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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S.Korean court dismisses warrant for Samsung chief www.nhk.or.jp

A court in Seoul has dismissed a request for an arrest warrant for the de facto head of the country's biggest family conglomerate, Samsung.

A special prosecutor's team looking into a political scandal involving President Park Geun-hye requested the arrest warrant on Monday for Samsung Electronics' vice chairman Lee Jae-yong. It is accusing Lee of bribery, embezzlement, and other charges.

The Seoul Central District Court summoned Lee for questioning on Wednesday, which lasted 4 hours.

South Korean media report that the court denied the request early Thursday.

The court reportedly judged there was not enough reason to issue the arrest warrant for Lee at this point.

Lee returned home from a detention house where he was awaiting the court decision.

The prosecutors say Lee paid about 36 million dollars to 2 foundations closely linked to the president's confidante Choi Soon-sil, in return for favors from the presidential office involving the merger of 2 Samsung affiliates.

The merger is believed to have been necessary for Lee to become head of the group's management.

Local media report that denial of the arrest warrant could deal a heavy blow to the prosecutors, who had planned to arrest Lee, while overriding concern about the negative impact on the country's economy.

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Arrest warrant sought for S.Korea culture minister www.nhk.or.jp

A special prosecutor's team in South Korea has requested an arrest warrant for Culture Minister Cho Yoon-sun. She is suspected of abusing her power.

Cho is alleged to have helped create a blacklist of over 9,400 cultural figures considered critical of the administration of the country's disgraced president. Park Geun-hye is embroiled in an influence-peddling scandal.

The special prosecutor's team suspects the figures on the list were denied government support.

They asked a court in Seoul on Wednesday to issue arrest warrants for Cho and a former presidential chief of staff.

The court is to consider whether to approve the warrants, which include the first request to arrest a current minister in connection with Park's scandal.

Cho's predecessor, former culture minister Kim Jong-deok, was arrested last week on suspicion of abuse of power as part of the creation of the list.

Observers say attention is increasingly shifting to whether Park herself was involved in making the list.

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Rolls-Royce apologizes for bribery scandal and pays huge fine www.rt.com

British engineering company Rolls-Royce has agreed to pay a record £671 million ($830 million) to British, US and Brazilian authorities to settle bribery and corruption allegations.

The company said it “apologized unreservedly for the conduct which has been uncovered.”

The three countries launched the investigation five years ago, as they suspected Rolls-Royce of hiring intermediaries to pay bribes to win better contracts internationally.

According to Britain’s Serious Fraud Office (SFO), this is the “largest individual investigation conducted by the SFO to date.”

The SFO concluded that in Indonesia, senior Rolls-Royce employees agreed to pay $2.25 million and give a Rolls-Royce Silver Spirit car to an intermediary in exchange for a “favor to Rolls-Royce on a contract” for Trent aero engines. Separately, the British firm bribed a rival bidder to submit an uncompetitive bid to keep the contract.

In China, Rolls-Royce paid $5 million to CES, a state-owned Chinese airline, while negotiating the sale of T700 engines. The company agreed to provide the Chinese with a two-week MBA course at Columbia University, and "four-star accommodation and lavish extracurricular activities."

In Russia, Rolls-Royce won a contract to supply equipment to the state-owned gas company Gazprom by paying a senior Gazprom official, the SFO concluded.

Brian Leveson, the president of the Queen’s Bench Division of the High Court, said if Rolls-Royce had not been prosecuted, it would be hard to pursue any other company in the future.

“My reaction when first considering these papers was that if Rolls-Royce were not to be prosecuted in the context of such egregious criminality over decades, involving countries around the world, making truly vast corrupt payments and, consequentially, even greater profits, then it was difficult to see when any company would be prosecuted,” he said in his judgment.

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Hyundai unveils U.S. spending plan before inauguration www.asahi.com

SEOUL--Hyundai Motor Group said Tuesday it will significantly increase its investment in the U.S. while Donald Trump is president and is considering building a new U.S. factory.

Chung Jin Haeng, a president of the world's fifth-largest automotive group, said Hyundai Motor, Kia Motors and their affiliated companies will spend $3.1 billion (350 billion yen) by 2021 on research and development and maintaining their factories in Alabama and Georgia.

That represents a 50 percent increase from the $2.1 billion the companies invested in the U.S. in 2012-2016. The increased spending comes mostly from research and development, as the South Korean maker of the Genesis and Tucson invests in artificial intelligence, autonomous driving, environmentally friendly cars and other future technologies.

Chung said Hyundai will study building a new U.S. factory if demand for cars rises during Trump's administration. The new administration's promise to create 1 million jobs and attract new companies could stimulate demand for cars and other products, he said.

"If there is such a sign, we will immediately review (the new plant)," he told reporters. "We won't miss when the time is right."

Hyundai did not provide any further details about a possible new plant.

The South Korean group does not usually disclose its five-year investment plan for specific countries, and the announcement of the U.S.-specific investment plans comes just a few days before the president-elect takes office on Friday.

Since Trump won the election, he has badgered auto companies about building their cars in the United States rather than Mexico.

The South Korean automotive conglomerate has not yet drawn public attention from the president-elect, who threatened to impose a border tax on vehicles made in Mexico by Ford Motor Co., General Motors Co. and Toyota.

Automakers have responded to Trump's threat by affirming their commitment to the U.S. market. Earlier this month, Ford announced it had scrapped plans to build a new $1.6 billion small-car factory in Mexico while Fiat Chrysler announced a $1 billion investment plan in its two U.S. factories.

Nearly all automakers build small cars in Mexico to take advantage of its lower wages.

Hyundai is not an exception. When Kia's first Mexico plant launched operations just two months before the Nov. 8 election, the group said about 80 percent of the vehicles assembled there will be exported mainly to the United States and other countries. The plant has a capacity to turn out 400,000 cars per year.

That Mexico plant is now "a source of worry" for the carmaker, Chung said, without elaborating why. He said Hyundai does not plan additional investments in Mexico.

He denied that political pressure was behind the company's announcement of its U.S. investment plan.

"The U.S. market is strategically important for us," he said. "Success or the failure in the U.S. market is a measure of global success."

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China's richest man still wants to buy a Hollywood studio www.cnn.com

China's richest man has a problem: No one is willing to sell him a Hollywood studio.
Despite signs of increased hostility toward Chinese investment in the U.S., Wang Jianlin still wants to buy one of Hollywood's "Big Six."
"If we are able to buy one of the top six, that would be a great thing to do," the chairman of Dalian Wanda Group said Wednesday at the World Economic Forum in Davos. "However, these six are not in a selling mood. That's something we can't crack."
Wang, who runs a gigantic real estate and entertainment business, has made a series of high-profile Hollywood acquisitions in recent years. But a major studio has proved elusive.
"Let me just communicate this message: I would be a happy buyer," Wang said of the studios, which include 20th Century Fox and Warner Bros (owned by CNN parent Time Warner (TWX)).

Wang's investments in the U.S. have attracted the attention of some U.S. lawmakers, who have called for tougher government scrutiny of such deals.
Wang brushed aside those concerns, saying the U.S. had nothing to fear.
"So far, the U.S. government has not launched any censorship or control of entertainment," he said. "That would be a step back."
But Wang also made clear that there would be consequences if the U.S. chose to interfere.
"If China were to retaliate, it would be bad for both parties," he said, adding that he had asked the head of the Motion Picture Association of America to tell President-elect Donald Trump: "No war, please."
But it's far from a level playing field. China already enforces strict controls on American entertainment companies, limiting the number of Western movies that can be shown in cinemas, and censoring their content.

Buying a major Hollywood studio would make Wang a top player in the industry. He already owns the AMC Theaters chain, and is active in film distribution. A major studio would give him control of film production, too.
If a deal were to materialize, he pledged to take a hands-off approach with the studio.
"It's still a company run by Americans," he said. "We won't interfere with content. We just want the profit."

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Russia's Sberbank Planning Joint Venture With Chinese E-Retail Giant Alibaba www.themoscowtimes.com

Russia's largest bank is planning a potential joint venture with Chinese e-retail giant Alibaba, the Kommersant newspaper reported Wednesday.

Representatives from state-owned Sberbank and the Alibaba Group have already met this month to discuss the potential project, the newspaper reported, citing an unnamed source.

Any joint venture would see Sberbank control at least a 50 percent stake and provide much of the financial investment, the source said. In return, the Alibaba group would use its existing cross-border infrastructure and delivery systems across Russia neighboring countries.

The venture, which may become one of the largest players in Russian e-commerce, could be worth several billion dollars, Kommersant reported.

The Alibaba Group registered a Russian subsidiary in June 2015, opening its flagship e-commerce site AliExpress to Russian retailers five months later.

The online retail market continues to grow in Russia, with 43 percent of Russians buying from foreign online retailers in the past 12 months, according to research from the Data Insight company in March 2016.

Russian retailers exporting online have also seen their sales almost double over the past year, outstripping domestic e-commerce with sales worth approximately $2 billion.

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$25 trillion investment needed to meet future oil demand www.rt.com

The world needs to invest $25 trillion in new oil-producing capacity over the next 25 years to meet growing demand, Saudi Aramco’s chief executive Amin Nasser said at the World Economic Forum in Davos on Tuesday.

According to the CEO of Saudi Arabia’s giant state-held oil company, global demand for oil and gas will still grow in the coming decades, so if capital investment drops, it could create “spikes” in prices and hurt the global economy, CNBC reports. Demand is still healthy and oil “will be with us for decades”, CNBC quoted Nasser as telling a Wall Street Journal panel at the Davos forum.

The global oil and gas industry needs to expand and requires more investment, Nasser said.

After two years of significantly lowered capital investment by the industry, a recent report by Wood Mackenzie suggests that “the global investment cycle will show the first signs of growth in 2017, bringing the crushing two-year investment slump to a close”.

WoodMac sees E&P global spend rise with about 3 percent in 2017 to around $450 billion. According to WoodMac’s Malcolm Dickson, ‘’companies will get more bang for their buck,” as internal rates of return jump from 9 to 16 percent, comparing 2014 to 2017.

The chart below from WoodMac shows that the amount of final investment decisions (FID’s) are expected to double in 2017, compared to 2016.

At the WEF, Saudi Aramco’s chief executive noted that renewables would gain some market share in the long run, but renewable energy would not dominate.

“It will take decades for them [renewables] to replace petroleum resources. So what we are doing in Saudi Aramco we are building our capacity in the oil,” according to the manager.

Saudi Arabia currently has oil capacity of 12.5 million bpd, which it continues to build upon, Nasser said.

The Kingdom also plans to double its gas capacity over the next decade, which would enable it to ship more crude oil onto the market, Saudi Aramco’s manager added.

Just yesterday, Saudi Arabia’s Energy Minister Khalid Al-Falih said that his country would begin soliciting bids for a “massive” renewable energy push, with spending reaching as high as $50 billion. The move is intended to source at least 10 GW of electricity from solar and wind by 2023, a rapid escalation of renewable energy installations for the Kingdom in order to conserve oil for exports.

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Mongolia has now a debt of USD80 million loan to Chalco www.mongolia.gogo.mn

 
Mongolian Government has now a debt of USD80 million loan to the Aluminum Corporation of China Limited (Chalco). Mongolia has been paying off its USD 350 million debt to Chalco since 2011.
65 per cent of all extracted coal from East Tsankhi block of Tavantolgoi mine has been paid back to “TTJVCO” company for its extraction work and 35 per cent has been supplied to Chalco for the loan repayment.
The Erdenes Tavantolgoi Company could not raise its coal price more than USD30, when coal price jumped to over USD200 in the world market due to the loan agreement. However the company has managed to agree with Chalco to supply coal from East Tsankhi block of Tavantolgoi at USD59.3 within the first quarter. That price is expected to be kept till the second quarter.
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HP Enterprise just bought a $1 billion startup for $650 million www.businessinsider.com

 
HP Enterprise has bought SimpliVity, a Massachussetts-based storage startup, for $650 million in cash.
 
At the time of SimpliVity's last fundraising, in March 2015, the company had declared that it was valued at "more than $1 billion." All in all, SimpliVity had raised $276 million from investors like Kleiner Perkins, Accel, and Waypoint Capital.
 
That discounted purchase price is not an encouraging sign for the viability of "unicorn" startups of $1 billion or more. In 2017, companies like Snap, Spotify, and Dropbox will likely have to justify their enormous valuations to Wall Street, and deals like this one will only enhance investor skepticism.
 
SimpliVity competed most directly with Nutanix, a fellow former "unicorn" with a private valuation of $2 billion, that went public in September 2016.
 
Both companies were racing to make a dent in the market for so-called "hyperconverged" infrastructure, a more cost- efficient way of handling data center-scale server storage that poses a threat to hardware giants like Dell EMC and HP Enterprise. Spending in this market is expected to reach $19 billion by 2018, Gartner predicts.
 
By buying SimpliVity, HP Enterprise takes the startup's capabilities and adds it to their own — crucial as the company moves to compete with the combined Dell EMC juggernaut, following the close of their mega-merger. Dell EMC, for its part, has been investing heavily in the market, and resells Nutanix hardware to its customers.
 
On a final note, SimpliVity has an interesting background: Founder and CEO Doron Kempel was once part of an elite Israeli special forces unit charged with killing Saddam Hussein, on a failed 1992 mission that resulted in five casualties. Afterwards, Kempel moved to the United States to work for EMC and, later, IBM.
 
More recently, SimpliVity was tapped as consultants for the most recent season of HBO's "Silicon Valley," where they helped the showrunners make sure that Pied Piper's "beautiful box" was as realistic as possible.
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Tibet leads in China's electricity consumption growth www.chinadaily.com

LHASA - Tibet reported the fastest growth in electricity consumption across China last year as its economy continued to grow at a double-digit rate for a 24th consecutive year.

Tibet consumed 4.18 billion kilowatt hours of electricity in 2016, up 21.4 percent, according to an industry report.

The region achieved a gross domestic product of 115 billion yuan ($17 billion) in 2016, 11.5 percent up on 2015, according to the local annual legislative meeting held last week. The rate is nearly 5 percentage points higher than the national average.

Two electricity transmission lines, one from Qinghai and the other from Sichuan, were put into operation in 2012 and 2014.

With the power grid now covering nearly 80 percent of counties in Tibet, electricity consumption in rural areas has grown.

The region is also replacing coal burning with electricity.

"A total of 142 million kilowatt hours of electricity replaced coal in 2016," said Liu Xiaoming with the State Grid's Tibet Electric Power Co. "The region is expected to replace 177,100 tons of coal with one billion kilowatt hours of electricity."

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