The war in Iran and the wider Middle East has dealt a significant blow to asset prices. Paul, Luke and Lizzy look at the US and Israel’s war aims and examine why Iran’s response has been larger than expected. They go on to consider what asset prices appear to be pricing in about the likely outcome of the conflict, and what this could mean for growth, inflation and interest rates. They also reflect on how US policy fits within Trump’s broader foreign policy agenda.

The war in Ukraine is now four years old, and the nature of modern warfighting - and Europe’s defence needs - has shifted dramatically as a result. Lizzy and Paul talk to John Ridge and Erin Hallock of the NATO Innovation Fund, a multi‑government‑backed venture capital fund, about the accelerating pace of innovation on the battlefield, why governments must procure and adopt defence technology far faster to turn late‑stage prototypes into scalable capability, and how the Fund is finding and funding early‑stage defence, security and resilience businesses.

2026 has started with a flurry of political shocks. Luke and Lizzy talk to Jens Larsen, Practice Head of Geoeconomics at Eurasia Group, about the structurally elevated geopolitical volatility that investors now face and why this matter to markets. They discuss the fundamental drivers of heightened political risk, including the end of the unipolar moment and the re-emergence of great power competition, the break down in operating consensus that underpinned domestic politics until recently, the chance of US military action in Iran, and whether UK fiscal policy will change significantly under a potential new prime minister and Chancellor.

With President Trump threatening fresh tariffs on various economies, trade wars are back in focus.

Moreover, the risk of the trade war spreading to a capital war has become more pressing. The EU has been considering activating its “Anti-Coercion Instrument” in response to US threats to Greenland, which could see services trade and capital flows targeted.

Paul, Luke, and Lizzy discuss how a capital war could be the next stage of the global trade war, where the EU may have leverage over the US in such a conflict, the prospect of European institutions dumping US treasury holdings, and whether the US capital account surplus is really a chokepoint trading partners could exploit.

The recent US intervention in Venezuela is a vivid demonstration of the new so-called ‘Donroe Doctrine’ asserting complete US supremacy in the western hemisphere. Paul, Luke, and Lizzy discuss the historical context of America’s new foreign policy stance and what it might mean for various neighbours including Brazil, Colombia, Mexico, Cuba, and Greenland. They also consider potential read across for Iran, Russia-Ukraine, and China-Taiwan, and whether it makes other conflicts more likely.

The coming year is going to see more economic and geopolitical volatility for investors to navigate. Paul asks members of the Aberdeen Investments research team to outline the big questions they are asking as we head into 2026 – including the outlook for monetary policy under a new Fed chair, whether China can tackle its deflation problem, and the risk of an AI bubble bursting.

The much-anticipated UK budget has finally been announced. Paul and Luke are joined by Lizzy Galbraith to break down the economic and market implications of the tax rises, spending increases, and higher fiscal headroom. Financial markets liked what they saw in the budget, but the team highlight the backloaded nature of the tax increases, question markets around future spending plans, and the possibility of change at the top of UK politics in 2026.

The world isn’t deglobalising, it’s fracturing – splitting into US and China blocs, along manufacturing, technological, and financial lines. Paul speaks to Neil Shearing, Group Chief Economist at Capital Economics and author of The Fractured Age: How the Return of Geopolitics Will Splinter the Global Economy. Paul and Neil talk about what the hyper-globalisation consensus that economic interdependence was stabilising got wrong, how the return of superpower rivalry will force other countries to pick a side, and the ways investors can navigate this new economic and geopolitical environment.