Here is what you need to know.
The Reserve Bank of India cut rates. India’s central bank lowered its key interest rate 25 basis points to 6.50%, as expected. The rate cut was the fifth since the beginning of 2015, and dropped the RBI’s main rate to its lowest level since 2011. In addition, the bank held its cash reserve rate at 4.00%, and raised its reverse repo rate 25 basis points to 6.00%. The Indian rupee is lower by 0.4% at 66.4950 per dollar.
Australia’s central bank warned about a strong Aussie dollar. The Reserve Bank of Australia held its benchmark interest rate at 2.00%, as expected, and warned a strong Australian dollar could pose a problem. “Under present circumstances, an appreciating exchange rate could complicate the adjustment under way in the economy,” the central bank said in its statement. This marked a big change from the March meeting when the RBA said, “…the exchange rate has been adjusting to the evolving economic outlook.” The Australian dollar is down 0.9% at .7535.
European PMIs disappointed. The eurozone’s composite PMI reading for March came in at 53.1, down from its flash reading of 53.7. Looking under the hood, services PMIs across the region missed estimates, except in Spain, where the reading improved to 55.3 from its flash reading of 54.1. Weakness in France is apparent as a services print of 49.9 means that the sector is once again contraction with a reading below 50. Germany’s services reading fell to 55.1, the second lowest number since November. The euro is weaker by 0.3% at 1.1357.
The favourite to be Disney’s next CEO is out. Disney COO Thomas Staggs, the man who was expected to takeover as CEO once Bob Iger’s contract expires in 2018, is leaving the company. He will remain on staff was a special advisor to Iger through the current fiscal year. Staggs has been at Disney for 26 years.
Tesla’s deliveries missed estimates. Following Monday’s closing bell, Tesla announced it delivered 14,820 vehicles in the first quarter of 2016, missing the 16,000 that it had expected. The automaker reaffirmed its full year guidance saying, “Q1 deliveries were almost 50% more than Q1 last year and Tesla remains on track to deliver 80,000 to 90,000 new vehicles in 2016.” Tesla remains well below that pace, and would need to deliver 35,000 cars in the fourth quarter unless it can pick up the pace in the middle of the year. Shares of Tesla are down more than 3% in early trade.
Valeant’s creditors aren’t happy about its plan to delay its annual report. Back on March 15, Valeant fell into technical default after it failed to file its 10-K. Now the company wants to push back its filing even further, according to Bloomberg. The company is offering its creditors a fee and a higher interest rate in exchange for new terms. At least half of Valeant’s creditors must approve the amendment by Wednesday for it to go into effect.
Credit Suisse wants to build up its business in China. Speaking at the Credit Suisse Asian Investment Conference in Hong Kong, CEO Tidjane Thiam said his firm is “underweight” China, and that he wants to build up its wealth management operations in the country, Reuters reports. Credit Suisse would reportedly like to double its net income from the Asia-Pacific region to 2.1 billion Swiss francs ($2.19 billion) within the next two years. “We have a good customer base. Today we are offshore, but ultimately we will be onshore,” Thiam said.
Stock markets around the world are under pressure. Japan’s Nikkei (-2.4%) fell for a sixth straight session and Germany’s DAX (-2.4%) paces the decline in Europe. S&P 500 futures are lower by 17.75 points at 2039.75.
Earnings reporting is light. Darden Restaurants and Walgreens Boot Alliance will report ahead of the opening bell.
US economic data flows. The trade balance will be released at 8:30 a.m. ET before ISM services and JOLTs job openings cross the wires at 10 a.m. ET. The US 10-year yield is down 4 basis points at 1.72%.
NOW WATCH: There’s a terrifying reason why people are warned to stay inside at 5:45 p.m. in parts of Mexico
Business Insider Emails & Alerts
Site highlights each day to your inbox.