1. No Repeal of HB2

2. North Carolina legislators failed to repeal the state's "bathroom bill" on Wednesday during a special session called for that purpose. Lawmakers headed home for the holiday break, but they'll adjourn again January 11 for a regular session of the General Assembly, at which time they might discuss repeal again. For now, House Bill 2 stands as the law in North Carolina. Signed by the governor in March, HB2 bans people from using public bathrooms that don't correspond to their biological sex as listed on their birth certificates. The state law was passed in response to a Charlotte city "nondiscrimination ordinance" that allowed transgender people to use bathrooms that correspond with their gender identity. There were not enough votes to repeal the bill and after meeting for nine hours the legislators called it quits. The passing of the bill has resulted in many repercussions. The federal government filed a suit challenging HB2, and the state's public university system pledged to defy the statewide law. Backlash against HB2 caused huge economic losses for the state, such as businesses canceling plans to expand and the NBA moving its all-star game from Charlotte to another city. Additionally, singers like Bruce Springsteen, as well as bands such as Pearl Jam, canceled concerts in the state.

3. In Other News
The Trump transition team is floating the possibility of an early executive action to impose tariffs (taxes) on foreign imports (perhaps a 5% tariff on imports). Such a move would deliver on President-elect Donald Trump's "America First" campaign theme. But it's causing alarm among business interests and the pro-trade Republican establishment. The team has discussed implementing a border adjustment tax measure which would tax imports to spur US manufacturing. Curbing free trade was a central element of Trump's campaign. He promised to rip up the North American Free Trade Agreement with Mexico and Canada. He also vowed to take a tougher line against other international trading partners, almost always speaking harshly of China but often including traditional US allies such as Japan in his complaint that American workers get the short end of the stick under current trade practices. It is an area where there is a huge gulf between Trump's stated positions and traditional GOP orthodoxy. The concern is that it might start trade wars, anger allies, and also hurt the new administration's effort to boost the rate of economic growth right out of the gate.