The Business Matrix: Tuesday 10 December 2013

PM’s tactics worry private sector

Japan’s private sector is losing faith in Prime Minister Shinzo Abe’s “shock and awe” tactics to revive the world’s third-biggest economy. Figures yesterday showed business investment flatlining in the latest quarter, triggering a sharp slowdown in economic growth during the period. Its annual pace slowed from 1.9 per cent to 1.1 per cent.

NS&I savers hit by Direct ISA rate cut

National Savings & Investments will cut the interest rate on its Direct ISA by 0.25 percentage points to 1.5 per cent in February 2014, hitting 316,000 savers. The government-owned savings institution said it was cutting the interest paid because the account looked too attractive compared with rival ISAs.

Doubts over HSBC £20bn retail float

City insiders have played down talk that HSBC could be planning to float off a slug of its UK business with a potential value of £20bn. It was reported that the bank had sounded out investors about floating 30% to deal with the recommendation that banks ring-fence retail operations away from their riskier investment-banking activities.

Bonham Carter to quit Jupiter role

Edward Bonham Carter is stepping aside from his role as chief executive of the £30bn fund manager Jupiter, becoming executive vice-chairman. From next March the 53-year-old is handing over day-to-day management of the business to Maarten Slendebroek, 52, who joined Jupiter from BlackRock just over a year ago.

Coates takes up role as director

Glencore’s integration executive, the veteran miner Peter Coates, has taken a step back to become a non-executive director. He was the only board member to have worked both at Glencore and its merger partner, Xstrata. The company said the integration of the two giant businesses was now complete.

Kentz in $435m Valerus takeover

A British engineering firm has taken a major punt on the US shale-gas boom with a $435m (£265m) takeover. Kentz, which recently rejected takeover approaches, is buying Valerus Field Solutions, which works in the US and Latin America. Nearly half Valerus’s business is in “unconventional” exploration.

Independence could cost Scots

Asda and Morrisons raised the spectre of higher prices for Scots if they vote for independence. The boss of Asda said an independent Scotland may be less attractive to invest in, while Morrisons told the BBC: “Why should customers in Cardiff subsidise those in Aberdeen?”

Merger creates biggest airline

American Airlines and US Airways have finally completed their merger to create the world’s biggest airline. Shares in the new company soared after making their debut on the Nasdaq exchange. The deal faced hurdles from regulators over competition implications.

Lloyds to sell last St James’s stake

Lloyds is selling its final stake in the investment company St James’s Place for a gain of £95m. The bank, which is 32%-owned by the taxpayer, has been selling down its stake progressively but last night said it would offload all its remaining 21%.

Instant premium at Nationwide

Nationwide Building Society’s £550m issue of new-style core capital deferred shares began trading on the London Stock Exchange yesterday. They immediately jumped 10% from an initial £100 each to £109.95. The shares pay a hefty 10.25% coupon.