Overseas news
Gold prices surged while the main US stock indices rallied. This happened as US President Donald Trump announced revised 25% tariffs on all steel and aluminum imports.
Gold is viewed as a safe haven asset and so it may see increased demand when there’s uncertainty in the markets.
Additionally, President Trump made comments about investigating Treasury debt payments for fraud, leading some to expect less debt issuances in the future. The president also suggested that the US debt load might not be as high as $36 trillion.
Selling debt securities such as Treasury notes and bonds is 1 way that a government can raise money for its public works and other projects.
Local developments
Net inflows of foreign direct investment (FDI) into the Philippines dropped by 19.8% year-on-year to reach $901 million in November, according to preliminary data from the Bangko Sentral ng Pilipinas (BSP).
FDI is an important source of external financing for developing countries. It refers to a substantial stake in, or complete ownership of, a company or project by a foreign organization or government.
Declining FDI could indicate there’s less “new” money entering the country’s financial system to provide more jobs and help the economy grow.
Meanwhile, the Department of Agriculture (DA) is considering imposing a maximum suggested retail price for pork.
This is due to elevated prices and potential profiteering, with pork prices nearly double the farmgate price, or the price received by farmers for the sale of their produce.
If this happens, it may have an impact on the prices of common dishes and can end up affecting many Filipino consumers.
Further, the Maharlika Investment Corp. (MIC) and Thailand’s Charoen Pokphand Group Co., Ltd. (CP Group) signed a memorandum of agreement to establish a private equity fund to raise up to $1 billion for investment in agriculture, digital innovation, and sustainable energy.
The MIC oversees the Maharlika Investment Fund, a sovereign wealth fund that is expected to generate income for the government and help promote economic development.
Today’s news isn’t very positive, and so you might want to avoid making big decisions that affect your investments right now. Consider following your strategy while staying updated on what’s going on.
