Martina; Editing by Robert Birsel)

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