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This is the Blueberg Day Baqut podcast, available every morning on Apple, Spotify or wherever you listen. It's Thursday, the third of October here in London. I'm Caroline Hepki.

This is the Blueberg Day Baqut podcast, available every morning on Apple, Spotify or wherever you listen. It's Thursday, the third of October here in London. I'm Caroline Hepki.

And I'm Stephen Carroll. Coming up today. President Joe Biden seeks to deter Israel from attacking Iranian nuclear sites as the risk of a wider conflict grows.

And I'm Stephen Carroll. Coming up today. President Joe Biden seeks to deter Israel from attacking Iranian nuclear sites as the risk of a wider conflict grows.

Open Ai becomes the world's third most valuable startup with a funding round that values it at one hundred and fifty seven billion dollars.

Open Ai becomes the world's third most valuable startup with a funding round that values it at one hundred and fifty seven billion dollars.

Plus an exclusive report on the US technology being used in Russian missiles attacking Ukrainian civilians.

Plus an exclusive report on the US technology being used in Russian missiles attacking Ukrainian civilians.

Let's start with a roundup of our top stories.

Let's start with a roundup of our top stories.

US President Joe Biden says Israel should not attack Around's nuclear facilities and retaliation for its ballistic missile barrage this week. Brden's intervention marks a fresh attempt by the US to rein in Israel as G seven countries seek to cam hostilities that now threaten to spiral into a wider regional conflict. Asked if he would support the response, which some Israeli politicians have called for, the President had this to say as he got ready to board Air Force One.

US President Joe Biden says Israel should not attack Around's nuclear facilities and retaliation for its ballistic missile barrage this week. Brden's intervention marks a fresh attempt by the US to rein in Israel as G seven countries seek to cam hostilities that now threaten to spiral into a wider regional conflict. Asked if he would support the response, which some Israeli politicians have called for, the President had this to say as he got ready to board Air Force One.

Yeah, trure no, and I think there's things that will be discussed with the Israeli is what.

Yeah, trure no, and I think there's things that will be discussed with the Israeli is what.

They're going to do. But they have all seven of us three that they were writers by.

They're going to do. But they have all seven of us three that they were writers by.

Biden's comments come as the US administration continues to call for astraint by Israel in Gaza and Lebanon. Meanwhile, the possibility of direct conflict with Iran continues to impact the price of oil. Oil options show investors or betting prices will rise further as escalating hostilities raise the risk that energy infrastructure or crude tankers would be targeted.

Biden's comments come as the US administration continues to call for astraint by Israel in Gaza and Lebanon. Meanwhile, the possibility of direct conflict with Iran continues to impact the price of oil. Oil options show investors or betting prices will rise further as escalating hostilities raise the risk that energy infrastructure or crude tankers would be targeted.

Open Ai has raised six point six billion dollars in its latest funding round, giving the artificial intelligence company a valuation of one hundred and fifty seven billion dollars. Deal is one of the largest ever private investments and makes open ai one of the third largest venture backed startups, alongside Elon Musk's SpaceX and TikTok owner Byte Dance. Bloomberg understands that the funding round was led by Thrive Capital, who put in one point three billion dollars. Open AI's largest back at Microsoft, also put in seven hundred and fifty million dollars.

Open Ai has raised six point six billion dollars in its latest funding round, giving the artificial intelligence company a valuation of one hundred and fifty seven billion dollars. Deal is one of the largest ever private investments and makes open ai one of the third largest venture backed startups, alongside Elon Musk's SpaceX and TikTok owner Byte Dance. Bloomberg understands that the funding round was led by Thrive Capital, who put in one point three billion dollars. Open AI's largest back at Microsoft, also put in seven hundred and fifty million dollars.

Emmanuel Macron has endorsed a temporary tax on France's largest companies. It comes after the government announcesday planned sixty billion euros and spending cuts and tax hikes next year in a bid to reduce the deficit and bolster investor confidence. Speaking during a panel with Bloomberg Stephanie Flanders at the Berlin Global Dialogue, the French president acknowledged his country's economic challenges.

Emmanuel Macron has endorsed a temporary tax on France's largest companies. It comes after the government announcesday planned sixty billion euros and spending cuts and tax hikes next year in a bid to reduce the deficit and bolster investor confidence. Speaking during a panel with Bloomberg Stephanie Flanders at the Berlin Global Dialogue, the French president acknowledged his country's economic challenges.

Having an exceptional dexation on corpor It is something which is well understood by large companies. If this is for one year in given the livelof fort which should be made, but it should be limited and we don't have to forget. I mean we have not to forget the reality of our economy, the reality of all competitiveness and our position.

Having an exceptional dexation on corpor It is something which is well understood by large companies. If this is for one year in given the livelof fort which should be made, but it should be limited and we don't have to forget. I mean we have not to forget the reality of our economy, the reality of all competitiveness and our position.

A manual, Macron speaking there. According to anonymous government sources, a large fiscal adjustment is required to bring Francis budget shortfall of five percent of economic output from around six point one percent this year. The French government is expecting to raise just under twenty billion euros with tax increases for wealthy individuals and large companies.

A manual, Macron speaking there. According to anonymous government sources, a large fiscal adjustment is required to bring Francis budget shortfall of five percent of economic output from around six point one percent this year. The French government is expecting to raise just under twenty billion euros with tax increases for wealthy individuals and large companies.

The first ever UK EU bilateral summit is due to take place next year. Kistam announced the news alongside the European Commission President during his first visit to Brussels since becoming Prime Minister. Sleevanderline says that further collaboration between the two countries is on the cards.

The first ever UK EU bilateral summit is due to take place next year. Kistam announced the news alongside the European Commission President during his first visit to Brussels since becoming Prime Minister. Sleevanderline says that further collaboration between the two countries is on the cards.

Our alignment on global affairs provides a good foundation fall by lateral relations and we've set a solid We have a set of solid agreements in place. We should explore the scope for more cooperation while we focus on the full and faithful implementation of the withdrawal Agreement, the Windsor Framework and the TCA.

Our alignment on global affairs provides a good foundation fall by lateral relations and we've set a solid We have a set of solid agreements in place. We should explore the scope for more cooperation while we focus on the full and faithful implementation of the withdrawal Agreement, the Windsor Framework and the TCA.

European Commissioned President Ursu le Vondeline speaking their former Negotiations regarding the UK's relationship with the EU are expected to begin in December or January. Salma's administration is looking to forge deals on security and food checks, while red lines include not rejoining the Single Market and Customs Union. The EU meanwhile wants to prioritize a youth mobility agreement, energy cooperation, and reassurances over citizens' rights.

European Commissioned President Ursu le Vondeline speaking their former Negotiations regarding the UK's relationship with the EU are expected to begin in December or January. Salma's administration is looking to forge deals on security and food checks, while red lines include not rejoining the Single Market and Customs Union. The EU meanwhile wants to prioritize a youth mobility agreement, energy cooperation, and reassurances over citizens' rights.

New research from Bloomberg Economics says the Chancellor should adopt new ten year fiscal rules to free up billions of pounds in headroom our chief UK and European economists. They're calling for a radical fiscal overhaul in their paper, a plan which they say would release about thirty billion pounds without jeopardizing fiscal sustainability to find ex also argue the change would incentivize the UK government to invest for the future.

New research from Bloomberg Economics says the Chancellor should adopt new ten year fiscal rules to free up billions of pounds in headroom our chief UK and European economists. They're calling for a radical fiscal overhaul in their paper, a plan which they say would release about thirty billion pounds without jeopardizing fiscal sustainability to find ex also argue the change would incentivize the UK government to invest for the future.

Kirs Starmer has back has paid back more than six thousand pounds to cover the cost of gifts and hospitality he's received since becoming Prime minister. The Labor leader and other members of his cabinet have faced weeks of criticism over the so called free beats. When asked about the repayments during a press conference in Brussels yesterday, Starma had this to say.

Kirs Starmer has back has paid back more than six thousand pounds to cover the cost of gifts and hospitality he's received since becoming Prime minister. The Labor leader and other members of his cabinet have faced weeks of criticism over the so called free beats. When asked about the repayments during a press conference in Brussels yesterday, Starma had this to say.

Until now, politicians have used their best individual judgment on a case by case basis. I think we need some principles, so I took the pocition that until the principles are in place, it was right for me to make those repayments.

Until now, politicians have used their best individual judgment on a case by case basis. I think we need some principles, so I took the pocition that until the principles are in place, it was right for me to make those repayments.

The money being returned is understood to cover the cost of six tailor swift concert tickets, tickets to horse races, and his wife's clothing rental agreement with a high end designer. However, the movie is unlikely to draw a lineup under the row. A parliamentary watchdog is now investigating labor law dan Dona Wahid Ali, who has donated expensive suits and glasses to Starmer over an alleged failure to register his interests. Now, in a moment, we're going to bring you the latest on the Middle East. But first I just wanted to highlight and underline the research that our colleagues Jamie Rush that is our chief Your Pin economist, and Dan Hansen are chief UK economists who are frequent contributors to Radio, have been talking about and publishing. There's been a lot of debate about the UK's public debt and fiscal rules because the UK's investment is so seriously lagging behind rivals, and there's a lot of concern about missing economic growth or just simply try to live more economic growth. And Rachel Reeves, a chancer, has talked a lot about this. So Jamie Rush and Dan Hanson are now calling for and I have fleshed out the ideas around this sort of proposal. So a radical overhaul to the fiscal rules, more radical than what the Treasury appears to be considering at the moment. I think that's the point to underline.

The money being returned is understood to cover the cost of six tailor swift concert tickets, tickets to horse races, and his wife's clothing rental agreement with a high end designer. However, the movie is unlikely to draw a lineup under the row. A parliamentary watchdog is now investigating labor law dan Dona Wahid Ali, who has donated expensive suits and glasses to Starmer over an alleged failure to register his interests. Now, in a moment, we're going to bring you the latest on the Middle East. But first I just wanted to highlight and underline the research that our colleagues Jamie Rush that is our chief Your Pin economist, and Dan Hansen are chief UK economists who are frequent contributors to Radio, have been talking about and publishing. There's been a lot of debate about the UK's public debt and fiscal rules because the UK's investment is so seriously lagging behind rivals, and there's a lot of concern about missing economic growth or just simply try to live more economic growth. And Rachel Reeves, a chancer, has talked a lot about this. So Jamie Rush and Dan Hanson are now calling for and I have fleshed out the ideas around this sort of proposal. So a radical overhaul to the fiscal rules, more radical than what the Treasury appears to be considering at the moment. I think that's the point to underline.

Look, this is a proposal to tackle one of the most difficult challenges. We know the budget's going to be very difficult, and part of that is because of these rules which require that you have you know, death falling by the end of five years.

Look, this is a proposal to tackle one of the most difficult challenges. We know the budget's going to be very difficult, and part of that is because of these rules which require that you have you know, death falling by the end of five years.

Now.

Now.

They're often criticized and we've had many contributors to this program who have talked about how they need to be changed. So this is a plan outlined by our colleagues at Bloomberg Economics looking at some of the changes that could be made. It's a very interesting proposal and should contribute to the debate as we look ahead to the budget on the thirtieth of October.

They're often criticized and we've had many contributors to this program who have talked about how they need to be changed. So this is a plan outlined by our colleagues at Bloomberg Economics looking at some of the changes that could be made. It's a very interesting proposal and should contribute to the debate as we look ahead to the budget on the thirtieth of October.

Yeah. Absolutely. The piece is called keeping Government Honest and Investing for the Future. If you want to read a little bit more about the pieces and the piece of work that Jamie Rush and Dan Hanson have done, you can read it on the Bloomberg Terminal. Let's turn our attention though, of course, to the Middle East. Now.

Yeah. Absolutely. The piece is called keeping Government Honest and Investing for the Future. If you want to read a little bit more about the pieces and the piece of work that Jamie Rush and Dan Hanson have done, you can read it on the Bloomberg Terminal. Let's turn our attention though, of course, to the Middle East. Now.

President Joe Biden saying that Israel should hold off from attacking Around's nuclear facilities after the misside attack on Tuesday. Israeli forces have continued their ground incursion in Lebanon, Paul Wallace, it leads our team covering economics and government to the Middle East joins US Now for more, Paul, What exactly did Joe Biden say that? And will Israel listen to him?

President Joe Biden saying that Israel should hold off from attacking Around's nuclear facilities after the misside attack on Tuesday. Israeli forces have continued their ground incursion in Lebanon, Paul Wallace, it leads our team covering economics and government to the Middle East joins US Now for more, Paul, What exactly did Joe Biden say that? And will Israel listen to him?

I Stephen, he was very unambiguous when he was asked whether the US would support an attack on Iranian nuclear facilities by Israel. He said no. That is quite significant because even if Israel wanted to push back against that, it would be an extremely difficult operation for them militarily to do without the US help for a number of reasons, the distance those sites are from Israel and just the complexity of actually firing on them and causing them substantial damage le lun destroying them.

I Stephen, he was very unambiguous when he was asked whether the US would support an attack on Iranian nuclear facilities by Israel. He said no. That is quite significant because even if Israel wanted to push back against that, it would be an extremely difficult operation for them militarily to do without the US help for a number of reasons, the distance those sites are from Israel and just the complexity of actually firing on them and causing them substantial damage le lun destroying them.

So without US help, a lot.

So without US help, a lot.

Of people think Israel simply couldn't do it. It does have other options. A lot of people are talking about oil infrastructure, refineries, or maybe even oil export infrastructure, so there's a range of things that could do. But I think, yeah, it is significant that Biden gave a flat node to that answer to that question.

Of people think Israel simply couldn't do it. It does have other options. A lot of people are talking about oil infrastructure, refineries, or maybe even oil export infrastructure, so there's a range of things that could do. But I think, yeah, it is significant that Biden gave a flat node to that answer to that question.

Yeah. Absolutely. Meanwhile, the Iranian view, the Iranian response, what have they said since the missile attack on Israel.

Yeah. Absolutely. Meanwhile, the Iranian view, the Iranian response, what have they said since the missile attack on Israel.

So once the barrage was over, the sort of barrage of two hundred ballistic missiles, Iran said that's it for now.

So once the barrage was over, the sort of barrage of two hundred ballistic missiles, Iran said that's it for now.

It was very.

It was very.

Aggressive and saying that if Israel dares to retaliate, in its own words, then it will do something even more forceful next time. It is difficult to tell whether this is pure bluster, and it's not surprising that Iran said that, but certainly I think if its territory was attacked in a very significant way by Israel, then Iran would do something. And this is the sort of escalation that will powers so fear at the fear at the moment, the sort of spiraling conflict that just gets worse and worse and potentially becomes a region wide war.

Aggressive and saying that if Israel dares to retaliate, in its own words, then it will do something even more forceful next time. It is difficult to tell whether this is pure bluster, and it's not surprising that Iran said that, but certainly I think if its territory was attacked in a very significant way by Israel, then Iran would do something. And this is the sort of escalation that will powers so fear at the fear at the moment, the sort of spiraling conflict that just gets worse and worse and potentially becomes a region wide war.

What have we heard from Iran since the latest missile attack.

What have we heard from Iran since the latest missile attack.

So they Iran has been, you know, sort of fairly quiet, I think in the last twenty four hours or so. But again they are they're emphasizing that Israel should not react to what happened on Tuesday night with the missile barrage. They're trying to say that Israel should just let it be. In a sense, Iran wants it to be like in April where there was a barrage from Iran at Israel, didn't cause much damage, and then Israel responded with a very limited strike on an Israeli military facility. But this time there's a lot of pressure on Prime Minister Benjamin Nettinnahu within Israel to do something much more aggressive and.

So they Iran has been, you know, sort of fairly quiet, I think in the last twenty four hours or so. But again they are they're emphasizing that Israel should not react to what happened on Tuesday night with the missile barrage. They're trying to say that Israel should just let it be. In a sense, Iran wants it to be like in April where there was a barrage from Iran at Israel, didn't cause much damage, and then Israel responded with a very limited strike on an Israeli military facility. But this time there's a lot of pressure on Prime Minister Benjamin Nettinnahu within Israel to do something much more aggressive and.

So briefly then a word on what is happening in Lebanon. Then in terms of troops and movement.

So briefly then a word on what is happening in Lebanon. Then in terms of troops and movement.

So the conflict continues, Israelia strikes on Beirute continued. I think a handful of people were killed in the last twelve hours by an Israeli strike on Central Bay Route. In terms of the ground incursion, Israel suffered its first losses yesterday eight soldiers died in a battle with Heswela fighters, so that ground incursion is heating up.

So the conflict continues, Israelia strikes on Beirute continued. I think a handful of people were killed in the last twelve hours by an Israeli strike on Central Bay Route. In terms of the ground incursion, Israel suffered its first losses yesterday eight soldiers died in a battle with Heswela fighters, so that ground incursion is heating up.

Okay, well, thank you very much for joining us. That's Paul Wallerser leads our team covering economics and government in the Middle East.

Okay, well, thank you very much for joining us. That's Paul Wallerser leads our team covering economics and government in the Middle East.

Now to some special reporting from Bloomberg this morning, hundreds of billions of dollars of semiconductors from American and European companies have made it into the hands of Russia's defense industry. Despite the US and almost forty of its allies, making it illegal to send them there. That is the subject of today's Bloomberg Big Take report, which looks at how one of the missiles was used in an attack on a Ukrainian city last year which killed seven people. Our senior reporter Stephanie Baker joins us now for more. Stephanie, this is quite a complex piece about the origins of the components that go into this weaponry. Some of it can be traced back to US and European companies. How is that happening?

Now to some special reporting from Bloomberg this morning, hundreds of billions of dollars of semiconductors from American and European companies have made it into the hands of Russia's defense industry. Despite the US and almost forty of its allies, making it illegal to send them there. That is the subject of today's Bloomberg Big Take report, which looks at how one of the missiles was used in an attack on a Ukrainian city last year which killed seven people. Our senior reporter Stephanie Baker joins us now for more. Stephanie, this is quite a complex piece about the origins of the components that go into this weaponry. Some of it can be traced back to US and European companies. How is that happening?

After the full scale invasion, the US and its allies imposed export controls trade restrictions on Russia to deny Russia's military acts to Western technology, particularly semiconductors. Now, the nature of the semiconductor industry globally is it's a very complex supply chain. A lot of the semiconductor producers are US companies, but they produced those chips in Southeast Asia and China. Mostly as a result, they're not selling These companies aren't selling directly to Russia, but they're they're ending up there through a complex network of middlemen. And what I did was dig in through Russian customs records to look at who they were, and a lot of them were companies set up in Hong Kong that were mere shell companies. We went and hunted down their addresses and found there were there was very little there. One was a storage rum, beauty parlor. So this has been a very difficult trade to shut down.

After the full scale invasion, the US and its allies imposed export controls trade restrictions on Russia to deny Russia's military acts to Western technology, particularly semiconductors. Now, the nature of the semiconductor industry globally is it's a very complex supply chain. A lot of the semiconductor producers are US companies, but they produced those chips in Southeast Asia and China. Mostly as a result, they're not selling These companies aren't selling directly to Russia, but they're they're ending up there through a complex network of middlemen. And what I did was dig in through Russian customs records to look at who they were, and a lot of them were companies set up in Hong Kong that were mere shell companies. We went and hunted down their addresses and found there were there was very little there. One was a storage rum, beauty parlor. So this has been a very difficult trade to shut down.

How widespread were you able to identify? Is this practice?

How widespread were you able to identify? Is this practice?

Russia has imported millions of these semiconductors, these chips that they need to produce their precision guided missiles since the full scale invasion began, and the expert controls have proven difficult to enforce because they're not getting the kind of cooperation they need from China and Hong Kong. So the customs records are staggering to look at that so much is getting through now. In December, Washington warned that it would impose sanctions on foreign financial institutions that continued to do business with Russia's military industrial complex. It widened that threat in June and that has had some effect. The level of trade has gone down. And now it's difficult to tell because there's a lag in Russian customs records, but I think there is a tightening of the regime. We'll see if this makes it harder. It is already more difficult for Russia to import this stuff. They're having to in some cases pay more, but it is very widespread.

Russia has imported millions of these semiconductors, these chips that they need to produce their precision guided missiles since the full scale invasion began, and the expert controls have proven difficult to enforce because they're not getting the kind of cooperation they need from China and Hong Kong. So the customs records are staggering to look at that so much is getting through now. In December, Washington warned that it would impose sanctions on foreign financial institutions that continued to do business with Russia's military industrial complex. It widened that threat in June and that has had some effect. The level of trade has gone down. And now it's difficult to tell because there's a lag in Russian customs records, but I think there is a tightening of the regime. We'll see if this makes it harder. It is already more difficult for Russia to import this stuff. They're having to in some cases pay more, but it is very widespread.

Briefly, Stephanie, what have the company said about this?

Briefly, Stephanie, what have the company said about this?

Right so, they say this is an illicit diversion of their products and they don't condone this. They have taken steps to increase their compliance and check their distributors to make sure that these components are not ending up in the hands of the Russians. But it's a very difficult trade to stop, given the multi layers of distributors that are involved in selling semi conductors globally.

Right so, they say this is an illicit diversion of their products and they don't condone this. They have taken steps to increase their compliance and check their distributors to make sure that these components are not ending up in the hands of the Russians. But it's a very difficult trade to stop, given the multi layers of distributors that are involved in selling semi conductors globally.

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