The_Wall_Street_Journal_Asia__September_13_2016

B2| Tuesday, September 13, 2016 THE WALL STREET JOURNAL.

INDEX TO BUSINESSES

These indexes cite notable references to most parent companies and businesspeople
in today’s edition. Articles on regional page inserts aren’t cited in these indexes.

A
ABN Amro Group........B
Abu Sayyaf.................A
Alphabet......................B
Apple...........................B
B
Banca Monte dei Paschi
di Siena.....................B
Bank of Hangzhou......B
Bank Polska Kasa Opieki
.....................................B
Belarusian Potash......B
BlackRock....................B
Bridgewater Associates
.....................................B
C
Carlyle Group..............B
Christie's.....................B
Claren Road Asset
Management.............B
Clovis Oncology..........B
D
Dai-ichi Life Insurance
.....................................B
Dell Technologies........B
Deutsche Telekom......B
Dow Chemical.............B
F-G
Facebook...........A6,B4,B
Fine Art Group............B
FinecoBank..................B

Franklin Templeton.....B

Gilead Sciences...........B

Goldman Sachs GroupB

Google.........................B

H

Hanjin Group...............B

Hanjin Shipping..........B

Hewlett Packard

Enterprise.................B

Hitachi.........................B

HP................................B

HSBC...........................B

Hubei TKD Crystal

Electronic Science

&Technology..............B

Hyundai.......................B

Hyundai Merchant

Marine.......................B

I-K

IHS...............................A

Intesa Sanpaolo..........B

Korean Air Lines.........B

L

Leslie Hindman

Auctioneers...............B

Life Sciences...............B

Los Angeles Modern

Auctions....................B

M-N

Microsoft.....................B

NetApp........................B

Nike.............................B

Nimble Storage...........B

O

Oracle..........................B

Össur...........................B

P-R

Pfizer...........................B

Phillips.........................B

Powszechny Zaklad

Ubezpieczen..............B

Pure Storage...............B

Rio Tinto.....................B

S

Samsung Electronics

............................... B1,B

Sanofi..........................B

SHC Design.................B

Sinohydro....................A

Sinovation Ventures...B

SolarCity......................B

Sotheby's....................B

Space Exploration

Technologies.............B

Syngenta.....................B

T

Tata Group..................B

Tata Steel....................B

Telefonica....................B

Tesla Motors...............B

U

UniCredit.....................B

UnitedHealth Group....B

BUSINESS NEWS

fore the collapse of the Rus-

sian-Belrusian sales partner-

ship.

Agrium’s earnings declined

almost 18% to $568 million in

the first half of 2016, from the

year-earlier period.

Since last year, potash sales

have been hurt by Brazil’s

slumping currency, which un-

dercut demand from one of

the world’s big consumers of

the fertilizer. More recently,

delays in the signing of supply

contracts with China and In-

dia, two of the other largest

fertilizer markets, also hurt

pricing.

Both companies, though,

say they are more optimistic

for potash during the rest of

the year amid signs volume

sales will increase. Outside of

North America, Potash and

Agrium sell the crop nutrient

through Canpotex, a Saskatch-

ewan-based exporter that also

includes rival Mosaic Co.

In July, Canpotex signed

new supply pacts with Indian

customers to cover the next

three months and an agree-

ment with China for shipments

to the end of 2016.

Under the deal, Potash

shareholders would receive 0.

common share of the new com-

pany for each common share

they own and Agrium share-

holders would receive 2.

common shares of the new

company for each common

share of Agrium they own.

On Monday, Agrium shares

were down 3.2.%, trading in

New York at $92.18, and Pot-

ash shares were down 1.8%,

trading at $16.66.

The companies first an-

nounced they were in prelimi-

nary discussions late last

month.

The deal is expected to

close in mid-2017 and is sub-

ject to customary closing con-

ditions, including approvals by

regulators, Canadian courts

and shareholders.

—Jacquie McNish

contributed to this article

INDEX TO PEOPLE

A

Ando, Fuminori...........B
Anvarzadeh, Amir.......B
Assar, Samir...............B

B

Bolke, Brian................A
Burgener, Eric.............B

C

Caldato, Fabio.............B
Chang, Sean................B
Cho, Yang-ho...............B
Cook, Tim....................B
Crompton, John..........B

D

Daly, Kevin..................B
Daryanani, Amit.........B

E

Erickson, Brad.............B

F

Fautz, Florian..............B
Furber, Alex.................B

G

Gownder, J.P...............B

Gupta, Bejoy Das........B

H

Hindman, Leslie..........B

Hughes, Jason............B

J

Jenkins, Mark.............B

Jordison, Don..............B

K

Kewsong, Lee..............B

L

Lake, Spencer..............B

Lee, Jae-yong..............B

Lee, Kai-Fu..................B

Lee, Sei-cheol.............B

Longo, Vicenzo............B

Lores, Enrique.............B

M

Masuda, Tsuneo..........B

Musk, Elon..................B

Mustier, Jean-Pierre...B

N

Neumann, Frederic.....B

Nouri, Amy..................B

P

Page, Larry..................B

Pang, Iris.....................B

S

Sy, Ben........................B

T

Tas, Steven.................B

Tilk, Jochen.................B

Tokushima, Yutaka.....B

V

Viola, Fabrizio.............B

W

Waterworth, James....B

Weisler, Dion..............B

Williams, Jeff.............B

Z

Zuckerberg, Mark.......B

flows in 2016 and 2017 to

continue at a rate similar to

what occurred in 2015, ac-

cording to Citigroup. Julius

Baer said it expects emerg-

ing-market regularization

outflowstodragongrowth

for two to three more years.

The big question is

whether the trend will

spread to Asia, where the

best growth potential re-

sides. India and Indonesia

have declared tax amnesties,

but the effects aren’t yet no-

ticeable.

The types of clients Swiss

banks attract in Asia—the ul-

trarich—may present less of

a tax risk, because they ha-

ven’t avoided taxes in the

same small, systematic way

over decades that European

clients did. For the superrich

of a country such as China,

the cash they have salted

away across Asia may be

more at risk if they fall out

of favor politically, or if

other policies change.

By the end of 2018, when

information exchange has

been in place for a while, the

impact on Asia will be

clearer. For those banks with

slowing or struggling invest-

ment-banking businesses,

the last thing they need is

more difficulty making

money in their most promis-

ing wealth markets.

tween 2011 and the end of
last year were huge, at more
than 40 billion Swiss francs
($41 billion) for Credit Su-
isse and an additional 30 bil-
lion francs for UBS.
A study by Deutsche Bank
and Oliver Wyman estimated
that these outflows cut pre-
tax earnings by between 400
million and 500 million
Swiss francs over the period
for each of the banks. Across
Swiss banking, the study es-
timates that regularization
and more focus on the su-
perwealthy, who get lower
fees on their big accounts,
have cut margins by about
30% since 2010.
The peak of European out-
flows was in 2012 and they
have declined steadily since,
but outflows from emerging
markets have picked up.
Credit Suisse has forecast
that 5 billion more Swiss
francs will go this year,
mostly from emerging-mar-
ket clients.
This rate is less than half
what it was in the heaviest
years, but will still be a drag
on growth for the whole in-
dustry. Swiss banks as a
group expect tax-related out-

Continuedfromthepriorpage

HEARD

pacity, but 60% or more of

North American capacity,

ahead of Mosaic and Intrepid

Potash, National Bank said in a

note ahead of Monday’s an-

nouncement.

Mr. Magro, who is to be-

come CEO of the new com-

pany, said he is “highly confi-

dent” the proposed merger

won’t trigger antitrust issues.

He said the potash market has

become very competitive with

the emergence of new produc-

ers, and there is very little

overlap in the companies’ ni-

trogen and phosphate opera-

tions.

The companies estimated

the deal would generate as

much as $500 million in an-

nual operating synergies and

employ about 20,000.

Agrium has more than 1,

retail outlets, mostly located

in Canada and North America,

and sells a little more than

10% of the nitrogen, phosphate

and potash it manufactures to

industrial customers. The rest

goes to retail customers.

Potash’s Mr. Tilk will be ex-

ecutive chairman of the com-

bined company, which will be

based in Saskatoon, Potash’s

current headquarters.

For the first six months of

2016, Potash’s earnings fell

75% to $196 million, as the

company’s average sale price

for the fertilizer declined to

$154 a ton in the second quar-

ter, from $273 in the year-ear-

lier period and $387 a ton in

the fourth quarter of 2014 be-

Continuedfromthepriorpage

DEAL

such bets last month when the

dollar was trading at 6.

yuan in Hong Kong. The dollar

was trading at 6.6913 yuan

late Monday in the offshore

market, down 0.1% from late

Friday. “People are still look-

ing for opportunities to put a

bearish trade on,” he said.

Such negative sentiment

has resulted in the squeeze of

yuan funds in Hong Kong’s

market in recent sessions, as

many say Beijing is again put-

ting those short sellers on

alert.

“It doesn’t look normal to

me,” said Iris Pang, senior

economist for Greater China at

investment bank Natixis, part

of France’s Groupe BPCE. “I’m

more convinced [this is] inter-

vention.”

Despite growing deprecia-

tion pressure, many investors

expect the Chinese central

bank to try to prevent rapid

weakening of the yuan—al-

ready the worst-performing

currency in Asia this year—

ahead of the yuan’s forthcom-

ing inclusion in the Interna-

tional Monetary Fund’s official

reserve-currency basket,

scheduled for Oct. 1.

The PBOC’s overarching

goal is to “prevent any big

eruptions,” said Sean Chang,

head of Asian debt investment

at Baring Asset Management

(Asia) Ltd.

—Carol Chan contributed

to this article.

excessive capital outflows.

That strategy often risks get-

ting derailed by investors who

use the offshore market in

Hong Kong, where the cur-

rency can be traded freely, to

wager against the yuan. (In

the mainland, the yuan is al-

lowed to swing only 2% above

or below the level set by the

central bank each day.)

The more that bearish bets

pile up on the yuan offshore,

the more difficult it is for the

central bank to control its de-

scent. These bets typically are

enacted by traders who borrow

the yuan overnight, and ex-

change it for dollars, exchang-

ing the money back the follow-

ing day after the yuan has

dropped—a practice known as

short selling. A rise in over-

night borrowing costs makes

this a less-profitable trade.

Following a surprise weak-

ening of the yuan’s official

rate by the central bank in

early January, investors piled

on bets against the currency

in Hong Kong’s market, caus-

ing a widening divergence be-

tween the yuan traded there

and its mainland peer. Chinese

authorities at the time re-

sponded by drastically tight-

ening yuan liquidity in Hong

Kong, by ordering local

Continuedfromthepriorpage

YUAN

branches of Chinese state-

owned banks to buy up the

currency, sending the over-

night yuan-borrowing cost to

a record 66.8%.

Then, as now, downward

pressure on the yuan—and up-

ward pressure on the dollar—

was exacerbated by expecta-

tions the Federal Reserve soon

might raise interest rates in

the U.S.

This time around, many in-

vestors saw similar tactics

from Beijing as bearish yuan

wagers in Hong Kong rose

ahead of a Group of 20 eco-

nomic summit in China last

week. Some investors placed

the bets in belief that China

would have fewer incentives to

hold the yuan steady after the

high-level gathering, which

Beijing had hoped would

showcase the country’s eco-

nomic might.

“We see consistent interest

in shorting” the yuan offshore,

said Ben Sy, head of fixed in-

come, currencies and com-

modities at J.P. Morgan Chase

& Co.’s private bank in Asia.

Mr. Sy said clients had started

to inquire about putting on

Beijing’s priorities

have shifted as the

Chinese economy

has lost steam.

SEOUL—A Hanjin Shipping

Co. vessel was set to finish un-

loading freight in California on

Monday, clearing the way for

more of its ships to dock, as

the ailing South Korean com-

pany works with ports in the

U.S. and around the world to

get its frozen supply chain

moving again.

The Hanjin Greece docked

at Long Beach, Calif., on Satur-

day and began unloading

cargo Sunday after days of be-

ing stranded off the coast. A

Hanjin Shipping spokeswoman

in Seoul said at least three

more cargo ships—the Hanjin

Gdynia, the Hanjin Jungil and

the Hanjin Montevideo—were

expected to follow suit at the

U.S. port.

The financial woes of one of

the world’s largest shipping

lines have left as much as $

billion of cargo stranded at

sea, and pressure is mounting

on South Korea and the U.S. to

break the logjam. Several Han-

jin ships have been seized by

creditors or turned away from

ports, with terminals refusing

to unload cargo for fear they

won’t get paid.

Court papers show a total

of 13 ships either owned or

leased by Hanjin are set to

make their next port of call in

the U.S.

The cargo operator got

some respite over the week-

end after Korean Air Lines

Co., its largest shareholder

and Hanjin Group ’s flagship

company, agreed to lend it 60

billion won ($54 million), us-

ing Hanjin Shipping’s Long

Beach port-terminal assets as

collateral.

The airline’s agreement Sat-

urday is part of Hanjin Group’s

earlier pledge to put up 100

billion won in aid to help re-

solve the cargo crisis.

Hanjin Group Chairman Cho

Yang-ho has promised to make

the remaining 40 billion won

available by Tuesday, accord-

ing to Korean Air.

One of Hanjin’s lawyers on

Friday said in a U.S. federal

court that the company has

both the funding and the legal

permission necessary to un-

load four ships bound for U.S.

ports. Hanjin also has asked a

South Korean court for autho-

rization to use a further $3.

million to have goods that

have already been unloaded

and are sitting at U.S. ports

delivered to their owners, a

process that its lawyer said

could be jump-started as soon

as Wednesday.

South Korean Minister of

Trade, Industry and Energy

Joo Hyung-hwan met with lo-

cal exporters and smaller ship-

pers Sunday and promised to

use government funds to help

deliver cargo to its final desti-

nation on time. Mr. Joo also

said the government was

working with Hanjin’s smaller

South Korean rival, Hyundai

Merchant Marine Co., and

other companies to deploy ex-

tra vessels to deal with

stranded cargo.

Hanjin filed for the equiva-

lent of chapter 11 in South Ko-

rea last month and days later

sought chapter 15 bankruptcy

protection in the U.S.

Chapter 15 gives a foreign

company the benefits of U.S.

bankruptcy law, including pro-

tections that prevent creditors

from seizing assets. But the

U.S. court’s power is limited

andmuchoftheaftermathof

the bankruptcy will have to be

worked out in South Korea.

The Seoul central district

court has given Hanjin until

Nov. 25 to submit a rehabilita-

tion plan that will determine

whether it can continue oper-

ating. However, this is seen by

analysts as granting the com-

pany more time for an orderly

liquidation, given that the

government has signaled that

it sees no future for Hanjin by

calling on smaller rival Hyun-

dai Merchant to buy its

healthy assets.

The company and Hyundai

Merchant handle the bulk of

Korea’s exports and have been

unprofitable for several years,

amassing debts in a global

shipping market awash in ex-

cess capacity and plummeting

prices.

BYKWANWOOJUN

HanjinUnloadsShipinU.S.

Hanjin’s problems have left up to $14 billion of cargo stranded at sea.

JASON REED/REUTERS

Prices for fertilizer ingredient potash have been under pressure.

DAVID STOBBE/REUTERS

ternational Cooperation

Agency, an aid arm of the gov-

ernment that provided funding

for trials in the Philippines of

the 3-D limb printer. More

than 100,000 Filipinos whose

disabilities prevent them from

working could get jobs if sup-

plied with an artificial limb,

theagencysaid.

“I wanted to provide my

product to those really in

need,” said SHC Design Chief

Executive Tsuneo Masuda,

who started the company after

working at a medical-equip-

ment maker for 26 years.

SHC Design, which has re-

ceived some subsidies from

the Japanese government,

plans to begin selling its sys-

tem—the 3-D printer and soft-

ware—as soon as next April in

the Philippines and Japan, said

operating chief Mr. Tokush-

ima. It will cost about $2,000,

he said. A scanner is also re-

quired and must be purchased

from another provider.

The company believes it

would be the first to offer a

self-contained 3-D printing

system for prosthetic limbs,

according to Mr. Tokushima,

and it plans to seek patents

for the printer and software.

All Nippon Airways Co. is also

on board in a research capac-

ity as it explores ways to give

passengers with prosthetic

limbs easier routes through

airport security, where the

standard models set off

alarms.

Larger prosthetics compa-

nies are also looking at 3-D

printing. Ottobock, a prosthet-

ics maker based in Germany,

distributes 3-D-printed leg

covers made by San Francisco-

based UNYQ Design Inc. that

allow users to conceal the me-

chanical parts. Prosthetics

maker Össur hf. in Reykjavik,

Iceland, uses 3-D printing to

make prototypes and some

parts for its microprocessor-

controlled knee, according to

research-and-development di-

rector Magnús Oddsson.

“With further development

of the technology, this method

will be used more,” he added.

Tom Fise, executive direc-

tor of the American Orthotic &

Prosthetic Association, said he

isn’t aware of any other fully

printed legs as close to market

as SHC Design’s.

He said he sees potential

durability issues with polymer

legs compared with standard

ones, which are made of mate-

rials such as titanium and car-

bon fiber. An Ottobock official

said the company hasn’t used

3-D printing to manufacture

an entire prosthesis because it

doesn’t think the current tech-

nology could produce one that

would last for three-to-five

years.

Mr. Tokushima of SHC De-

sign said he hasn’t seen dura-

bility problems in trials so

far—and notes that if a 3-D-

printed leg wears out, a new

one could be made quickly and

relatively cheaply using the

stored data.

Continuedfromthepriorpage

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