Overseas news
US wholesale inventories rebounded slightly, increasing by 0.2% month-on-month in October. This is a reversal of a 0.2% decline in the preceding month.
Wholesale inventories refer to the number of unsold goods that wholesalers hold. It could reflect the strength or weakness of retail demand during a certain period, which can then affect the growth or contraction in the country’s gross domestic product (GDP).
In China, the consumer price index (CPI) rose 0.2% year-on-year in November, down from the 0.3% increase in October. This is due to declining fresh food prices and factory deflation, which persisted despite the government’s efforts to stimulate demand.
CPI is a standard “basket” of goods and services that a typical family spends on. Headline inflation looks at price changes in this index.
Meanwhile, Japan revised its Q3 GDP growth to 1.2% year-on-year, higher than the previously reported 0.9%. This means the economy grew faster than initially reported, fueling market expectations of an interest rate hike by the central bank.
A central bank may raise interest rates to keep inflation in check as its country’s economy grows. Changes to the interest rate can affect many aspects of finance, like borrowing costs, currency strength, and investment performance.
Local developments
The Export Development Council (EDC) said that it will lower the export targets for 2025 amid uncertainties in the global environment.
The council also projects that the country will miss its 2024 export target, which was set at $143.4 billion in the Philippine Export Development Plan (PEDP). The EDC is a public-private partnership that oversees the PEDP.
President Ferdinand R. Marcos Jr. signed into law a bill that will triple the budget for rice competitiveness to P30 billion annually over 6 years in an effort to boost food security amid soaring prices.
The law amends the Agricultural Tariffication Law (ATL) of 2019 and extends the lifespan of the Rice Competitiveness Enhancement Fund (RCEF), which is intended to support local farmers.
With the lack of major changes in the latest news, this might not be the time for big investing decisions. You may want to stick to your strategy if it still works for you while staying updated on further developments.
