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Overseas news
US President Donald Trump rejected Iran’s response to the latest US peace plan. The counteroffer included demands for sanctions relief, compensation, and control over the Strait of Hormuz.
President Trump called the demands “unacceptable” and warned that the current ceasefire is about to collapse.
The US-Iran situation has caused volatility across global markets as it triggered a major oil supply disruption, leading to steep increases in fuel costs and the prices of goods.
Meanwhile, Japan’s household spending fell 2.9% year-on-year in March 2026. Spending has declined for the 4th straight month and is worse than the expected 1.3% drop. This happened despite a continued rise in wages.
Consumer spending is an important contributor to economic output. Reduced consumer demand could slow down an economy.
Local developments
Foreign direct investment (FDI) inflows fell nearly 31% year-on-year to hit $590 million in February 2026. However, this was 33% higher than in January.
The YoY decline reflects cautious investor sentiment amid global risks and high interest rates.
FDI is an important source of external financing for developing countries. It refers to a substantial stake in, or complete ownership of, a company or project by a foreign organization or government.
Additionally, research firm BMI revised its forecast for Philippine household spending growth in 2026 down to 4.4% from 4.5%. BMI said high inflation and surging oil prices could weigh on consumer demand.
Meanwhile, the Department of Agriculture (DA) is bracing for a strong El Niño that is expected to cut farm output by 20–30%. The measures include climate-resilient seeds, solar-powered irrigation, crop diversification, and rice imports from Vietnam.
If effectively implemented, such measures may help with food security and keep prices stable.
Further hostilities in the Middle East remain a strong possibility and the global effects continue to be seen. For now, you may want to remain cautious with your investing decisions.
