Overseas news
US Treasury Secretary Janet Yellen warned that a government shutdown would risk slowing momentum in the economy should Congress fail to pass a short-term funding measure before the current budget year ends on September 30, 2023.
In the event of a US government shutdown, the Bureau of Labor Statistics (BLS) said that it would stop releasing key inflation and unemployment figures, which would make it difficult for the US Federal Reserve (the Fed) to interpret the state of the US economy.
A government shutdown would cause non-essential operations to temporarily stop. If it happens, this shutdown will probably cause a lot of trouble for the US and its economy, especially if it drags on for long.
Local developments
The National Food Authority (NFA) Council increased the purchasing price for dry and wet palay from P19 and P16 per kilo to P23 and P19 per kilo, respectively.
This is a bid to improve the income of farmers, who have been concerned about the effects of rice importation.
The House of Representatives approved on second reading a bill that seeks to impose a 1% to 5% margin-based royalty on the income of metallic mining operations as well as a 1% to 10% windfall profits tax.
This measure has the potential to add to the government’s take while also simplifying the tax calculation of covered businesses.
Gasoline prices rose for the 10th consecutive week by P2 per liter, or a cumulative P11.85 per liter. This reflects tighter oil supply due to the voluntary production cuts of Saudi Arabia and Russia.
Such production cuts are normally done to regulate fuel prices by controlling the amount of oil available in the international market.
The situation in the US likely has the largest potential effect of today’s news, although it isn’t sure that the shutdown will actually happen. For now, you may want to stay updated with events so you can make the right decisions for your investments.
