It’s Friday, July 18.

Good morning. Let’s end this week strong. Today’s mix is brewed for the curious and caffeine-fueled. From PhilHealth is back with a ₱53B lifeline in 2026 to China’s trying to muscle in on Panama’s ports, the UK just powered up a monster AI supercomputer, and workers are caught between layoffs and innovation. Plus: a ₱200-budget explainer, a local-friendly tool list, and one 5-minute jab that could change cancer care forever.

Got ideas or feedback? Email us anytime at [email protected].

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What changed:
In 2025, PhilHealth’s budget allocation was removed during bicameral deliberations. Lawmakers argued that the agency should first utilize its substantial reserves—estimated at ₱348 billion by end-2025. A previous proposal to allot ₱74.43 billion to PhilHealth was scrapped.

Updates from PhilHealth:
President and CEO Dr. Edwin Mercado confirmed that benefit coverage rates were increased to 50% in December 2024. The agency targets to reduce patients' out-of-pocket share from 47% to 25%, especially for public hospital care.

Context:
PhilHealth has faced scrutiny over its fund management. A previous attempt to transfer ₱89.9 billion in unused subsidies to the national treasury was blocked by the Supreme Court following public and institutional criticism.

What’s next:
The 2026 National Expenditure Program (NEP), which formalizes the proposed budget, will be submitted to Congress within 30 days after the President’s State of the Nation Address on July 22, 2025.

PesoTake:
PhilHealth’s 2026 subsidy marks a major policy shift after a year of zero funding. While the fund size is significant, attention will now turn to how efficiently it’s used—and whether it leads to better access, lower medical costs, and stronger public trust.

PSEi: 6,295.55
BSP Rates: 5.25% (borrowing) | 4.75% (deposit) | 5.75% (lending)
🌐 Global Markets
Bitcoin: $117,384
Gold: $3,339.02

💱 Exchange Rates (PHP per 1 unit)

🇺🇸 USD: ₱57.27 (around these values, with slight variations)
🇬🇧 GBP: ₱76.45
🇸🇦 SAR: ₱15.25
🇯🇵 JPY: ₱0.3876
🇪🇺 EUR: ₱66.35
Note: Exchange rates may vary slightly depending on provider.

The Philippine Stock Exchange approved Filinvest Development Corp.’s planned ₱8B perpetual preferred shares offering, with the sale running July 21–31, 2025. The offer includes a ₱6B base plus ₱2B in oversubscription, split into two series: Series A (non-redeemable for 2 years) and Series B (5 years). Proceeds will fund debt refinancing and capital expenses, as FDC ramps up its ₱24B 2025 capex—focused on real estate, power, renewables, and digital upgrades. Listing is set for Aug. 8.

The Philippines’ electronics sector is bracing for impact as a surprise 20% US tariff threatens to derail its $42.6B export goal. SEIPI president Dan Lachica said hopes of hitting $46B are now “tempered.” The tariff puts us on par with Vietnam — erasing a key advantage. A high-level Philippine delegation is flying to Washington this week to negotiate lower rates and pitch an FTA. The US is still our top export partner, but this move could shake investor confidence.

PesoTake: We’re not just playing catch-up — we’re negotiating for survival.

Netflix posted a 16% jump in Q2 revenue to $11.08B, with net income up 46% to $3.1B, beating expectations. Member growth, price hikes, and a growing ad business fueled the surge. The company now expects $44.8B–$45.2B in 2024 revenue, up from earlier guidance. Operating margin rose to 34.1%, and free cash flow hit $2.3B. With hits like Squid Game and Zero Day plus Stranger Things returning, Netflix’s momentum shows no signs of slowing.

Mark Johnson, a former HSBC trader jailed in the US for allegedly rigging forex trades, has been fully acquitted after a nine-year legal fight. Convicted in 2017 for “front-running” a $3.5B trade, Johnson served time in US and UK prisons before a 2023 court ruling overturned the law used against him. A US appeals court has now cleared him. “This is a case that never should have been brought,” said his lawyer Alexandra Shapiro via BusinessWorld.

Translation: Justice delayed—but finally delivered.

China is threatening to block BlackRock and MSC’s $23B bid for 40+ global ports—unless Cosco, its state-owned shipping titan, gets a piece. The deal includes two Panama Canal ports owned by CK Hutchison, a move that’s already sparked geopolitical tension. Hutchison, BlackRock, and MSC are now open to Cosco joining, but exclusivity talks don’t end until July 27. With Trump eyeing control of the canal and Beijing freezing Hutchison-related deals, the port tug-of-war is getting heated.

Let’s be real: many of our heroes in uniform—teachers, nurses, gov’t workers—are underpaid and overextended. With monthly salaries often stuck between PHP 15K and PHP 25K, budgeting feels like an Olympic sport. But even on limited income, smart money moves are possible.

1. Track every peso.
You can’t fix what you don’t see. Use a notebook, Excel, or apps like Moneygment or GoodBudget. Logging expenses sounds boring—but it shows where your “na saan na ‘yung sweldo ko?” moments happen.

2. Automate savings—even small ones.
Set up auto-transfer of PHP 200–500 per payday to a digital bank (Tonik, Maya, CIMB). It’s harder to spend what you don’t see. Over time, this builds your emergency fund quietly in the background.

3. Maximize gov’t benefits.
Fully understand your GSIS, PhilHealth, Pag-IBIG, and SSS perks. You may be eligible for housing loans, calamity loans, and even retirement programs you’re not taking full advantage of.

4. Start a side hustle you can manage.
Selling snacks in school, tutoring after class, online reselling—no shame in the extra income game. The key is choosing something you can sustain without burning out.

5. Avoid salary loans with killer interest.
Many teachers and nurses fall into the utang cycle via quick loans. Instead, look into cooperatives or gov’t-backed loan options with lower interest and flexible terms.

Final advice:
Small salary ≠ small potential. With discipline and resourcefulness, public servants can build savings, invest, and slowly escape paycheck-to-paycheck life.
Being underpaid is a system problem. But fighting back starts with your next financial decision.

Big picture:
England’s NHS just pulled off a first-in-Europe move: rolling out an injectable version of nivolumab (aka Opdivo), a blockbuster immunotherapy drug, to thousands of cancer patients. The jab takes only 3–5 minutes—versus up to an hour via IV. Up to 15,000 patients annually across 15 cancer types, from lung to bladder, are eligible.

Why it matters:
Less time in the hospital means more dignity for patients and more breathing room for staff. The NHS expects to reclaim over 1,000 treatment hours every month—about a full year of hospital time annually—without paying extra. That’s efficiency without compromise, and for a public health system under strain, it’s gold.

So what:
This isn’t just a new method—it’s a symbol of what’s possible when government, pharma, and science collaborate smartly. If this becomes standard across other treatments, the domino effect on global cancer care could be massive. Chemo days may someday feel as outdated as floppy disks.

Scientists at Michigan State University just unearthed a microbial jackpot—literally. While digging up deep soil samples from Iowa and China, they discovered a brand-new phylum of microbes called CSP1-3, living 70 feet underground in the Earth's "Critical Zone" (a.k.a. the planet’s life-support layer).These microbes aren’t lazy. They’re not just surviving; they’re thriving—making up over 50% of the local microbial population and actively purifying groundwater by feeding on carbon and nitrogen. Their ancestors came from hot springs. So yes, they’re deep-soil veterans with spa roots.

Scripps Research just cooked up a potential Alzheimer’s drug from an herb you probably sprinkle on roast chicken. Scientists developed diAcCA, a stable form of carnosic acid, found in rosemary and sage, that fights inflammation in the brain. In mouse trials, it didn’t just slow memory loss—it reversed it. Mice treated with diAcCA had more synapses, better memory, and less brain gunk (a.k.a. amyloid and tau proteins). Bonus: the drug only activates in inflamed areas, which means fewer side effects.

Let’s cut through the noise: the average monthly salary in the formal sector is PHP 44,800. Sounds decent—until you realize it’s not what most people earn.

Median salary? Just PHP 20,583.
Government-reported average? Even lower at PHP 19,436.
Translation: Half the workforce earns below PHP 20K a month—barely enough for groceries, bills, and rent in urban areas.

Metro Manila’s new minimum wage (PHP 695/day, or ~PHP 15,247–18,216/month) is the highest in the country but still nowhere near the estimated PHP 40,000 living wage for a family.

Same jobs, different zip codes: A teacher in Manila earns PHP 25K. In a rural town? PHP 15K. Same workload, 40% less pay.

The silver lining?
Jobs in IT, finance, and BPOs are lifting skilled professionals into the PHP 60K–120K range—especially if you’ve got the certifications to prove it.

But for millions, even with 2025’s 5.5% salary growth, inflation eats most of the gains. Progress is real—but painfully slow.

Striking number to remember:
PHP 19,436 — what the average Filipino earns. If you make PHP 50K+, you're already in the top tier.

We're not poor. We're just wildly unequal.

Elon Musk’s rocket empire is fueling his AI ambitions. SpaceX just invested $2B into xAI—maker of the Grok chatbot—accounting for nearly half of the company’s recent $5B equity raise. It’s one of SpaceX’s biggest investments in another firm and signals Musk’s strategy of using his business empire to fast-track AI dominance. xAI plans to embed Grok into everything from Starlink to Tesla robots. Risky? Sure. But Musk is betting big that Grok can eventually outsmart ChatGPT.

The UK’s most powerful supercomputer, Isambard-AI, is officially online in Bristol. Powered by 5,400 Nvidia GH200 Grace Hopper chips, the machine joins Cambridge’s Dawn to form the backbone of Britain’s public AI infrastructure. Funded by taxpayers, it’ll be used for projects like reducing NHS wait times and tackling climate change. The government also announced “AI Growth Zones” for Scotland and Wales, plus training for 7.5 million workers. Isambard-AI currently ranks 11th in the global supercomputer leaderboard.

Companies slashing staff to chase AI “efficiency” may be setting themselves up for a creative drought. In a Fortune op-ed, Mostly AI exec Alexandra Ebert warns that while AI excels at imitation, it can't invent and cutting the thinkers who can will backfire. With over 64,000 tech layoffs this year (many AI-related), she argues that real innovation still needs humans. “AI doesn’t invent. It recycles,” she writes. Translation: You can’t automate your way to a breakthrough.

The Philippines' official population reached 112,729,484 as of July 1, 2024, per the newly released 2024 Census. That’s a 3.69M jump from 2020—but growth has slowed to 0.80% annually, down from 1.63% in the previous period. The PSA attributes the dip to lower birth rates, COVID-era mortality, and reduced migration. President Marcos’ Proclamation 973 orders all agencies to use this data, which covers all 18 regions plus Filipinos abroad.

Translation: We're growing—but not as fast.

Starting July 1, the 20% tax on interest income from bank deposits now applies uniformly—no matter how long your money is locked in. But here’s the catch: this tax isn’t new. It’s been in place since 1998. What changed? Under the Capital Market Efficiency Promotion Act (CMEPA), old tax breaks for long-term deposits (5+ years) were removed. Now, all depositors—rich or not—get the same 20% rate. Retirement savings like SSS, GSIS, and Pag-IBIG remain exempt.

Elon Musk lit up X with a 24-hour tweetstorm aimed at Donald Trump’s alleged mishandling of the Epstein case. Thirteen posts in an hour? Just the warm-up. Musk demanded answers about the infamous “client list,” DOJ files, and Epstein’s mansion evidence. He even grilled his own chatbot, Grok, asking whether the U.S. has records of flights to Epstein’s island (it said yes). His biggest swipe? Calling out Trump’s Lolita Express flights and asking, “Where is Phase 2?” As election season heats up, Musk seems determined to reopen a scandal many powerful people want buried.