Mongolian diplomatic missions working on high alert www.montsame.mn

Ulaanbaatar /MONTSAME/ The Ministry of Foreign Affairs is putting a special emphasis on registering more than 190 thousand Mongolians living in about 80 countries around the world, give them coronavirus prevention recommendations, and stay in close touch with them. Mongolian diplomatic missions to China, South Korea, Japan, Italy, and Russia have especially been placed on high alert and are receiving directives from the Foreign Ministry.

Oil prices are dropping fast. Can OPEC come to the rescue? www.cnn.com

London (CNN Business) From stocks to bonds and currencies, the coronavirus outbreak is rocking all corners of financial markets. For oil producers, the pain has been particularly acute.
With demand dissipating, oil has plunged into a bear market, putting pressure on OPEC to step in and attempt to stabilize prices. But as the coronavirus continues to spread around the world can the cartel really play the savior?
That's the question this week, as OPEC members and allied producers gather in Vienna for meetings on Thursday and Friday.
The backdrop: Brent crude futures, the global benchmark, finished Friday at $50.52 per barrel, down 13.6% for the week. US oil was trading at $44.76, a 16.2% weekly decline. Prices haven't been that low since late 2018.
Why OPEC needs to act: The economies of some OPEC members are reliant on crude production, and the coronavirus has sharply reduced demand for products such as gasoline and jet fuel. To keep prices from dropping further, OPEC may turn to what has become its preferred strategy in recent years: coordinated production cuts.
The Financial Times has reported that Saudi Arabia is pushing for a cut in production of 1 million barrels per day, much more than first expected. The kingdom would shoulder the brunt of the reduction, while Kuwait, the United Arab Emirates and Russia would split the rest, according to the FT. Russia is not a member of OPEC, but it has coordinated production levels with the cartel in recent years.
Giovanni Staunovo, an analyst at UBS, thinks that may not be enough to alter oil's trajectory in the near term. "I'm not sure this [would be] sufficient to change the negative market sentiment," he told me. "What is cheap can get cheaper."
Bright spot: Staunovo points out that oil prices aren't sustainable for long at their current level. Within six months and a year, lower business investment across a struggling industry will restrict supply, helping to prop up prices, he said. Plus, bargain crude will eventually stimulate demand.
Oswald Clint, an analyst at Bernstein, agrees that prices will need to push higher before long. He thinks that an OPEC cut of 1 million barrels per day would be sufficiently supportive, especially given falling oil production in countries like Norway that predated the coronavirus outbreak.
But both Staunovo and Clint agree that oil markets need a bailout from OPEC — and soon.
Stocks just had a brutal week. The next one may not be easier
Global stocks have fallen for seven trading sessions in a row, lodging their worst week since the 2008 financial crisis and putting investors on edge as the novel coronavirus continues to spread outside China.
What's happening: Stocks plunged and financial conditions tightened as traders woke up to the risks that the virus poses to global economic growth and corporate earnings, with cases now present in more than 50 countries and territories. The Dow finished the week down 12.4%, while the S&P 500 slid 11.5%.
US stocks recovered some losses in the late hours of trading on Friday after Federal Reserve Chairman Jerome Powell put out a rare statement. "The fundamentals of the US economy remain strong," he said, while acknowledging that the coronavirus "poses evolving risks to economic activity." The central bank, Powell said, will "act as appropriate to support the economy."
To investors, the message was loud and clear: expect the Fed to cut interest rates when it meets in March. According to CME Group's FedWatch tool, 100% of investors now predict a rate cut in March — with nearly 95% forecasting that the Fed will lower rates by a decisive 50 basis points.
Will that reassurance be enough to help markets stabilize this week? It's hard to say. After years of persistently low interest rates, investors are worried that central banks lack sufficient ammunition to stave off a crisis.
"An interest rate cut in this environment will arguably do little to affect real economic activity," Morgan Stanley economist Ellen Zentner told clients Friday.
And the market remains driven by news of how the outbreak is moving around the world, as well as how it's hitting businesses and economies. On Saturday, China said that factory activity in February hit the weakest level on record, and the first person died from the coronavirus in the United States.
Justin Onuekwusi, a fund manager at Legal & General Investment Management, told me that his team — which manages $84 billion in retail multi-asset funds — has reduced its exposure to stocks and the Korean won.
"We don't feel the market has certainty on this," he said. "The impact on Chinese growth and the rest of the world is potentially quite huge."

Flights suspended to and from Irkutsk and Ulan-Ude until March 11 www.montsame.mn

Ulaanbaatar /MONTSAME/ On March 1, the State Emergency Commission held a meeting to discuss precautions against the novel coronavirus.

Coronavirus Mongolia, Latest update www.amicusmongolia.com

There are currently no confirmed cases of coronavirus in Mongolia.
The government of Mongolia, all emergency agencies and health organizations are still working hard and operating 24 hours to preventing from the COVID-19.

Coal and petroleum export to resume from March 15 www.montsame.mn

Ulaanbaatar /MONTSAME/ At its regular meeting held today, the Cabinet adopted a resolution on supporting the economy of Mongolia in the period of heightened state of readiness for prevention of coronavirus infection. The resolution reflects to resume export of coal, petroleum and other minerals from March 15.

30.9 million head of livestock expected to deliver offspring www.montsame.mn

Ulaanbaatar/MONTSAME/. There are over 70 million heads of livestock in the country as of today, of which 30.9 million are expected to deliver young animals, reported the Ministry of Food, Agriculture and Light Industry.

Sino-Mongolian true friendship endures amid outbreak www.chinadaily.com.cn

Mongolian President Khaltmaagiin Battulga paid a special one-day visit to China on Feb 27, 2020, as the first foreign head of state to visit China since the outbreak of COVID-19, representing the profound friendship between the two countries at the current stage of the fight against epidemic. During his meeting with Chinese President Xi Jinping, he quoted some old Mongolian words of wisdom -- "a needle in need is of greater use than a camel in prosperity" as an implication of "adversity reveals true friendship".

President Xi Jinping expressed his warm welcome as President Battulga paid this special visit only one day after Mongolia's traditional White Month holiday and appreciated the Mongolian government and people for their valuable support and assistance to China in fighting the epidemic. Moreover, he noted that President Battulga's one-day visit to express consolation and support to the Chinese people over the outbreak of the virus vividly showed that the two countries stand closely together in difficult times.

After both sides exchanged views on joint efforts to curb the spread of the novel coronavirus, President Battulga announced to President Xi Jinping a donation of 30,000 sheep to China, implying that the assistance will be measured by the significance of its size. This sincere and down-to-earth assistance has received wide attention and warm appreciation from the netizens of both counties.

Firm support reveals true friendship

President Battulga's one-day visit during this special period of time fully illustrated the Mongolian government's firm support for China's efforts to fight against the epidemic. The Mongolian government provided China at the earliest possible time $200,000, which was Mongolia's largest amount of cash assistance for a foreign country in recent years. Meanwhile, the Mongolian government's senior officials and some other party leaders sent letters to China, expressing their condolences and highly praising the effective measures taken by the Chinese government to battle against the epidemic.

During his meeting with President Xi Jinping, President Battulga addressed his appreciation of China's nationwide joint efforts to fight against the epidemic.
No wonder this meeting at this special time between the heads of the two countries will be an important step toward maintaining the regular bilateral high-level visits, strengthening mutual trust, and consolidating the comprehensive strategic partnership between the two countries.

'A friend in need, a friend indeed'

Since the unprecedented outbreak of the virus, the Mongolian people have launched humanitarian fundraising activities to support China's fight against the epidemic, and received active responses from all walks of life, indicating the profound friendship between the two peoples. The Mongolian people have paid great attention to China's anti-epidemic situation and expressed their kindness to stand with the Chinese people and try their best to provide support and help in many ways.

According to the Chinese embassy in Mongolia, the charitable funds raised by all sectors of Mongolian society have reached nearly 5 million yuan, and donations also include medical supplies such as masks and medical protective clothing that are in short supply in China, reflecting the profound friendship between the two peoples.

There is no isolated island in front of an epidemic. During the meeting, President Xi Jinping emphasized that China will continue to work with countries including Mongolia to fight the epidemic and safeguard regional and global public health security. Since the Mongolian people have been equally concerned about the outbreak, as Mongolia shares the longest land border with China, it is very necessary that the two countries stand closely together to curb the spread of the novel coronavirus.

President Battulga's special visit during the ongoing nationwide fight against the epidemic presented cooperation between neighboring countries to the world, and the vision of a community with a shared future for humanity will be deeply rooted in the hearts of the two peoples.

As the old Mongolian words of wisdom say, "It is not necessarily the rich who gives you meat to eat during a disaster, but it must be the true friend."

Greeting

Dear readers and friends,

As you know, Mongolian Lunar New Year was on February 24th.
While the government made the wise decision to cancel all public celebrations, a new year is upon us nevertheless.
And as turbulent as the times have been, we are confident that all of us, across the globe, will overcome this together!!
It is with this conviction that we wish you the best of success, health and happiness in the New Year of "Iron Mouse" symbolizing the 17th sexagenarian cycle in Mongolian chronology!!

Investment advisors worry U.S. response to coronavirus is too little too late www.reuters.com

NEW YORK (Reuters) - Investment-advisors are increasingly worried that U.S. authorities are not be doing enough to prevent a widespread outbreak of coronavirus in the country, potentially adding further downside to already-battered markets.
Their criticisms include the number of people so far tested by the U.S. Centers for Disease Control and Prevention (CDC), which some say is too small, the possible difficulties of imposing lockdowns on U.S. cities and concerns that the White House could bungle containment efforts.

The worries have magnified the uncertainty that has accompanied the coronavirus outbreak over the last several weeks, as investors scramble to adjust their portfolios to price in the virus’ potential for damage to the global economy and assess its further impact on asset prices.

The CDC states on its website that “as of Feb. 24, CDC teams are working with the Department of Homeland Security at 11 airports where all flights from China are being directed to screen travelers returning to the United States, and to refer them to U.S. health departments for oversight of self-monitoring.”

U.S. Health and Human Services (HHS) Secretary Alex Azar said as of Thursday morning the CDC had tested 3,625 specimens for the fast-moving virus.

For some investors and analysts, those assurances ring hollow.

“Much of what we’ve seen about this virus has shaken confidence in governments,” said James Bianco, head of Chicago-based advisory firm Bianco Research.

His list includes doubts over China’s accuracy in counting cases, criticism over Japan’s handling of a cruise ship quarantine at one of its ports, and the comparatively small number of people that U.S. authorities have so far tested.

Worries over the growing number of cases outside China sent the S&P 500 into intraday correction territory on Thursday morning. Stocks took an earlier hit on Wednesday after health officials in Nassau County, New York, said they were monitoring 83 people who visited China and may have come in contact with the coronavirus. Governor Andrew Cuomo said the state has had no confirmed cases so far. [L2N2AQ192]

On Wednesday evening, U.S. President Donald Trump told Americans that the risk from coronavirus remained “very low,” and appointed Vice President Mike Pence to run the U.S. response to the looming global health crisis.

Bianco said he fears many investors are still complacent about how quickly the number of cases could multiply in the United States, as it has in countries such as Iran, Italy and South Korea.

He is advising his clients to tread lightly until the full extent of the outbreak is known.

“I would rather risk a lost opportunity by being out of the market or underweight and finding out that this is not a big deal, than being fully invested and worrying that this will get worse,” Bianco said.

‘TREMENDOUS AMOUNT OF RISK’
Others are concerned over the consequences if the United States were forced to implement a lockdown similar to the one imposed by Chinese authorities on Hubei Province, the epicenter of the coronavirus outbreak.

Wuhan, Hubei’s capital, imposed strict controls on movement of residents, then eased them, then later announced that the relaxation had been revoked. Such measures could be more difficult to enforce in the United States.

“Those of us sitting here in Hong Kong looking at financial markets think there is a tremendous amount of risk in the system,” said Simon Powell, equity strategist at Jefferies in Hong Kong.

Powell is particularly worried that there could be spread of the virus from people from countries outside China which were not subject to travel restrictions coming into the United States. He is particularly concerned about the outbreak in Iran.

Iran said on Thursday that its coronavirus death toll had risen to 26, by far the highest number outside China. The death rate among confirmed cases of the virus has been running at around 10% in Iran compared to around 3% elsewhere.

Powell also thinks that a Trump government is unlikely to choose reduced economic activity , writing in a recent research note that “our base case hypothesis is that a Trump government is unlikely to choose reduced economic activity, and supply chain disruption, so spread of the virus, if it were to emerge in the US, would be more likely.”

Others have pointed to what they believe are shortcomings in the CDC’s approach.

“The initial response from the U.S. has been targeted to mount a response to confirmed high-risk or infected cases, not directed to a more generalized public health containment,” said Wouter Jongbloed, head of policy and risk analysis at New York-based Exante Data.

With coronavirus having spread well outside China, CDC testing was “likely insufficiently effective in preventing a potential outbreak in the U.S.,” Jongbloed said.

Reporting by Megan Davies; Additional reporting by Ira Iosebashvili; Editing by Daniel Wallis

The Hu nominated for Heavy Music Awards 2020 www.montsame.mn

Ulaanbaatar/MONTSAME/. Mongolian hunnu rock band ‘The Hu’ became one of the finalists for the fourth annual Heavy Music Awards. The band was nominated for ‘Best International Breakthrough Band’.