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President Trump’s trade war with Canada assumed economic size would translate into bargaining power. Ottawa’s refusal to back down, and the strain the tariffs are putting on U.S. border states ahead of the midterms, are opening cracks in the administration’s approach, argues expert @edwardalden. "With Republicans facing tough midterm election races in northern border states that are heavily dependent on trade with Canada, it is the United States that now appears to be backing down by lifting tariffs that are causing too much economic harm. Other countries that will face at least another two years of Trump’s trade bullying, regardless of the midterm outcomes, have much to learn from Canada’s response," he writes. "Most of the major economies, from Europe to Japan and South Korea, have cut deals with the United States to accept higher tariffs in exchange for some trade peace. Canada stands alone in resisting U.S. demands. But so far, it seems to be standing tall."

Another solid U.S. GDP report, increasing 3.4% Q/Q annualized for 2026Q3. The song remains the same: AI CAPEX and consumption continue to drive growth, while housing (residential investment) remains very depressed. Inventories were rebuilt this quarter, adding 1.6% to growth. This should fade next quarter, as inventories usually average out to zero over time.Net exports are a big drag to growth (-3.3%), since many of those inputs to the AI capex buildout are imported. We expect this trend to continue. The FOMC yesterday characterized growth as "solid", and looking at this report, hard to disagree. As long as the AI CAPEX cycle keeps boosting investment & elevated stock prices provide support to consumption, the U.S. economic machine will keep on humming. This justifies higher rates to cool inflation.

Al Jazeera has learned that Qatari mediators returned to Tehran on Friday to negotiate a deal on the US-Iran conflict.

The talks are reported to have been in coordination with US officials.

The latest diplomatic push follows the delivery of a letter from US Vice President JD Vance to Iranian authorities by Qatar on Sunday. Tehran has acknowledged receiving the message but has not formally responded to it.

Germany's major car giants (Volkswagen, BMW, and Mercedes-Benz) are the country's largest industrial companies. Traditionally, more than 30% of their revenue and up to 50% of their profits have come from China. With the rise of electric vehicles, this is now history, and brutal cuts lie ahead.

VW plans to lay off 100,000 employees and close 4 car factories in Germany. Meanwhile, Audi, which belongs to the same group, is building a $4 billion car factory in the United States because the tariffs the United States has imposed on Europe have also eaten into Europe's car exports in that direction. In other words, the new jobs are being created in the United States, not in Europe. Exactly as the Trump administration wanted.

The EU has protected its own automotive industry by imposing punitive tariffs on Chinese electric vehicles and has now managed to restrict that China cannot sell more than 350,000 hybrids per year to Europe.

The automotive industry is Europe's largest industrial sector and directly or indirectly employs up to 17 million people.

I don't believe anything can save it anymore. Once efficiency is lost, global markets are inevitably lost as well. Domestic markets can of course be protected with tariffs, but as a result, the EU is left with high price levels and an industry that is completely uncompetitive globally.

It's telling that Audi wants to stop importing its own cars from China. The Chinese version of the Audi is otherwise the same car (and thus locally manufactured by Audi), but it says AUDI in big letters and is missing the 4 rings. The AUDI E5 Sportback Flagship quattro model's price when imported to Europe is about 60,000 euros, which is significantly cheaper than the car's price in Germany at about 90,000 euros.

And to make the whole picture absurd: Volkswagen has 38 car factories in China. But if any German giant manufactures a fully electric car in China and imports it to the EU, it faces even higher punitive tariffs than BYD, which is an entirely Chinese brand. In other words, the European Union punishes its own car factories for manufacturing in China.

From the Official Release Notes:

Before, we prioritized mostly based on price. The new router now rewards the best quality inference for the actual cost of a request, so requests stay cheap but are also fast and reliable.

Providers that deliver more value automatically win more traffic, so every provider has a reason to keep improving. And every time a provider gets better, so does your inference on OpenRouter.

Source: Rand Paul (X), US Senator for Kentucky

Oil prices are continuing their upward trajectory on Friday and are on track for a fourth consecutive monthly gain. The increase came after a number of tankers were reported to have hit mines in the Strait of Hormuz, highlighting ongoing supply risks as the US-Israel conflict with Iran entered its eighth month. Brent crude futures for December gained $1.20, or 1.04 percent, to reach $116.08 a barrel as of 03:23 GMT, while US West Texas Intermediate (WTI) crude futures went up $1.37, or 1.34 percent, to $103.37 a barrel. For the month, Brent was on course to finish nearly 11 percent higher, while WTI was heading for a 14 percent jump.

Excerpts from the original article: US economy beats forecasts to grow at 3.4% rate in third quarter, published by FT

The US economy expanded at an annualised rate of 3.4% in the third quarter, topping Wall Street expectations, as companies invested heavily in AI and American consumers continued to splash out despite high prices.

The increase was fueled by corporate America’s huge spending on infrastructure associated with the AI boom and a continued splurge by consumers, even as the Iran war causes inflation to surge.

Consumer spending rose 3.8%, the same pace as the previous period, even as a torrent of inflation washed across the economy and a boost from tax refunds faded.

Thursday’s report suggests the world’s biggest economy remains robust, with spending continuing to accelerate even as inflation bites. The Iran war has pushed up fuel costs that have fed through to other areas of the economy, while the AI construction boom has also pushed up costs.

Higher prices have squeezed less affluent Americans in particular. But Wednesday’s data showed that on the whole, American consumers continued to splash out in the third quarter, with spending on healthcare, food and accommodation rising.

Source: Navin Kabra (X)