It's nearly Christmas time, but the mood in the Liberal and National parties is anything but festive.

The Coalition lost its majority in the House after Wentworth, and the cross bench is getting ready to test its strength.

Meanwhile a fresh battle is brewing in the Coalition over whether to move Australia's embassy in Israel.

It's going to be a long final couple of weeks for the Government.

Karen Middleton, the Chief Political Correspondent for The Saturday Paper is The Party Room's guest.

If you want to jump ahead, here is what's in The Party Room:

00:36 - Moving our embassy

07:49 - Victorian election

11:24 - Karen Middleton: APEC

16:47 - Karen Middleton: Population debate

19:38 - Karen Middleton: Corruption busters

24:20 - Karen Middleton: Labor's energy policy

27:27 - Trading Preferences: Joe Hockey’s Instagram

29:17 - Trading Preferences: Turnbull’s Instagram