Overseas news
US stocks rose on Monday while international oil prices dropped by more than 1%. This happened amid reports of a possible truce between Israel and Iran.
The conflict had not disrupted crude supply, and the drop in oil prices helped ease fears of inflation rising faster than expected.
Changes in oil prices can affect many industries, including transportation and manufacturing. In turn, consumers can be affected directly (through fuel costs) and indirectly (through the costs of products and services).
Meanwhile, bond investors are pulling back from long-term US Treasuries. Low demand was seen amid expectations that the US Federal Reserve (the Fed) will keep interest rates unchanged and as the chances of a US recession faded.
Long-term Treasury bonds tend to be more attractive when rates are expected to fall. That’s because the older bonds will give a higher yield than those that are released after a rate cut.
Investors are also concerned over US President Donald Trump’s proposed tax and spending bill, which is predicted to increase the US budget deficit.
Local developments
In April, bank-processed remittances from overseas Filipinos climbed by 4% to reach $2.66 billion. This is the quickest year-on-year growth since December 2022.
Remittances provide a crucial financial flow to the Philippines. They help increase the amount of money that is spent and saved locally.
Meanwhile, the Department of Finance (DoF) plans to revive efforts to pass a general tax amnesty bill in the 20th Congress, following an unsuccessful attempt in 2019.
The previously proposed bill sought to make it easier for delinquent taxpayers to pay their unsettled obligations. Through the renewed push for general tax amnesty, the DoF aims to generate additional revenue for the government.
Additionally, the Department of Agriculture aims to combat rising prices and local shortages for pork by implementing a temporary suggested retail price scheme for imported pork.
If effective, the move to stabilize food prices may provide relief to consumers and help keep inflation manageable.
The latest news is mixed, and the Iran-Israel conflict may have a bigger effect over time. However, it may be too soon to tell how things will unfold and so you may want to stay cautious with your investing decisions for now.
