Is 3% the new 2% when it comes to the UK’s inflation target?
From The Asset Allocator Podcast by Asset Allocator
May 28, 2026 · 18 min
About this episode
The episode discusses the divergence between economists and investors regarding the Iran conflict and its implications for the global economy, alongside insights on AI and gilt yields.
On this week's Asset Allocator, Simoney Kyriakou is joined by Joe Little, chief strategist at HSBC Asset Management , to discuss the diverging opinion between economists and investors over the repercussions of the Iran conflict and what the closure and blockade of the Strait of Hormuz means for the global economy. Are investors simply ignoring the mood music? Alongside the Middle East conflict, Little and Kyriakou also discuss the mega trend that is refusing to give up: AI. Many have predicted a fundamental change to the way we live and work, while others say it is the dotcom bubble 2.0 – is the truth somewhere in the middle? Little also lays out what the high gilt yields means for your clients. Asset Allocator has made some changes; each week you can still get the same analysis and insight into asset management and asset managers, but you can now choose whether to listen or watch our episodes. Watch on Asset Allocator , Spotify or YouTube by following the links. Timestamps: 00:00 - Why are economists and investors diverging on Iran? 04:51 - UK gilt market & inflation challenges 09:55 - Pension surpluses & gilt opportunities 12:05 - AI hype & global growth outlook…
People in this episode
Host: Simoney Kyriakou
Guest: Joe Little
Topics covered
- UK inflation target
- economists vs investors
- Iran conflict
- AI trends
- gilt yields
- global economy
Keywords
- inflation
- economists
- investors
- AI
- gilt yields
- global economy
- Iran conflict
Mentioned in this episode
Organizations: HSBC Asset Management
Places: Iran, Strait of Hormuz, UK, Middle East
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