THE HOT STORY

EEOC must meet high legal bar to prove DEI policies discriminate

Interviews with more than a dozen corporate legal and compliance experts suggest that the Equal Employment Opportunity Commission (EEOC) has a high bar to clear to prove companies' diversity, equity and inclusion (DEI) policies violate discrimination law, Reuters reports. New EEOC chair Andrea Lucas told Reuters last week that the agency plans to launch inquiries into corporate DEI practices to find out whether employers made race or sex-based decisions - but former EEOC chair Jenny Yang says it still has to build a case and convince the courts that a company's programs run afoul of the law.

Reuters

LEGAL

Business group's challenge to Trump's $100,000 H-1B visa fee is rejected

U.S. District Judge Beryl Howell in Washington, D.C. has rejected a challenge from the U.S. Chamber of Commerce that President Donald Trump's $100,000 fee on new H-1B visas for highly skilled foreign workers conflicts with federal immigration law and will lead many employers to cut jobs and the services they provide to the public. "The parties’ vigorous debate over the ultimate wisdom of this political judgment is not within the province of the courts," wrote Howell, an appointee of Democratic former President Barack Obama. "So long as the actions dictated by the policy decision and articulated in the Proclamation fit within the confines of the law, the Proclamation must be upheld."

Reuters

WORKFORCE

USDA lost 20,000 staff in first five months of Trump administration

In the first five months of President Donald Trump's administration, over 20,300 employees, approximately 20% of the U.S. Department of Agriculture's workforce, departed, according to a report from the USDA's Office of Inspector General. The report indicated that about three-quarters of these departures were due to a financial incentive program aimed at reducing the federal workforce. U.S. Senator Amy Klobuchar said: "Losing nearly 20% of all USDA staff weakens the department's ability to respond to challenges facing our farmers." The USDA plans to relocate about half of its remaining Washington-area staff to five hubs across the country next year.

DesMoines Register.com

ECONOMY

U.S. consumer sentiment edges up in December

U.S. consumer sentiment rose slightly in December, although concerns over affordability and job security continued to weigh on households. The University of Michigan's final December sentiment increased 1.9 points to 52.9, missing the median 53.5 reading expected among economists polled by Bloomberg. While expectations improved to a four-month high, perceptions of current conditions fell to a record low, with big-ticket purchases seen as especially unaffordable. Despite lower inflation expectations, weak job growth and a rising unemployment rate are keeping sentiment nearly 30% below year-ago levels. “Despite some signs of improvement to close out the year, sentiment remains nearly 30% below December 2024, as pocketbook issues continue to dominate consumer views of the economy", commented Joanne Hsu, director of the survey.

Bloomberg

LEADERSHIP

CEOs and investors stay cautiously optimistic for 2026

A Teneo global survey suggests that CEOs and investors are maintaining a cautiously optimistic outlook as they approach 2026, despite escalating geopolitical and economic challenges. AI continues to be a primary focus for businesses, although there are growing concerns regarding the pace of returns. The survey indicates that companies anticipate a rise in M&A activity and investment, showcasing a "guarded confidence" among business leaders.

CNBC

CORPORATE

UnitedHealth vows operational changes

UnitedHealth Group CEO Stephen Hemsley has pledged operational changes including more automation and increased standardization of internal processes following audits by outside consulting firms of the company's health services and pharmacy benefit units. FTI found that, in some instances, UnitedHealth lacked standardized documentation, including in its in‑home health assessment program. A separate report by Analysis Group on OptumRx found that UnitedHealth's pharmacy benefit manager could benefit from standardizing audit practices and increasing process automation.

Reuters

STRATEGY

Jim Beam pauses main Kentucky production

Jim Beam will halt production at its main Kentucky distillery throughout 2026 to focus on site upgrades. While other facilities remain open, the pause reflects broader industry pressures, including global trade tensions and excess inventory. Owned by Suntory Global Spirits, the company is evaluating worker roles during the shutdown in collaboration with the union. The Kentucky Distillers' Association cited “a crushing” $75m in barrel taxes and called for an end to retaliatory tariffs stemming from former President Trump’s trade policies. “We are always assessing production levels,” the company stated.

Boston Globe

INTERNATIONAL

Chinese firms relocate to Singapore amid geopolitical tensions

A growing number of Chinese companies are seeking to establish their operations in Singapore to mitigate risks associated with escalating Sino-U.S. tensions, a trend some analysts refer to as "Singapore washing." As companies explore such moves, benefits appear to favour smaller enterprises, while larger corporations face hurdles in maintaining operational integrity amidst scrutiny. "Demand has always been rising . . . and the key thing right now is that it's probably going to accelerate at a more rapid pace," said KG Tan, CEO of InCorp Group, which helps companies relocate or expand in nine Asia-Pacific locations.

Reuters

Louvre Museum boosts security after heist

The Louvre Museum in Paris has installed security bars on the balcony used by burglars who stole jewels worth $102m on October 19. The heist lasted less than seven minutes. The museum also acknowledged inadequate security camera coverage and is now implementing other changes, including a mobile police presence and 100 additional cameras. "The Louvre is learning all the lessons from the theft of October 19," the museum said. Police have identified eight suspects, but the stolen jewels remain missing.

U.S. News

VW management to continue cost cutting

Volkswagen CEO Oliver Blume has said Europe's largest carmaker will continue to cut costs as the company seeks to remain competitive in the face of sector-wide challenges. "The task now is to continue to consistently reduce our costs in order to remain competitive in the long term," Blume said. Volkswagen CFO Arno Antlitz said the German automaker must generate more revenue with fewer resources. "This requires even stricter cost management and investment discipline . . . We need more Group synergies, less complexity and a strengthening of our market position in the USA and other regions outside Europe," Antlitz said.

Reuters

OTHER

New Jersey proposes tax breaks for diners

New Jersey lawmakers are proposing a new bill to support the state's iconic diners, which have been struggling, especially post-COVID-19. State Senator Paul Moriarty introduced the "Saving Our Diners and Protecting Our Past Act" after witnessing the decline of local diners, saying: “We should keep them going, let them know we love them.” The bill aims to provide tax breaks to family-owned diners that have been in continuous operation for 25 years, exempting them from sales tax on food and beverages and offering tax credits of up to $25,000. Assembly Majority Leader Lou Greenwald emphasized the cultural significance of diners, describing them as "something that should be preserved.” The proposal is expected to be considered in early 2026.

NJ.com

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