Frankfurt letter, week beginning March 28
-The European Central Bank
Last week's loud and clear message from the European Central Bank (ECB) was that the bank cannot alone repair the Eurozone.
Speaking at a conference in Paris, Benoit Coeure, a member of the Executive Board of the ECB said, "The measures we announced on March 10, 2016 form a very substantial package which gives priority to loans for households and businesses, and thus supports the recovery."
"But the ECB cannot single-handedly create the conditions for a sustainable recovery in growth. This requires a concerted effort in terms of economic and fiscal policies," he added.
Coeure issued another call to governments in the Eurozone to implement "ambitious reforms" to their economies to help boost growth.
At the ECB's latest meeting, President of ECB Mario Draghi also called for reforms, arguing that they will help boost growth in the Eurozone.
In addition to its quantitative easing program and new generous measures, the ECB has been urging governments across the Eurozone to put some reforms in place.
- Stocks and economic data
Last week, the European markets followed a fluctuating course. European shares fell sharply on Tuesday, after explosions in Brussels killed several people.
However, by later in the week, Europe shares closed mixed.
- News from Germany
Last week there was some positive news for Germany. The German IFO Business Climate brightened slightly in March after weakening for three consecutive months. The index rose to 106.7 points in March from 105.7 points in February.
The export outlook for March looked more positive for German manufacturers, the Research group IFO institute reported on Thursday. Export expectations rose to 6.4 balance points in March from 4.7 points in February.
However, on a more negative note, the important German carmaker VW group is recalling 800,000 Touaregs and Porsche Cayennnes. "The reason is possible loosening of a retaining ring on the bearing block of the pedal system," the group said in a statement.
-The week ahead
This week, there is a scarcity of data for the Eurozone, however flash estimate Euro area inflation data will be followed.
On the German side, along with inflation, investors will also monitor the retail turnover data and monthly labor market statistics reflecting employment and unemployment numbers.
By Abdulselam Durdak
Anadolu Agency / Frankfurt am Main