1 MONGOLIA-CHINA AGREE TO COLLABORATE IN INCREASING MEAT EXPORT WWW.MONTSAME.MN PUBLISHED:2018/09/21      2 U.S. AND MONGOLIA SEEK TO STRENGTHEN ECONOMIC RELATIONSHIP WWW.STRTRADE.COM PUBLISHED:2018/09/21      3 MONGOLIA, U.S. LEADERS DISCUSS BILATERAL TIES WWW.XINHUANET.COM PUBLISHED:2018/09/21      4 BELT AND ROAD SIGNIFICANT TO MONGOLIA, PEOPLE AROUND WORLD -- ACADEMIC WWW.ENG.YIDAIYILU.GOV.CN PUBLISHED:2018/09/21      5 PETRO MATAD UPDATES MONGOLIA EXPLORATION WWW.OGJ.COM PUBLISHED:2018/09/21      6 RIO TINTO’S EXIT FROM COAL PAYS OFF, TO RETURN $3.2B FROM SALES PROCEEDS TO SHAREHOLDERS WWW.MINING.COM PUBLISHED:2018/09/21      7 OPENING CEREMONY OF SAINSHAND SALKHIN PARK HELD WWW.MONTSAME.MN PUBLISHED:2018/09/21      8 ALIBABA’S MA SAYS TRUMP’S TRADE WAR ‘DESTROYED’ HIS PROMISE TO CREATE JOBS FOR 1MN AMERICANS WWW.RT.COM  PUBLISHED:2018/09/21      9 LEGAL DISPUTE OVER EMC OWNERSHIP COMES TO AN END WWW.ZGM.MN PUBLISHED:2018/09/20      10 ERDENES TAVAN TOLGOI REVENUE SURGES DUE TO HIGHER COAL PRICES WWW.NEWS.MN PUBLISHED:2018/09/20      НУРАХ ДӨХСӨН БАЙРУУДЫГ ШИНЭЧЛЭХ КОМПАНИ ОЛДОХГҮЙ БАЙНА WWW.ZGM.MN НИЙТЭЛСЭН:2018/09/21     МОНГОЛ УЛС ВАШИНГТОН, ПЁНЬЯНЫ ХЭЛЭЛЦЭЭРТ ЗУУЧЛАХАД БЭЛЭН ГЭДГЭЭ ЗАРЛАЛАА WWW.EAGLE.MN НИЙТЭЛСЭН:2018/09/21     УЛСЫН ХЭМЖЭЭНД 85.3 МЯНГАН ТОНН ТӨМС ХУРААН АВААД БАЙНА WWW.MONTSAME.MN НИЙТЭЛСЭН:2018/09/21     ЗГ: БУЦАЛТГҮЙ ТУСЛАМЖИЙГ УСНЫ НӨӨЦИЙГ САЙЖРУУЛАХ, ХЭРЭГЛЭСЭН УСЫГ БУЦААН АШИГЛАХАД ЗАРЦУУЛНА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/09/21     ҮСХ: УЛААНБААТАРТ АЖИЛЛАГЧДЫН САРЫН ДУНДАЖ ЦАЛИН УЛСЫН ДУНДЖААС 121.7 МЯНГАН ТӨГРӨГӨӨР ИХ БАЙНА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/09/21     МОНГОЛ УЛСЫН ИХ ХУРАЛ, ЕВРОПЫН ПАРЛАМЕНТ ХООРОНДЫН XII УУЛЗАЛТААР ХАМТАРСАН МЭДЭГДЭЛ ГАРГАЛАА WWW.DNN.MN НИЙТЭЛСЭН:2018/09/21     ТӨРИЙН АЛБАНЫ УДИРДАХ АЖИЛТНЫ УЛСЫН ЗӨВЛӨГӨӨН БОЛЖ БАЙНА WWW.UNUUDUR.MN НИЙТЭЛСЭН:2018/09/21     2019 ОНЫГ МОНГОЛ, АМЕРИКИЙН ЗАЛУУЧУУДЫН ЖИЛ БОЛГОНО WWW.EAGLE.MN НИЙТЭЛСЭН:2018/09/21     УУРХАЙЧДЫН АЖЛЫН БАЙР НЭМЭГДЭЖ, ЦАЛИН ӨСЧ БАЙНА WWW.GOGO.MN НИЙТЭЛСЭН:2018/09/20     “ЭРДЭНЭТ”-ИЙН 49 ХУВИЙН ӨМЧЛӨЛ ТОЙРСОН ХУУЛЬ ЗҮЙН МАРГААН ЭЦЭС БОЛЛОО WWW.ZGM.MN НИЙТЭЛСЭН:2018/09/20    

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

64x64

Chinese coking coal futures hit the roof www.mining.com

Coking coal prices climbed Monday 10%, the maximum daily amount allowed based on market rules, just when some analysts were predicting the end of the rally.

The fresh gains came amid tight supply and renewed appetite for risky assets, leading a broad rally in Chinese commodities.

The most-traded coking coal for January delivery on the Dalian Commodity Exchange soared 10%, the maximum daily amount allowed based on market rules.
Metallurgical coal prices were also boosted by news in the Western world, particularly the fact that the FBI cleared Hillary Clinton for using a private email server, giving her a last-minute boost ahead of the Nov. 8 election.

Coke, made from coking coal and used to make steel, also rose by its 7% limit to 2,001.50 yuan per tonne, its highest price since March 2013, data from The Metal Bulletin shows (subs. required).

The unexpected, yet welcome price rally has pushed miners to reopen mines and revive projects that were placed in the backburner in the past two years. In Australia alone, there are at least seven mines slated to resume operations before 2016 ends — four in Queensland and three in New South Wales.

...


64x64

China-Russia trade to grow to $200bn – PM Medvedev www.rt.com

Economic cooperation between Russia and China is meeting expectations with more than $40 billion in trade this year, said Russian Prime Minister Dmitry Medvedev during a meeting with Chinese Premier Li Keqiang in St. Petersburg.
 
Moscow and Beijing will make additional efforts to increase trade to $200 billion in next 3-7 years, according to the Russian PM.
 
Medvedev says a preferential trade regime between the countries is being considered, which would increase the use of national currencies in settlements.
 
Li Keqiang is paying an official visit to Russia to discuss trade and investment ties, as well as cooperation in oil, gas and nuclear power.
 
Russia and China signed cooperation agreements in several areas such as economy and investments as well as cooperation in the nuclear industry.
 
A joint Russia-China Venture Fund will be established to develop trade, economic investment and scientific cooperation between the countries. The enterprise will reportedly sign the first project agreements as early as next year.
 
There will also be an intergovernmental commission on cooperation between Russia's Far East and China's North East, according to Medvedev.
 
“It was decided to set up a fifth intergovernmental commission, which will deal with the cooperation on the Far East of our country and in the north east of China, which shows the real scope of interaction,” the Russian PM said.
 
At the meeting Russia's gas major Gazprom and the China Development Bank (CDB) signed an agreement on possible financing.
 
Vnesheconombank (VEB) signed an agreement with China’s Development Bank to borrow nearly a billion dollars (six billion yuan) for 15 years. Russian state-run bank VTB also sealed several deals with the Chinese lender on trade financing in yuans for three and five years.
 
Russia’s oil giant Rosneft and China's Beijing Gas Group signed a cooperation agreement to sell a 20 percent stake in Verkhnechonskneftegaz, which is exploring a large oil and gas field in Eastern Siberia. Rosneft controls 99.94 percent of the company.
 
A framework agreement was reached between Russian petrochemical leader Sibur, China’s Silk Road Fund and China Development Bank. The deal includes the sale of share in the Russian company.
...


64x64

An Asian investor's haven for U.S. elections: yen and a basket of arms www.reuters.com

No matter who wins the race for the White House, markets are betting on one truly safe investment, and that is the currency of a country with bleak economic prospects - Japan.

Markets had long been pricing in a victory for Democrat Hillary Clinton, but opinion polls over the past week have shown the race narrowing with the outcome now hinging on several battleground states in the Nov. 8 election.

That has meant investors have had to do some repositioning lately, betting or hedging on one of the candidates or just piling into traditional safe havens such as gold and U.S. Treasuries.

On Monday, however, stocks rose and the dollar rallied after the FBI said it stood by its earlier recommendation that no criminal charges were warranted against Clinton.

At least for the short term, it is ironically the Japanese yen -- the currency of an economy mired in deflation, slow growth, deeply negative interest rates and a falling stock market -- that fund managers think is the safest bet in Asia.

"If Trump wins, you'll get risk-off sentiment and you'll see the dollar losing against the Swiss franc, yen and euro," said Mary Nicola, investment strategist at Aviva Investors Asia. They have $448 million of assets in the region.

"If you get a Clinton win, you will get a relief rally in markets so you could potentially see dollar weakness."

But the run-up to the election has seen a flight to safety.

The price of gold is up 3 percent in a month, while shares of gold mining firms have risen. Shares in Australia's Newcrest Mining have risen 13 percent in a month, with fund managers betting on a further rise should Trump win or if neither candidate emerges a clear winner.

A Clinton victory represents continuity in foreign and trade policies. It also implies greater regulation for the financial and pharmaceutical sectors in line with commitments from the Democratic Party platform.

Should Clinton win, emerging market assets should rally, cheering an end to a long spell of uncertainty and the unwinding of trades betting on a Trump presidency, market analysts say.

"If Clinton wins, emerging markets will see a lot more of a green light for capital flows at least for a short period of time," said Jeremy Lawson, chief economist for Standard Life Investments. "Thereafter, it depends on what the actual policies are."

CURRENCY MANIPULATOR

But with the odds rising last week of Trump winning the presidency, a lot more market preparations lately have been around the risks that he wins.

Some investors have held short positions in South Korea's won, China's yuan and the Malaysian ringgit -- currencies vulnerable to shifts in risk appetite or potentially global trade frictions if Trump wins.

"Our global base case for a Trump presidency would, therefore, be a stronger U.S. dollar, weaker equities, weaker commodities, and an unclear direction of U.S. Treasuries," Citi analysts said in a note last week, adding that would invariably weaken emerging market currencies.

Trump has vowed to impose tariffs of up to 45 percent on Chinese imports and label China, the biggest foreign holder of U.S. Treasuries, a currency manipulator on his first day in office.

"The concern is that the U.S. does something that harms trade with China, and the Chinese will retaliate and it becomes a trade war," said Daniel Morris, senior investment strategist at BNP Paribas Investment Partners, based in London. That could spur sell-offs in smaller trading economies such as Singapore and Taiwan, he said.

"Regardless of who wins, we're not expecting any new trade agreements. In the worst-case scenario, we lose some. That’s generally bad for Asia," Morris said.

Exports make up a quarter of Asia's GDP and a fifth of it goes to the United States.

"Any currencies that are highly linked into the trade cycle will probably react badly in a Trump victory," said Mark Wills, managing director and head of investment solutions group, State Street Global Advisors, in Sydney. "The Australian dollar, for example, and the renminbi."

Citi analysts recommend buying the yen but shorting the Korean won as a hedge against a Trump victory. Viraj Patel, currency strategist at ING in London, expects the won will head to 1220 per dollar, a 6.5 percent decline from current levels, should Trump emerge victorious.

One 'Clinton' trade of late has been to buy north Asian renewable energy stocks, such as Taiwan's biggest solar cell maker Motech Industries.

"A Hillary win means Obama's renewable energy policy will likely be extended," said Susan Chu, a spokeswoman for Motech. "That would be a big plus for our industry, especially if Hillary should sweep the houses (Congress)." Motech gets 30 percent of its revenues indirectly from the United States.

Car exporters in Mexico, on the other hand, could be hit by a Trump win, said Hisashi Iwama, fund manager at Asset Management One in Tokyo. Japanese firms with production facilities in Mexico include Mazda Motor, Nissan Motor and Calsonic Kansei.

However, a Trump presidency could be good news for defence companies in Asia, given his desire to reposition America's military alliances, according to Nomura analysts.

"Rising risks of confrontation in the region reinforce our view that regional military tensions and defence budgets will keep rising," Nomura said in a research note. Their picks include Australian firm Austal, China Shipbuilding, AVIC Aircraft, AviChina, Bharat Electronics and Mitsubishi Heavy Industries.

Asia's corporates have the least amount of dollar-denominated debt among the three emerging market regions, rendering them less vulnerable to a rising dollar.

Still, analysts at Societe Generale reckon MSCI Asia's outperformance this year -- up 22 percent since January versus 12 percent for global equities MIWD00000PUS> -- should end.

While a Clinton win would broadly lift all Asian equity markets, Societe Generale recommends buying stocks in China and Southeast Asia initially if Trump wins, since these markets are less correlated to global market sentiment. It would sell companies exporting to the United States, particularly those in Taiwan and South Korea because of their additional links to the global smartphone supply chain.

Societe Generale's list of stocks to sell if Trump wins includes technology firms TSMC Technology, Advanced Semiconductor, Infosys, Tata Consultancy Services, Hong Kong's Li & Fung and Japan's Fuji Heavy Industries, all of which have upwards of 60 percent of their sales going to the United States.

(Additional reporting by Faith Hung in TAIPEI, Christine Kim in SEOUL, Hideyuki Sano in TOKYO.; Editing by Bill Tarrant.)

 
 
...


64x64

Chinese steel firm plans to expand investment in Sierra Leone www.chinadaily.com.cn

FREETOWN - The Shandong Iron and Steel Group plans to expand its investment in Sierra Leone with $700 million for the construction of processing plants.
 
Hou Jun, chairman of the Chinese steel firm, made the announcement during a courtesy call on Sierra Leone President Ernest Bai Koroma on Friday.
 
Hou assured the president that the company's goal in Sierra Leone is to work "closely with the government to scale up China-Sierra Leone economic cooperation."
 
The company has committed $700 million for the construction of processing plants so as to further expand its business in Sierra Leone, said Hou.
 
President Koroma encouraged the Shandong Iron and Steel Group to scale up its activities through the injection of investment into its operations and promised continuous support from his government.
 
"We will continue to support the project because we believe it's a win-win situation for both the company and Sierra Leone," the president told Hou.
...


64x64

Baidu bets it's got upper hand in self-driving race www.chinadaily.com.cn

Baidu Inc expects to have the edge in autonomous driving after years of running China's biggest search engine, arming it with expertise in machine learning and mapping.
 
The internet giant is sticking to a plan to have self-driving cars ply China's roads by 2018, then mass production by 2020. The company will focus on its home market despite road conditions there being much more complex than in developed countries, Chief Financial Officer Jennifer Li told the Bloomberg Markets Most Influential Summit in Hong Kong.
 
Baidu is banking on artificial intelligence and automobiles to provide much-needed engines for growth as its search business decelerates. This year, it's expected to post its slowest pace of revenue growth since going public, as Tencent Holdings Ltd and Alibaba Group Holding Ltd draw advertisers away. Baidu however hasn't outlined a business plan for AI.
 
"AI, it's a technology. And technology itself, until you put it into real applications, into real businesses where it can really transform industries, it's not really of real business value," Li said during an onstage interview. But she predicted "many new business opportunities are going to come out of these core competencies."
 
Like Google Inc, Baidu believes it has advantages in AI that can be used to develop driverless technology, such as internet services that adapt to each user and computers that think and respond like humans. The Chinese company has won approval to test its self-driving technology in California, becoming the 15th company to get permission. And it's also partnered with chipmaker Nvidia Corp to develop the necessary technology.
 
Delving into new areas will be key as its advertising machine peters out. Research firm eMarketer predicted Baidu would fall behind Alibaba in terms of ad revenue this year, thanks in part to a series of well-publicized scandals and increased government regulations.
 
In July, the company warned investors that restrictions on internet advertising would hurt revenue growth for the next two to three quarters and it forecast lower-than-expected sales of 18.04 billion ($2.7 billion) to 18.58 billion yuan in the third quarter.
 
That came as the government implemented rules to limit the number of ads that can be displayed on each page. Baidu is also expecting slower customer growth as it rechecks the credentials of advertisers to ensure their businesses are legitimate.
...


64x64

Japan to work with Russia on energy development www3.nhk.or.jp

Japan's trade and industry minister and the head of Russia's largest natural gas producer have agreed to work together in energy development.
 
Hiroshige Seko met chief executive of Novatek, Leonid Mikhelson, in Moscow on Saturday.
 
Seko said Japan's economic ties with Russia, which has rich natural resources, developed around the oil and gas sector.
 
Mikhelson said he is glad the bilateral relations are reaching a new level.
 
The 2 agreed that the energy sector is the most important component of the 8-point cooperation plan that Japanese Prime Minister Shinzo Abe has proposed.
The Japan Bank for International Cooperation, together with a French governmental bank, is planning to lend Novatek 60 billion yen or about 580 million dollars for the construction of a liquefied natural gas plant in the Arctic Yamal Peninsula.
...


64x64

Eyeglass computers speeding up damage assessment www3.nhk.or.jp

Investigators at major non-life insurers in Japan have started using portable digital devices when assessing damage. They say a new generation of technology can help settle claims more promptly.
 
Workers at Sompo Japan Nipponkoa have started wearing high-tech eyeglasses, when they investigate damage to homes and household goods. A camera is embedded in the units.
 
This means claim adjusters don't have to visit accident sites in person. They can remotely instruct field staff to take and transmit the needed images.
 
The adjusters can then study the pictures and determine how much to pay out.
 
Company managers say it currently takes about 2 to 3 weeks to process a claim. They're hoping the technology will lessen the process by 2 days.
 
Mitsui Sumitomo Insurance is using eyeglasses for ocean cargo and overseas factories.
 
Non-life insurers are also investigating traffic accidents by using drones.
...


64x64

Canadian Gov’t throws $2M lifeline to Newfoundland copper-gold mine www.mining.com

Canada’s federal government is injecting Cdn$2 million (about $1.5 million) into Rambler Metals and Mining’s (LON:RMM) (CVE:RAB) copper and gold mine located in Newfoundland’s Baie Verte
 
The loan will let the London, England-based junior miner increase output at its Ming operation, in production since Nov. 2012 and which has an updated estimated life span of 21 years. Ming was originally expected to run out of copper in 2018.
 
The funding, CBC reports, will also help the miner expand a grinding circuit at its copper-processing facility at Nugget Pond, enabling it to boost its copper concentrator capacity from 650 to 1,250 tonnes a day.
 
This initial expansion had already been fully funded through a $13.1 million (£10.5M) investment made by CE Mining II earlier this year, giving the financier majority control (63%), the company said in late October, when reporting financial results for the year ended July 31.
 
Rambler is also advancing engineering studies on ore pre-concentration and shaft rehabilitation work, with a view to further increase production to 2,000 mtpd at Ming, its flagship mine.
 
The company’s property in Canada contains the former producing Ming and Ming West copper-gold mines. Ming closed operations in 1982, after producing over 2.1 million tonnes of ore grading 3.5% copper, 2.5 g/t gold and 11 g/t silver over 10 years in operations. It was officially reopened in 2011.
 
Ming West Mine run for a shorter period of time — between 1995 and 1996 — producing 271,000 tonnes grading 4.0% copper and 5.8 g/t gold.
...


64x64

After $195 million in talc verdicts, J&J strives to change court www.reuters.com

After a $67.5 million jury verdict against Johnson & Johnson (JNJ.N) on Oct. 27 marked its third straight trial defeat in an onslaught of lawsuits claiming its talc-based products cause ovarian cancer, the company is hoping to reverse the trend by having the cases heard in a different court.
 
All three awards, totaling around $195 million, were handed down in state court in St. Louis, Missouri, with the same judge presiding. Women or their families have filed 2,500 similar claims, the vast majority in the same court, which is one of several in the United States that attracts consumer lawsuits.
 
The plaintiffs claim studies show J&J's Baby Powder and Shower to Shower products, when used in the vaginal area, increase the risk of ovarian cancer. The company counters that larger, more comprehensive studies show no such link.
 
In a court filing in August, J&J argued the case should be dismissed because plaintiffs’ lawyers tainted the St. Louis jury pool. The company said the other side spent almost $10 million on national and local television commercials in the previous year, with a disproportionate share of them running in St. Louis. The women's lawyers have denied J&J's claim.
 
The company also contended that, because most of them are not from St. Louis and the New Jersey-based company has no strong ties to the area, the cases should not have been heard there. The judge rejected both arguments.
 
John Beisner, one of the top lawyers representing J&J, said the company plans to make the same arguments to the Missouri Court of Appeals. If the St. Louis court is found not to have jurisdiction, the cases would have to be refiled elsewhere.
 
Beisner compared the St. Louis verdicts to a favorable ruling in September from a state court judge in New Jersey. That judge, who is presiding over some 200 talc cases, disqualified the plaintiffs' experts on the grounds that their scientific testimony was too speculative.
 
In the same decision, he dismissed the first two cases set for trial and the ruling is being appealed.
 
J&J unsuccessfully tried to block the testimony of the experts in St. Louis on similar grounds. The company will make the same challenge on appeal, Beisner said.
 
Last week's $70 million verdict followed Missouri jury awards of $72 million in February and $55 million in May.
 
The first big talc verdict in February was won by the family of Jacqueline Fox, who died in October 2015. Their lawyers said she used J&J Baby Powder and Shower to Shower Powder daily for 35 years for genital hygiene before she was diagnosed with ovarian cancer in 2013.
 
Jere Beasley, whose firm has filed hundreds of talc cases, including the three Missouri wins and two New Jersey dismissals, said the verdicts should prompt J&J to make a deal.
 
"If I were representing them, I would say, folks, we need to sit down and regroup and start trying to settle these cases," he said.
 
LARGE VERDICTS
 
Large verdicts are relatively common in major product liability cases, and they are often reduced or overturned on appeal. One lawsuit against Merck & Co over its recalled painkiller Vioxx produced a $253 million verdict in 2005, which was thrown out three years later. Merck eventually settled most Vioxx cases for $4.85 billion in 2007.
 
Shareholders in J&J, which had sales of $70 billion last year, have so far shrugged off the three talc verdicts, the first of the cases to go to trial. But if the trend continues, liability could mount. The company has not reported setting aside any litigation reserve to deal with talc cases, as it has with previous claims over antipsychotic drug Rispardal and recalled hip implants.
 
Stocks, dollar, peso jump in relief rally after FBI clears Clinton
U.S. stock futures surge after Clinton cleared by FBI
J&J no longer sells Shower to Shower, which was acquired by Valeant Pharmaceuticals in 2012. Though not a major seller on its own, Baby Powder is a recognized symbol of J&J’s baby care line, which brought in $2 billion in revenue in 2015.
 
Some legal experts said it made sense for J&J to fight on.
 
"Ordinarily I would say three verdicts like that would prompt you to think about settlement," said University of Georgia Law School professor Elizabeth Burch, who researches product liability cases, but she said J&J's case is somewhat different.
 
A settlement would not necessarily cap J&J's liability, Burch said, because its talc products are still on the market, unlike companies whose products have been recalled.
 
Howard Erichson, a professor at Fordham School of Law, said the company also had valid concerns about the impact of a settlement on its position in the market.
 
"This is not Vioxx. This is not asbestos," Erichson said. "This is a case where the company wants to defend its brand, and is not going to be anxious to announce a big settlement that appears to concede that the product is harmful.
...


64x64

Euro founding father Otmar Issing warns about project's future www.bbc.com

A founding father of monetary union has given a damning assessment of the euro bloc, saying that not incorporating an exit strategy was a mistake.
Prof Otmar Issing told the BBC's Wake up to Money that faultlines across the eurozone remain, citing economic weakness in Greece, Portugal and Italy.
The European Central Bank's first chief economist also warned about the impact of negative interest rates.
And he said political pressures threatened central banks' independence.
Prof Issing told the BBC that structural problems in the eurozone and dwindling public support in some countries were still major problems.
The euro currency was "stable and performing much better than expected", he said. "But I wish I could say the same about the euro area."
Countries that tipped the bloc into recession during the global financial meltdown were still in serious economic trouble. Greece was in "permanent crisis", and economic reforms in Portugal and Italy were either on hold or being reversed, the professor said.
'Blackmail'
Prof Issing, a former adviser to Germany's Chancellor Angela Merkel, has in recent years become suspicious of the euro project he helped to create, warning that it would collapse without reform.
He told the BBC that it was "mistake in the construction of the whole arrangement that once a member, you remain a member for eternity".
It meant that countries not complying with the eurozone's economic and budgetary rules "can blackmail the others".
Allowing a temporary exit would, for example, have helped Greece to reform its economy so that it could then return later in better financial health.
However, some countries should never have joined the euro in the first place, he said, without naming names. They "were not yet ready to thrive under a single monetary policy and one central bank".
Prof Issing is also increasingly concerned about central banks' use of zero or negative interest rates in a bid to stimulate growth. The policy has been used by, among others, the ECB, Japan, Switzerland and Sweden
It is hindering the recovery of banks, he said, adding: "If it persists for longer, then I think we will see dramatic consequences for insurance companies and pension schemes."
Furthermore, "the longer zero interest rates continue, the more difficult it will be to exit from this situation". A gradual increase in interest rates would not stop companies investing for growth, he believed.
Threat to London
Prof Issing is worried that central banks are straying onto "political turf" and damaging their independence.
He would not discuss Bank of England governor Mark Carney, who has faced criticism from EU Leave campaigners.
The professor is more concerned about the ECB. Because it "is the only game in town" it wields huge power. "This does not foster independence, but undermines it," he said.
On Brexit, Prof Issing said there were too many issues to be resolved before he could speculate on its impact on the eurozone.
But he was certain about one thing - London's position as Europe's financial capital is now under threat.
He thinks the capital's financial centre will not be able to keep the same benefits and freedoms outside the EU. "It will not happen," he said.
...