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A Saudi Arabia flag is seen flying on Parliament Hill Nov. 2 in Ottawa.Dave Chan

TOP STORIES

Saudi Arabia defends use of Canadian-made armoured vehicles against civilians

The Saudi Arabian government says its use of Canadian-made armoured vehicles against residents of the kingdom's Eastern Province was a necessary measure to fight terrorists threatening the province's population. The Saudi embassy in Canada likened the government's use of force to the October, 2014, incident in which Canadian authorities killed a gunman who stormed Parliament Hill after fatally shooting a sentry at the National War Memorial. "It is the right of the Government of the Kingdom of Saudi Arabia to use its military equipment to fight the terrorist groups of Awamiyah to protect the civilians," the Saudi embassy said. Canadian Foreign Affairs Minister Chrystia Freeland launched an investigation into the Saudi conflict, saying she was "deeply concerned" over videos and photos showing Canadian-made Terradyne Gurkha armoured vehicles taking part in a clash in al-Qatif, a predominantly Shia region of Sunni-ruled Saudi Arabia.

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U.S. to seek tough NAFTA rules of origin in auto sector: trade czar

The first day of NAFTA talks brought significant demands from the Trump administration for concessions from Mexico and Canada, including a requirement for cars and trucks made in the free-trade zone to have U.S. content. Robert Lighthizer, the U.S. Trade Representative, said the U.S. is "not interested in a mere tweaking of a few provisions and a couple of updated chapters." Instead, the tougher rules of origin are part of Mr. Trump's pledge to bring back factory jobs to the U.S. rust belt.

Teen who drowned on school trip did not pass required swim test

A Toronto student who drowned on a class trip to Algonquin Park last month did not pass a required swimming test. John Malloy, the Toronto District School Board's director of education, said 15 of the 32 students on the multiday canoe trip had failed the swim test. "I'm deeply troubled by these findings, that such a critical safety requirement in our procedures appears not to have been followed," Mr. Malloy said. The teen, Jeremiah Perry, disappeared under the water after going for a swim with other students. His body was found a day later.

Trump axes business panels as key CEOs decry response to Virginia

U.S. President Donald Trump dismantled two business councils on Wednesday, as key CEOs cut ties with the White House over the President's comments on the violence in Charlottesville last weekend. Mr. Trump blamed white supremacists and anti-racism protesters equally for the deadly clash. The termination of the two advisory councils is a blow for Mr. Trump, who has courted business executives as part of his agenda to boost economic growth in the United States.

MORNING MARKETS

European stocks and bond yields fell in early trade on Thursday after the Federal Reserve expressed concern over weak U.S. inflation, a trend which has clouded the outlook for the world's largest economy. Tokyo's Nikkei was down 0.1 per cent while Hong Kong's Hang Seng was down 0.2 per cent at 5:15 a.m ET. The Shanghai composite was 0.6 per cent higher. In Europe, the FTSE 100, Germany's Dax and the Paris CAC were all down between 0.2 and 0.3 per cent. New York futures were down. The Canadian dollar was trading at 79.18 (U.S.). Oil prices steadied after U.S. data showed a big fall in crude stockpiles but also an increase in production.

WHAT EVERYONE'S TALKING ABOUT

For Donald Trump, there is no coming back from this

"This is a man who has made a political career out of being disreputable and disruptive, yet has always had the ability to recover from embarrassing gaffes and disturbing revelations. But not this time. It is henceforth impossible for the President to credibly condemn the racist and violent right-wing groups that were the only people responsible for provoking the violence in Charlottesville and for the death of a woman hit by a car driven into a crowd of peaceful counterprotesters." – The Globe and Mail editorial board

As Trump alienates his corporate allies, don't bet on any big changes to NAFTA

"
On one level, this is another instance of Mr. Trump shooting his own agenda in the foot; having his key business advisers jump ship at the precise moment his team begins talks on one of his biggest economic priorities is, to say the least, remarkably bad timing. But with this deep rift between the President and his business leadership exposed, it also raises serious questions about how the President will win over this critical constituency for his more ambitious NAFTA goals. They simply won't fly without the blessing of an increasingly alienated corporate leadership." – David Parkinson

This is exactly the America Steve Bannon wanted

"Steve Bannon's White House days may or may not be coming to an end, but the end-of-days agitator can only look back on his first (or last) seven months in the West Wing with deep-state satisfaction. The country is descending into violent civil conflict, the white nationalist forces are in the ascendant and the President of the so-called United States seems to revel in dividing them." – Konrad Yakabuski

HEALTH PRIMER

For some students, the transition to university can be hard on mental health

The transition to a new life after high school and out of the family home is "one of the most exhilarating and also the most traumatic and dangerous experiences of your life. It's also the time that the onset of mental-health problems typically happens," says mental health advocate Eric Windeler. The inevitable rite of passage in a young person's life is often fraught with stressors that both parents and their children don't identify and can lead to a wide array of mental-health issues, including anxiety, depression, bipolar disorder and, sadly, suicide.

MOMENT IN TIME

FDR, King meeting leads to creation of defence pact
Aug. 17, 1940 – An hour from Ottawa on the U.S. side of the border near Ogdensburg, N.Y., prime minister William Lyon Mackenzie King met with president Franklin D. Roosevelt on a train to create the Ogdensburg Agreement. It led to the formation of the Permanent Joint Board on Defence by the end of the next day. The primary goal of the pact was to work together to defend the two countries against the growing threat of Hitler's expanding domain. The deal – signed by King without consulting other parliamentarians – was scorned by political foes, and even Winston Churchill was said to have been miffed to be left out of the pact. However, King and Roosevelt agreed that fast action and collaboration between their countries was needed. The PJBD is still in operation today, meeting twice a year to discuss ways to keep the shared land, shores and space secure, and helped lay the foundation for NATO and NORAD. – Kenny Sharpe

Morning Update is written by Eleanor Davidson.

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