The episode of “Horizons Middle East & Africa” opens with a focus on global market volatility, particularly the ongoing “AI scare trade” that has triggered a risk-off sentiment across Wall Street and Asian equities. Major U.S. indices like the S&P 500 and Nasdaq saw significant declines, with tech giants such as Apple, Meta, and Amazon leading the losses. The selloff has extended beyond traditional tech stocks to industries perceived as vulnerable to AI disruption, notably logistics and trucking. This has resulted in unusual market correlations, including a temporary drop in gold prices as investors liquidated winning positions to cover losses elsewhere.
In Asia, the negative sentiment spilled over, with logistics stocks hit hard following the U.S. trend. However, some markets like South Korea’s KOSPI remained resilient, attributed to their focus on hardware rather than software. Market experts discussed the shift from enthusiasm over AI beneficiaries to concerns about AI victims, suggesting that volatility in these sectors may persist. Despite this, the broader U.S. economy remains robust, with strong nominal growth and expectations of continued expansion, especially as the administration seeks to maintain momentum ahead of elections.
The show also covered significant geopolitical and economic developments. The U.S. is reportedly considering rolling back some aluminum and steel tariffs, potentially easing costs for consumers ahead of a politically sensitive year. Meanwhile, Washington and Taipei finalized a trade deal to cut tariffs and boost U.S. market access in Asia, with Taiwan pledging substantial energy purchases. In Venezuela, the U.S. Energy Secretary highlighted new cooperation opportunities as the country opens more oil production to foreign companies like Chevron, signaling optimism for economic reform and improved business conditions following political changes.
Turning to Africa, the program highlighted Ghana’s efforts to revamp its cocoa pricing system after a drop in global futures, Congo’s successful return to the Eurobond market, and Zambia’s increased foreign participation in local bonds. In South Africa, President Ramaphosa’s State of the Nation address emphasized economic stabilization, infrastructure investment, and ongoing challenges such as high unemployment and electricity sector reform. The president’s tone was optimistic, reflecting recent macroeconomic improvements, but acknowledged the need for faster progress on key reforms.
The episode concluded with a spotlight on regional business and investment trends. Talabat, the UAE-based food delivery giant, reported a 15% year-on-year profit jump and outlined plans to invest $100 million in expanding its grocery and subscription services. The CEO discussed strategies to maintain market leadership amid rising competition, especially from Chinese entrants. The show also examined Dubai’s booming ultra-luxury property market, driven by continued inflows of wealthy buyers, and Oman’s stock market rally as it seeks emerging market status. Finally, the program previewed the Munich Security Conference, where $35 billion in new military aid for Ukraine was pledged, and discussed the evolving dynamics of transatlantic relations and European defense.
