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

Events

Name organizer Where
Frontier's "Invest Mongolia Tokyo 2018" Frontier Securities Tokyo Japan
"Open to Export" ICC WTO International business award ICC WTO London

NEWS

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BT fined record £42m for late installations www.bbc.com

 
BT has been hit with a record fine from telecoms regulator Ofcom and has set aside £300m to repay providers for delays in installing high-speed lines.
Ofcom has issued the firm with a £42m fine, which it said was the largest it has ever handed down.
It found BT's Openreach division had cut compensation payments to telecoms providers for delays in installing the lines between early 2013 and late 2014.
Openreach said it "apologised wholeheartedly" for the mistakes.
The investigation found BT had broken rules about its "significant market power" by cutting the payments.
Gaucho Rasmussen, Ofcom's investigations director, said: "These high-speed lines are a vital part of this country's digital backbone.
"We found BT broke our rules by failing to pay other telecoms companies proper compensation when these services were not provided on time.
"The size of our fine reflects how important these rules are to protect competition and, ultimately, consumers and businesses."
'Fall short'
Openreach provides the wires and cables that powers the UK's broadband and landline phone network.
In this case, it failed to pay full compensation to providers when it was late installing ethernet lines - high-speed cables used by large businesses, and mobile and broadband providers, to transmit data.
Earlier this month, BT agreed to Ofcom's demands for it to legally separate Openreach from its main business.
Under the changes, Openreach will become a distinct company with its own staff, management and strategy "to serve all of its customers equally".
BT chief executive Gavin Patterson said the investigation "revealed we fell short of the high standards" for serving telecoms providers.
"We take this issue very seriously and we have put in place measures, controls and people to prevent it happening again," he said.
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Nuclear arms abolition negotiations begin www3.nhk.or.jp

 
The conference to negotiate a legally binding treaty to ban nuclear weapons begins at the United Nations headquarters in New York on Monday. But all the nuclear states will not participate.
 
The UN General Assembly voted to start negotiations last December. More than 50 non-nuclear countries submitted the proposal and 113 states supported the resolution.
 
The treaty is to ban nuclear weapons based on the interpretation they are in breach of international laws.
 
More than 100 countries are expected to take part in the negotiations. They will likely focus on how to substantiate the illegality of nuclear weapons.
 
The United States and Russia say the negotiations lack the realistic perspective of international security.
 
Japan is the only country to have experienced atomic bombings, but has also been against the treaty. The government's position is that disarmament should occur in stages with cooperation of both nuclear and non-nuclear states.
 
Japan is arranging to send an envoy to speak at the conference, but is unlikely to take part in the negotiations.
 
Swedish Foreign Minister Margot Wallstrom told NHK at the UN on Thursday that the negotiations are timely. She said there have recently been comments flaunting nuclear arms. She added that many countries are frustrated with the stalemate in nuclear arms reduction.
 
Former US President Barack Obama called for "a world without nuclear weapons." His successor Donald Trump has indicated he wants to strengthen US nuclear power.
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Snapchat 'will be bigger than Twitter, Yahoo and AOL with advertisers' www.theguardian.com

 
Snapchat could become more popular with advertisers than Twitter, Yahoo and AOL within three years, with the messaging app company forecast to bring in revenues of more than $3bn (£2.4bn) a year before the end of 2019.
 
That bullish forecast is based on advertisers targeting the youth audience that the disappearing photo app has seemingly cornered. More than half (51%) of video users on Snapchat are under 24, compared with 23% for Facebook and 17% for Google’s YouTube, according to Ampere Analysis.
 
Brands are also keen to see a true rival emerge to challenge Facebook and Google, which have recently come in for heavy criticism for their advertising practices. The two web giants currently account for 58% of the $141bn global mobile ad market.
 
“You often hear advertisers saying they are getting uncomfortable with such a large portion of ad spend going to just two players,” said Cathy Boyle, principal analyst at eMarketer, which produced the global mobile ad forecast. “If there can be a third or fourth player they are interested in spreading the wealth beyond the duopoly.”
 
WPP chief executive Sir Martin Sorrell recently referred to Snapchat’s potential to become a “third force” alternative but many investors and analysts remain wary of Snapchat’s future.
 
After a much-hyped stock market flotation earlier this month that valued Snap, the company behind Snapchat, at $29bn the company’s share price has steadily sunk. The shares soared from their $17 IPO price to $26 in two days, but are now back at just over $19.
 
“Snap is a promising early-stage company with significant opportunity,” said Brian Wieser, senior analyst at Pivotal Research in a note to investors. “Unfortunately, it is significantly overvalued given the likely scale of its long-term opportunity and the risks associated with executing against that opportunity.”
 
Wieser, who says Pivotal is a “cautious optimist” on Snapchat, said that its model for the business is “potentially stretched” at even a bearish target price of just $10 a share.
 
The list of issues and potential threats is extensive. Omnipresent is Mark Zuckerberg’s Facebook, which dominates social media with 1.2 billion daily users and owns Snapchat’s most direct competitor, Instagram.
 
Last summer, Instagram – which has 600 million users to Snapchat’s 158 million – launched a function called Stories, which is similar to Snapchat’s own story feature. Instagram Stories has already achieved 150 million daily active users. Instagram Stories’ launch intensified another concern: Snapchat’s slowing growth.
 
The number of Snapchat users grew by 14% and 17% in the first two quarters of last year. Following the launch of Instagram Stories, Snapchat’s growth slumped to 7% and just 3.2% in the final two quarters of 2016. Snap has blamed “technical issues” in the rollout of new products, but admitted in its IPO document that Facebook/Instagram would be a huge threat.
 
“Our competition may mimic our products and therefore harm our user engagement and growth,” Snap acknowledged.
 
While Snap’s IPO has made 26-year-old co-founder Evan Spiegel the world’s youngest billionaire with a $5.5bn fortune, his business remains heavily loss-making.
 
Snap raised $3.4bn at its flotation, giving it plenty of cash to continue to build on innovations such as its launch of video-capturing spectacles. But it lost $373m on its day-to-day business in 2015, and that figure spiralled to $515m last year.
 
One of the most highly publicised issues has been Snap’s decision to keep total control of the company’s voting rights with its founders and early investors. In its IPO filing the company said it believed it was the first US business to go public with shares that do not grant any voting rights to stock market investors.
 
“We … cannot predict the impact … the concentrated control by our founders may have on our stock price or our business,” the company said.
 
Corporate governance experts have advised potential investors to avoid Snap because of the voting rights issue. “It’s about accountability. If you give your money to someone you want to make sure they’re using it properly and can justify their actions back to you,” said Sarah Wilson, chief executive of investor advisory firm Manifest. “Power is handed over to a select few with the shareholders bearing considerable financial risk – remember those founders will be getting gold-plated pay schemes as well as their stock ownership.”
 
However, WPP’s Sorrell recently countered this view, arguing companies with dominant shareholders or owners – such as Snap, Facebook and Rupert Murdoch’s News Corp and Fox – that “offend” good corporate governance practices can take more risks and tend to perform better financially.
 
Snapchat’s $22bn market capitalisation is already double that of Twitter ($11bn), but it remains a minnow compared with Facebook ($393bn) and Google ($596bn).
 
It is undeniable that the digital darling is on to something – its users love it. Two-thirds of them check the app every day – and the average daily user visits the app 18 times a day, spending an average of 25 to 30 minutes a day sending snaps and watching messages from their friends, celebrities and advertising brands.
 
This level of engagement from a youth audience notorious for fickle attention has helped fuel a surge in revenues from $58.7m in 2015 to $404m last year and an expected $1bn this year.
 
Nick Baughan, chief executive of media agency Maxus UK, said the Snapchat opportunity is real but that advertisers also remain cautious. “It isn’t a case of the emperor’s new clothes, it is an exciting opportunity,” he said. “But the IPO came quite early, before advertising products have grown to full maturity.
 
“At the moment Snapchat sits firmly in most agencies and advertisers’ innovation [budget] pot. As responsible advertisers and agencies we need to make sure we are where audiences are. But there is no point in being innovative unless Snapchat can back it up with evidence-based innovation.”
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Rio Tinto upbeat on China capacity cuts www.chinadaily.com

The head of global mining giant Rio Tinto Group Plc said China's move to trim overcapacity in its steel industry would benefit his group and others like it, instead of hurting their business interests.

CEO Jean-Sebastien Jacques said in Beijing that China's plans to cut more overcapacity was a good opportunity for the company because steel plants would resort to utilizing high-quality assets and higher-quality raw materials.

Jacques, head of the world's second-biggest mining company, said the government would shut down smaller and more polluting blast furnaces while switching to using the newest, largest blast furnaces.

"It could be a very good piece of news, with lots of opportunities and the reason why is that in order for them to produce exactly the same output, they will have to buy higher quality raw materials," he said.

China sees massive overcapacity in its iron and steel sector and has vowed to continue with its overcapacity reduction this year, with a target of cutting 50 million metric tons of steel production.

While some commentators and analysts have portrayed the initiative as being a potential drag on iron demand in the world's second-biggest economy, Jacques said he was not concerned.

"I believe China's restructuring of its steel industry will help reduce pollution, but will not lead to a drastic reduction of steel output," he said.

China's economic growth target for this year has been set at around 6.5 percent, lower than the 2016 band of 6.5 percent to 7 percent. Jacques said, however, he was as confident as ever about the company's business in the country and on China's economy.

The CEO said that considering the size of China's economy, a 6.5 percent of economic growth target still meant a lot of demand for iron ore, steel and copper ore and "we believe we will be selling more of our products in the country".

Jacques said the mining group welcomes the Belt and Road Initiative, which would lead to infrastructure improvements and provide a boost for companies in related sectors.

"For mining companies like us, there will be demand for iron ore and copper, both of which might be the best investments for growth," he said.

Jacques said China has been the company's biggest customer and Rio Tinto generates 43 percent of its global revenue from the country, supplying lots of products including copper and iron ore for steel, bauxite for aluminum and diamonds.

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North Korea seeks foreign investment to start casino cruise www.rt.com

Unabashed by international sanctions, cash-strapped North Korea is calling for foreign businesses to invest in an international cruise ship in a bid to boost tourism.

According to the proposal listed on the Mount Kumgang region website, the country needs $20 million to buy the 30,000-ton Royale Star, a Soviet-era cruise ship capable of carrying 1,000 passengers.

The liner can operate a casino business, even though gambling remains strictly prohibited in the country. It is currently docked at Kosong Port near Mount Kumgang and travels to Southeast Asia and Vladivostok in Russia.

“We are trying to diversify international tourism at the world-renowned Mount Kumgang by using cruise ship services,” said the proposal, which noted that “a variety of facilities” will be available for passengers.

The suspended Mount Kumgang tourist resort was formerly run with South Korea. It was seen as a symbol of inter-Korean cooperation following decades of animosity.

In 2008 a South Korean tourist was shot by soldiers while walking on a beach, prompting an outcry from Seoul and the suspension of tourist programs.

Experts say the hermit kingdom’s push to attract overseas visitors, particularly from Southeast Asia, is likely to raise eyebrows. They cite recent tensions around North Korea, including its missile tests in the Sea of Japan and a diplomatic row with Malaysia after the murder of Kim Jong-un’s half-brother.

“I strongly doubt there will be foreign investors who are willing to invest money in North Korea given the current situation,” Lim Eul-chul, a professor at Kyungnam University, told the Financial Times.

“North Korea has been interested in attracting investors to the tourism sector since 2014 in order to cope with international sanctions… but they haven’t been very active given other developments,” he added.

The country is under stringent international sanctions, which were imposed after its first nuclear test in 2006. According to a UN report on North Korea, two out of five people are undernourished, while 70 percent of the population relies on food aid.

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Brazil's largest meat processing company suspends 33 of 36 plants www.xinhuanet.com

Brazil's Agriculture Minister Blairo Maggi (2nd R) tastes the meat product inside a plant of Brazilian food company Brasil Foods (BRF) in Rio Verde, Goias state, Brazil on March 23, 2017. (Xinhua/Li Ming)

RIO DE JANEIRO, March 24 (Xinhua) -- Brazil's JBS, the largest meat processing company in the world, has said it would shut the production of beef at 33 of its 36 plants in the country for three days.

In a statement, JBS said the decision was taken to adjust production until a decision was taken concerning the numerous countries that have closed their borders to Brazilian meat exports.

Revelations have emerged that the country's meat producers had been chemically altering meat products and selling them past their expiration date.

One of JBS' plants, belonging to its Seara subsidiary, is one of those being investigated by police.

In 2016, 40 percent of the income of JBS Mercosur, its beef unit, came from export, with a value of 11.5 billion reais (3.7 billion U.S. dollars).

The company also said that, from next week, its remaining plants would only operate at 35 percent of their production capacity.

According to Brazilian police, after a two-year investigation which culminated last week, a number of important meat companies, including JBS, "masked" rotten meat with chemical agents and bribed agricultural officials to allow their export.

The fraud ran from changing the expiration dates on meat packaging to injecting water into chicken meat to make it heavier or even using ascorbic acid to mask rotten produce.

For the moment, the Brazilian government has forbidden exports from 21 companies suspected of such acts.

Brazil is the world's largest exporter of beef and chicken, and fourth-largest of pork. In 2016, Brazilian meat exports to the world brought in around 11 billion U.S. dollars and represented 7.2 percent of all the country's exports.

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Samsung Electronics chief says sorry for scandal www.bbc.com

Samsung Electronics has apologised to shareholders for its role in a corruption case that led to South Korea's president being impeached.
"I'm sorry for the scandal," chief executive Kwon Oh-hyun said at the company's annual meeting in Seoul.
Samsung Group boss Jay Y. Lee is accused of bribing a friend of the former president in return for government support in a deal.
Mr Lee is currently in jail awaiting trial.
Samsung has said it did not pay bribes in the form of donations, but has pledged to improve its corporate governance.
The world's largest smartphone-maker also addressed the fallout from last year's failure of the Galaxy Note 7.
Samsung had to abandon production of the smartphone after a number of them caught fire.
"I apologise once again for the mistake with the Note 7 last year. It was a failure that arose from trying new technology," Mr Kwon said.
The debacle is estimated to have cost Samsung about $6bn.

Samsung Electronics also announced at Friday's meeting that it would not be changing its corporate structure to use a holding company.
The company has been under pressure from investors to simplify its ownership structure.
"There are negative effects that would arise from transitioning to a holding company so it does not appear it will be easy to do so at present," Mr Kwon said.

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AIIB welcomes 13 new members, 15 to join the queue www.chinadaily.com

Fifteen new members will soon join the Asian Infrastructure Investment Bank (AIIB), which will bring the total number of members to nearly 90, AIIB President Jin Liqun announced on Saturday.

The comment came after the bank expanded its membership to 70 last week by approving 13 countries and regions as new members.

Jin said the participation of new members from North and South America, Africa and Europe will bring positive changes to the AIIB's operations, implying that the bank will expand investment outside of Asia.

"The AIIB can support infrastructure investment outside of Asia as long as the projects benefit the local and Asian development," Jin told reporters on the sidelines of the Boao Forum for Asia in Hainan province.

Jin said that the participation of countries in the AIIB such as Canada is a vote of confidence in the operation and management of the bank.

"Our job is not just to put some money in a particular country," Jin said, stressing that the bank would like to see infrastructure projects it funded improve regional coordination and enable members to gain rather than lose from its investment.

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Mongolian coal miner posts losses, tough market conditions offset price revival www.reuters.com

ULAANBAATAR, March 23 (Reuters) - Mongolia Mining Corp <0975.HK> reported losses of $154.2 million for 2016, despite a 20 percent jump in total revenue, with a resurgence in coal prices over the year unable to offset tough market conditions in the first half and high financing costs. Coal accounts for nearly half of mineral-rich Mongolia's total exports but weak infrastructure and high freight costs have forced the country to sell at discounted prices and prevented it from taking full advantage of its vast reserves. Delays to a railway project designed to help the landlocked nation deliver coal across its southern border into China have also held back the industry and eroded MMC's profitability. The firm reported an average selling price of $77.2 a tonne last year, 22 percent more than in 2015 after China's war on overcapacity helped cut coal supplies. But this was much lower than the average China spot price <ST-CNCCDS-MB> of around 946 yuan($137). MMC's hard coking coal sales rose 29.2 percent to 1.5 million tonnes in 2016. Mongolian Mining runs the Ukhaa Khudag mine in the Gobi desert that shares the same coal formation as Mongolia's huge state-owned Tavan Tolgoi mine, which the country hopes will attract billions of dollars in foreign investment. Mongolian coal is shipped by trucks to the Chinese border, about 240 kilometres (149 miles) away from Ukhaa Khudag. The country has long planned to build a railway to cut down on costs, but it has struggled to finance the project. "When MMC reaches full production rates of 7 million tonnes per year some time in 2018, it will be responsible for almost 10 percent of Mongolia's total GDP at current coal prices," said Harris Kupperman, chairman of the Mongolian Growth Group, a real estate firm that holds a stake in MMC. "MMC's future health is vital to the Mongolian economy." Mongolia's central bank said last week that the value of the country's coal exports grew 642 percent in February, compared with the same period of last year. According to data from China's customs authority this week, Mongolia overtook Indonesia to become China's No.2 source of imported non-lignite coal in February, with shipments up 211.6 percent on the year at nearly 2 million tonnes. [COAL/CN] Mongolia was also China's No.2 coking coal supplier last month, with shipments up 134 percent to 1.436 million tonnes. However, average prices of coking coal from Mongolia stood at $78.77 per tonne, far lower than the $171.2 average for all coking coal imported by China during the month. ($1 = 6.8854 Chinese yuan) (Reporting by Terrence Edwards; Editing by David Stanway and Himani Sarkar) ((david.stanway@thomsonreuters.com; +86 21 6104 1799; Reuters Messaging: david.stanway.thomsonreuters.com@reuters.net)) Keywords: MONGOLIA COAL/MMC

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Chinese investors move in, take large slice of Latin American pie www.chinadaily.com.cn

 
Chinese companies are forming the mainstay of foreign direct investment in Latin American and African markets as globalization suffers setbacks elsewhere, an international law firm has said.
 
In an interview with China Daily, Juan Picón, global co-chairman of DLA Piper, said he still thought the trend would continue, based on feedback from his clients.
 
He said: "A growing percentage of our clients who are investing directly in Latin America are from the Chinese mainland, from sectors including energy, infrastructure and technology and so on."
 
A similar situation could also be seen in Africa, he said.
 
According to Reuters, the United Nations trade and development agency UNCTAD, reported that global foreign direct investment fell by 13 percent to an estimated $1.52 trillion in 2016.
 
The report stated that the US was the top destination with $385 billion, rising by 11 percent year-on-year, followed by the UK ($179 billion) and China ($139 billion).
 
Europe saw a fall of 29 percent, followed by Latin America and Africa in overall terms.
 
But Picón noted a rising interest from the Chinese government and corporations in fostering relations with countries in Latin America and Africa.
 
China's investment in those regions is expected to gain greater momentum with China's Belt and Road Initiative.
 
DLA Piper was formed in 2005 by a merger between three law firms, two based in the US and one in UK.
 
Picón said there were still many large projects to develop in Latin America, requiring massive funding programs, such as various national infrastructure projects.
 
He added that Latin America had always been very investor friendly with fewer limitations on foreign direct investment.
 
DLA Piper currently has represented more than 30 Chinese mainland companies, easing their clients' entry to industries including financial services, infrastructure, telecoms, engineering and agriculture.
 
Transportation and energy-related infrastructure projects have proven more attractive to his Chinese clients in countries such as Mexico, Peru, Chile and Cuba.
 
In foreign direct investment in Latin America, Picón said, the US used to dominate the market. But as time goes by, Latin America's relationship with China is building to "a more mature stage".
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