In today’s Macroeconomic Briefing we highlight two key themes in markets and policy making today. We amalgamate China/US tensions and impeachment as one connected theme, while the second theme is fiscal stimulus. On the first, View from the Peak have written extensively on the potential impact of the ongoing Presidential impeachment process in the US, which could further complicate a resolution of the trade talks, due to resume in October. Furthermore, the announcement on Friday that the White House is considering restrictions/bans on US investment to Chinese firms via the Equitable Act, seems to be a deliberate escalation at a time when conventional wisdom is that hostilities were easing a bit, say VFTP. This will have a significant impact on risk assets, which they set out in their research. Staying with impeachment, given all the recent commotion around factor/style volatility, Macro Risk Advisors have an interesting note on how an impeachment might impact factor investing. On the second theme, the prospects for fiscal stimulus, there’s increasing newsflow where European central bank figures here and here have made comments that indicate a growing acceptance to think beyond the strict fiscal rules that have made fiscal stimulus unviable. We highlight research that looks at the scope for fiscal easing, the shapes and forms that fiscal policy might come in. We also look at the German climate package, a fiscal stimulus of sorts, which Deutsche Bank argue does not change their assessment that it will not lead to a countercyclical fiscal package unless Germany enters a severe recession. However, monetary policy may not yet be completely exhausted, that’s the view of 4X Global Research, who set up which central banks still have ample scope to cut further.