Overseas news
International oil prices rose to multi-week highs on Monday. Increases ranged between 0.9% and 1.1%, brought about by the weakened US dollar and uncertainty over US-China trade talks this week.
A trade deal between the 2 countries could have an impact on the global economic outlook, which may then affect the demand for oil.
Relatedly, China’s overall exports grew 4.8% year-on-year in May, a slowdown from the 8.1% increase in April. This happened as exports from China to the US dropped significantly by 34.5%.
The slower export growth may reflect the impact of steep US tariffs on Chinese products. Together, these countries make up a huge share of the global economy and so their relations and economic conditions are of concern to investors in those and other nations.
Meanwhile, Japan’s gross domestic product (GDP) shrank by 0.2% quarter-to-quarter in Q1 2025. This was an improvement from the initial forecast of a 0.7% decrease as private consumption showed minimal growth.
The GDP is an indicator of an economy’s health since it reflects how much a country has created in terms of products and services. A country is in a recession when its GDP contracts for 2 quarters.
Local developments
Bad debts held by Philippine banks increased in April, as the non-performing loan (NPL) ratio reached 3.39%. This marks a 5-month high and reflects P516.12 billion in unpaid loans.
An NPL ratio indicates the percentage of a bank’s loans that are considered “bad,” which can mean impaired, in doubt or litigation, or have signs that foreclosure of collateral will be necessary for full repayment.
Meanwhile, the Department of Agriculture will lower the maximum suggested retail price of imported rice from P45 per kilo to P43 per kilo starting July 1, in response to a decline in global rice prices.
Reduced rice prices could help ease inflation, although the inflation rate is affected by many factors that can cause changes from one month to the next.
The latest news shows uncertainty but isn’t pointing strongly in a particular direction. It might be ideal to stay cautious with your investing decisions for now.
