Additional stimulus would reassure investors that the government will do whatever it takes to support economic growth.

However, there is a growing discussion amongst economists on what could come with an economic recovery: inflation. Investors fear that an increase in rates would mark the end of the abundance of liquidity on the markets. Everybody remembers the taper tantrum of 2013, when the Fed tried to progressively reduce its quantitative easing policy. And Joe Biden’s stronger stimulus could have a greater effect on prices.

This time, central banks have explained that they will be more tolerant than usual to price increases, and will not raise their rates any time soon. The question is whether we will experience a simple period of price catch-up or a new era of sustained high inflation, which could significantly upset financial markets.

Meanwhile, Donald Trump is  once again at the center of news, after he became the first White House tenant to face two impeachment proceedings during the same term. Yesterday, the Democrat-majority House of Representatives, aided by ten Republican mavericks, voted 232 to 197 in favor of impeaching Donald Trump for "inciting insurrection." For the process to go any further, a favorable vote in the Senate is required, and the Senate will not be able to consider the matter until January 19. This means the case will be decided after Joe Biden's inauguration on January 20. A two-thirds majority is required in the upper house, which means that 17 of the 50 Republican senators must vote in favor. This could  prevent the 45th president of the United States from running for another term in four years and beyond .

Elsewhere, China reaches new records. Not content to be one of the only countries to have experienced positive growth in 2020 (with exports up 3.6% for the year as a whole and imports down 1.1%), the country saw its December trade balance reach its highest level since 2007, according to data recorded by Refinitiv. It reached $78.17 billion, higher than the $72.35 billion forecast and the November figure of $75.40 billion. In particular, exports were better than expected, with year-on-year growth of 18.1% compared with the consensus of 15%. The same was true for imports, which grew by 6.5% compared to 5% as forecast. This was driven by the impressive rebound in China's manufacturing sector, which benefited from continued demand for medical supplies. Since March, the Middle Kingdom has exported more than 240 billion masks around the world, or nearly 40 per person! Masks alone account for 2% of Chinese exports, the equivalent of $52 billion.

However, the strengthening of the yuan and the increase in the price of raw materials are likely to reduce exports as well as the decrease in demand for medical products that should be observed by the end of 2021, following the global vaccination programs.