S.Amarsaikhan elected Chairman of Citizens' Representative meeting www.montsame.mn

Ulaanbaatar /MONTSAME/ The Citizens’ Representative Khural (Council) of Ulaanbaatar elected Amarsaikhan Sainbuyan as the chairman of the Council during its regular meeting on October 9.

BOM issues 1-week bills www.montsame.mn

Ulaanbaatar /MONTSAME/ The Bank of Mongolia traded 680 billion MNT worth 1-week maturity central bank bill (“CBB”), with weighted average yield of 12.0 percent per annum. 

PM U.Khuresukh receives congratulatory letters from his Russian and Chinese counterparts www.montsame.mn

Ulaanbaatar /MONTSAME/ Prime Minister of Russia Dmitry Medvedev and Prime Minister of China Li Keqiang sent congratulatory letters to U.Khurelsukh on assuming his duty of Prime Minister of Mongolia.

MBD business program in London UK (Nov 28-Dec 03 2017) www.mongolianbusinessdatabase.com

Mongolian Business Database MBD (www.mongolianbusinessdatabase.com) is registering the business participants to Mongolian-British Chamber of Commerce and Industry's "Doing Business with Mongolia" seminar in London on Nov 30 and business program which includes the visiting to AI Tech World Expo, World Communication Expo and British House of Parliament etc.

E-car segment revs up to push throttle full forward www.chinadaily.com.cn

Potential end to sales of gasoline cars in China could benefit makers of electric cars, and suppliers of spare parts and power management solutions in the long run, analysts said.

In fact, ever since talk started about a gradual shift to e-vehicles, shares in e-car companies fluctuated significantly.

Policymakers have been hinting at a possible timeframe soon for phasing out cars that use gasoline as fuel from the China market.

For instance, Xin Guobin, deputy head of the Ministry of Industry and Information Technology, said at a news conference in early September that authorities are studying a timetable for stopping sales of gasoline cars in China.

At another conference on power and battery development, Xin said that the development of high-efficiency special batteries is key to the development of e-vehicles in China.

Wang Chuanfu, president of BYD, China's largest e-car maker, said in a recent interview that he estimated sales of gasoline cars will likely end in 2030.

According to Wind Information Technology, a market information provider, investors may have traded in shares of e-vehicle makers to the tune of 2 billion yuan ($301.6 million) to 5 billion yuan in the last two weeks of September, in the run-up to the week-long National Holiday.

Shares in e-car market leaders and battery suppliers outperformed other auto industry labels. For instance, shares in Shenzhen-listed BYD, rose almost 44 percent from 48.29 yuan on Sept 1 to 69.51 yuan on Sept 27.

According to a report by China International Capital Corporation Limited or CICC, large-scale production of e-vehicles and a bigger market share in the overall mobility market are inevitable in the next few years.

"Ending sales of gasoline cars is a global trend, and China is not going to fall behind," the report said.

Norway and the Netherlands have announced they will end sales of gasoline cars in 2025. Germany and India will do so in 2030, and the UK and France in 2040.

Sales revenue of e-vehicles in China has been growing fast. Policymakers are setting ambitious goals for further expanding the market share of such vehicles in the entire mobility sector.

In 2016, e-vehicles accounted for some 1.8 percent of all vehicles in China. A plan set by MIIT said their market share shall be increased to 5 percent in 2020 and 20 percent in 2025.

Sales volume of e-vehicles is estimated to climb from 507,000 units in 2016 to 2 million in 2020 and further grow to 5 million in 2025.

Policies will encourage purchase and use of e-vehicles in China. For example, buyers would be offered free car plates in megacities. In contrast, gasoline car owners may need to pay more than 80,000 yuan for a plate at auctions in Shanghai.

Such incentives will likely further help increase market share of e-vehicles, said a bluepaper on the China market by Fitch Ratings.

In the longer term, however, development of e-vehicles in China depends on battery technology improvements and infrastructure like charging networks, said the paper.

Russia, Saudi Arabia earned $40bn each from OPEC output-cutting deal – state investment fund head www.rt.com

Russia and Saudi Arabia have each earned $40 billion from the 2016 deal between OPEC and non-OPEC countries to cut oil output, said Kirill Dmitriev, CEO of the Russian Direct Investment Fund.

International efforts to stabilize oil prices “have been fruitful, bringing oil prices to above $55 per barrel,” Dmitriev told Rossiya 24 news channel.

Airbnb paid £188,000 in UK tax last year www.bbc.com

Airbnb, the accommodation website, paid less than £200,000 in UK corporation tax last year despite collecting £657m of rental payments for property owners.

The commissions the company earns in the UK are booked by its Irish subsidiary, but it also has two UK subsidiaries.
One unit made a pre-tax profit, but the other did not incur UK corporation tax because deductions resulted in a loss.
Airbnb said in a statement: "We follow the rules and pay all the tax we owe."
One of the British subsidiaries, Airbnb Payments UK, handles payments between landlords and travellers for countries other than the United States, China and India.
That unit made a pre-tax profit of £960,000 and paid £188,000 in UK corporation tax - £8,000 less than in 2015.
The other British subsidiary, Airbnb UK, markets the website and app to British consumers. It reported a £463,000 pre-tax profit last year but because it gave shares to staff, which are tax-deductable, there was no corporation tax bill.
Airbnb said: "Our UK office provides marketing services and pays all applicable taxes, including VAT. The Airbnb model is unique and boosted the UK economy by £3.46bn last year alone."
The tax arrangements of other technology giants have come under under closer scrutiny in recent years.
One of the most vocal critics has been EU competition commissioner Margrethe Vestager. She has taken aim at the likes of Apple, Amazon and others for where they book the revenues and profits of their European activities.
Bruno Le Maire, the French finance minister, has also asked why Airbnb paid tens of thousand of euros in French corporation tax despite a turnover in the millions.
The company, founded in San Francisco in 2008, has disrupted the hotel industry by linking travellers with landlords who generally want to rent out a spare room or an entire property for short-term stays.
It has become one of the most successful examples of the digital economy, with an estimated value of about $24bn.
However, Airbnb has faced a growing backlash in cities including Barcelona, Berlin and Paris, where politicians have taken steps to stop landlords renting properties to tourists rather than local residents.
While Airbnb has long been linked with a stock market listing, it remains privately owned.
It takes a 3% commission from landlords for each booking, and also charges fees to travellers.
In the UK last year Airbnb catered for 5.9m travellers and had 168,000 listings.

Seko seeks renewal of concessions in Abu Dhabi www3.nhk.or.jp

Japanese trade minister Hiroshige Seko has asked Abu Dhabi National Oil Company to renew a Japanese firm's concessions in Abu Dhabi oil fields. The concessions are set to expire in March next year.

Chinese companies to build 700 coal plants in and outside China www.mining.com

Coal is dead. Coal mining is a sunset industry. Donald Trump is crazy if he thinks he can revive Big Coal. While all these statements have become part of global consciousness when it comes to the future of the much-maligned fossil fuel, a report by Urgewald, a Berlin-based environmental group, casts doubt on at least the first two assertions.

Forget Bitcoin. Have You Heard of IMFcoin? www.wsj.com

Forget Bitcoin, think IMFcoin. The head of the International Monetary Fund has been musing about the future of money, and thinks there is a decent chance it will come from the guardian of the world’s monetary system.

Christine Lagarde, IMF managing director, held up the organization’s special drawing rights (SDRs) as having a possible digital future at a Bank of England forum last week, and put what she said was a “question mark” over whether SDRs could replace existing international currencies. “It’s not a far-fetched hypothetical,” she said, and the IMF needs to be ready.

The SDR is a long way from the digital disruption that cypherpunks hope cryptocurrency can deliver. Dreamed up in the 1960s, SDRs are a kind of artificial currency whose value depends on other currencies. Dollars are a part of it, but so are euros, sterling, renminbi and yen. An SDR is a bit like a currency mutual fund for central banks.

For decades it has been an afterthought in the global financial system, but the IMF has spent the past year thinking about how to give SDRs a broader international role. So could some sort of crypto-SDR eventually replace the dollar as the world’s money?

The idea has heavyweight support from those who want to diminish the dollar’s status, notably in China. People’s Bank of China Governor Zhou Xiaochuan called in 2009 for wider use of the IMF’s money to “gradually replace existing reserve currencies with the SDR,” one reason for the latest review.

The reasons are well-rehearsed, and not digital. China—and other emerging markets—would like to diversity their risk away from dollars. They also worry about the inherent problem of using national money for global reserves. When the U.S. faces a conflict between domestic and international needs, it is likely to favor its voters over the world economy.

So what would digital SDRs add? When monetary economists are drawing up dream scenarios, they often come up with something similar to the “bancor” presented by John Maynard Keynes at the 1944 Bretton Woods conference. International trade would be conducted in bancors with rules about the size of overdrafts allowed, preventing imbalances getting too big.

SDR or IMFcoins would allow a much wider group to use the currency, supplanting the dollar in international trade and reducing both the big currency swings that can destabilize countries and the dangers of large current account deficits. Instead of representing a basket of currencies, the digital SDR would be a currency of its own, albeit one only used for international transactions.

A more limited alternative would try to speed global growth. At the moment, countries hold big piles of dollars as a form of insurance against a balance of payments crisis, damping growth and distorting the world economy. If the IMF was empowered to act more like a global central bank, whisking up new SDRs on its own blockchain in a crisis, it would reduce the need for countries to hold reserves.

José Antonio Ocampo, a Colombian central bank board member also on the IMF’s expert group considering the future of the SDR, thinks annual SDR issuance could be worth $200 billion to $300 billion a year.

“Countries would not have to accumulate reserves, [which] generate a general contractionary effect on the global economy,” he says.

The prospect of giving the IMF the ability to execute global helicopter drops of money worries believers in strong currencies.

Jim Rickards, an author and former general counsel for failed hedge fund Long-Term Capital Management, thinks SDRs will be issued to reflate the system in the next crisis, hurting the dollar’s reserve status. “It’s all converging on a world where the dollar will just be a local currency like the Mexican peso,” he says. He is a longstanding advocate of using gold to back money to limit the supply.

The real opposition to an IMFcoin is likely to come not from fans of gold, but from defenders of the dollar’s central role in the global system. Sterling once held the role of global reserve currency, and spent decades in decline once it was abandoned in favor of the dollar, reducing demand for pounds.

The benefit of having the reserve currency is obvious, and much-envied: Americans can offer to buy real things from the rest of the world with money the Federal Reserve creates out of nothing, and other countries have little choice but to accept. The U.S. gets lower interest rates than it otherwise would and can run a permanent current-account deficit with impunity—just so long as it remains the reserve currency.

There is a downside to having the reserve currency, though. The purchase of dollars by the rest of the world makes it harder for the U.S. to devalue to support its own economy. When the banking crisis hit in 2008 investors piled into the reserve currency, and the dollar soared 21% against its trading partners before the panic abated in March 2009. Instead of the weaker currency central banks usually aim for in a recession, the U.S. got a stronger currency.

There is little chance U.S. politicians will want to give up what a French finance minister once called the “exorbitant privilege” of the dollar, no matter what Ms Lagarde, another former French finance minister, might suggest. As she noted, the IMF would need a “geopolitical situation that would be propitious” for the changes she is speculating about to happen.

China wants it, and has been encouraging the issuance of SDR-denominated bonds to try to create a true alternative to the deep and liquid markets of the U.S. (China’s had little success so far, with only two SDR bonds outstanding, according to Thomson Reuters). Ms. Lagarde’s paean to the future suggests she likes the idea. Luckily for those holding dollars, the geopolitical situation is still tilted in favor of the U.S., and there is little prospect we all be trading in IMFcoins any time soon.