<p><strong>GLOBAL: </strong>Japanese authorities likely unleashed a JPY 5.33 trillion (USD 34 billion) currency intervention on Friday to support the yen, after weeks of pressure on the local currency.</p>

<p><strong>Market impact: </strong>The yen is up 4% against the US dollar, reaching 157, which pressured Japanese equities as exporter shares declined.</p>

<p><strong>However, the fundamentals behind the yen's weakness have not changed. </strong>Without a significant narrowing of the interest rate differential between the US Federal Reserve and the Bank of Japan, the yen remains structurally weak.</p>

<p><strong>LOCAL:</strong> The Department of Finance is proposing tax hikes on sweetened beverages, e-cigarettes, single-use plastics, and luxury vehicles to offset losses from raising the personal income tax exemption threshold.</p>

<p><strong>Market impact: </strong>The PSEi advanced after US-Iran talks, while the USD/PHP weakened to 60.93 amid US dollar weakness.</p>

<p><strong>The measures could generate PHP 129.68 billion annually, </strong>offsetting the PHP 81.73 billion loss from raising the personal income tax-exempt threshold.</p>