Soviet counterattack happened near Rostov, destroying number of axis minor troops and German corps. Viking SS mech reduced to 1 step and considered unlikely to escape.

In the center on the contrary Soviets fall back across Desna, leaving Gomel area almost empty.

In the MED Mareth fortress and empty Bengazhi seized by allies. US airborne division spotted, I should guard my rear cities in Italy.
Also notable event - full strength garrison transport was sunk in Palermo port.

Axis turn:
Remaining troops fall back from Rostov and Stalino towards Dnepropetrovsk. Additional air assets and reserve mech unit called to the area. More reserves availiable next turn.

In the center Gomel changes owner one more time. We plan to man Desna river defensive line for upcoming winter. Soviet heavy units are massed in the south, winter offensive supposed to be not very strong in other areas.

Another fighter attack against Soviet TAC base was launched and Moscow reduced to 0 production one more time.
This turn Soviet air casualties finally became higher than German ones (casualties screen incoming few turns later).
58 PP Soviet convou sunk north of Canada again.

NOTE: probably units gain experiece way to slow. In all my armies I have 1 STRAT with 3 stars. Vokt is believed to have no units with 3 stars at all.
Units with 2 stars are common, but 3 are ultra rare even that late at war. I have units like 1 SS Panzerkoprs (upgrade from one of starting armour units), which fight from the start of the game and have impressive kill count, and still only 2 stars.
Subs also did reasonable damage (especially northern wolfpack which sink every single soviet convoy with only 1 break for upgrade and sustain no casualties) also gain experince way to slow.
I don't know, probably it is supposed to work like this, as units with 1-2 stars are very common (1 star is awarded for staying on the front next to enemy and doing nothing for ~10 turns, to gain second one unit should participate in 1-2 attacks on top of that).
On the other hand I don't play with maxing experience in mind (like attacking depleted units with high exp award e.g. mech with already experienced unit).
2 more corps drafted for Germany. Because of strategic bombing German productions goes down to 120 PPs. Still better than in previous game, with Berlin and Hamburg bombed into red well before current date.