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Overseas news
US and global stock markets rose on Thursday while US Treasury yields declined. This was driven by signs of a cooling US labor market and as the US Federal Reserve (the Fed) hinted at a possible rate cut this month.
New applications for jobless benefits grew higher than expected while hiring slowed in the private sector.
A slowing demand for workers may prompt the Fed to cut interest rates. This is because lower rates make it less costly to borrow money, which could help boost economic growth and activity.
In China, the decline in new home prices is expected to slow, according to a Reuters survey of economists.
The poll forecasts a milder 3.8% decline in 2025, a dip of just 0.5% in 2026, and modest growth for 2027. Government policies helped slow the decline but fell short of resolving the property crisis.
China’s massive property sector was significantly affected after large real estate developers were hit by financial troubles. This, in turn, added to the country’s economic challenges.
Local developments
The national government’s debt soared to a record P17.56 trillion as of July 2025. This is an 11.9% jump from the previous year, exceeding the initially projected full-year total of P17.35 trillion.
While government debt isn’t automatically a bad thing, it can cause challenges if the country has a hard time repaying it due to its size and future economic conditions.
Meanwhile, President Ferdinand Marcos Jr. enacted a new law revamping the tax system for large-scale metallic mining.
The new law introduced royalties and profit-based taxes to enhance government earnings and ensure that affected communities can benefit from mining revenues.
Additionally, the Philippine peso strengthened to P56.98 against the dollar on Thursday. This happened amid growing expectations of a Fed rate cut.
Lower interest rates tend to weaken a country’s currency as investors look for higher returns elsewhere.
The anticipated Fed rate cut may cause volatility in the global markets, though it’s not yet clear what might happen in the long term. For now, you may want to avoid making big changes to your portfolio.
