1 LEGAL DISPUTE OVER EMC OWNERSHIP COMES TO AN END WWW.ZGM.MN PUBLISHED:2018/09/20      2 ERDENES TAVAN TOLGOI REVENUE SURGES DUE TO HIGHER COAL PRICES WWW.NEWS.MN PUBLISHED:2018/09/20      3 RUSSIA AND MONGOLIAN BORDER CROSSING NO. 487 WWW.NEWS.MN PUBLISHED:2018/09/20      4 WORLD ECONOMICS REPORTS THAT MONGOLIA’S EMPLOYMENT RATE HITS A FIVE-YEAR HIGH WWW.GOGO.MN PUBLISHED:2018/09/20      5 USD HITS RECORD HIGH IN MONGOLIA DUE TO HIGHER IMPORTS WWW.CHINA.ORG.CN PUBLISHED:2018/09/20      6 READOUT OF VICE PRESIDENT MIKE PENCE’S MEETING WITH PRIME MINISTER UKHNAA KHURELSUKH OF MONGOLIA WWW.WHITEHOUSE.GOV PUBLISHED:2018/09/20      7 MONGOLIA LAUNCHES EU-FUNDED PROJECTS TO PROMOTE GREEN DEVELOPMENT, ENVIRONMENTAL PROTECTION WWW.XINHUANET.COM PUBLISHED:2018/09/20      8 COAL EXPORTS FROM TOP SHIPPER HOBBLED WITH MINERS FACING CONSTRAINTS WWW.MINING.COM PUBLISHED:2018/09/20      9 FRONTIER'S "INVEST MONGOLIA TOKYO 2018" WWW.MONGOLIANBUSINESSDATABASE.COM PUBLISHED:2018/09/19      10 U.S.-CHINA TRADE TUSSLE IS CREATING WINNERS IN SOUTHEAST ASIA WWW.BLOOMBERG.COM PUBLISHED:2018/09/19      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     СЗХ-НД МӨНГӨ УГААХТАЙ ТЭМЦЭХ НЭГЖИЙГ БАЙГУУЛАХААР БОЛЛОО WWW.MONTSAME.MN НИЙТЭЛСЭН:2018/09/20     БНХАУ: ОЛОН ТАЛТ, ЧӨЛӨӨТ ХУДАЛДААГ ДЭМЖИЖ БАЙНА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/09/20     АТҮТ: БҮРТГЭЛТЭЙ АВТОМАШИНЫ 60 ОРЧИМ ХУВЬ НЬ ҮЗЛЭГ ОНОШИЛГООНДОО ХАМРАГДСАН WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/09/20     ЭДИЙН ЗАСАГ УРТ ХУГАЦААНЫ ТЭНЦВЭРИЙГ ХАНГАХАД ТӨВЛӨРНӨ WWW.ZGM.MN НИЙТЭЛСЭН:2018/09/20     ЯПОН УЛСТАЙ АЯЛАЛ ЖУУЛЧЛАЛЫН САЛБАРТ ХАМТАРНА WWW.DNN.MN НИЙТЭЛСЭН:2018/09/20     МОНГОЛ, АМЕРИКИЙН ХАРИЛЦАА ШАТ АХИЖ, ӨРГӨТГӨСӨН ИЖ БҮРЭН ТҮНШЛЭЛИЙН ТҮВШИНД ХҮРСНИЙГ НОТЛОВ WWW.NEWS.MN НИЙТЭЛСЭН:2018/09/20     ШЕНГЕНИЙ БОГИНО ХУГАЦААНЫ ВИЗИЙН МЭДҮҮЛГИЙГ УЛААНБААТАР ХОТОД АВНА WWW.MEDEE.MN НИЙТЭЛСЭН:2018/09/19     2018 ЭХНИЙ 7 САРД МОНГОЛЧУУД ГАДААД РУУ ЭМЧИЛГЭЭНД ЯВАХДАА 19.5 САЯ АМ.ДОЛЛАР ЗАРЦУУЛЖЭЭ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/09/19    

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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Japan to increase butter imports www.nhk.or.jp

Japan's agriculture ministry is planning to import another 4,000 tons of butter, as raw milk production may fall in some areas of the country.

Ministry officials say cows have been in poor condition in Hokkaido and Iwate prefectures, which were hit by typhoons last month.

The ministry earlier decided to import 13,000 tons of butter, as a shortage is expected this year as in recent years.

Officials say another 4,000 tons are needed to have a sufficient amount after Christmas and year-end, when demand usually surges.

The ministry will make an official decision on Tuesday after hearing from wholesalers and consumer groups.

The number of domestic dairy farmers has been shrinking, causing a drop in milk production. Dairy producers in Japan tend to sell milk for drinking or use it to make whipped cream rather than butter.

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Stunning coking coal rally wreaks havoc in steel, iron ore www.mining.com

 
The rise in the price of coking is upending the economics of the iron ore and steel markets with the Australian export benchmark price climbing 164% so far this year.
 
Metallurgical coal was exchanging hands at $206.40 on Monday 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 sent the price surging to $335 a tonne (albeit not for long).
 
The rally was triggered by Beijing’s decision to limit coal mines' operating days to 276 or fewer a year from 330 before as it seeks to restructure the industry. Safety closures and weather related supply curbs in China and Australia only added fuel to the fire.
 
In a new research note Adrian Lunt of the Singapore Exchange says margins for steelmakers in China, which forges almost as much steel as the rest of the world combined have come under pressure again and the tight conditions may continue:
 
"The recent spike in coking coal prices has sent spot steelmaker margins plummeting back to around their lows last seen in Q4 2015. And unless coking coal prices reverse course soon, this is likely to weigh on steelmaker earnings through the course of Q4 2016, particularly as restocking needs have provided some support to iron ore prices
 
"With Chinese steel output remaining strong and demand sentiment relatively robust (with continued support from both real estate and infrastructure in particular), steelmaker margin pressures appear likely to persist over the coming months."
 
While the price of iron ore has also recovered this year – up 31.5% year to date holding above $55 a tonne on Monday – the iron ore/coking coal ratio is now at its lowest level this century according the SGX calculations.
 
Analysts from Macquarie recently warned that speculation as much as fundamental factors are driving the price with a mere half-a-million tonnes (out of a seaborne trade of 200 million tonnes a year) responsible for the August-September surge to above $200.
 
Most producers, with the exception of BHP Billiton which set up globalCOAL a few years back, do not receive the spot price but the ruling quarterly contract price which is still in double digits.
 
In an earlier report The Steel Index noted that speculation that the upcoming quarterly contract negotiations for the October – December 2016 period "may be rather combative" and that according to market participants, Japanese steelmakers will undoubtedly face levels “at least above US$120/t” in the final quarter of 2016.
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China biggest threat to global economic stability – former IMF chief economist www.rt.com

 
Soaring debt and stagnant growth in China are a major threat to the global economy, said Harvard professor and former chief economist of the International Monetary Fund (IMF) Kenneth Rogoff in an interview with the BBC.
 
"I think the economy is slowing down much more than the official figures show," Rogoff told the British broadcaster.
 
The IMF expects the Chinese economy to grow 6.6 percent this year, its lowest growth since 1990.
 
"If you want to look at a part of the world that has a debt problem, look at China. They've seen credit fueled growth and these things don't go on forever," he added.
 
Rogoff doesn’t rule out that one of the main drivers of the global economy may face a “hard landing”.
 
"We've taken it for granted that whatever Europe's doing, Japan's doing - at least China's moving along and there isn't really a substitute for China," he said.
 
“I think India may come along some day, but it's fallen so far behind in size it's not going to compensate," Rogoff added.
 
According to the economist, China is now seeing a "big political revolution," pointing out to Beijing’s attempt to make the economy consumer-driven.
 
A recent research by Nomura showed that since the global crisis of 2008, Chinese firms have more than doubled the percentage of income they spend on servicing debt to 20 percent, the highest in the world.
 
The Bank for International Settlements in Basel has estimated China's credit-to-GDP deficit is now 30.1 percent, its biggest number since 1995, raising fears that the country’s economy growth was driven by a debt bubble.
 
This leaves British banks exposed to any trouble in the world’s second-biggest economy, according to Rogoff. UK banks have $530 billion worth of investments in China, or 16 percent of overall foreign assets.
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Hyundai Motor union stages first full strike in 12 years www.reuters.com

Hyundai Motor's South Korean labor union staged its first full nationwide strike in 12 years on Monday over stalled wage talks, putting the automaker's earnings and sales targets at risk.
 
The full-day walkout came after a series of partial stoppages since July at the automaker's factories across South Korea, its biggest manufacturing base which produces nearly 40 percent of its vehicles sold globally last year.
 
The disruption, led by union boss Park You-ki, has led to lost production of 114,000 vehicles worth 2.5 trillion won ($2.26 billion) as of Monday, the biggest strike-related output loss for the automaker in terms of value of vehicles.
 
The union plans to stage a partial strike for the remainder of this week and stoppages could continue into next week depending on the company's response, union spokesman Jang Chang-yeal said.
 
"This year's strike is lasting longer than expected. The third-quarter earnings should disappoint," Samsung Securities auto analyst Eim Eun-young said, also citing weak domestic demand.
 
Hyundai, the world's fifth-biggest automaker along with Kia Motors, said in a statement it was "obviously disappointed" with any halt in production and was continuing to work with the union to resolve the dispute.
 
Hyundai Motor shares ended down 1.1 percent at 140,500 won, compared with a 0.3 percent fall on the broader market.
 
Hyundai Motor's unionized workers in South Korea last month overwhelmingly voted down a tentative wage deal which was less generous than last year's package.
 
PROLONGED STRIKE
 
Trade Minister Joo Hyung-hwan urged Hyundai Motor's union to resolve the dispute, saying the strike would "throw cold water on the exports recovery".
 
He said India overtook South Korea as the world's fifth-biggest car producing country from January to July this year, adding that rigid industrial relations and higher wages would worsen the competitiveness of the domestic car industry.
 
Hyundai posted its tenth consecutive quarterly profit fall in the April-to-June period, hit by an emerging-market downturn and its failure to tap into strong global demand for sport utility vehicles.
 
Hyundai and Kia Motors were expected to see global sales slip 0.6 percent to about 7.96 million vehicles this year, below their targets of 8.13 million vehicles, NH Investment & Securities analyst Cho Soo-hong said.
 
Hyundai Motor has been hit by strikes in all but four of the union's 29-year history.
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Opec plans fresh oil price talks says energy minister www.bbc.com

Oil producers in the Opec group of countries will make another attempt this week to reverse a slump in crude prices, according to Algeria's energy minister.
Noureddine Bouterfa said there would be an informal gathering of Opec members on the sidelines of an energy conference in Algiers on Wednesday.
"We will not come out of the meeting empty-handed," the minister added.
The fall in prices has been causing problems for poorer members of Opec.
Oil prices collapsed from peaks of more than $100 a barrel in mid-2014 to near 13-year lows below $30 in January. The price on Friday was $44.48 a barrel.
Analysts remain gloomy about the chances of an agreement.
Michael Hewson, chief market analyst at CMC Markets UK, said: "Given that Opec has failed to agree much of anything in the last 12 months, it seems unlikely that it will start now."
Opec's 14 members, which produce about a third of the world's oil, have so far failed to agree a deal to cut output that would prop up prices.
But the state of the oil market was "more critical" than when Opec last met three months ago, Mr Bouterfa said.
Crucially, Saudi Arabia, the largest Opec member and which has resisted production curbs, may now be more willing to cut output, he added.
Saudi Arabia pumped a record 10.69 million barrels a day in August compared with 10.2 million in January, according to data compiled by Bloomberg.
'Best solution'
Although Wednesday's meeting is an informal gathering, Mr Bouterfa did not rule out it becoming a formal event.
He said: "Either we reach an agreement, which would be good, or we reach an understanding on the elements of an agreement, and that would also be good.
"Every state in the organisation agrees on the need to stabilise prices, it just remains for us to find a format that pleases everyone. The best solution would be a (production) freeze."
Opec members are losing between $300m and $500m a day, Mr Bouterfa said. "No (oil) company will be able to withstand it if prices remain under $50 a barrel," he added.
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Prosecution seeks arrest of Lotte chairman in bribery probe www.bbc.com

South Korean prosecutors are seeking a warrant to arrest chairman Shin Dong-bin of Lotte Group in a corruption probe.
The request follows a questioning of Mr Shin last week.
The move is the latest twist in a continuing probe into the country's fifth largest conglomerate.
The scandal has already hampered a Lotte share sale and is seen as linked to the apparent suicide of a company top executive.
'Full co-operation'
A Lotte Group spokesman confirmed that Mr Shin was in South Korea and would co-operate fully with the investigation.
"It's regrettable that an arrest warrant has been sought," the company said in a statement.
"We will fully present our case during the court proceedings and wait for the wise decision of the court."
The court hearing on the warrant request is expected on Wednesday or Thursday.

In August, the vice chairman of South Korea's Lotte Group, Lee In-won, was found dead hours before he was to be questioned in the corruption probe.
Police investigators said the cause of death appeared to be suicide. The 69-year-old Mr Lee was due to be questioned the same day in an inquiry into a possible slush fund and financial irregularities at the company.
Raids on the company's offices have led to the firm pulling out of a share sale worth as much as $4.5bn (£3bn) for its hotel unit.
Lotte Group has more than 90 firms in sectors as diverse as beer, hotels and chemicals, and has annual revenues of about $60bn, according to the Korea Fair Trade Commission.
It is Korea's fifth-largest conglomerate and is considered one of Korea's family-run "chaebols" which are known to have complex ownership structures.

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China starts world's largest radio telescope www3.nhk.or.jp

China has started operations of a newly-completed radio telescope to listen for signals from outer space.
 
China's state-run Xinhua news agency says the facility in the inland province of Guizhou has the world's largest radio telescope dish. It measures 500 meters in diameter, surpassing one of 305 meters in Puerto Rico.
 
The agency says nearly 1.2 billion yuan, or about 180 million dollars, was invested in the construction. About 10,000 people who were living within a 5-kilometer radius were relocated to ensure radio silence.
 
China's state media says the telescope will be made available to scientists around the globe after 2 to 3 years of tests. The media say the telescope will play a major role in the search for the origins of the universe.
 
In recent years, China has been making space explorations and planning its own space station.
Observers say the country could be aiming to increase its presence in the international community through such space projects.
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Australia must not "close the door" on foreign investment: Chinese investment tycoon www.xinhuanet.com

CANBERRA, Sept. 26 (Xinhua) -- The Chinese investment mogul behind the vetoed 285 million U.S. dollar bid for Australia's largest pastoral land holding said he had "given up" the dealing with Australia, urging the government not to "close the door" on foreign money.

Charles Liu, founder and chairman of billion dollar company HAO Capital, told local media on Monday that the MalcolmTurnbull's government's "protectionist" attitude toward Chinese and foreign investment would continue to discourage investors from taking their money there.

Liu, who has invested in Australia for 20 years, said the process surrounding the failed bid for pastoral company S. Kidman and Co. was reminiscent of the "unfortunate trend" of closing the door on Chinese money by other Western nations.

"(The government) should have made clear at the beginning (of the Kidman & Co. bidding process) -- if that were the case - that a Chinese bid would not be acceptable," Liu told The Australian newspaper.

"If this is the attitude of the Australian government, one has to totally give up on the Kidman deal."

He added that Australia's previous Tony Abbott-led federal government which put together the historic China-Australia Free Trade Agreement (ChAFTA) "was quite supportive, and then came the change of the administration".

Liu said Australia seemed to be heading down the same path as other Western nations which have been hesitant to fully embrace a global marketplace and economy, adding that his concerns were shared by "many people in China".

"This is an unfortunate trend developing in Western countries today, with de-globalization and xenophobia, populism and protectionism on the march," Liu said.

"Domestic politics in the West, including in Australia, is increasingly heading in that direction the massive change under way in countries' ethnic composition."

"It's unfortunate that entrepreneurial and hardworking Chinese people get caught up in this negativity, everyone being lumped together."

Liu said Australia should continue to embrace Chinese money as "there aren't so many people with deep pockets any more except the Chinese".

"If people take a positive attitude, then an overwhelming amount of business can be done," he said.

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Germany's Lanxess to buy Chemtura for about $2.12 billion in cash www.reuters.com

Lanxess AG (LXSG.DE) said on Sunday it would buy specialty chemical company Chemtura Corp (CHMT.N) for about $2.12 billion in cash to improve the German company's additives business.
 
Lanxess's offer of $33.50 for each Chemtura share, represents a premium of about 19 percent to the Philadelphia-based company's close on Friday.
 
The world's largest synthetic rubber maker will use existing funds and new debt to buy Chemtura in a deal with an enterprise value of about 2.4 billion euros ($2.69 billion), Lanxess said in a statement.
 
The boards of both companies have unanimously approved the deal, which is expected to close around mid-2017, Chemtura said in a separate statement.
 
Lanxess also said it will no longer pursue its earlier-announced share buyback of around 200 million euros.
 
Morgan Stanley advised Chemtura on the deal.
 
 
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British manufacturing sector ready for expected boost from Treasury www.theguardian.com

Britain’s manufacturers insisted they have a crucial role to play in a post-Brexit world, contributing $247bn (£190bn) a year to the economy and creating well-paid, high-value jobs.
 
The UK is the world’s ninth-largest industrial nation and manufacturing accounts for 14% of business investment according to a report by the sector’s trade body, called EEF, and Santander.
 
But it comes at a time of huge uncertainty for manufacturers, with companies intending to cut investment in new plant and machinery to its lowest level since the financial crisis according to a survey published by EEF earlier this month.
 
Lee Hopley, chief economist at EEF, said: “Given the importance of manufacturing to the economy it’s vital that we educate all stakeholders about its real value and contribution to growth. This is especially important in a post-Brexit world where we have to look at all new avenues of generating growth and investment.”
 
As chancellor Philip Hammond prepares to deliver his maiden autumn statement on 23 November, the group has called for an ambitious industrial strategy to make the UK an appealing proposition for future manufacturing investment.
 
Hammond is expected to announce a programme of investment in transport and other infrastructure projects to give the economy a post-Brexit-vote boost.
 
Reports over the weekend suggested Theresa May has instructed the chancellor to extend the northern powerhouse initiative – conceived by his predecessor in number 11, George Osborne – to other UK regions.
 
Hammond has already signalled that he is willing to “reset” the public finances to support the economy, abandoning Osborne’s target of returning to a surplus of £10.4bn by 2019-20.
 
It is hoped that Britain’s factories will be able to capitalise on the sharp fall in the value of the pound since the UK voted to leave the EU. A weak pound makes British goods cheaper abroad, potentially boosting exports.
 
EEF said Britain is having an industrial renaissance, with manufacturers creating jobs at a faster rate than any other country apart from the US since 2010. The sector’s average annual earnings of about £31,500 are almost £4,000 above the figure for the whole economy, it added.
 
London and the south-east are the biggest manufacturing regions, just ahead of the north-west and the midlands.
 
 
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