Frankfurt letter, week beginning April 4,
On Sunday, the International Consortium of Investigative Journalists (ICIJ) published a massive leak of documents on offshore tax evasion linked to many world leaders known as the Panama papers.
The leaks from the Panamanian law firm, Mossack Fonseca, involve more than 11.5 million documents, nearly 215,000 companies and 14,153 clients of the firm, according to the German newspaper Süddeutsche Zeitung.
German Finance Ministry spokesman Martin Jaeger said in Berlin that the German government hopes the ongoing debate will contribute to increasing pressure on offshore tax havens.
-The European Central Bank
ECB published monetary developments in the euro area for February 2016. According to this report, the annual growth rate of total credit to euro area residents increased to 3.2 percent in February 2016, from 2.6 percent in the previous month.
The annual growth rate of credit to the government increased to 10.1 percent in February, from 8.7 percent in January, while the annual growth rate of credit to the private sector increased to 1.2 percent in February, from 0.9 percent in January.
The annual growth rate of the broad monetary aggregate M3 stood at 5.0 in February 2016.
Eurozone inflation rate remains below zero in March. The Euro area annual inflation is expected to be -0.1 percent in March 2016, up from -0.2 percent in February, according to a flash estimate from Eurostat, the statistical office of the European Union.
In summation of the main components of euro area inflation, services are expected to have the highest annual rate in March, while energy prices once again declined.
And another important indicator again boosted the negative climate in the Euro area. The European Economic Sentiment fell to the lowest level since February 2015.
Economic sentiment in the 19 countries sharing the euro fell to 103.0 points in March from 103.9 in February, according to European Commission data.
However, unemployment showed only a moderate increase. According to data released by the Eurostat, the euro area’s seasonally-adjusted unemployment rate was down to 10.3 percent in February from a revised 10.4 percent in January.
- News from Germany
The positive news for Germany continued also last week. In Germany, provisional results from the Destatis - the nation's statistics agency, showed that retail turnover increased in real terms and in nominal terms by 5.4 percent in February compared to the corresponding month of the previous year.
Provisional calculations from Destatis also showed that about 43 million people residing in Germany were in employment in February.
Compared with the same month a year earlier, the number of persons in employment increased by 546,000 or 1.3 percent.
Compared to the same month last year, this marked an increase of 546,000 or 1.3 percent. Destatis also reported that according to the results of the labor force survey, 1.95 million people were unemployed in February 2016.
German utilities group RWE launched its new renewable energy unit on Friday. The group plans to list the new unit, which includes its renewables, grids and retail businesses, on the stock market by the end of the year.
-The week ahead
This week, global markets will monitor the Eurozone industrial producer prices, unemployment and retail trade data, as well as news from the ECB.
In Germany, investors will focus on foreign trade, building permits and domestic tourism data.
By Abdulselam Durdak
Anadolu Agency / Frankfurt am Main