At the start of the new week investors are excited about the latest fundamental reports from China. The country is indeed the only major economy to grow in 2020, publishing an annual GDP report that shows growth of 2.3%, slightly better than the forecasts, in large part due to speedier growth towards the end of 2020.
Other notable publications from China include the industrial production report for December, which was also better than anticipated, and the retail sales (also for the previous month), which were disappointing.
China appears to have brought the coronavirus pandemic completely under control and is enjoying a significantly better economic performance than other countries. International trade also continues to work in China’s favor.
Another key topic today, which will extend over the course of this week, is Joe Biden’s upcoming inauguration and first actions as President of the United States. Biden is reportedly preparing to launch a series of executive orders to cancel much of what Donald Trump has done during his term. The coronavirus will likely be the topic of several of these orders.
As for the pandemic, the world has surpassed 95.5 million cases. Of those, 24.4 million come from the United States, 10.5 million from India, and 8.4 million from Brazil. Europe (including Russia and the United Kingdom) has had 27.5 million cases to date. The top three most affected countries in Europe are Russia, the UK, and France.
Most notably, France and Germany are both considering tougher restrictions to help suppress the spread of the coronavirus.
Aside from Covid-19, politics are an important topic for Europe today. The Christian Democrat Union in Germany elected Armin Laschet as the new party leader over the weekend. He will succeed Angela Merkel when she steps down; considering Merkel’s party’s popularity, Laschet could very well be the next Chancellor of Germany and de facto leader of the EU. He is seen as very like-minded to Merkel, so not much would change under his leadership.
Meanwhile, Italy is facing another crisis as the government’s coalition fell apart. Parties are now scrambling to forge new alliances as the country heads towards yet another political crisis.
