JD to invest $150m in green technology www.chinadaily.com.cn

JD Logistics, the logistics arm of the country's second-largest e-commerce player JD.com Inc, announced decision to invest 1 billion yuan ($151 million) to establish a green fund, in a bid to promote the use of sustainable, greener packaging materials throughout the supply chain.

Russia signs deal to build Egypt's first nuclear power plant www.rt.com

Moscow and Cairo have signed an agreement to construct Egypt’s first nuclear plant. The project will cost $21 billion and is due to be finished by 2028-2029.

The preliminary agreement between the countries was signed in 2015. A loan from Russia would cover 85 percent of the construction costs, and Russia's Rosatom would service the plant’s four reactors for 60 years, company chairman Aleksey Likhachyov said on Monday.

Asia shares take breather, Brent breaks above $65 www.reuters.com

SYDNEY (Reuters) - Asian shares took a breather on Tuesday after three straight sessions of gains, with markets consolidating in the hope an upswing in global growth could outlast a likely hike in U.S. borrowing costs this week.

A pedestrian stands to look at an electronic board showing the stock market indices of various countries outside a brokerage in Tokyo, Japan, February 26, 2016. REUTERS/Yuya Shino
The latest promising news came from China where banks doled out a surprisingly generous dose of credit in November, which could bode well for a pick up in retail sales and industrial output due later in the week.

MSCI’s broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS dithered either side of flat having bounced 2 percent in the past three sessions.

Moves were minor across the region, with blue chip Chinese shares off 0.2 percent .CSI300 and Australia up 0.1 percent . Japan's Nikkei .N225 was likewise steady, after the index scored its highest close in 25 years on Monday. [.T]

There was no lasting market impact from an explosion in New York’s busy Port Authority commuter hub which New York Mayor Bill de Blasio described as an “attempted terrorist attack.”

Investors continued their policy vigil with the Federal Reserve set to end its two-day meeting on Wednesday, while the European Central Bank meets on Thursday.

JPMorgan Economist David Hensley suspects the Fed will revise up its growth forecast while trimming the outlook for the unemployment rate, potentially adding upside risk to the “dot plot” forecasts on interest rates.

“The dot plot previously called for three hikes in 2018; it is a close call whether this moves to four hikes,” he warned, a shift that would likely boost the dollar but could bludgeon bonds.

“For its part, the European Central Bank (ECB)is likely to emphasize its low-for-long stance and continue to distance itself from the Fed,” he added. “The staff is likely to revise up its 2018 growth forecast, while we think the core inflation forecast will reveal an even slower recovery than before.”

RATES NOT EVERYTHING

The divergence in Fed and ECB policy was supposed to be bullish for the dollar, given it had widened the premium offered by U.S. two-year yields US2YT=RR over German yields DE2YT=RR to 256 basis points from 188 basis points this time last year.

The last time the spread was that plump was in 1999.

China Securities Index Co Ltd
4067.0862
.CSI300CHINA SECURITIES INDEX CO LTD
-2.41(-0.06%)
.CSI300
.CSI300.N225AAPL.O
Yet the euro is currently up 12 percent on the dollar this year, while the dollar is down 8 percent on a basket of currencies .DXY - an indication interest rate differentials aren’t everything in forex.

On Tuesday, the euro was steady at $1.1768 EUR= having failed to clear resistance around $1.1812 overnight. The dollar was idling at 113.48 yen JPY=, just off a one-month top of 113.69.

Dealers at Citi noted interbank volumes in the forex market had been 35 percent below average overnight and another thin session was likely on Tuesday.

There was a little more action in bitcoin, which was last at $16,350 on the Bitstamp exchange BTC=BTSP while its newly minted futures contract <0#XBT:> fell back to $17,800.

In commodity markets, gold remained out of favor at $1,243.90 an ounce XAU= having suffered its biggest weekly drop since May last week.

Oil prices pushed ahead in the wake of news of a temporary shutdown of a pipeline that carries the biggest volume of the five North Sea crude oil streams. [O/R]

Brent crude futures LCOc1 rose another 38 cents to $65.07 a barrel, after jumping $1.35 on Monday. U.S. crude futures CLc1 added 26 cents to $58.25 a barrel.

1,200 North Korean workers to leave Mongolia as South Korea calls for increased sanctions www.theubpost.mn

More than 1,190 North Korean citizens working in Mongolia will not be allowed for renewal of their contracts in accordance to the UN Security Council’s crackdown on the reclusive state’s exported workforce.

Transport Minister attends Transport Week 2017 www.mongolia.gogo.mn

Minister of Road and Transportation Development J. Bat-Erdene attended Transport Week 2017, an annual international industry event, at the invitation of Russian Transport Minister Maksim Sokolov. Transport Week was held in Moscow, Russia, from December 2 to 8.

Minister J. Bat-Erdene met with Minister Sokolov and Russian Railways President Oleg Belozerov to discuss strengthening the capacity of Ulaanbaatar Railway JSC and introducing technical upgrades.
The sides also exchanged views on implementing the railway project for the Russia-Mongolia-China economic corridor. Minister J. Bat-Erdene noted that Mongolia is eager to participate in regional logistics by cooperating with Russia and China.

Apple 'to buy Shazam for $400m' www.bbc.com

Apple is close to buying the music recognition app Shazam for about $400m (£300m), media reports say.

Shazam, a UK company founded in 1999, allows people to use their smartphone or computer to identify and buy music through a snippet of sound.
Shazam, which says it has more than 100 million monthly users, makes most of its revenue from commissions paid on referrals to Apple's iTunes Store.
Neither Apple nor Shazam have commented on the reports on the TechCrunch site.
If the deal is confirmed, Shazam will become the latest in a string of UK technology firms to be bought up by larger businesses.
The influential Music Business Worldwide site points out that the reported price is significantly lower than the $1bn valuation placed on Shazam during its last funding round in 2015.
By acquiring Shazam, Apple would basically cut out the middleman and save money on commissions.
It would also hurt the competition, since Shazam would no longer be referring people to rivals Spotify and Google Play Music.
The deal would also help the Apple Music service gain ground on Spotify, by making it easier for users to find songs and add them to playlists.
At present, Spotify has 60 million users worldwide, while Apple Music has just 27 million.

Papers on Harumafuji sent to prosecutors www3.nhk.or.jp

Japanese police have sent papers to prosecutors on former sumo grand champion Harumafuji for assaulting and injuring a rank-and-file wrestler.

Mongolian memory team triumphs at World Memory Championship www.theubpost.mn

The Mongolian memory team claimed 57 medals out of 90 available at the 26th World Memory Championships, which took place in Jakarta, Indonesia from December 1 to 3.

Training of policy makers from Bhutan, Mongolia and Nepal www.web.unep.org

From 11 to 15 December 2017, policy makers from Bhutan, Mongolia and Nepal will join the International Environmental Technology Centre (IETC) team in Bangkok, Thailand, for a five-day training on how to achieve long-term reductions of greenhouse gas emissions and short-lived climate pollutants from the waste sector.

Russia-China real gold standard means end of US dollar dominance www.rt.com

The BRICS counties are considering starting an internal gold trading platform, according to Russian officials. When this happens, the global economy will be significantly reshaped, and the West will lose its dominance, predicts a precious metals expert.

In 2016, 24,338 tons of physical gold were traded, which was 43 percent more than in 2015, according to Claudio Grass, of Precious Metal Advisory Switzerland.

“We have to put the BRICS initiative into a broader context. It is just part of a geopolitical tectonic shift which started decades ago. We have seen a constant outflow of physical gold from the West to the East. At the same time, the West has lost the economic war, and as a consequence, the focus now turns to the financial system. China dominates the world economy and has displaced the US as the world’s most formidable economic powerhouse,” he told RT.

The creation of a new gold standard by BRICS is also a step to end the US dollar’s domination of the global economy

“As Bejing and Moscow understand that America used the dollar to control the world, by implementing a new kind of ‘Gold standard 2.0’ they want to distance themselves from this control. Furthermore, the vast majority of the people in Asia sees gold as superior, or ‘real’ money, something the West has forgotten, because of all the paper wealth (credit) they have accumulated,” said Grass.

The expert notes the BRICS countries account for 40 percent of the world’s population and around 23 percent of the world’s domestic product.

"In combination with the announcement of pricing oil in yuan, using a gold-backed futures contract in Shanghai, the establishment of the Asian Infrastructure Investment Bank and the New Development Bank, China is setting up an alternative to the post-Bretton Woods establishment. This is certainly a game changer,” said Grass.

The level of trust between BRICS countries can help them establish intragroup gold trading, which would be 100 percent physically backed.

“This will present a viable challenger that could over time lead to a break up of the current system since the West will likely still trade paper gold in the meantime,” Grass said.

According to London gold clearing statistics for 2016, the total trading volume in the London Over-the-Counter (OTC) gold market is estimated at the equivalent of 1.5 million tons of gold. The volume of 100oz gold futures on New York's COMEX reached 57.5 million contracts during 2016 or 179,000 tonnes of gold, the analyst notes.

The amount of mined gold is much smaller

“If we now take into consideration that only approximately 180,000 tons of gold have actually been mined up to today the scam is just gigantic and obviously unsustainable. The paper scams in London and New York will either blow up when the paper price of gold drops to zero or when just a fraction of investors insists upon receiving physical gold in return,” Grass said.

The expert believes that with paper gold trading, the established gold exchanges could cease to exist sooner or later.

“They will likely become obsolete and lose their importance over time. Although one cannot predict exactly how fast this will happen, the trend is clear: OTC and COMEX are working toward their own destruction,” he said.

“It will definitely lead to higher prices for physical gold. Imagine if you could buy on COMEX and OTC gold at a much lower price and still have the option to sell it in Asia for a much higher price; this would kill the old paper scams immediately. Therefore, I would guess that both could come up with new restrictions that only cash settlements will be allowed to avoid this. We know for example that even today 99.96 percent of COMEX gold futures are settled in cash,” Grass wrote.

The final battle: Gold vs. US dollar

The analyst recollected the Heartland Theory of Halford Mackinder, a British geostrategist at the beginning of the 20th century who influenced the likes of Kissinger and Brzezinski. Following the theory, we will soon face a war between physical gold and the US dollar.

“As per my understanding, we are moving into the final phase, the battle between currencies – one that will be backed by a hard asset which was real money since time immemorial until 1971 and the other one, backed by promises that future generations will pay through debt, inflation and ever-rising taxation,” he said.