Doctors Without Borders provides free dental checkups in Mongolia www.xinhuanet.com

ULAN BATOR, July 30 (Xinhua) -- International medical charity Doctors Without Borders provided free dental checkups and treatment for about 8,500 people in northern Selenge Province in Mongolia, a member of parliament said Monday.

Turkey rejects 'kidnap' attempt on teacher in Mongolia www.afp.com

Turkey on Monday rejected claims it tried to kidnap a teacher from Mongolia with links to the head of an outlawed movement Ankara accuses of fomenting a botched 2016 coup attempt.

Top-20 index decreases by 2.65 percent www.montsame.mn

Ulaanbaatar/MONTSAME/ During the week spanning July 23 to July 27, 2018, MNT1,036,318,735.12 worth of securities were traded through 5 trading sessions on the MSE. The daily average MNT volume was MNT207.2 million.
Last week, a total of 40 companies’ 6,513,364 shares worth MNT 794,069,135.12 were traded.
In Government securities secondary market trading, 2,320 Government securities worth MNT 242,249,600 were traded.
As of July 27, 2018, total market capitalization of MSE is MNT 2,361,516,976,987.77. The TOP-20 index decreased by 2.65 percent to stand at 19345.19 units.

Erdenes Tavan Tolgoi JSC gains net profit of MNT373.3 billion www.montsame.mn

Ulaanbaatar/MONTSAME/ On July 30, B.Gankhuyag, CEO of ‘Erdenes-Tavan Tolgoi’ JSC, introduced a 2018 half-year report of the company.

In the beginning of his report, B.Gankhuyag, CEO of Erdenes Tavan Tolgoi JSC remarked, “Since our company established in 2010, we encountered a number of socio-economic and financial complications and coal price downs, which led us to be incapable to pay wages. Sometime, we even stopped mining operations, due to politicians’ decision. Today, we have overcome such difficulties. In other words, we will have financial opportunities and great future. The statistics indicates how the company is fulfilling its duty sufficiently before three million people of Mongolia, the shareholders of the company”.

ETT’s half-year report shows positive indications. According to first half of the year, the company exported 6.9 million tons of coal, earning MNT 953 billion that stands at 78 percent of the total planned revenue in 2018. The company paid MNT216.5 billion to the state budget as duty and fee. By doing so, the company has earned the net profit worth MNT373.3 billion.

As the ETT’s financial condition has improved, it has now been solvent to fund some of its projects with its own money. In addition, the company has created a fundamental economic condition to put 1072 shares of every shareholder into economic circulation, highlighted the company authorities.

The profit of the company is based on the coal price. The company held talks with Chalco Trading Hong Kong Co Limited. As a result, the both sides reached an agreement to raise the coal price to USD61 per ton and set it as the fundamental price. It ensures the company to keep distributing the coal at USD61 per ton, even if the coal price in the world market goes down. In case coal price goes above USD61, the company will raise the price in accordance with the world market price. Moreover, the supply price for coal being excavated at Western Tsankhi and other blocks is set by an open tender. This year, it has been set at USD70 per ton, which means price of coal being supplied except Chalco Trading Hong Kong Co Limited is USD70 and it led to net profit increase of the company.

Alongside the economic indicators, there has been improvement in social issues of employees. For instance, a basic salary of workers was raised by 21 percent, night work pay was increased by five-fold as well as labor safety incentive has been reached 15 percent.

As a preparation to make IPO at world capital market, the company started taking actions to collaborate with stock exchanges and financial and legal consultants and have its auditing done by international accredited organization.

Concluding the report, B.Gankhuyag said, “Our company has a total of 2,511,000 shareholders—Mongolian citizens. However, just 300 thousand people have their registration account opened and about 600 thousand have not authenticated their rights to own the shares. Therefore, we are working to intensify this issue.“

M.Unurzul

President Kh.Battulga supports Third Neighbor Trade Act www.president.mn

Ulaanbaatar /MONTSAME/ President Kh.Battulga expresses full support and gratitude to the sponsors of the bipartisan H.R.6636, the Mongolia Third Neighbor Trade Act, which was introduced for consideration in the U.S. House of Representatives. Rep. Ted Yoho (R-FL-3), Rep. Dina Titus (D-NV-1), Rep. Don Young (R-AK-At Large), Rep. Mark Meadows (R-NC-11), Rep. Brian K. Fitzpatrick (R-PA-8), Rep. Elise M. Stefanik (R-NY-21), Rep. Jared Polis (D-CO-2), Rep. David E. Price (D-NC-4), Rep. William R. Keating (D-MA-9), and Rep. Dwight Evans D-PA-2) represent a broad political spectrum of support for Mongolia. Hopefully, the House and Senate will vote and approve this legislation.

Mongolia has consistently adhered to the principles of equality and mutual respect of interests in its foreign policy. This legislative bill is an important milestone to further strengthen Mongolia-U.S. alliance and demonstrates our bilateral cooperation that strengthens the economic security and democracy of Mongolia.

Last year, Mongolia celebrated 30 years of diplomatic relations with the United States. Our land is bordered by Russia and China, yet Mongolia refers to the United States as its ‘third neighbor’.

Total Mongolia-U.S. trade in 2012 measured a record USD 707 million, but in 2017 Mongolia exported only USD 9.4 million, while importing just USD 82.2 million in goods from the United States. There is much room for growth for both U.S. imports and Mongolian exports.

Mongolia has supported the U.S. efforts in Iraq and Afghanistan since 2003. This underlines our deep commitment to democracy, rule of law, human rights, and a robust free market economy.

Cashmere, fine wool obtained from cashmere goats, industry is essential to Mongolia’s economy. Over a third of the population of Mongolia works in the animal husbandry sector, and cashmere provides income and employment for the majority of these people. Agricultural products are Mongolia’s second largest export after the mining sector, and cashmere products constitute the biggest share in the agricultural exports.

In 2017, only 1,100 tons out of total of 9,400 tons raw cashmere, which is almost 50 percent of world cashmere, is processed within the country while the rest of 8,300 tons is exported mainly to China in raw without adding value. The United States buys nearly all of its cashmere products from China. Duty free treatment of Mongolian cashmere and other textile garments exports to the United States would facilitate increased trade with the U.S. and reduced Mongolian export dependence on one country and single sector of mining. This would allow Mongolia to diversify its trade and ensure its sustainable economic growth.

The development of Mongolia’s garment industry would also promote women’s employment and empowerment. Women have historically participated in Mongolia’s garment industry at high rates, and the garment industry has historically provided safe and stable employment for women in Mongolia.

Mongolia's Tavan Tolgoi coal mine sees profits surge in H1, raising IPO prospects www.reuters.com

ULAANBAATAR, July 30 (Reuters) - Revenue from Mongolia’s giant Tavan Tolgoi coal mine surged in the first half of the year due to higher commodity prices and a big jump in coal exports, the project’s owner said on Monday, raising prospects for a planned overseas listing.

Lotte Considers Selling China Malls Amid Anti-Korean Sentiment www.bloomberg.com

Lotte Group, reeling from a wave of anti-Korean sentiment in China for more than a year, is considering selling some of its department stores in the country, a move that would accelerate the conglomerate’s withdrawal from the world’s second-largest economy.

'Happy with tariffs': Steel industry emerges as trade war winner www.cnn.com

1. Blockbuster profits: The trade war has cast a shadow over parts of Corporate America, but it is bringing a bit of good fortune to the steel industry.
President Donald Trump's metal tariffs have sent steel prices surging and sparked blockbuster profits for steel manufacturers.

Reliance Steel & Aluminum (RS) hauled in record sales, thanks to an 18% spike in prices. Nucor (NUE) recorded the best second quarter in its history. Its profit more than doubled.

"All in all, we're very happy with tariffs," Nucor CEO John Ferriola told analysts earlier this month.

Those words haven't been uttered by many other corporate bosses, who are grappling with sticker shock.

Tariffs levied by the United States and major trading partners are eating into the profits of Harley-Davidson (HOG), General Motors (GM), General Electric (GE), 3M (MMM) and hundreds of other companies. CEOs are scrambling to raise prices and reshuffle their supply chains.

Unsurprisingly, steel companies are feasting on a price spike from Trump's 25% steel tariff. The benchmark price of US-made steel has zoomed 41% higher since the start of the year to $917 per short ton, according to S&P Global Platts.

Tariffs aren't the only factor. Steel demand is strong in an economy that just clocked its fastest growth since 2014.

Following the booming profits from Nucor and Reliance, US Steel (X) and AK Steel are scheduled to report results this week.

Both steel makers are expected to reveal a jump in revenue, though not by as much as their rivals. That's because US Steel and AK Steel (AKS) are locked into annual contracts that have fixed pricing. Those contracts expire later this year, potentially allowing them to capitalize on the price hikes.

Nucor is seizing on the momentum to plow $1 billion back into its business, a huge increase that will mostly go toward expansion.

"What will happen to our great country if we continue to operate with a massive trade imbalance?" Ferriola asked. "We agree with the administration's efforts to address this issue."

Of course, steel customers are less than thrilled.

Material costs have risen by as much as 50% at FJM Ferro, a Brooklyn company that fabricates steel used in Manhattan skyscrapers.

Steel companies may have record profits, but it does hurt the mom-and-pop shops," said Joe Casucci, FJM Ferro's founder and CEO.

Even large companies are getting squeezed. GM slashed its profit outlook last week, warning of a $300 million jump in commodity costs linked to higher steel and aluminum costs.

"You have to be careful with tariffs because there's always a cost," said Philip Gibbs, a steel analyst at KeyBanc Capital Markets.

He pointed out that spiking US steel prices threaten to make American businesses less competitive. Some companies may eventually try to find other ways to get steel into the country.

"It feels good in the short run as prices go up," Gibbs said. "But then all the customers complain."

2. Jobs report: Economists are expecting another solid month of gains when the Labor Department reports Friday on job growth for July.

The US economy has cranked into high gear, growing at the fastest pace in almost four years, and unemployment is 4%, near the lowest in a half-century.

Economists surveyed by Thomson Reuters expect 195,000 jobs were created in July, roughly in line with the average for this year.

3. Fed watch: The Federal Reserve is not expected to raise interest rates when it meets on Tuesday and Wednesday. But investors will be watching the Fed's statement closely for its read on the economy and clues about interest rates.

The Fed has signaled that it plans two more rate hikes this year and three in 2019.

4. Critical moment: This may be the most closely watched earnings report in Tesla's history.

The electric car maker reports results on Wednesday. Tesla just hit an important target for production of the Model 3, its most accessibly priced car. But Tesla is trying to stop mounting losses, and Elon Musk keeps making headlines with bizarre tweets.

5. Apple earnings: Apple will release is quarterly results on Tuesday, and a strong report could push the most valuable company in America to a milestone — a $1 trillion market cap.

Analysts may question Apple executives on whether the trade war its hurting the bottom line. And Apple fans will be hunting for hints about the next iPhone.

6. Coming this week:

Monday — Caterpillar (CAT) earnings

Tuesday — Eurozone second-quarter GDP; Pfizer (PFE), Procter & Gamble (PG), Apple (AAPL) earnings

Wednesday — Fed statement; Humana (HUM), Sprint (S), Tesla (TSLA) earnings

Thursday — Bank of England meets; Berkshire Hathaway (BRKA), Yum Brands (YUM), Aetna (AET) earnings

Friday — US jobs report; Kraft Heinz (KHC), Toyota (TM) earnings

CNNMoney (New York)
First published July 29, 2018: 7:18 AM ET

Civil servant salaries to be raised in Q4'18 www.gogo.mn

An International Monetary Fund (IMF) delegation is working in Mongolia to conduct a 5th review of Mongolia’s extended fund facility (EFF) program. Cabinet and the IMF staff reached an initial agreement to raise salaries for civil servants in the fourth quarter of 2018. On July 26, Minister of Labor and Social Welfare S.Chinzorig reported that negotiations will continue on salary increases.

More than 20,000 households to take part in the Refined Fuel Project www.gogo.mn

Cabinet issued a decree to completely ban the use of raw coal in Ulaanbaatar, starting in May 2019. State authorities, including the Ministry of Nature, Environment and Tourism and the Ministry of Energy, have been conducting research regarding future demand for refined fuel and supply levels, along with price stabilization. This September, the state plans to conduct a test run of the Refined Fuel Project with participation from more than 20,000 households residing in highly-polluted areas.