The episode covers major global and regional developments at the start of 2026, including Venezuela’s political transition, strong global market performance, Nvidia’s upcoming Rubin AI chips, Ethiopia’s debt restructuring, and Lebanon’s efforts to restore confidence in its banking sector. Key themes include optimism in technology and emerging markets, cautious economic outlooks, and ongoing geopolitical and financial reforms across the Middle East and Africa.
The episode of “Horizons Middle East and Africa” covers major global and regional economic and political developments as 2026 begins. The top international story is the ousting and capture of Venezuelan President Nicolás Maduro, with Delcy Rodríguez sworn in as acting president. Markets reacted positively to this political shift, especially energy stocks and Venezuelan bonds, as investors anticipate new economic opportunities in the country’s oil sector. The U.S. is signaling a preference for economic pressure and political influence over direct military intervention in Venezuela, with key figures in the Trump administration expected to oversee the transition.
Global markets are off to a strong start in 2026, with notable outperformance in Asia-Pacific equities, particularly in technology and AI-related stocks. The Hang Seng and CSI 300 indices have reached multi-year highs, buoyed by optimism around Chinese tech investment and R&D. U.S. markets also remain bullish, driven by robust earnings growth, though analysts caution that sustaining this momentum will require continued economic expansion and careful management of risks in private credit and equity markets. The episode highlights the potential for volatility in a U.S. midterm election year and the importance of monitoring global monetary policy, especially from the Federal Reserve.
A significant technology update comes from Nvidia, whose CEO Jensen Huang announced that the highly anticipated Rubin data center chips are on track for release later in the year. These chips promise to dramatically improve AI training and inference speeds, offering fivefold performance gains for hyperscalers. While the press conference did not reveal major new details, it reassured markets about Nvidia’s competitive position amid intense rivalry from AMD and Google. The company is also navigating geopolitical sensitivities, particularly regarding the sale of advanced chips to China, with U.S. and Chinese regulatory approvals still pending.
In Africa, Ethiopia has reached an agreement in principle with bondholders for a 15% haircut on its defaulted $1 billion note, signaling a shift toward controlled debt recovery and fiscal reform. The restructuring is tied to export performance, with repayments linked to coffee and gold revenues, and is seen as a step toward restoring debt sustainability. The deal is contingent on IMF approval and ongoing transparency, but markets have responded positively, viewing it as a rare example of balanced risk-sharing between the country and its creditors.
The episode also features an interview with Lebanon’s Economy and Trade Minister about new draft banking legislation aimed at freeing up trapped deposits and restoring confidence in the financial system. The law proposes cash repayments for small depositors and asset-backed securities for larger ones, with the central bank’s gold and other assets providing additional backing. The minister expresses cautious optimism about parliamentary approval and ongoing IMF negotiations, emphasizing that restoring trust in Lebanon’s banking sector will be a gradual process. The show concludes with a look at regional markets, noting Saudi Arabia’s underperformance due to low oil revenues and subdued investor sentiment, while Europe and the U.S. continue to show strong momentum.