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

64x64

Non-performing loans increased www.montsame.mn

Ulaanbaatar /MONTSAME/ At the end of January 2017, the non-performing loans at the level of the bank system reached MNT 1056.2 billion, up by MNT 4.5 billion (0.4 %) from the previous month and by MNT162.2 billion (18.1%) compared to the same period in 2016.

Money supply (broad money or M2) reached MNT 11.9 trillion at the end of January in 2017, which decreased by MNT 203.0 billion (1.7%) from the previous month and increased by MNT2024.0 billion (20.5 %) compared with the same period in 2016, according to a report of the Bank of Mongolia.

At the end of January 2017, currency issued in circulation reached MNT 736.1 billion, down by MNT 87.6 billion (10.6%) from the previous month and up by MNT 22.3 billion (3.1 %) compared to the same period in 2016.

Loans outstanding amounted to MNT12.4 trillion at the end of January 2017, down by MNT 42.7 billion (0.3%) from the previous month and up by MNT 590.2 billion (5.0%) compared to the same period in 2016.

Principals in arrears reached MNT 945.7 billion at the end of January 2017, up by MNT41.4 billion (4.6 %) from the previous month and MNT 6.9 billion (0.7 %) compared to the same period in 2016.

In January 2017, 26.0 million pieces securities were traded valued at MNT 37.7 billion in the stock market, down by MNT 112.4 billion (74.9%) from the previous month and up by 5.6 billion (17.6%) compared with same period of the previous year. The traded shares were down by 12.3 million pieces (32.2%) from the previous month and 8. million pieces (25.0%) compared with same period of the previous year.

Source: National Statistics Office

...


64x64

Monthly statistical report on transport: January 2017 www.montsame.mn

Ulaanbaatar /MONTSAME/ In January 2017, 1622.1 thousand tons of freight and 207.8 thousand persons (double counting) were carried by railway transport.

Compared to the same period of the previous year, the number of carried freight has decreased by 34.7 thousand tons (2.1%) and the number of carried passengers has decreased by 17.7 thousand persons (7.9%). The revenue from railway transport reached 32.5 billion which has decreased by MNT 1.2 billion (3.5%) compared to the same period of the previous year.

In January 2017, 210.3 tons of freight and 53.1 thousand persons (double counting) were carried by air transport. The volume of carried freight decreased by 13.5 tons (6.0%) and the number of carried passengers increased by 6.6 thousand (14.1%) compared to the same period of the previous year.

The revenue from air transport reached 20.2 billion which has increased by MNT 1.3 billion (7.1%) compared to the same period of the previous year.

Source: National Statistics Office

...


64x64

Three Reasons Why Investors Are Still Betting on Mongolia www.fronteranews.com

The light at the end of the tunnel
Not all is well with Mongolia (AZIA). Growth in the economy has tumbled with commodity prices, which account for over 90% of its export earnings. The economy’s GDP grew at just 1% in 2016 due to, a) commodity price decline, and b) slowdown in China demand for copper (JJC) (CPER) and coal (KOL). Meanwhile, the nation’s debt has been burgeoning, reaching $23 billion as of 4Q16.

At a time when Mongolia’s banks threaten an economic crash, the Hong Kong-based Asia Frontier Capital is invested in the region. Thomas Hugger, chief executive officer, and founder of Asia Frontier Capital, a firm dedicated to investing in the Asian frontier markets (FRN) (FM), has maintained portfolio exposure to Mongolia for many years. “We see the light at the end of the tunnel,” Hugger recently told Frontera.

Hugger spoke about three key reasons for his belief in this frontier market’s long-term prospects.

1. Copper price recovery
Following a five-year slide (2011-2016), copper prices finally began to recover in early 2016. Over the past one year, the shiny metal’s price has surged 28.7%, with mining giants such as Anglo American (NGLOY), BHP Billiton (BHP), Glencore (GLNCY), and Rio Tinto (RIO), expecting it to rise further as excess supply seems to have come off the market. Moreover, the government initiated stimulus programs in China; which consumes 40% of world copper; have also contributed to the metal’s resurgence. Copper ore accounts for 42% of Mongolian exports.

Mongolia is ranked 12th in the world for copper reserves. The south Gobi Desert alone has an estimated of 35 million tons of copper. UK-based Central Asia Metals (CAML.L) and Rio Tinto (RIO), Canada-based Entrée Gold Inc. (EGI), Turquoise Hill Resources Ltd. (TRQ), and Kincora Copper Ltd (KCC) are among the foreign mining companies engaged in copper mining in Mongolia.

2. Coal price recovery
Coal, Mongolia’s number 2 export (14% of exports), has followed a similar trajectory; a five-year slide followed by a quick recovery through 2016 and continuing. Australian thermal coal has recorded a whopping 68.8% price gain over the past 1 year alone. Foreign companies engaged in coal mining in Mongolia include Australia-based Aspire Mining Limited (ASPXF) and Hong Kong-based Mongolia Energy Corporation Limited (MOAEF).

3. Foreign exchange influx
Hugger also expects the spat over Rio Tinto’s (RIO) $5.3 billion Oyu Tolgoi copper and gold mine in Mongolia to resolve soon. Rio Tinto would then be investing a lot into the second phase of the Oyu Tolgoi mine, thereby opening up a huge additional source of foreign exchange for the nation.

$440 million support extended by the IMF
The economy has recently been able to secure a $440 million loan package from the International Monetary Fund (IMF) to ease the country’s balance-of-payment pressures and support it’s government’s looming debt repayments. “The Asian Development Bank, the World Bank and bilateral partners including Japan and Korea are expected to provide up to another $3 billion in budget and project support, while the People’s Bank of China is expected to extend its 15 yuan billion ($2.2 billion) swap line with the Bank of Mongolia for at least another three years,” the IMF said in a statement on Sunday. The package is thus, a part of the $5.5 billion bailout envisaged for this frontier market.

According to Citigroup, we may see Mongolia tapping the international markets pursuant to the IMF package

...


64x64

Burger King and Tim Hortons owner to buy Popeyes for $1.8 billion www.reuters.com

 
Restaurant Brands International Inc (QSR.TO), owner of the Burger King and Tim Hortons fast-food chains, said on Tuesday it would acquire Popeyes Louisiana Kitchen (PLKI.O) for $1.8 billion in cash.
 
The deal is a bet by Oakville, Ontario-based Restaurant Brands that it can use its international reach to introduce Popeyes' Louisiana-style fried chicken and buttermilk biscuits to more diners globally.
 
Popeyes shareholders will get $79.00 for each share they hold, a 19.5 percent premium to the stock's Friday close.
 
Popeyes, whose fans include pop singer Beyoncé, began 45 years ago as a Southern-fried "Chicken on the Run" restaurant in a New Orleans suburb. It has since expanded to more than 2,000 restaurants, of which 1,600 are in the United States.
 
Restaurant Brands was formed in 2014, when 3G Capital-backed Burger King acquired Canadian coffee and doughnut chain Tim Hortons Inc for $11 billion.
 
Reuters reported on Monday that Restaurant Brands was nearing a deal to buy Popeyes, citing people familiar with the matter.
 
Restaurant Brands said on Tuesday it would finance the deal with cash on hand and a financing commitment from J.P. Morgan and Wells Fargo.
 
The company was advised by Paul, Weiss, Rifkind, Wharton and Garrison LLP. Popeyes received financial advice from UBS and Genesis Capital LLC and legal counsel from King & Spalding LLP.
...


64x64

Study explores Mongolia-Japan trade expansion opportunities www.en.montsame.mn

 
Ulaanbaatar /MONTSAME/. On February 21, a seminar was held at the National Chamber of Commerce and Industry to discuss the expansion of Mongolia-Japan trade in connection with bilateral Economic Partnership Agreement taking effect.
 
Mitsuaki Hoshino, Director of Northeast Asian Division at the Japanese Ministry of Economy, Trade and Industry addressed the meeting and said, “In recent years, high level meetings have been frequently held between Japan and Mongolia, and I think, it shows the depth of bilateral relationship and cooperation”.
 
The Ministry of Economy, Trade and Industry of Japan in cooperation with the Embassy of Japan in Mongolia has conducted a study, assessing three products – cashmere, sea buckthorn and dairy products which were considered to have the highest export potential. The study aimed to continually expand bilateral trade with not only minerals but other products, and explore how conventional agriculture can be developed in Mongolia and Japan.
 
The study was launched on October 12, 2016. Engaging 13 public and corresponding organizations, 17 private sector companies and 3 specialists, the study unveils the current state of Mongolian cashmere, sea buckthorn and dairy products industries, and challenges in exporting the products to Japan.
 
The study identified some solutions for successful export of cashmere such as improving quality control, production control and monitoring skills, launching a brand suitable for customer demand, ensuring stability and information on all procedures until the product is ready for use and learning marketing know-how in Japan.
 
The study also found three forms in which Mongolian sea buckthorn can be exported to Japan which are raw material, oil and oil powder.
 
The current state of Mongolian dairy industry was assessed by the study which concluded that although the nutrient quality of Mongolian milk is high, all-year stable supply is difficult because of the shortness of dairy season which is from July to September.
 
Generally, the study concluded with certain recommendations which include improving quality control, enhancing workforce capacity, consistently participating in expositions, business meetings and business matching, consistently updating on the activities of Mongolian companies and introducing a management to realize Japanese marketing strategies.
 
 
...


64x64

Mnuchin urges 'frank and candid' currency analysis www.nhk.or.jp

 
The US Treasury Secretary has urged the International Monetary Fund to conduct a "frank and candid" analysis of the foreign-exchange policies of IMF member states.
 
Steven Mnuchin was speaking with IMF Managing Director Christine Lagarde on the phone on Tuesday.
 
He's apparently aiming to keep in check what he sees as attempts by other countries to devalue their currencies.
 
Mnuchin also talked about what he called "the importance the administration places on boosting economic growth and jobs in the United States."
 
The US President has been accusing countries of currency manipulation to give their exporters an advantage.
President Donald Trump said on Saturday his administration is starting to prevent currency manipulation by other countries. He said the practice is hurting American companies and workers, and that it must end.
...


64x64

Mongolian economists on IMF`s Extended Fund Facility program www.mongolia.gogo.mn

On 19th Feb, 2017, International Monetary Fund (IMF) and Government of Mongolia have reached staff-level agreement on an economic and financial program to be supported by a three-year Extended Fund Facility for $440 million, as part of a $5.5 billion external financing package. 

Other international partners also plan to support the government’s program: the Asian Development Bank (ADB), World Bank, and bilateral partners including Japan and Korea are together expected to provide up to $3 billion in budget and project support; and the People’s Bank of China is expected to extend its RMB 15 billion swap line with the Bank of Mongolia for at least another three years.
As a result, Mongolian external debt to GDP ratio will be doubled than the international average while it has forecasted to reach 86.3 percent of GDP by 2017. 
On the other hand, some tax rates will be increased including excise taxes on vehicle, alcoholic products and tobacco as well as social insurance premium and personal income tax starting 1st of April, 2017 required by the IMF`s Extended Fund Facility program.
However, requirements related to increase of tax rates, new tax and social issues regarding salary and pension are irritating public. 
Thus we clarified the position of Mongolian professional economists on IMF`s Extended Fund Facility program.
Economist D.Angar: 
-I think it is the best action to overcome economic crisis. Mongolia was facing lack of discipline and financial accountability. Unfortunately, Mongolia has established an agreement with IMF after reaching its final stop to face economic collapse. IMF talks mainly about budget and monetary policy. However this time they suggested new proposal to conduct complex audit on the operation of commercial banks and financial system. Because they consider that it is not working well. IMF`s program is the only thing can fix it. If the Government of Mongolia fulfill the obligations required by the IMF on time, very positive result is awaiting us. Collapsed economy shall be restored with strict requirements. 
Economist Kh.Batsuuri:
-IMF`s program seems quite reasonable for me. IMF has eased the loan requirements in the last five years. However we should notice that what terms and conditions are hiding behind. It is significant for us to know all requirements even it is hidden.
IMF demanded to tax interest income on personal savings accounts and I think it is right. However, increasing social insurance premium and retirement age are wrong decision. 
Economist Kh.Bolorbold:
-World Bank and IMF have ruined Mongolian economy. We must acknowledge it at all levels. Reaching an agreement with IMF means that they are going to repay the previous loan that collateralized by Mongolian people with the people too. IMF have already became bankrupt at the end of 1990s. They take others money and make economic and political ultimatum. 
IMF has not developed any countries as they promised. Stopping all policies directed to social support might worsen Mongolian economy. 
Economist T.Bayarkhuu:
-There are no good news about IMF. We have been cooperating with the IMF since 1998. They are always causing fall in Tugrik rate. All countries that cooperated with the IMF went into debt. Extended Fund Facility program was implemented previously in Russia, Ukrain and Egypt which brought negative results, causing currency fall. Salary, pension, benefits will depreciate in Mongolia after the program and the country will trap in poverty. I think it is the program to make Mongolia as a geopolitical subsidary place against Russia and China through economic and financial method.

...


64x64

Saudi Aramco selects lead underwriters for $100 billion IPO: WSJ www.reuters.com

 
Oil company Saudi Aramco [IPO-ARMO.SE] has selected JPMorgan Chase & Co (JPM.N), Morgan Stanley (MS.N), and HSBC Holdings Plc (HSBA.L) as lead underwriters for its planned initial public share offering, the Wall Street Journal reported on Tuesday, citing people familiar with the matter.
 
The listing of Aramco is expected to be the world's biggest initial public offering and could raise up to $100 billion. The IPO is the centerpiece of the Saudi government's ambitious plan, known as Vision 2030, to diversify the economy beyond oil.
 
Saudi authorities are aiming to list up to 5 percent of the world's largest oil producer on both the Saudi stock exchange in Riyadh, the Tadawul, and on one or more international markets.
 
Saudi Arabian Oil Co, known as Saudi Aramco, was not immediately available for comment. JPMorgan and HSBC declined to comment while Morgan Stanley did not immediately respond to a request for comment.
 
Aramco received proposals from at least six banks for an advisory role on the IPO, sources familiar with the process told Reuters earlier on Tuesday.
 
Local and major international banks including Morgan Stanley, HSBC and Citigroup Inc (C.N) were among those asked to pitch for an advisory position with Aramco, Saudi-based industry sources said last month.
 
JPMorgan was close to being selected as an underwriter, Reuters reported on Friday, citing a source. Aramco also recently chose boutique investment bank Moelis & Co (MC.N) as an adviser.
 
The IPO plan has been championed by Deputy Crown Prince Mohammed bin Salman, who oversees the country's energy and economic policies. Last year, he said he expected the IPO would value Aramco at a minimum of $2 trillion, and that the figure might end up being higher.
 
Saudi Arabia is considering two options for the shape of Aramco when it sells shares in the national oil giant next year: either a global industrial conglomerate or a specialized international oil company, industry and banking sources have told Reuters.
 
Saudi Aramco has also appointed international law firm White & Case, which has a long-established relationship with the state oil giant, as legal adviser for its IPO, sources familiar with the matter told Reuters earlier this month.
 
Saudi Arabia is favoring New York to list Saudi Aramco, while also considering London and Toronto, the Wall Street Journal reported on Monday.
 
The oil giant also held discussions with the Singapore Exchange regarding a potential secondary listing, Reuters reported this month.
...


64x64

Mongolia reinforcing cooperation with UNESCO www.montsame.mn

Ulaanbaatar /MONTSAME/ UNESCO and the Government of Mongolia signed a comprehensive cooperation agreement aligned with the 2030 Agenda for Sustainable Development, during a ceremony with Director-General Irina Bokova and the Ambassador of Mongolia to UNESCO, Mr Mundagbaatar Batsaikhan on February 20, 2017.

Spanning the 2016-2020 period, the Memorandum of Understanding covers all UNESCO’s areas of competence, specifying cooperation to:

- promote SDG4-Education2030 through technical assistance, policy advice, capacity building, standard setting and the promotion of best practices
- strengthen science, technology and innovation systems
- support inclusive social development and intercultural dialogue
- promote culture-based sustainable development, including in the framework of the implementation of the UNESCO Culture Conventions ratified by Mongolia
- enhance mechanisms for access to knowledge and information, strengthening media development and promoting freedom of expression

Recalling her visit to Mongolia in 2011, when she signed the previous agreement, the Director-General welcomed the focus on the SDG Agenda and referred to the country’s rich cultural diversity and its leadership role in the Community of Democracies. The Ambassador expressed his country’s longstanding and strong relations with UNESCO, welcoming the new agreement that will further reinforce cooperation.

...


64x64

Mongolian herders go solar www.news.mn

No less than 70% of Mongolian herders now have solar power. By installing portable solar home systems in the gers (yurts made of yak’s wool and felt), they have made life much easier in a land where the sun shines about 250 days a year.

The main things this electricity is used for are improved food refrigeration, charging cell phones and watching television to see the weather forecast, which is essential in the life of a herder. They no longer have to make a long trek to a nearby village to charge their telephone.

The cell phone has been revolutionary for the life of nomadic people, giving them greater connectivity and organization. Internet usage also increased by 1000% between 2000 (1.1%) and 2010 (11.3%).

According to Bor, a herder in the Arkhangai province, “most countryside children stay in dorms, because their parents are nomads and it is the only way they can get an education. We can now call our children who are in the dorms and speak to them. I also have children working in Ulaanbaatar [Mongolia’s capital] and I can speak to them as well. The solar panels are a very useful thing in our lives.”

...