The Weekly BluRB — October 28th, 2025

Intro:

Welcome to the Weekly BluRB, a newsletter catered to students and professionals to get the latest news and insights on global markets. Get prepared for the week by reading four weekly stories circulating around equity markets, macro trends, geopolitics, and new business developments. And the best part: we’ll give you an informed view about where we think prices, policy, and trends are going in the near future. The content in these writings is for informational purposes only and does not constitute financial or investing advice.

US Economic News: Shutdown Rundown — Lucy Cox

We are currently in the second-longest government shutdown in US history, as of last Wednesday. With seemingly no end in sight, this will become the longest should lawmakers fail to reach a deal by November 5. The shutdown is wreaking all kinds of havoc on federal programs and workers. From inflation reports to SNAP benefits, here is a rundown of news from the prolonged shutdown.

The State of SNAP

Virginia Governor Glenn Youngkin declared a state of emergency in his state, citing that 850,000 Virginians reliant on SNAP benefits will see their assistance run out by November 1. Under this declaration, Governor Youngkin is authorized to expand emergency funds to protect the “health, welfare, and safety of Virginians.” As such, Virginians will continue to see food benefits “until Congressional Democrats put the interests of Virginians in need ahead of their politics,” according to Governor Youngkin. 

In other SNAP news, more than two dozen states, including California, have sued the Trump administration for withholding potential funding for SNAP during the prolonged shutdown. This group of states have asked a federal judge to tap into emergency funding (similar to what Governor Youngkin is doing in his state) in order to fund SNAP benefits for over 40 million Americans.

The Who’s Who of Paying the Troops

America’s military — who is required to work (with no paycheck) even during a shutdown — is due for a paycheck October 31, but who is there to pay it? American troops thus far have been able to receive pay during the shutdown after President Trump directed Secretary of War Pete Hegseth to utilize an $8 billion package of funds previously appropriated to the War Department for research, development, test, and evaluation. However, only $1.5 billion of that is left — far too little to pay the over 1.3 million active duty troops. 

Last Thursday, Senate Democrats blocked a bill that would pay active duty servicemembers and other essential workers currently working without pay during the shutdown. However on Tuesday, Vice President J.D. Vance visited Senate Republicans on the Hill and affirmed to reporters that he believes troops will continue to be paid, although not “everybody,” citing being dealt “a very bad hand by the Democrats.” 

While talks continue on Capitol Hill, billionaire, Trump donor, and grandson of Andrew W. Mellon, Timothy Mellon donated $130 million to the Pentagon to help pay troops for the time being. However, with the Trump administration’s $600 billion 2025 budget request for troop compensation, Mr. Mellon’s donation amounts to about $100 per service member. 

In other news…

Tariff-ying News for Colombia

Last week, President Trump called Colombian President and former leftist guerilla Gustavo Petro an “illegal-drug leader” on social media, and announced an end to all aid to Colombia, as well as newly imposed tariffs on the country. This comes after the Trump administration has bombed several drug-trafficking boats in the Pacific near South America, including a boat claimed to be run by ELN, a Colombian rebel group that traffics cocaine. Some argue that these sanctions may backfire, as free trade can make legitimate exports more accessible and attractive than illicit drug trafficking.

Intel’s Comeback

Last Thursday’s third-quarter earnings were optimistic for the American chip giant with revenue growing and higher than expected earnings. Reported revenue in the third quarter amounted to $13.7 billion, about $560 million above the average analyst estimate. Additionally, adjusted earnings per share came in at $0.23, far exceeding the expected $0.01. This comes two months after the Trump administration made a historic deal to invest $8.9 million in Intel stock, citing desires to boost national security and expand the domestic semiconductor industry.

Russia Faces New Sanctions

Last Wednesday, President Trump announced sanctions against Russia’s two biggest oil firms, Rosneft and Lukoil, and 34 of their subsidiaries, marking a major blow to a significant funding source for Vladimir Putin’s war machine. These sanctions will cut off access to the dollar-based financial system to any company that purchases oil from the designated companies, which will likely have its most significant effects on China and India, the largest importers of Russian oil and gas following Russia’s invasion of Ukraine in 2022. Consequences from the sanctions were almost immediate, where hours after the announcement the global oil price rose 6%. Lukoil announced on Monday that they would be selling its foreign assets in response to the sanctions.

Global Equity Markets: China’s Gold Strategy, a Quiet Revolution Against Established Dominance — Henry Wang

Something interesting is happening in global finance, and it’s not just market hype. Over the past several months, China has been quietly ramping up its official gold reserves, adding to its stockpile for the eleventh straight month. But why is this meaningful? Beijing’s gold binge isn’t an accident — it’s a signal.

China’s public disclosure of its gold purchases carries a clear strategic motive. For background, the U.S. dollar has served as the world’s primary reserve currency since World War II, trusted for its stability and deep financial markets. However, recent events have reminded nations that the dollar’s dominance comes with strings attached: it is ultimately controlled by the United States, and those who hold it remain subject to US policy and sanctions. Following President Biden’s abrupt sanctions on Russia’s foreign reserves after the Ukrainian assault, Beijing’s steady accumulation of gold sent a message to other central banks: diversify away from US dollar reserves and build protection against financial sanctions and dollar volatility. Analysts at The Royal Mint note that gold offers insulation from currency and geopolitical risks and helps rebalance reserves away from dollar-denominated debt. And thus, many countries are actively following China’s lead in diversifying away from the dollar and towards fixed, material assets of value.

Figure 1: Gold Reserve Holdings

Each bar of bullion adds credibility to Beijing’s broader goal of creating a more autonomous financial system. The accumulation signals to developing nations and Belt and Road partners that there exists an alternative to the dollar-dominated order. 

If gold eventually accounts for roughly 10% of China’s total reserves, it will mark a psychological milestone. For global markets, that threshold would imply that China’s central bank views gold not merely as a hedge but as a parallel pillar of stability. Such a move could pressure other emerging-market central banks — especially those wary of US sanctions — to follow suit, reinforcing a slow-motion “gold standard of trust.”

Figure 2: China’s official gold holdings rose further

Russia’s Oil Sanctions — Two Sides of the Same Barrel

While Beijing stockpiles bullion, Moscow faces a different kind of resource battle. On October 22, 2025, the United States imposed sweeping sanctions on Russian oil giants Rosneft and Lukoil, freezing US assets and prohibiting American entities from doing business with them.

The measures were framed as punishment for Russia’s continued aggression in Ukraine, and markets reacted instantly: crude prices jumped 5% on supply fears.

That’s the first side of the story. The other side is murkier. As the Foundation for Defense of Democracies (2025) explains, the effectiveness of these sanctions depends on enforcement and whether major importers like China and India comply. Some large Chinese state oil firms reportedly paused new seaborne Russian oil purchases, but smaller “teapot” refiners kept buying. In practice, the shadow fleet of tankers and offshore intermediaries continues to move Russian crude under the radar.

The result is a sanctions regime that’s more leaky than lethal. If enforcement tightens, the Kremlin’s fiscal cushion could erode; if it doesn’t, Russia simply reroutes oil through friendlier markets, selling at a discount but keeping revenues flowing. Either way, volatility wins: oil traders face price spikes on enforcement news and sharp reversals when barrels resurface elsewhere. For consumers, that means energy inflation could re-emerge unexpectedly. For policymakers, it’s a reminder that financial warfare rarely ends cleanly; rather, each sanction spawns a workaround, and each workaround forces a new rule.

Story of the Week: Funding on the Fritz — American Healthcare is in Peril — Faith Spalding

While the days of DOGE seem to be over, federal agencies continue facing massive cuts to funding and faculty reductions. For agencies like the National Institute of Health (NIH) and the National Cancer Institute (NCI), spending is simply not “wasteful” — it’s lifesaving. 

Following President Trump’s inauguration, key agencies find themselves at a major crossroads. In Feburary, the NIH announced a 15% cap on grants for indirect costs, when previously negotiated rates ranged from 20-70%. These caps severely affect the quality of research, as narrower project budgets makes hitting targets much more difficult. This is further seen by increased grant rejections, with denials doubling since January. 

The NCI agency was forced to double down in July, annoucning a further reduction of grant applications from 9% to 4% for the remaining fiscal year 2025. These cross-agency reductions in funding have the potential to drastically disrupt the global health philanthropic system, directly impacting the quality of research and patient care internationally. From 2016 to 2023, the US donated $29.4 billion to global health philanthropy causes, amounting to 57% of total global funding. The NIH was the largest US contributor, funding $21.9 billion; 47% of total global funding.

But as federal cuts to funding dampen outlooks for scientists and health professionals, other avenues must be explored internationally to fill potential gaps. In a study published by Lancet Oncology, analysts indicate that “there might be increased strategic value in other countries strengthening collaborative ties.” As global state political and economic groupings grow in strength and importance, groups like BRICS and the EU offer existing collaborative structures that could strengthen philanthropic support. There is some institutional infrastructure in place to make this goal a reality: during May’s Philanthropy Asia Summit, the World Health Organization (WHO) emphasized sustained efforts to expand its donor base and further engage with philanthropic organizaitons, with Director-General Dr. Tedros Adhanom Ghebreyesus remarking that WHO’s founding vision was to create “the highest attainable standard of health — not as a luxury for some, but a right for all.” 

Unfortunately for the American populace, quality healthcare is a luxury. For many, the immediate future is fraught with concern, exacerbated by federal cuts to healthcare programs. HR-1, President Trump’s “One Big, Beautiful Bill”, is set to cut over $1 trillion in federal healthcare spending by the end of 2025. An estimated 10 million Americans are set to lose healthcare coverage as a result of the sweeping cuts of HR-1 — this number could increase by another five million Americans if congress allows Affordable Health Care Act (ACA) subsidies to expire by the end of the year. 

For American patients, the ripple effects will be disastrous. Without insurance, lower-income individuals and families who rely on federally funded healthcare and ACA subsidies will find themselves unable to cope with soaring out-of-pocket costs. Those without insurance are more averse to going to the hosptial for emergency situations. Even for those with private insurance, soaring premiums and drug prices will enormously increase family healthcare spending. A recent KFF survey revealed the average annual premium for a family with workplace insurance sat at nearly $27,000 this year, a 6% increase from 2024. According to KFF Vice President and Director of the Program on the Affordable Care Act Cynthia Cox, “the amount of the insurers are charging is going up 18 percent, but because people will be getting less financial help, how much they pay for their monthly premium payment will actually go up by 114 percent on average if the enhanced tax credits expire.”

These numbers are nothing short of catastrophe. That’s not to say the ACA is “perfect”; distinct criticisms come from the fact that the taxpayer dollar is used to offset healthcare costs for certain people. But with millions of Americans facing a lagging economy, the cost of healthcare is yet another alarm bell for exhausted consumers. As American consumers confront this growing crisis, pressure on federal agencies like the NIH and the NIC remains heavy, and is making scientists reasses their research trajectories. In a Nature poll conducted by 1,200 scientists, 75% reported they are considering leaving the country as a result of massive reductions to NCI-funded programs. What we see is a balloon of stress that’s ready to burst: American consumers are facing untenable healthcare costs, the state of scientific research is in disarray, and a solution doesn’t seem to be on the horizon. Assuming the government shutdown is brought to a close, congress will still have time to ensure that millions of Americans will have some semblance of healthcare. Here’s to hoping.