The daily business briefing: May 10, 2019

1. Trump doubles tariffs on $200 billion of Chinese goods

President Trump hiked tariffs on $200 billion worth of Chinese goods early Friday, escalating his trade war with China. Beijing said it would respond in kind to the increase of U.S. tariffs on the targeted goods from 10 percent to 25 percent. "China expresses deep regret over the development and will have to take necessary countermeasures," China's Ministry of Commerce said in a statement. "We hope the United States will meet us halfway." The two sides are meeting in Washington for a second day of talks in the latest round of negotiations seeking a deal. The world's two largest economies were close to an agreement until last weekend, when China called for changes to a draft trade deal. "We were getting very close to a deal then they started to renegotiate the deal," said Trump, who is threatening to hike tariffs on another $325 billion worth of Chinese goods. "We can't have that."

The New York Times CNN

2. Uber shares make their market debut

Uber shares make their debut on Friday in the technology industry's biggest initial public offering in years. Uber on Thursday priced its IPO at $45 a share, close to the bottom of its projected range following a bumpy IPO by smaller rival Lyft. The pricing values Uber at $82.4 billion. The company is raising $8.1 billion in the biggest IPO since Facebook, which debuted in 2012 valued at $104 billion. Chinese e-commerce giant Alibaba went public in 2014 with a valuation of $168 billion. Other high-profile tech IPOs in recent years, including those of Facebook, Twitter, and Snap, were priced higher than expected, but Uber faces strong headwinds. It lost $1.1 billion in the first quarter, facing strong competition and concerns about its business model.

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The New York Times

3. U.S. markets struggle as U.S.-China trade talks continue

U.S. stock index futures fell early Friday in a sign of ongoing concerns over U.S.-China trade tensions as the Trump administration raised tariffs on $200 billion worth of Chinese imports. Futures for the Dow Jones Industrial Average, the S&P 500, and the Nasdaq were all down by around 0.2 percent. U.S. stocks have plunged this week since President Trump announced the hikes in response to China's backpedaling on a draft trade deal. Futures wavered overnight as the new levies took effect but the two sides headed into a second day of trade talks. "This episode highlights that trade tensions are not truly resolved until a deal is signed, sealed, and delivered," Hannah Anderson, global market strategist at J.P. Morgan Asset Management, wrote in a note.

CNBC

4. Facebook rejects co-founder's call to split up the social media giant

Facebook on Thursday rejected co-founder Chris Hughes' call for the social-media giant to be split up. Hughes, a former Harvard roommate of Facebook CEO Mark Zuckerberg, said Facebook exercised a monopoly that has given Zuckerberg power that "is unprecedented and un-American." "We are a nation with a tradition of reining in monopolies," Hughes wrote. Facebook, which has more than two billion users, said regulators should focus on broader internet rules rather than carving Facebook, WhatsApp, and Instagram into separate companies. Some lawmakers are calling for the Justice Department to conduct an antitrust investigation. Zuckerberg is scheduled to discuss internet regulation with French President Emmanuel Macron in Paris on Friday.

Reuters

5. Jeff Bezos unveils Blue Origin's lunar lander

Jeff Bezos on Thursday unveiled his rocket company Blue Origin's new lunar lander, Blue Moon. Bezos, owner of Blue Origin and founder and CEO of Amazon, said the spacecraft would help the Trump administration meet the goal of returning astronauts to the moon by 2024. Bezos launched Blue Origin in 2000, and the company has been relatively quiet about its operations. Bezos said he visualizes millions of people in future generations living on space colonies, and Blue Origin can start getting the infrastructure in place. "We are going to build a road to space," Bezos said. "And then amazing things will happen." The company's New Shepherd rocket for space tourists could take its first flights carrying people this year.

The New York Times TechCrunch