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Speaker 1: Good morning. It's Wednesday, the third of January here in London.

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Speaker 1: This is the Blueberg daybak you a podcast. I'm Caroline Hepka.

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Speaker 2: And I'm Stephen Carroll. Coming up today. Hamas says Israel

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Speaker 2: has killed one of its senior leaders in Lebanon's capital.

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Speaker 1: Barklay's verish outlook wipes more than one hundred billion dollars

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Speaker 1: off Apple's sharees in just one day.

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Speaker 2: Plus Harvard's president quits after allegations of plagiarism and controversy

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Speaker 2: over anti Semitism on campus.

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Speaker 1: Let's start with a round up of our top stories.

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Speaker 2: Hamas says one of its senior leaders has been killed

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Speaker 2: by Israel and an explosion in Beirute. Salah Al Aurori

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Speaker 2: was the deputy head of the group's Pollitt Bureau and

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Speaker 2: considered to be the mastermind behind Hamas's armed wing in

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Speaker 2: the West Bank. Jossi Meckelberg is an Associate Fellow of

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Speaker 2: the Chatham House Foreign Policy Research Group. He says there

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Speaker 2: are now concerns about retaliation from Hesbala.

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Speaker 3: The idea of striking at the heart of Berault and

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Speaker 3: some such a senior figure within Hamas is what happens

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Speaker 3: next and where the Hasbala said that feel obliged to

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Speaker 3: react or it will be self actually as a.

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Speaker 2: Detailment Chathamhouse as yac Mechelberg, referring there to the Lebanese

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Speaker 2: militant group considered to be heavily armed and better equipped

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Speaker 2: than Hamas Now.

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Speaker 1: The shipping giant Mersk says that it won't allow its

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Speaker 1: vessels to sail through the Red Sea until further notice

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Speaker 1: after another of its ships was attacked over the weekend.

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Speaker 1: The Danish company joins Germany's Hapag Lloyd in pausing transit

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Speaker 1: through egypt Sewieres Canal on safety grounds. Huthi militants in

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Speaker 1: Yemen say that they are targeting merchant ships in the

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Speaker 1: Red Sea that have any kind of link to Israel

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Speaker 1: to punish Tel Aviv for the conflict in Gaza. However,

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Speaker 1: those connections have looked increasingly spurious. Iran said a warship

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Speaker 1: to the area on Tuesday, in a further sign of escalation.

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Speaker 1: As a US led task force continues to patrol the

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Speaker 1: waters off.

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Speaker 2: Yemen, British company executives are getting gloomier about the country's

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Speaker 2: economic prospects. The Institution of Directors says the fall and

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Speaker 2: confidence should help to justify an early cut and interest

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Speaker 2: rates by the Bank of England. Bloomberg's Ewan Parts has more.

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Speaker 4: Gloomy and getting gloomier. That's the verdict of company bosses

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Speaker 4: on the UK's economic outlook. The Economic Confidence Index from

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Speaker 4: the Institute of Directors dropped to minus twenty eight in

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Speaker 4: December from minus twenty one the previous month. That puts

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Speaker 4: it at the lowest level since August. But despite their

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Speaker 4: worries about the broader economy, company leaders are more optimistic

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Speaker 4: about the prospects for their own companies. That reading jumped

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Speaker 4: to plus thirty six in December from plus thirty the

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Speaker 4: previous month. In terms of kickstarting the economy, the Institute's

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Speaker 4: directors say that an early rate cut from the Bank

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Speaker 4: of England will be a good way to lift the

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Speaker 4: gloom in London, unpots Bloomberg Radio.

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Speaker 1: Now to some corporate news, Apple shares lost more than

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Speaker 1: one hundred and seven billion dollars in value after Berklay's

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Speaker 1: analyst downgraded their view on the tech chart. The stock

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Speaker 1: fell by three point six percent in yesterday's trading after

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Speaker 1: the note was published. Bloomberg's Mark German ex planes the

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Speaker 1: bearish view of the iPhone maker.

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Speaker 5: Four quarters plus in a row of holiday declines. The

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Speaker 5: earnings report that's coming at the end of January early

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Speaker 5: February will indicate that Q one was either in line,

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Speaker 5: maybe a little bit more a little bit less than

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Speaker 5: the prior quarter. You have these patent situations which are

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Speaker 5: likely to crop up in higher frequency. Now, given the

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Speaker 5: success that Massimo has had over the past few months,

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Speaker 5: you're not seeing anything in the twenty twenty four product

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Speaker 5: pipeline that is in the short term going to juice

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Speaker 5: sales to any considerable degree, so they're sensing some fragility there.

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Speaker 1: German also knows that Apple's market value rose by nearly

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Speaker 1: a trillion dollars in twenty twenty three, making yesterday's slump

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Speaker 1: just a dent in the world's most valuable traded company.

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Speaker 1: Not all analysts are bearish either. Dan Ives at Webbush

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Speaker 1: Securities expects the company will be worth four trillion dollars

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Speaker 1: by the end of this year.

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Speaker 2: Tesla has officially last its title is the world's best

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Speaker 2: selling electric car maker to China's byd The Elon musclad

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Speaker 2: company beat its target of delivering one point eight million

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Speaker 2: vehicles in twenty twenty three, but was outpaced in the

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Speaker 2: fourth quarter by cheaper models from its Chinese rival. Bloomberg

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Speaker 2: Technology reporter ed Ludlow says a wider variety of models

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Speaker 2: helped bid to pull ahead.

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Speaker 6: One thing that BYD does that's very different from Tesla

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Speaker 6: is that alongside battery electric cars, they also do plug

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Speaker 6: in hybrids. In the fourth quarter of the twenty twenty

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Speaker 6: three BYD sold five hundred and twenty six thousand, four

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Speaker 6: hundred and nine fully battery electric cars, most of them

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Speaker 6: in China, whereas Tesla handed over four hundred and eighty

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Speaker 6: four thousand, five hundred and seven globally. But if you

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Speaker 6: aggregate it over the course of the year, BYD is

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Speaker 6: only bigger than Tesla on an annual basis in twenty

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Speaker 6: twenty three if you include plug.

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Speaker 2: In hybrid that's bimbrooks ed Ludlow. Despite a strong position

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Speaker 2: and its home market of China, BYD doesn't sell in

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Speaker 2: the United States, where its vehicles would fai a twenty

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Speaker 2: seven and a half percent import tariff.

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Speaker 1: The president of Harvard University, Claudine Gay, is stepping down

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Speaker 1: after allegations of plagiarism and a campus Ferrari over anti Semitism.

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Speaker 1: In a statement, the political scientist said that she's resigning

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Speaker 1: so that Harvard can quote navigate this moment of extraordinary

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Speaker 1: challenge with a focus on the institution rather than any individual.

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Speaker 1: Her six month tenure makes Gay the shortest serving Harvard

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Speaker 1: president in history. Bloomberg's David Western says that similar challenges

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Speaker 1: face the leadership of the University of Pennsylvania and MIT.

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Speaker 7: It has been sort of a firestorm for these three

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Speaker 7: presidents to deal with exactly how you control an influence

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Speaker 7: discussion on the campus. There were also questions, as you know,

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Speaker 7: that developed over time about some of the work that

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Speaker 7: President Gay had done for her dissertation for her PhD,

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Speaker 7: and allegations that she had improperly used sources that she

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Speaker 7: did not identify.

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Speaker 1: David Western. Their criticism of Gay mounted after her testimony

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Speaker 1: to a US House of Representatives committee in December in

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Speaker 1: which she failed to condemn calls for genocide against Jews

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Speaker 1: as a violation of university policy. Congresswoman Elise Stefanik, who

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Speaker 1: questioned the former president during the session, said that her

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Speaker 1: departure was quote long overdue. Now in a moment we're

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Speaker 1: going to look at the battle for electric vehicle dominance,

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Speaker 1: Tesla officially losing its crown as the world's biggest electric

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Speaker 1: car maker. That shortly with our tech reporter Aggie Cantrell.

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Speaker 1: But first I picked this out on the Blueberg ternel

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Speaker 1: this morning. Oh it's just such a fun read. Jessica

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Speaker 1: Carl has made a twenty twenty four predictions bingo card.

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Speaker 1: It's made up of all of the Bloomberg opinion pieces

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Speaker 1: that our colleagues have written about the year ahead. But

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Speaker 1: it starts with just these wonderful images, weird and wonderful

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Speaker 1: predictions published in newspapers one hundred years ago about what

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Speaker 1: people thought twenty four was actually going to be.

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Speaker 2: Like things like beds automatically flinging children out in the morning. Carl,

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Speaker 2: I'm sure you could use that at home. Perhaps I

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Speaker 2: could probably use one myself, to be honest, men's legs

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Speaker 2: will wither away from under use.

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Speaker 1: And also what would happen to the horse where the

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Speaker 1: horses would just die out or disappear, you know, with

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Speaker 1: the motor vehicle anyway. Really fascinating song. Not terribly relevant,

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Speaker 1: I would say, actually to what the twenty twenty four

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Speaker 1: predictions are.

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Speaker 2: No indeed, which include things like the on the Bingo card,

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Speaker 2: China makes even faster hypersonic missiles, the domestication of AI,

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Speaker 2: Sally Rooney announcing a new book. You know, all the

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Speaker 2: important moments.

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Speaker 1: Yeah, absolutely, a nice one to read on the BlueBag terminal.

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Speaker 1: Then from our colleague Jessica Cole, Well.

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Speaker 2: Let's turn back to our top story now the latest

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Speaker 2: developments in the Middle East. Hamas says one of its

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Speaker 2: senior leaders has been killed by Israel in Lebanon, while

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Speaker 2: the shipping giant Marsk says it's vessels won't use the

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Speaker 2: Red Sea until further notice after one was attacked over

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Speaker 2: the weekend. Bloomberg's Bruce Einhorn has been following this story

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Speaker 2: for and he joins us, Now, Bruce, what exactly do

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Speaker 2: we know then about the killing of Salah al Aurori

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Speaker 2: in Beirut?

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Speaker 8: So we know that Hamasa said that he was killed

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Speaker 8: by an Israeli strike. The Lebanese state run news agency

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Speaker 8: also said that there was an Israeli drone attack that

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Speaker 8: it targeted an apartment building in the southern suburbs of Beirut.

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Speaker 8: Six people killed in the attack, including al Rori, who

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Speaker 8: is was the deputy head of the Paul up Euro

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Speaker 8: of Hamas. Alori had spent many years in Israeli prisons

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Speaker 8: was sent into exile in twenty ten. Since then, Israel

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Speaker 8: has accused him of being the math remind behind attacks

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Speaker 8: in the West Bank in Israel itself, as well as

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Speaker 8: being the liaison between Hamas and Iran.

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Speaker 1: How significant is it what has Israel said? Does it

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Speaker 1: lead to an escalation with Hesbola?

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Speaker 8: Well, it could lead to an escalation with Hesbel. Of

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Speaker 8: course this was an attack on a Hamas leader, not

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Speaker 8: in a Hebala leader, but it was in Beirut. There

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Speaker 8: have been back and forth attacks between Hesbala and Israel

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Speaker 8: since the start of the war in Gaza in October.

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Speaker 8: To date, even though there have been casualties on both sides,

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Speaker 8: that's been fairly contained. There has been concern for quite

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Speaker 8: a while that the situation could escalate, that there could

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Speaker 8: be the opening of another front in this war. And

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Speaker 8: as you know we heard earlier from the expert, there

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Speaker 8: is the possibility now that Hesbala may see this as

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Speaker 8: a provocation that they will need to respond to. It's

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Speaker 8: also possible that they may see it as a reason

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Speaker 8: to hold back that there may be a turn value here.

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Speaker 8: Hard to say, of course at this point, of.

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Speaker 2: Course, and this is just illustrating the complexity too of

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Speaker 2: this conflict. Another aspect has been the attacks on chips

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Speaker 2: in the Red Sea. Further disruption we're learning about mass

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Speaker 2: extending its pause announced over the weekend on vessels using

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Speaker 2: that route. What sort of effect does that have on

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Speaker 2: sort of supply chains globally.

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Speaker 8: Well, so at this point now Marisk and Hubac Lloyd

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Speaker 8: have both said that they are pausing indefinitely they're transitting

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Speaker 8: through the Sewis Canal and the Red Sea. In addition

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Speaker 8: to them, many other companies have also scaled back. At

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Speaker 8: this point, about half of the traffic that normally would

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Speaker 8: go through the Suez Canal is avoiding that route. Going

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Speaker 8: around Africa could add about twenty five percent to the

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Speaker 8: time of voyage to Europe and of course add to cost.

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Speaker 8: This at a time when the other major canal in

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Speaker 8: the world, the Panama Canal, is suffering because of a drought.

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Speaker 8: So just further astray in on global supply chains.

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Speaker 1: Does it mean though that the US led efforts to

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Speaker 1: sort of protect ships and not going far enough. What

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Speaker 1: sort of risk is there that other shipping companies will

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Speaker 1: follow suits.

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Speaker 8: Well, the US has formed a coalition, a maritime coalition

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Speaker 8: to try to protect shipping. Obviously, it has not yet

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Speaker 8: done much as far as a deterrent to the Hooties

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Speaker 8: to stop them from attacking. There was just on Tuesday evening,

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Speaker 8: Hootis fired two more ballistic missiles from Yemen into the

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Speaker 8: Red Sea. According to the US Central Command, the UN

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Speaker 8: Secretary Security Council is going to be having an emergency

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Speaker 8: meeting on tensions in the Red Sea today. There have

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Speaker 8: been since mid November, there have been now two dozen

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Speaker 8: attacks in the ed C from woody rebels in Yemen.

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Speaker 2: Okay, Brisigan Horn, thank you so much for bringing U

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Speaker 2: up to date with the developments in the Middle East. Now.

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Speaker 1: Tesla has officially lost its crown as the world's biggest

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Speaker 1: electric car maker, as its delivery numbers fell behind China's

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Speaker 1: byd in the fourth quarter. Elon Musk's company did beat

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Speaker 1: analyst expectations for deliveries, but faced fierce competition on price

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Speaker 1: from its Chinese rival. Our tech reporter Aggie Cantrell joins

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Speaker 1: US now from Berlin. Good morning, Aggie, how significant, how important?

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Speaker 7: Then?

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Speaker 1: Is this for Tesla and the global EV market more broadly.

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Speaker 9: Hi, Yes, So it is something that is quite interesting

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Speaker 9: at least for Tesla to have fallen behind BYD in

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Speaker 9: this way. It's mainly driven by the fact that BID

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Speaker 9: has a broader lineup of cheaper models in China and

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Speaker 9: China which is their home market, there's also still very

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Speaker 9: much their core market. Of course, we all saw that

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Speaker 9: clip from over ten years ago now where Elon Musk

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Speaker 9: laughed off the idea that BID was serious competition for

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Speaker 9: his company, But in more recent times he has said

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Speaker 9: that they are indeed competitive and with Tesla, and it's

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Speaker 9: interesting to see also the way that Elon Musk has

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Speaker 9: really sort of presented the value proposition for Tesla as

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Speaker 9: a company that is also very much engaged with for

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Speaker 9: instance the battery developing batteries and also at the charging

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Speaker 9: network that is something that BYD does. Also they own

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Speaker 9: their own battery supply chain, which allows for the company

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Speaker 9: to have committed to vertical integration from a very early stage.

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Speaker 9: So there's a lot of aspects of BID that makes

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Speaker 9: it quite competitive. And as you look at the broader

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Speaker 9: EV market with traditional carmakers like Volkswagen, here in Germany

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Speaker 9: trying to get into evs. They're having to make costly

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Speaker 9: deals in order to do the same thing that BYD

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Speaker 9: is doing.

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Speaker 2: What does this mean then, for China's become such a

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Speaker 2: significant export of evs.

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Speaker 9: Yes, so it is interesting that China has essentially become

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Speaker 9: a rival to Japan for the global leader in passenger

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Speaker 9: car exports now and about one point three million of

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Speaker 9: those three point six million vehicles that are being shipped

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Speaker 9: from mainland China are evs and so they've clearly this

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Speaker 9: is a real turnaround from where China was before, where

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Speaker 9: they were developing, they were producing the cars that other

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Speaker 9: countries were designing, but that you didn't have Chinese automakers

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Speaker 9: as a as a global leader. That really has changed.

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Speaker 9: And it's also interesting to see that the European car

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Speaker 9: makers are also feel threatened by this, and the EU

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Speaker 9: has also imposed this review of the Chinese subsidies of

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Speaker 9: the EV industry because there is also a potential that

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Speaker 9: they think that they are too heavily subsized and that's

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Speaker 9: risk for European automakers and the EU accounts for about

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Speaker 9: a third of all China EVE exports, so it is

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Speaker 9: a concern for China that they want to keep the

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Speaker 9: EU on side as a key trading partner in this space.

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Speaker 1: Yeah, absolutely, shifting sounds of the EV global market. Just briefly, though,

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Speaker 1: it was still a strong quarter for Tesla, surely.

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Speaker 9: Yes, absolutely, I mean at one point eight million vehicles

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Speaker 9: being delivered this year is a significant amount because especially

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Speaker 9: in the current macro market, and also we all know

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Speaker 9: that Tesla's products are not the cheapest, so they have

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Speaker 9: really performed incredibly well. And that's what a lot of

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Speaker 9: analysts pointed out too, that it shows that there is

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Speaker 9: clear momentum in twenty twenty four, especially if there are

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Speaker 9: improvements in the global economy, and that there is also

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Speaker 9: this issue that the company is facing of trying to

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Speaker 9: scale up the cybertruck deliveries. But really the company itself

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Speaker 9: is still performing very well. It's just notable as a

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Speaker 9: shift within a sort of a macro shift within the

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Speaker 9: EV space, the byd offering cheaper models has managed to

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Speaker 9: overtake their deliveries this quarter.

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