Emerging Markets Newsletter

Semester 1 Week 2

Hey Legend!

Happy Monday and welcome to week 2! 🥳 

No lectures, no tutorials, no work, woohoo! we hope you enjoy Labour day 😇

Thank you all to those who came to our pub night with GAS! Many LinkedIn connections were made 🤝 and even more pints were deleted 🍻.

Keep an eye out on our socials for our next event in week 3: Investing in Emerging Markets

Details to be released soon!

President’s Selection

The Numbers

This week saw financial markets across the developed world drop significantly, likely in response to the USA’s tariff policies. Gold prices recovered this week, and are now just shy of the significant USD$3,000 per Oz mark, whereas oil prices dropped significantly, down to just USD$67 per barrel, the lowest price since September last year.

The Roundup

This week, India’s latest deals with Russia places further strain on US relations. In China, trade war rages on with the US while the Chinese government aims to revitalise the economy in 2025. Africa continues to show optimistic signs for progress in both economic growth and female representation in politics. Let’s get right into it.

India

Adani Group and Seclink tussle in court over an infrastructure tender, India brokers an arms-deal with a Russian state-owned defense company, Indian equities rise amidst RBI monetary stimulus.

• The Supreme Court on Friday refused to pause the project underway for the redevelopment of Dharavi, Asia’s largest slum🗑️, in Mumbai, being undertaken by the Adani Group💰. Dubai-based 🏙️ Seclink Technology Corporation 🖥️ (STC) has challenged😬 the Court’s order to issue a tender in 2022 to the Adani Group after cancelling ⚔️a 2019 bid which it won🥇.

• India's central bank said on Wednesday it will infuse $21 billion in rupee liquidity in a bid to ease lending conditions and boost💨 economic growth. The RBI💰 will conduct two open market operations🙅‍♂️, totalling one trillion rupees ($11.50 billion)💴 on March 12 and March 18. It will also conduct a dollar-rupee buy-sell swap worth $10 billion👀.

• India’s Nifty 50 index saw a resurgence, rising 1.9% this week. Reliance Industries ☎️⚡️, the heaviest stock 💪 , climbed 4.1%, while metal stocks💰 gained 8.6%, buoyed by Chinese economic stimulus expectations and plans to curb steel 🔩output. Despite these gains, the index is about 14% below 📉  its September highs, weighed down by sluggish earnings and $27.5 billion💰 in foreign outflows.

• India signs $248 million deal with Russia’s state-owned Rosoboronexport for advanced battle⚔️ tank engines⚙️. US Secretary of Commerce Howard Lutnick has urged India to end its reliance on Russian military equipment⚒️💣, arguing that such a move is essential for strengthening ties between New Delhi and Washington.

China

Beijing outlines its economic vision, military expenditure increases amidst rising APAC tensions, retaliatory tariffs are announced against US and Australian concerns over Chinese AI.

• Following the 14th National People's Congress and 14th CPPCC National Committee, the Chinese government laid out its economic vision 📝👀 for 2025. Key takeaways include a 5% economic growth target 🎯, future interest rate cuts 🏦⬇️, commitments for a stable Yuan exchange rate regime ⚖️, and a desired shift towards a consumer-driven economy🛍️🛒.

• Beijing keeps the annual defence spending increase unchanged at 7.2% following the release of the annual Budget 💰. Despite remaining the world's 🌏 second-largest military spender 💪, the increase falls behind neighbours India, the Philippines, Japan and Taiwan, as the CCP ☭ balances its military ambitions 🪖 with a struggling economy📊🚧.

• China announces retaliatory tariffs on American agricultural goods as Beijing warns ⚠️ Trump that it is ready “for any type of war”⚔️ and pledges to fight “to the bitter end”😤. The sweeping tariffs would see a 10% tax on food imports such as pork 🐷, beef 🥩 and seafood 🐟, with chicken 🐓, wheat 🌾, corn 🌽 and cotton 🪡 facing a 15% tariff.

• Australia bans DeepSeek from government devices and digital systems after Home Affairs Minister Tony Burke declared 📢 the Chinese-created AI model 🤖 of posing an “unacceptable” national security risk 🚨.

Africa

Africa is making big moves in energy policy  and creative industries, while climate change continues to hit vulnerable regions like the Sahel. Meanwhile, the Africa Women Political Leadership Summit  is pushing for stronger gender representation in politics.

• The Africa Women Political Leadership Summit 2025 is set for March 8 in Ghana, bringing top women leaders, policymakers, and officials to boost women’s political participation 👩‍💼⬆️. The event is a major step toward gender equality and governance improvements ⚖️.

• 24 African countries are set to exceed 5% GDP growth, including Rwanda, Senegal, Djibouti, Niger, and South Sudan, making Africa home to 12 of the world’s 20 fastest-growing economies this year 📈! However, distressed debt remains a concern for other African nations 🏦😬.

• Startup funding is booming!💡 The African Business Angel Network (ABAN) 📊 launched new initiatives to fund tech & creative startups 🚀. Afreximbank 📈 announced it will double its investment in the Creative Africa (CAN) program from $1B to $2B over the next 3 years 🎨🎶.

• US President Donald Trump announced the US will cut all federal funding to South Africa, citing concerns over its new land policy, the Expropriation Act. This could hit South Africa’s agricultural sector hard 🌾, which relies heavily on duty-free exports to the US 📉.

See you all next week!

We hope you enjoyed reading our newsletter! There are plenty of facts for you to drop in your next conversation to sound more intelligent. Make sure to share this artistic marvel with a friend!

Good luck for your studies, we know you smart cookies will smash it.

If you have any inquiries please email [email protected]

We look forward to seeing you at our next event!

Best regards,

The EMN Team 💚