Good morning, I’m Tim Walker with today’s essential stories.

Top story: Sentencing delayed after stern rebuke from judge

At a charged sentencing hearing on Tuesday, a US district judge told Donald Trump’s former national security adviser, Michael Flynn, that he had “arguably … sold [his] country out” and asked whether prosecutors had considered a treason charge. Judge Emmet Sullivan, a Reagan appointee, later backtracked on both remarks, but said he was “disgusted” by Flynn’s offences. He delayed sentencing to March – at Flynn’s request – noting that it would be “rare” for an offender to be sentenced before his cooperation with prosecutors is complete. The request to delay followed a warning from the judge that Flynn could go to prison and his insistence that Flynn clear up any inference that he had been entrapped by the FBI – a line of argument advanced openly by Trump. Asked whether he was entrapped, Flynn’s lawyer said: “No, your honour.”

Wobbly foundation. Trump, who wished Flynn good luck on Twitter before the hearing, has agreed to shut down his personal charity, the Trump Foundation, ahead of a lawsuit containing what New York’s attorney general has described as a “shocking pattern of illegality”.

Mueller mystery. A mysterious Washington court case thought to involve Robert Mueller, but known in public documents only as “Sealed vs Sealed”, has been revealed as concerning an unnamed corporation owned by a foreign country.

Trump retreats from shutdown threat over $5bn demand

Facebook Twitter Pinterest Sarah Sanders said Donald Trump was backing down from his demand for $5bn to fund a border wall. Photograph: REX/Shutterstock

The White House has signalled it will not, after all, force a government shutdown over the president’s demand for $5bn to fund construction of his long-promised wall at the Mexican border. The White House press secretary, Sarah Sanders, said on Tuesday that Trump believes he can find other ways to fund the wall, which he originally promised would be paid for by Mexico.

Funding deadline. Congress must still agree on federal funding bills before midnight on Friday to avoid a partial shutdown. Erin Durkin explains what that would entail.

Migrants struggle to claim asylum at remote border crossings

Facebook Twitter Pinterest A migrant child sleeps as he is carried towards the US border in Tijuana, Mexico. Photograph: Leah Millis/Reuters

Immigration advocates say migrants attempting to enter the US from Mexico face difficulties in claiming asylum, especially at the more than 40 smaller border crossings. After the death of seven-year-old Jakelin Caal Maquín in US custody earlier this month, US authorities urged migrant parents in search of asylum to present themselves at a port of entry “and seek to enter [the US] legally and safely.” But campaigners say when they do so, they are routinely – and illegally – turned away.

America’s role. The dangers that have forced so many families to flee their homes in Central America were created, in part, by US policy in the region, as Julian Borger reports.

Bipartisan criminal justice reform bill passed by Senate

Facebook Twitter Pinterest Trump speaks about the ‘First Step Act’ with criminal justice reform advocates at the White House in November. Photograph: Jim Watson/AFP/Getty Images

In a rare bipartisan victory for both progressives and law-and-order conservatives, a criminal justice bill aimed at reducing drug crime sentences was passed by the Senate on Tuesday. The First Step Act, which was supported by Trump and by celebrities such as Mark Cuban and Kim Kardashian, was passed by 87 votes to 12 and will now go back to the House before hitting the president’s desk.

Mandatory minimums. Among other provisions, the act would reduce mandatory minimum sentences, invest heavily in re-entry programmes, and end so-called “three strikes” mandatory life sentences for defendants facing a third drug conviction.

Crib sheet

British businesses have warned of economic disaster should the UK crash out of the EU in March without a Brexit deal in place, as Theresa May’s government ordered 3,500 troops be put on standby to prepare for a no-deal scenario.

Nevada has become the first US state with a majority female legislature, after two women Democrats were appointed to vacant Las Vegas-area seats in the state assembly.

Penny Marshall , the film director and former star of the 1970s sitcom Laverne and Shirley, has died aged 75; her 1988 hit Big was the first female-directed film to gross $100m.

Russell Horning, aka “the backpack kid”, has sued the makers of Fortnite for alleged breach of copyright after they featured his signature “flossing” dance move in the popular game.

Must-reads

Facebook Twitter Pinterest The run-up to Christmas is peak season at Amazon. Illustration: Joan Wong

Amazon Diaries: the horror of the holiday season

If you’re finding your Christmas shopping stressful, spare a thought for the people working 60-hour weeks to make sure your gifts arrive on time. The weeks between Black Friday and Christmas are the busiest and most brutal of the year at the Amazon fulfilment centre, says our anonymous columnist.

Talking with evangelicals about climate change

In her new column about the American south and climate change, Megan Mayhew Bergman finds that the region’s evangelicals have always thought of environmentalism as a liberal concern, and learns how to discuss the climate crisis in conservative terms.

How Santa’s city rose from the ashes

Rovaniemi, the capital of Lapland, was razed by the retreating German army in the second world war, and rebuilt by Finland’s greatest architect, Alvar Aalto. Peter Watts explains how the Santa myth helped to save the city from its dark history.

Elon Musk’s much-hyped “loop” track tunnel unveiled in LA

Elon Musk, the founder of Tesla and SpaceX, claims his underground “loop” tunnels can alleviate congestion in our overcrowded cities. As the first prototype is unveiled in LA, Andrew Gumbel asks whether it’s a visionary innovation, or just an over-hyped hole in the ground.

Opinion

Activists across the English-speaking world have fought back against the far right in 2018. And with methods ranging from doxxing to no-platforming to physical counter-protest, the anti-fascists have started winning, writes Jason Wilson.

Antifascists have used photographs of street events like Unite the Right in Charlottesville, revelations from compromised chat servers, and the kinds of extensive trails that all of us leave online in order to connect far right violence with the real names of the people who perpetrate it.

Sport

Jose Mourinho is looking for work after being sacked by Manchester United, which has appointed club legend Ole Gunnar Solskjaer as caretaker manager. Mourinho didn’t help his own cause, but Daniel Taylor says he is really just another casualty of United’s failing regime.

Derek Fisher, the five-time NBA champion and recently appointed WNBA coach, has a new job with a firm offering short-term loans to sportspeople with cashflow problems. Tom Dart asks whether he’s helping athletes, or exploiting them.

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