Stocks, peso tumble ahead of US debt vote

THE stocks market and the peso tumbled Tuesday as investors traded nervously while watching Washington, where lawmakers are expected to vote this week on a deal to hike the US debt ceiling and avoid a painful default.

The PSE index, the 30-company benchmark of the Philippine Stock Exchange, shed 82 points, or 1.25 percent, to close at 6,510.67 as all six subsectors declined.

The index representing all shares also lost 35 points, or 1.01 percent, to settle at 3,475.05 on a value turnover of P4.46 billion. Losers outmatched gainers 127 to 42, while 43 shares were unchanged.

Only one of the 10 most active stocks ended in the green. Figaro Coffee Group Inc. rose 1.47 percent to P0.69.

The peso also fell Tuesday to close at 56.31 against the US dollar compared to Monday’s 56.12.

Most Asian markets finished lower.

President Joe Biden and House Speaker Kevin McCarthy hammered out an agreement at the weekend that saw both sides give ground, a week before a June 5 deadline when the government is ex-

US lawmakers race against time to avert debt crisis

WASHINGTON, USA—The bill hammered out by US leaders to prevent the country from a catastrophic default on its debts will face one final and potentially perilous hurdle this week: Passing a divided Congress.

Lawmakers return Tuesday from a holiday weekend with precious few days to review, debate, and ultimately greenlight a measure intended to extend US borrowing authority in exchange for White House policy concessions, notably caps on federal spending.

Top Republicans and Democrats have scrambled to secure congressional support for the measure, with President Joe Biden saying Monday he feels “very good” about its pros- pects despite having just days left before the government starts running out of money.

The weekend deal, reached by Biden and House Speaker Kevin McCarthy after weeks of frantic negotiations, faces opposition from the progressive and hard-right wings of their respective parties.

Ultra-conservative Republicans feel McCarthy should have secured far deeper spending cuts in exchange for raising the debt ceiling and allowing the government to keep borrowing money.

The left wing of the Democratic Party is equally unhappy that Biden agreed to any spending limits at all.

The House Rules Committee meets Tuesday, a crucial test to see whether

McCarthy’s own party, which controls the panel, can agree on a full chamber vote on the bill, now anticipated on Wednesday. Delay tactics Biden and McCarthy both say they believe the bill will pass the House and then move swiftly to the Senate.

“I never say I’m confident what the Congress is going to do. But I feel very good about it,” Biden said Monday, adding that he had spoken to lawmakers. Any organized dissent could force some nerve-shredding delays.

The key deadline is June 5 -- when, according to Treasury estimates, the government will no longer have the funds required to pay all its debts and bills. AFP pected to run out of cash to pay its bills.

The news provided some much-needed relief to markets, but now the two leaders must convince waverers on both sides to back the deal, with the House expected to vote Wednesday followed by the Senate.

Ultra-conservative Republicans feel McCarthy should have secured far deeper spending cuts in exchange for raising the debt ceiling and allowing the government to keep borrowing.

The left wing of the Democratic Party is equally unhappy that Biden agreed to any spending limits at all. Still, the pair said they were confident.

“I never say I’m confident what the Congress is going to do. But I feel very good about it,” Biden said Monday, adding that he had spoken to lawmakers.

There were no catalysts from Wall Street owing to the Memorial Day break, and Asian markets were mixed Tuesday. With AFP