THE HOT STORY

DOJ is using fraud law to target companies on DEI

The Trump administration has launched investigations under the False Claims Act into the use of diversity initiatives in hiring and promotion at major U.S. companies, including Google and Verizon. The companies, in sectors including automotive, pharmaceuticals, defense, and utilities, have received Justice Department demands for documents and information about their workplace programs, the Wall Street Journal has reported, citing people familiar with the investigations. Lawyers who practice in the area say it is unusual to see the antifraud law being used to pursue concerns about compliance with federal antidiscrimination laws. “These investigations are somewhat unique,” said Lisa Dykstra, a partner at Morgan Lewis. Deputy Attorney General Todd Blanche said the False Claims Act would be a “weapon” used to go after companies that “continue to adhere to racist policies.”

The Wall Street Journal

LEGAL

Challenge to Trump's H-1B visa fee moves to appeals court

The U.S. Chamber of Commerce is appealing a federal court's refusal to block the Trump administration's $100,000 fee on applications for H-1B visas. Last month, U.S. District Judge Beryl Howell in Washington, D.C. rejected a challenge from the nation's largest business lobbying group that the fee on new H-1B visas for highly skilled foreign workers conflicted with federal immigration law and would lead many employers to cut jobs and the services they provide to the public.

Bloomberg

WORKFORCE

Economic divide widens between large corporations and small firms

A widening economic divide is emerging between large corporations and small businesses, mirroring growing disparities between high- and low-income households, according to a Wall Street Journal analysis. While profits at major companies have surged, buoyed by stock market gains and investment in artificial intelligence, many small firms are struggling with weak consumer demand, higher costs and tariff pressures. Data from payroll providers show small businesses cutting jobs, while larger firms continue to hire. The Federal Reserve has noted resilient spending among wealthier consumers, contrasting with declines elsewhere. Analysts warn that thinner margins, limited access to finance and cost pressures leave small businesses more exposed, raising concerns for employment and broader economic growth.

Wall Street Journal

U.S. jobless claims hit one-month low

Initial U.S. jobless claims fell to 199,000 for the week ending December 27, the lowest in a month, surprising economists who expected a rise. Despite this dip, hiring remains weak under President Trump’s second term, with monthly job creation averaging just 55,000 in 2025. Factors such as steep tariffs and immigration restrictions have disrupted labor supply. The unemployment rate stood at 4.6% in November, its highest in four years, though layoffs remain limited. The Fed is divided on further rate cuts, awaiting early 2026 labor and inflation data to guide decisions.

Reuters

WORKPLACE

What does the future workspace look like? It depends where you sit

Employers are redesigning offices to be neurodiversity-friendly. People with ADHD, for example, may find it harder to concentrate in open-plan spaces; those with autism may need greater control over conditions.

Financial Times

CORPORATE

Union Pacific and Norfolk Southern seek merger approval for $85bn deal

Union Pacific and Norfolk Southern have submitted a nearly 7,000-page application to the U.S. Surface Transportation Board to merge, intending to create the first coast-to-coast freight railroad in the nation. The filing initiates a 30-day regulatory review period, during which stakeholders, including shippers and labor unions, can express their support or opposition to the $85bn merger. While the proposal has received backing from President Donald Trump, it faces significant resistance from competitors concerned about reduced choice and potential impacts on pricing in an already concentrated market.

Reuters

LEADERSHIP

Buffett exits Berkshire CEO role

Greg Abel has officially succeeded Warren Buffett as Berkshire Hathaway's CEO, taking control of a company holding $358bn in cash. Shareholders await Abel's strategy, especially amid a pricey stock market and a pause on Berkshire share buybacks. Abel called the cash an “enormous asset” during the 2025 annual meeting, adding: “It gives Berkshire a cushion.” Though Abel avoids the spotlight, he’s respected for his leadership since 2018 of Berkshire's non-insurance businesses. Buffett affirmed: “Greg has exceeded my expectations in every respect.” Abel is expected to maintain Berkshire’s decentralized and conservative capital approach.

CNBC

CYBERSECURITY

Goldman warns about law firm data breach

Goldman Sachs has warned investors that their data may have been exposed in a breach at one of the bank's law firms. Fried Frank Harris Shriver & Jacobs informed Goldman of a "cybersecurity incident" and said its network was now secure and the vulnerability had been corrected. Goldman said its systems were not affected by the incident, and it is working with the law firm “to better understand whether our data or our clients’ data may have been exposed.”

Bloomberg

INTERNATIONAL

China releases draft rules to regulate AI

China's cyber regulator has released draft rules for public comment aimed at tightening oversight of AI services that simulate human personalities and engage users emotionally. The proposed regulations stress safety and ethical standards for consumer-facing AI products and mandate providers to warn against excessive use and intervene in cases of addiction. Providers must assume safety responsibilities throughout the product lifecycle, enforce algorithm reviews, and protect user data. Additionally, the draft seeks to address psychological risks by requiring providers to assess users' emotions and intervene if they display extreme emotions or addictive behaviors. The regulations also prohibit content that threatens national security or promotes harmful behaviors.

Reuters

Indians are among the highest AI adopters globally

According to the ‘EY 2025 Work Reimagined Survey', 86% of employees in India believe AI enhances productivity. The report reveals that 62% of Indians regularly use Generative AI (GenAI) at work. Additionally, 75% of employees and 72% of employers feel GenAI improves decision-making. India leads globally with an ‘AI Advantage' score of 53, significantly above the global average of 34. Anurag Malik, Partner and National Leader - People Consulting at EY India, noted: "India has made strong strides in AI adoption." However, learning hours for AI skills remain limited, with many employees spending fewer than 40 hours annually on training.

Gulfnews.com

OTHER

Cannabis use linked to poor grades

New research warns that even infrequent cannabis use can negatively impact teenagers' academic performance and emotional well-being. The study, published in the journal Pediatric, found that using cannabis just once or twice a month is linked to poorer school performance and increased emotional distress. Dr. Ryan Sultán, the study leader and Assistant Professor of clinical psychiatry at Columbia University, said: "A few ‘harmless' joints can snowball into real academic consequences." The findings highlight that today's cannabis products are more potent, containing two to three times more THC than in the past, which raises concerns about their effects on developing brains. The study analyzed data from over 160,000 American students, revealing that adolescents who used cannabis reported higher rates of depression-like symptoms and poor academic engagement.

Bradenton.com

Keys News

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