�*oui’ �*our ai off. and the guide rails for our ai future. big tech firms plan to use ai responsibly. soft landing for the uk economy. the international monetary fund upgrades its growth forecast for the uk but warns against tax cuts. welcome to business today. markets have had a muted opening as investors hold their nerve ahead of chip leader invidious�*s earnings later this week. macy's turnaround plan appears to be working. also in the last hour we have heard from federal reserve governor who says he believes rate increases are probably unnecessary but he would like to see several more months of good inflation data before lowering interest rates. how are traders responding to this? we can speak to

a managing directorfrom the carnegie council. thanks forjoining us. what you make of those comments from the federal reserve governor? —— what do you. it is from the federal reserve governor? -- what do vow— -- what do you. it is a reasonable statement _ -- what do you. it is a reasonable statement. based _ -- what do you. it is a reasonable statement. based on _ -- what do you. it is a reasonable statement. based on economic i statement. based on economic projections, it turns out that it is always surprising, so the rush to cut rates is probably not as necessary and it may actually derail the progress we have made towards inflation and the secret here is that the balance sheet for the fed is likely to take a huge part in how rates behave in the second half of the year. even though we expect rate cut delays, the balance sheet run off stemming quite a bit here is going to be the major story for the second half. going to be the ma'or story for the

scene half.— going to be the ma'or story for the scono half.— second half. interest rates have been a huge — second half. interest rates have been a huge driver _ second half. interest rates have been a huge driver of _ second half. interest rates have been a huge driver of what - second half. interest rates have been a huge driver of what has| second half. interest rates have - been a huge driver of what has been going on with financial markets but the ai story is also a big part of that and all eyes on the results of invidious? , ., ., invidious? the bellwether of all bellwethers. — invidious? the bellwether of all bellwethers, we _ invidious? the bellwether of all bellwethers, we are _ invidious? the bellwether of all bellwethers, we are going - invidious? the bellwether of all. bellwethers, we are going through the retail results, you just mentioned macy's, and the numbers were good for walmart as well, but there is a dampening on future expectations but nvidia is going to determine what it looks like. if you remember a year ago, it was the earnings call that changed the trajectory of the market as it were, for the year 2023, so how do they come up with something that excites investors for this year and beyond remains to be seen? but across data

centres and utilities and across real estate companies, that provide the cloud space, ai has been a game changer here, since really the chat gbc moment of the world experienced a year ago. gbc moment of the world experienced a ear ao. . ., gbc moment of the world experienced a earano. . ., ., , a year ago. thanks for “oining us. the owner — a year ago. thanks for “oining us. the owner of t a year ago. thanks for “oining us. the owner of macy's _ a year ago. thanks forjoining us. the owner of macy's has - a year ago. thanks forjoining us. the owner of macy's has raised . a year ago. thanks forjoining us. | the owner of macy's has raised its annual profit forecast in a signal that efforts to reduce cost by closing underperforming stores and trimming jobs were starting to pay off and it also beat estimates it announced in february, after it announced in february, after it announced it was going to close over 100 stores in the next two years saving around $100 million in costs this year. for more on this we are joined by our show regular. she is a principal analyst. we were talking last week about another company and todayit last week about another company and today it is the turn of macy's and their plan seems to be working? yes.

their plan seems to be working? yes, in that the numbers _ their plan seems to be working? neis in that the numbers and their plan seems to be working? nei: in that the numbers and the expectations were so low, but the truth is the department store sector is one that has been in decline almost since the year 2000. macy's unfortunately is in that sector and it is challenged in so many ways by private label, well, the private label is one of its bright factors but so many brands have their own businesses and that is hugely competitive, not to mention the low end stores like walmart are eating up end stores like walmart are eating up more of the wallet share. we keep heafinn up more of the wallet share. we keep hearing about — up more of the wallet share. we keep hearing about how— up more of the wallet share. we keep hearing about how the _ up more of the wallet share. we keep hearing about how the lower - up more of the wallet share. we keep hearing about how the lower end - hearing about how the lower end consumers are under financial pressure right now, and our last gas just ramps so macy's are trying to go for the higher end consumer? —— our last guestjust referred to that. our last guest 'ust referred to that. ~ . , our last guest 'ust referred to that. s . , ., ~ our last guest 'ust referred to

that. s . , . ~' . h, that. we have been talking about the economy right _ that. we have been talking about the economy right now— that. we have been talking about the economy right now where _ that. we have been talking about the economy right now where you - that. we have been talking about the economy right now where you have i that. we have been talking about the i economy right now where you have the affluent consumer who is spending often with luxury brands but in reality are not really sold at macy's, those brands are sold at the even higher end luxury stores and then you have the lower end economic tier of consumers which is struggling and that shopper is going to everywhere from the dollar store channel to some of the lower end mass market stores like walmart, and the bright spots are in the bloomingdale's business which is more competitive although it is a lot smaller. and in the blue mercury business which is beauty and cosmetics, that is more competitive, and those are absolutely high—end consumers and they are pockets of promise for macy's but the big

mothership is really where the challenge is and that has been the challenge is and that has been the challenge for the company now over decades. . ., ., , decades. thanks for “oining us. tarnet, decades. thanks for “oining us. target, another _ decades. thanks forjoining us. target, another retailer- decades. thanks forjoining us. target, another retailer in - decades. thanks forjoining us. target, another retailer in the l decades. thanks forjoining us. i target, another retailer in the us, it will be reporting earnings tomorrow. eu member states have approved a law to deal with artificial intelligence. it has banned some uses of ai like the police use of applications to use profiling by race, religion or sexual orientation. separately at the global summit in south korea, a number of tech companies have signed an undertaking to develop systems responsibly which include google, amazon, and microsoft. across all of this is the bbc tech journalist.

amazon, and microsoft. across all of this is the bbc techjournalist. how significant is that eu announcement? it is symbolic in that we knew it was coming but what it does signal is coming into law, a really comprehensive package of rules around the eu around ai, and we have not seen something similar elsewhere, so in terms of taking action and legislating this is what we have got with this, and there are bits in this legislation that will be uncomfortable for the big companies, around transparency, and if they don't comply with the rules, there are big fines. it is notjust being put on the naughty step, it is 7% of turnover, 35 million euros. it could be a big deal. that 7% of turnover, 35 million euros. it could be a big deal.— 7% of turnover, 35 million euros. it could be a big deal. at the moment ou have could be a big deal. at the moment you have the _ could be a big deal. at the moment you have the eu — could be a big deal. at the moment you have the eu moving _ could be a big deal. at the moment you have the eu moving forward . could be a big deal. at the moment. you have the eu moving forward with this in the uk has talked about doing its own thing and in the us we have a road map for how to deal with al going forward. how significant is

ai going forward. how significant is something like the summit in south korea in terms of getting all the stakeholders in one room at the same time trying to agree to the same guardrails or do you think it will be everyone for themselves? shes a be everyone for themselves? as a criti . ue be everyone for themselves? as a critinue of be everyone for themselves? as a critique of the _ be everyone for themselves? sis —. critique of the arrangement be everyone for themselves? s —s critique of the arrangement that be everyone for themselves? sis —s critique of the arrangement that has been agreed by the 16 companies, that essentially this is another voluntary arrangement, and really what is needed is regulation, and looking at it from the other side, this is a broad range of big players including a chinese ai firm and so there is the geographic agreement if you like across a range of countries that do not normally agree on things, that we saw with the bletchley summit that was the first stage of the series of touring summits, and we will get france next year. that is the next one. it depends how much weight you put on these voluntary agreements and how convinced the companies —— how

convinced the companies —— how convinced you are that the companies will stick to them and some people ask questions about that including those within firms. we have seen departures from open ai, in terms of people who have raised the question themselves, so those are the questions that will be answered as the breakneck development continues. within popular culture we have an importance —— important thing with the actor scottjohannson suing a company over use of ai —— scarlet. the international monetary fund thinks the uk is close to that outcome after the mild recession last year. the uk "is approaching a soft landing" after last year's mild recession, but could face a £30 billion hole in the public finances, according to the international monetary fund's health check of the british economy. the imf upgraded growth forecasts for this year from 0.5% to 0.7%,

but pointed to "difficult choices" on tax and spending in the next parliament. this is suren thiru, economics director at the institute of chartered accountants in england and wales. there are two big things, the first one suggests we have turned a corner from the session but inflation falling sharply. that is the good news. the report also shows some structure issues in the uk, such as age of population, poor productivity and getting people back into the work will hamper the growth prospects if not addressed. it is a challenging state, and for a number of reasons. the question for any future government is that they need to be clear about the challenging choices they need to make about taxes and spending, investing in public services, the tax burden. how you balance the choices is critical because there will be real challenges facing the uk economy. if they aren't addressed, like getting people into work, that is a challenge to continue growing, as we have seen recently in the uk.

now to the indian election. authorities have ordered the closure of schools because of temperatures reaching 47 celsius. the intense heat has also disrupted polling numbers as millions of indians cast their vote. numbers as millions of indians cast theirvote. 0ur numbers as millions of indians cast their vote. our business correspondent has the latest. the heat is correspondent has the latest. tue: heat is particularly correspondent has the latest. tte: heat is particularly bad in correspondent has the latest. ttl heat is particularly bad in the capital new delhi where temperatures have soared above 45 over the last few days. the met department has predicted the maximum temperature in many northern cities will hover around these levels in the coming days as the heatwave it spreads to parts of western and central india. this comes as delhi get set to go to the polls in the next few days. election authorities have extended voting times and have asked people to protect themselves against extreme heat. the indian central

bank warned that the soaring mercury could pose a risk to food inflation which has remained quite sticky in india. air—conditioner companies are seeing ac units flying off the shelves and are expecting double—digit sales growth this season. that is your business today. goodbye. stay with us here on bbc news.

marcus rashford has been left out of the provisional england squad for euro 2024. the manchester united forward has not made the list of 30 players in gareth southgate's training squad. the england manager also left outjordan henderson. gareth southgate has been explaining his decision not to include marcus

rashford. , ., :, , rashford. these are of course difficult decisions _ rashford. these are of course difficult decisions and - rashford. these are of course difficult decisions and you - rashford. these are of course difficult decisions and you are | difficult decisions and you are talking about people who are very good players and who have been an important part of what we have done over a number of years. with marcus rashford, ifeared other plays in that area of the pitch have had better seasons, that area of the pitch have had betterseasons, it that area of the pitch have had better seasons, it is as simple as that —— better seasons, it is as simple as that -- i better seasons, it is as simple as that —— i feel other players. betty glover is at the bbc sport studio, who is out and who is in? 2st studio, who is out and who is in? 24 days until the beginning of trolling and we are getting —— until the beginning of the euros and we are getting a sense the england squad, which has got to be whittled down to 26 players by the beginning of the tournament. marcus rashford is not in the squad. not necessarily surprising given his form for manchester united, scoring just eight times across all competitions

and he has