1 ‘ASIAN DOOR 2018’ FAIR KICKS OFF WWW.MONTSAME.MN PUBLISHED:2018/11/21      2 BEYOND BITCOIN: THE OTHER CRYPTOCURRENCIES YOU SHOULD KNOW TOO WWW.CNN.COM PUBLISHED:2018/11/21      3 ATTRACTING INVESTMENT FROM FRANCE TO AGRICULTURAL SECTOR WWW.MONTSAME.MN PUBLISHED:2018/11/21      4 MONGOLIA AND RUSSIA TO EXPAND COOPERATION IN TRANSPORT SECTOR WWW.MONTSAME.MN PUBLISHED:2018/11/21      5 NEWLY-OPENED CHINA-MONGOLIA FRIENDSHIP CULTURAL CENTER TO BOOST TIES WWW.CHINA.ORG.CN PUBLISHED:2018/11/21      6 UN APPRECIATES MONGOLIA’S CONTRIBUTIONS FOR NORTHEAST ASIA WWW.NEWS.MN PUBLISHED:2018/11/21      7 BHP OFFICIALLY DROPS 'BILLITON' FROM NAME WWW.MINING.COM PUBLISHED:2018/11/21      8 THE NOTICE: WWW.MONGOLIANBUSINESSDATABASE.COM PUBLISHED:2018/11/21      9 IRKUTSK REGION SUPPLIES USD 31 MILLION PRODUCTS TO MONGOLIA WWW.MONTSAME.MN PUBLISHED:2018/11/20      10 27 PARLIAMENT MEMBERS SUBMIT PETITION ON CABINET DISSOLUTION WWW.ZGM.MN PUBLISHED:2018/11/20      ОРОН СУУЦНЫ БАРИЛГЫН ӨРТГИЙН ИНДЕКС III УЛИРАЛД ЖИЛИЙН ДҮНГЭЭР 15 ХУВИАР ӨСЖЭЭ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/11/21     САЙЖРУУЛСАН ТҮЛШНИЙ БОРЛУУЛАЛТ УДААШИРЧЭЭ WWW.ZGM.MN НИЙТЭЛСЭН:2018/11/21     ЗАСГИЙН ГАЗРЫН ТОГТВОРГҮЙ БАЙДЛААС ҮҮДЭЖ “ГЭРЭГЭ” БОНДЫН ХАНШ БУУРЧЭЭ WWW.MEDEE.MN НИЙТЭЛСЭН:2018/11/21     ЭДИЙН ЗАСГИЙН ӨСӨЛТ 7.1 ХУВЬД ХҮРНЭ ГЭВ WWW.EAGLE.MN НИЙТЭЛСЭН:2018/11/21     ТӨРИЙН ҮЙЛЧИЛГЭЭ ЦАХИМД ШИЛЖЛЭЭ WWW.UNUUDUR.MN НИЙТЭЛСЭН:2018/11/21     УЛААН БУУДАЙ, ТӨМСНИЙ ДОТООДЫНХОО ХЭРЭГЦЭЭГ БҮРЭН ХАНГАНА WWW.GOGO.MN НИЙТЭЛСЭН:2018/11/21     "ГУДАМЖ" ТӨСЛИЙН 14 БАЙРШЛЫН, 50 ТЭРБУМ ТӨГРӨГИЙН БАЙГУУЛАМЖИЙГ НИЙСЛЭЛИЙН ӨМЧИД БҮРТГЭЖ АВЛАА WWW.MONTSAME.MN НИЙТЭЛСЭН:2018/11/21     САНАМЖ: WWW.MONGOLIANBUSINESSDATABASE.COM НИЙТЭЛСЭН:2018/11/21     ЭРЧИМ ХҮЧНИЙ ИХ АЧААЛАЛ 973 МВТ-Д ХҮРЧЭЭ WWW.EAGLE.MN НИЙТЭЛСЭН:2018/11/20     ЗАСГИЙН ГАЗРЫГ ОГЦРУУЛАХ БИЧИГ ӨРГӨН БАРЬСНЫ ДАРАА "ГЭРЭГЭ" БОНДЫН ХАНШ БУУРЛАА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/11/20    

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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VAT Law implementation results in growth of government budget revenue www.montsame.mn

Ulaanbaatar /MONTSAME/ The “Changemakers” club of economic journalists has organized a discussion on the implementation of the new Law on Value Added Tax. The event gathered some important figures, including the chairman of the General Department of Taxation, directors of public and private companies and university professors.

The VAT Law was adopted on July 8 of 2015 and entered into force on January 1 of 2016. Citizens were introduced to use of a new online system to register receipts of their each purchase as VAT payers and to receive 20 percent VAT return after completion of each fiscal year.

Chairman of the Taxation Department L.Zorig underlined that, with the implementation of the law for one year brought MNT 70 billion of increase from VAT charging to the country’s economy compared to that of 2015. To be specific, he added, the taxation department accumulated MNT 1.565,4 trillion to the Government Budget in 2017. Some 35 percent or MNT 555.2 billion were the revenue from VAT, which represents 70 percent increase against the previous year.

As of today, there are 63,183 registered VAT set-off paying companies. In the past year, 169,473 users of online “ebarimt” system out of the total 621,538 users won the VAT lottery. The annual VAT return of MNT 35 billion will be distributed to more than 620 thousand citizens. A half of the return has been planned to be allocated to each individual accounts before the lunar new year. However, the procedure has been facing some difficulties due to missing information from over 140 thousand VAT payers, according to the related officials.

The law implementation enabled the government to better monitor the companies’ sales revenues and helped shrink the shadow economy, considers Prof. D.Dalkhjav, Dean of Economy and Business School of the University of Agriculture.

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China economy grows 6.7% in 2016 www.bbc.com

 
China's economy grew by 6.7% in 2016, compared with 6.9% a year earlier, marking its slowest growth in more than a quarter of a century.
China's growth is a key driver of the global economy and a major concern for investors around the world.
The figure is in line with Beijing's official growth target of between 6.5% and 7%.
But some observers say China's growth is actually much weaker than official data suggests.
For the fourth quarter, the world's second biggest economy grew by 6.8%.
China is the world's second-biggest importer of both goods and commercial services, meaning its economic performance has a big knock-on impact around the world.
It plays an important role as a buyer of oil and other commodities. Its slowdown has been a factor in the decline in the prices of such goods.
Beijing's aim to rebalance the economy towards domestic consumption has led to major challenges for large manufacturing sectors with layoffs, especially in heavily staffed state-run sectors such as the steel industry.
Trump effect?
Although China's economy picked up slightly in the last three months of 2016, the rebound was not expected to continue according to the Economist Intelligence Unit (EIU) which is predicting growth of 6.2% this year.
"A slowdown in the property market and steps to address supply shortages in the commodity sector ought to drag again on demand and output," said the EIU's Tom Rafferty.
He also pointed to potential damage to US-China trade ties under a Donald Trump presidency.
Meanwhile Tim Condon from ING in Singapore said relations with a Trump administration were "the biggest known unknown".
"Trump advisers and cabinet-nominees have identified the US-China relationship as in need of adjustment to support the president-elect's objective a manufacturing renaissance."
The trade of goods and services between US and China amounted to an estimated $659bn (£534bn) in 2015. The United States has a trade deficit with China, totalling $336bn in 2015.
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Western Union admits to aiding wire fraud, to pay $586 million www.reuters.com

 
Western Union Co (WU.N), the world's biggest money-transfer company, agreed to pay $586 million and admitted to turning a blind eye as criminals used its service for money laundering and fraud, U.S. authorities said on Thursday.
Western Union, which has over half a million locations in more than 200 countries, admitted "to aiding and abetting wire fraud" by allowing scammers to process transactions, even when the company realized its agents were helping scammers avoid detection, the U.S. Department of Justice and the Federal Trade Commission said in statements.
With the help of Western Union agents, Chinese immigrants used the service to send hundreds of millions of dollars to pay human smugglers, wiring the money in smaller increments to avoid federal reporting requirements, U.S. authorities said.
Fraudsters offering fake prizes and job opportunities swindled tens of thousands of U.S. consumers, giving Western Union agents a cut in return for processing the payments, authorities said.
Between 2004 and 2012, the Colorado-based company knew of fraudulent transactions but failed to take steps that would have resulted in disciplining of 2,000 agents, authorities said.
"Western Union is now paying the price for placing profits ahead of its own customers," said Acting Assistant Attorney General David Bitkower.
A Western Union spokesman said that the company didn't "do as much as it should have" to oversee its agents between 2004 and 2012 but is committed to improving its procedures.
Western Union, which helped clients move over $150 billion in 2015, said in a press release that more than one-fifth of its work force is currently devoted to compliance. It also said consumer fraud accounts for less than one-tenth of 1 percent of consumer-to-consumer transactions.
The settlement will fund refunds for customers who were victims of scams, authorities said. It will also implement a comprehensive anti-fraud program to train agents to identify and stop transactions that result from fraud.
Between 2004 and 2015 Western Union collected 550,928 complaints about fraud, with 80 percent of them coming from the United States where it has some 50,000 locations, the government complaint said. The average consumer complaint was for $1,148, the government said.
Western Union reported revenues of $1.4 billion for the quarter that ended on September 30, 2016, according to a government filing. The company said it spent some $200 million a year on compliance.
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China extends Hollywood push with $1 billion Paramount investment www.reuters.com

 
Viacom Inc's Paramount Pictures will receive a $1 billion cash investment from two Chinese film companies, Shanghai Film Group (SFG) and Huahua Media, giving the U.S. studio much-needed cash and support as it attempts to grow.
As part of the agreement, SFG and Huahua Media will finance a combined 25 percent of all of Paramount's films for the next three years, with the option to extend to a fourth year, a source familiar with the situation said.
The deal comes as parent company Viacom focuses on a turnaround plan under new Chief Executive Officer Bob Bakish.
It also follows a spate of tie-ups between China and U.S. producers, with Chinese investors increasingly keen to lend their financial muscle to boost their stake in Hollywood.
U.S. studios such as Warner Bros, Walt Disney Co, Dreamworks, Lionsgate and STX Entertainment have all made tie-ups with Chinese firms to fund productions or help boost their presence in China's fast-growing film market.
Last year, Chinese real estate conglomerate Dalian Wanda Group spent $3.5 billion to buy a controlling stake in U.S. film studio Legendary Entertainment, while Paramount worked with Alibaba Pictures Group Ltd in 2015 to promote "Mission: Impossible - Rogue Nation" in China.
The studio could now use the latest partnership as an entry point into China, Paramount CEO Brad Grey told Reuters in an interview, adding that the studio would someday be interested in producing films in the country.
"Certainly Paramount would love to produce films (in China) and we think that should be a win for us," Grey said.
The agreement marks the first major move by Grey since Viacom's former CEO, Philippe Dauman, tried to sell a 49 percent stake in the movie studio to Dalian Wanda last year.
"This will give Paramount the wherewithal to build the slate and produce, as a major studio should, 15-17 movies a year," Grey said. Over the past few years, under Dauman, Paramount's production fell as low as eight films in a given year.
"You really can't operate a major studio with that," Grey said, referring to the lower figure.
Shanghai Film Group and Huahua Media said in a joint statement with Paramount that they were keen to deepen their cooperation on film projects through the deal. Both firms declined to comment further when contacted by Reuters on Friday.
Huahua has partnered with Paramount on several films, including "Transformers: the Age of Extinction" and "Star Trek Beyond". State-linked Shanghai Film Group was an investor in "Jack Reacher: Never Go Back".
Viacom shares moved higher in Thursday afternoon trading but pared gains to close at $39.80.
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Erdenes Mongol: Coal-to-liquids fuel industry to produce 10 thousand barrels per day www.mongolia.gogo.mn

 
Erdenes Mongol LLC and Polaris Asset Corp., have agreed to cooperate on coal-to-liquids fuel industry project, which will be implemented for three and a half year.
According to the preliminary estimates, Mongolian economy can save US$ 269.5 million annually, if the industry produces 10 thousand barrels of liquid fuel per day, reports Erdenes Mongol LLC.
The industry is expected to have a capacity to generate 100-150 MW power and will use “Fischer-Tropsch” technology that are environmentally friendly.
"In addition to ensuring sustainable development of the Mongolian economy, the coal-to-liquids fuel industry will support the fuel and energy independence as well as national security", highlighted by the CEO of Erdenes Mongol LLC Ts.Tumentsogt.
According to the expected economic benefits of the project, 25 percent of the industry production will be fuel, 75 percent will be diesel fuel and by-product. The industry will able to reuse and sell by-product.
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US coal industry to decline even further in 2017 — IEEFA www.mining.com

 
Despite a spike in coal prices last year and promises of better times ahead for the sector by President-elect Donald Trump, the US coal industry will continue to decline this year, though at a slower pace than in 2016, a new study shows.
According to the Institute for Energy Economics and Financial Analysis (IEEFA), while US coal producers stand to gain limited market share in day-to-day competition due to a relative increase in the price of natural gas, its main competitor, any such gains will be marginal, it said in a report published Thursday.
The authors, IEEFA Director of Finance Tom Sanzillo and Director of Resource Planning Analysis David Schlissel, believe coal will remain at the mercy of market economics. As such, they see production declining by as much as 40 million tonnes this year and prices failing to increase enough to benefit shareholder or stimulate new investment.
Prices for thermal coal, which climbed up to $110 a tonne last year, have been falling in the last two weeks, trading close to $82 a tonne. Meanwhile, coking coal, which hit more than $300 a tonne in late 2016, is also down almost 40% at roughly $176 a tonne.
The analysts also predict little or no gain from regulatory relief as capital continues its flight from coal, as well as increasingly dim employment prospects.
They argue that, despite the hopes of many, the current power shift in Washington will have little impact on the industry.
“Our outlook starts by acknowledging that the U.S. coal industry begins 2017 with better optics than it had a year ago,” they wrote in a related blog post. “A new administration comes to power in Washington this week promising regulatory relief and a coal resurgence, major industry players are emerging from bankruptcy, and a recent spike has occurred in global prices.”
While these optics are positive on their face, IEEFA sees the industry as a sector saddled with fundamental problems.
One of main issues dragging the industry down, the authors say, is that too many companies are still mining too much coal for too few customers.
The report concludes with yet another gloomy note, arguing that the long-term outlook for the industry in every coal-mining region from now through 2050 is “poor” and predicts that more coal-fired power plants will close while utilities will continue to allocate capital away from coal.
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Soros teaming up with MasterCard to help refugees www.rt.com

 
Billionaire investor George Soros and global payments company MasterCard are planning to create a social enterprise to help refugees and migrants, as well as others struggling within their communities all over the world.
 
NilssonSoros to make a killing with European 'forced migration'
The partnership, called Humanity Ventures, seeks to apply commercial strategies to deliver a positive impact on society. The move follows Soros’ pledge to assign up to $500 million to address the challenges facing migrants and refugees.
 
Despite billions of dollars spent on humanitarian aid and development projects, millions of people remain marginalized, said MasterCard and Soros in a joint statement, stressing that the private sector could help rectify the situation.
 
“Our potential investment in this social enterprise, coupled with MasterCard's ability to create products that serve vulnerable communities, can show how private capital can play a constructive role in solving social problems,” said Soros.
 
The new enterprise intends first to target healthcare and education, supporting local economic development and entrepreneurship.
 
“Migrants are often forced into lives of despair in their host communities because they cannot gain access to financial, healthcare and government services,” said the billionaire.
 
Once the venture is established, Soros could contribute up to $50 million to make these solutions more scalable and sustainable, as well as encourage smaller programs aimed at reducing the migration crisis.
 
“Humanity Ventures is intended to be profitable so as to stimulate involvement from other businesspeople. We also hope to establish standards of practice to ensure that investments are not exploitative of the vulnerable communities we intend to serve.” Soros said.
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Alibaba backs Olympics through 2028 www.cnn.com

Alibaba has bagged a big Olympic deal.
For 12 years, the Chinese e-commerce giant will supply technology to the International Olympic Committee to help organize the Games, support a new shopping platform for merchandise and run a Chinese version of the Olympic internet TV channel.
Jack Ma, the founder and executive chairman of Alibaba (BABA, Tech30), announced the deal at the World Economic Forum in Davos, Switzerland, alongside IOC President Thomas Bach.
Ma called it a "historic day for Alibaba."
"This is a long term agreement, we are the first Chinese company to engage in an agreement like this, and we are hoping we can empower the Olympic movement even more," Ma said.
Alibaba will create a global e-commerce platform that will sell official Olympic products to fans.
"All our 206 national Olympic committees will be able to connect better with fans looking for Olympic-licensed products," said Bach.
Jack Ma Davos

The deal will last until the 2028 summer Olympics, covering the next six games -- three winter, three summer.
Alibaba will support the organizers of each games, and in return receive rights including advertising and promotional use of Olympic marks and imagery from the Olympic Games, as well as marks from the National Olympic Committees.
Neither Alibaba nor the IOC would comment on the financial value of the deal.
Alibaba has also become a partner of the "Olympic Channel," launched after the 2016 Rio Olympics to show Olympic content all year round online and on iOS and Android mobile apps.
Bach said the deal was first discussed a year ago. "[Ma] inspired me from the very first moment...now we are here to announce this exciting partnership," he said.
One area of potential friction is counterfeits on Alibaba's platforms. (The U.S. just returned Alibaba to its "notorious markets list" for pirated goods.) The IOC and national organizing committees go to great lengths to protect Olympic trademarks.
Ma pledged to do more to tackle the problem. He said Alibaba is spending more than one billion yuan to fight the problem, but admitted there was no easy answer.
"We are listing more than 1.2 billion products on our site, this is a huge world, governing and managing a world like this is not easy," he said. "This is something that I am gonna fight for... we are confident that by working together [with the IOC], we are going to create a masterpiece," he said.

 
 
 
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MNT 447 million allocated for saiga conservation www.gogo.mn

The Government of Mongolia has decided to allocate MNT 447 million for saiga conservation that are suffering from rinderpest. 
According to the data as of Jan 9th, about 693 saigas in Mongolia died due to a rinderpest. 
Mongolian saigas, one of the most threatened species on the planet inhabit six soums of Gobi-Altai and Khovd aimags, the western Mongolia. 
In 2015, saiga population in Mongolia were stood at 13,000 while global population of saiga was estimated at 120,000. 
Saiga once had a much larger range. Today, saiga are only found in Kazakhstan, Uzbekistan, Russia and Mongolia. All of the saiga’s range states were part of the Soviet Union or China for most of the last century. Saiga went extinct in China in the 1960s.
Saiga hold a sad record in the animal world – they are one of the fastest declining mammal species on our planet today. Since the early 1990s over 95% of the saiga population has disappeared. There is considerable international concern, and saiga have been listed as Critically Endangered by IUCN, the International Union for Conservation of Nature.

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Korean Air used electric stun gun on five passengers www.bbc.com

South Korea's national airline has used electric stun guns on five passengers during flights, the BBC has learned.
Korean Air is believed to be the only major carrier to routinely have the weapons on board.
The airline is ramping up training for staff using the guns after criticism for the way it handled a recent in-flight disturbance.
In that incident, US singer Richard Marx was among passengers who helped restrain an unruly passenger.
Afterwards, both Mr Marx and his wife Daisy Fuentes used social media to claim that the crew was "ill-trained".
Ms Fuentes wrote on Instagram: "They didn't know how to use the Taser and didn't know how to secure the rope" around the passenger.
Taser is a brand name of a electric stun gun. The reference surprised many who did not expect airlines to carry the weapons, which are more commonly used by police.
Paralysis
The carrier told the BBC it first introduced electric stun guns in 2002.
It now carries at least one set of weapons on every plane, with two sets on its A380 jumbo jets.
A Korean Air spokesman said that of the five incidents, three involved the gun being fired.
In those instances, the gun used compressed air to fire darts that release a 50,000-volt electric charge, designed to temporarily paralyse the target.
In the two other cases, the weapon was used as a stun gun, with the electric current fired directly into the passenger, with the weapon held against them at close range.
Korean Air would not give further details about what prompted each incident, when they occurred or what happened to the passengers.
But it confirmed all took place while the aircraft were airborne.

After the incident involving Mr Marx, the airline said it was training its crews to use the weapons more "readily" against violent passengers.
'Asian culture'
It also invited media to see a session where crew were practising using Tasers.
Korean Air's former president, Chi Chang-hoon, said Asian airlines had not followed US carriers in tackling on-board violence and suggested "Asian culture" was to blame.
However, the airline's spokesman said that current protocol limited cabin crews to using tasers "only during life threatening situation or when the safety of an aircraft is threatened".
Do other airlines carry electric stun guns?
The International Air Transport Association (IATA) said airlines were not required to inform them if they carried the weapons on board.
Several major carriers contacted by the BBC declined to comment on whether or not they had Tasers on board, citing security concerns.
But some large airlines including Etihad, Malaysia Airlines and India's Jet Airways confirmed they did not carry electric stun guns.
And sources at other global carriers, including Emirates and Lufthansa, also said they were not part of standard on-board kit, although the airlines did not officially confirm this.
However, most airlines do carry equipment to restrain disruptive passengers including ropes, cuffs and adhesive tape.
Are Tasers safe to use on planes?
There is some risk to using Tasers or other similar stun guns, although this tends to revolve around the harm to those hit by them.
In the UK, there have been at least 17 deaths linked to the use of stun guns since they were introduced by police in 2003.
And while not ideal to use one on a plane, there is not thought to be any great risk to the safety of a plane if a Taser was activated.
Bear in mind that proponents of air marshals (see below) argue that even when using regular gunfire on a flight - the level of risk is manageable.

Unruly behaviour on aircraft is a growing problem according to a study by IATA, with a sharp rise of incidents in 2015.
Incidents of people getting in fights, being verbally abusive or refusing to follow cabin crew orders were up by 17%.
Alcohol or drug use was identified as a factor in one-in-four incidents.
In 11% of cases, there was physical aggression or even damage to the aircraft.
Some 10,854 incidents of passengers disrupting flights were reported to IATA last year, up from 9,316 incidents in 2014. That's one incident for every 1,205 flights.
Are there still air marshals on planes?
An air marshal is an undercover armed guard on board a commercial aircraft, to counter hijackings and other hostile acts.
In the event of an imminent threat from a passenger, air marshals say they are trained to respond with lethal force.
Their use was ramped up, especially in the US, after the 11 September 2001 attacks.
It is thought there are now several thousand marshals employed by the US Department for Homeland Security, compared with the 33 flying regularly pre-9/11.
Israel's El Al has had armed marshals operating on its flights for more than 30 years.
IATA says that - perhaps not surprisingly - countries which do employ air marshals, do not disclose which flights they are on.

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