1 ‘ASIAN DOOR 2018’ FAIR KICKS OFF WWW.MONTSAME.MN PUBLISHED:2018/11/21      2 BEYOND BITCOIN: THE OTHER CRYPTOCURRENCIES YOU SHOULD KNOW TOO WWW.CNN.COM PUBLISHED:2018/11/21      3 ATTRACTING INVESTMENT FROM FRANCE TO AGRICULTURAL SECTOR WWW.MONTSAME.MN PUBLISHED:2018/11/21      4 MONGOLIA AND RUSSIA TO EXPAND COOPERATION IN TRANSPORT SECTOR WWW.MONTSAME.MN PUBLISHED:2018/11/21      5 NEWLY-OPENED CHINA-MONGOLIA FRIENDSHIP CULTURAL CENTER TO BOOST TIES WWW.CHINA.ORG.CN PUBLISHED:2018/11/21      6 UN APPRECIATES MONGOLIA’S CONTRIBUTIONS FOR NORTHEAST ASIA WWW.NEWS.MN PUBLISHED:2018/11/21      7 BHP OFFICIALLY DROPS 'BILLITON' FROM NAME WWW.MINING.COM PUBLISHED:2018/11/21      8 THE NOTICE: WWW.MONGOLIANBUSINESSDATABASE.COM PUBLISHED:2018/11/21      9 IRKUTSK REGION SUPPLIES USD 31 MILLION PRODUCTS TO MONGOLIA WWW.MONTSAME.MN PUBLISHED:2018/11/20      10 27 PARLIAMENT MEMBERS SUBMIT PETITION ON CABINET DISSOLUTION WWW.ZGM.MN PUBLISHED:2018/11/20      ОРОН СУУЦНЫ БАРИЛГЫН ӨРТГИЙН ИНДЕКС III УЛИРАЛД ЖИЛИЙН ДҮНГЭЭР 15 ХУВИАР ӨСЖЭЭ WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/11/21     САЙЖРУУЛСАН ТҮЛШНИЙ БОРЛУУЛАЛТ УДААШИРЧЭЭ WWW.ZGM.MN НИЙТЭЛСЭН:2018/11/21     ЗАСГИЙН ГАЗРЫН ТОГТВОРГҮЙ БАЙДЛААС ҮҮДЭЖ “ГЭРЭГЭ” БОНДЫН ХАНШ БУУРЧЭЭ WWW.MEDEE.MN НИЙТЭЛСЭН:2018/11/21     ЭДИЙН ЗАСГИЙН ӨСӨЛТ 7.1 ХУВЬД ХҮРНЭ ГЭВ WWW.EAGLE.MN НИЙТЭЛСЭН:2018/11/21     ТӨРИЙН ҮЙЛЧИЛГЭЭ ЦАХИМД ШИЛЖЛЭЭ WWW.UNUUDUR.MN НИЙТЭЛСЭН:2018/11/21     УЛААН БУУДАЙ, ТӨМСНИЙ ДОТООДЫНХОО ХЭРЭГЦЭЭГ БҮРЭН ХАНГАНА WWW.GOGO.MN НИЙТЭЛСЭН:2018/11/21     "ГУДАМЖ" ТӨСЛИЙН 14 БАЙРШЛЫН, 50 ТЭРБУМ ТӨГРӨГИЙН БАЙГУУЛАМЖИЙГ НИЙСЛЭЛИЙН ӨМЧИД БҮРТГЭЖ АВЛАА WWW.MONTSAME.MN НИЙТЭЛСЭН:2018/11/21     САНАМЖ: WWW.MONGOLIANBUSINESSDATABASE.COM НИЙТЭЛСЭН:2018/11/21     ЭРЧИМ ХҮЧНИЙ ИХ АЧААЛАЛ 973 МВТ-Д ХҮРЧЭЭ WWW.EAGLE.MN НИЙТЭЛСЭН:2018/11/20     ЗАСГИЙН ГАЗРЫГ ОГЦРУУЛАХ БИЧИГ ӨРГӨН БАРЬСНЫ ДАРАА "ГЭРЭГЭ" БОНДЫН ХАНШ БУУРЛАА WWW.BLOOMBERGTV.MN НИЙТЭЛСЭН:2018/11/20    

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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Ag Bank of China to pay New York state $215 mln for anti-money laundering violations www.asia.nikkei.com

NEW YORK (Reuters) -- Agricultural Bank of China Ltd will pay a $215 million penalty for violating New York state's anti-money laundering law, the state's financial regulator said on Friday.

Bank officials engaged in "intentional wrongdoing," including masking possibly suspicious transactions at its New York branch. Some transactions involved parties which are subject to U.S. sanctions, the New York State Department of Financial Services said.

The bank also "silenced" the branch's chief compliance officer, who raised concerns to managers about an "alarming" pattern of suspicious financial transactions, the regulator said. Among the transactions were payments from Yemen to Chinese companies and "unusually large" transfers between Chinese and Russian companies.

The bank, in a consent order with the regulator, agreed to put in an independent monitor to address "serious deficiencies," the regulator said.

Officials at Agricultural Bank of China and its New York branch could not be immediately reached for comment.

The bank holds total assets of about $2.8 trillion, including around $9.5 billion at the New York branch, New York state officials said.

Since 2013, the New York branch has cleared U.S. dollar transactions involving foreign correspondent banks in "rapidly increasing volumes," according to the consent order.

In dollar clearing, transactions in foreign currencies between parties are satisfied in U.S. dollars using a U.S.-based bank.

In 2014, the New York regulator warned the bank that its systems for monitoring suspicious transactions were inadequate, and told the bank not to boost its dollar-clearing business until it put improved surveillance measures in place.

While the practice is common, dollar-clearing can be risky for banks since it can be used by criminals and militant groups planning attacks to launder and move money.

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6 reasons coking coal price will tank www.mining.com

Coking coal prices continued to defy gravity on Friday trading at $270.50 a tonne after 18 straight sessions without a down day. According to data provided by the Steel Index premium Australia hard coking coal prices are up nearly four-fold since hitting multi-year lows around $70 a tonne in November last year.

Coking coal has been generally spared from its output cuts, an oft used excuse used to blame soaring prices
The seaborne coal rally was also spurred by supply issues after 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. Chinese government stimulus plans which saw steel production and demand for power pick up only added fuel to the fire. Authorities recently relaxed some of the production curbs, but that has done little to cool down the market.

The Steel Index in its monthly coking coal review notes that according to the Chinese National Bureau of Statistics, domestic coking coal production in China is only down only 1.6% for the first 9 months of year, compared to the same period last year, to about 331 million tonnes.

"This implies that coking coal has been generally spared from its output cuts, an oft used excuse used to blame soaring coking coal prices," says TSI.

Another reason the industry is worrying about a coking coal price bubble is speculation by Chinese investors in derivatives of steel, met coal and iron ore (the so-called ferrous complex). Lacklustre domestic equity markets and few investment opportunities on the mainland have seen the emergence of debt-fuelled retail investment frenzy.

The Financial Times quotes a hedge fund manager in Shanghai as saying "hedge funds looking for fixed returns. They’re not familiar with commodities, so [this] strategy looks good to them. Someone else takes the big risk":

But this form of margin lending, known in Chinese as peizi, mirrors the type of shadow bank-style margin financing that helped fuel the Chinese stock market boom last year. Once the market turned, margin calls amplified losses as investors were forced to liquidate their holdings to repay loans.
China imported 24.3 million tonnes of coal in September, up more than 33% compared to last year according to official customs data. But imports were down 14% month-on-month as rocketing prices prompt traders to adopt a wait and see approach to the overheated market.

The market appears to believe that whilst persistently rising spot prices have shifted the front contract months higher, future prices will adjust to reflect a more stable supply/demand dynamic
Beijing's central planning agency tried to reassure the market this week, calling the rise in coal prices "irrational" and also blamed speculation.

Coal stocks at five major ports in north China's Bohai Rim region have risen nearly 50% from August lows of previous weeks to 15 million tonnes, while inventories at major power plants have increased by more than a third to 65 million tonnes according to the National Development and Reform Commission.

The Q4’16/Q4’17 spread at the end of September was priced in around US$45/t, but had risen to US$92/t by October’s end. The market appears to believe that whilst persistently rising spot prices have shifted the front contract months higher, future prices will adjust to reflect a more stable supply/demand dynamic, with long-run pricing around US$145/tonne.
Finally, quarterly contract negotiations may also point to rationality returning to the market. TSI reports fourth quarter benchmark talks had been a "fraught negotiation process with the first settlement only agreed 10 days into the start of the quarter".

Japanese steel mills and various Australian producers agreed to a price of $200 a tonne for premium coking coal deliveries over the last quarter of the calendar year. While this represents a rise of 116% over the previous quarter, it's a long way away from spot prices.

In 2011 floods in key export region in Queensland saw the coking coal price touch an all-time high $335 a tonne. Steam coal peaked just shy of $140 a tonne in January 2011.

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Minister seeks business cooperation with Russia www3.nhk.or.jp

Japan's trade and industry minister has expressed hope for greater business cooperation with Russia.

Hiroshige Seko is visiting Moscow to explore economic projects with Russia. It's part of the groundwork for a bilateral summit planned in December.

Seko met Russia's Far East development minister, Alexander Galushka, on Friday.

They agreed to jointly study the development of shipping ports, airports, and other infrastructure in the Far East, so the region can become an export base for Asia.

Seko later inspected a model unit of a condominium developed by a Japanese real estate firm in Moscow. He also went into a restaurant of a Japanese "udon" noodle chain.

Japan's Foreign Ministry says 452 Japanese companies are active in Russia, up 50 percent from the figure a decade ago. But officials say some Japanese managers consider the country's complex legal system to be an impediment for business.

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Battered U.S. coal industry hopes for Trump, prepares for Clinton www.reuters.com

Republican presidential nominee Donald Trump has won over the U.S. coal industry by promising to revive the downtrodden sector and scrap regulations if elected.

But the industry has a Plan B if the New York businessman loses to his more green-minded Democratic rival Hillary Clinton on Tuesday: carbon capture and storage, a technology that captures carbon dioxide from burning coal and injects it underground, where many scientists are optimistic it cannot contribute to global warming.

Coal backers see CCS as a politically feasible solution that could help the next president thread the needle between environmentalists and a once-powerful business that is in desperate need of a lifeline. They have been pushing both major party candidates to embrace it.

Staff at the National Enhanced Oil Recovery Initiative held separate teleconferences with the Clinton and Trump campaigns in August on the merits of a bill that would extend and raise tax breaks for coal and other fossil fuel companies doing CCS in oilfields, from $10 per ton of carbon stored to $35 a ton. NEORI is made up of diverse groups ranging from environmental ogranizations to some of the country's largest coal companies.

Weeks after the teleconference, Clinton announced her support for the bipartisan CCS bill. Nearly 20 of 100 senators, including Clinton's vice presidential running mate Tim Kaine, also back it and expect it to gain momentum.

Trump has not given a position on the bill, but a senior policy adviser to Trump's campaign, Dan Kowalski, said he "supports all sources of American energy. This includes clean coal and research into new coal technologies."

"My sense is Clinton recognizes that, especially in certain parts of the country, coal-based energy and other fossil fuels provide some of the highest-paying jobs in our economy,” said Brad Crabtree, of the Great Plains Institute, a policy group that pushes for the deployment technologies to reduce fossil fuel emissions, and the parent organization of NEORI.

Oil drillers have used CCS since the 1970s, pumping carbon dioxide into aging reservoirs to force out remaining crude. Coal advocates want to expand CCS to coal-fueled power plants. But the business is expensive and needs incentives.

TRUMP'S PLEDGE, CLINTON'S PRAGMATISM

Trump's anti-regulation stance has made him a clear favorite of the industry, because it suggests lower costs and risks for major producers like Arch Coal Inc, Peabody Energy Corp, Cloud Peak Energy Inc and Alpha Natural Resources Inc.

The sector has given about $223,000 in support of Trump, compared with none for Clinton, according to a Reuters analysis of contributions over $200 made by several of the biggest coal companies and their employees.

Coal faces a potentially starker future under Clinton. She has promised to build on Democratic President Barack Obama's disputed Clean Power Plan to curb carbon output and suffered political damage earlier this year when she said that by doing so "we're going to put a lot of coal miners and coal companies out of business."

Those jobs are already quickly evaporating.

The industry now employs only about 65,000 miners across states like West Virginia, Pennsylvania, Kentucky and Wyoming, down from around 91,000 in 2011, according to the most recent statistics from the U.S. Department of Energy. The country's top two biggest coal companies, Arch and Peabody Energy, this year filed for bankruptcy.

Neither Trump scrapping federal regulations nor the expanded use of CCS will likely restore the sector, where production last year dropped to the lowest level since 1986, to its previous heights. Coal <NYM/QL> faces a dual headwind of both a global push for cleaner energy such as wind and solar power, and drilling technology that has made its competitor natural gas abundant - and cheap.

Jeff Holmstead, a Republican lobbyist at Bracewell Law, said if Clinton wins, much of coal's fate in coming years could be determined in the first 30 to 60 days. By then it should be known whether she appoints staunch environmentalists at departments including the Environmental Protection Agency and the Department of the Interior.

But he is confident that Clinton would work with industry on CCS and allow "coal to play a role in the future in the U.S. power sector."

Elizabeth Gore, a Democrat who lobbies with Brownstein, Hyatt, Farber and Schreck for a coal-burning cooperative said coal companies must "find the marginal changes they can make to buy themselves some time, to provide more of a soft landing."

(Reporting by Timothy Gardner; Additional reporting by Grant Smith, Valerie Volcovici and Emily Stephenson; Editing by Richard Valdmanis and Lisa Shumaker)

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Industries stepping up responses to Paris accord www3.nhk.or.jp

Japanese industries are trying to respond to the Paris agreement on climate change by developing cutting-edge technologies to reduce greenhouse gases.
 
Steelmaking accounts for about 40 percent of emissions in the industrial sector.
 
Major steelmakers jointly started work on developing a new technology in June that injects hydrogen into high-temperature blast furnaces to react with oxygen in iron ore. Researchers say the goal is to cut emissions by 30 percent.
 
A senior official at Nippon Steel & Sumitomo Metal says steelmakers as major emitters must make all-out efforts to cut CO2.
 
Automakers are also focusing on environmental technologies.
 
A senior official at Fuji Heavy Industries says the firm will place emphasis on plug-in hybrids and electric vehicles.
 
Japan's largest business group, Keidanren, is calling on firms to promote green technologies abroad and lead efforts to stem global warming.
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Oil firms suffer revenue dip www.chinadaily.com.cn

Lower prices and weak demand take toll on global energy producers
 
China's oil and gas giants saw their revenues slump in the July-September period, according to their financial reports, against the backdrop of a suppressed global oil and gas market and lower domestic natural gas prices.
 
The third-quarter reports of China's big three oil firms-China National Petroleum Corp, China National Offshore Oil Corp and China Petrochemical Corp-showed that CNPC's revenue fell by 3.8 percent to 411.4 billion yuan ($60.97 billion), CNOOC by 15.2 percent to 30.75 billion yuan, and Sinopec by 3.1 percent to 472 billion yuan.
 
The drop in revenues for the big three is a direct result of plummeting international oil prices, as well as weak economic growth. So, the glory days of high oil prices have long gone and the downtrend will continue, said analysts.
 
Wang Lu, an Asia-Pacific oil and gas analyst from Bloomberg Intelligence, said cheap oil and lowered gas prices are the major reasons behind the revenue declines of PetroChina, Sinopec and CNOOC.
 
Oil firms have shut down high cost wells, reduced infill drilling and renegotiated contracts to cut costs, said Wang.
 
According to Dong Xiucheng, a professor at the China University of Petroleum in Beijing, while oil companies are struggling when prices are falling, it is an opportunity for them to restructure and reduce costs.
 
Deteriorating business in oil exploration is not all bad, Sinopec has taken advantage of falling oil prices to lower its production costs for the downstream refining business.
 
It reported a sixfold third-quarter profit rise as refining gains helped overcome deepening losses from oil and gas production, while CNOOC and CNPC witnessed declining profits during the past three months.
 
According to Wang, Sinopec's gains in refining, chemicals and marketing more than offset its exploration and production losses. CNOOC is a pure upstream company, so its earnings are most exposed to low oil prices among the three oil majors.
 
PetroChina's refining, marketing and chemical segments are weaker and smaller than Sinopec's, while its exploration and production unit is bigger than Sinopec's. That's why PetroChina had an earnings decline despite improvements in the downstream sector, she said.
 
The State-owned companies are not alone among international peers struggling with plummeting oil and gas prices. Exxon Mobil Corp has recently extended its longest streak of profit declines, while France's Total SA also posted a 25 percent drop in third-quarter profit.
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Alibaba sales and earnings buck the economic trend www.chinadaily.com.cn

Company's fledgling cloud computing unit is star performer
 
Alibaba Group Holding Ltd showed once again that a slowing Chinese economy isn't holding it back.
 
The country's largest operator of internet shopping malls posted sales and earnings that beat analyst estimates as revenue easily outstripped economic growth.
 
Moreover, Alibaba's fledgling cloud computing business more than doubled sales and almost broke even, a significant feat for a capital-intensive business.
 
The results come about a week before Katy Perry kicks off Alibaba's annual Singles Day event (Nov 11), the world's biggest 24-hour shopping promotion and a closely watched barometer of Chinese consumer demand. Alibaba continues to capture a greater share of digital advertising as users shift to mobile devices and marketers spend more money online to reach them.
 
"I don't know if anyone's doing better than Alibaba," said Gil Luria, an analyst at Wedbush Securities Inc, commenting on Chinese internet companies. "They were able to drive growth by expanding beyond e-commerce in mobile browsing, media, cloud and continued to increase their number of ads and the money they charge for it."
 
Revenue rose 55 percent to 34.3 billion yuan ($5.1 billion) in the quarter, surpassing the 33.9 billion-yuan expected by analysts. Alibaba's quarterly sales have now beaten estimates for five straight quarters and have missed only twice since its record IPO in 2014.
 
Shares of Alibaba rose as much as 2.7 percent in early trade on Wednesday. The stock has gained about 24 percent after a 22-percent dive in 2015, when the company grappled with the slowdown and lawsuits accusing it of being slow to remove counterfeits from its websites.
 
While core commerce revenue rose 41 percent to 28.5 billion yuan in the September quarter, the cloud unit was the star performer.
 
The division, which competes with Microsoft Corp and Amazon.com Inc, grew sales by 130 percent and narrowed its loss to 57 million yuan after more than doubling the number of paying customers to 651,000.
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Japan, Russia to boost economic cooperation www3.nhk.or.jp

Japan and Russia have agreed to select about 30 priority projects for economic cooperation.
 
Japan's trade and industry minister Hiroshige Seko and Russia's economic development minister Alexei Ulyukayev signed a joint statement in Moscow on Thursday.
 
They also agreed to pick model cities in Russia to promote urban development. Japan will teach Russian manufacturers ways to improve productivity.
 
The two sides agreed on joint petroleum and natural gas development, the introduction of wind power generation in Russia and to share technology to decommission the reactors at the crippled Fukushima Daiichi nuclear plant.
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Chinese conglomerate Dalian Wanda buys Dick Clark productions for $1bn www.theguardian.com

The Chinese conglomerate Dalian Wanda Group has finalized a $1bn deal to buy Dick Clark Productions, the company announced on Thursday.
 
Dalian Wanda, a real estate and entertainment corporation owned by a billionaire who has aggressively pursued US film companies in recent years, said it had acquired a 100% stake in Dick Clark production “marking Wanda’s entry into the television production industry”.
 
“Obtaining top television production rights brings about complementary and coordinated development for Wanda’s current focuses on the film, tourism, and sports industries,” the Chinese firm said in a statement.
 
The Wanda Group already owns AMC Theaters, which it bought in July for $650m, and the production company Legendary Entertainment, which it bought in January for $3.5bn.
 
Dick Clark Productions is the Chinese conglomerate’s first foray into television, according to the Wanda Group, which noted the firm’s ownership of the Golden Globes, the American Music Awards and the eponymous New Year’s countdown event. The company had fallen from its prominence in decades past, however, when Clark hosted variety shows, such as American Bandstand, to consistently strong ratings.
 
Industry sources told Variety magazine they were surprised by the deal, with two people calling the $1bn sale “nonsensical” and “unreal”.
 
The Chinese firm said the American company’s management “will remain in its entirety” and that Wanda “has signed a long-term operation target agreement with the management”.
 
In late September the Wanda Group’s chairman, Wang Jianlin, drew the attention of 16 members of Congress who questioned the actions of his company, which they said was a “state champion” of Beijing. In October, representatives asked the justice department to review the company’s potential ties to senior members of China’s communist party.
 
Wang has called himself an “angel” investor in struggling US entertainment companies, and said that his pursuit of American companies will help them profit in the huge Chinese market. He has also said that he hopes the group will control 20% of the world’s movie theater seats by 2020, up from the 13% it currently owns in China, the US and Europe, after recent purchases of Odeon and UCI Cinemas. Earlier this year the conglomerate opened a theme park to rival Disney’s new Shanghai attraction, calling its site Wanda World.
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Starbucks looks for China caffeine hit www.bbc.com

Starbucks boss Howard Schultz has said expansion in China will secure its future for "decades to come".
While Starbucks still makes most of its profit in the US, Mr Schultz said its Chinese stores were the most efficient and lucrative.
It comes as the world's largest coffee shop chain said it posted its "most profitable quarter - capping off the most profitable year".
Operating profit rose 16% to $4.2bn (£3.4bn) for the year.
Last month, Starbucks announced plans to more than double its stores in China to 5,000 by 2021.
In the fourth quarter, Starbucks' profit in China and Asia Pacific increased 48% to $192m, helped by the opening of nearly 100 new stores.
However, globally, sales at existing stores rose by only 4% in the quarter, which was lower than the 4.9% rise analysts had expected.
The company said a change in consumer behaviour was partly to blame for the slow down.
In what Mr Schultz described as a "seismic shift in consumer traffic", the popularity of online shopping was keeping people at home and away from main streets or malls.
In Europe, the Middle East and Africa, sales in fact dropped by 1% while in China and Asia Pacific, they were up by the same percentage point.
The company said it operates 25,085 stores in 75 countries worldwide with 690 new ones opened in the last quarter.
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