The latest Horizons Middle East & Africa episode highlights a global surge in AI optimism driving record market gains, with significant developments in tech partnerships and geopolitical tensions, including youth-led protests in Morocco and uncertainty over Hamas’ response to a proposed Gaza peace plan. Additionally, it covers Japan’s political leadership change, Ethiopian Airlines’ expansion despite delays, and the resilience of markets amid U.S. government shutdown concerns.
The latest edition of Horizons Middle East & Africa highlights a surge of optimism in artificial intelligence (AI) that has propelled Wall Street to new record highs. Investors are buoyed by a wave of AI partnerships and the massive capital flowing into the sector, anticipating that these investments will translate into substantial profits and extend gains in technology stocks. Despite Tesla reporting a record quarter in vehicle deliveries, its shares slipped due to concerns over the expiration of electric vehicle tax credits, which may weigh on future sales. Meanwhile, U.S. government shutdown concerns have had limited impact on equities, with markets shrugging off the lack of key economic data and continuing their upward trajectory.
In Asia, the AI-driven rally is also evident, with markets in Japan, Taiwan, and South Korea showing strong gains, particularly in chip-related stocks. OpenAI’s valuation has soared to $500 billion, making it the world’s largest startup and fueling enthusiasm across global tech markets. Partnerships between OpenAI and major Asian tech firms like Fujitsu and Hitachi have further boosted investor confidence. The Japanese yen has strengthened amid speculation of potential rate hikes by the Bank of Japan, with political developments in Japan’s ruling party leadership race adding to market uncertainty.
Turning to geopolitical developments, Morocco is experiencing its most serious wave of unrest since the Arab Spring, driven primarily by youth-led protests over poor public services and heavy government spending on infrastructure for the 2030 FIFA World Cup. The protests, largely social and economic rather than political, reflect deep frustrations among young people facing high unemployment and inadequate healthcare. This unrest mirrors similar youth-driven protests across Africa and other parts of the world, where governments face growing demands for inclusive governance and economic opportunities.
In the Middle East, attention is focused on the uncertain response of Hamas to a 20-point peace plan proposed by former U.S. President Donald Trump, which aims to end the conflict in Gaza. While some Arab states have expressed tentative support for the plan, significant reservations remain, especially regarding the lack of provisions for Palestinian governance and a permanent ceasefire. Experts warn of potential divisions within Hamas between its political leadership abroad and military leaders in Gaza, complicating prospects for a unified response and peace agreement.
Finally, the program covers developments in Japan’s political landscape, where the ruling Liberal Democratic Party is set to elect a new leader who will become prime minister. This leadership change is closely watched for its implications on fiscal and monetary policy amid rising living costs and political challenges. Additionally, Ethiopian Airlines discusses its expansion plans despite aircraft delivery delays, emphasizing growth in passenger numbers and new routes, particularly across Africa and Asia. The show concludes with a look at the ongoing AI rally’s impact on global markets and the absence of U.S. nonfarm payroll data due to the government shutdown, as equities continue to perform strongly.