this is your business briefing. i'm sally bundock. up for sale: president macron of france looks to privatise parts of the public sector and raise billions for an innovation fund. china hits back against us tariffs as the country's media calls president trump a fool. we'll look at the potential fallout as the world's top two economies go head—to—head on trade. and on the markets: the exchange between the us and china is pulling markets down. hong kong today is closed for a public holiday but you can see japan and some of the main markets are falling. let's get started. france is set to unveil a law new which could see sweeping reforms to the country's public services. the move comes as the government

looks to improve its finances by selling shares in its state owned enterprises. france will announce legislation which will enable private companies to buy larger stakes in the airport operator adp, along with the energy company engie and the country's state—owned gambling business fdj. on wednesday, the government is also set to give the green light to a law that will pave the way for increased competition for france's national rail operator sncf. president macron wants to use the cash from the asset sales to help finance a $10 billion innovation fund. with me is vicky pryce, chief economic advisor, cebr. nice to see you. so what do you make of this idea, part privatisation, and will he be able to get the law through? i think he will. he's already made a lot of progress in terms of getting agreement from

parliament on the reforms he wants to see from the state railway company, so i suspect he's going to be able to get the law changed as well, which at the moment restricts the government from selling shares, in particular in the sense of not allowing them for the moment to reduce the stakes in companies to less tha n reduce the stakes in companies to less than 50%. for example, there is one where the state has a share of just over 50%, but for the moment they can't release that, so they wouldn't be able to sell anything u nless wouldn't be able to sell anything unless they get the law changed. what he would get is extra money but the interesting thing about france is it's always been looked at as the type of country in the developed world, anyway, with one of the largest shares of the economy being owned by the state, and that is going to be quite a change in terms of how it moves forward. and macron epitomises that, if you like. to

reduce the role of the state in a way and do exciting things like invest in innovation. what will the opposition be like? he's already had to deal with significant strike action with the rail operator, for example. he seems to have held firm, come through and come out as the winner. will he be opposed to this story? i think there will be opposition. we've certainly seen parts of parliament saying they don't actually approve of this because, particularly the left, as we've seen with the rail company of course. i think he still has a majority and will be able to get it through and the population is ready for it, and that's the interesting thing about it. of course he does need the money. he has already been attacked for some of his plans and what they would do to his budget deficit, and for the moment he is doing 0k, deficit, and for the moment he is doing ok, but all the plans he does

have would increase it, so he does need the cash. there would also be concerned about who owns what parts of key services and facilities in france that are owned by the state. there that issue, i.e. china and other countries getting involved and snapping up key assets, but the government always has two sell these ideas. they come up with these big figures — by $10 million innovation fund, we will do exciting things. to what extent will it boosts the economy? it gives everyone on the outside the impression that france is changing and it's worth investing in the country. we've already seen a switch, for example, from the uk and places like germany. france wants to be right in the centre of europe and to be seen as a dynamic economy. so far it has had the reputation of being bureaucratic and not really favouring a lot of private investment coming in, and of course the state is so important. i think that will change the perception.

that's basically what he is trying to do, and if you put that alongside a number of his other reforms, such as easing up on bureaucracy, simplifying the tax system and so on, you can see that france is really wanting to be right at the centre of what perhaps foreign investors may want to be looking at when they are trying to decide where to invest. we shall watch this space. thank you very much for your ta ke space. thank you very much for your take on that. we will update you. what's next in the us—china trade spat? after us president donald trump announced he's set to impose 25% on $50 billion worth of chinese goods on friday, china has responded in kind with tariffs of its own. but chinese media has also mocked president trump over his trade plans, saying, "wise men build bridges but fools build walls." so what's driving this looming trade war? our us business reporter, paul blake, has been looking into it. stand aside, everyone, there's a new ta riffs stand aside, everyone, there's a new tariffs in town. i assume it's been

announced by now but we are putting ta riffs announced by now but we are putting tariffs on $50 billion worth of technology and other things. trade wa i’s technology and other things. trade wars are never formally announced but this is as close as it comes. the trade war was started many years ago by them and the united states lost. 0ver ago by them and the united states lost. over $800 billion over a period of year, each year, closed $800 billion in losses on trade. not going to happen any more. can't happen. from early in a month, the us will begin collecting 25% on some $35 billion worth of goods from china with the administration saying it was prepared to rachid redouane to $50 billion in the nearfuture. translation: even before the announcement was made, chinese officials were promising to strike back with tariffs on us goods of a similar size. ring it, back with tariffs on us goods of a similarsize. ring it, says back with tariffs on us goods of a similar size. ring it, says the white house, warning any retaliation would be met with even more tariffs. the trump administration argues these measures are vital for the

us‘s economic future but, as the world's two largest economy skirmish, businesses are worried about being caught in the crossfire. we think this puts us manufacturers atan unfair we think this puts us manufacturers at an unfair disadvantage. there are unfair trade practices but the way this is going about will hurt the domestic industry, us businesses and jobs. a trade dispute between the chinese and the americans has been simmering for months and, while most economists on wall street say the economic impact has so far been minimal, many people are left wondering if the two sides are engaged in a full on trade war. now let's brief you some other business stories. france is threatening to take the unusual step of fining general electric if it fails to create a set number ofjobs in the country. ge had committed to create a net 1,000 newjobs by the end of this year when it bought the energy business of france's alstom in 2014. but it had created only 323 jobs by the end of april. ge would face a 50,000—euro penalty for everyjob not created.

bitcoin could break the internet — that's a warning issued by the bank of international settlements. the bank's researchers also said that the race by so—called bitcoin miners to be the first to process transactions eats about the same amount of electricity as switzerland does. frank gehry. norman foster. im pei. these are some of the world's most famous architects. now add another name to the list: ole scheeren. the german is only in his 40s but has created some of the world's most famous buildings. leisha santorelli went to meet him at his latest building he designed in singapore. that thailand's tallest skyscraper,

ole scheeren has built a reputation for epic architecture. i met him at his most recent development in singapore to find out what inspires his unusual designs. singapore to find out what inspires his unusual designslj singapore to find out what inspires his unusual designs. i really believe asia is a context that looks ahead very strongly, and in a way what unites this project is really an attempt to redefine the way that things were done previously, to break with the status quo, and to ask the question, how could we develop models for the future? ole scheeren's talent don't limit him to buildings. he even decide an open—air cinema. buildings. he even decide an open-air cinema. the floating cinema in thailand was in many ways a personal project, a creation mine that started a film festival in thailand and, as we were watching movies, the ocean was slowly moving the audience. his work isn't without

controversy. after completing the ccd towers, xijinping controversy. after completing the ccd towers, xi jinping famously called it weird architecture. ccd towers, xi jinping famously called it weird architecturelj think called it weird architectural think architecture called it waird architectural think architecture has a great responsibility and i believe it should not be short lived and should not be fashionable in that sense, but it should be really born out of a question of what buildings do — not only how they function, but what they do the people and how they can engage life and orchestrate life in public places. scheeren's next stop is in faraway and it's sure to get attention. it's called empire city in vietnam and resembles rice terraces in the sky. that's it for business briefing this hour. see you in a moment. more details on the

government's £20 billion boost to the nhs in england will be set out by the prime minister today. theresa may will say later that the nhs is the government's top priority for spending and that the health service will be funded in a responsible way. here's our health and science correspondent james gallagher. the nhs has been part of british life and nearly 70 years, but it is feeling the pressure. patients are waiting longer to be seen in amd or to get cancer treatment. but now more money has been found. an extra £20 billion a year by the financial year starting in 2023. so where is that cash coming from? that will be through the brexit dividend, the fa ct through the brexit dividend, the fact that we are no longer sending vast amounts of money every year to the ee you once we leave the eu, and

we asa the ee you once we leave the eu, and we as a country will be contributing a bit more. those last few words could affect your paycheque. the idaa could affect your paycheque. the idea that there is a brexit dividend is pure fiction. it's a pure mattar of arithmetic. thara is pure fiction. it's a pure mattar of arithmetic. there will be no axtra of arithmetic. there will be no extra money in four yaars' tima bacausa extra money in four yaars' tima because of tha extra money in four yaars' tima because of the financial arrangement wa'va because of the financial arrangement we've come to with the european union. labour says it would put even more money into the nhs while the shadow chancellorjohn mcdonald said the government was relying on a magic money forest. patients are not going to see their care reddit the improved overnight. some critics are even arguing this financial boost is still not enough. the prime minister wa nts still not enough. the prime minister wants the nhs in england to produce a new ten year plan which would include cutting waste and boosting mental health services. the announcement will also mean more money for devolved governments in scotland, wales and northern ireland. more on that story on breakfast in about 17 minutes' time.

charlie stayt and louise minchin will have all the day's news, business and sport. they'll be live in volgograd where england's world cup campaign kicks off tonight with a match against tunisia. this is the briefing from bbc news. the latest headlines: president trump's zero—tolerance policy on migrants has been condemned as cruel and immoral by former first lady laura bush. earlier president trump's wife, melania, said the country needed to govern with a heart. mexico's world cup win over champions germany has triggered mass celebrations in mexico city, and stunned fans across the globe. and on the markets: addiction to electronic games has for the first time been officially recognised as a mental health condition by the world health organization. that is the story we are asking for your opinion on the day. keep

sending in your thoughts. now it is time look at the stories making headlines across the world. we begin with the financial times, where german chancellor angela merkel is locked in a coalition showdown on how to deal with the refugee crisis. it comes as the aquarius, a rescue boat carrying hundreds of migrants, arrived safely in the spanish port of valencia. let's look at mexico's national paper, milenio, where el tri's shock win over germany is is being called a historic triumph. it is of course a very different story in germany. ziet online says it is now time to start the relegation battle. on fox news, the us‘s controversial family separation policy at the mexico border is dominating headlines. democrats have been visiting immigration facilities to meet with families that have been separated. in the last few hours, both first lady melania trump and former first lady laura bush have issued statements condemning the practice.

on the front page of the guardian, british pm theresa may's promise of extra funds for the nhs from a brexit dividend are being widely ridiculed, with questions over how the government will actually fund the commitment. and finally, on bbc‘s website, more bad publicity for tesla, with one of its cars filmed while engulfed in fire in california. telsa said it would investigate what it calls an extraordinarily unusual occurrence.