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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Boeing receives order for 40 planes from Qatar www.bbc.com

US aircraft maker Boeing has announced a major deal to supply Qatar Airways with wide-body jetliners.
The deal includes 30 787-9 Dreamliners and 10 777-300ERs, valued at $11.7bn (£9.4bn) at list prices, along with the option to buy 60 737 MAX 8s, valued at $6.9bn at list prices.
It is the largest single order ever placed by the Gulf carrier.
The deal gives Boeing a boost in a year when orders for widebody planes have slumped.
Qatar has been frustrated over prolonged delivery problems from Boeing's European rival aircraft maker, Airbus.
Media reports last week suggested the deal was for at least 30 Boeing 777 and 787 jets, valued at about $6.7bn.
Airplane makers typically give large discounts on the list price when carriers order in bulk.
Analysis: Michelle Fleury, New York business correspondent
The continuing fight between Qatar Airways and Airbus has turned nasty - with Boeing emerging as the big winner.
The chief executive of the Gulf carrier, Akbar Al Baker, is a forthright individual. He has previously described his airline's relationship with Airbus as "strained" because of delivery delays and engine problems with the Airbus A320neos.
Now Akbar Al Baker is sending Airbus a message, with a big order for its American rival. The mega deal is not just a financial winner for Boeing. It's also a huge boost for the US plane maker's single aisle 737 MAX aircraft.
It is the US aerospace giant's newest plane and doesn't go into service until next year.
And politics may also be at play.
There was a suggestion that the Qatar government may have delayed the Boeing passenger jet order to put pressure on the US to approve a deal for Boeing fighter jets to the Middle Eastern country - a deal which the Americans now look set to approve.

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ExxonMobil faces fine from Chad 5 times country's GDP www.rt.com

Chad's high court has ordered an oil consortium headed by America’s ExxonMobil to pay $74 billion in fines for alleged unpaid taxes, Bloomberg reports. The court has also demanded the oil giant pay $819 million in overdue royalties.

The record figure is almost five times the country’s GDP of about $13 billion.

The fine is the biggest ever imposed on an energy company, exceeding the $61.6 billion penalty against BP over the Gulf of Mexico disaster that killed 11 workers and left a spill of over 3 million barrels of oil.

Experts say Chad is unlikely to see most of the fine.

“Nobody is going to cooperate outside of Chad in enforcing this judgment; this leaves Exxon exposed to possibly losing everything it has inside Chad but that’s such an extraordinary number, I can’t imagine the assets they have there are worth that much,” said Jeffery Atik, who teaches international law at Loyola Law School in Los Angeles, as quoted by Bloomberg.

Exxon is currently deciding what to do next as it disagrees with the Chadian court’s ruling. The company declined to comment on the figure.

Exxon Mobil has been pumping oil in the African country since 2003, operating a pipeline that delivers Chadian oil to Cameroon for further export. The producer initially cooperated with Malaysian state-owned oil company Petronas and US-based multinational energy corporation Chevron. Chevron sold its stake in the project two year ago.

In 2006, Chad’s President Idriss Deby accused Chevron and Petronas of tax dodging, giving the companies 24 hours to leave the country. However, the case was settled with the firms denying the allegations.

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Coal price surge squeezes steelmakers' profits www.asia.nikkei.com

BANGKOK -- The coal used to make steel, known as metallurgical or coking coal, has flummoxed pundits by emerging as the best performing global commodity so far in 2016 after years in the doldrums, with benchmark spot prices surging by more than 250%.
 
The soaring price of metallurgical coal, steel's second biggest ingredient, is hitting the margins of steelmakers in Japan and South Korea. These manufacturers have already been hurt by an abundance of cheap Chinese steel and the rising price of iron ore, steel's main input.
 
Mining restrictions imposed this year in China have helped push up prices, but authorities moved to relax some of those on Sept. 30, to help staunch any further rises.
 
Metallurgical coal spot prices for premium coal in Australia began the year at $77.50 and soared to $213. 40 by Oct. 4, according to Platts' The Steel Index, reaching its highest point since 2013. The Hard Coking Coal Index has also risen by 230%.
 
The effects of surging metallurgical coal prices have immediately been felt by Chinese steelmakers, who typically buy coal at spot prices. But the Chinese production cuts and increased imports have forced up prices for the rest of the world.
 
Mills in Japan and South Korea still use a hedging system that fixes prices for three months. This brings them certainty, but given the surge in coal prices, the next three-month price could be set at nearly double the current $92.50 per metric ton for premium coking coal, analysts estimated.
 
Japanese steelmakers including Nippon Steel and Sumitomo Metal, already hit by increasing cheap exports from China, are warning that such a rise in coal prices would have an impact on their margins. Japanese mills are already suffering from a strong yen.
 
Japan is the world's biggest buyer of metallurgical coal, importing 54.1 million metric tons in 2015, according to Morgan Stanley.
 
Nippon Steel & Sumitomo Metal's group pretax profit will likely drop 10% for the year ending in March, the company said. In July, it reported that for the April-June quarter, sales slipped 2% to about 4.8 trillion yen ($46.22 billion) from a year ago. That figure had not factored in the full extent of the coal price surge.
 
The main driver of events -- as with so many commodities -- is China, the world's largest steelmaker, and its overdue efforts to control domestic coal production and its inability to curb steel production in any meaningful way.
 
China has enormous coal and iron ore resources of its own but its mining processes are generally less efficient -- and more polluting -- than those in its major producing rivals, such as Australia.
 
At the beginning of 2016, China's economic planning ministry, the National Development and Reform Commission, commenced its coal industry reform to remove overcapacity and cut pollution by closing mines and enforcing industry consolidation. It also said no new mines would be approved until 2019.
 
The measures have cut coal production by 14% to 809.3 million metric tons in the April-June quarter, according to the Australia and New Zealand Banking Group. Morgan Stanley analysts said that the price of coal exports rose 20-50% in that quarter.
 
In recent months, those restrictions on domestic production have combined with unseasonal flooding in the major coal-mining areas of Shanxi, Guizhou and Inner Mongolia, to push up prices.
 
This has led to an increase in China's coal imports, both for metallurgical coal and thermal coal used for power generation and heating. In August, China's metallurgical coal imports rose 45% to 6.5 million metric tons from July.
 
Add to this equation a reduction in available offshore supply as coal mines have closed over the last few years, in part due to weaker demand from China.
 
Still, state-imposed restrictions are a heavy-handed tool and on Sept. 23, the NDRC held a meeting of representatives from the coal, power and steel sectors to consider tweaks to its capacity controls to free up more coal domestically.
 
"We will study and analyze the latest outlook in coal production, transportation, demand, price and problems," the NDRC said.
 
The thermal coal sector -- far more sensitive domestically due to power and heating imperatives -- gained some immediate concessions.
 
A week later, on Sept. 30, the China Iron and Steel Association, representing the nation's biggest mills, was handed some relief when the NDRC agreed to loosen restrictions on production controls, which will affect almost 800 coal mines, analysts at Macquarie noted. This included 350-380 million metric tons of coking coal capacity and "was the first signal from the Chinese government that it wanted to cool the metallurgical coal market."
 
Macquarie added that this now complicated the latest contract negotiations, about to get underway in Australia, noting that industry reports suggested there was still a gap of about $50 per metric ton between the expectations of steelmakers and coal miners.
 
Steel mills, led by Nippon Steel, are prepared to pay $160 per metric ton while miners, represented by Anglo American, are seeking $212 per metric ton. The world's biggest miner, BHP Billiton settles its price on shorter contracts outside the negotiations.
 
Still, in every market, there are winners and losers. In this case, metallurgical coal-mining exporters are winning. Australian miners sell about 50% of the world's exports with about half that mined by an alliance between Australian miner BHP Billiton, and Japan's Mitsubishi Development. The latest Chinese figures show that in August, imports from Australian miners rose 8% from the previous month while shipments from Mongolian miners leapt by 36%.
 
The Australian Treasury had budgeted for an average price of $91 per metric ton for the commodity for the financial year ending June 30 next year. Given the price surge, analysts predict that the average will come in much higher. The big question is how long such high prices can last in the sector, although that answer now lies in China.
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The world's largest gold project, just got a whole lot bigger www.mining.com

During the final days of 2014 Canada's minister of the environment gave the green light to Seabridge Gold's KSM project in northern British Columbia, the world's largest undeveloped gold-copper project by reserves.

The federal and provincial environmental assessment process took nearly seven-years and KSM was only the second metal mine in five years to receive approval.

A new preliminary economic impact study released by Toronto-based Seabridge on Thursday, the already ambitious project takes another leap forward.

According to a statement, Seabridge now envisages a much larger operation than the one outlined in the preliminary feasibility study released last month and in the process improves both the environmental impact and economics of KSM.

The PEA calls for mill throughput of 170,000 tonnes per day, 40,000 tonnes more than the earlier study which Seabridge says can be done without significant redesign of facilities. Initial capital costs have been increased by just less than 10% to $5.5 billion.

In the PEA the bulk of the operations are moved underground and using the block-cave method Seabridge says it can reduce waste rock by a whopping 81% or 2.4 billion tonnes over the 51 year life of the mine.

By vastly increasing the amount of copper mined life of mine operating costs are now a negative $179 an ounce while all-in costs fall to just $358 an ounce.

Measured and Indicated Mineral Resources at KSM are estimated at 2.9 billion tonnes grading 0.54 grams per tonne gold, 0.21% copper and 2.7 grams per tonne silver which translates into 49.8 million ounces of gold, 13.6 billion pounds of copper and 253 million ounces of silver.

During the first seven years of operation annual gold output would top 1 million ounces and life of mine annual production is estimated at 592,000 ounces of gold, 286,000 pounds of copper and 2.8 million ounces of silver.

Seabridge (TSX:SEA) (NYSE:SA) is worth just over $530 million on the New York Stock Exchange, up 21% in value year to date.

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UN experts: Offshore assets could total $25 tril. www3.nhk.or.jp

United Nations human rights experts estimate individuals hold up to 25 trillion dollars of funds in tax havens.
 
The experts, including members of the UN Human Rights Council Advisory Committee, released the estimate in a statement on Thursday.
 
They said wealthy investors hide 7 to 25 trillion dollars offshore. As a result, they said countries lose hundreds of billions of dollars in tax revenues.
 
They said individuals and corporations are effectively stealing from public services such as health care, education and social security by hiding funds offshore.
 
They called on governments to work together and set up a UN body to eliminate tax havens.
 
Panama and other countries in Central America and the Caribbean attract wealthy individuals and companies by offering significantly lower tax rates.
 
Leaked financial documents known as the Panama Papers put the spotlight on the issue of tax avoidance.
 
The International Consortium of Investigative Journalists, or ICIJ, has called the Panama Papers database the largest of its kind ever released.
 
The documents were originally leaked to the German newspaper Sueddeutsche Zeitung.
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Sony Mobile releases smart ear plug www3.nhk.or.jp

Sony Mobile Communications has developed a wireless ear-piece for hands-free smartphone control.
 
The device allows a user to control his or her smartphone by talking to it or nodding, without looking at or touching the display.
 
Worn like an ear-plug, the device has a built-in microphone for verbal instructions using the wireless function. It can also read out messages received.
 
If you want to reply, you can let it know by talking to it or nodding. If you do not want to speak, you can just shake your head. It reacts to your head movements with its sensor.
 
You can also search geographical or other information without taking out your smartphone from your bag or pocket.
 
Sony Mobile officials say they will market it next month.
 
One of the officials Hirohito Kondo says smartphones are handy but users must keep on watching and touching the display all the time. He says he hopes the ear device will reduce the burden on users and allow them to engage more with the outside world by controlling the smartphone through their voice or head movements.
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Snapchat parent working on IPO valuing firm at $25 billion or more: WSJ www.reuters.com

Photo-sharing app Snapchat's parent is working on an initial public offering that could value the company at $25 billion or more, the Wall Street Journal reported, citing several people familiar with the matter.
 
Snap Inc, which operates the app that lets users send videos and messages that disappear in seconds, is looking to sell shares as early as late March, the Journal reported. (on.wsj.com/2cVicKG)
 
An IPO valued at $25 billion would be significantly higher than Snapchat's most recent valuation of $17.81 billion, based on a $1.81 billion financing round in May.
 
It would also represent the largest IPO by a technology company since Chinese e-commerce giant Alibaba Group Holding Ltd (BABA.N) went public in 2014.
 
Snapchat had been talking to investment bankers about an IPO towards the end of this year or early in 2017, technology website The Information reported last month. (bit.ly/2dPvEkh)
 
"We aren't commenting on rumors or speculation about any financing plans," the company said in an emailed statement on Thursday.
 
Reports on Snap Inc's IPO come at a time when shares of technology companies such as Square Inc (SQ.N) and Box Inc (BOX.N) that went public over the last two years are trading below their private market valuation.
 
Snapchat's valuation has grown in the last few years as the company added advertising and sponsored contents to its messaging service.
 
The company has told investors to expect $1 billion in advertising revenue in 2017, according to sources familiar with the matter.
 
Snapchat is expected to have 58.6 million users in the United States by the end of 2016 and that number is expected to jump 13.6 percent to 66.6 million by next year, according to research firm eMarketer.
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World Bank admits some have lost out from free trade www.bbc.com

The World Bank has admitted the growth of global free trade has not been a success for all.
An internal briefing document seen by the BBC says the effects of globalisation on advanced economies is "often uneven" and "may have led to rising wage inequality".
The bank, which provides loans to developing countries, also says that "adjustment costs", such as helping people who have lost their jobs, have been higher than expected.
Dr Jim Kim, the head of the World Bank, told the BBC that he understood why people were angry in advanced economies despite the fact that free trade was one of the "most powerful" drivers of growth and prosperity.
"I hear them and they are saying that my life is not better than my parents and my children's life does not look like it's going to be better than mine," he told me.
"So there is a real concern but the answer is to have more robust social security programmes, so you have a safety net. And then you need to get serious about getting the skills you need for the jobs of the future."
China effect
Dr Kim said that 20% of jobs lost in advanced economies could be linked to trade, with the rest down to automation and the need for new skills.
He said governments needed to do more to support those who had lost their jobs.
The document, written by World Bank economists, does say that "trade has played a powerful role in creating jobs and contributing to rising incomes in advanced economies", as well as in emerging economies.
But it highlights problems that have been created.
"Recent evidence for the US suggests that adjustment costs for those employed in sectors exposed to import competition from China are much higher than previously thought," the document says.
"While trade may have contributed to rising inequality in high income economies, so has technological change and the weakening of institutions that used to represent the interests of labour.
"Given overall efficiency gains, the dislocation effects of trade in advanced economies must be addressed through stronger safety nets and enhanced skills and flexible labour markets."
Target
Dr Kim said that if developed countries start throwing up trade barriers, ambitious targets to eradicate poverty by 2030 could be missed because global economic growth would be slower.
"It will be much, much harder to achieve [the poverty targets], there's no question," Dr Kim told me.
"We can build all the infrastructure we want and we can increase trade among the emerging market countries, [but] at the end of the day if global trade does not grow at a more robust rate it is going to be very hard to make those targets.
"If all the developed countries close their borders, it's going to be very difficult and it's going to be very difficult for those countries as well."
I asked him directly if the target could be missed.
"We very well could, absolutely, it's possible," he said.
More
Proposals to end extreme poverty - defined as anyone living on less than $1.25 a day - were put together by a United Nations committee chaired by David Cameron in 2013.
Dr Kim said that action by organisations like the World Bank, which provides loans to developing countries, as well as the growth of free trade had lifted millions of people out of poverty.
He said that international organisations had to do more to explain the advantages of global trade for advanced as well as emerging economies.
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Blue Origin successfully tests capsule safety, lands booster www.reuters.com

A rocket owned by Jeff Bezos' space company Blue Origin blasted off from Texas on Wednesday and then landed itself intact, even though engineers had expected it to crash after an important demonstration of how its unmanned crew capsule could fly away from the rocket in an emergency.
 
The test, which concluded with the rocket's landing and the capsule parachuting safely to the desert floor, was an important step forward for Kent, Washington-based Blue Origin by showing the passenger capsule can escape from the rocket should something go wrong during launch.
 
Saving the capsule was the only goal of the test and the survival of the Blue Shepherd rocket, which was making its fifth flight, was a bonus for Blue Origin. Engineers had expected searing exhaust from the capsule’s motor would tip over the rocket, causing it to shut down and crash in a massive fireball in the desert.
 
The New Shepard booster rocket lifted off at 11:37 a.m. EDT from Blue Origin’s West Texas launch site, a live webcast showed. About 45 seconds later, the capsule separated from the rocket while a solid-rocket motor at the base of the capsule ignited. The 1.8-second firing steered the capsule away from the booster to test an emergency escape system.
 
After the capsule separated, the booster continued up into space. Then it flew back, tail-first, toward Earth. As it neared the ground, the booster's rocket motor fired, its landing legs deployed and it touched down, 2 miles (3.2 km) from the launch site, as it has done on its four previous flights.
 
"That's one hell of a booster," Bezos, the billionaire founder of retail giant Amazon, said on Twitter.
 
Bezos has said by 2018 Blue Origin could start carrying paying passengers to more than 62 miles (100 km) above Earth, high enough to experience a few minutes of weightlessness and see the planet against the blackness of space.
 
Blue Origin has not yet set a price for its space trips but a competitor, Virgin Galactic, is selling tickets to fly on its six-passenger, two-pilot SpaceShipTwo for $250,000.
 
Blue Origin is working on a larger orbital rocket, called New Glenn, that will compete against Elon Musk’s SpaceX and other companies for commercial satellite launches and human space transportation services.
 
Bezos said he has invested more than $500 million in Blue Origin and that he would continue to finance it “for as long as necessary.”
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CHART: Coking coal surge could kill quarterly pricing mining.com

The stunning rise in the price of coking coal shows now signs of reversing, and the nearly three-fold rise in the price of the steelmaking raw material since hitting multi-year has pushed the quarterly benchmarking system to breaking point.
 
Metallurgical coal was exchanging hands at $213.40 on Tuesday according to data provided by Steel Index as it consolidates at higher levels following weeks of panic buying not seen since 2011, when floods in key export region in Queensland saw the price touching to $335 a tonne.
 
A new research note Adrian Lunt, head of commodities research at the Singapore Exchange, says the traditional quarterly benchmark mechanism has "arguably been losing relevance for some time, but the recent spot market volatility has put it under potentially fatal strains":
The commoditisation and rising adoption of indexation has been a key feature in the seaborne coking coal market in recent years. In recent years the quarterly settlement has largely followed the spot market, and a prolonged period of price stability perhaps enabled the quarterly benchmark to persist (albeit pricing an ever-shrinking portion of the international market).
 
During Q3, the daily spot price averaged almost $133 per tonne, approximately 44% higher than the Q3 quarterly benchmark agreed in late June. With spot and benchmark pricing deviating more than ever, strains are likely to persist on the outdated quarterly pricing mechanism. Continued market volatility could spur a more widespread transition to index-linked pricing over the coming months, which may in turn serve as an important catalyst in the development of the international coking coal derivative market.
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