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Next steps for Brexit are under scrutiny, Renault pushing Nissan for a shareholder meeting and caution to greet the week for markets. Here are some of the things people in markets are talking about.

New Brexit Referendum Nixed 

Theresa May’s team pushed back against reports they are warming to a second referendum on Brexit as the U.K. prime minister prepares to face Parliament on Monday. David Lidington, May’s effective deputy, and Chief-of-Staff Gavin Barwell said they don’t favor another plebiscite after newspapers reported they’d held talks on the issue. May herself launched a broadside at former Prime Minister Tony Blair for championing a "People’s Vote." Speculation has intensified about a second referendum on leaving the European Union since May withdrew a House of Commons vote on her divorce deal with Brussels when it became clear it was headed for defeat. 

Renault Wants to Talk

Renault SA is pushing Nissan Motor Co. to call a shareholder meeting as soon as possible to discuss the Japanese automaker’s indictment, governance and the French company’s appointees on Nissan’s board, people familiar with the matter said. Carlos Ghosn, who was ousted as Nissan’s chairman shortly after a Nov. 19 arrest, and Nissan were indicted in Japan last week for understating the executive’s income. The indictment by the Japanese Public Prosecutor’s office creates "significant risks" to Renault as its largest shareholder and to the stability of both companies’ industrial alliance, Renault Deputy Chief Executive Officer Thierry Bollore wrote to Nissan CEO Hiroto Saikawa on Friday, the people said. Nissan’s board is scheduled to meet today. 

Markets Open

It’s likely to be a cautious start to the week for markets after risk appetite took a hit last week. Asian equity futures are mixed, with the Nikkei 225 seen opening lower and the Hang Seng higher. The S&P 500 fell to the lowest close since April on economic growth concerns despite positive U.S. consumer spending data. The yen is essentially flat in early Asian trading after being the only G-10 currency to advance against the dollar Friday, when 10-year Treasury yields dipped two basis points. 

Coming Up…

The U.S. Federal Reserve’s monetary policy decision is the highlight for the markets this week, with the U.S. central bank widely expected to raise interest rates for the fourth time this year at the two-day meeting that starts Tuesday. Rate decisions from the Bank of England and the Bank of Japan are both due Thursday. Australia releases its mid-year economic and fiscal outlook on Monday, and the central bank releases its minutes on Tuesday.  SoftBank’s Japan mobile business makes its trading debut after a $23.6 billion IPO on Wednesday.  A partial U.S. government shutdown could start Friday as President Donald Trump says he would be “proud” to close the government if he doesn’t get funding for a border wall. Also on Friday, quadruple witching – the simultaneous expiration date of stock index futures, stock index options, stock options and single stock futures – could jolt trading volumes. 

ABB, Hitachi Deal

Swiss engineering giant ABB Ltd. is nearing an agreement to sell about 80 percent of its power-grids unit to Hitachi Ltd. in a deal that would value the entire business at about $11 billion, according to people familiar with the matter. ABB and the Japanese conglomerate are scheduled to announce the transaction as early as Monday, said the people, who asked not to be identified because discussions are private. A representative for ABB declined to comment while Hitachi couldn’t immediately be reached for comment outside of regular business hours. 

What we've been reading

This is what’s caught our eye over the last 24 hours.

• China is seeing bankruptcies surge. 
• Lion Air and Boeing head into a $22 billion feud. 
• China’s economic future depends on Xi Jinping’s next moves.
• The White House gets a face lift. 
• Southeast Asian stocks look likely to have a better 2019.
• North Korea says U.S. sanctions won’t work. 
• A bulls vs. bears guide to the 2019 world economy. 
• An explosion in a restaurant in northern Japan injures more than 40 people. 

To contact the editor responsible for this story: Adam Haigh at ahaigh1@bloomberg.net

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