Daily Market Report - 19/05/2015

The Greek prime minister, Alexis Tsipras, has sought to prevent a full-blown run on the debt-stricken country’s banks by promising that he is close to reaching a deal with creditors. Speaking to a group of business leaders, he said the government is ready to compromise with Brussels and the International Monetary Fund as long as a deal will stabilise the situation and allow the country to raise money on the financial markets again. The deal is expected to be much more reasonable to Greece as it would delay austerity measures but still require the government to push through labour market reforms it is strongly against. The proposed deal would grant Greece around 5BEUR’s in June, in time to meet its repayments to the IMF.
Bank employees in Greece have been talking of a marked increase in withdrawals by depositors in recent weeks. A Bank of Greece official said people are taking more or less everything they have got out of their accounts for fear that the government will be dipping into them next.
Deutsche Bank also reported yesterday that it will consider moving part of it's British operations to Germany if the UK votes to leave the EU. The German company is the first of the big banks to begin a formal review into the implications of a referendum on EU membership. This comes on the back of recent news that HSBC has said it has launched a review into moving its headquarters out of the UK. The bank cited increasing tax and regulatory requirements as a driving force behind the decision.

Key Announcements
9:30 - GBP - Consumer Price Index (YoY) expected to stay the same at 0%
10:00 - EUR - German ZEW Economic Sentiment
13:30 - USD - Building Permits

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