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Overseas news
New applications for US unemployment benefits fell by 4,000 to hit 217,000. Meanwhile, continuing jobless claims rose by 4,000 to reach 1.955 million.
A drop in initial claims could hint that the US labor market remains resilient amid uncertainty over changes in US economic policies. However, higher continuing claims may show that those already receiving benefits are taking longer to land new jobs.
Central banks look at indicators of economic health like the unemployment rate when deciding whether to cut or raise interest rates.
Further, the US Federal Reserve (the Fed) does this with the intention of achieving its targets of maximum employment and price stability.
Interest rate decisions matter to investors since they may directly or indirectly affect the value of investments.
Local developments
Healthcare spending as a share of the economy rose in 2024 to its highest level in 3 years, reaching 5.9% of the gross domestic product (GDP). This was according to preliminary data from the Philippine Statistics Authority (PSA).
The increase in health spending may signal a boost in the financial capacity of Filipino households, a rise in the prices of medical goods and services, a realignment of budgeting priorities, or a combination of the 3.
Meanwhile, the country’s budget deficit surged to P241.6 billion in June, growing by 15.6% year-on-year and 66.5% from May. This happened as government spending outpaced revenue.
During a visit to Washington, D.C. in the US, President Ferdinand Marcos Jr. secured over $21 billion in investment pledges from US firms, including commitments in infrastructure, healthcare, semiconductors, and clean energy.
If realized, new foreign investments may bring in more jobs and boost the government’s revenue, helping the economy grow.
Further, the Securities and Exchange Commission (SEC) is offering a 30% discount on registration fees to companies that will file public offerings, including initial and follow-on offerings, until December 31, 2025.
The SEC will also streamline the approval process to a 45-day timeline. These moves are aimed at increasing participation in the local capital market.
Today’s news shows no major changes that may move the markets significantly in the short term. For now, you might want to maintain your strategy while monitoring developments.
