1 US-MONGOLIA 'THIRD NEIGHBOR TRADE ACT' ON THE WAY WWW.THEDIPLOMAT.COM PUBLISHED:2018/11/17      2 CHINA'S FIGHT AGAINST SMOG MAKES PALLADIUM 2018'S BEST METAL WWW.MINING.COM PUBLISHED:2018/11/17      3 MILLENNIUM CHALLENGE CORPORATION PRESENTS GMS LICENSES WWW.MONTSAME.MN PUBLISHED:2018/11/17      4 MONGOLIA CALLS FOR GLOBAL ATTENTION ON CLIMATE CHANGE WWW.NEWS.MN PUBLISHED:2018/11/17      5 ADB OPENS A NEW WASTEWATER TREATMENT PLANT IN ARVAIKHEER, MONGOLIA WWW.AGENPARL.EU PUBLISHED:2018/11/17      6 CHINA TO BOOST COOPERATION WITH INDIA, MONGOLIA: DEFENSE MINISTER WWW.GLOBALTIMES.CN PUBLISHED:2018/11/17      7 DEATH ON MONGOLIA’S ‘COAL ROAD’ WWW.NEWS.MN PUBLISHED:2018/11/17      8 MONGOLIA SHAKEN BY WIDENING LOAN SCANDAL WWW.ASIA.NIKKEI.COM PUBLISHED:2018/11/17      9 MONGOLIA’S UNEMPLOYMENT FALLS BY 2.2 PERCENT WWW.NEWS.MN PUBLISHED:2018/11/16      10 MEETING MEAT DEMAND: MONGOLIA TO TRADE 17.9 PERCENT OF LIVESTOCK WWW.NEWS.MN PUBLISHED:2018/11/16      БНСУ-ЫН АЖ АХУЙН НЭГЖҮҮДИЙН АУТСОРСИНГ ЗАХИАЛГЫГ ГҮЙЦЭТГЭХ ЗАЛУУЧУУДЫГ СОНГОН, ШАЛГАРУУЛНА WWW.UNUUDUR.MN НИЙТЭЛСЭН:2018/11/17     НҮҮРСНИЙ ЭКСПОРТ 10 ХУВИАР ӨСӨЖ, 31.3 САЯ ТОНН БОЛОВ WWW.GOGO.MN НИЙТЭЛСЭН:2018/11/17     СУДАЛГААГААР ЖДҮ ЭРХЛЭГЧИД ЗЭЭЛИЙН ХҮҮНИЙ ЗАРДАЛ ХАМГИЙН ИХ ХҮНДРЭЛ УЧРУУЛДАГ ГЭЖ ХАРИУЛЖЭЭ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/11/17     ERDENE RESOURCE DEVELOPMENT: ХАЙГУУЛЫН ЗАРДАЛ III УЛИРАЛД 42 ХУВИАР БУУРСАН WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/11/17     ГОРХИ, ТЭРЭЛЖИЙН БАЙГАЛИЙН БОХИРДОЛД АНХААРАЛ ХАНДУУЛЖ ЭХЛЭВ WWW.MONTSAME.MN НИЙТЭЛСЭН:2018/11/17     ИРЭХ БААСАН ГАРАГТ ХОТЫН ДАРГЫГ ОГЦРУУЛАХ ЭСЭХИЙГ ХЭЛЭЛЦЭНЭ WWW.MONTSAME.MN НИЙТЭЛСЭН:2018/11/17     “АМГАЛАН” ХОТХОНД БАЙРЛАХ ГЭРТЭЭ КАННАБИС ТАРЬЖ, УРГУУЛЖ БАЙСАН ТУРК ИРГЭНИЙГ БАРИВЧИЛЖЭЭ WWW.MEDEE.MN НИЙТЭЛСЭН:2018/11/17     ӨНӨӨДӨР АВТОМАШИНЫ ДУГААРЫН ХЯЗГААРЛАЛТ ҮЙЛЧЛЭХГҮЙ WWW.EAGLE.MN НИЙТЭЛСЭН:2018/11/17     ГАШУУНСУХАЙТЫН НҮҮРСТЭЙ МАШИНЫ ЦУВАА 120 КМ БОЛЖЭЭ WWW.EAGLE.MN НИЙТЭЛСЭН:2018/11/16     ТАТВАРЫН ОРЛОГО 32.2 ХУВИАР ӨСӨЖ, ТӨСВИЙН ТЭНЦЭЛ 341.9 ТЭРБУМ ТӨГРӨГИЙН АШИГТАЙ ГАРЛАА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/11/16    

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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'Community commerce' takes root www.chinadaily.com.cn

 
Transaction value has become secondary for video bloggers and news feeds as "community commerce" took center stage during this year's annual shopping extravaganza on the Taobao platform.
Alibaba Group Holding Ltd regards mom-and-pop merchants as the best fit to foster personal ties among online buyers, pushing the e-commerce giant toward its long-held yet unmet goal for social media and entertainment.
 
In the lead-up to and during the Dec 12 sales gala, more than 5,000 live streams were broadcast daily on Taobao, attracting more than 10 million viewers on topics from fashion trends to cooking tips, according to company data.
 
Around 40 percent of the viewers end up visiting the online shops being promoted.
 
These are all part of Alibaba's drive to build a consolidated online ecosystem encapsulating e-commerce, mobile media and digital entertainment, said CEO Daniel Zhang.
 
"Through user-generated content, we want people to see Taobao more as the latest reflection of the mainstream lifestyle of the younger generation," he said.
 
Other efforts include a Q&A column Wen Dajia (ask others), a Quora-like feature where questions are raised, answered and edited by the community of Taobao users. On Dec 12, more than 5 million users asked questions and some 10 million gave their feedback.
 
Based on their shopping habits, the site encourages users to provide suggestions to peers on certain merchandise. It then filters and redirects users into groups with tags such as workout, pregnancy and cosmetics.
 
Chen Lei, a Taobao director who oversees live streaming for the site, said Taobao is geared toward professionally generated content.
 
"In the future, Taobao will continue to lead merchants, highly engaged users and live broadcast professionals to create a consumption-oriented live broadcasting platform," he said.
 
By blending e-commerce and social media, Alibaba has tried to shed the image of being a giant only in e-commerce, said Li Chao from iResearch Consulting Group.
 
While occupying only a small portion of the pie, Taobao, which resonated well among Chinese youngsters, helped Alibaba more than double its mobile revenue in the second quarter of 2016.
 
"The level of engagement Alibaba is able to create is beyond what we consider with search companies and social media companies. They're investing a lot in making their tools have social engagement like Facebook," Gil Luria, an analyst at Wedbush Securities Inc said in a research note.
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Road to global economic stability runs through China www.asia.nikkei.com

 
BEIJING -- The 15th anniversary of China's accession to the World Trade Organization, which fell on Sunday, came amid heightened trade friction and a raging debate over the very nature of the Chinese economy. Finding ways to cooperate with China, however, will be crucial for stabilizing the global economy.
 
On Dec. 2, the U.S. blocked China's Fujian Grand Chip Investment Fund from buying German chip equipment supplier Aixtron for security reasons. Predictably, this angered Beijing.
 
"China resolutely opposes the politicization of any normal commercial takeover or the wrong move of political obstruction," a Chinese Foreign Ministry spokesman said.
 
But Western countries have misgivings about the recent surge in buyouts by Chinese companies. The value of such acquisitions totaled $67.4 billion in the January-September period, surpassing the amount for all of last year, according to data from China's Ministry of Commerce.
 
Meanwhile, many market watchers note that international companies face restrictions on doing business in China. Foreign automakers, for instance, are required to set up a joint venture with a local manufacturer in return for market access.
 
China insists it has shifted to a market economy, but Japan, the U.S. and Europe have resisted giving the country that status within the WTO. Recognition would influence the calculation of anti-dumping duties.
 
Still, there is no denying that China's fast growth helped to prop up a world economy reeling from the 2008 financial crisis. Chinese companies took the opportunity to venture into the global market. And in a way, the trade tensions are a testament to the closer relationship the U.S. and China now share.
 
U.S. President-elect Donald Trump is urging companies like Apple to bring manufacturing jobs back to the U.S. Trump's economic policy is drawing keen attention in China, where plants churning out Apple products have created more than 1 million jobs.
 
An executive of Taiwan's Hon Hai Precision Industry, or Foxconn, which produces Apple devices in China, said the American company should never forget that it staged a comeback by divvying up responsibilities between the U.S. and China.
 
Both countries, the executive stressed, have benefited.
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Manufacturers' mood improves www3.nhk.or.jp

 
The Bank of Japan released its latest survey on business sentiment on Wednesday. The Tankan survey shows that the sentiment among Japanese large manufacturers has improved for the first time in 6 quarters.
 
The Bank of Japan conducts a survey of more than 10,000 firms across the country every 3 months, asking them what they think about business conditions.
 
In the latest survey, which covers this current quarter, the bank says sentiment among large manufacturers stood at plus 10. That's up 4 points from the previous survey. The sentiment for major non-manufacturers was unchanged at plus 18 points.
 
BOJ economists say the optimistic sentiment apparently stems from the solid economic growth in the US.
 
But the officials say they see a less rosy outlook for the coming quarter. They expect the index for large manufacturers to drop 2 points to plus 8. Non-manufacturers say their sentiment will worsen by 2 points, to plus 16.
 
The Tankan's index represents the difference in the percentage of companies that say business is good and those who say it's bad. A positive reading means more companies are optimistic.
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Russian trade with Iran up 80 percent www.rt.com

 
Year on year trade between Russia and Iran has risen significantly, up by 80 percent according to Russian Energy Minister Aleksandr Novak.
 
Novak is the co-chair of the Intergovernmental Russian-Iranian Commission on trade and economic cooperation and is in Tehran with a delegation of over 200 Russian officials.
 
He met Iranian Minister of Communication Mahmoud Vaezi to talk about the possibility of Tehran signing a free trade agreement with the Russia-led Eurasian Economic Union next year.
 
The sides signed agreements to construct a heat and power plant, and railway electrification worth €2.2 billion.
 
Last year, the two countries agreed to develop economic ties, with Moscow promising to provide a $5 billion state loan to Tehran to promote industrial cooperation. The money is expected to spur trade from the current $2 billion to a target of $10 billion.
 
According to Novak, the money flowing between Russia and Iran tripled in 2016. "The return to normal bank payments is going to become a powerful trigger. This year the amount of financial payments has tripled," he said.
 
Vaezi said he expects energy agreements will be signed worth $10 billion which will also improve Russia-Iran trade.
 
"Judging by the agreements we have signed with Russian companies over the past several months, we offered the biggest number of fields for development to Russian companies compared with other countries,” said Iranian Deputy Oil Minister for International Affairs and Trading Amir-Hossein Zamaninia.
 
Russian oil producer Gazprom Neft has signed a memorandum of understanding with the National Iranian Oil Company to develop two oil fields in Iran, Novak said.
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Government's Lloyds share sale takes stake to below 7% www.theguardian.com

 
The British government has cut its stake in Lloyds Banking Group to below 7%, raising the amount recovered to more than £17.5bn of the £20.3bn of taxpayers’ money used to bail out the bank during the financial crisis.
 
The sale of a further 1% of Lloyds shares on Tuesday reduced the government’s stake to 6.93%, from a peak of 43%.
 
Simon Kirby, the economic secretary to the Treasury, said: “Selling our shares in Lloyds Banking Group and making sure that we get back all the cash taxpayers injected into it during the financial crisis is a key government priority. So I am pleased that we have continued to reduce our stake in Lloyds.”
 
The chancellor, Philip Hammond, announced in October that he was abandoning his predecessor’s plans to sell the remainder of the Lloyds stake to members of the public at a discounted rate.
 
Since then, the Treasury has been selling its remaining shares on the stock market, reducing its stake in stages from 9.2% to 6.9%. The aim is to have sold all its shares within a year, with the proceeds being used to reduce national debt.
 
The current sales are taking place at a price lower than the 73.6p average price paid for the stake during the crisis, but Hammond has said he expects to recoup the full amount injected into the bank. Lloyds shares are trading at just above 61p.
 
A spokesperson for Lloyds said: “Today’s announcement shows the further progress made in returning Lloyds Banking Group to full private ownership and enabling the taxpayer to get their money back.
 
“This reflects the hard work undertaken over the last five years to transform the group into a simple, low-risk and customer-focused bank that is committed to helping Britain prosper.”
 
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While the government is selling off its stake in Lloyds, it retains a 73% stake in Royal Bank of Scotland which it also bailed out during the financial crisis.
 
Hammond said in October that the time was not right to sell its stake in the Edinburgh-based bank, in which a 5% stake was sold in August 2015 at a £1bn loss.
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Italian banking crisis: UniCredit to raise €13bn www.theguardian.com

 
Italy’s largest bank, UniCredit, plans to shed thousands of jobs and raise €13bn in the country’s biggest share issue in a bid to shore up its reserves and boost profits by the end of the decade.
 
The bank said 14,000 posts, or 11% of the workforce, would disappear across its businesses in Europe and 1,000 bank branches in Italy would close. About €18bn of bad loans are to be offloaded to two new businesses mainly owned by US fund managers.
 
The bank’s shares rose 13% as investors welcomed the “decisive” move by UniCredit to distance itself from Italy’s ailing banking sector, which is hobbled by a legacy of non-performing loans.
 
UniCredit chief executive, Jean Pierre Mustier, in London on Tuesday to talk to shareholders, said the move would allow the bank to offer €55bn of fresh loans to business customers and expand retail lending.
 
Against a backdrop of negative interest rates in the eurozone, which the bank said made it difficult to generate profits, Mustier said without a large injection of fresh capital and a lower ratio of bad loans the bank would be forced to contract further, making bigger job cuts and reducing its capacity to make loans.
 
“We need to turn a page on our legacy issues to improve and support recurring future profitability. The aim is to be one of Europe’s most attractive banks,” he said.
 
UniCredit’s move comes at a troubled time for Italian banks and the economy, with the third-largest bank, Monte dei Paschi di Siena (MPS), negotiating a rescue package, a new government installed in Rome and early elections expected next year.
 
Mustier said he was confident MPS would reach a deal to offload more than €5bn of loans by the end of the year.
 
He ruled out joining a rescue of MPS or any other Italian bank unless the government forced it to take part in a broader rescue of the banking sector.
 
“We are extremely confident the refinancing will be resolved by the end of the year. Our plan does not depend on a deal for MPS,” he said.
 
“What we are doing shows what other Italian banks can do,” he added, before saying, “We are not interested in buying other Italian banks. Our plan is for organic growth.”
 
If MPS fails to secure the funds, the bank will probably require a government rescue, which could be launched on Friday or next Monday and could mean at least temporary losses for thousands of retail investors. Under EU rules, state intervention can only move forward once junior bondholders have taken a hit, although some retail investors would likely be compensated later.
 
Paolo Gentiloni, Italy’s incoming prime minister, vowed in a speech before parliament that the Italian government was ready to intervene across the Italian banking sector “to ensure the stability of [Italy’s] banking institutions”.
 
UniCredit has already moved 300 staff from London to Milan following Britain’s vote to leave the European Union. Mustier said the Brexit vote was “a huge opportunity” for continental banks, which are untroubled by the prospect of Europe’s financial centre leaving the EU.
 
Benjie Creelan-Sandford, equity analyst at brokers Jefferies, said: “The upfront bill of €13bn is clearly large but as we have highlighted previously we think an aggressive balance sheet clean-up paves the way for a more substantial re-rating.
 
He said the forecast by the bank’s board of €4.7bn net profits in 2019 was well ahead of consensus expectations of €3.9bn.
 
But David Cheetham, an analyst at brokers XTB, was concerned a rescue by the Italian government remained a possibility if UniCredit struggled to raise vital funds.
 
“The Italian lender has endured a torrid time of late and the latest action appears a last-ditch attempt to stave off a government rescue, with the strategy likely to be ultimately decided by how successful the firm raises the target of €13bn,” he said.
 
A group of investment banks have signed a pre-underwriting agreement to help UniCredit market the issue. These include Morgan Stanley, UBS, Bank of America Merrill Lynch, JP Morgan and Mediobanca.
 
The bad loans would be sold to two separate vehicles, one managed by Fortress Investment Group and the other by Pimco, with UniCredit retaining minority stakes in each.
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Asahi in $7.8bn deal for AB InBev Eastern Europe arm www.asia.nikkei.com

TOKYO -- Asahi Group Holdings on Tuesday reached a broad agreement to acquire Anheuser-Busch InBev's operations in five Eastern European countries for about 900 billion yen ($7.81 billion).

 
This stands to be the biggest acquisition of overseas brewing operations by a Japanese company. Asahi is expected to announce the deal later in the afternoon.
 
Asahi is set to acquire assets in Czech Republic, Poland, Hungary, Slovakia and Romania hitherto run by SABMiller, which was acquired by AB InBev -- the world's largest brewer. Pilsner Urquell, a well-known Czech brand, is also part of the arrangement.
 
Western funds and Chinese brewers placed bids, too, but it appears Asahi offered more.
 
The Japanese company sees Europe as a jumping-off point to make further inroads in the global market. In October, it completed an acquisition of other European SABMiller operations for 300 billion yen.
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Japan opens door to foreign farmers www3.nhk.or.jp

Japan has decided to allow skilled foreign nationals to work on farms in special economic zones. This is aimed at tackling a serious labor shortage in the agriculture industry.

Government officials say people with a certain level of Japanese proficiency and specialized farming knowledge will be eligible.

They will be permitted to take up farming jobs in designated "National Strategic Special Zones" for agriculture where regulations are eased.

Separately, officials decided on a plan to address an acute shortage of day care centers.

They will allow small-scale facilities in special strategic zones to accept children up to the age of 5. Current regulations limit admission to children up to the age of 2.

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Mongolian, Chinese and Russian officials sign transportation agreement www.mongolia.gogo.mn

 
The Minister of Road and Transportation Development of Mongolia, Mr.Ganbat D., is attending a conference for the Ministers of Transportation of the countries belonging to the Asia Pacific Economy and Society Commission.
The conference in Moscow started on 5 December and ends today.
During the conference, officials from Mongolia, the Russian Federation and the People’s Republic of China signed an agreement to put in place a transportation system between Mongolia, Russia and China.
Chinese officials had declined to sign the agreement after His Holiness the 14th Dalai Lama visit.However, China eventually agreed and the Vice-Minister of Transport for China, Liu Syaomini signed the agreement at the meeting.
The result of the agreement will enhance regional trade flows. Under the programme, the 3 countries will implement large-scale rail and road infrastructure projects to create a regional transportation economic corridor.
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D.Amarbayasgalan appointed MPP Secretary General www.en.montsame.mn

 
Ulaanbaatar /MONTSAME/ The Seventh Conference of the Mongolian People’s Party completed on December 12. The MPP Chairman and Speaker of Mongolian Parliament, Mr M.Enkhbold in his opening address stated that the party will establish agreements on accountability with each officials who were appointed from the MPP to political offices.
 
On Monday, the MPP appointed 33 conference members, the Secretary General and secretaries. The administrative board nominated D.Amarbayasgalan to the office of Secretary General of MPP, whose candidacy was backed with majority approval. Ts.Bat-Enkh was appointed the vacant Secretary.
 
The leaders of MPP concluded that this year’s conference has been special for it is being organized in these times of economic tensions Mongolia is confronted with and in post-elections period.
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