Good morning. One big headline worth considering today.

US Republicans in the House pulled a bipartisan spending bill that would have funded the government until Spring following Tweets condemning the bill from Elon Musk and opposition from President-elect Donald Trump. Current funding runs out at midnight on Friday, and the house is due to recess this weekend. [SOURCE - BBC]

Upcoming SITREP Changes

Two big changes are coming to the SITREPS.

Metrics.

• First, the metrics will be calculated at the end of the previous business day instead of the morning of the report. For example, the metrics for today are the market data from 17:30ET yesterday, December 18. This is to assist with the automation push (see below).

• Second, you’ll soon start to see the metrics on a comparative scale to show 1) how the latest daily value relates to prices over the last 45-days and 2) whether the latest value is higher, lower or unchanged from the previous value. This is still in development but here’s a rough concept.

I’ll also be changing the metrics being tracked to make these more widely applicable. If you have any suggestions, please let me know.

Full Automation.

The SITREP content is already highly automated — I do the headlines, some editing and quality control but the main report is all generated by the Decis engine. However, I aim to have these published 100% automatically unless I see something that needs correcting. This reduces publishing delays and allows me to focus on quality improvements in the background instead of tinkering with the editing at 05:30.

I plan to get these rolled out over the next few days but there will be several steps to complete the whole process. The biggest change will be to the publishing platform which means the reports will look different and the from and delivery information might change.

Thanks in advance for your patience and apologies for any hiccups or errors as I make these updates. Nevertheless, these will be significant improvements to the service and I hope the SITREPs are even more valuable to you as we go into 2025.

Commodity and Rate Snapshot

_{As at Dec 18, 17:30ET -Data is illustrative, not for decision-making.}

Financial data via Bloomberg, Freightos and AlphaVantage

Asia Stability Ratings and News Summary

More Unstable

🇦🇫 Afghanistan, 🇦🇲 Armenia, 🇦🇿 Azerbaijan, 🇧🇭 Bahrain, 🇧🇩 Bangladesh, 🇧🇹 Bhutan, 🇰🇭 Cambodia, 🇨🇳 China, 🇹🇱 East Timor, 🇬🇪 Georgia, 🇮🇳 India, 🇮🇩 Indonesia, 🇮🇷 Iran, 🇯🇵 Japan, 🇰🇿 Kazakhstan, 🇰🇼 Kuwait, 🇰🇬 Kyrgyzstan, 🇱🇦 Laos, 🇲🇻 Maldives, 🇲🇳 Mongolia, 🇲🇲 Myanmar, 🇳🇵 Nepal, 🇰🇵 North Korea, 🇵🇰 Pakistan, 🇵🇭 Philippines, 🇶🇦 Qatar, 🇰🇷 South Korea, 🇱🇰 Sri Lanka, 🇹🇼 Taiwan, 🇹🇯 Tajikistan, 🇹🇭 Thailand, 🇹🇲 Turkmenistan, 🇺🇿 Uzbekistan

More Stable

No countries were more stable over this period

Unchanged

🇧🇳 Brunei, 🇲🇾 Malaysia, 🇴🇲 Oman, 🇸🇬 Singapore, 🇦🇪 United Arab Emirates, 🇻🇳 Vietnam

Regional News Summary

In Singapore, crime statistics have revealed a troubling incident involving a Chinese man charged with the murder of a Vietnamese woman, raising concerns about safety and crime in the city-state [SOURCE - e.vnexpress.net]. Concurrently, authorities are intensifying their crackdown on the sale of 'Kpods,' drug-laced vapes targeting youths, as part of broader efforts to combat narcotics in the country [SOURCE - malaymail.com]. Additionally, Singapore has reported a sharp rise in arrests related to harboring and hiring illegal immigrants, prompting increased scrutiny from law enforcement [SOURCE - e.vnexpress.net].

On a more positive note, Singapore is positioning itself as a premier destination for concert tourism, with plans to host mega events in 2025, including performances by global stars like Taylor Swift and Jay Chou [SOURCE - channelnewsasia.com]. This trend is complemented by the introduction of direct flights between Mangalore and Singapore by Air India Express, catering to the growing demand for travel to the region [SOURCE - thehindubusinessline.com].

In the broader economic context, Singapore's financial system is showing resilience, with a notable 3.4% rise in exports recorded last November compared to the previous year [SOURCE - Manila Times]. However, the stock market is experiencing mixed signals, with analysts predicting a period of cautious investor sentiment following recent price drops [SOURCE - RTT News].

Meanwhile, in the geopolitical arena, China is actively pursuing stronger economic ties with its neighbors, particularly in Central Asia. The country has been enhancing its trade relationships with nations like Uzbekistan and Tajikistan, reflecting a strategic focus on regional cooperation [SOURCE - Economic Times]. This comes amidst rising tensions in the South China Sea, where China has expressed discontent with the Philippines for participating in joint naval exercises with the US, further complicating regional dynamics [SOURCE - Investing.com].

In South Korea, the political landscape is tumultuous following the impeachment of President Yoon Suk-yeol amid widespread protests. This political crisis has raised concerns about the stability of democratic institutions in the country [SOURCE - Kyodo News]. The situation has drawn international attention, with the US reaffirming its commitment to South Korea amidst the upheaval [SOURCE - Japan Today].

In the Philippines, the government is grappling with a widening agri-trade deficit, prompting discussions on how to reverse this trend [SOURCE - Business Mirror]. Additionally, the country has signed a Reciprocal Access Agreement with Japan, enhancing trade relations and marking a significant step in its international partnerships [SOURCE - The Manila Times].

Oceania Stability Ratings and News Summary

More Unstable

🇫🇯 Fiji, 🇰🇮 Kiribati, 🇳🇷 Nauru, 🇳🇿 New Zealand, 🇵🇬 Papua New Guinea, 🇼🇸 Samoa, 🇸🇧 Solomon Islands, 🇹🇻 Tuvalu, 🇻🇺 Vanuatu

More Stable

No countries were more stable over this period

Unchanged

🇦🇺 Australia, 🇫🇲 Federated States of Micronesia, 🇲🇭 Marshall Islands, 🇵🇼 Palau, 🇹🇴 Tonga

Regional News Summary

Australia is taking significant strides in reshaping its regulatory landscape, particularly concerning the tech industry and media. The government has announced plans to compel major digital platforms like Meta and Google to pay for news content, aiming to ensure fair compensation for local publishers. This initiative is part of a broader strategy to revitalize the news sector, which includes taxing platforms that fail to comply with these regulations [SOURCE - THE DAILY STAR].

In addition to media reforms, Australia is deepening its defense ties with the UK, reaffirming their strategic partnership in the Asia-Pacific region during a meeting in London. This commitment underscores the importance of collaborative security efforts in a rapidly changing geopolitical landscape [SOURCE - FINANCIAL POST].

On the environmental front, Australia is making notable progress towards its renewable energy targets, positioning itself ahead of schedule to meet its goals. This commitment to sustainability is further reflected in the push for comprehensive electric vehicle policies aimed at achieving net-zero emissions [SOURCE - MICHAEL WEST].

Housing affordability remains a pressing issue, prompting the government to allocate funding for the rapid development of social homes to address shortages [SOURCE - MICHAEL WEST]. Meanwhile, the education sector continues to thrive, attracting international students, particularly from India, due to favorable course offerings and experiences [SOURCE - INDIA TODAY].

In New Zealand, a significant shift in immigration policy has occurred with the overturning of a visa denial for conservative commentator Candace Owens, a decision that has sparked controversy and discussions about free speech [SOURCE - FORBES]. The government is also introducing regulations to monitor satellite operations to enhance national security, reflecting growing concerns over unauthorized access to sensitive information [SOURCE - JAPAN TODAY].

Economic challenges persist in the Marshall Islands, where the fishing industry is threatened by climate change, leading to declining revenues. The economy's reliance on U.S. funding under the Compact of Free Association further complicates the situation [SOURCE - BBC NEWS]. Additionally, the country is implementing a climate-resilient agriculture project to bolster food production and reduce dependence on imports [SOURCE - NATIONS TOP].

In Fiji, a recent 7.3 magnitude earthquake has caused significant destruction and loss of life, prompting emergency responses from the government and international aid [SOURCE - RNZ]. 

Carpe tomorrow!