Marketplace Morning Report

Regulators tightened banking rules after the Great Recession. At a conference yesterday, Federal Reserve Vice Chair Michelle Bowman said the Fed is looking into easing rules for banks in hopes that this may mean more mortgage loans. But it also means banks may be more vulnerable to the next financial crisis. So why now? Plus, we take you on a tour of some of the physical infrastructure powering the AI boom.

From the BBC World Service: It's the start of the Lunar New Year — a major retail event. In China, AI has increasingly been merging with the shopping experience, and companies have poured billions of dollars into competing for customers over the next couple of days. Then, France and India are poised to sign a major deal for India to buy over 100 French-made Rafale jet fighters worth $35 billion. And, Cuba's world-famous cigar festival has been cancelled due to fuel shortages.

Markets seesawed over the past few weeks over fears that artificial intelligence will soon disrupt several industries, including software and financial services. As large language models reshape how brands reach consumers, traditional ad shops could also face pressure to reinvent themselves or get left behind. We'll dig in. But first, inflation cooled this winter, but will it warm up in the spring? We'll discuss how tariffs and energy costs could play a role.

We learned on Friday that inflation dropped to 2.4% — the lowest it’s been in almost five years. But certain prices are still rising much faster than that overall measure, including utilities. The National Energy Assistance Directors Association projects that people will have to spend over $1,000, on average, to heat their homes this winter. Plus, the IRS lost more than 25% of its staff to cuts. Is it ready for this tax season?

From the BBC World Service: The Chinese tech company ByteDance says it'll curb its AI video app, Seedance, which is being used to create viral life-like clips of Hollywood stars; Disney and other entertainment giants have threatened legal action over it. Then, the UK government says it will review its regulation of AI to better protect children online. And later, Starbucks is hoping AI will help turn around the company's fortunes.