this is business live from bbc news with victoria fritz and maryam moshiri. live on bbc news. global trade and economic growth at risk as the trade war escalates between the world's two biggest economies. live from london, that's our top story on friday 10th may. beijing says it will retaliate, after the united states more than doubles tariffs on $200 billion worth of chinese imports. we'll cross live to shanghai. also in the programme... 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? and on the stock markets — volatile, heavy trading as cautious optimism on a trade truce between the worlds heavyweights starts to sour. and how far have the markets been taken by surprise this week by the return of "event risk"? not only the us—china trade war, but iran tensions and north korea's missile tests. we'll put the week into context with our friday editor andrew walker. today, we want to know... as a new survey shows young adults have unrealistic expectations about how much and when they will inherit money, are you saving for your future or hoping for a windfall? let us know — just use the hashtag bbcbizlive. hello and welcome

to business live. your special friday edition. we start with the us—china trade war, which has dramatically escalated in the past few hours. china says it will retaliate, after the us followed through on its threat to more than double tariffs on $200 billion worth of imports from china. the rate was hiked to 25% from 10%, even as two days of negotiations began in washington between top us officials and a chinese delegation led by vice premier liu he. the talks, aimed at ending the 10—month trade war, are due to resume on friday after failing to achieve a breakthrough in a 90—minute meeting. president trump reiterated his claim that china had backtracked on earlier agreements. we were getting very close to a deal, then they started to renegotiate the deal. we can't have that, we can't have that. so our country can take in $120 billion a year in tariffs. paid for mostly by china, by the way, not by us.

a lot of people try and steer it in a different direction. really, it's paid, ultimately, it's paid for by, largely, by china. robin brant is in shanghai for us. i have one question for you, what do you think will happen now? we know two things, we know the talks will continue on friday. there was more pessimistic belief that the whole thing could collapse. we also know that despite protestations from the man leading the chinese delegations, liu he, saying tariffs are unfavourable for both nations, that both nations are going to impose further tariffs. the americans, as you alluded to their in some detail, have an increase from 10—25% on $200 billion worth of trade leaving this country. china said it will retaliate. in a brief statement released by the industry of commerce, they said china deeply regrets it will have to take

unnecessary or rather take necessary countermeasures. they didn't give any details on what those countermeasures will be. in terms of will it be tariffs, there are two things to watch out for. will they be proportion as in the past or will china choose to escalate, in terms of tariff china choose to escalate, in terms of ta riff levels 7 china choose to escalate, in terms of tariff levels? the pool of goods china can subject to retaliatory tariffs, much smaller. much less coming here from the us. historically, what china has done on top of terraces look at nontariff measures. will it roll back on some of the pledges it has made in negotiations so far? will american firms operating here suddenly find the license they are applying for doesn't come through as quickly? we will have to wait and see. we certainly welcome and thank you. now to 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. late on thursday, it 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 some people were talking about a few months ago. that's because investors have become a bit more cautious. lots of stuff going on, robin brant alluding to some of it. but also this... shares in smaller rival lyft have had a bumpy ride since it listed on the stock market at the end of march. 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. but 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.

with us is richard clode, fund manager, janus henderson. the interesting thing about your fund is you are planning to invest in uber, why are you doing that? they have two massive markets they are expanding into, the ride hailing and food delivery. those could be $i trillion markets. they are still, despite people thinking uber are ubiquitous, last year only 2% use them. it plays into demographic trends. we will mention millennial sight of young people are not driving. the level of teenagers driving. the level of teenagers driving is half then it was years ago. their driving less cooking less. we think there is a lot of great ahead and we think they can make money in the future. money is

the key thing here, taxi mic might make money but spends a lot of money as well. how worried are you about the profit overgrowth argument? this isa the profit overgrowth argument? this is a key debate today because we are ina is a key debate today because we are in a world of cheap money. this is a company that raised $25 billion over 23 funding rounds over a decade and still losing billions and a lot of its competitors are also doing that. incredibly low interest rates and quantitative easing in all this money chasing growth where they can find it. it's unsustainable longer term. we want to see some rationality in that competition. we do think that will come, either through central banks or investors becoming more rational and less risk appetite. what they're doing this week has helped this week. that is why the evaluation has gone down to $80 billion. there is caution. what do you think the main are facing uber in the future? i think the rational competition will have a

huge impact on its longer term profitability. also regulation. this company has a very well publicised history of conflict with regulators. they have had to get rid of the founder of the company. they now have a professional ceo in charge and that's part of the reason we are investing. i don't think we would have invested under the previous management. they have a culture of asking forgiveness later. we are much more comfortable with it now. you see that in the terms of the way they are working with tfl and the safety concerns we had in london a more globally, which means they are being allowed into markets they weren't allowed to operate in before. germany, italy, japan, korea. large markets they can enter for the first time. fascinating. richard clode, great to talk to. thank you forjoining us. let's take a look at some of the other stories making the news... india's richest man mukesh ambani has bought british toy retailer hamleys for an undisclosed sum. his firm reliance brands says it signed an agreement to buy the company from china's c banner international, which acquired it in 2015.

reliance already operates hamleys stores in 29 indian cities. hamleys, which was founded in 1760, is the world's oldest toy retailer and has 167 stores across 18 countries. and it isjust and it is just down the road from us! i will take you there later if you like, victoria! profits shrank at iag, owner of british airways and iberia, in the first three months of the year, as fuel costs and other headwinds hit the airline. the group says profit before tax fell 61%, to around $96 million year on year betweenjanuary and march. it says non—fuel unit costs were down 0.6% at constant currency, while passenger unit revenue decreased by 1.4%. 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 country's worst mining disasters. the firm 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. shares of metro bank have fallen sharply again amid growing investor concern about its future. the uk retail bank has lost 85% of its value since it revealed a major accounting error injanuary. at its recent earnings announcement, metro bank admitted that some of its larger business customers had begun taking money out of the bank. let's check in on the markets. global stocks rose on friday, despite a sharp escalation in the trade war between the us and china. negotiations in washington have so far failed to produce a breakthrough. we're seeing an industrial recession roil across the world, in part because of this ongoing trade war.

the world economic fundamentals have diverged from the acceleration in equity markets. we still have company valuations that are not cheap, but not overly stretched. and interest rates remain low. nevertheless, investor sentiment — or confidence — is still fragile. this is how the european markets have opened. 0pening opening in positive territory. the jury opening in positive territory. the jury is out if we will get any trade deal or if investors are right in thinking it will happen at some point. michelle fleury has the details of what's ahead on wall street today. expect a busy friday ahead for wall street. if traders aren't poring over the latest twists of the latest us—china trade talks, there are lots for investors to grapple with. there's inflation data, out before the markets even open, in the shape of the consumer price index. that's expected to show steady but undramatic price rises in america, with the main cpi rising

by 0.4% for april. and marriott international will report its first—quarter earnings. the hotel giant is expected to post higher profits and revenues, helped by rising demand for business travel in america. joining us is chrisjustham, relationship manager at seven investment management. welcome to this programme. first of all, i wanted to ask you about the markets and the trade tariff issues between china and the us. however the markets coping with all that has happened this week? we have had a couple of e—mails this morning. it seems counterintuitive, the fact that european markets are up despite the fact we have some bad news. i think if we look at this in the context of what has happened in the past week, donald trump talking over the weekend about being willing to do these tariffs. seemingly there has been some optimism and progress, given the fact he mentioned he had a beautiful letter from the chinese administration and we thought we would get a deal. unfortunately it unravelled overnight and we had

these tariffs go from ten to 25% of these tariffs go from ten to 25% of the fact the chinese administration are in negotiation seems positive. if we look back over what happened in asia pacific equities overnight, originally we had some positivity link to that letter. it dipped as a result of the tariffs coming in strong rally in the last two hours. the shanghai index ended up over 3%, a massive swing one day. the speculation could be linked to the china state team buying up assets. you have to look at this in the context of what has happened in the last week and it's been a broadly -1. if last week and it's been a broadly —1. if we go into next week with key decision about whether or not there will be tariffs put on european car—makers from the us, again, a lot of uncertainty and that is reflected by the volatility index links the euro stocks. there is a lot of uncertainty still. a lot of uncertainty. as you say, it is quite

tricky because we had some quite strong corporate earnings that have come out but the picture overall, both economically and in terms of monetary policy, it's looking like we are running out of options, if you look further down the road. we are running out of options, if you look further down the roadlj think there is a seductive narrative at the moment to suggest there might be an imminent recession and doom mongers and what have you grab headlines. we love bad news, u nfortu nately. headlines. we love bad news, unfortunately. things are ok. we think the global outlook at the moment is all right. a lot of the central bankers in particular at the moment, there is a focus on tightening of monetary policy, but the focus at the moment that overs ha d ows the focus at the moment that overshadows everything will be these trade wars. look at the dax in particular. it has a lot of big car—makers in it. if you end up having these tariffs are placed onto european auto—makers, you can end up seeing that unravelling very quickly. unfortunately, until we have a resolution, uncertainty and

confidence that drives everything. it does indeed. chrisjustham, come back soon and talk about the papers with us. still to come... new missile tests by north korea, renewed tensions with iran, on top of the escalation in the us—china trade war. after this year's stock market rallies, how will investors respond to the resurgence of "event risk"? we'll put the week in context with our economics editor, andrew walker. you're with business live from bbc news. the latest economic growth figures for britain suggest growth is a bit stronger than expected, but this could this be a "false dawn" due to factories taking part in brexit stockpiling. nina warhurst is at a playground equipment factory in ulverston this morning to find out.

have you been having a go on that slide, go on, admit it? i'm not allowed because it's not finished so it would be dangerous. i won't be trying it this morning. we are talking gdp this morning. here, they make around 10,000 items like this that i sent all over the world. as you say, they have had to think hard in the run—up to the end of march about stockpiling, buying an extra component parts in case we leave the european union in a hurry. they had to speculate hundreds of thousands of pounds on stockpiling and the thought is that will have given a bit of a boost to gdp, the expectation. barry, you are responsible of making big decisions in terms of buying extra stock, was it tricky? extremely tricky but once we analysed what we needed to do, looking at the supplier base, 80 odd suppliers, seeing where the risks were, we knew where we needed our cove rage. were, we knew where we needed our coverage. you took a hit of close to £1 million to make sure you have stock, that has to be frustrating when they kick it into the long

grass? immensely frustrating but it's another hurdle for business. we are prepared, we are waiting for it. we would like it to happen sooner rather than later. what do you do without stock now? do you think we have to wait until october, lets start getting rid of it now? as soon as we get an idea of when brexit may possibly happen, we can start to unwind it. until that possibly happen, we can start to unwind it. untilthat point, we possibly happen, we can start to unwind it. until that point, we have to keep it at the levels that allow us to keep it at the levels that allow us to give continuous service to the customer. is there an extent to which it has improved productivity, the extra pressure? the pressure within the business, we will have the most productive month of may we have had for several years. we are making things smarter. the pressure from the sales has floated through in the business is doing quite well for this time of year. isn't that interesting, the brexit boon? inflation is lower than wage growth, that could be increasing consumer spending, which was really low last year. we find out the official gdp

figures around a0 minutes. year. we find out the official gdp figures around 40 minutes. nina, thank you. if you want more on those stories, you can go to the business website. you're watching business live — our top story: china says it will retaliate, after the us followed through on its threat to more than double tariffs on 200 billion dollars‘ worth of imports from china. top us and chinese officials are due to hold a second day of talks in washington later, after a 90—minute meeting on thursday ended without a breakthrough. from the economic fallout of iran's nuclear deal, to the renewed escalation of us—china trade tensions and still a small matter of brexit... it's been another busy week in news. 0ur economics correspondent andrew walker is here to look at some of big stories making waves. let's talk about trade first of all.

we have covered so many bases on this programme about the trade situation today but what we haven't talked about so far is who is going to be affected by this? sure. you had a clip of president trump earlier in the programme saying that china is basically taking, paying the cost of those american tariffs. it is in principle possible for the exporting country to bear the true economic burden, if it has to accept lower prices. but to persuade the importing country to continue buying the stuff. i have a piece of research done by a group of economists from the new york federal reserve bank, prince and columbia universities and they find little evidence of such an improvement in the terms of trade. so the conclusion they reached, that chinese exporters are not taking lower prices, it's just the american consumer bearing the full burden. there is some benefit for the us

treasury but it's not, these are common msa, offsetting the cost on consumers. i would say in that context, we are also talking about businesses importing components, raw materials, that they use in the products they sell to american consumers. this isjust one of the things analysts have been referring to this weekends event risk. what do we mean by event risk and what are the others? it has made a bit of a comeback in some commentary on this last week. it's the idea of things going on outside of the day to day routine, predictable business of economic life that have an impact on economic life that have an impact on economic life. so yes, the political decisions taken by the trump administration on tariffs one good example. we have also had another bit of tension in iran, where the iranian government have indicated they are going to stop complying

with some of the commitments they have made india nuclear agreement. then... which has the potential, it hasn't had an enormous impact but it can move the oil market quite substantially. we also had some nuclear, not nuclear, missile tests from the north koreans, which again have the potential to be quite disruptive, particularly of financial markets, asian markets and also have wider global... political tensions? geopolitical? fundamentally, yes but geopolitical have been the thing is driving this in the last week or so, driving renewed concerns that it might disrupt business life. and you know what, we had the larger matter of a royal baby this week which i think was probably taking the pressure of some of the politicians in britain. but it is back to brexit? yes, yet again. we had seen a bit of the

impact on sterling again. sterling had a bit of a bounce a few days ago when there were these leaks, essentially, coming out of the government, that there were some sort of progress in the negotiations there that are being undertaken with there that are being undertaken with the labour party about a deal they could take to parliament and complete. exit from the european union in an orderly fashion. but labour have been saying actually, no, it's not going so well and some have been suggesting a collapse of those talks could be imminent. 0k. watch this space! andrew, thank you so much. see you again soon. in a moment, the business pages that there is, a reminder of how to get in touch. stay up—to—date with all the day's business news as it happens

on the bbc‘s business live page. there's insight and analysis from our team of editors right around the globe. and we want to hear from you too. get involved on the bbc‘s business live web page at bbc.com/business. on twitter, we're at bbcbusiness, and you can find us on facebook at bbc money. business live — on tv and online. what you need to know, when you need to know. chrisjustham from seven investment managementjoins us again. to talk through some of the big paper stories today. we have taken a different turn here, talking about savings and investments this friday. the story on the bbc website by our finance reporter, the excellent kevin peachy, the gist of this is a story about millennial is. millennial is a young people up to the age of 35. between 24—35. what this survey suggests as many

millennial bromley believe they will —— wrongly believe they will inherit a lot of money. they believe the age of inheriting money is 35 and they will get a 6—figure salary, is it putting off people saving?m will get a 6—figure salary, is it putting off people saving? is what? wright thinking you will have a big inheritance? this is what we do, it is our bread and butter. we talk about investing in a plan before you put any money to work. you have to think about the future, which is why we invest in the first place. i think that this variable itself is very difficult for people that want to get on the property ladder at the moment. i can understand why there might be some fingers crossed across the country, where they are thinking there might be some kind of upside from someone passing away at some point. my goodness me, so cynical, fingers crossed! it is symptomatic ofa fingers crossed! it is symptomatic of a wider problem that we don't educate people what a nap about finances and what to do. it not a

plan. people are living longer. we know people are living longer, clogging up golf courses left, right and centre. laughter is that hole number three? people have to invest and take care of themselves because the government won't take care of us. tony said i thought i might be as my father was a carpenter and built many houses that he rented. he passed away at 69, my grandmother had no idea how to manage money. don't count on inheritance. another says, i'm doing my best to spend my children's inheritance. good for you, my best to spend my children's inheritance. good foryou, go my best to spend my children's inheritance. good for you, go and enjoy it! go and enjoy the 19th hole in the golf course. nicola says what is this word save? people are not financial savvy enough? people think there is some kind of golden parachute that might happen but there is in and you have to ta ke happen but there is in and you have to take control of it yourselves. good advice on a friday. chris, thank you. that's it from business live today.

there will be more business news throughout the day on the bbc live webpage and on world business report. have a good weekend, bye—bye. hi there, good morning. things are going to settle down as we go through the weekend. something drier, brighter and warmer on the horizon. but, for now, we've still got to deal with some pretty heavy showers across many parts of the uk today, although there will be some sunshine between. this is the pressure chart through this morning. let's draw your attention to this area of low pressure. this weather front here, which could just trouble southern areas of the uk and the channel islands later on today into the evening. but in the meantime, some showery rain across northern parts of england and across scotland. that will continue into the afternoon. then you notice these blobs of blue and green here, some quite heavy showers developing later on, in between some sunnier spells but there could be some hail, some thunder. maximum temperatures getting up to about 12—17 degrees for southern areas, 10—12 degrees further north.

it's through this evening you notice this more persistent area of rain moves its way through the south—west of england, through southern coastal counties, the channel isles, before it clears. some residual showers across eastern areas into saturday morning. could be one or two mist and fog patches and temperatures down to about 3—6 degrees. but throughout the weekend, while there'll be a few showers just lingering on on saturday, high—pressure developing on sunday, so becoming drier and brighter. so, this is saturday. a few showers initially across eastern areas and then into the afternoon, there could be one or two just popping up elsewhere. for many, though, it will be a drier day on saturday. lengthy spells of sunshine, some light winds and temperatures will be up to about 11—17 degrees celsius, so on par with today. but as we go through into sunday, high pressure becoming firmly anchored across the uk and with that, not many isobars across the uk, so much lighter winds on sunday. with that, again, there could be

some mist and fog first thing in the morning. that will clear away. fair weather cloud developing into the odd shower, very isolated. for most, though, it's dry day with some sunshine and maximum temperatures for many of us coming up by a degree or so, so about 13—17 or 18 celsius. and then into next week, it's going to get even warmer. you can see as these oranges start to take over from the blues. so, temperatures widely in the mid to the high teens, perhaps even into the low 20s for some of us as we go through next week. with that, plenty of dry weather, with varying amounts of cloud and lots of sunshine. that's it from me, bye—bye.

you're watching bbc news at 9:00am with me carrie gracie — the headlines. the us more than doubles tariffs on chinese goods after last—ditch trade talks failed. beijing says it'll retaliate. tributes have been paid to freddie starr — following reports that the 76—year—old comedian has died at his home in spain. sunshields in space and making clouds over ice—caps — scientists call for radical new ways to fix the climate. commentator: its hazard. it's chelsea in the europa league final! and in sport, chelsea seal the deal making it the greatest ever week for english teams in europe — — a clean sweep of finalists in

the top two european competitions.