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Borrowing from Tomorrow

STOCK PHOTO | Image from Freepik

On July 23, President Ferdinand Marcos, Jr. had just arrived from a five-day official visit to the US, where he came home with US President Donald Trump’s rather condescending final 19% tariff on Philippine exports to the US. It seems that there was no time for President Marcos Jr. to review and edit the State of the Nation Address (SONA) that he delivered on July 28, because he made no mention of the measly 1% tariff reduction grudgingly given by Trump, which might affect the vulnerable developing Philippine economy. He in fact started his SONA with, “…maganda ang ating ekonomiya (our economy is doing well).” He then promised several big infrastructure projects and socio-economic programs, assured more classrooms and free health services, more jobs, more agriculture, more production. But where’s the money for these, coming from?

BusinessWorld’s alarming front page banner headline on July 31 urged focusing on an economy in distress: “PHL debt hits record-high P17.27 trillion.”

The National Debt is the total amount owed by the Philippine government (NG) to creditors such as international financial institutions, development partner-countries, banks, global bondholders and other investors.

Domestic debt, which comprises 69.2% of total debt, is composed of government securities, increased by 13% to P11.95 trillion as of end-June from P10.57 trillion in the same month last year.

Foreign debt is, at P4.91 trillion or 30.8% of the total, composed mainly of P2.71 trillion in government securities and P2.6 trillion in loans. External debt securities consisted of P2.29 trillion in US dollar bonds, P252 million in euro bonds, P59.32 billion in Japanese yen bonds, P56.38 billion in Islamic certificates, and P54.77 million in peso global bonds.

The Bureau of the Treasury said it prioritizes domestic borrowings because it is “consistent with the government’s goal to boost the local capital market while lowering foreign exchange risks and building investor trust in Philippine-issued securities,” BusinessWorld reported. Domestic borrowings of the Government are from the people and businesses directly.

In bristling reaction to the P17.27-trillion national debt, Senator Panfilo Lacson warned that the national debt might reach as high as P23 trillion by the end of President Marcos Jr.’s term in 2028 due to an increase in borrowings both domestic and external. Mr. Lacson noted that the national debt was only P5.9 trillion by the end of President Benigno Aquino III’s term in 2016. It then rose to P13 trillion by the end of President Rodrigo Duterte’s term in 2022. “Ngayon, three years pa lang tayo, nasa P17.35 trillion (Now, only three years into Marcos Jr.’s term, we are at P17.35 trillion). And Mr. Lacson jabbed at the corruption that diverted loan proceeds into the pockets of government officials: “Ang problema natin, umuutang tayo pero na mi-misuse ’yung inuutang natin. Napupunta sa bulsa nung alam mo na, ’yung matatakaw na kawani ng gobyerno, mapa executive man o legislative branches. (Our problem is, we borrow money but our borrowings are misused. It goes to the pockets of, as you already know, the greedy members of government, be they in the executive or legislative branches.)”

In the same ABS-CBN News program on July 31, the Department of Finance (DoF) said that despite inheriting the larger debt stock, the DoF had already made improvements to the country’s debt statistics by reducing the NG debt-to-GDP ratio to 60.7% in 2024 via a prudent debt management strategy. With the economy continuing to grow faster — reaching about P36.8 trillion in 2028 — compared to its obligations, the country remains firmly on track to reduce the NG debt-to-GDP ratio to below 60% by the end of the President’s term, the DoF said.

In a BusinessWorld article on the same day of the National Debt uproar, Palace Press Officer Clarissa A. Castro said the DoF considers 70% of gross domestic product (GDP) to be the international threshold for sustainable borrowing, as opposed to the 60% rule-of-thumb that multilateral banks often hold developing countries to. NG debt as a share of GDP rose to 62% at the end of the first quarter, the highest in 20 years. This is a significant jump from the 60.7% posted at the end of 2024, she said.

On ABS-CBN News on Aug. 6, President Marcos Jr. defended himself, saying the government will “slowly bring down” the Philippines’ P17.27-trillion debt, assuring the public that the borrowed funds are being used to generate more jobs and invest in the upskilling of Filipino workers. “Pag talagang mahigpit tayo at tama ang gamit nung ating pondo, mayroon tayo! (If we are really strict, and the funds are put to the right use, we’ll be OK!)” Several analysts earlier expressed concern over the country’s rising debt, but government’s economic managers said the increasing debt was not a cause for worry as long as the country’s economy grows faster, and the debt-to-GDP ratio remains manageable, ABS-CBN reported.

The Department of Budget and Management (DBM) reported the increasing debt service of the National Government: P1.3 trillion in 2022, P1.6 trillion in 2023, and P1.9+ trillion in 2024. The country’s debt service hit a record P2 trillion last year, largely on principal payments, as the government moved to cut mounting obligations, the Philippine Star reported on March 17. Data from the Bureau of the Treasury showed that the government jacked up its debt payments in 2024 by 26% to P2.02 trillion, from the P1.6 trillion it paid in 2023. The debt payment was P6 billion short of the P2.026-trillion debt service program under the General Appropriations Act last year.

But the common “tao,” the ordinary citizen, cannot be assuaged by the mumbo-jumbo of debt-to-GDP growth ratios, the cost-benefit analyses of necessary borrowing for development, nor can the people be fully convinced that these “hulk” loan automatons deliver the goods (loan proceeds) to the rightful end users through operatives who will not be tempted with complicity for side-deals and diversions. It is the people who feel and suffer the burden of the humongous national debt.

To pay off the P17.27-trillion NG outstanding debt as of end-June, each Filipino has to pay around P146,500 — we have borrowed from Tomorrow, literally and figuratively.

Oxfam UK said this on the Philippine debt: “The burden of the debt contracted by the government of the Philippines is borne by the poor, who pay for it in terms of reduced incomes, and the under-funding of the health and education services on which they depend. In stark terms, the debt leads to deprivation and marginalization, wasted lives and even death” (oxfamilibrary).

Former Finance Secretary Gary Teves (2005-2009) said that “it crowds out funding for education, healthcare, and infrastructure. When debt is high, a large portion of the government’s budget will be used to pay our debt, which reduces the portion of the budget that could be allocated to priority projects.”

In his commentary in the Philippine Daily Inquirer of March 6, 2024, Mr. Teves said, “Higher debt-to-GDP ratio hinders more investments. It may lead to concerns among investors about a government’s ability to repay its loans, potentially leading to higher interest rates and reduced investment that could have generated more and better jobs.

“Borrowing domestically crowds out funding for private investors. When the government borrows more funds locally, private investors face higher interest rates since there are less funds available for them to borrow, which can further dampen economic growth.”

Mr. Teves recommended: “The government has to earn more revenues and/or decrease its spending to reduce our national debt.” Revenues can be increased from efficient and honest tax collection and expenses can be reduced by more efficient planning and allocation of funds.

“While borrowing can be a useful tool for necessary expenses and economic development, it is crucial to ensure that borrowed funds contribute to long-term growth. Maintaining a healthy debt-to-GDP ratio is a reflection of wise fiscal choices that safeguard the nation’s financial well-being in the long run,” Teves admonished.

What can we ordinary citizens say, bewildered and frightened as we are by screaming headlines of “PHL debt hits record-high P17.27 trillion”?

We worry about inflation, foreign exchange fluctuations, declining savings and investment rates. We wonder why taxes have been increased to 20% on all bank products, including the erstwhile tax-free foreign exchange deposits and small investments (CMEPA regulation). As small investors, we hurt when T-bill rates are pulled down, and we have to patriotically understand that the lower domestic borrowing cost of government from these T-bills, T-bonds, etc. will fund more government projects and programs for sustainable development. But then again, it angers us that we, the people, are borrowing from Tomorrow to fund Today’s corrupt officials who “make hay while the sun shines” as perquisite to their position and influence.

The World Bank, ADB, and IMF estimated that corruption in the Philippines diverts 20% of the budget to politicians’ pockets. At this rate, it means P2 trillion of the P6.352 trillion aren’t spent on operations, projects, and program expenses, but go to certain government officials. On the production side of the GDP, this means that the impact of the expenses on production and productivity is lessened since less roads, schools, bridges, and other hard structures which would have improved the production and productivity of the public and private sectors. These leaks also mean lower salaries for government employees, including teachers, which would have meant better training and competency which redounds to better students and services to the public (philstar.com, Sept. 30, 2024).

We have borrowed from Tomorrow for our beloved country, today.

God save the Philippines!

 

Amelia H. C. Ylagan is a doctor of Business Administration from the University of the Philippines.

ahcylagan@yahoo.com

Argentines grill up more beef in first half of 2025, reflecting higher wages

STOCK PHOTO | Image by Aleksandarlittlewolf from Freepik

ARGENTINES are once again chowing down on beef, as an economic turnaround has allowed them to fork over more for steaks, a report from the Rosario exchange said on Friday.

The domestic beef market has logged an uptick as wages soar past inflation, the exchange said. Average salaries for registered workers jumped 62.5% in the year to May 2025.

Consumer inflation was contained at 39%, although beef prices rose at a steeper 59% over the past 12 months.

While still a strain, the inflation rate is a significant drop from the triple-digit annual price increases of the recent past. Austerity policies of libertarian President Javier Milei’s have helped cool inflation.

The bump in purchasing power went directly to the dinner table, according to the exchange. Consumers in the South American country went from eating an average of 47.6 kg (104.9 lb) of beef in the first six months of last year to 50.2 kg (110.7 lb) in the same period of 2025.

“As inflation begins to ease and allows the consumer’s pocket to loosen up, albeit slowly … beef consumption tends to recover the place of preference it has historically occupied within the local consumer’s shopping basket,” said the study.

The increased domestic beef consumption so far this year absorbed a supply glut, as exports fell 19% by volume, hurt by a volatile exchange rate, the report said.

“The question going forward is how long consumers will be willing to accept the increased supply without a price adjustment,” the exchange said.

The country is famed for its beef-eating culture, with steakhouses and asado barbecues a frequent dining option.

Argentines had tightened their belts last year due to the high inflation, a recession and rising poverty and unemployment, turning from beef to cheaper meats. — Reuters

Honda Cars Alabang now under Gateway Group

Following the Gateway Group’s takeover of Honda Cars Alabang, the dealership will eventually move to a new location. — PHOTO FROM HONDA CARS ALABANG

LOCATED AT the corner of Alabang-Zapote Road and Investment Drive in the busy Madrigal Business Park in Alabang, Honda Cars Alabang has been operating for over two decades — serving the needs of upscale residential communities like Ayala Alabang, Ayala Hills, BF Homes, Portofino, Tahanan Villace, Versailles, and others.

At the beginning of August, the Gateway Group formally took over the management of Honda Cars Alabang from its previous operator. While promising a “seamless transition,” the Gateway Group said in a release that it will incorporate “its best customer experience practices, making new vehicle ownership and maintenance as hassle-free as imaginable.” A temporary showroom is currently in place to handle sales and service transactions.

This is the first Gateway-operated Honda Cars dealership in the area, and the group’s sixth Honda Cars dealership overall — joining Cainta, Cauayan, Fairview, Marcos Highway, Talisay (Cebu), and the soon-to-be-opened Manila Bay showroom.

Presently, the 3,725-square-meter Honda Cars Alabang facility on Investment Drive can display one vehicle in its temporary showroom, while its service department can accommodate 17 vehicles at any given time, assuring Honda car owners turnaround times “as quick — and more thorough — than independent car-service facilities.” While waiting for their vehicles to be serviced, clients can enjoy amenities at the customer lounge, “where Gateway-level hospitality is always assured,” continued a release from the Gateway Group.

Honda Cars Alabang can be reached at (02) 8424-4056, or through 0939-775-2053 and 0939-795-7344. The dealership will eventually move to a new location at Km. 23 Uding’s Compound, West Service Road, Muntinlupa, Metro Manila.

Petron wins P44-million tax case

PETRON.COM

THE Court of Tax Appeals (CTA) has upheld Petron Corp.’s refund claim of nearly P44 million for excise taxes mistakenly paid on its importation of alkylate.

The tax tribunal en banc denied the Bureau of Internal Revenue’s (BIR) petition, citing the Supreme Court ruling in Petron Corp. v. Commissioner of Internal Revenue (G.R. No. 255961, March 20, 2023), which is now final and executory.

Alkylate is not listed as an excisable article under Section 148(e) of the National Internal Revenue Code (NIRC) nor can it be classified as “other similar products of distillation,” since it is not a direct product of distillation.

“As such, there is no other recourse but for the Court En Banc to order the refund to respondent (Petron) of the total amount of Php43,912,370.00 representing erroneously paid excise tax upon the importation by respondent of alkylate, a non-excisable item,” Justice Maria Rowena Modesto-San Pedro wrote in a 21-page ruling promulgated on Aug. 1.

The tax court quoted the Supreme Court’s decision, emphasizing that the doctrine of strict construction of tax laws in favor of the taxpayer applies, as Petron’s refund claim is based on the absence of a legal basis for the tax, not on a tax exemption.

“The Supreme Court has already ruled that alkylate is not subject to excise tax under Section 148(e) of the NIRC,” the CTA en banc added.

“The Supreme Court ruled that respondent (Petron) is entitled to a refund of excise tax it had paid in connection with its importation of alkylate on various dates from July 22, 2012, to November 6, 2012, considering that there is no law subjecting alkylate to excise tax, as Section 148(e) of the NIRC does not subject alkylate to excise tax.”

The case before the CTA en banc originated from the Bureau of Customs’ (BoC) implementation of a BIR letter dated June 29, 2012.

On July 18, 2012, the BoC issued Customs Memorandum Circular No. 164-2012 implementing the BIR letter, which stated that alkylate is subject to excise tax under Section 148(e) of the NIRC, classifying it as a “product of distillation similar to that of naphtha.”

Following this, Petron imported 9,774,282 liters of alkylate in October 2016 and January 2017. These importations were subjected to an excise tax of P4.35 per liter, totaling P43,912,370, on the basis that alkylate was a product of distillation.

Petron filed an administrative claim for a refund of these excise taxes with the BIR Excise Large Taxpayers Audit Division II on Oct. 8, 2018.

Due to the BIR’s inaction and the approaching two-year prescriptive period, Petron filed a Petition for Review with the CTA in Division on Oct. 12, 2018. — Chloe Mari A. Hufana

Progress in healthcare reforms

STOCK PHOTO | Image from Freepik

In his recent State of the Nation Address (SONA), President Ferdinand R. Marcos, Jr. placed healthcare high on the national agenda, outlining a series of new and expanded initiatives aimed at improving access, affordability, and quality of care for all Filipinos. His speech struck a hopeful tone, signaling the administration’s readiness to invest political capital and financial resources in one of the country’s sectors that need most urgent attention.

The Pharmaceutical and Healthcare Association of the Philippines (PHAP), which represents the biopharmaceutical industry, welcomes these developments. The President’s focus on healthcare reform is both timely and necessary. However, while the direction is encouraging, the road ahead will require careful execution, close collaboration, and a strong commitment to sustainable reforms.

Among the key measures announced is the year-round provision of free dialysis for patients with kidney disease. For those in need of a transplant, the government has increased coverage to P2.1 million from the previous P600,000. PhilHealth will now also cover post-operative services and essential medicines for transplant patients starting this year.

Expanded PhilHealth benefits were also highlighted. These include increased financial coverage for critical procedures such as open-heart surgeries and heart valve interventions, greater support for patients with severe dengue, and enhanced coverage for cataract removal — now up to P187,000. Access to the human papillomavirus (HPV) vaccine is also set to expand.

In addition, the allocation of P1.7 billion for cancer medicines not currently covered by PhilHealth is a noteworthy development. The President also cited alternative sources of assistance for patients, such as the Cancer Assistance Fund (CAF), the Medical Assistance for Indigent and Financially Incapacitated Patients (MAIFIP), the Philippine Charity Sweepstakes Office (PCSO), and the Philippine Amusement and Gaming Corp. (PAGCOR).

These initiatives signal that the government is listening, both to the healthcare community and, more importantly, to the families struggling with high out-of-pocket health expenses.

The plan to establish a network of 53 Bagong Urgent Care and Ambulatory Service (BUCAS) centers across 32 provinces adds to the momentum. These facilities, offering free consultations, X-rays, and laboratory tests, have the potential to bring timely care to underserved communities provided they are adequately staffed and equipped. Complementing this is the PhilHealth Yaman ng Kalusugan (YAKAP) program, which aims to strengthen primary care delivery at the community level.

Taken together, these initiatives reflect a more holistic view of health, one that spans prevention, early detection, treatment, and recovery. However, as with any reform agenda, the ultimate test will lie in execution.

Sustainability is another key consideration. This is where effective public-private collaboration becomes vital. PHAP has expressed its readiness to support government efforts in implementing and strengthening these reforms.

The biopharmaceutical sector plays a central role in ensuring access to life-saving medicines and health technologies. But achieving this requires regulatory agility, particularly in improving the Health Technology Assessment (HTA) process. Delays in HTA decisions can hinder timely access to innovative treatments, especially in a rapidly evolving landscape of scientific breakthroughs.

Streamlining the HTA process does not mean compromising scientific rigor. It means ensuring that assessments are timely, transparent, and responsive to patients’ needs. Striking this balance is essential if the healthcare system is to remain adaptive and relevant.

Equity must also remain front and center. While the reforms address major causes of illness and death such as cancer, cardiovascular disease, and kidney failure, efforts must continue to ensure that the benefits reach those who need them most.

The President’s pronouncements represent a positive and much-needed step forward. But healthcare systems are complex ecosystems that thrive only through coordinated action. Ultimately, what matters most is whether these reforms translate into real, measurable improvements in the lives of ordinary Filipinos by reducing financial hardship and improving health outcomes.

As the Philippines enters a new chapter in healthcare reform, it is clear that no single sector can do it alone. Real progress will require the active collaboration of government, industry, healthcare professionals, and patients united by a shared vision of a future where every Filipino, regardless of income or location, has access to quality, affordable care.

PHAP and the biopharmaceutical industry remain committed to being part of this collective effort. Whether by accelerating access to innovative treatments, supporting regulatory reform, or strengthening health systems, the private sector stands ready to contribute meaningfully to the health and well-being of every Filipino.

 

Teodoro B. Padilla is the executive director of Pharmaceutical and Healthcare Association of the Philippines which represents the biopharmaceutical medicines and vaccines industry in the country. Its members are in the forefront of research and development efforts for COVID-19 and other diseases that affect Filipinos.

French court vetoes return of pesticide in farming law

COMMONS.WIKIMEDIA.ORG

PARIS — France’s constitutional court blocked the re-introduction of a pesticide accused of harming bees, in the latest twist in a fierce political battle in the European Union’s biggest agricultural producer.

The court said the re-authorization of acetamiprid, part of the neonicotinoid group of pesticides banned in France, as proposed under a farming bill passed last month did not provide sufficient safeguards on the use of the crop chemical.

The planned relaxation of France’s neonicotinoid ban fueled opposition to the legislation, with a petition against it gathering over 2 million signatures, a record for a petition on the website of France’s National Assembly.

The court’s ruling is a setback for supporters, including most of France’s farming unions and conservative politicians, including Senator Laurent Duplomb who gave his name to the bill.

They had argued that acetamiprid is authorized elsewhere in Europe, as it does not pose the same risks as other neonicotinoids banned at EU level, and without it crops like sugar beets and hazelnuts face severe disease losses.

However, the FNSEA and JA, two of France’s main farmer unions, welcomed the court’s approval of most of the legislation, including steps to simplify planning permission for livestock buildings and water reservoirs for irrigation.

President Emmanuel Macron, whose centrist allies in parliament were divided over the legislation, would sign the bill into law “as soon as possible” in line with the court’s decision, the Elysee said. — Reuters

Style (08/11/25)

Fendi releases BFF charms, platform sneakers

FENDI unveils a charm-filled world for the Fall/Winter 2025-26 Collection with the launch of the new Fendi BFF Maxi and Mini Charms and Fendi Match Platform Sneakers with Charms. First seen on the Fall/Winter 2025-26 anniversary runway, the charms, part of a limited series, are crafted in upcycled fabrics and fur to combine the brand’s craftsmanship with playfulness and creative circularity. The accessories come in two sizes. Luxurious materials and intricate details such as mini Baguette bags and Fendi dressing bring these characters to life. These include the charm Silvia which is dressed in a mini replica of the equestrian outfit designed by Karl Lagerfeld and worn by a seven-year-old Silvia Venturini Fendi in 1967 in a famous picture. Meanwhile, the new Fendi Match Platform Sneakers with Charms feature a higher platform and playful miniature charms. It now comes with a 5-centimeter platform and a smaller FF logo to give full focus to the interchangeable, removable charms, allowing full customization. Each pair is complemented by a set of three decorative charms that are exclusive to each colorway. The sneakers are available in four color combinations with matching chevron-patterned laces. These are available in selected Fendi boutiques worldwide and on fendi.com.

Nora Hair Salon gets recognition

THE Kami Charisma Japanese Hair Salon Guide (much like the Michelin Guide for top-rated restaurants) is a prestigious annual guide to Japan’s best salons. The Nora Hair Salon has been repeatedly featured and awarded on this prestigious list. With 12 branches in Tokyo and Osaka and three locations in the Philippines (SM North, Makati, and Robinsons Place Manila), Nora is growing in the country through their partnership with Techno Holdings Corp. The salon’s name was inspired by the Norwegian play A Doll’s House, where the main character, Nora, transforms into the ideal woman of a new era. The salon was founded in Aoyama, Japan, in 2007, and it focuses on thoroughly analyzing customers’ hair concerns, offering immersive shampoo experiences, creating innovative and signature styles, and performing precise layering — key traits of a Japanese hair salon they are very proud of. Another feature unique to Nora is the emphasis placed on the shampooing process in their shampoo bed. More than just a relaxing massage, it also encourages hair growth, stimulates blood flow, and, to some extent, has lifting properties. Nora also offers a hair spa. The salon was also a pioneer in Milktea coloring — mixing the color palette in proportions to produce soft and dreamy highlights. Nora Hair Salon will be opening the Nora Lab, its own hairstylist training academy, set to launch this August in Shangri-La Plaza. Two more branches of the salon are opening this year, increasing the total number of Nora Salons to six. Visit @norahairsalon.manila on Instagram for details.

Gap, Banana Republic, Old Navy launch sustainability initiative

GAP, Old Navy, and Banana Republic are stepping up their commitment to sustainability, launching a campaign that encourages customers to reuse, recycle, and make mindful shopping choices. The American apparel brands have launched a new eco-conscious initiative in partnership with MAD Travel, a social enterprise focused on reforestation and community development. Customers who opt to use the store paper bags will be charged a minimal fee of P2 per bag used in-store and ordered online, with 100% of the proceeds directly supporting reforestation efforts in selected areas in the Philippines. Every peso collected will go towards planting trees and helping rural communities through MAD Travel’s environmental programs. MAD (short for Make A Difference) Travel’s mission is to educate local communities about restoration and sustainability in the context of green economies that can end poverty of people and planet. In 2024, the organization’s efforts rehabilitated 4,000 hectares of land in Zambales, working closely with Aeta communities to plant 62,000 seedlings. Gap has stores at SM Mall of Asia, Megamall, Ayala Malls Manila Bay, Abreeza, Glorietta 4, Shangri-La Plaza, TriNoma, Alabang Town Center and Evia Lifestyle Center; Old Navy in Bonifacio High Street, One Ayala, Shangri-La Plaza; while Banana Republic is in Central Square and Rustan’s Makati. Shop online too at gap.com.ph, oldnavy.com.ph, and bananarepublic.com.ph.

New SE HEV variant added to Toyota Yaris Cross lineup

The Toyota Yaris Cross SE retails for P1.69 million. — PHOTO FROM TOYOTA MOTOR PHILIPPINES

TOYOTA MOTOR PHILIPPINES (TMP) added the new Yaris Cross SE variant to top the hybrid electric vehicle (HEV) offerings of the Yaris Cross model line. In a release, TMP said that the grade is “crafted for those who want a sportier edge, a smarter drive, and a more sustainable ride.”

The SE is distinguished by a front bumper with grille garnish, rear bumper with chrome garnish, a rear spoiler, and fog lamp garnish. Other exterior upgrades include SE-exclusive dynamic front and rear skirts, a roof spoiler, and garnishes on the back door and grille.

Inside is a digital rearview mirror with front and rear digital video recorder, additional ambient lighting, a digital signal processor for richer and crisper audio, and premium touches like an upgraded horn. As in the V and S grades, the SE gets the Toyota Safety Sense suite of driver assistance features.

For more information, visit any Toyota dealership nationwide or www.toyota.com.ph/yaris-cross. The Toyota Yaris Cross SE retails for P1.69 million.

Peso may be range-bound as markets eye Fed

BW FILE PHOTO

THE PESO could move sideways against the dollar this week as markets await developments regarding the US Federal Reserve’s leadership amid reports that the Trump administration is now searching for a new central bank chief.

The local unit dropped back to the P57 level on Friday, weakening by 14 centavos to close at P57.11 per dollar from its P56.97 finish on Thursday, which was a two-week high.

Meanwhile, week on week, the peso jumped by P1.035 from its P58.145 close on Aug. 1.

“The dollar-peso closed a bit higher. The market initially reacted to the weaker dollar-peso overnight due to strengthened dovish Fed bets. However, strong buying interest ensued later on and rebounded to the high of P57.22, mainly due to profit taking and ahead of the weekend,” a trader said in a telephone interview.

The peso was also weighed down by data showing that the Philippines’ debt-to-gross domestic product (GDP) ratio hit a 20-year high in the second quarter, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The government’s debt as a share of GDP was at 63.1% at the end of June, the highest ratio since 2005.

This was up from the 62% seen at end-March and the 60.9% posted a year earlier. It is also above the 60% debt-to-GDP threshold considered by multilateral lenders to be manageable for developing economies.

The government aims to bring down the debt ratio to 60.4% by the end of 2025 and to 56.9% by 2028 as part of its fiscal consolidation efforts.

For this week, the trader said markets will monitor any comments about the Fed from US government officials. “The market will await developments on the Fed’s staff and if they will get replaced as their independence is threatened.”

The trader sees the peso moving between P56.90 and P57.30 per dollar this week, while Mr. Ricafort expects it to range from P56.75 to P57.35.

The dollar firmed on Friday but was heading for a weekly fall as weakening economic data leads traders to price in the probability of more interest rate cuts this year, and as investors evaluate US President Donald J. Trump’s nominations to the US Federal Reserve, Reuters reported.

The dollar has dropped since the prior week’s jobs report for July showed employers added fewer jobs than expected during the month, while job gains from previous months were also revised down sharply. Other data including a weakening housing market and services sector data are also pointing to a slowing economy.

Mr. Trump on Thursday, meanwhile, said he will nominate Council of Economic Advisers Chairman Stephen Miran to serve out the final few months of a newly vacant Fed seat, while the White House seeks a permanent addition to the central bank’s governing board and continues its search for a new Fed chair.

Bloomberg News reported on Thursday that Fed Governor Christopher Waller, who voted for a rate cut in the Fed’s last meeting, is emerging as a top candidate to be the central bank’s next chair when Jerome H. Powell’s term ends in May.

Mr. Trump has pressured Mr. Powell all year to cut interest rates, building on his past comments critical of the Fed chief that emerged during his first term as president shortly after he elevated Mr. Powell to the Fed chair role. Mr. Powell’s term ends in May. Critics have said the president should let Fed chair Powell complete his term without interference.

Traders now see a 89% chance of a rate cut at the Fed’s September meeting, and are pricing in 58 basis points in cuts by yearend.

Mr. Trump also fired a top Labor department official on the heels of the weak jobs report, raising concerns that the Trump administration may have a larger influence over economic releases.

The dollar index nonetheless gained on Friday. It was last up 0.21% on the day at 98.19 but on track for a weekly loss of around 0.5%.

The next major US economic release will be consumer price data for July due on Tuesday, which will be watched to see whether tariffs are reigniting inflation pressures.

The Fed now faces risks to both its inflation and jobs goals, with policymakers needing to balance which seems the more serious threat in deciding whether it is appropriate to reduce interest rates, St. Louis Fed President Alberto Musalem said on Friday. — Aaron Michael C. Sy with Reuters

How PSEi member stocks performed — August 8, 2025

Here’s a quick glance at how PSEi stocks fared on Friday, August 8, 2025.

How minimum wages compared across regions in July

(After accounting for inflation)

In July, inflation-adjusted wages were 18.4% to 25.9% lower than the current daily minimum wages across the regions in the country. Meanwhile, in peso terms, real wages were lower by around P81.47 to P139 from the current daily minimum wages set by the Regional Tripartite Wages and Productivity Board.

How minimum wages compared across regions in July

Stocks to move sideways as market seeks leads

BW FILE PHOTO

PHILIPPINE SHARES may continue to move sideways as investors search for fresh catalysts, including tariff policy announcements from the Trump administration and listed companies’ financial results.

On Friday, the Philippine Stock Exchange index (PSEi) dropped by 0.39% or 25.31 points to close at 6,339.38, while the broader all shares index fell by 0.22% or 8.65 points to 3,767.41.

Week on week, the PSEi climbed by 0.53% or 33.25 points from its 6,306.13 finish on Aug. 1.

“The PSEi went sideways this week as investors weighed the lift from the second quarter gross domestic product (GDP) and cooling July inflation against global policy uncertainties and potential third quarter growth risks,” online brokerage 2TradeAsia.com said in a market note.

“For the past nine weeks, the local market has been moving alternately between gains and losses. The lack of clear direction reflects investors’ indecisiveness as they continue to weigh mixed factors from prospects of further policy easing by the BSP (Bangko Sentral ng Pilipinas), risks and uncertainties on the US’ protectionist trade policies, and the overall status of the general economy,” Philstocks Financial Inc. Research Manager Japhet Louis O. Tantiangco said in a Viber message.

Philippine GDP expanded by 5.5% in the April-to-June period, slightly faster than the 5.4% growth in the first quarter but slower than the 6.5% expansion in the second quarter last year. This matched the lower end of the government’s 5.5%-6.5% growth target for this year.

For the first half, GDP growth averaged 5.4%, slightly below the government’s goal.

Meanwhile, Philippine inflation slowed to a near six-year low of 0.9% in July from 1.4% in June and the 4.4% print in the same month a year ago. This marked the fifth straight month that it settled below the central bank’s 2-4% target.

Year to date, the consumer price index averaged 1.7%, slightly higher than the BSP’s 1.6% full-year forecast.

For this week, Mr. Tantiangco said the market will look for leads.

“Investors are expected to watch out for updates regarding US President Donald J. Trump’s trade policy plans, primarily on his chips and semiconductor tariffs. Investors are also expected to continue monitoring second quarter corporate reports,” he said. “Prospects of further easing by the BSP following supportive economic data this past week may continue to give the market support.”

“Chart-wise, based on its performance from mid-July to present, the local market is still bearishly biased. To negate this trend, the market must first go above its most recent low (6,222.04 last July 31) and most recent high (6,466.10 last July 24),” he added.

2TradeAsia.com put the PSEi’s immediate support at 6,300 and resistance at 6,600.

“The ongoing second quarter earnings season will serve as a critical period for validating fundamental theses, which have shifted amidst evolving macroeconomic pressures,” it said. — Revin Mikhael D. Ochave

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