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

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France remains Russia’s top foreign investor www.rt.com

For the third consecutive year France is the leading foreign investor in the Russian economy, according to the Director General of the Franco-Russian Chamber of Commerce and Industry (CCIFR) Pavel Shinsky.

The chamber says in the first three months of this year France invested twice as much as Germany, and even the economic sanctions haven’t scared off French companies.

“In the first quarter of this year France invested $797 million in the Russian economy while Germany $350 million, and the US $130 million,” Shinsky said at the International Business Summit in Russia’s Nizhny Novgorod.

France has long been a major foreign employer in Russia, primarily due to such companies as Auchan, and French banks. It provides more than 130,000 jobs from Kaliningrad to Vladivostok, said Shinsky.

“No single French company, and there are about 6,000 of them operating in Russia at the moment, has left the country since the beginning of the sanctions,” he said, adding it is “necessary to improve the business climate and make it easier for businesses to operate."

CCIFR data showed that last year French companies invested more than $1 billion in Russia.

French officials and businesses have repeatedly called for the lifting of anti-Russia sanctions imposed by the EU in 2014 because of the dispute over Crimea and eastern Ukraine.

Western sanctions against Russia are causing problems for French companies which are losing market share, said Michelle Assouline from the Movement of the Enterprises of France (MEDEF).

France’s Foreign Minister Jean-Marc Ayrault said sanctions against Russia should be lifted as soon as possible.

The EU sanctions include restrictions on lending to major Russian state-owned banks, as well as defense and oil companies. Brussels also imposed restrictions on the supply of weapons and military equipment to Russia, as well as military technology, dual-use technology, hi-tech equipment and technology for oil production.

In response, Moscow imposed an embargo on agricultural produce, food and raw materials from countries that joined the anti-Russian move. Since then French farmers have repeatedly taken to the streets to protest low prices on agricultural produce ruining their businesses. Prices were driven down by the loss of the Russian market as a result of the sanctions.

 
 
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Coal export projected to increase www.vom.mn

Coal export is projected to increase. The coal export of Mongolia is estimated to increase to 19.5 million tons in 2016, according to the Mineral Resources Authority. The coal export is forecast to increase by 4.5 million tons as compared to the previous year. Most or 12 million tons of coal for export this year is expected to be contributed by the West and East Tsankhi mines of ErdenesTavanTolgoi JSC.

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China green credit grows www.chinadaily.com

Banks issue 75 billion yuan worth of environmental bonds in the mainland in the first half of the year

With environmental issues looming high on policymakers' agendas, China is grabbing the lion's share of global green funding, demonstrating the country's potential as the game changer for the green bond market.
The issuance of green bonds, which are debt instruments exclusively for projects that address environmental issues, totaled 75 billion yuan ($11 billion) in the mainland over the first half of the year, amounting to 33 percent of the global total, according to data from the central bank.

The nation's rapidly growing sale of such debt has been in the market spotlight for no more than 18 months. Chinese banks have emerged as Asia's No 1 issuer, leading the green finance rush. The country is on course to realize the funding target of $46 billion by the end of the year, said Ma Beijia, equity analyst at Bank of America Merrill Lynch.

The world's second-largest economy is in dire need of 2 trillion yuan to 4 trillion yuan of green investment annually, with public finance only accounting for 15 percent of this amount and the remaining 85 percent coming from private capital, as data from BofA Merrill Lynch showed.

"Green bonds, in particular, stand as the key to mobilizing private capital for environmental needs," Ma said.

In July, the Bank of China sold $3.03 billion in new green bonds, the largest international issuance of its kind and the very first deal made in dollars, euros and yuan, comprising two-year, three-year and five-year bonds to finance solar, wind and biomass projects throughout the world.

The multibillion-dollar sale also highlighted Bank of China as the first lender from Asia to issue such instruments in Europe, leading the global green financing market, which had previously been European dominated.

The Chinese mainland's enthusiasm to tap the green market has added some clout to the market, where issuance has so far been on a small scale.

But, the hard fact is that even though the green market hit a record of $100 billion last year and is predicted to reach $80-90 billion this year, the sector remains a tiny part of the global bond market, which is around $78 trillion.

"The overall green funding pool is not big enough right now. For emerging markets, it's even smaller," Ma noted.

In a market pioneered and paced by multinational financial institutions in developed economies like the European Investment Bank and the World Bank, analysts are eyeing more and more corporate issuers to join the fray.

The growth of the corporate green bonds market opens up the market to higher yields than the debt issued by the AAA-rated multilateral banks, helping to ease the lingering concern over the yields that besets green bonds investors today.

Utility companies, with easier access to green business, are the natural forerunner.

But the market would welcome more household blue-chip names, even if they don't have much green business footprint, to make a foray and help the issuance pick up steam

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Yahoo says hackers stole data from 500 million accounts in 2014 www.reuters.com

Yahoo Inc (YHOO.O) said on Thursday that at least 500 million of its accounts were hacked in 2014 by what it believed was a state-sponsored actor, a theft that appeared to be the world's biggest known cyber breach by far.

Cyber thieves may have stolen names, email addresses, telephone numbers, dates of birth and encrypted passwords, the company said. But unprotected passwords, payment card data and bank account information did not appear to have been compromised, signaling that some of the most valuable user data was not taken.

The attack on Yahoo was unprecedented in size, more than triple other large attacks on sites such as eBay Inc (EBAY.O), and it comes to light at a difficult time for Yahoo.

Chief Executive Officer Marissa Mayer is under pressure to shore up the flagging fortunes of the site founded in 1994, and the company in July agreed to a $4.83 billion cash sale of its internet business to Verizon Communications Inc (VZ.N).

"This is the biggest data breach ever,"� said well-known cryptologist Bruce Schneier, adding that the impact on Yahoo and its users remained unclear because many questions remain, including the identity of the state-sponsored hackers behind it.

On its website on Thursday, Yahoo encouraged users to change their passwords but did not require it.

Although the attack happened in 2014, Yahoo only discovered the incursion after August reports of a separate breach. While that report turned out to be false, Yahoo's investigation turned up the 2014 theft, according to a person familiar with the matter.

Analyst Robert Peck of SunTrust Robinson Humphrey said the breach probably was not enough to prompt Verizon to abandon its deal with Yahoo, but it could call for a price decrease of $100 million to $200 million, depending on how many users leave Yahoo.

Steven Caponi, an attorney at K&L Gates with a practice including merger litigation, said that Yahoo's breach could fall under the "material adverse change" clause common in mergers allowing a buyer to walk away if its target's value deteriorates.

 
 
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Shipping giant Maersk to split up and focus on North Sea www.bbc.com

Maersk, the Copenhagen-based shipping giant, is to be split up with its energy interests directed more towards the North Sea.
The family-owned firm, formally known as AP Moller-Maersk, will focus on its transport and logistics business.
The energy division is to shrink its global reach and focus more on the North Sea, where it has expertise.
That division has around 800 employees based in Aberdeen, working both on and offshore.
The company employs 88,000 people and operates across 130 countries, with turnover of more than $40bn (£31bn).
Work will continue on existing energy projects, including some of the biggest projects in the UK offshore sector. But the company signalled that new investment commitments may be low, particularly in tankers and drilling.
Maersk Oil has been operating in the UK central North Sea sector for 11 years, and is a partner in some of the biggest developments during that time, including the Golden Eagle.

Shipping has been hit by sharp reductions in rates for containers - a notoriously volatile market. That is partly due to a downturn in trade, and also to the extra tonnage added to the world container fleet.
Hanjin Shipping, the seventh-biggest in container transport and based in South Korea, recently filed for bankruptcy. It is struggling to find the finance to offload cargo from its ships, worth several billion pounds.
Maersk's energy business faces problems which are at least as deep as shipping, due to the fall in the price of oil. The company's strategic review speaks of finding "solutions" including joint ventures, mergers or spinning off companies for separate listing. The vagueness of the plan makes it look like an intention to exit as much of that sector as possible, and shipping is clearly the priority.
The North Sea presence may be one part of the energy division that is retained, as the technology involved is an area of expertise. That's unless a buyer can be found.
Breaking up the 112-year-old conglomerate is a reversal of the strategy under which Maersk Line grew to have a fleet of 590 ships, plus 500 smaller service ships. It was guided by its chairman Maersk McKinney Moller, who remained active in the company until his death four years ago, aged 98.
It is operator of the Culzean gas field development, which is one of the biggest in UK waters for 25 years. It is expected to meet 5% of Britain's gas demand after it comes on-stream, scheduled for 2019.
Its other production is from Denmark, Qatar, Kazakhstan, the US Gulf of Mexico and Algeria. Exploration and development activities are also under way in Angola, Kenya, Ethiopia, Greenland, Brazil, Kurdistan, and the huge Johan Sverdrup field being developed in the Norwegian North Sea.
Michael Pram Rasmussen, the chairman, said in a statement: "Separating our transport and logistics businesses and our oil and oil related businesses...will enable both to focus on their respective markets. Both face very different underlying fundamentals and competitive environments."
The oil, drilling, offshore services and tanker divisions face moves towards joint ventures, sales and stock market floats over the next two years. Profits in that division have recently come in well below expectations.
Key development projects
The company's strategy states: "Maersk Oil will adjust its current strategy to focus its portfolio in fewer geographies to gain scale in basins, particularly in the North Sea, where it can leverage its strong capabilities within subsurface modelling, well technology and efficient operations. Maersk Oil will aim to strengthen its portfolio through acquisitions or mergers.
"Further, Maersk Oil will mature existing key development projects, while keeping exploration activities and expenses at a low level. While the strategic focus will be reflected in a disciplined capital allocation, investments in strategic projects already sanctioned or under development will continue as planned.
"Maersk Drilling, Maersk Supply Services, and Maersk Tankers will continue to optimise their market position and operation with the existing fleet and order book. Additional investments in the group's offshore service businesses and Maersk Tankers will be limited."
Denmark's Sydbank estimated the value of the logistics business at, very roughly, £23bn. Its central estimate for the energy division was close to £13bn.

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Hydro-electric power plant be built in western Mongolia www.vom.mn

Hydro-electric power plant to be built in western Mongolia. The new hydro power station will supply electricity to the western region of the country. The three westernmost provinces are often plagued by blackouts and are largely dependent on electricity export from Russia. The plant, which has the capacity to generate 92.8 megawatt electricity, is being financed by USD 248 million from Turkey’s “ZTM Engineering and Consulting Co. Inc.” The hydro-electric power plant would be constructed under “build-operate-transfer” terms as set out in the Concession Law.

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Thousands of UK-based finance firms may lose EU ‘passport’ rights www.rt.com

Britain’s financial watchdog has warned that Brexit puts the country’s finance sector at ‘significant’ risk with almost 5,500 UK-registered firms losing their right to operate freely across the European single market.
 
According to the Financial Conduct Authority (FCA), all those firms hold at least one passport to do business in another EU or European Economic Area country. More than 8,000 financial firms based elsewhere in the European Union also do business in Britain via single market passports, and their rights are likewise threatened.
 
“These figures give us an initial idea of the effects of losing full access to the single market in financial services. The business put at risk could be significant,” said Andrew Tyrie, chairman of the UK parliament’s Treasury Select Committee.
 
Passporting allows companies to do business across the 28-nation European Union, and the European Economic Area which includes Iceland, Liechtenstein and Norway.
 
The FCA said UK companies hold 336,421 passports because many have passports for different sectors in different countries. The total number of passports held by European businesses for access to the UK stands at 23,532.
 
The passports cover a range of activities, including investment banking, corporate lending, insurance, payments and asset management.
 
While Brexit negotiations on a formal new trade deal with the EU are expected to start next year the future of the passport rights remains uncertain. Losing those rights means any financial institution using London as its EU headquarters would have to move to another country and offer services to the rest of the union from there.
 
Colm Kelleher, president of the US bank Morgan Stanley, told the BBC that “clearly some size of our businesses will have to be moved out of London and into Europe with the absence of any passporting agreement.”
 
He added, however, that he remains “convinced London will retain its reputation and prestige as a global financial services center.”
 
Since Britain’s vote to leave the European Union, cities such as Paris, Amsterdam, and Frankfurt have expressed their willingness to become a new center of international finance.
 
France has promised to "roll out the red carpet" for City bankers in an effort to woo them from London to Paris. Poland also said it wants to attract businesses looking to shift operations away from the United Kingdom in the wake of Brexit.
 
 
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Russia & China start building connecting suspension bridge www.rt.com

The construction of a suspension bridge across the Amur River, which will connect the Russian city of Blagoveshchensk with China’s Heihe has begun, reports the Xinhua news agency.
The Chinese region will invest about $120 million in the project.
 
According to the construction director Xing Lixin, the bridge will be around a kilometer long and getting between China and Russia will take 20 minutes, which will significantly reduce the border crossing time.
 
The project has been thought about for 20 years, and Russia and China finally agreed to build the road in 2014. Since then, the two sides have been negotiating how it would be financed.
 
After the suspension bridge is finished, it will be connected to a railway bridge across the Amur River.
 
The bridge is likely to boost trade between Russia's Far East and China. The shortest distance between Heihe and Blagoveshchensk, which are known as sister cities, is 700 meters. However, cars now have to drive 3,500 kilometers to get to the neighbor country.
 
Border trade with China is a very important part for Blagoveshchensk’s economy. The city is home to a large Chinese expatriate community and is part of a free trade zone which also includes Heihe.
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Mongolian Board Members for OT LLC are appointed www.montsame.mn

 The new Mongolian Board members for Oyu Tolgoi LLC are Executive Director of Erdenes Oyu Tolgoi LLC B. Munkhbaatar, N. Bagabandi and Ch. Altannar. N. Bagabandi is the former President of Mongolia and one of the first board members of Oyu Tolgoi LLC before. Ch. Altannar, a mathematician was the Director of the German-Mongolian Institute for Resources and Technology and worked at Oyu Tolgoi LLC for a certain time

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Postal Bank IPO to be the world's biggest www.chianadaily.com.cn

State-owned lender Postal Savings Bank of China raised about HK$ 58 billion ($7.4 billion) in its initial public listing offering and is set to go public in Hong Kong on Sept 28-making it the world's biggest IPO since Alibaba Group went public raising $25 billion in September 2014.
PSBC plans to price its sale of 12.1 billion shares at HK$4.76 per share, below the midpoint of a marketed range from HK$ 4.68 to HK$5.18 a share, according to a report in The Wall Street Journal.
 
Clarence Kwok, chief investment consultant at Bluestone Securities, said that PSBC had priced itself near the bottom of analyst expectations, reflecting the market's low response to purchase the H shares, and said the bank's oversubscription rate might be less than 1.6 times.
 
He said that usually companies lowered the stock price to improve an issue's popularity-and the subscription rate during the good times for the mainland bank shares could reach five to six times.
 
Kwok added, however, that currently the market fears that Chinese mainland banks are suffering from bad debt and shrinking profits under a slowing economy. Additionally, the fact that the company's 1.22 price to book ratio and 9.52 price to earnings ratio were higher than the respective sector average of 0.9 and 5.6 also was dragging on market sentiment.
 
According to the PSBC prospectus, the nonperforming loan ratio of the company reached 0.78 percent as of June 30 this year and the company's allowance coverage ratio was 286.71 percent as of March 31 this year.
 
Kwok said the nonperforming ratio was lower than the average 1.73 percent of the big commercial banks and the allowance coverage ratio was higher than the other large commercial banks' average of 154.73 percent, which was an advantage.
 
Chris FengShijie, director of the capital market department at Qianhai Securities, said he was optimistic about the H shares as the company had numerous branches and a broad and solid customers base. As well, the company's relatively conservative business strategy ensured it to be less effected by market and industry risks.
 
The State-owned retail bank has over 40,000 outlets and over 500 million retail customers and its official website says that it provides financial services to communities, small and medium-sized companies and "agriculture, rural areas and farmers."
 
According to the prospectus, six cornerstone investors have subscribed more than 70 percent of the H-shares. These are CSIC Investment One Ltd, Shanghai International Port Group (HK) Co Ltd, Victory Global Group Ltd and State Grid Overseas Investment Ltd, China Chengtong Holdings Group Ltd, as well as Great Wall Pan Asia International Investment Co Ltd.
 
Financial commentator Dennis Huang said this year the large State-owned listing corporations were mostly supported by "national team" investors and so was Postal Savings Bank of China. He also pointed out that in recent years, the stock market usually moved to higher ground close to October, enabling the large State-owned companies to go public.
 
Looking at expectations for its stock market trading debut, Kwok said he saw the share price topping the offer price and then remaining flat initially. But in three to four months the big State-owned stock would be probably included in the China Enterprises Indices and the share price would bounce back, he said.
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