tv Bloomberg Markets Americas Bloomberg September 30, 2019 1:00pm-2:00pm EDT
conference in manchester, england, he said the national living wage window raised to 10 pounds $.50. he also said he would bring down the age threshold to cover all workers over the age of 21, from 25 currently. in maryland, a law that raises the legal smoking age will go into effect tomorrow. a lot raises the age to purchase cigarettes, cigars, and vaping products from 18 to 21. legislators say the law will cover all electronic smoking devices, parts, and accessories. in israel, prime minister netanyahu will make a last-ditch effort to form a government. elections this month produced a stalemate. global news 24 hours a day, on-air, and @tictoc on twitter, powered by more than 2700 journalists and analysts in over
120 countries. i'm ritika gupta. this is bloomberg. in his 1:00 p.m. in new york, 6:00 p.m. in london, 1:00 a.m. in hong kong. i'm vonnie quinn. welcome to "bloomberg markets." from bloomberg world headquarters in new york, here are the top stories from around the world we are following. president trump calling for the democrat leading the house impeachment inquiry to be questioned for treason. we have the latest from washington. looks safe for now. the credit suisse board backing the ceo after an investigation into a spying scandal. the coo could take over. wait.k, now we
the company withdrawn its initial public offering. all that in the next 30 minutes. abigail doolittle is with us, halfway into the last trading day of the quarter. abigail: the dow, s&p, nasdaq all near session highs. the dow and the s&p 500 set for quarterly gains. of nasdaq on the cusp whether it may put in its first quarterly loss of the year. gains continue, maybe it will join the dow and s&p 500 higher. not as risk on, the euro, trading at its lowest level against the dollar since 2017. investors seeking the haven status of the dollar. the european economy is weaker than the u.s. economy, but nonetheless, probably a little bit risk off.
where we are looking at an interesting rebound, apple, a one-year chart. what we have now is the stock trading at its highest level in almost a year. today being supported by jpmorgan, which brought up its volumes forecast for the iphone, also raising their price target to $265. they say the sentiment has improved materially. where we also have some moves for boeing over the last few days, not to the upside. 2.2%, despiteown some setbacks. the company has come in revamping their safety plan. they put together a new product and services safety organization to prevent the possibility of other tragic crashes. really responding, down 2.2% on the day. as you mentioned, the
last day of the quarter. stocks overall are higher. what makes this interesting and not as a risk on, these are the best sectors for the s&p 500 in the third quarter. is the best sector for the corner. utilities, real estate, consumer staples. investors seek those dividends when yields go lower. utilities right now on pace for row.ixth of quarter in a that is the longest winning streak going back to 1995. the degree to which investors are moving towardthat is the log streak going back utilities, a lot of next signals. we will be here to watch at all. vonnie: abigail doolittle, thank you. impeachment inquiries entering week two. president trump taking aim at the whistleblower. in a number of democrats pointed twitter blitz.
meanwhile, arizona senator jeff flake urged republicans to stand myto the president, writing, fellow republicans, it's time to risk your careers in favor of your principles. whether you believe the president deserves impeachment, you know he doesn't deserve reelection. for those that want to put america first, it is critically important at this moment in our country that we all, here and now, do just that. anna edgerton, bring us up-to-date on where we stand with teaching and the process with it. on a recess for two weeks, where they are back at their home districts talking to their constituents. democrats will be explaining why they are doing this, what the allegations are, and what makes this different. willlicans will of course be trying to see if there any pressure on those republicans to be open to the impeachment inquiry.
when they get that, we will have a better gauge on what the pressure is from the american public, and what they are hearing from their districts back home. any inkling as to what any individual republican member is thinking? we have jeff flake with that op-ed, but he is no longer a vote. there has been an interesting divide between the house and senate. senate republicans have been a little bit more hesitant. they are criticizing democrats, they are not yet ready to defend the president's actions and have expressed some concerns about the allegations and the conversation that everyone has read between president trump and president zelinski of ukraine. when it comes to house republicans, they are much more closely to the president's talking points, saying this is the mainstream media, democrats in cahoots to have another go at impeaching him because the mueller probe was a disappointment, as they
say. what they are looking for now is any house republicans that would get on board. once it comes to an impeachment vote and there are articles of impeachment on the floor, if it is just a partisan exercise, it will not go very far to win the political argument. however, if there are some house republicans that actually run with democrats to impeach the president, that will be a much stronger argument, sending it to the senate, who will actually be the chamber that decides whether to remove trump from office. vonnie: is it possible between now and when congress returns to washington, d.c. for the news cycle to be switched off in some way, either by the president or some other reason? while congress is out of town, we have two elements we are looking at. one is the president, offering his own defense, very active on twitter. on the other hand, we have the
house intelligence committee, which is still here in washington, continuing their work. formerve invited four and current state department officials to testify this week. we are not sure who will show up. they have also subpoenaed documents from secretary of state pompeo, giving him the deadline of october 4. we could still see some testimony from people involved in this, mentioned on the call. there will definitely be developments to watch, things for members to react to come even back in their home districts. vonnie: fantastic update. thank you. meantime, u.s. stocks advancing on the last day of the quarter. treasuries edging lower as well as investors weigh the latest turns in the global economy. dennis us now is debusschere.
have you been thinking about the impeachment process, what it may due to the stock market? dennis: we have certainly been thinking about it. at this point, it has not changed how we are recommending investors allocate their assets. as a victoryen's have gone up, some sensationalism as far as what be able to implement, but we are focused on the fundamentals now, which are improving. vonnie: the fundamentals are improving but there is a question over the economy. does it matter how the economy performs, if it stays at the 2% trend line, or slows from there, to your model? dennis: 2% is your baseline. then the question is, where are your risks relative to that 4%? 2%? we have been dealing with the
trade war and that is now looking to be down. 's are the last holdout, but as the inventory overhang has worked down, you will see pmi's stabilize. around that 2% will be more favorable, that left tale of recession reduced, which means a cyclical multiple relative to defenses makes less sense. vonnie: ok. the broader market, would you avoid certain sectors? relatively short-term, through the end of the year, we are less excited about utilities, staples, health care, the things that are doing well today. i would note, it was mentioned earlier the dollar is going up, but you are also seeing gold go down. now.e: $1475
dennis: i think there's an underlying conversation. inflation has done better than everyone has talked about. the downside skew to the economy looks to be a little less than what we thought before. should we be discounting the fed cutting forever? probably not if we are going to be in a 2% world with less recession risk. a dollar ends up looking more attractive, but that is for good reason. the economy is looking better. generally speaking, that would be a negative or cyclicals relative to defenses. vonnie: how many more cuts are you pricing in? we are seeing a tiny bit of dovishness emerging from some. confusei would not intent with the mechanics. view, weouse point of think we will go one, maybe two cuss the rest of the year. markets are expecting three or four.
of the fed intent will be cleared to keep financial conditions easy, but that doesn't mean they have to keep on cutting. if the economy improves and inflation is getting back to 2%, by doing the thing, financial ease.ions by definition if i can get this point across -- it's important. financial conditions will be easy. it will be the fence case to keep that to 2%. that doesn't mean that you have to cut four or five times to a compliment that goal. vonnie: what happens if we don't get any resolution to the trade war? does that impact when you are seeing in terms of fundamentals? be getsif list for implemented in december, which according to our analysis, 87% of those things cannot be sourced from other places, then everything i'm talking about goes wrong.
my argument has a lot less credibility because that would be a significant negative event. if you have this persistent uncertainty, you will see a stabilization in the economy because the consumption side of the u.s. economy is strong. eventually, businesses have to do something if they want to remain competitive, hence the overhang being reduced, stabilization in the pmi. overhang bullish backdrop, but businesses will be forced to do something. they will not be there hiding in the basement. vonnie: so we have to check in with you before december. isi, thank you. coming up, credit suisse's board is backing tidjane thiam.
vonnie: this is "bloomberg markets." i'm vonnie quinn. credit suisse's board is backing ceo tidjane thiam according to people familiar with the matter. a crucial meeting happening today to figure out what happens in that scandal. joining us in zurich is maria tadeo. fastuch credit of very credibility does the board have, given it looks like they are looking for a scapegoat, rather than finding out what happened? maria: that is the big question and it's about trying to figure out how such a big public
relations disaster could take place. to go back to what triggered this, you have to go back to the was seen asyee who a rising star here at credit suisse. he decided he wanted to leave the institution and go to ubs, a big rival. there is speculation as to what prompted the exit. the media here will tell you the relationship between the ceo is very much in focus, and have become incredibly toxic, and decided to leave. it becomes more complicated when that surveillance operation is put in place. threatened,was there was a public altercation here. the bank, however, has a different idea of what happened here, that they were simply trying to protect their business, and that is the obligation of any board, to make sure a business is protected, that he would not try to steal other talent from the bank. at this one, the heat on tidjane thiam has come down, the board
has decided to take this decision, but mostly because shareholders are backing him as the ceo. they say he is doing good business, there is no point to ditch the ceo in the middle of a turnaround plan. to be honest, this is a difficult and cutthroat industry. things like this can happen. as long as it is not fully illegal, well, you have to have a thick skin. vonnie: tell us about the wealth management industry. competitors practically across the street there in zurich. exactly. in fact, they are across the street, and you have to keep this in mind. they are huge rivals, they compete with the same kind of this has, clients. many will say this industry has become incredibly competitive because making money was no lover as easy as it was, so everyone has become hyper paranoid about this idea of
bankers switching sides and taking away clients and business. surely, that plays into the story. essentially, this is what credit suisse says, that they were trying to protect their business from a former employee joining a rival, who by the way, will join ubs tomorrow. who pierre is, apparently a confidant to tidjane thiam, but maybe the person catching the flat for all of this. maria: very good point. what we are hearing now is perhaps we get to a situation where none of the top management here at credit suisse takes any blame. the bank says it wasn't actually the management to blame here but the private investigators that overstepped their limits. that is something that could become crucial. whether this is a private investigator that decided to go to aggressive.
wasouee, hes to in charge of staff, daily business with employees. the issue is it is difficult to just point the finger at him. if you look at media reports, it says the personal relationship between i'm kevin cirilli in washington, d.c. and himen tidjane thiam had become thin. this is something that a lot of people have known about. for that.ank you she will continue to follow the story. work with strong the prospectus for its scrapped ipo. where do we go now? this is bloomberg. ♪
putting its ipo on official pause. the company executives announced earlier today, saying rest assured, we work will become a public company, but we can only ipo once, and we want to do it right. it is an understatement to say they did not do it right the first time around. so many things went wrong. what happens now, does the whole thing get shelved, back to square one? >> that is pretty much right. the company says they are committed to being a public but that means an ipo is unlikely to happen in 2019. the entire process will get realigned, they will study ipo profits again. not only are they not going to raise that 3.5 billion for the ipo, there is a credit facility that is contingent on the success of the ipo, $6 million a could be unwound. apart from redoing the ipo, there will be negotiating with the banks on the terms of that
credit line. vonnie: originally, that was contingent on the fact of the ipo being this year. next year would negate any credit line agreement. what about softbank? could they provide financing instead? >> we have not heard officially. co-ceo only started last week, so this is all moving very quickly. we have not heard from softbank. it would not be totally surprising if softbank comes in to protect their investment and says we are going to put money in it. we should expect more reporting, more news. softbank is definitely one to watch. vonnie: they are also redoing the structure of the leasing business. this means it may not look as attractive in the future, right? letter letter to
employees, they said, it's time to look at ourselves as a business, what we want to be in the future. that means we should expect some restructuring, reviewing of their business. that has been a criticism, that they have not been profitable, investors do not like that. hopefully, they can take some time, improve their numbers, and when it comes back next time, they have better performance to perform. zell has said it is like a savings and loan, very long-term leases in favor of short-term, and that it's a very strange structure. if it changes, has anybody presented a new model? >> there is still a question mark. the company has been operating for about nine years. they still have not proven a good business model. this is perhaps one tough lesson to learn that. the short lease is not the success model.
instead of renting the properties, they should be buying some of the properties instead. there are lots of things to experiment. but we will definitely hear from them. i am sure they will keep the market updated. vonnie: thank you for all of your reporting. let's take a look at the data even we are past the halfway mark in this final session of the quarter. the s&p up .7%. the nasdaq is rallying, may even in the quarter in the green. it is up 0.8%. the 10 year 1.60% right now. brands are doing well today, unlike its bonds. this is bloomberg. ♪
ensures hisment campaign has enough money to continue his white house bid. the new jersey senator says if he failed to raise the money come he would end his 2020 bed. booker raise $4.5 million during the second quarter and spent nearly one million more than that. in new york, gop representative christopher collins is expected to plead guilty to insider trading. the congressman was charged last her with trading on nonpublic information about immunotherapy. he was arrested, along with his son, and the father of his son's fiancee. kurtz islia, sebastian on track to return as chancellor. if they can agree on a coalition, that would send a signal across europe. still, it may not be easy to form a government.
ang kong is cleaning up after week of protests and bruising for more. demonstrators threw gasoline bombs at police. they responded by using water cannons. the city will close several major subway stations until further notice. the city is prepared for bigger protest tomorrow, when china marks the 70th anniversary of communist rule. global news 24 hours a day, on-air, and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm ritika gupta. this is bloomberg. shery: live from bloomberg world headquarters in new york, i'm shery ahn. amanda: live in toronto, i'm amanda lang. we are joined by our bloomberg
and bnn bloomberg audiences. shery: here are the top stories from around the world. the u.s. financial battle with china. the white house denies reports that the u.s. could limit investments in the chinese market, which some say would be the most extreme threat in the escalating trade war. but when has unveiled a revamp focus on safety. details on the overhaul. and the first female president of estonia weighs in on the value of the european union and why it's no hard for women to rise through the ranks of political leadership. amanda: let's get a quick check on the major averages on this last day of the quarter. we are seeing the broader markets responding possibly to better news on the trade front, walking back of the dire scenarios that were being mooted about capital control of chinese companies. we have seen energy weak in the broad s&p 500. nasdaq, 0.8%ng the
to the upside. and weentioned boeing, are seeing weakness in that stock, off the lows of the session. continuing to break the news from boeing, we will see what happens to the stock today. an insider look at the demand for aluminum globally. picture of some specific industries, aerospace, autos. blue line, the demand at 2009,akest point since since the financial crisis, but even before that. .nventory levels asking the question about what this means for growth. shery: you mentioned more positive sentiment when it comes to those trade tensions between the u.s. and china. officials in the u.s. playing down those reports that there could be some limits to investments into china. seen this we have
huge inflow of foreign money into chinese stock markets. we are talking about the shanghai composite gaining 60% year to date. in september, on track to become a record holder when it comes to foreigners buying into the mainland stock through the stock connect program. this is in contrast to what's happening with the hong kong index. the hang seng index barely eating out a gain this year as we see protests and violence in hong kong. in the meantime, mainland aheads, hong kong closed of that celebration for the submit anniversary of the communist rule in china. as you say,ourse, we are watching the trump administration issued a partial and qualified denial to that revelation about limits on u.s. .nvestment in chinese companies china bowing to continue to open up its markets to foreign investment, so a cooling down
across the board. with us is our u.s. treasury reporter. taking the temperature on both sides, it needed to happen. it makes me wonder if it was an unauthorized week last week. is this not as bad as we first it might be? >> i cannot say what is or what is not an authorized leak. option that-- this our trade team broke -- was a huge deal. it takes the trade war into a multifaceted economic war, where businesses, u.s. companies operating in china, vice versa, will be hit hard. that is a direct hit to the stock market. now when we are going into these meetings next week in washington, chinese vice premier liu he is supposed to come october 10 and 11th.
investors are hoping for even just a short term truce to see where they can go from there. here, where do we go from given we are going into these talks with the cloud hanging over them? >> the stakes are high. you also have an impeachment inquiry that is hanging over as a cloud over the white house. you have to wonder if that will affect the president's negotiating hand. looking at the u.s.-china relationship, it seems the u.s. says we can go as far back to the agreement in april before chinese negotiators had reneged on promises. they would be happy. but that is the medium term agreement. a shorter truce would be to set aside and see where we can find common ground. right now it looks like the tariffs that are set to go into effect october 1 are still due out. amanda: could there be a
worst-case scenario, if the meetings don't go well, some kind of when it will very targeted, especially tech tariffs? >> it is possible, absolutely. this will also be a model for how other countries negotiate with the u.s. and china. what we have learned about president trump is there are no such thing as empty threats. if he wanted to turn to capital controls or other ways of blocking the chinese are getting a reciprocal trade deal, even if it looks like it is moving backwards, he is not afraid to do it. shery: thank you so much. kong, the in hong city's cleaning up from another week of violent protest ahead of tomorrow's 70th anniversary of communist rule. the clashes marked one of the most violent in about 17 weeks of unrest. here with more insight into what's happening, and the long-term implications is leland miller, ceo of the chinese beige book. now urgingi jinping
for national unity, saying and thely hong kong mainland, the relations would improve. how do you break the impasse? we saw the withdrawal of the extradition bill, but they are still asking for four other demands from the hong kong government. >> in the reality, those are things that beijing would not be willing to meet, like universal suffrage. when you try to figure out how this could end, it is not a pretty ending. couldime, the protesters tire out, the state could peter down, but given how long this has gone on already, you are likely to see a ramped up approach by china to squashing this until it's gone. the idea that the sides will come together amicably or just walk away, almost no chance at this point. expectedne would have
aside to walk away being the protesters, but here we are, weeks and weeks into this, and shows no sign of flagging. how far does this go before the news to be another firm move on the part of china? >> in addition to the fact that hostilities are ramping up, you are passing a worry -- very important holiday october 1. that is a very sensitive political day. they do not want any major drama before this national week. then you will get down to probably the end game. once you are past october 1 and this holiday week, i think beijing will get tougher on the protesters, under the justification that things are ramping up, business is slowing down, gdp is slowing. i think this will start going to the end game soon. shery: 70 years of communist rule in china. what do the next 70 years look like when you have xi jinping?
what does the chinese relationship look like with the u.s.? we continue to see the economies decoupling. leland: a lot of it is on china's shoulders, how they handle their own economy. there is too much debt, not a sustainable long-term model. if this is the time, during five-yearxi's second term, that he starts doing some of the reform and embraces slower but healthier growth, you will have a situation where the chinese will go through hiccups, but on the other side, will be able to come out and still go strong. if they keep pushing back and keep the same model, building up debt, if the current low growth right now ends of influencing them to go big into heavy infrastructure again, then you'll have stronger growth for a while but the repercussions will be much more severe in a few years. amanda: give me your perspective on everything we've been hearing
about the notion of capital controls, limits on chinese companies. what do you make of what you are hearing, what it would really mean? reporting is right on, what they are talking about in the administration, but people are conflating the different proposals being discussed. on the one hand you have the listing chinese companies, making them adhere to u.s. regulatory standards, open up their books, allowing sec to audit them, etc. and some more far-reaching decoupling moves, for instance, borrowing u.s. pension fund money, going into chinese companies. isot of this right now people trying to show how much leverage the united states has in a trade war, still moving forward on a trade deal. some of it is people invested in the idea of decoupling. and some are sinfully trying to embrace the idea that chinese companies have had a loophole to get out from oversight for too
long. alibaba should have the same oversight as walmart. there is a good reason some of these are being talked about. shery: given the close relationship between the communist party in china and not only private companies but also listed companies, how much credence do you give to those ideas that the u.s. is, in a way, underwriting beijing? leland: to some degree, that's true. is, china has reasons why they don't want u.s. law to penetrate chinese borders. this is not about chinese law. this is about chinese companies that go on u.s. exchanges. for all intents and purposes, people think they have the authority of the sec, the people have done due diligence on these companies, but they have not. companies will not allow inventories to come in and open up the books. this is less an issue of capital controls but fairness, an issue of transparency.
they should be no question. on u.s. exchanges, companies are vetted across the board. is it your expectation that we will see more stimulus from the chinese government inside china? leland: we are already seeing a ton of it. they are trying not to go heavy into it in infrastructure. we are already seeing the return of shadow banking. amanda: leland miller, always great to have you. thank you. china's beige book ceo. boeing reveals a revamp. are talking about the ceos overhaul to deepen the focus on safe. that is still ahead. this is bloomberg. ♪
shery: this is "bloomberg markets." i'm shery ahn in new york. amanda: i'm amanda lang in toronto. ceo is telling us a little bit about the structural overhaul. resharpening bear focus on safety after the two accidents of the 737 max. with us from dallas with the latest is our industrial reporter brendan case. what is the ceo telling us? >> basically they are creating more centralized lines of responsibility and accountability for safety concerns. they are appointing a 34-year company veteran to head up a new organization that will cut across the operational and division lines of boeing to focus on safety concerns all the way from the accident investigation team to product engineers and any employee who brings of any concerns about safety throughout the
development or manufacturing .rocess davi shery: do we have any idea on when the max is coming back? >> the faa has not set any timelines. that the fourth quarter which starts tomorrow is monday will see the certification flight with regulators. that is the key step in putting lane back into service with airlines. so far, it remains a question of waiting to see when that will be scheduled. if we had to guess, and we will let the market tell us, how reassuring should this be to investors who have been watching boeing, wondering about the future? >> it is a step along the way but only a step. it's an internal reorganization. time will tell how the bureaucratic organization here,
whether it works or not, whether they are successful in creating more accountability around safety. but it is just one step along the way. the key piece remains the certification flight, and then the process of putting the plane back into service and seeing how passengers react. it's been a very long grounding. people have become very aware of the problems that have afflicted this model. shery: mr. muhlenberg has agreed to his first appearance before congress on october 30. what should we expect in that hearing, what else should lawmakers be asking the ceo? will depend on whether the certification flight with the faa has taken place. if it has not taken place by then, there will be a lot of ,erious questions about when
will the plane have any chance of returning to service this year? askakers will be sure to muhlenberg about both the changes to the 737 max at the company is working on, as well as upcoming programs. boeing has an updated version of the 777 that is heading for its first flight next year. a lot of attention will be on that going forward. shery: brendan case, thank you for the latest on boeing. coming up, my conversation with estonia on howf estonia on how brexit is helping other countries see the value in the european union. this is bloomberg. ♪ opean union. this is bloomberg. ♪
estonian president kirsty calamtiy jane became the first resident -- female president of her country when two took office in 2016. i recently sat down with her at the u.n. general assembly and asked why the political empowerment of women has been difficult, and how her country views the latest exit woes. interestingly, if you look beyond the brexit debate, which we tend to do, because brexit is not essential issue, or european union even. we understand for u.k. people, it is these days, a very important task, but we look also how people voted, turned out the vote in the european parliament elections. the numbers were very high. -- support for the eu is in considerably higher than it used to be for quite some time. right now it is visible that people, even through the difficulties of the brexit howess, have realized
valuable the common labor market, the freedom of movement is. ,ome people are being drawn out not from the euro area, but from the eu. numerous questions arise, and they are all questions about new rigidities, new barriers. shery: do your people feel the european union is delivering? people feel it much more than before we joined the european union. estonian was one of the most captive countries before we joined. now, support for the european union is about 80%, and has been long. we see that the european union has proved itself to our people. shery: you are the first female leader of estonia. why political empowerment of women has been so difficult so far? kersti: if you look at the free and democratic world, which i really admire from afar, while
our country was occupied by the , then for the first generations of emancipated women, the opportunity was mostly, if they went to the workplace, they had to leave family behind. no children, working hours like men. so it was acceptable for women at top-notch jobs, but only at huge expense of family life. not having it at all or delegating taking care of children, so you seldom saw them even. don'tnerations of women have to go through this because we have also learned from this. the european countries have long been suffering from low birth rates. i think these things are deeply linked. people in our country, in occupied countries, we had to work, so we are used to having to the view of people in the household work. at the same time, the burden also fell on women.
situationlso not the that we could be happy. now we need to learn from this, in historic perspectives, and make sure young women, when they are in the workforce, that we don't tell them, now that you have had a baby, you are left behind. your classmates are getting their first high-level posts, but you are nursing the baby. for thefind a way workplace to celebrate also women as they are. this is what we do as women leaders. tell what it meant for our generation to get to the top, what kind of stigmas were attached, and get rid of those stigmas. estonia'st was president kersti kaljulaid. amanda: time for the business flash. agreed to group has buy a portfolio of u.s. warehouses from colony capital.
the price, $5.9 billion, includes debt. construct ait would rich nugent review of its assets to salvage its shrinking market value. in china, alibaba and richemont's venture has gone live. several companies are featured. alibaba predicts chinese consumers may make up half of the global luxury market by 2005. that is your business flash update. they: if you missed any of charts we showed you throughout programming, gtv is your function on the bloomberg. live from toronto and new york, this is bloomberg. ♪
for treason. he called the was a blowers account a fraud. in california, a new law will allow collegiate athletes to hire lawyers. this violates existing policy and sets up a legal pad -- challenge that could reshape amateur sports. kevin newsom says the law will allow athletes at california universities to make money from their images, names, or likenesses. the law bans schools from kicking athletes off the team if they get paid. california is the first state to pass such a law. the law takes effect january 1, 2023. boris johnson is not just fighting to get a brexit deal, he is also battling for his credibility. johnson faces allegations of sexual impropriety and plots to oust him. he has been forced to deny he groped a journalist at a lunch 20 years ago.