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

Events

Name organizer Where
Frontier's "Invest Mongolia Tokyo 2018" Frontier Securities Tokyo Japan
"Open to Export" ICC WTO International business award ICC WTO London

NEWS

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China tops US in numbers of billionaires www.bbc.com

China's annual rich list has indicated that, once again, the country has more dollar billionaires than the US, and the gap is widening.
Property magnate Wang Jianlin of Dalian Wanda tops the list of 594 billionaires in the country, ahead of 535 billionaires in the US.
Alibaba's Jack Ma was second, with his wealth having risen 41% from last year.
The annual list is compiled by Shanghai publishers Hurun and often compared to the Forbes list in the US.
The Hurun Report's rich list is one of the most closely-watched and accurate assessments of wealth in China. The annual report has been published for the past 18 years.
Earlier this year, the publisher released a separate, global list, showing that the number of billionaires in China outnumbered those in the US for the first time.
However, none of China's super-rich make it into the global top 20.
Global reach
At the top of the China rich list is Wang Jianlin, who sits on a personal fortune of $32.1bn (£26.4bn).
His company Dalian Wanda has made headlines throughout the year with a number of high profile forays into the US movie markets. It has taken over Legendary Pictures, as well as stepping into US and UK cinema chains and striking an alliance with Sony Pictures.
Alibaba's Jack Ma is a close second with $30.6bn, and Pony Ma of internet and online gaming giant Tencent comes third with $24.6bn.
The biggest increase came from Yao Zhengua of investment and real estate firm Baoneng Group, whose wealth jumped by 820% to $17.2bn, putting him in fourth position.
Hurun chairman Rupert Hoogewerf said Mr Yao's rise illustrated a shift in China's maturing economy.
"Yao's financial investment model represents the new wave of wealth creation in China," he explained. "The first money made in China 20 years ago came from trading, followed by manufacturing, real estate, IT, and today it is about using the capital markets for financial investments."
Robin Li and Melissa Ma of search engine Baidu have a fortune of $14.7bn, ranked eighth while founder of smartphone makers Xiaomi, Lei Jun, dropped out of the top 10 to number 14 as competition in China's smartphone market intensified.
Most of China's billionaires live in Beijing, followed by Shenzhen, Shanghai and Hangzhou.
Globally, the Forbes rich list is topped by Microsoft founder Bill Gates with $75bn, followed by Amancio Ortega of Zara and legendary investor Warren Buffett.
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Sony puts VR headset for PlayStation 4 on sale www3.nhk.or.jp

Sony has put a virtual reality headset on sale worldwide for its PlayStation 4 game consoles. It is expected to heat up the global race in 3D technology for computer games.
 
The PlayStation VR was released in 42 countries and territories, including Japan, the United States and China, on Thursday. The headset is designed to plug into the game consoles.
 
The maker also put on sale 26 virtual reality games. Some allow users to take under-sea walks, or talk with game characters.
 
In Tokyo, customers flocked to a Sony store to attend a launch event. Many had reserved the device, which is priced at about 430 dollars at the current exchange rate.
One customer in his 30s said the device will bring him a completely new experience and he cannot wait to go home and play.
 
Sony Interactive Entertainment executive Atsushi Morita said VR technology has unlimited potential, such as allowing people who are too busy to make trips to enjoy virtual travel. He said now is the time to expand the market through competition among many makers.
 
Sony hopes to use its global sales network for home video-game consoles to expand its share of the VR game market. US and Taiwanese makers are currently in the lead.
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China approves around $20 billion in urban rail projects www.reuters.com

China's state planner has approved urban rail plans costing 133.9 billion yuan ($20.08 billion) in the cities of Urumqi and Xiamen, according to statements published on the National Development and Reform Commission website.
 
The projects were a 33.8 billion yuan plan for 41.8 kilometers (26 miles) of subway lines in the northwestern city of Urumqi, as well as a 100.1 billion yuan scheme for 224 kilometres of lines in the coastal city of Xiamen.
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Vietnam, India and the Philippines are Asia's new VIP stock markets www.asia.nikkei.com

HO CHI MINH CITY -- Toshifumi Sugimoto, senior executive officer of Capital Asset Management, started the morning of Sept. 23 in Ho Chi Minh City with a hasty call to a trader in Japan. He put in a buy order for as many shares of major Vietnamese IT company FPT as possible, having just learned that its foreign-owned stake was up for sale.

Forty years after reunification, Vietnam has made an international name for itself as a manufacturing powerhouse. But the ownership ratios for many Vietnamese companies are still capped at 49%, so when those stakes go up for sale, competition to snap them up is fierce. In the case of FPT, Sugimoto said, an instant decision was crucial. He was proved right: All 2 million shares being offered were sold before noon.

Triple strength

Surging interest from investors is a common feature of Asia's VIP markets -- Vietnam, India and the Philippines -- which are drawing greater attention as global growth continues to disappoint.

Much of the excitement about India comes from the sheer size of its market. The country has a population of 1.3 billion, and demand-oriented businesses, such as medicine and smartphones, are thriving. Narayana Hrudayalaya, which made an initial public offering in January, offers affordable medical services. Using prefabricated hospitals and other cost-cutting measures, the company can provide heart operations at prices that are around half the average in India. The company's share price has risen 30% since its IPO.

The Philippines, meanwhile, is taking advantage of having English as one of its official languages to nurture the business process outsourcing industry. With the growth of the middle class, "domestic demand-based industries such as infrastructure development and retail are rapidly growing," said Micaela Abaquita, an analyst at securities company CLSA Philippines.

One of the beneficiaries is real estate developer SM Prime Holdings. Its Mall of Asia shopping complex, located some 6km from central Manila, covers 420,000 sq. meters, making it one of the largest malls in Asia. SM Prime's revenue in 2015 stood at 71.5 billion pesos ($1.48 billion), up 8% on the year. Investors are buying into the developer's growth potential, pushing up its share prices by 30% since the start of the year.

The benchmark stock index in Manila hit its all-time high in July, while the key indexes in the other two VIP countries matched their year-to-date highs in September. This robust performance stands in sharp contrast to Tokyo, where it has fallen more than 10% since the end of December.

A big draw for investors is the growing spending power of consumers in the VIP markets. With per capita gross domestic product in the three countries nearing the $3,000 threshold, more and more people are able to afford cars, home appliances and other big-ticket items. The Philippines and Vietnam, though well behind India in terms of population, each have nearly 100 million people. The middle classes in all three countries are expected to continue expanding for decades to come, with an nearly immeasurable impact on the economy.

Changes in government are also expected to give a boost to economic development. Philippine President Rodrigo Duterte, who took office in June, promises to invest more in infrastructure. Although he makes headlines mostly for his incendiary comments and controversial war on drugs, investors have high hopes that he will be able to carry out what he has promised, said Masato Horie at Mitsubishi UFJ Research & Consulting.

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China's trade remains stagnant www3.nhk.or.jp

The Chinese government has released trade figures for the country.

Customs officials say exports fell 10 percent in September from the same month last year, to 184.5 billion dollars. The figure was down for the 6th straight month.

Imports also shrank year-on-year for the first time in 2 months, by 1.9 percent, to 142.5 billion dollars.

Performance in both exports and imports was worse than predicted.

China's overall foreign trade totaled 327 billion dollars last month. That was 6.6 percent lower than the amount in September, 2015.

To bolster domestic demand, the Chinese government has been increasing construction of social infrastructure and supporting vehicle and housing sales.

But the latest data show that the world's second largest economy is still struggling with weak demand, both at home and abroad.

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IMF to send team here www.en.montsame.mn

Ulaanbaatar /MONTSAME/ The International Monetary Fund (IMF) sending a working group here on October 20, to assess the current state of economy.
 
A delegation headed by the Governor of the Bank of Mongolia took part in the annual meeting of IMF and the World Bank Group, held last week in Washington D.C.
 
The delegates have met the leaders of IMF and WB and discussed the economic difficulties facing Mongolia.
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IMF official says emerging markets crucial www.chinadaily.com.cn

The world will continue to rely heavily on developing nations, amid slowing momentum, to help keep the world economy growing, said Zhang Tao, a Chinese economic official who is the new deputy managing director of the International Monetary Fund.
 
"Looking into the future, emerging markets and developing countries will continue to contribute a great share of global growth," Zhang told reporters on Sunday evening.
 
Zhang was at his first yearly meetings of the IMF and World Bank in his new job. Zhang replaced Zhu Min, also a Chinese national, on Aug 22. The meetings were from Friday to Sunday in Washington, DC. Zhang is a vice-governor of the People's Bank of China and was IMF executive director for China from 2011 to 2015.
 
The IMF has forecast global growth to slow to 3.1 percent in 2016, below the April forecast of 3.2 percent. The 2017 forecast is 3.4 percent, below April's 3.5 percent figure.
 
Zhang called growth in Europe flat, while the United States forecast has been cut by 0.6 percentage point, a change he said that has not surprised the market.
 
He says he thinks that Brexit and some issues debated during the 2016 US presidential election have discouraged investors, while many developed countries also face declining productivity and aging populations.
 
Zhang described the debate in some developed countries about income inequality and its relationship with globalization as going beyond the economics.
 
Still, the world's second-largest economy, China has been a major engine for the global economy before and after the 2008 financial crisis.
 
According to the latest World Economic Outlook report released last week, financial market sentiment toward emerging market economies has improved.
 
But prospects differ sharply across countries and regions, with emerging Asia in general and India in particular showing robust growth and sub-Saharan Africa experiencing a sharp slowdown.
 
In advanced economies, a subdued outlook subject to sizable uncertainty and downside risks may fuel further political discontent, with anti-integration policy platforms gaining more traction, according to the report.
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Pimco took part in Deutsche Bank bond offerings: source www.reuters.com

Pacific Investment Management Co, which oversees more than $1.5 trillion in assets under management, took part in Tuesday's $1.5 billion Deutsche Bank AG (DBKGn.DE) bond offering as well as a $3 billion bond deal on Friday, a source familiar with the matter told Reuters on Wednesday.
 
Pimco, a unit of financial services provider Allianz SE (ALVG.DE) and one of the largest asset managers in the world, was said to be a major investor in both bond offerings, the source added. A spokeswoman for Pimco declined to comment.
 
Deutsche's bond spreads have been under pressure since September, when the U.S. Department of Justice asked the bank to pay $14 billion to settle an investigation into its selling of mortgage-bond securities.
 
But after raising $4.5 billion over two days, both times investor-initiated, the bank instilled some confidence that it is making progress in putting some problems behind it.
 
Deutsche paid a new-issue concession of around 50 basis points on Friday's deal, which was a chunky premium compared with its outstanding bonds.
 
But it was broadly in line with where its paper was trading after the sell-off occasioned by the Justice Department request.
 
Tuesday's self-led tap of its 4.25 percent October 2021s priced at 100.263 and a spread of 290 basis points over Treasuries for a yield of 4.191 percent, offering investors a premium of around 25 basis points.
 
The bond that priced Friday, which was sold to a limited number of investors, had rallied up to 40 basis points in secondary markets after clearing at 300 basis points over Treasuries.
 
Many of the same investors bought in again on Tuesday. Friday's deal was the first Deutsche Bank had sold in the U.S. dollar market in five months.
 
David Schawel, who runs opportunistic income strategy at New River Investments, said Pimco's involvement makes sense. "It's accretive to yield and their exposure is likely not big enough across portfolios to make a dent if it goes bad," Schawel said.
 
IFR, a unit of Thomson Reuters Corp (TRI.TO), first reported on both Deutsche Bank bond offerings.
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Deutsche Bank to pay $9.5 mil. penalty www3.nhk.or.jp

US regulators say Germany's leading lender has agreed to pay a fine of 9.5 million dollars. They say Deutsche Bank failed to properly safeguard non-public information generated by its analysts.

The officials at the Securities and Exchange Commission say the bank encouraged its equity research analysts to disclose unpublished reports to certain customers.

The commission has also accused the bank of issuing a report that is inconsistent with the opinions of the analysts who prepared it.

The SEC officials point out that information generated by research analysts, including ratings and estimates, has the power to move markets.

The commission says broker-dealers must enforce policies to prevent the abuse of such information.

The bank may face another huge penalty over the allegedly illegal sales of mortgage-backed securities before the financial crisis. The US Justice Department is investigating those allegations.

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National Grid: two coal plants to get £77m to be on winter standby www.theguardian.com

Two coal power plants will be paid a combined £77m to be on standby this winter as part of National Grid’s plan to minimise the risk of electricity blackouts.
 
The size of the UK’s capacity margin – the buffer zone between available power supply and predicted peak demand – will be revealed on Friday when National Grid publishes its winter outlook.
 
The margin is understood to be higher than the 5.5% predicted by National Grid earlier this year. That was itself an improvement on last year’s “tight but manageable” 5.1%.
 
The improved position has been achieved partly by paying around £144m for tools that can be used in case of unexpected events, such as a shutdown at a major power plant.
 
The largest of these tools is the supplemental balancing reserve (SBR), under which power plants are paid to be on standby for four months, ready to start up if needed.
 
Of the eight firms to win SBR contracts, the largest is the Eggborough coal power plant in North Yorkshire, which has agreed to provide up to 681MW of power.
 
Calculations by the climate campaign group Sandbag, and confirmed by separate industry sources, suggest Eggborough will be paid £60m to be on standby. The sum is the equivalent of more than 10% of the plant’s revenue during its last 18-month reporting period.
 
A coal plant owned by the power firm SSE at Fiddler’s Ferry in Cheshire is understood to have been paid £17m for the same service, making 422MW available.
 
Both plants will earn more if they are told to move to “hot standby”, an advanced state of readiness, and they will also be paid during startup and if they are asked to generate power. They will earn £3,908 and £3,000 an hour respectively to be on hot standby and £11,513 and £3,000 an hour while starting up. They will be paid for any energy they generate at guaranteed prices well above the average wholesale price.
 
The Sandbag energy analyst Dave Jones pointed out that coal power plants also stand to make millions from other subsidies and price spikes when energy demand is high.
 
“Many coal power plants are on for a bumper 2016,” he said. “The transition to phase out coal is happening quickly, but National Grid, Ofgem and the government must make sure the transition is not more expensive than it needs to be.”
 
National Grid is estimated to have spent £122m on SBR contracts this year, up from £33.9m last winter, to ensure that 3.6GW of capacity can be activated if needed. Peak demand is forecast to be 52.7GW this winter, while 54.7GW of capacity is available to draw on.
 
The extra spending is partly down to the closure of other coal plants as the UK aims to phase out the heavily polluting energy source by 2025.
 
The SBR is among several measures designed to minimise the risk of blackouts. National Grid is also paying for demand-side response, under which businesses are paid to use less energy, or change the time that they use it, if there is high demand.
 
The measures have cost £144m this year, or £1.80 on the average household bill, according to an estimate by the Energy & Climate Intelligence Unit.
 
The measures are designed to avoid blackouts in the event of a perfect storm of problems, such as multiple power plant failures during the high-demand afternoon period on a cold, windless day.
 
This winter is the last in which the emergency toolkit will be used. From next winter the new capacity market auction, one of several electricity market reforms and under which firms bid to provide power to National Grid, is expected to ease the constraint on capacity margins.
 
But the government is facing calls to make it easier for demand-side response to be used, rather than simply ratcheting up the amount of energy being produced by power plants.
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