Emerging Markets Newsletter

Semester 2 Week 4

Hey Legend!

Happy Monday and welcome to Week 4! 🥳

This Thursday, join us for the EMN x VSK Bake Sale at The Spot. Every dollar goes to a great cause 😇, and donations are tax-deductible 🧾. A sweet treat is the perfect reward for making it to Week 4 🍪🧁.

A reminder that applications for our Subcommittee close next Sunday 📣. Don’t miss this chance to shape EMN ⚒️, work with a driven team 👯, and build skills that last beyond uni 🏦.

Week 4 will be tough 🪖, please make sure to come reward yourselves at our bake sale ☺️. See you legends there!

Updates

EMN x VSK Bake Sale

Come pick up a sweet treat and support a good cause, all purchases are tax-deductible 🥳

• 📍 The Spot, Ground Floor

• 📅 Thursday August 21st

• 🕔 12pm to 4pm

EMN Subcommittee Recruitment

Applications will be reviewed on a rolling basis, don’t procrastinate, apply ASAP!

• 📅 Applications close: Sunday 24th August

• ☎️ Phone interviews: Sunday 10th August onwards

• ☕ Coffee Chats: Sunday 17th August onwards

• ✨ APPLY HERE

President’s Selection

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See how Prepped Talent can help you start a coveted career in High Finance through our comprehensive Break into Mergers & Acquisitions Program.

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The Numbers

Global markets mostly made gains this week, with equities, Bitcoin, and emerging markets all higher. Gold and crude oil were the main laggards, however losses remain marginal, as the financial markets experienced were relatively less volatile.

The Roundup

From economic shocks and political clashes to deadly floods, India faces a week of intense challenges, while intriguing new developments are made in China-America relations and African economic diversification grows.

India

India reels from an 8-year low in inflation, a rising trade deficit, and a political showdown between Rahul Gandhi and PM Modi, while Himalayan floods claim hundreds of lives. These events highlight the nation’s unfolding economic, political, and environmental challenges.

• India’s retail inflation fell to an 8-year low of 1.55% in July, driven by a sharp drop in food and vegetable prices, marking its first dip below the RBI’s 2%–6% band since 2019. 📉🥦 Core inflation stayed near 4%, leading the RBI to hold rates and cut its yearly forecast to 3.1%. 📊🏦 Yet, regional gaps remain, with Punjab’s inflation at 3.53%, more than double the national average 🌾⚖️. 

• India’s trade deficit hit an 8-month high of $27.35 billion in July as crude, gold and festive imports outpaced exports, though U.S. shipments rose 21.6% in April–July. 📈🛢 The gap widened ahead of Trump’s plan to hike tariffs on Indian goods to 50% in August 🚢⚖️. In response, Modi announced GST cuts to ease pressure on consumers and exporters amid rising tensions 🏦📊.

• Rahul Gandhi’s data-driven press conference alleging large-scale electoral fraud in the Mahadevapura constituency has fueled a fierce political showdown with PM Modi and the BJP, intensifying charges of compromised democracy. 🤼‍♂️🔍 The tussle escalated with mass detentions during protests, BJP counter-attacks branding Gandhi a "liar," and the Election Commission demanding formal proof or apologies 📜⚔️.

• Rescuers in Kashmir’s Chasoti village searched debris after floods from a cloudburst killed 60 and left 200 missing, sweeping away pilgrims bound for the Machail Mata shrine. 🌊🚜 It’s the second Himalayan disaster in a week, with operations intensifying amid heavy monsoon rains. ⛪🌧 Across India and Pakistan, floods have killed over 280 people, including 7 more in Kathua, as experts link the deluge to climate change 🔍🌧.

China

China has been granted access to Nvidia’s most advanced chips in the latest developments China-American relations, while tensions flare in the South China Sea and the domestic real estate market faces further decline.

• Chip giants NVIDIA and AMD have agreed to pay the US government a 15% cut of total China chip sales in exchange for approval ✅ to export advanced chips to China, leaving many analysts questioning the deals legality and viability 🧐🏛️⚖️. In the high-stakes AI war 🤖⚔️, this agreement gives Beijing an odd win, providing them with access to previously banned chips.

• Tensions flare in the South China Sea! In a freak accident, 2 Chinese warships collided 💥whilst attempting to “sandwich” ⛴️🥪the Filipino ship the BRP Suluan on a resupply mission to the Scarborough Shoal. Manila condemned 🤬 China’s ‘reckless behaviour’ and accused it of destabilising the region; in response the U.S. navy ⚓️🦅 deployed 2 warships in spite of Chinese protests.

• China-American relations receive a positive yet uneasy boost! The decision comes after weeks of ‘positive talks’ 🗣️ between both sides on economic tariffs; bringing renewed optimism 📊🔺 for domestic financial markets. However, speculation remains 🤔 as to whether the end of the trade dispute can truly be reached in the next 3 months.

• China’s real estate market took yet another hit after new data revealed prices dropped by 0.3% 📉, the largest decline in 8 months. Despite adopting aggressive policies aimed at supporting the housing market through lowering interest rates and lifting home-purchase restrictions, Beijing has been unable to overcome weak consumer demand 😟. This has further hurt struggling developers 🏗️, with many experiencing severe liquidity crunches 💦🚨.

Africa

Nigeria’s economic diversification is growing, while Kenya experienced success in its latest capital raising efforts, however the food crisis in East Africa still wreaks havoc, impacting millions of people across the continent.

• Nigeria’s non-oil exports jumped 19.6%, pulling in $3.2B 💵🚀 proof the country is serious about moving beyond oil 🌱. Zimbabwe banned second-hand clothing sales 🚫👕 in city centers, aiming to boost local textile industries 🧵🏭 and regulate informal trade 🛍️.

• Kenya raised $1.5B via Eurobond 🌐💵, a sign of investor confidence 🎯🙌 and a boost for government projects 📊. Nigeria’s Central Bank kept rates steady at 27.5% 🔒🏦, citing stable macroeconomic trends 🌞➡️📈.

• South Africa entered trade negotiations with the U.S. 🇺🇸 to protect vital export privileges 📦🛳️. Kigali is hosting the 16th Advocates Africa Conference ⚖️📚, where leaders and lawyers are pushing for justice ✊🏾, rights ❤️, and reforms 🔧.

• AfroBasket 2025 is heating up in Angola🔥. Sixteen teams battled through groups now it’s quarterfinal time 🏆👏.🌾 East Africa’s food crisis worsens 💔🍽️. Over 56M people are hungry, hit by drought 🌵, floods 🌊, and conflict ⚔️ across Sudan, South Sudan, Ethiopia, Kenya & Somalia 🚨❤️.

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 💚