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

Events

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

NEWS

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UK food prices will rise without EU workers, say trade groups www.theguardian.com

 
Food prices will rise unless the government ensures EU citizens can work in the UK after Brexit, according to industry groups representing the major supermarkets and food manufacturers, including the owner of Marmite.
 
The open letter to the government is signed by 30 food and drink industry bodies, including the Food and Drink Federation, which represents major suppliers, including Marmite maker Unilever and Mr Kipling owner Premier foods; the British Retail Consortium, which counts Tesco, Sainsbury’s, Asda and Morrisons among its members, and the National Farmers Union.
 
The letter, published in the Guardian, says: “Workers from the European Union, some of whom are already leaving the UK, play a significant role in delivering affordable and high-quality food and drink.” It says they provide “an essential reservoir of skilled, semi-skilled and unskilled labour.”
 
Any points-based permit system for immigrants should place the food and drink supply chain on a par with financial services and the automotive sector, the industry leaders say. “All options should be explored, including a workable points-based system for shortage occupations, sector-based and seasonal/guest worker schemes and effective transitionary arrangements. If it is not, the UK will face less food choice and higher food prices.”
 
The letter, which is also signed by the heads of the British Beer & Pubs Association, the British Growers Association and the British Soft Drinks Association, claims that some EU workers have already begun to leave the UK in the wake of the Brexit vote which has led to a fall in the value of the pound. “The government can address this issue directly. It should offer unambiguous reassurance to EU workers throughout our supply chain about their right to remain here,” it said.
 
Employment agencies have warned that the UK’s food industry is facing the worst labour shortage for at least 12 years.
 
The Association of Labour Providers (ALP), whose employment agency members supply 70% of the temporary labour used by the food and drink industry, recently said responses to job ads had slumped by up to 70% as workers from the EU – who account for 90% of jobs in the sector – avoid coming to the UK.
 
The NFU has said farmers have seen a shortfall in EU workers, exacerbated by the drop in the pound against the euro, which has diminished the value of the money they are sending home.
 
Nearly 4 million people are employed in growing, harvesting, producing, packaging, selling and serving food and drink in the UK, a large proportion of whom are EU nationals.
 
Although food prices continue to fall amid heavy competition between the major supermarket chains and fast-growing discounters Aldi and Lidl, rising costs are expected to drive up inflation in the coming months.
 
A string of major food brands have sought increased cost prices from supermarkets as the fall in the pound has driven up the cost of importing ingredients and other essentials, such as packaging.
 
Unilever, which also owns Ben & Jerry’s and Dove; Typhoo; Birds Eye and Walkers are embroiled in an industry-wide battle over price increases caused by the 15% drop in the value of the pound against the euro and 18% against the dollar since the UK voted to leave the European Union.
 
The lower value of the pound is also expected to increase exports, potentially making it harder for UK companies to source home-grown ingredients. For example, the price of British butter has soared 80%, partly because processors have found exporting easier.
 
Food and drink is the UK’s biggest export, worth £18bn, led by Scotch whisky, chocolate, beer and salmon. Despite its relatively low profile, food manufacturing is worth more to the UK economy than the automotive and aerospace sectors combined.
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EU takes on seven countries over diesel emissions www.rt.com

 
The European Commission has started legal action against Germany, Britain and five other countries for failing to police vehicle emissions regulations, according to EU sources.
The step reportedly followed signs of suspicious behavior in the industry after the Volkswagen cheating scandal. Brussels is not satisfied with how bloc members responded to diesel vehicles flouting pollution limits.
 
According to EU officials, several European countries tried to protect car manufacturers from sanctions similar to those faced by Volkswagen after the carmaker was caught using software to cheat emissions tests in the US.
 
The automotive industry is critical for the bloc, as it employs nearly 12 million people. The potential fines for breaking car emission rules could have a grave effect on the countries' economies.
 
Diesel engines power half the vehicles in Europe. Nitrous oxide pollution from them causes respiratory illness and the premature death of 72,000 people annually, according to data from the European Environmental Agency.
 
According to EU sources familiar with the matter, the Commission has found that countries failed to set fines to deter rule-breaking or penalize carmakers for breaching the law or cooperate with its demands for information.
 
The UK and Germany face cases concerning the testing and approval of new models produced by Volkswagen, sources familiar with the matter told Reuters. “This is not the end; just the first wave of action,” they added.
 
The measure is the first step in infringement procedures that allow the EU to take action against its member states for failing to apply the common law. The members are given two months to respond, and if they are not able to satisfy the Commission within the period, the EU can take the issue to the European Courts.
 
Under current EU law, newly produced vehicles are approved by national regulators. The governments are empowered to revoke those licenses or impose penalties, although the vehicles can be sold all over the EU.
 
No country has penalized the vehicles it previously licensed in spite of probes revealing the use of defeat devices in Germany, Britain, Italy and France.
 
The manufacturers argue that the use of defeat devices complies with an exemption that allows protecting the engine where needed. Some national watchdogs say that the vagueness of EU law allows for the loophole.
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Michael Jordan wins China trademark infringement case www.rt.com

 
After four years of litigation and a lost trial last year, former basketball great Michael Jordan has persuaded the Chinese courts that a local company illegally used his name and the famous ‘23’ jersey to make a profit.
 
Winning a trademark infringement case in China is something companies like Apple and New Balance have failed to do.
 
In 2015 a Chinese court ruled for Qiaodan (Jordan in the Chinese) Sports in the trademark dispute. A new decision by China's Supreme People's Court has overturned it saying that Qiaodan had “malicious intent.”
 
"I am happy that the Supreme People's Court has recognized the right to protect my name through its ruling in the trademark cases," Jordan said, as quoted by Reuters.
 
"Chinese consumers deserve to know that Qiaodan Sports and its products have no connection to me," he added.
 
Qiaodan Sports pronounced as “Chee-ow-dahn,” runs about 6,000 sportswear shops in China and will have to give up its name.
 
According to lawyers, it is tough for an overseas claimant to persuade Chinese courts that there has been trademark infringement.
 
Thus, in 2012 Apple was forced to pay $60 million to Proview Technology (Shenzhen) that first registered the iPad trademark in China in 2001.
 
Sneakers maker New Balance was taken to court by a Chinese man Zhou Lelun who has the rights to “Bailun” and “Xinbailun,” or New Bailun brands in China. The US company had to pay him $15.8 million to use its own name.
 
Fake Rolexes and iPhones hardly surprise anyone, but the Chinese hit the headlines last year when a fake Goldman Sachs was discovered in Shenzhen. "We don't have any connection with the US Goldman Sachs," a woman who answered the company's listed phone told AFP.
 
There is also a Shenzhen Trump Industrial Co that produces toilets and toilet seats and says it has nothing to do with the incoming US president. “Donald Trump is only one of many Trumps throughout the world,” said the company’s owner.
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ECB extends bond-buying scheme but at slower pace www.bbc.com

 
The European Central Bank has said it will extend its bond-buying programme until at least December 2017, but cut its purchases by €20bn a month.
The €80bn-a-month quantitative easing scheme had been due to end in March, although the bank had been expected to extend it for at least six months.
In a move that surprised markets, the ECB said it would only buy bonds worth €60bn a month from April.
The bank also kept its key interest rate unchanged at zero as expected.
Yields on most eurozone government bond yields rose slightly after the changes were announced, before returning to levels hit just before the statement.
Germany's 10-year bond yield - the benchmark for the eurozone - was at 0.43% after falling as low as 0.37%. The return has risen since the summer after falling into negative territory for the first time in June.
After rising initially, the euro fell sharply against all major currencies including the US dollar.
The ECB said that if the economic outlook "becomes less favourable", it would expand the size or length of its bond-buying programme.
Mario Draghi, the bank's president, told a press conference in Frankfurt that "tapering has not been discussed".
Chris Williamson, chief business economist at IHS Markit, described the QE move as a reasonable compromise.
"The stimulus will provide a further boost the region's recovery in the face of elevated levels of political uncertainty, but also recognises the encouraging recent economic data flow and the growing constraint on the amount of assets eligible for purchase."
'Alice in Wonderland'
Neil Williams, chief economist at Hermes Investment Management, said the changes meant that the ECB's "liquidity sink is still filling up".
"By tapering its monthly asset purchases from €80bn down to €60bn, [Draghi] is still looking to inject an extra €540bn in QE. To put this into perspective, this easily surpasses in equivalent terms, the combined GDPs of Greece and Portugal for example."
However, Kathleen Brooks of City Index described the ECB meeting as a "financial version of Alice in Wonderland" given some of the changes the bank was forced to make to its bond-buying scheme.
"It will now include bond purchases below its own deposit rate, which is already minus 0.4%. Thus, the ECB will be paying to hold some bonds that will be included in its QE programme. The craziness doesn't stop there; some of those bonds have a negative yield because of the ECB's QE programme in the first place," she said.
"The ECB has had to buy negative-yielding bonds because it has bought all the eligible higher yielding stuff, so it has no choice."
Although the risk of deflation in the eurozone had largely disappeared, Mr Draghi said that "uncertainty prevails".
The bank raised its forecasts slightly for next year and now expects inflation of 1.3% - still some distance below its 2% target - and growth of 1.7%.
Inflation is expected to be 1.6% in 2018 and 1.7% the following year, with growth steady at 1.6% for both years.
The bank also left at zero its refinancing rate, at which it lends money to commercial banks, and -0.4% on deposits it takes from banks. That negative rate aims to encourage banks to lend money rather than hoard it at the ECB.
The decision to extend the QE scheme helped shares in Italian banks continue to rise, with the sector on track for its best week since at least 2009.
 
 
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BOJ, ECB to study virtual currency technology www3.nhk.or.jp

 
The Bank of Japan says it is launching a joint study with the European Central Bank into the possible application of a technology used for Bitcoin and other virtual currencies to market infrastructure.
 
The Japanese central bank announced the agreement with the ECB on Wednesday.
 
It says this will be the first joint study of its kind by major central banks. The main findings are expected to be released next year.
 
The study will involve the application of online distributed-ledger technology, or blockchain, to financial market payment systems.
 
Blockchain-based systems are believed to be safer and less costly than using a centralized database.
 
Some financial institutions and technology firms are already working towards introducing the technology.
 
The Bank of Canada is considering using it for its settlement systems.
 
BOJ Governor Haruhiko Kuroda recently expressed skepticism about introducing the technology for its own settlement system. But analysts say the BOJ is trying to assess the mid- to long-term possibilities.
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Cabinet approves list of energy projects to commence next year www.en.montsame.mn

 
Ulaanbaatar /MONTSAME/ At its regular meeting on Wednesday, the cabinet approved the list of projects covering spheres of energy, road and transport, to be realized in 2017. Agreements on implementation of these programs and projects will be concluded within the first quarter of 2017 with the selected investors to execute the project on Turn Key contracts.
 
The list incorporates the 250MWT Thermal Transmission Expansion Project on the Third Thermal Power Station; the 50MWT Thermal Transmission Expansion Project on Choibalsan Thermal Power Plant; Project on Baganuur-Choir Overhead Transmission Grids and Expansion Project on Baganuur Substation; Project on Construction of Choir Substation and Expansion Project; Project on 35KWT Overhead Transmission Grids connecting Khushuut mine with Altai soum of Khovd Province and Project on Construction of Substation; Project on Construction of Choibalsan-Khuut 192 km railroad, Project on Construction of 234km railroad connecting Khuut mine and Bichigt border checkpoint; Project on Construction of 281 km railroad connecting Zuunbayan station and Khangi border checkpoint; and Project on Construction of 45.3 km railroad connecting Nariinsukhait mine and Shiveekhuren border checkpoint.
 
 
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Japan Inc warns of global trade contraction under Trump presidency: Reuters poll www.reuters.com

 
Corporate Japan is bracing for a rocky ride under incoming U.S. President Donald Trump, a Reuters poll showed, with well over a third of firms seeing a contraction in global trade as concerns about a rise in U.S. protectionism threaten to shatter a fragile economic recovery.
 
Fully three-quarters of Japanese companies expect no expansion in world trade, highlighting festering anxiety that Trump's fiery protectionist rhetoric during campaigning might turn into growth-sapping policies through his four-year term that begins in January.
 
Throughout the campaign that led to his upset election win, the Republican president-elect pledged to redraw trade deals to win back American jobs. He has threatened Mexico and China with punitive tariffs that some economists have warned could spark a trade war that could potentially roll back decades of liberalization.
 
The Reuters Corporate Survey, conducted Nov. 22-Dec. 2, underscored such concerns.
 
The monthly poll of 531 big and mid-size firms found 40 percent expected global trade to shrink in the medium-term, 4 percent saw full-fledged trade friction, while 32 percent saw no change. Only one quarter predicted global trade will expand under Trump.
 
That would mark a deterioration in global trade, which has expanded at a modest rate below 3 percent in recent years after bouncing from a plunge in 2009 in the wake of the global financial crisis.
 
Trump has threatened to ditch the North American Free Trade Agreement, or NAFTA, between the United States, Canada and Mexico, arguing the agreement has sent U.S. manufacturing jobs to Mexico. He has also said he would withdraw from the Trans-Pacific Partnership, or TPP, an ambitious Asia-Pacific trade pact linking 12 countries including the United States and Japan.
 
In written responses, companies voiced concerns about the fate of TPP, NAFTA and Mexico, where Japanese automakers have plants, and how a waning American presence could pave the way for China to wield more influence worldwide.
 
"Reversal of free trade is a concern for our business, but what's more worrying is a weaker U.S. military presence in East Asia, which could embolden China to take control of the power vacuum in the region," wrote a manager at an electrical machinery company.
 
Trump "has declared exiting TPP and pushing bilateral trade pacts, and I'm worried about a shift in (global) trade regime towards one led by China," wrote a manager at a chemicals firm.
 
Managers answered on condition of anonymity in the survey, which was conducted for Reuters by Nikkei Research. Around 250 answered questions on the impact of a Trump presidency.
 
The uncertainty around Trump's trade policies adds to the risks for Japan's economy, which is struggling to mount a sustainable recovery amid slow global demand and sluggish domestic consumption.
 
UNPREDICTABLE
 
The survey found that three-quarters of Japanese companies saw no change in their investment stance towards U.S., while 14 percent said it would wane and the remaining 11 percent saw it growing.
 
Previous Reuters surveys taken during the election campaign had shown a majority of firms believed Trump would be bad for business in the United States, and that Japanese corporate appetite for investing in the U.S. would wane.
 
"Expectation is rising that Trump will adopt business-friendly steps such as infrastructure investment, tax cuts and deregulation," said Hidenobu Tokuda, senior economist at Mizuho Research Institute, who reviewed the survey results. "That said, companies remain cautious about what he says and does, which is all uncertain and utterly unpredictable."
 
The survey also found that companies worried both about a strong yen and a weak yen under a Trump presidency, suggesting there's no consensus on what sort of currency changes are in store.
 
The yen has nearly reversed all of this year's gains since the U.S. election - easing concerns about Japan's export-reliant economy - on expectations that Trump's proposed reflationary economic policies would push up U.S. interest rates.
 
Sixty-two percent said the dollar would move in a 100-110 yen range next year - slightly stronger than around a 111-114 yen range seen during the survey period. Just 27 percent saw it in the 110-120 yen and 2 percent said it would weaken beyond 120 yen. Eight percent saw it strengthening to the 90-100 yen range.
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Government to formalize EUR 70 million loan from IIB www.en.montsame.mn

 
Ulaanbaatar /MONTSAME/ On Wednesday, the Cabinet authorized the Minister of Finance to sign a Loan Agreement of up to EUR 70 million with the International Investment Bank. The loan term is up to seven year and has 3.89 percent interest rate.
 
The government intends to spend the loan funding for reduction of credit service costs and lengthening average period for loan repayments.
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Cabinet presenting draft resolution on risk prevention measures regarding DB www.en.montsame.mn

 
Ulaanbaatar /MONTSAME/ The Development Bank (DB) of Mongolia, since its establishment in 2011, have been operating with active assets of MNT 7.0 trillion. During the course of its operation, the bank has financed some 2,000 projects, and has liabilities of MNT 5.9 trillion.
 
The liabilities balance exceeds the amount of assets. In accordance with the Law on Development Bang of Mongolia, the liabilities must not exceed the amount of equity multiplied by 50.
 
If the Development Bank fails to observe its duty before the law, the risk of the loan payables to be recalled before the agreed date can be higher. Therefore, in order to prevent from such risks, the cabinet approved the draft parliamentary resolution on “some measures towards the Development Bank of Mongolia”, and resolved on Wednesday to immediately submit to the State Great Khural.
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Travel study reveals changing behaviour among young and old www.bbc.com

 
A major new study into how people travel around England shows a big difference between the generations.
Young people increasingly are ditching the car, whilst older people, especially women, drive more than ever.
The Independent Transport Commission (ITC) also found that people are making fewer trips than they did twenty years ago, but those trips are longer.
Men under 35 are the most likely to shun the car, whilst women over 60 are driving more than ever.
One of the authors, Dr Matthew Niblett, director of the ITC, says: "This report uncovers seismic shifts in patterns of individual travel behaviour."
Here is what they found and this is all per person per year.
Overall: The number of trips English residents are making per person has fallen by 15% between 1995 and 2014. However, the average trip distance (all modes) has increased by 10% and the average trip time by almost 15%.
Rich vs Poor: The gap between rich and poor car driver miles is still large but has been narrowing. For the richest income quintile, car driver miles have fallen by 10% between 1996 and 2014 (to about 4500 per year); however, for the poorest quintile, miles driven have risen by almost 20% (to about 1200 per year).
Young vs Old: Young men (under 35) car driver miles have almost halved between 1996 and 2014 (to about 3700 per year), while for women over-60, car driver miles have more than doubled over the same period (to about 1800 per year).
London: In London the fall in car distance travelled per person has been dramatic, falling by almost a third in outer London, and by more than half for inner London.
Rail: The one thing people are doing a lot more is catching the train, despite the fact that even allowing for inflation, fares have gone up by 25% since 1995. Average rail mileage per person has continued to rise sharply. This is due to a greater percentage of the population travelling by rail, rather than existing travellers making more or longer journeys.
Dr Niblett said: "We are seeing that the historic correlations between incomes, costs and travel are weakening. An inter-generational divide in travel behaviour is growing.
"For young adults, cars are increasingly viewed as utilitarian appliances, rather than aspirational goods. And there are also growing differences in travel patterns between rural and urban areas."
 
 
 
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