AI Optimism; Deadly Morocco Protests | Horizons Middle East & Africa 10/3/2025

Market Trends & AI Impact - AI optimism lifts Wall Street to fresh records, with investors cheering AI alliances and hoping for profit translation from billions pouring into the sector [1][46] - The AI effect is lifting markets in Asia, with impressive gains seen in chip sectors like Fujitsu and Hitachi, driven by partnerships with OpenAI [6][7] - OpenAI's valuation reached $500 billion, signaling strong optimism in the AI space and driving gains for chip-linked companies like NVIDIA and AMD [25][48] - The AI rally continues to fuel stocks globally, not just in the US [45] Economic Indicators & Monetary Policy - US equities trade at all-time highs, seemingly unfazed by the ongoing US shutdown, with investors focusing on the length of the shutdown [11][12] - US 10-year Treasury yields slipped lower throughout the week, trading below 410%, indicating expectations of potential rate cuts [3][49] - The Yen is seeing a weekly gain of 12%, with potential for further strengthening to the low to mid 140 levels in the coming weeks due to hawkish comments from the BOJ governor [10] Energy Market - OPEC-plus is discussing accelerating the pace of putting back oil barrels to the market, potentially as high as 500,000 barrels over the next three months [5] - WTI has hit a four-month low due to pressure on the energy complex, driven by expectations of increased oil supply [5][51] Geopolitical & Social Issues - Unrest in Morocco turns deadly, with thousands protesting poor public services and heavy spending for the 2030 Football World Cup [2][47] - Morocco has earmarked nearly $35 billion for infrastructure spending and stadium construction for the 2030 FIFA World Cup, while facing issues like healthcare and unemployment [36] - Trump administration is weighing slashing thousands of federal jobs, increasing pressure on Democrats to end the government shutdown [11][46] Company Specific News - Tesla's shares slipped despite record quarter deliveries, with subsidies potentially weighing on the automaker's outlook [1][24] - Boeing's 777X jet is now slated to fly commercially for the first time in early 2027 instead of next year, potentially leading to billions of dollars in accounting charges [23]