As most of you spent your last working day of the year debating whether or not to polish off the three remaining semi-stale sugar cookies airing out on top of the file cabinets, the delayed Q3 economy data finally arrived and things looked...good?

According to the Commerce Department, the US GDP smashed economists’ expectations, growing at a 4.3% annual rate last quarter—the fastest pace in two years. The numbers further complicate the current picture of the economy, which also shows cratering consumer sentiment and a higher unemployment rate.

Hey, big spender

Economists expected GDP growth from July to September to come in around 3.2%. The economy seems to be growing at a more modest 2.5% annually since Trump took office in January, just slightly higher than the 2.4% in 2024 under the Biden administration.

Experts said that last quarter’s GDP benefited from President Trump’s most intense tariffs disappearing. The biggest gains, meanwhile, were led by increased military spending; weaker, but still solid business investment; and high consumer spending:

• Consumer spending, which accounts for 70% of the GDP, jumped 3.5% in Q3, thanks largely to healthcare and international travel. Motor vehicle spending dropped.
• This spending spike is in sharp contrast to consumer sentiment, which fell for the fifth straight month and tied the longest consecutive drop in sentiment since 2008.

How is that possible? Stop us if you’ve heard this before, but it’s the K-shaped economy, aka when wealthier consumers are unfazed by rising prices because of their flush stock portfolios while middle- and lower-income consumers have to tighten their budgets.

Also closing out 2025 on a high note: Gas prices are at their lowest level since March 2021, while gold and silver have both surged to new record highs due to ongoing geopolitical tension.—MM

DOJ releases new batch of Epstein files with references to Trump. The Justice Department released a tranche of more than 30,000 heavily redacted documents related to the investigation of convicted sex offender Jeffrey Epstein, and some of them mention or refer to President Trump. A 2019 handwritten letter seemingly signed by Epstein and addressed to convicted sex abuser Larry Nassar reads, “Our president also shares our love of young, nubile girls,” though the DOJ later said it was “FAKE.” A 2020 email from an assistant US attorney alleges that Trump “traveled on Epstein’s private jet many more times than previously has been reported.” According to the email, Trump is listed as a passenger on at least eight flights between 1993 and 1996. The Justice Department said that the files “contain untrue and sensationalist claims made against President Trump.” Authorities have not accused Trump of any wrongdoing related to Epstein.—AE

Payroll deductions to resume for student loan defaulters. US residents who are behind on their student loan payments may soon face wage garnishments, meaning a portion of their paychecks could be seized by the federal government in order to pay down their past-due debts, the Department of Education confirmed this week. It marks the first batch of new mandatory collections after they were paused at the beginning of the pandemic. More than 5 million people in the US are currently in default on student loans, which means about nine months have passed without payments. Relevant borrowers will start receiving garnishment notices in early January. The federal government can seize up to 15% of a student loan borrower’s post-tax income, but must leave them with at least 30x the federal minimum hourly wage per week (equaling $217.50).—ML

Saks Global might declare bankruptcy. Carrie Bradshaw just fell to her knees. In financial straits, the luxury conglomerate that merged Saks Fifth Avenue with Neiman Marcus and Bergdorf Goodman one year ago is now considering Chapter 11 bankruptcy “as a last resort,” Bloomberg reported. Saks Global has a $100 million debt payment due Dec. 30 that it may not be able to afford. Sales have plunged and losses have mounted, in part because the company struggled to pay vendors in recent years, which shrank its inventory. Saks banked on its $2.7 billion acquisition of the Neiman Marcus Group to turn business around, but the deal sped up its downfall, per Bloomberg. Some analysts think bankruptcy could be beneficial, especially for brick-and-mortar restructuring, since about 40% of Saks Fifth Avenue and Neiman Marcus stores share territory.—ML

The ratio of bald eagles to Chinese drones in American airspace might soon skyrocket. The US government placed all new foreign drones and drone parts on a list of banned imports this week, saying that they threaten national security.

The ban doesn’t apply to drones already approved for sale and used stateside. But since Chinese drones dominate US skies, the change will upend the supply of tech vital to aerially monitoring crops, energy infrastructure, and construction sites, as well as seeing one’s neighborhood from Santa’s perspective.

• Just one Chinese company, Shenzhen DJI Technology, made 77% of America’s hobbyist drones as of 2020 and 80% of the commercial drones used in the US, per Drone Industry Insights.
• Its rising China-based rival Autel Robotics commanded 15% of the US drone market in 2021.

Drone dread

The ban prompted backlash from businesses reliant on surveying from above. They claim that there are no cheap and reliable alternatives to Chinese drones. Some companies told the Wall Street Journal that they are now scrambling to stock up on imported drones and parts for their fleets.

But nixing foreign competition gives a lift to US dronemakers like Hylio and drone parts producers like Unusual Machines, which counts President Trump’s son Donald Trump Jr. among its shareholders.

Domestic drones…are a priority for Trump, who recently ordered federal agencies to speed up stateside drone procurement and directed them to simplify drone regulations.—SK

Timothée Chalamet’s unconventional approach to marketing Marty Supreme appears to be working. The A24 ping pong movie is an early smash, earning $875,000 from six screens during its debut weekend—the best per-theater average since 2016. It opens wide in theaters tomorrow.

To put that in perspective, Ella McKay picked up ~$480,000 from...2,500 screens in its second weekend. Meanwhile, experts say the period dramedy about a sport you can play in your garage has $100 million potential, and Chalamet’s promotional dedication is a big reason why. His wild marketing campaign has included:

• An 18-minute “leaked” Zoom about Chalamet’s advertising ideas.
• Standing atop the Las Vegas Sphere.
• A Marty Supreme blimp.
• Joining comedian Druski for his mock talent show.

The new normal? These tactics are geared toward Gen Z, which prefers social-first authenticity over carefully orchestrated late-night show tours, according to a study by Morning Consult. Last year, Chalamet’s publicity tour for A Complete Unknown featured an appearance on ESPN’s College GameDay and at his own look-alike contest in New York City.

Also in theaters this holiday weekend: Avatar: Fire and Ash continues its run, as does The Housemaid with Sydney Sweeney. The meta take on Anaconda with Jack Black and Paul Rudd, and Song Sung Blue starring Hugh Jackman and Kate Hudson as a Neil Diamond tribute duo, both debut tomorrow.—DL

Out: Watching soap operas and daytime talk shows. In: Half-watching a YouTube reaction video to a Dire Straits performance of “Sultans of Swing” while you do laundry.

Netflix may have been in the headlines a lot recently, but YouTube still has more of your attention: The Google-owned app accounted for ~13% of total viewing time in November vs. Netflix’s 8%, per Nielsen. That’s mostly thanks to dominance during the daytime:

• At 11am, YouTube had an average of 6.3 million viewers in October. Netflix had only 2.8 million.
• The gap is much tighter at night. At 9pm, Netflix had 11 million viewers, just 1 million behind YouTube.

Viewers often throw on YouTube’s more casual content (like music playlists) while they do chores around the house, whereas the content on other platforms typically requires you to sit and focus, which is easier done in the evening. But YouTube is coming for your nights, too: The app just won the rights to exclusively stream the Oscars starting in 2029.—AE