Coking coal price ends 2016 with sharp drop www.mining.com

While the price of futures trading in China and Singapore were swinging wildly in recent weeks, the benchmark for the seaborne market underwent a more measured correction after spending much of November above $300.

Silicon Valley's obscure unicorns could boost 2017 IPO market www.reuters.com

Social media firm Snap Inc may be the highest profile tech IPO planned for 2017, with the potential to raise billions.

But more than a dozen expected stock offerings of relatively obscure software firms targeting business customers - little-known names such as Apttus, Tintri and Okta - could be just as important in thawing a long-frozen IPO market, according to investment bankers and advisers who work on IPOs.

Such firms are a "leading indicator" of broader investor demand for market debuts, said Justin Smolkin, head of Americas technology equity capital markets at UBS Group AG (UBSG.S).

"They tend to be viewed as cream of the crop, and where investors make the most money," he said.

Such enterprise software companies generally sell their services through subscriptions that produce reliable revenue streams. They aim to sign contracts lasting several years, giving investors more predictable returns than many Internet or consumer-oriented companies that depend on advertising or high volumes of individual transactions.

The firms provide a range of back-of-the-house services, such as automating business processes, security, accounting, training software and expense management.

Although such companies have moderate valuations, between about $500 million and $4 billion, the sector accounts for most of the tech IPO market, said Will Connolly, Goldman Sachs Group Inc's (GS.N) head of U.S. technology equity capital markets.

"Most of the technology IPO activity is actually not big, large-cap companies going public," Connolly said. "It's small and midcap growth companies going public that are innovators in their own markets and are helping drive the next generation of technology."

Reuters has identified more than a dozen U.S. enterprise software companies that are making preparations for a 2017 IPO including Avalara, MuleSoft, ForeScout Technologies Inc, AppDynamics and Yext. [L1N1EO00X]

In 2016, only six software companies went public, Thomson Reuters data showed.

Greg Becker, chief executive of Silicon Valley Bank, a lender to venture capital-backed companies, predicted that between 30 to 45 venture capital-backed technology companies could go public in 2017, compared to 15 in 2016.

These companies could also be aiming to get ahead of tech giants Airbnb Inc and Uber Technologies Inc, whose long-anticipated IPOs would require ample investor dollars and attention.

If the enterprise software firms' IPOs succeed, it could offer a boost to early-stage investors who provided key funding in the hopes of profiting by selling shares down the line. Only 20 technology companies went public in 2016, less than any year since 2008, according to Thomson Reuters data.

"It will be important for everyone that these deals work well in the market to create positive momentum for the year," said Anthony Kontoleon, global head of syndicate in the equity capital markets group of Credit Suisse Group AG (CSGN.S).

If technology IPOs don’t take off in 2017, some venture capital fund managers could struggle to keep their investors happy. Startups that have attracted and retained talented employees with the promise of a lucrative IPO could also suffer.

The handful of technology companies that managed to go public near the end of 2016 have shown strong stock performances. Twilio Inc (TWLO.N), Coupa Software Inc (COUP.O), Nutanix Inc (NTNX.O) and Blackline Inc (BL.O) are now trading above their offer prices, boosting the confidence of their private peers that there is pent-up demand for such IPOs.

The recent stock market rally and companies beginning to accept a more modest pricing of offerings for IPOs has more tech companies ready to test the waters. Many had put IPO plans on hold in 2016 because they did not want to go public at lower valuations than the private fundraising rounds preceding them.

Enterprise software companies recognize that an IPO could be a major marketing event that gives them clout with potential customers that are publicly traded companies themselves - and conduct extensive due diligence before choosing a software vendor.

"The greatest benefit of an IPO is the transparency it creates. It comes with a much greater sense of legitimacy," said Rob Bernshteyn, chief executive of Coupa Software (COUP.O), a spend management tech company that went public in October.

“Customers want to know you're going to be around for a long time,” Pandey said.

Similar firms now looking to go public realize they have a marketing challenge ahead as they seek to capture investor interest before their market debuts. With names that trip up a spell checker and arcane business-model descriptions, they need to educate investors on their niche strategies and to start those efforts long before the typical two-week investor road shows that precede IPOs.

Apttus, for example, helps salespeople give a price quote quickly when trying to close a complicated deal that includes different products.

The company has already briefed many potential IPO investors in earlier funding rounds, said chief executive officer Kirk Krappe.

"Those investor meetings, and our relationship with Morgan Stanley (MS.N), have helped put us on the map," Krappe said.

(This version of the story has been refiled to add dropped word in paragraph 20)

(Reporting by Liana B. Baker and Heather Somerville in San Francisco and Lauren Hirsch in New York; additional reporting by Stephen Nellis in San Francisco; editing by Greg Roumeliotis and Brian Thevenot)

The best (and worst) stock markets of 2016 www.cnn.com

Congrats Americans! Your stock markets rallied to record levels this year.
The Dow Jones industrial average was a standout performer, shooting up 14% and approaching the 20,000 point level right at the end of 2016.
But you're not the only ones reveling in sweet stock market gains.
Here's an overview of some of the best performing global markets of the year:

Russia: Up 50%
Russia's RTS index has rallied by 50% since the start of the year and the country's other main index -- Micex -- has shot up by 26%.
Global investors rushed into Russia following the U.S. election because they expect President-elect Donald Trump to help thaw frosty relations between the two nations.
Russia is also heavily reliant on oil revenue, and it's benefited from the recent surge in oil prices.
"The bounce in the oil price has supported the Russian economy and saved it from disaster," said Naeem Aslam, chief analyst at Think Markets in London.

Argentina: Up 45%
Argentina's Merval index surged 45% this year and hit a record high in October on the back of major political shifts in the country and an 18% crash in the currency.
The election of President Mauricio Macri in late 2015 was a turning point for Argentina. Investors hope he'll revive the country's stagnant economy after the previous government left the nation's finances in tatters.
His government lifted currency controls, ended a 15-year battle with U.S. hedge funds and brought Argentina back to international bond markets for the first time since 2001.

Brazil: Up 39%
Brazil's Bovespa index hit a low in January that hadn't been seen since the 2008 global financial crisis. But then investor sentiment turned around and the market caught fire.
"Brazil's markets were at remarkably low valuations at that point [because] of the emerging Petrobras scandal," noted Tim Edwards, a senior director at S&P Dow Jones Indices. "A lack of descent into anarchy as well as rising commodity prices ... saw both [the] currency and stock market recover."
Brazil's main exports -- iron ore, oil and soy beans -- also saw major price increases over the course of the year.

Canada: Up 18%
Like many global stock markets, the TSX Composite index in Toronto rallied from a January low and benefited from the so-called Trump bump.
Canadian equity strategist Matthew Barasch from RBC Dominion Securities said in November that "the sum total of President-elect Trump's policy proposals would be positive for Canada and Canadian stocks, at least for a time."
He predicted that Trump's pro-oil policies would be a major boost for the energy exporter.

Norway: Up 18%
Oslo's All-Share index has been on a steady climb since the 2008 financial crisis, though it experienced a major pullback in early 2016 as oil prices crashed.
Norway's economy and markets are heavily reliant on oil, so the fact that crude prices have more than doubled from their February lows has helped energy stocks surge.
Specifically, Norway's biggest publicly traded company -- Statoil (STO) -- saw shares increase 29% this year. A smaller peer in the sector -- Aker BP -- saw shares soar by about 185%.

Indonesia: Up 15%
Indonesia's stock market posted a lot of bumps and jumps in 2016 but ultimately closed with a 15% gain.
Indonesia's largest publicly traded firms saw their shares rise this year, with most posting double-digit percentage increases.
The country's growing economy is powered predominantly by consumer spending, which means it's relatively insulated from a further slowdown in global trade.
The International Monetary Fund predicts economic growth of 5.3% next year, even faster than 2016.

U.K.: Up 14%
London's benchmark FTSE 100 index defied expectations and hit an all time high this year after Britain voted to leave the European Union.
The vote for Brexit caused the currency to drop to a 31-year low against the U.S. dollar, which provided a "stimulus boost" for the stock market, said Aslam from Think Markets.
The Bank of England's move to support the economy, combined with better-than-expected economic data, has also helped the stock market, said Aslam.
"A combination of these elements kept investors interested, hence we have seen such a stellar rally," he said.

The biggest losers
While most global stock markets rallied, a handful closed the year with deep losses: Italy and China were the biggest losers by far.
Italy's main index -- the FTSE MIB -- dropped 11% as investors worried about the troubled banking sector. Shares in all the major banks dropped sharply and Monte dei Paschi was forced to seek a bailout after its shares fell by 88%.
Chinese stock markets also closed the year with double-digit losses following a gut-wrenching fall in early 2016 when key indexes lost between 25% to 30% of their value in a matter of weeks.
The benchmark Shanghai Composite closed the year with a 12% loss. The Shenzhen market, which is traditionally more volatile, closed 15% down.

CEO resigns after overworked employee commits suicide www.cnn.com

The head of the Japanese advertising giant Dentsu has resigned after the suicide of a junior employee was linked to a company culture that required staffers to work huge amounts of overtime.
The company confirmed Thursday that its president and CEO, Tadashi Ishii, would step down after its January board meeting.
Dentsu, which employs 47,000 people and operates in 140 countries, has been in the spotlight following the suicide of an employee on Christmas Day in 2015.
Japanese regulators have found that the woman, Matsuri Takahashi, had been forced to work excessively long hours. The punishing workload resulted in her suicide, they ruled.
Takahashi had clocked about 105 hours of overtime in the month leading up to her death, authorities found.
japan matsuri takahashi
The parents of Matsuri Takahashi, whose suicide was attributed to overwork, spoke at a news conference in October.
Pity Japan's salaryman: Inside a brutal 80-hour workweek
Ishii's resignation comes after investigators raided Dentsu's offices. Japan's Ministry of Health, Labor and Welfare has referred the case to prosecutors.
"We deeply regret failing to prevent the overwork of our new recruit," Ishii said at a press conference. "I offer a sincere apology to the bereaved family and everyone in society."

Dozens trapped under mud after coal mine collapses in India www.

CNN)A huge open-pit coal mine has collapsed in eastern India, trapping at least 30 people and killing at least seven, police officials say.

India cash crunch: Rupee deposit deadline looms www.bbc.com

Beijing targets economic growth with $500bn rail expansion www.rt.com

The Chinese government plans to spend half a trillion dollars over the next three years on developing the country’s high-speed rail network. The move is part of a five-year plan aimed at shoring up China’s economic growth.

Gold powers miners to send the FTSE 100 to a new high www.bbc.com

Precious metals miners sent the FTSE 100 index of leading shares to a fresh high on Thursday, powered by a rise in gold prices.
In a continuation of December's Santa rally, blue chip stocks rose by 14.18 points to close at a record 7,120.26.
Randgold Resources and Fresnillo led the FTSE 100 climbers for a second day, each rising by more than 4%.
Stocks were lifted by gold prices which grew 1.5% to $1,158.1 an ounce.
Investors boosted gold as the yield on 10-year US bonds fell while the dollar fell to a 15-day low against the yen. Sterling rose against the dollar at $1.2250.
Ipek Ozkardeskaya, senior market analyst at London Capital Group, said: "The dollar fall was mostly due to renewed doubts about the US recovery after pending home sales dropped in November."
Recent data revealed that US pending home sales fell by 2.5% in November, compared to economists' expectations of a 0.5% rise.
Ashtead Group was the day's biggest faller in London, down 2.3%.
Industrial equipment hire company Ashtead is traditionally a strong performer in December, according to the Harriman Stock Market Almanac, and over the month its share price is still up by 4%.
Smiths Group, another industrial stock, was also one of the biggest fallers, losing 1.67%.

Chinese coal industry sees earnings explode in 2016 www.mining.com

China recently reported rising coal industry earnings. The Chinese National Bureau of statistics mentioned a growth of “157 percent in the first 11 months of 2016”, while industries such as oil and gas drilling along with power supply saw profits decline in the subsequent period.

This continued use of coal mirrors the rise in coal-fired power plants under construction or completed by China and India, African nations, and many European countries (Germany and Britain are shockingly big users of coal) as well. According to the International Energy Agency(IEA), global coal demand growth is slowing, but at least growing until at least 2020, the equivalent of an increase of 3.8 million-barrels-oil per day. There are reasons why coal will continue to rise in use.

According to the International Energy Agency(IEA), global coal demand growth is slowing, but at least growing until at least 2020, the equivalent of an increase of 3.8 million-barrels-oil per day.
Earnings were so strong in China that factory inflation spiked to a five-year high because of coal, which allowed their manufacturers: “to cut debt, invest more, and delay efforts to reduce excess capacity.” Coal in China and elsewhere continues to make investors and governments money. Yet China has promised to stop increasing emissions by 2030, and attempt to get one-fifth of required electricity from renewables while continuing to rely on coal and other fossil fuels for the remainder of their growing energy needs.

Chinese, Indian, African and European nations will continue to use coal for a simple reason – it is inexpensive – compared to renewables, nuclear, or even natural gas. Very dirty, but very cheap, and that’s what is driving the Chinese and others to use so much coal.
Moreover, economics will drive the debate while mechanisms that were agreed on in the Paris Climate Agreement (PCA) prove to be expensive, hard to quantify, and difficult to pay for in the near and distant future. Leaders in Poland, Australia, South Korea and Japan now believe that new coal plants in the works can meet tough climate regulations through efficiency and new technology.

But a new study by the World Wide Fund for Nature (WFF) and Ecofys doesn’t agree with that assessment. Russell Gold, the lead energy reporter for the Wall Street Journal, makes the case in his book: The Boom; that if environmental groups would place natural gas on equal footing with renewables, a possible lowering of coal use and emissions is doable.

On the continuation that the PCA is being ignored, the World Energy Outlook 2016 from the IEA: “projects in its ‘New Policies Scenario’ that over the next 35 years, the amount of electricity the Chinese produce from coal will increase by 4.3 percent.” But an interesting twist adds to the intrigue and opportunity for investment possibilities to exist.

China, Japan, and South Korea are leading the way in “adopting the latest super-critical and ultra-super-critical low-emission-coal technology.” This process operates at higher temperatures, pressures and increases coal’s electricity capacity by 30 percent which: “enables new technology power stations to generate more electricity while emitting less CO2, particulates, sulfur dioxide and nitrogen oxides.” Ironically China will have a coal-based economy while being one of the largest users and investors in the world of renewable energy.

What about the U.S. and its use of coal and advocating for a cleaner future without coal? America is already a much cleaner and more efficient user of energy and this is where many nations of the world take issue. The United States has four times the economic output per tonne of carbon dioxide emissions compared to India and five-and-a-half time compared China. Incredibly large discrepancies, and for coal not to make an impact, both China and India along with most of Asia and Africa would need substantial reductions in emissions to come from them, not the U.S.

Practically speaking, it is hard to imagine these countries along with Eastern European nations to opt for emission reductions, instead of lower electric bills. Long-term economic analysis dictates that mitigation will come from financial feasibility in growing economies, and not doing away with coal. Oren Cass of the Manhattan Institute noted the PCA, “resulted in nothing more than a pledge and review process,” and not real emission cuts through verification, certification and severe punishment for non-compliance.

Coal isn’t going anywhere, least of all in China. And the geopolitical situation in China has Premier Xi only gaining more strength, and not giving up power when his current term expires. This means Premier Xi will continue ramping up coal use and looking for cleaner, more efficient coal technology for the ever-growing and ever-changing Chinese economy.

One can only hope the Chinese and others follow the U.S. model and opt for natural gas over coal to produce results that only the Americans have found in how to truly reduce carbon emissions. Coal may be inexpensive and abundant, but only natural gas provides what the Kyoto Protocol wanted and the PCA believes it will achieve moving forward. While not popular, coal could still see some great returns in the near term. The Chinese, Indians, most of Asia, Africa, and even some Europeans seem to agree.

Japan, China agree to press ahead on RCEP talks www.nhk.or.jp

Officials of the Japanese and Chinese governments have agreed to move forward with talks on another economic partnership as the prospects for the Trans-Pacific Partnership negotiations are unclear.