The door has been left open for Sagicor Financial to accept an acquisition offer better than the US$536Mn one now on the table from Canadian company Alignvest Acquisition II Corporation. Sagicor Financial Corporation group chief operating officer Ravi Rambarran revealed on Wednesday that the possibility of a takeover battle is covered in the Arrangement Agreement between the two entities. The Arrangement Agreement said Sagicor was free to negotiate with other entities offering a “superior” proposal once it gave Alignvest adequate notice. The Canadian company has also negotiated the right to increase its offer in those circumstances. Officials said once regulatory approval was received, Sagicor Financial would be listed on the Toronto Stock Exchange and delisted from the Barbados Stock Exchange, the Trinidad and Tobago Stock Exchange and the London Stock Exchange.

 (Source: NationNews)

Republic Financial Holdings Limited (RFHL) yesterday confirmed that it has en­tered in­to an agree­ment to ac­quire Scotia bank’s banking operations in nine Caribbean countries. The banks being acquired are in Guyana, St. Maarten, Anguilla, Antigua and Barbuda, Dominica, Grenada, St. Kitts and Nevis, St. Lucia, and St. Vincent and the Grenadines for US$123Mn. According to the company’s chairman, this acquisition represents another major milestone for the Republic Group. As it grows and acquire significant positions in its existing markets, and that it is important that the company continue to broaden its footprint, regionally and internationally. Republic stock price closed trading on Wednesday at $106.72 on the Trinidadian Stock Exchange and has a YTD growth of 5.41%.

(Source: The Guardian)

Salada Foods earned net profit amounting to $219.17Mn (EPS: $2.12) at the end of its financial year in September 2018, which represents a 69% increase over the $68.6Mn (EPS: $0.67) earned over the same period last year. This was driven by an increase in sales which saw a $169.7Mn growth over the $871.7Mn generated in 2017, to close 2018 at  $1.04Bn. Salada stock price closed at $25.50 at the end of trading Wednesday, and has grown by 120% for the year thus far. The stock currently trades at a P/E of 10X  which is below the main market manufacturing average of 16X earnings.

(Source: JSE)

The Federal Reserve issued a cautionary note Wednesday about risks to financial stability, saying trade tensions, geopolitical uncertainty and a build-up in corporate debt among firms with weak balance sheets pose strong threats. In a lengthy first-time report on the banking system and corporate and business debt, the Fed warned of "generally elevated asset prices that appear high relative to their historical ranges”. In addition, the central bank said on-going trade tensions, which are running high between the U.S. and China, coupled with an uncertain geopolitical environment could combine with the high asset prices to provide a notable shock.

(Source: CNBC)

Morgan Stanley has warned of higher car prices following signs of further escalation in the U.S.-China trade war. U.S. Trade Representative Robert Lighthizer announced Wednesday that he was examining ways to raise duties on Chinese vehicles to 40%, which is the tax that Beijing now levies on American-made cars. Such tensions are likely to hurt both auto consumers and manufacturers according to Morgan Stanley. According to the company’s auto analyst, Adam Jones, The auto industry is the quintessential global supply chain  and any disruption of trade is going to lead to inflation.

(Source: CNBC)

Scotiabank Jamaica and Scotiabank Trinidad & Tobago have entered into agreements to sell their respective subsidiaries: Scotia Jamaica Life Insurance Company and Scotia Life Trinidad and Tobago Limited to Sagicor. Scotiabank announced that the move is part of its strategy to focus the Bank's efforts on its core markets with significant scale. Scotia noted that the transactions are not financially material to the company and that its common equity tier one capital ratio will increase by approximately 10 basis points on closing.

(Source: NASDAQ)

The company is offering up to 50Mn Class B participating and voting shares without par value at the Subscription Price of J$130.00 (being the equivalent of US$1.00) per Share in Jamaica and US$1.00 per Share in Trinidad and Tobago. The capital raised will be invested in its Investment Company to facilitate investments in renewable energy projects in Jamaica, Trinidad and Tobago and the wider Caribbean region. The Offering will open at 9:00 a.m. on December 3rd, 2018 and closes at 4:30 p.m. on December 14th, 2018, subject to the right of the company to extend the closing date for any reason.

(Source: JSE)

Barbados is on a countdown to a target that will place the country’s dollar in a position to once again assure local and international investors of its firmness as a currency in which to invest. The aim is to return the island’s foreign exchange reserves to and above the Bar$1 billion mark that ensures the exchange rate of Bar$1 equaling 50 cents the US remains unchallenged. The Prime Minister recently spoke of the reserve target last Sunday when she signed a US$100 million loan from the Inter-American Development Bank to finance a macroeconomic program

(Source: CaribbeanLife News)

Market sentiment took a hit after U.S. President Donald Trump said he expected to move ahead with raising tariffs on $200 billion in Chinese imports to 25% from the current 10%. In an interview with the Wall Street Journal, Trump said it was "highly unlikely" he would accept China's request to hold off on the increase, which is due to take effect on January 1. The president's comments come ahead of a meeting between Trump and his Chinese counterpart Xi Jinping at the G20 summit in Argentina at the end of the week. 

(Source: Investing.com)

(Bloomberg)  The global economy is headed into the final stretch of 2018 in weakened shape, handing investors renewed reason to question how much central banks will be able to tighten monetary policy next year. Fresh data from the world's third and fourth largest economy on Monday added to the concern. A manufacturing gauge in Japan dropped to the lowest since early 2016, and business confidence in Germany fell for the third month. The slowdown comes against the backdrop of volatile markets and a burgeoning trade war that has implications for monetary policy worldwide. The  European Central Bank has a crucial meeting in December where its due to confirm the end of next asset purchases, a key crisis era tool. The US federal reserve looks set to raise interest rates again next month but may be more cautious in 2019.