Good morning, Dec. 12.

Happy Friday PW readers. You powered through another week of headlines, deadlines and everything in between. To wrap it up right, we are bringing you a sharp breakdown of the news that mattered and something we are excited about. Starting today, PesoWeekly will feature Founder Files, a new section where we highlight one Filipino founder or business per issue so we can learn how real people build, stumble and succeed. On to the stories.

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

Stay sharp,
Team PesoWeekly

Big picture
The Philippines is heading into 2026 with softening investment momentum and rising economic headwinds. BDO CEO Nestor Tan says business confidence weakened sharply this year after the United States imposed steep tariffs on Philippine exports and a major flood control corruption scandal shook investor trust. Net FDI inflows fell to their lowest level since early 2020, and Tan expects muted investment activity to continue next year.

What is driving the slowdown

So what
The weakening mood is now spilling into financial markets. The peso just sank to a record low of ₱59.22 against the US dollar as traders priced in another interest rate cut. Analysts expect only a modest recovery by mid-2026, dependent on stronger government spending and a rebound in foreign investment. Business leaders say the opportunities are still there, but restoring confidence must become the country’s top priority.

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Big picture
The Asian Development Bank approved a $400 million (23.5 billion PHP) loan to help the Philippines cut red tape, modernize regulations and make it easier for investors to start and operate businesses. Despite strong economic growth, the country still lags behind regional rivals in attracting foreign investment because of bureaucracy, high power costs and weak infrastructure.

What the program targets

So what
The loan arrives at a tense moment. Investor confidence has been shaken by a major corruption scandal involving flood control projects, adding political risk to an already complex business environment. ADB’s reforms are meant to counter that drag by boosting transparency and improving the experience of doing business. Whether this unlocks more foreign investment will depend on how quickly the government delivers real change.

PEZA approved only P32.2 billion in investment pledges in November, down 59% from last year. Officials blame weak economic fundamentals, new US tariffs on Philippine exports, and the ongoing corruption scandal tied to flood control projects. The slowdown reflects broader uncertainty, with the stock market still sluggish and Q3 growth weaker than expected. Despite the drop, PEZA says it is still on track to beat last year’s full-year total, with P207.6 billion in approvals so far. Big-ticket electronics and pharma projects approved in November could help steady momentum heading into 2026.

The government says it will settle its ₱4 billion debt to Light Rail Manila Corp. by next year, hoping to ease financial strain as major investor MPIC weighs divesting its 38.5% stake. So far, the DOTr has paid only ₱500 million since LRMC took over LRT-1 in 2015. A ₱1 billion budget release is expected soon, with the rest included in next year’s budget. LRMC has struggled with losses, rejected fare hikes, and slow post-pandemic ridership, though daily passengers have now climbed back to around 450,000.

Big picture
A new Stanford experiment shows just how far AI hacking has come. Researchers built an AI bot called Artemis, designed to scan networks, spot vulnerabilities and exploit them. When pitted against 10 professional penetration testers on Stanford’s own engineering network, Artemis outperformed all but one human and did it for about $60 an hour compared with humans charging more than $2,000 a day.

What they found
Artemis was fast and cheap, but not flawless.

So what
AI tools could massively improve cybersecurity by helping defenders scan the world’s untested code. But in the near term, experts warn they may also empower attackers with unprecedented speed and scale. The race between AI hackers and human defenders is officially on.

TIME’s Person of the Year isn’t a person at all. It’s the powerhouse group shaping the AI era, from Nvidia’s Jensen Huang to Meta’s Mark Zuckerberg, Elon Musk, Fei-Fei Li and the leaders behind OpenAI, Google DeepMind, AMD and Anthropic. The magazine says 2025 marks the moment the world stopped debating AI and started racing to deploy it, transforming everything from search to shopping to daily decision-making. With billions pouring into chips, models and infrastructure, analysts say this could be the tipping point for AI’s role in everyday life. TIME’s message is clear: the people building AI are rewriting the future in real time.

US imports of phones and parts from Vietnam plunged to just $410 million in November, the weakest level in more than five years. Vietnam’s smartphone industry is dominated by Samsung, and officials say the decline reflects trade uncertainty, softer consumer demand and the impact of new 20% tariffs on Vietnamese goods imposed in August. Phones are technically exempt, but the wider tariff climate has still shaken exporters. Vietnam’s output has been falling since August, though strong shipments early in the year kept overall 2025 exports flat. The slump in smartphone sales also dragged down Vietnam’s total monthly exports to their lowest since April.

When Jeremy de Leon was in Grade 6, he waited in line for a ten minute turn on the class microscope. That tiny moment of frustration planted a big question in his mind: what if every student could have a microscope of their own.

Years later, with a Manufacturing Engineering degree and a pandemic that shifted learning to smartphones, Jeremy created the Make-roscope, a keychain-sized lens that turns any phone into a working 125x to 400x microscope. Price tag: a few hundred pesos. Impact: thousands of students reached across the Philippines.

The Make-roscope grew from a DIY idea into a James Dyson Award national winner and a Gold Awardee in Seoul, proving a Filipino invention can shine globally. Today it is used in classrooms, science clubs, outreach programs and even sold in Toys “R” Us.

Jeremy’s real lesson for founders is simple. Innovation often begins with noticing what feels unfair and building something useful to fix it.

Big picture
Security tensions in Northeast Asia are rising fast. Within 24 hours, two major bomber formations appeared near Japan. One involved the United States and Japan. The other involved China and Russia.

What happened

So what
The back to back flights highlight the most intense military signaling in years. China’s economic threats, radar incidents and aggressive patrols are pushing Japan even closer to Washington. Even as the United States manages sensitive trade talks with Beijing, both flights show the US Japan alliance is firm and alert.

The US has seized a massive oil tanker off Venezuela, calling it part of an illicit network moving sanctioned crude from Iran and Venezuela. Washington says the ship, the Skipper, has long been tied to oil smuggling that funds groups like Hezbollah. Caracas blasted the move as “international piracy” and warned the US is trying to steal its resources. The operation used helicopters and Marines launched from the USS Gerald Ford. Analysts say the seizure adds to rising military tension in the Caribbean.

Three major Korean stars have vanished from TV in days, reigniting a fierce debate about cancel culture. Comedian Park Na-rae faces accusations of abusing former managers and illegal medical treatments. Cho Sae-ho quit two hit shows after rumours linked him to a gang member. Actor Cho Jin-woong announced his retirement after reports resurfaced about teenage detention and past violence. Some argue past mistakes should not end careers. Others say public figures must be held to strict standards in Korea’s reputation driven industry.

New research from UC Davis Health suggests anxiety may have a nutritional fingerprint. A meta-analysis of 25 studies found people with generalized anxiety, panic disorder and social anxiety have about 8% less choline in key parts of the brain, especially the prefrontal cortex, which helps regulate emotions and decision-making. Choline is an essential nutrient involved in memory, mood and cell health. Most people don’t get enough of it, and scientists say high stress may increase the brain’s demand. It’s too early to call choline a treatment, but experts say checking your diet might be a smart first step.

A massive Cambridge study suggests the brain develops in five eras, and the most surprising one is adolescence. According to researchers, this stage doesn’t end at 18 or even 25. It may last until around age 32, the period when the brain is most flexible and able to rewire itself. Childhood (0 to 9) is chaotic but fast growing, adulthood (32 to 66) is stable but slower, and aging brings tighter but less cohesive brain networks. The findings challenge how we think about maturity, mental health and even recovery after surgery, offering a fresh map of how the brain changes over a lifetime.

NASA just completed assembly of the Nancy Grace Roman Space Telescope, the agency’s next major observatory designed to map the universe faster than any mission before it. After final tests, Roman will head to Florida for launch prep, with liftoff possible as early as late 2026 on a SpaceX Falcon Heavy. Once in space, Roman will use ultra sharp infrared vision to study dark energy, dark matter, black holes and over 100,000 distant worlds. Its wide field camera will capture huge slices of the sky in a single shot, collecting data hundreds of times faster than Hubble. Scientists say Roman could unlock answers to the universe’s biggest mysteries.

The Senate Blue Ribbon Committee has launched a broad investigation into claims that some BIR officials misuse letters of authority and mission orders to intimidate or extort taxpayers. Lawmakers say only 2% of tax collections come from audits, yet many businesses report harassment and pressure to give concessions. Former BIR chief Kim Henares defended audits as essential but acknowledged risks of abuse. The probe comes as hearings on the flood control scandal wind down, widening concerns about corruption across government.

Researchers from UP Mindanao and the Philippine Eagle Foundation have completed the first mitochondrial genome study of Philippine Eagles from the Greater Mindanao region. The findings confirm the species’ extremely low genetic diversity, yet show that captive-bred eagles still hold all 17 remaining maternal bloodlines. This gives conservationists a roadmap for smarter breeding and future releases. The study also identifies unique genetic clusters in areas like Samar and Mt. Pantaron, helping guide where new wild stocks should be secured to protect the species long term.

Western Visayas saw another drop in births and deaths in 2024, with live births falling 12% and deaths down 13%, according to the Commission on Population and Development. The region’s fertility rate is now 2.2, close to the replacement level of 2.1. Officials warn that slipping below this threshold could shrink the future workforce and weaken economic demand. Fewer deaths reflect better health care, but an aging population will require larger investments in health, pensions, and long term support services.

The Department of Social Welfare and Development has approved roughly ₱166 million in emergency cash assistance for families hit by Typhoon Tino, according to First District Representative Mommy Rose Salvame. Under the Emergency Cash Transfer program, households with totally damaged homes will receive ₱10,000, while those with partial damage will get ₱5,000. Salvame said validation is complete and funds will be released soon. She also plans to build temporary settlements for future calamities and secured additional support including ₱15,000 livelihood aid and ₱3,000 under AICS.

The government and the Moro Islamic Liberation Front have launched the Transitional Justice and Reconciliation Roadmap, a key pillar of the Bangsamoro peace process. Revealed at Camp Darapanan, the roadmap outlines how both sides plan to address historical injustices, human rights abuses and long-standing grievances rooted in decades of conflict. Officials say it is the “heart and soul” of the peace deal, shaped by community consultations across the region. Leaders from both parties called the roadmap a concrete step toward healing, accountability and lasting stability in Mindanao.