SITREP

Good morning, US-China Talks Enter Second Day US Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer met with Chinese Vice Premier He Lifeng for nearly six hours in Madrid Sunday, discussing TikTok’s looming deadline, trade issues and national security concerns as diplomacy intensifies between the world’s two largest economies. The talks aim to lay groundwork for a potential Trump-Xi Jinping meeting as soon as October during South Korea’s APEC summit, though veteran negotiator Wendy Cutler warned that “agreeing on deliverables for a possible Trump-Xi summit will not be easy” given China’s growing confidence it holds the upper hand. China launched two new investigations targeting US semiconductor companies just before the talks, including an anti-dumping probe on American analog IC chips, shortly after the US added 23 more Chinese firms to its entity list restricting businesses deemed contrary to national security interests. More - Bloomberg ...

Good morning, Nepal Protest Death Toll Hits 51 Nepal’s anticorruption protest death toll reached 51 including 21 protesters, nine prisoners, and three police officers, while over 12,500 escaped prisoners remain on the run after jailbreaks during the chaos that saw parliament set ablaze and Prime Minister KP Sharma Oli resign. Former Chief Justice Sushila Karki appears set to be appointed interim prime minister as she’s seen as an “anticorruption voice” acceptable to Gen Z protesters, though uncertainty remains whether she can serve without being a parliament member, potentially requiring dissolution of parliament or constitutional changes. The army imposed curfews and recovered over 100 looted guns as shops began reopening Friday with signs of normalcy returning to Kathmandu, while some escaped prisoners reportedly tried crossing into India where border forces apprehended scores, as Nepal faces prolonged political uncertainty in a country wedged between India and China that has struggled with instability since abolishing its monarchy in 2008. More - Al Jazeera ...

Good morning, Just the regional roundup today Asia Stability Ratings and News Summary More Unstable Afghanistan, Armenia, Azerbaijan, Bangladesh, Georgia, India, Indonesia, Japan, Kazakhstan, Laos, Mongolia, Myanmar, Nepal, North Korea, Pakistan, Philippines, South Korea, Sri Lanka, Tajikistan, Thailand, Turkmenistan More Stable No countries were more stable over this period Unchanged Bhutan, Brunei, Cambodia, China, East Timor, Kyrgyzstan, Malaysia, Maldives, Singapore, Taiwan, Uzbekistan, Vietnam Regional News Summary In Singapore, inflation has eased to 0.6% in July, the lowest since January 2021, driven by declines in food, transport, and housing costs. Economic relief came as the stock market showed resilience. Payment institution 2C2P secured a major Singapore license, while Abaxx facilitated collaboration between the China City Gas Association and Asian partners. SOURCE - CNBC ...

Good morning. Hamas Claims Leaders Survived Israeli Strike on Doha HQ Israel conducted a strike on a Hamas residential compound in Qatar’s capital using 15 fighter jets that fired 10 munitions, resulting in five Hamas deaths including the son of chief negotiator Khalil al-Hayya. Hamas asserted that its negotiating team discussing Trump’s ceasefire proposal survived the operation. Netanyahu characterized the strike as “fully justified,” targeting individuals involved in organizing the October 7 attack. Qatar condemned what it called a “cowardly” violation of its sovereignty. The White House stated that bombing a sovereign ally “does not advance Israel or America’s goals,” though it acknowledged eliminating Hamas as “worthy.” ...

Good morning, Nepal Protests Kill 19, Parliament Stormed At least 19 people died and dozens were injured as police fired live rounds, tear gas and rubber bullets at young protesters demonstrating against Nepal’s social media ban and government corruption, with some forcing their way into Parliament in Kathmandu. Seven victims died at the National Trauma Centre with many shot in the head and chest, while thousands of students in school uniforms held signs reading “Shut down corruption and not social media” as Prime Minister KP Sharma Oli called an emergency cabinet meeting. The UN called for accountability following the bloodshed as analysts said Gen Z frustration with unstable governments, rampant corruption and limited job prospects had reached a “tipping point” after the government blocked Facebook, YouTube and X for failing to register with authorities, prompting what organizers dubbed “demonstrations by Gen Z” demanding change from a generation that “grew up with the optimism and dream of an inclusive new Nepal.” ...

Good morning. Milei Suffers Buenos Aires Landslide Defeat Argentine President Javier Milei’s La Libertad Avanza party suffered a resounding defeat in Buenos Aires province, winning only 34% compared to 47% for the center-left Peronist opposition in a vote seen as a bellwether for October’s national midterms. Milei acknowledged the “clear defeat” but vowed no changes to his free-market economic program while promising “deep self-critique,” as investors brace for losses with the peso already sliding above 1,400 per dollar and bonds underperforming emerging-market peers. The libertarian president faced headwinds including a graft scandal involving alleged kickbacks benefiting his sister Karina, stone-throwing incidents during campaigning, and economic contraction for three straight months with formal job losses since January, while barred former president Cristina Fernandez de Kirchner celebrated from her balcony under house arrest after her corruption conviction. More - Bloomberg ...

Good morning Israel Intensifies Gaza City Campaign Israeli forces control 40% of Gaza City as round-the-clock bombing reduces entire neighborhoods to rubble, killing 44 people Thursday including a family of five in a tent strike, with UNICEF calling it a “city of fear” trapping nearly one million residents. Military spokesperson said the operation will “continue to expand and intensify” as satellite images show over 52 Israeli vehicles forcing displacement toward the west, while hospitals overflow with casualties and al-Shifa’s morgue floor is strewn with white-shrouded bodies. US Secretary of State Rubio blamed France and other countries planning Palestinian state recognition for Israeli West Bank abuses, as the US sanctioned three Palestinian rights groups for supporting ICC war crimes investigations against Netanyahu, while EU official Teresa Ribiera called Gaza a “genocide” and criticized the bloc’s inaction as the death toll surpassed 64,000. More - Al Jazeera ...

Good morning, Putin Vows Military Resolution in Ukraine Russian President Putin declared Russia will “resolve all our tasks militarily” should Ukraine reject negotiations. Speaking from Beijing after China’s military parade, he rejected ceasefire proposals while suggesting Zelensky “could always go to Moscow”–a proposal Ukraine’s foreign minister deemed “knowingly unacceptable.” Putin reiterated demands for Ukrainian NATO abandonment and cessation of alleged ethnic Russian discrimination, while refusing to cede occupied Donbas territories. Trump stated Putin “knows where I stand” and threatened additional sanctions beyond targeting India for Russian oil purchases. UK Defence Secretary Healey announced 1 billion pounds in seized Russian assets would fund Ukrainian military aid, describing it as “Putin’s dirty money returned with interest.” ...

Good morning. 11 Killed in US Strike on Venezuelan Boat President Trump announced a US military “kinetic” strike killed 11 people aboard a small boat accused of smuggling drugs from Venezuela for the Tren de Aragua gang, marking the first known attack against alleged drug smugglers since increased Caribbean military deployment began. Trump shared aerial bombing footage on Truth Social warning “anybody even thinking about bringing drugs into the United States” to “BEWARE,” as seven US warships and a nuclear submarine carry over 4,500 sailors and Marines in the region. ...

Good morning, Maduro Threatens ‘Republic in Arms’ Venezuelan President Nicolas Maduro stated he would “declare a republic in arms” if attacked by US forces, asserting Washington’s Caribbean naval deployment targets regime change rather than drug trafficking as officially claimed. Maduro alleged the US deployed “eight military ships with 1,200 missiles and a submarine targeting Venezuela,” describing it as “the biggest threat that has been seen on our continent in the last 100 years.” He mobilized troops along borders and activated citizen militias in response. ...