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Overseas news
In the US, the Department of the Treasury now expects to borrow $574 billion in Q1. This is $3 billion less than its initial borrowing projection.
Governments can borrow money for varied reasons, including spending on infrastructure and paying for day-to-day operations. Loaned money is used to augment other sources of income, including taxes.
Further, the US slashed its tariff rate on India from 50% to 18% on Monday. This was in exchange for India halting imports of Russian oil.
Many industries, including transportation and manufacturing, are affected by oil prices, which in turn are greatly influenced by international demand and trade dynamics.
Meanwhile, the British pound was steady against the US dollar on Monday as markets expect the Bank of England to keep interest rates unchanged in its meeting this week.
When interest rates are kept at a certain level, they can help keep a country’s currency strong.
Local developments
Finance Secretary Frederick Go said that the government plans to spend P1.44 trillion this quarter to support a rebound in the Philippine gross domestic product (GDP) following last year’s slowdown.
GDP is the total value of all final goods and services that are produced within a country’s borders in a certain period. It helps indicate the strength or weakness of that country’s economy.
Also, the Philippines’ Manufacturing Purchasing Managers’ Index rose to 52.9 in January, its strongest figure in 9 months, according to S&P Global.
This index measures the country’s factory activity and shows if market conditions are seen as expanding (index over 50), staying the same (index at 50), or contracting (index under 50).
There are no hints of substantial market movements in the latest news. You may want to wait for stronger signals of change before making big portfolio decisions.
