US Sheds More Jobs: Small Businesses Drive Biggest Payroll Decline in Nearly 3 Years as Job Market Weakens (Bloomberg)
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US companies shed payrolls in November by the most since early 2023, adding to concerns about a more pronounced weakening in the labor market.
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Private-sector payrolls decreased by 32,000, according to ADP Research data released Wednesday. Payrolls have now fallen four times in the last six months. 

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Wednesday’s weak ADP report risks heightening concerns of a more rapid deterioration in the labor market ahead of the Federal Reserve’s final policy meeting of the year next week. It could hold more sway than usual as one of the few up-to-date reports officials will have by then, as the shutdown delayed the government’s November jobs report.

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The drop was led by a pullback among small businesses, as companies with fewer than 50 employees shed 120,000 jobs, the report showed, in the largest one-month decline since May 2020.

“It is those mom-and-pop Main Street companies, firms, small businesses and establishments that are really weathering an uncertain macro environment and a cautious consumer,” Nela Richardson, ADP’s chief economist, said. 

Until recently, economists have largely said the labor market is in a state of low hiring and low firing. But a number of large companies like Apple and Verizon have recently cut workers or announced plans to do so, which risks driving unemployment higher.

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Main Street Bust: Economic Pain Mounting Quickly for Small Businesses Across the US (Axios AM)

Focus on Chicago

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Tear Gas, Pepper Balls, Smoke Bombs: Immigration Enforcement Turns Aggressive in Chicago, Sparking Fear and Outrage (New York Times) 

Federal immigration agents in Chicago have been asking people about their legal status outside churches, homeless shelters, apartment buildings, parks and even a cemetery. Officers have questioned both US citizens and legal residents, asking for passports and visas as proof of identity. 

The officers are using increasingly aggressive tactics. In recent days, they’ve hurled tear gas, pepper balls and smoke bombs at the public, protesters, journalists and even Chicago police officers, often without warning.  

This is very different from norms of modern policing: Officers typically release chemical agents only in extreme situations, and only after warnings. Agents have pointed guns at people who get in their way. 

Officers are lingering just off campus in some places. Last month, ICE tried to arrest a father after a daycare drop-off; in the confrontation, he was shot and killed. Now some schools use neighborhood volunteers, at parents’ request, so white adults can walk Latino children home. 

Illinois Governor JB Pritzker said that ICE was causing “mayhem” and warned that other cities would face the same fate. In response, President Trump said, “We’re just at the start. We’re going to go into other cities.” 

Next Up: New Orleans Becomes Newest Target of Trump Immigration Deployments (Bloomberg)

Federal agents have started an immigration enforcement operation in New Orleans, as President Trump’s deployment agenda expands to Democratic-led cities in red states.

New Orleans’ Mexican-born mayor-elect Helena Moreno described the reports as concerning and urged residents to understand the legal protections available to them. She said the city would monitor the operation closely as federal teams move through the city.

Explainer: Domestic Military Power at Stake as Trump Expands Troop Presence in US Cities (Bloomberg)

What I'm Reading

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Drowning in Plastic: The World’s Plastic Glut Is Set to Get Much Worse by 2040 (Bloomberg)
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Humans are continuing to produce plastic at accelerating rates, despite clear evidence that plastic is clogging oceans and beaches and breaking down into microplastics that enter our bodies.  

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The result: Global plastic pollution will hit 280 million metric tons per year by 2040, or a dump truck’s worth every second.  That is one of the alarming statistics from Breaking the Plastic Wave 2025, a report by the Pew Charitable Trusts with ICF International. 

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The report warns that if the world continues on the current trajectory, plastic-related greenhouse gas emissions are expected to surge by 58%.

Global Green Race: China Blowing Past World on Renewables and EVs (Axios)

Not only is China winning the clean energy race, but it's picking up the pace when most other economies — including the US — are slowing down, according to new McKinsey data. China now accounts for about two‑thirds of all additional solar and wind power capacity and electric vehicle sales since 2022, underscoring the scale of its lead.

Emerging economies have stepped up their deployment, but momentum in the United States and the European Union slowed in 2025 in several areas, widening the gap.

The report highlights how the energy transition is reshaping global power dynamics, with China consolidating its position as the US struggles under policy rollbacks and a slower shift away from fossil fuels. While oil and gas remain dominant and bolster America’s geopolitical clout, China’s rapid investment in renewables, nuclear, and geothermal technologies is positioning it at the center of the next energy era.

Return of the Gas Guzzler: Trump Significantly Weakens Fuel Economy Rules, Pushing Consumers to Buy More Gas (New York Times)

President Trump on Wednesday threw the weight of the federal government behind vehicles that burn gasoline rather than electric cars, gutting one of the country’s most significant efforts to address climate change and thrusting the automobile industry into greater uncertainty.

Flanked by executives from major automakers in the Oval Office, Trump said the Transportation Department would significantly weaken fuel efficiency requirements for tens of millions of new cars and light trucks.

With weaker fuel efficiency rules, car companies will “make more gas guzzlers that guzzle oil and produce a lot of pollution and cost consumers more at the gas pump,” Dan Becker, director of the Safe Climate Transport Campaign, said.

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Russia Says: No Deal Reached in Talks with US on Ukraine, ‘Much Work Remains’ (Financial Times)

Talks between Vladimir Putin and a US envoy on ending the Ukraine war were “very useful” but much work remains to be done, a senior aide to Russia’s president said as Ukrainian and European officials met in Brussels.

Yuri Ushakov said Putin and US envoy Steve Witkoff focused on the “substance” of proposals from the US, which is trying to clinch a peace deal between Russia and Ukraine, during a five-hour meeting in Moscow on Tuesday. “No compromise has been found yet,” he said.

Mideast Latest: Israel Says a Gaza Border Will Reopen, but Only for Palestinians to Leave (New York Times)

Endangering Troops: Independent Watchdog Finds Defense Secretary Hegseth Violated Pentagon Protocol in ‘Signalgate’ Affair (Washington Post)

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The Pentagon’s top independent watchdog has determined that Defense Secretary Pete Hegseth violated security protocols and endangered U.S. troops and objectives by using a personal device to share sensitive operational details on the unclassified messaging app Signal, according to people familiar with the findings in a forthcoming report.

Military Aviation News:  Northrup Grumman Reveals Drone Wingman for 'Multiple Missions' (Axios) 

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Clemency Shock: Trump Pardons Texas Democrat, Wife Who Faced Bribery Charges (Bloomberg)

President Trump pardoned US Representative Henry Cuellar and his wife of federal corruption charges, a gesture to a Texas Democrat often at odds with his own party on key issues.

Federal prosecutors  charged Cuellar and his wife, Imelda, with accepting about $600,000 in bribes in exchange for influencing policy to aid an Azerbaijani oil company and a Mexican bank.

The longtime House member is one of the most conservative members of his party’s caucus, espousing pro-gun and anti-abortion-rights positions. He also represents a district on the US-Mexico border and has praised some of Trump’s efforts to strengthen border security.

Today in US Health: RFK Jr.’s Vaccine Advisers Plan Biggest Change Yet to Childhood Schedule (Washington Post)

Federal vaccine advisers selected by Health Secretary RFK Jr. are planning to vote today on ending the practice of vaccinating all newborns for hepatitis B, and to examine whether shots on the childhood immunization schedule are behind the rise of allergies and autoimmune disorders, the newly appointed chair of the group told The Washington Post.

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Fintech News: LSEG Agrees Deal to Provide Financial Data Through ChatGPT (Bloomberg)

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The London Stock Exchange Group has agreed a deal with OpenAIthat will give ChatGPT access to its licensed financial news and data.  LSEG content will be available to the chatbot’s users in a phased roll out from Dec. 8, according to a statement Wednesday. It will allow users to analyze financial data directly within the app, it said.

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Shopping Assistant: AI Chatbots Transform Holiday Shopping With Huge Traffic Surge (Wall Street Journal)

Artificial intelligence chatbots are appearing all over retail websites and apps. The bots can help you compare thousands of items, predict price drops and personalize recommendations based on your instructions.

AI-assisted shopping traffic rose by 770% year-over-year this November. Consumers are using these services most for appliances, toys, video games, electronics and jewelry, the Journal reported.

London's Holiday Glow: The City Shines Bright with Dazzling Festive Lights at Full Beam (Time Out)

London transforms into a magical city each December, with festive light displays dazzling crowds from Oxford Street’s 300,000 twinkling stars to Covent Garden’s extravagantly over-the-top ‘The Theatre of Christmas’.

The capital offers a wide variety of illuminations across neighborhoods, spanning Carnaby Street’s imaginative eco-friendly neons to Bond Street’s jewel-inspired crowns and Kew Gardens’ 3km light trail.

Whether you’re after angelic prettiness on Regent Street, a cheeky pint at The Churchill Arms, or thought‑provoking artworks at the Southbank Centre, there’s no shortage of dazzling Christmas lights to enjoy this year.
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Music Trends: Spotify Wrapped 2025 Arrives with Bad Bunny Dethroning Taylor Swift as Most-Streamed Artist (Associated Press)
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The holiday season is here, and with it, a present for fans of end-of-year data and marketing: Spotify Wrapped has arrived!

Puerto Rican superstar Bad Bunny has been named its most-played artist for a fourth time, dethroning Taylor Swift. He is followed by Swift, The Weeknd, Drake and Billie Eilish, in that order.
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On Wednesday, the streaming giant unveiled its annual overview of individual listening trends as well as trends from around the world. Spotify users can now see their top artists, songs, genres, albums and podcasts.

The top podcast in my Spotify Wrapped? The Daily Read podcast!  

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It's the A.I. audio companion to this newsletter which goes beyond today's headlines to give you more insight into the latest stories. It's also available on Apple Podcasts.  

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If you haven't tried it, click below to listen to today's episode on Spotify.  And don't miss a personal message for Spotify listeners.

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Best of Late Night

On President Trump claiming not to know what part of his body was examined during his recent "preventative MRI":

It wasn’t the brain, OK? He did so well on the cognitive, they put him in the extra-credit tube.” 
-- Stephen Colbert

“For God’s sake, man, were you not curious at all? When they laid you down in a tube for a half an hour to 45 minutes, you didn’t want to know what they might be doing, or did you just think to yourself, ‘what a loud tanning bed?’”
-- Jon Stewart

“Here’s a theory: Maybe the part that’s broken is the part that’s supposed to know."
-- Stephen Colbert

“So you didn’t even know what they scanned, but you got a perfect score. ’Cause, by the way, that’s how they score the M.R.I.s: You either get a big stamp ‘perfect’ or you get, in red ink, ‘See me.’ ”
-- Jon Stewart

And from Late Night with Jimmy Kimmel: Trump went completely off the rails in a furious social media posting spree this week and held another all-star cabinet meeting where he couldn’t seem to keep his eyes open. Meanwhile, on Giving Tuesday Jimmy asked people on the street if it is GIVING Tuesday. Click the photo below to watch.

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