Global Markets Brace for Key Developments: BHP Cost Overruns, US-Philippine Tariff Talks, and EU Budget Unveiling

BHP (BHP) has issued a warning regarding a substantial $1.7 billion cost overrun for its Canadian fertiliser project. This development underscores the financial challenges faced by major players in the commodities sector and could impact the company's capital expenditure and profitability going forward. The project is a key investment for BHP in the global fertiliser market.

Philippine President Ferdinand Marcos Jr. is scheduled for an official visit to Washington from July 20-22, with a primary focus on addressing proposed U.S. tariffs on Philippine exports. The U.S. is preparing to raise duties on Philippine exports to 20%, an increase from the 17% threatened in April, a measure that has caused concern among Filipino business leaders and officials. The visit marks President Marcos's first bilateral summit with President Donald Trump and comes as the U.S. goods trade deficit with the Philippines widened to $4.9 billion in 2024, representing a 21.8% increase from 2023. The Philippine Foreign Ministry emphasized the need for the Philippines to strengthen its own economy to be a reliable partner to the U.S., a point they intend to highlight during discussions.

In Brussels, European Affairs ministers convened to discuss the EU’s long-term budget proposal, known as the Multiannual Financial Framework (MFF). The European Commission has proposed a central EU budget of €1.816 trillion for the seven-year period from 2028 to 2034. This figure represents an increase in the EU's spending power, rising to 1.15% of the bloc's gross national income compared to approximately 1.1% in the current period. The Commission aims for this budget to equip Europe to be an independent, prosperous, secure, and thriving society and economy over the coming decade, with significant allocations towards areas like skills, culture, strategic technologies, and defense. The proposal initiates a two-year negotiation process with the Council of the EU and the European Parliament before its planned entry into force on January 1, 2028.