shall take welcome to bbc news, broadcasting to viewers this is the business briefing. i'm victoria fritz. an $82 billion price tag, but it's never made a profit. investors pile aboard uber for the biggest stock market debut since facebook. but are they being taken for a ride? plus — stepping up the trade war. as talks continue the us raises tariffs on 200 billion dollars of chinese goods. china's vice premier says it harms both sides and the whole world. and on the markets:

asian shares a little bit higher but those higher tariffs and good came into effect about half—an—hour ago. —— goods. we start on wall street — where traders are gearing up for the biggest us stock market debut since facebook sold shares seven years ago. taxi app uber will begin trading on the new york stock exchange later today — let's show you some of the number. late on thursday uber announced it's pricing each share at $45. that gives the company a valuation of over $82 billion. a huge sum of money — but way down on the $120 billion. that's what some people were talking about a few weeks ago. that's because investors have become a bit more cautious.

rival taxi app firm lyft listed on the stock market at the end of march — and shares have had a very bumpy ride— it's lost a quarter of its value since then. lyft and uber are both losing money at an alarming rate. uber lost around a billion dollars in the first three months of the year. uber sees itself — not so much as a taxi company — but as the future of transport and logistics. it has a food delivery business — it's developing driverless cars— and is expanding into electric bikes and even freight hauling. adding to concerns though — thousands of its drivers across the us — and here in the uk— went on strike this week. they are angry that uber executives and investors are making billions —

while they make as little as $9 an hour after costs. a lot of people are going to become extremely rich from this flotation, that was never unexpected, but the value is under what a lot of a nalysts value is under what a lot of analysts have predicted. will uber be able able to fix its problems, grow its business and eventually turn a profit? —— uber. the protesting drivers highlighted the fa ct protesting drivers highlighted the fact that profit is a long way off. sure, —— shaw, urban mac, has to fix many cars, but that's at least half a decade away and uber is playing catch up on this technology. another company like haslar or waymo might get there first. uber picked its initial investors carefully in the hope of discouraging short selling, the sort of thing that lyft is suffering from at the moment. uber

has a more diverse business and is a much bigger company overall but that might mean the challenge is even greater as a result. gervais williams is senior executive director at fund manager miton group. do you think investors are being taken for a ride on this? what's been interesting is that it's been very much dominated by growth stocks. companies which are making losses but moving into profits. it's that momentum area which has been so dominant. that's what's encouraging investors. i wonder if there is a fear of missing out, investors want to back the latest big thing, regardless of the risks, and the fa ct regardless of the risks, and the fact that most of these companies don't ever make a profit. there is a meal —— a real missing out aspect.

you have to participatejust meal —— a real missing out aspect. you have to participate just a little bit. we've got these rising stocks which have so much momentum, andi stocks which have so much momentum, and i think that's become a very dominant feature. the other thing is, it's difficult to assess the risk premium on this. right yes the cost. we a re risk premium on this. right yes the cost. we are all familiar with uber. familiar with lyft. it is easy to forget, isn't it, that they are losing money hand overfist. forget, isn't it, that they are losing money hand over fist. there are many other ordinary companies which are generating profits, where perhaps they are not getting the allocation of capital. where these companies are absorbing it. let's talk about some of the competition. we have huge companies in china which are crowded out uber in the

market space. expect uber. how likely is it that a company like uberand likely is it that a company like uber and retrofit it, you when we have china building cities from scratch to be able to have d riverless scratch to be able to have driverless cars, to be able to have ride handling companies right at the very start. the whole nature is that based on technologies, they have strong software in the middle but people develop new software. new systems come through so it's not just about the software, it's also attracting drivers and all the other things you need to actually deliver a service. if you've got to software, there are quite a few drivers who are striking because they want more. if they don't want more, they might go to another taxi up. we will leave it there, thank you for coming in. let's turn to our other top business story — as you've been hearing, talks have been going on in washington between president trump's top economics officials and a chinese delegation led by

vice—premier liu he. they are trying to find a solution to the escalating trade war between the world's two biggest economies. in the last half hour the us has carried out a threat to raise import taxes on $200 billion worth of chinese goods — from 10% to 25%. president trump has accused the chinese of backtracking on earlier agreements. we were getting very close to a deal and they started to renegotiate the deal, we can't have that, so our country can take in $120 billion a yearin country can take in $120 billion a year in tariffs, paid for mostly by china. a lot of people try to steer it in china. a lot of people try to steer itina china. a lot of people try to steer it in a different direction. it's ultimately played for largely by china. let's talk to our asia business correspondent — karishma vaswan. who is being hurt most by the tariffs? what is the likely outcome — will we see a deal?

president trump says china is bearing the cost but that's not entirely accurate. up until the first is that tarot ‘s, $200 billion worth of chinese goods. then have to sell those products back to american consumers. absorbing the cost of those tariffs. it's a very different picture, victoria, when you have a 2596 picture, victoria, when you have a 25% tariff, more than double what is currently in place or was in place until about half—an—hour ago. this time around, economists are saying it would be very difficult for american firms were making these products in china, not to pass that cost onto american consumers. which means effectively it will be americans who will be paying higher prices. the other options, there is evidence to show that companies, not just american ones, are moving out

of china into other parts of southeast asia like vietnam and indonesia to manufacture their product and that's how china hurts. these countries are no longer doing business in china but there is a substantial amount of pain that american companies and now american consumers will have to face because of these tariffs put in place by president trump. i'm looking for a silver lining. at least these talks are not off completely. that's a great way to put it. the fact these talks are continuing, another statement we suspect, later on friday, but the fact remains this is a very serious escalation of the trade tensions between the two sides ofan hourto trade tensions between the two sides of an hour to leave ——at least, it looks like the trade war is back up. now let's brief you on some other business stories.

brazilian mining giant vale lost $1.64 billion in the first three months of the year — as it struggled with the aftermath of one of the countries worst mining disasters. the company has had to shut down mines and pay compensation after a dam at brumadinho collapsed in late january, unleashing a torrent of toxic mud that buried nearby buildings, including a company cafeteria, killing at least 237 people. amazon founderjeff bezos has unveiled a mock—up of a new lunar lander spacecraft he hopes will take equipment and humans to the moon by 202a. the unmanned, reusable blue moon vehicle will carry scientific instruments, satellites and rovers. he told an audience of potential customers and officials from nasa: "it's time to go back to the moon, this time to stay". and now — what's trending in the business news this morning.

facebook has been responding to an opinion piece in the new york times from its billionaire co—founder chris hughes. he said it has become too powerful and should be broken up. "you don't enforce accountability by calling for the breakup of a successful american company," the company wrote in response. bloomberg has analysis on the trade war. they include its massive holdings of us treasury bonds. but trying to use that leverage could be risky, it says. and business insider counts the cost of uber choosing to float during the current market turmoil. uber chose the worst possible week to have its ipo, and the bad timing will cost it billions. and don't forget — let is know what you are spotting

every care home in england is to get more gp support to ensure residents aren't given too much medication. the nhs says the move could reduce hospital admissions among elderley people in care by up to a0%. our health correspondent rob sissons reports. it's a simple idea. it's been tested at this care home, derbyshire house in nottinghamshire, and has reduced hospital admissions and cost ——at the drugstore. a gp practice bodies with a care homes are residents help can be checked by doctor moore. rachel visits every two weeks. is there anything urgent we need to deal with initially? and what began as an experiment here in nottinghamshire is now being rolled out of across england's care homes. the major benefit is the patience to

get continuity of care which we know isa get continuity of care which we know is a problem across the nhs. we get to know the patient‘s model, we get to know the patient‘s model, we get to know the family is more, we can get more involved in understanding what they would want to happen should they become acutely unwell. across england, around 400,000 people living 17,000 care homes. on average, residents take seven men in the day. the many, it's more than ten a day. charities have voiced concern for years that some residents may be on too much medication, criticising an overreliance on antipsychotic medication for dementia patients full ——as chemical costs. medication for dementia patients full --as chemical costs. the key thing from our perspective is to make sure the right drugs are given at the right time and the people don't have drugs unnecessarily because we know that that is not good for health. now the nhs england long—term pan involves recruiting thousands more clinical pharmacists. the aim is for every care home to

have access to one. for that story and more, breakfast will be coming up at six o'clock with charlie stayt and naga munchetty. they'll have all the day's news, business and sport. this is the briefing from bbc news. the latest headlines: in the past hour, the us government has carried out its threat to raise tariffs on chinese imports. beijing says it will retaliate. the anc is on course to when south africa's general elections but with a reduced majority questions remain for cyril ramaphosa's government. final results will be known on saturday. plans for a research centre to develop a different approach to climate change. now it's time to look at the stories that are making the headlines in the media across the world: we begin with the new york times,

the paper that yesterday had a co—founder of facebook saying it should be broken up, today has facebook‘s response, where they've pushed back against the claims. let's look at bloomberg now. it reports on what it calls a low pricing as uber floats on the new york stock exchange. we ask whether it'll take getting driverless cars moving before they really clock up the profits. we will have more on that story in a second. the i paper among many with news of a health breakthrough. scientists have for the first time been able to repair heart disease in a pig, raising hopes for the millions of people around the world with the problem. c—net picking up onjeff bezos and his out of this world ambitions. the amazon boss and world's richest man held a big launch of plans for humans to move to the moon. it is the first small step in