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Air travel limits began biting as airlines canceled more than 1,000 U.S. flights after regulators ordered capacity reductions tied to the government shutdown, with officials warning cuts could rise to 20% if staffing worsens.

Markets churned on the disruptions and softening sentiment even as late-day hopes for a budget deal steadied losses.

The Pentagon, meanwhile, is preparing a rapid ramp-up in small unmanned systems.

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Airlines canceled hundreds of flights as a 4% cap at 40 major airports took effect, a step that could rise to 10% by Nov. 14 under the shutdown plan and potentially 20% if controller shortages deepen.

The new limits jolted travel ahead of the holiday season as carriers triaged schedules and crews.

Transportation leaders signaled steeper reductions are on the table, while carriers warned of cascading delays.

The curbs highlight how the record-length funding lapse is bleeding into core infrastructure.

By Friday, cancellations topped 1,000 as the policy rolled out nationwide, amplifying passenger headaches and operational costs.

A wider cut would raise the risk of broader economic drag just as consumer mood sours.

Fresh reporting underscored pressure on regional routes and tight turnarounds.

Why it matters now: A protracted clampdown would snarl holiday traffic, stress airline finances, and dampen leisure and business travel—factors that can feed into growth, inflation readings, and the policy outlook.

The U.S. Army is preparing to buy up to 1 million drones in a major procurement surge focused on low-cost, attritable systems and countermeasures.

The plan aims to accelerate fielding across units and shore up stockpiles shaped by lessons from modern conflict. Program details point to industrial base expansion and faster contracting.

Context: The shift reflects the centrality of unmanned platforms for reconnaissance, strike, and electronic warfare.

Scaling production could reshape vendor landscapes and spur allied co-production.

Why it matters now: A volume pivot toward cheap, smart drones may redefine deterrence and logistics—and intensify export controls and battlefield counter-drone races.

Policy and geopolitical uncertainty topped financial stability concerns in a new Fed survey, alongside cyber and liquidity risks.

The soundness snapshot arrives as funding markets adjust to shutdown fallout and shifting policy expectations. The survey highlights tail risks that could amplify if growth cools and volatility climbs.

Backdrop: After a long tightening cycle, leverage pockets and market plumbing are under scrutiny, with regulators eyeing nonbanks and short-term funding.

Why it matters now: Stability worries can influence supervisory tone, bank capital decisions, and the cadence of balance-sheet policy into year-end.

Ukrainian and Russian forces battled street by street in Pokrovsk as both sides claimed gains in the ruined logistics hub.

Kyiv moved elite units to hold supply routes while Moscow sought encirclement. On-the-ground updates described close-quarters combat and heavy destruction.

A senior German general said a limited Russian attack on NATO territory is “in the realm of the possible,” urging faster deterrence steps as hybrid tactics persist.

The assessment framed drone incursions and cyber pressure as part of a broader strategy tied to the Ukraine war.

Israel received another set of human remains from Gaza via the Red Cross under a fragile cease-fire framework, part of ongoing exchanges of bodies on both sides. Military statements noted identification challenges inside Gaza.

Apple’s streaming service recovered after a brief early-morning outage that impacted tens of thousands of users globally, with normal service resuming within hours. Company status showed availability stabilized.

Draft discussions signaled potential easing of some high-risk AI obligations amid industry pushback, with enforcement debates still live among member states. A new document suggested adjustments to compliance timelines and scope.

Equities seesawed as airlines braced for capacity cuts and consumers turned cautious, before late headlines hinted at budget progress. A markets wrap captured the intraday reversal into the close.

Nvidia’s chief said the firm has no plans to ship its next-gen Blackwell AI chips to China amid export curbs and geopolitics, a stance that could shift data center buildouts. Executive comments added pressure across semiconductor supply chains.

ESPN ended its sportsbook tie-up with Penn and struck an exclusive odds and data pact with DraftKings, recasting its betting strategy ahead of next year’s rollout. The agreement reshapes a crowded U.S. wagering market.

A first-of-its-kind atlas tracks how mammalian stem cells become neurons, offering a granular view of brain development for disease research. New studies outline cellular trajectories that could inform therapies.

Researchers compiled a high-resolution “Google Maps” for Roman roads that nearly doubles the known network length, revealing trade routes and settlement patterns. The project opens doors for archaeology and climate-era migration studies.

A leading AI lab urged Washington to extend chips tax incentives to energy-hungry data centers, arguing infrastructure credits would speed U.S. buildouts. A policy push puts grid capacity and siting in the spotlight.

Denver’s defense carried a 10–7 win over Las Vegas on Thursday night, preserving an eight-win start despite offensive miscues. Game recap detailed key stops late.

Jalen Green scored 29 in his Phoenix debut as the Suns beat the shorthanded Clippers 115–102, pairing with Devin Booker’s 24. Postgame notes highlighted pace and spacing gains.

World No. 1 Aryna Sabalenka outlasted Amanda Anisimova to reach the WTA Finals title match against Elena Rybakina in Riyadh. Match report set up a power-hitting finale.

Netflix premiered the fifth and final season with a star-packed Los Angeles event, unveiling release plans and awards strategy for the ensemble. Event coverage captured fan buzz.

After soft October ticket sales, “Predator: Badlands” led previews at $4.8 million and is tracking to top the weekend. Preview numbers point to a shake-up at No. 1.

Studio leaders floated releasing the upcoming Michael Jackson biopic in two parts to maximize audience and scope. A release plan is under consideration.

The FAA’s staged capacity limits—4% now, rising to 10% next week and possibly 20% if controller gaps widen—are the clearest sign yet that the prolonged shutdown is stressing critical infrastructure.

Airlines responded with targeted cancellations and schedule thinning as the first wave of cuts hit 40 major airports.

This is a blunt tool with few near-term substitutes: a controller pipeline takes years to build, and reserve staffing is already thin. Policy signals suggest the ceiling could fall further without a funding resolution, while early cancellation tallies show a fast ramp.

The macro channels are straightforward.

Fewer flights mean lower capacity for business travel and freight belly space, thinning margins for carriers and airports, and spillovers into hospitality.

If cuts escalate into the Thanksgiving window, average fares can firm as seats tighten, adding a pocket of sticky services inflation just as demand cools.

Consumer mood has already softened, and travel friction typically amplifies that trend.

Financial stability watchers are alert to second-order effects. The Fed’s latest survey puts policy uncertainty and geopolitical risk at the top of the worry list.

Airlines’ funding costs, airport muni debt, and travel-adjacent credit could see volatility if schedules reset for longer. The survey lands as markets juggle shutdown headlines, slowing momentum, and shifting rate bets.

What to watch: Whether the cap stays at 10% or climbs toward 20%; airline capacity guidance for the holidays; TSA throughput and delay metrics; and any stopgap that restores training and overtime funding for controllers.

A resolution soon would ease the crunch; without one, the shock risks compounding into December travel and year-end data.

• A brief Apple TV outage resolved overnight, but it doubled as a reminder of how streaming hiccups ripple through prime sports and film releases. Status update

• Archaeologists’ new map of Roman roads hints at forgotten river crossings that could be new field sites next summer. Project overview

• A Wyoming town faces a constitutional lawsuit—over a backyard miniature goat—testing local rules and due process claims. Case filing

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—The Five Minute Daily Team