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Overseas news
Eurozone businesses remain optimistic about growth despite pressures to stay profitable that are partly brought by trade tensions, according to a survey by the European Central Bank (ECB).
The ECB is responsible for the Eurozone’s monetary policy. The central bank looks at the region’s economic health when deciding what to do with interest rates.
Meanwhile, China has maintained its benchmark lending rates as expected. This happened as the country saw slightly better-than-expected economic data for the 2nd quarter.
Benchmark lending rates influence how much companies must pay when borrowing money to grow their business. Lower rates may lead to an increase in economic activity, and the opposite may happen when rates are high.
Local developments
The Philippine government aims to raise P200 billion by launching its first Retail Treasury bond (RTB) offering of the year this quarter.
The government issues RTBs to raise funds for its projects while making bonds more affordable for individual investors.
In October, the Philippines and the European Union (EU) plan to continue their Free Trade Agreement (FTA) talks after successfully finishing the 3rd round of negotiations. The next round will involve market access negotiations.
An FTA can encourage increased commerce between the involved parties, which may be helpful as countries navigate a period of heightened trade tensions.
In other trade-related news, Philippine President Ferdinand Marcos Jr. is set to meet with US President Donald Trump this week to potentially secure a more favorable trade deal before the August 1 deadline.
The US previously announced a 20% tariff on all imports from the Philippines, and it is set to take effect on August 1.
The latest news shows little hint of big changes happening right away, though the outcome of trade negotiations may have a bigger impact over time. For now, you may want to continue following your strategy if it still works for you.
