this is business live from bbc news with ben thompson and samantha simmonds. steeling themselves for a fight. the eu's top—trade official warns europe is unlikely to be spared the latest round of us tariffs. live from london, that's our top story on thursday 31st may. the tariffs would add billions of dollars to the cost of steel and aluminium sold by europe to the us. the eu has already lined up retaliatory measures. also in the programme... prosecutors raid the headquarters of korean air — investigating allegations of embezzlement against the airline's chairman and his family. and markets are looking like this — as fears ease over italy, its politics and its economics. and are you sick of proof—reading tedious lengthy documents? we'll be talking to

a london—based start—up which has developed an artificial intelligence system for law firms. a uk report says firms are giving pitiful excuses for why their boards are dominated by men. today we want to know should companies be fined for not meeting gender targets? let us know. just use the hashtag #bbcbizlive. hello and welcome to business live. welcome to the programme. europe is bracing itself for us tariffs on steel and aluminium, as negotiations draw to a close. the eu has a temporary exemption which is due to expire tomorrow. there are reports the us could announce its decision as early as this morning. if they do go into effect, america would levy a 25% tax on eu steel, and a 10% tax on the bloc‘s aluminium. the european trade commissioner, cecilia malmstrom, has already said she's not optimistic that europe can avoid some kind of restriction.

with us is simon french, chief economist at panmure gordon. thanks for being with us here on business live. we still don't know for sure whether or not the tariffs will go ahead but if they do, and it is looking likely, how big a hit is it going to be for the eu? it is significant in terms of the 7 billion euros of exports of steel. clearly, 25%, 10% tariffs, we are talking north of 1 clearly, 25%, 10% tariffs, we are talking north ofi billion euros potentially. the eu will argue, actually, that they are not a big culprit, they are not the one who is flooding the market, potentially state supporting lower prices. and therefore there is a risk i think that the eu will get caught up in what is actually more of a dispute between the us and other parts of the world, noticeably canada, max e and china. at the moment the eu have said that if the talks go ahead they

going to retaliate with tariffs on bourbon and motorbikes, is that fair? no, and a lot of it is positioning ahead of a crucial meeting between the two sides on saturday, which might come after these tariffs come in, as ben was saying, which could be today even. what you get is a lot of the rhetoric ahead of these meetings, in order to try and draw out concessions, and i think we are seeing that from both sides. and china overnight have tried to strengthen their position as well and actually is it hurting us national credibility or not? well, what is interesting in the dispute between the us and china is that you've got two very large economies with leaders who don't like taking a backward step. and potentially that leads to the rhetoric being ramped up. our expectation is that we will

see this coming back again and again all the way to the middle term us elections, which is really driving donald trump's agenda. clearly protecting us jobs versus the challenge humming from chinese commerce is key to his electoral base. and trying to stick to his pre—election promises as well. google has launched a new app — specifically for china — as it looks for fresh ways to expand in the world's biggest smartphone market. the files go app is the second china—specific app it has released since its services were banned. the tech giant's search engine is banned in the chinese market along with its app store, email and cloud storage services. amazon says it will force its users in australia to use its website in the country instead of its much larger american site from july. the move is an effort to avoid a new sales tax on certain imported goods. from july, new rules will come into effect forcing online retailers to apply a 10% goods

and services tax to all online purchases being shipped to australia from overseas. a group of major european companies has warned the uk prime minister they may cut investment without more clarity over the terms of britain's eu exit. business leaders, including from bp, bmw, nestle, and vodafone, told theresa may that "time is running out". reports say south korean prosecutors have raided the headquarters of korean air lines, over suspected embezzlement by members of the family that owns it. the company has not commented on the story. leisha sa ntorelli is across this for us, from our asia business hub in singapore. it's not the first time they have beenin it's not the first time they have been in the headlines, this family? no, this family has been in the headlines for all of the wrong reasons. let's start with the father, he is accused of evading taxes, based on an inheritance he

got from his late father. today investigators seized documents at the headquarters of korean air following allegations that the entire family may have embezzled nearly $20 million. bad behaviour does not stop there. his wife was questioned by police this week over allegedly assaulting employees renovating her house. and of course the most famous incident has to do with the oldest daughter who served time injail afterfour years ago forcing somebody to turn around because she was upset about being served macadamia nuts in a bag rather than a bowl. and it does not stop there, his youngest daughter allegedly threw water in amman‘s face after she got angry in a business meeting. both of those daughters have been fired from their jobs at korean air but overall this bad behaviour is not going unchecked. in recent times south korea's government has been tackling abuses of power and big family run

conglomerates in korea. would not wa nt to conglomerates in korea. would not want to cross those daughters any time soon! let's have a look at the markets... japan's nikkei bounced back from a six—week low as worries over italy's political crisis appear for now to have receded. mining, cars and pharmaceutical shares rose, but shipping firms and airlines were down. in europe, this is how it's looking. later this morning we'll get an update on eurozone unemployment for last month and the latest look at inflation. unemployment set to remain pretty steady at 8.5%, but inflation creeping back up. more on that in a moment, but first let's head to the us where paul blake has a look at what's ahead on wall street. it has been a tough year for facebook and at its annual shareholders meeting on thursday it could have some of its worst nightmares rehashed in front of

investors. the social media giant has been repeatedly ensnared into ongoing investigations into russian meddling in the 2016 us election. that has prompted activists to demand that the network should do more to determine what content can be put on the platform. similar calls have been made over hate speech, violence and jihadi content of. but the biggest scandal was the lea k of of. but the biggest scandal was the leak of personal data from some 87 million users which ended up in the hands of cambridge analytica. shares we re hands of cambridge analytica. shares were hammett as the news of that scandal broke in march. they have since recovered prompting the question of whether investors will ca re question of whether investors will care enough to raise these concerns at the meeting later today. joining us isjeremy stretch, head of currency strategy, cibc world markets. good to see you. let's talk about italy. it kind of steadied over night compared to yesterday when there was a big wobble. but even though they have steadied, moody's

have put them on a negative ratings watch for the moment and it is unclear what is going to happen? indeed it is and they are very large holders of italian debt and italian debt has been under pressure. in the early pa rt debt has been under pressure. in the early part of this week we have seen a little bit of a retrenchment that there is still an enormous degree of uncertainty. we don't know how the resolution will come, will there be the formation of a government via the formation of a government via the two parties who are trying to put together a coalition? 0r the two parties who are trying to put together a coalition? or will we steal a move towards a technocratic government and fresh elections still plenty of uncertainty. it is that time of the year when we reshuffle, the ftse-100, time of the year when we reshuffle, the ftse—100, who is in, who is out, and that was done last night? indeed and that was done last night? indeed and an interesting point in the context of the retailers. marks & spencer avoided the relegation zone, as it were. everybody was expecting they could be relegated? there was a great deal of concern in the context of the pressure the company is under. that would be hugely

detrimental to the business if they we re detrimental to the business if they were relegated because an enormous number of funds track the ftse—100. if they had been rejected then it would imply that people would have been selling stock and i would have been selling stock and i would have been further pressure. the board of m&s i'm sure will be relieved to. conversely we have seen carneiro in certain instances... the slew of deals that the company has been doing over the last year or so, signing upa doing over the last year or so, signing up a number of distribution deals globally has encouraged the company... and that is an interesting story because we had all but written off 0cado, an online grocery delivery firm, but signing up grocery delivery firm, but signing up those deals, particularly in the us? that was the final kicker, if you like. we had seen two or three deals over the course of the past six—12 months. the impact which each one of those had brought was gradually diminishing but once we saw the deal into the us it provided a catalyst for the market to drive

the price higher, and it carries that promotion into the ftse—100. still to come... and are you sick of proof—reading tedious lengthy documents? we'll be talking to a london—based start—up which has developed an artificial intelligence system for law firms. will be explaining how it works. you're watching business live from bbc news. if you regularly use your overdraft, do you pay a lot in fees and interest? well, the financial conduct authority says it wants to cut how much we have to pay and rein in other high costs for borrowing. it's worried fees about fees for loans, too, especially so—called hire purchase agreements. christopher woolard is executive director at the financial conduct authority — hejoins us now. good morning to you — why this clampdown on these fees right now? so, today marks the publication of

our review and what we are trying to do here is to give 3 million people in the uk who rely on high cost credit greater protection but also more control when using their borrowing. and when it comes to that borrowing, we picked up on overd rafts but borrowing, we picked up on overdrafts but also hire purchase agreements — just explain why those are so concerned agreements — just explain why those are so concerned for you? so, we've looked at four areas of the market. 0ve rd rafts, looked at four areas of the market. 0verdrafts, rent—to—own, catalogue credit and doorstep lending, all of which are high cost. 0verdraft, the concern is because of the scale of the market but also the fact that if we look at the difference between an authorised and unauthorised overdraft, for example, the charges can be very opaque and confusing. when we look at rent—to—own some of the costs of borrowing are a very, very high and you can end up spending sometimes even up to five

or six times the cost of a fridge or a freezer that it would be if you went and bought it in a normal retail store. sokolik we're looking ata number of retail store. sokolik we're looking at a number of measures, on overd rafts to try to make at a number of measures, on overdrafts to try to make sure that it is much clearer to people in the short term when they are using an overdraft a nd short term when they are using an overdraft and how they can shop around for them, which we think will save consumers around £140 million a year. but also looking at some more radical options including banning certain types of charges or capping total cost. 0n rent—to—own we think in principle the case is there to consider acas, similar to the payday cap which we introduced some years ago and we have now got to do some work to work out what the right level for the cap would be. when are you suggesting these proposals could be brought in? so, we are consulting on most of the proposals until august and so we would expect something to come in in the autumn. 0n overd rafts something to come in in the autumn. 0n overdrafts there is a large piece of work we are doing around retail

banking again for the autumn. and then finally on rent—to—own, where then finally on rent—to—own, where the potential for the cap, then finally on rent—to—own, where the potentialfor the cap, we then finally on rent—to—own, where the potential for the cap, we are looking at april 2019. you're watching business live. our top story... europe is bracing itself for a decision on us tariffs, particularly on steel and aluminium, as the negotiations who are a close. if the us takes aggressive decisions against europe it has been said that europe will respond. a quick look at how markets are faring. the ftse-100 the ftse—100 after that reshuffle yesterday which we were just discussing. it is up a third of 1%. you might have heard of artificial intelligence — but what difference could it really make for our day to day lives — and how we work. lives — and how we work? can machines really be trusted to take on the work that humans currently do, or could it actually just leave us withoutjobs?

well, luminance is one artificial intelligence platform — and it's used by the legal industry. it claims to use machine learning to do jobs that currently take a lot of time for humans. the technology was developed at the university of cambridge, and founded by a group of mathematicians and software engineers. it will pore over hundreds of contracts and legal documents in a fraction of the time a human can, and can pick out phrases that the lawyer needs to focus on — contentious clauses or key issues. it's boss, emily foges, says luminance improves efficiency by at least 50%. she's with us now. good to see you. so, it is not actually going to replace humans, this technology, it is working in conjunction with a lawyer? that's right. you still need a lawyer, the computer does not have real—world experience. it can find information for you and look at contracts and understand what it means but it cannot tell you what that means that the company in question.“ cannot tell you what that means that the company in question. if i am sat at my desk and i've got a huge pile

of documents, or they're on the computer, what does the software do? that huge pile of documents, if you buy a company thou that could be 200,000 documents. there is no way a human is going to get through those by themselves. you can either take a few documents and assume that the rest of them are all fine, which is called sampling... potentially very dangerous. yes! or you can use luminance which uses the latest developments in machine learning to read and understand those documents very fast, in a couple of hours, and feedback to you the most likely issues, by looking at patterns in language and finding out where those patterns deviate. is it something each lawyer would have to do, does the programme work in conjunction with one person or across a law firm? it will learn from every lawyer that interacts with its. straight out—of—the—box, before you have ever used it, will find patterns and looked at the language and then you interact with it and say, this is significant, then it

will start to tell you where else the pattern is replicated. it massively speeds up the process but it will not work without a lawyer involved. inevitably there is the issue about, is it replacing humans? this strikes me as the early stages ina this strikes me as the early stages in a sense of being able to improve efficiency and speed up the process but it is just a first step, i suppose as it gets more intelligent there will be more human lawyers that it can replace? there will be. but the analogy i quite like is microsoft excel. excel hasn't replaced accountants but you can't imagine your account and functioning without it. you would not think they we re without it. you would not think they were a better accountant because they were trying to do things on paper with a pen. so, they were trying to do things on paperwith a pen. so, it they were trying to do things on paper with a pen. so, it massively speeds things up and makes them more efficient but it is not taking away thejob. efficient but it is not taking away the job. if it makes it more efficient does that mean the price for lawyers comes down? that is entirely up to the lawyer in question! what we would like to think is that it is helping you to find issues which you would not

otherwise know about. we see this all the time with our customers, you open upa all the time with our customers, you open up a data area of 200,000 documents and immediately it shows them something they did not know was there. so we would like to think this is reducing the risk when you buy a company. if your lawyers are using this technology they are more likely to find the significant information. how much does it cost or does it depend? it works on a consumption model, so the amount of data you use determines how much it costs. we've got very large law firms and very small ones. we have got more than 80 across the world using luminance now. some of them have got two partners, some of them have got two partners, some of them have got two partners, some of them have got 85 global offices and it means they can all operate on the same level because of the pricing structure. is there a hope this will be applicable to other firms other than law firms? evidently big legal teams most of all. one thing which had not occurred to me before i started doing this was that some of the banks in the city of london have

legal team is bigger than the biggest law firms. huge teams. and for them they're must have legal resource constrained. as the company gets bigger there is more documentation and they have got more to do. it is only an upside for them in having technology help them understand their contracts. really interesting to talk to you. anything which helps cut out paperwork! you will still have to read your briefs! we will! later today we will find out if india has retained its position as the fastest—growing economy in the world, when the latest gdp figures are released. the economy grew more than 7 percent in the quarter ending december over the previous year, overtaking china. despite the acceleration, indian exports have remained sluggish and that's putting pressure on the economy. from mumbai, sameer hashmi reports. jewellery makers at this workshop are busy completing a large order. it is the most they have worked in a long time. for more than three decades, this company has been

producing and exporting gold and diamond jewellery. but there has been a significant crop in international demand over the past year. and the entire industry is reeling from a suspected $2 billion bank fraud. five years ago indian exports touched just over a. but since then it has been much lower. exports rose last year on the back of strong global demand but they are still far off peak levels seen in the past. and there is one more problem. india has a large trade ethicist, which is the gap between exports and imports. with global prices on the rise there are concerns that it could rise further as india imports the 80% of its oil. the imf says that the indian economy is on track to grow by more than 7% over the next two years. but first india must find a solution to its

flagging exports in order to sustain that kind of rapid economic growth. we asked you at the start of the programme about whether firms are doing enough to improve diversity on birds and asked, should firms be fined if they don't have enough women on the board and a lot of you getting in touch with us this morning. this one says... it is really boring having targets, the best person for thejob really boring having targets, the best person for the job should get thejob. this one best person for the job should get the job. this one says, best person for the job should get thejob. this one says, gender diversity, fine because it would lead to an impression of or actual tokenism. that's the problem, isn't it? setting targets but making sure the right people have got the job. this one says... it is farcical, how can you impose a fine unaccompanied for not meeting some target imposed by politicians based on ethnicity or gender and not based on norwich and experience and attitude? he says... there is no excuse, my management tea m there is no excuse, my management team consists of eight and three of those are male, which includes me.

it is certainly an interesting debate. and jeremy stretch is back with us. what do you make of this story, particularly in the city, this is a big issue, isn't it? how to get more women in the city, because it is traditionally male dominated? it is but there are more women coming through the sector. and i think that will continue to enhance the top level roles available and taken up by winning over time. but it is a very slow process. but certainly looking at some of the comments involved in the survey it is quite amazing that... you would think we were talking about the victorian era rather than the modern—day, which is rather depressing to say the least. some of the comments from the survey... women are not a good fit in the boardroom because most of them do not want the hassle of a big, who is they don't understand the context issues involved in board meetings — this has actually come from executives in a big firm! do you think that actually this is a

generational thing and literally these views will die out with those people who...? these views will die out with those people who. . . ? well, these views will die out with those people who...? well, it's astonishing that people are prepared to continue to evoke these messages because it seems totally alien. when you're thinking about somebody in a board you're thinking about somebody in a boa rd level you're thinking about somebody in a board level role, you're talking about decision—making, problem—solving, dealing with contentious issues, all the things which everybody deals with on an everyday basis, particularly women in any environment. to suggest that they cannot deal with context issues is absurd to say the absolutely east. i don't understand! i don't wa nt east. i don't understand! i don't want to get involved in this! but there is a real issue, isn't there, for firms who say that having a diverse board is really important because it is going to reflect their customer base so it is good for business? indeed and talking about theissue business? indeed and talking about the issue of fines, you can argue about whether there are merits to that and in a sense the customers of the business but also the shareholders of a business can play a role, because if they deem that

the company is not representative of the company is not representative of the way that they view the world then of course they can vote with their feet whether that be in terms of shareholdings or in terms of their custom. so i think moving away from fines i think it is about looking at a carrot rather than a stick approach but nevertheless there is plenty of room still to be taken in terms of enhancing diversity, which will help business in general. let's have a look at the washington post story about microsoft surpassing google to become the third most value boucaud? indeed, , become the third most value boucaud? indeed,, so there is a race between these major tech companies to be the first trillion dollar company, that's the holy grail, if you like! they have maintained a lead for a considerable period. i think it is interesting that in the context of those big companies like apple and alphabet as well, they do have a predominant in terms of earnings in one particular area or product whether that should be advertising or in terms of the iphone with

apple. whereas microsoft has a better split in terms of its revenue stream. that provides it with some degree of insulation if there were to be any market conditions which could change over time. that provides impetus from the microsoft standpoint but clearly there is still plenty of opportunity for the company to continue to enhance its share price. this one says... the chief executive has been fishermen in that? indeed and i think having that broad range of revenue streams is hugely important. —— been instrumental in that. 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. we'll see you again tomorrow. guess what we have got in the

forecast for you today. more thundery weather. after all of that mist and fog in the morning, that really muggy air which is over us, we will see thunderstorms erupting and reaching the south coast fairly soon. and we could see local flooding, some disruption as well. some really nasty conditions on the roads. as we go through the morning into the afternoon, more parts of the midlands and wales will experience some of those down —— downpours. they will be very hit and miss. here you can see them on the satellite image moving northwards through the morning and into the afternoon. further north it is a different story, a bit like yesterday, some great weather around overall. thursday late morning up till about noon, the storms reaching the south—east and the south, some of the moving across parts of western england and into wales and the midlands. but notice that they are scattered some not everybody is going to get the downpours. but

where they do occur, you could see flooded underpass is, that sort of thing, thunder and lightning and gusty winds as well. further norfolk much better picture, a lot more bright weather around, if not sunshine. —— further north, a much brighter the. meanwhile the cities of the north enjoying the sunshine. some of those storms this evening and overnight will rumble away, they may drift across the irish sea, it is difficult to see, they may end up in northern ireland. 0n is difficult to see, they may end up in northern ireland. on friday, again, further downpours in the forecast but this time in a slightly different place. so, we expecting them across northern ireland, so the weather is going to change for you here. also across parts of scotland, the north—west of england and again some parts of the south probably getting some showers. saturday, stole some heavy showers around, particularly across scotland and

northern ireland. but notice that across much of england and wales, some cloud but much better weather in general. more sunshine. and then through the rest of the weekend next week, it stays warm. hello. it's thursday. it's 9 o'clock. i'm victoria derbyshire. welcome to the programme. this morning we have an exclusive interview with the mum who's launching a legal battle to try to force the crown prosecution service to re—investigate her daughter's death. 22—year—old jourdain john—ba ptiste fell from her fourth floor balcony three years ago. her boyfriend, the other person in the flat at the time, tells us he didn't kill her or cause her to fall. tracey john—ba ptiste says she won't give up. she was heard, on the balcony, screaming, "somebody help me, please, somebody help me" shortly before the fall. now i can't understand

why there have been no