Emerging Markets Newsletter

Semester 1 Week 11

Hey Legend!

Happy Monday and welcome to Week 11! 🥳

Exam timetables are out 📖. If yours doesn’t involve three exams in two days, we assume bribery was involved 🕵️. Contrary to popular belief, greatness isn’t forged over time, it manifests 12 hours before your exam ✨

We do genuinely hope your studies are tracking well 💚, your timetable is kind 😊, and you’re staring down the barrel of a long, glorious holiday 🏖️

Before the semester wraps up, we’ll be teaming up with the Very Special Kids Society for one last coffee catchup 🤝☕, stay tuned!

Updates

Grounds for Good Cause

Enjoy a free coffee on us and the Very Special Kids Society at Mid Square Coffee next Thursday! ☕☺️

• 📍 Mid Square Coffee, 119 Pelham St, Carlton VIC 3053

• 📅 Tuesday 27th May

• 🕛 12:00 pm to 3:00 pm

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The Numbers

Equity markets rebounded sharply, with the S&P 500 posting one of the strongest weekly gains in years, while gold saw a notable pullback after sustained strength but continues to be a strong Year-to-Date leader, while oil bounces back from 4-year lows.

The Roundup

Inflation dampens and markets rise in India, US-China trade tensions calm, and Ethiopia targets an innovative digital ID.

India

India’s inflation cools as food prices ease, opening the door for potential rate cuts, while equity markets rally on talks of a zero-tariff trade deal with the U.S.. Tensions flare again despite an India-Pakistan ceasefire, and cricket star Virat Kohli bids farewell to Test cricket, ending a legendary career.

• India's retail inflation remained below the central bank's 4% target 🎯📉 for the third consecutive month as food prices rose at a slower pace, opening up room for more interest rate cuts 💸📊. Annual retail inflation slowed to 3.16% in April from 3.34% in March, marking its lowest level since July 2019 📅.

• India's equity benchmarks jumped about 1.5% on Thursday after U.S. President Donald Trump said India had offered a zero-tariff trade deal to the United States 📈🤝. The indexes rose sharply after Trump’s remarks, with the Nifty 50 closing the day 1.6% higher at 25,062.10 and the BSE Sensex gaining 1.48% to 82,530.74, reflecting increased investor confidence 💹🚀.

• Nuclear-armed neighbours India and Pakistan agreed to a ceasefire on Saturday after U.S. pressure and four days of fighting ⚔️ 🤝 , but within hours explosions rang out in border cities and towns and India accused Pakistan of violating the pact 🚨 💣 . Trump says U.S. is ready to help India, Pakistan with trade if common sense prevails 💰 🧠 .

• India batting great Virat Kohli announced his retirement from test cricket on Monday, bringing down the curtain on a glorious career in the longest format that leaves a huge void in the team just days after captain Rohit Sharma ended his red ball career 🏏 🙌 . Kohli, debuted in 2011 and scored 30 centuries and 9,230 runs at an average of 46.85 over 123 tests 🔝🫡 .

China

China finishes the week with a string of economic and political triumphs, the most significant being the breaking of the deadlock with America following the agreement of a 'tariff’ truce. NVIDIA sets its eyes to invest in Shanghai while China cements its status as the global leader in ship building.

• Beijing and Washington agreed to temporarily slash tariffs for 90-days following lengthy negotiations in Switzerland. The new agreement 🤝 would see Chinese tariffs on American goods slashed to 10% (formerly 125%) with opposing tariffs falling to 30% (formerly 145%) 📊🔻. However, the ‘truce’ ⏳ fails to address the underlying dispute ⚔️ between both countries.

• Chinese FDI gets major boost with reports from the FT indicating NVIDIA is set to spend big 🤑 towards building a new research and development centrein Shanghai  🔬👨‍🔬. The new initiative by NVIDIA aims to hedge ⚖️ economic and political risk by bypassing unpredictable American tariff policy and U.S. export controls🚫 on advanced chips to China.

• Alibaba posts disappointing Q1 financial results, rattling markets. Despite reporting a revenue increase of 7% and a 36% increase in EBIT, investor confidence fell😟 as net profits only managed to reach 50% of analyst forecasts, causing a 7.6% share price drop📊🔻. Even more worrying was the earnings shortfall for its AliCloud business - a division intended to spearhead Alibaba’s 380bn Yuan investment into AI 🤖.

• China sets new maritime record! SAIC Anji Logistics broke the record for producing the largest car carrier ship 🚢🚗 - previously held by BYD Shenzen. Setting sail on her maiden voyage 🍾 to Europe, the Anji Ansheng with a holding capacity of 9,500 symbolises Beijing aggressive investments towards enhancing transport logistics  to support its rapidly growing EV industry⚡.

Africa

This week in Africa, Ethiopia launched a major digital ID initiative backed by the World Bank, aiming to register 70 million citizens. Inflation eased across the continent, with Ghana and Kenya showing strong economic growth. Investment surged in agri-fintech and infrastructure, while political tensions rose in Tanzania, Burkina Faso, and North Africa.

• Ghana and Kenya recorded stronger-than-expected Q1 growth, driven by 🌾 agricultural exports and rising consumer confidence 🛍️. Meanwhile, Nigeria’s naira dropped 3% following a surprise central bank hold, raising fresh concerns over 🔁 forex stability and reserve levels.

• African tech and infrastructure saw major inflows. Kenya’s Apollo Agriculture raised $120M to scale agri-fintech across rural areas🌱. In Egypt, a new $500M deal with Mubadala targets 🚆 logistics and ☀️ green energy along the Suez Canal. Regional markets were mixed: 📈 Nairobi gained 2%, while Lagos and Johannesburg remained flat amid global market unease 🌍.

• In Tanzania, opposition protests on May 15 drew thousands calling for electoral reform and an independent commission 📣. Burkina Faso saw deadly clashes near Ouahigouya as conflict in the Sahel deepens ⚔️. Meanwhile, diplomatic friction between Morocco and Spain over Western Sahara sparked new calls for EU mediation and dialogue 🤝.

• Ethiopia has kicked off the Ethiopian Digital ID Initiative, aiming to register 70 million citizens by 2026 🧾. Backed by the 🌍 World Bank and African Union, it’s set to be Africa’s largest digital ID rollout. The project promises to boost access to financial services 💳, streamline welfare programs 🏥, and accelerate digital economies across East Africa 📡.

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 💚