Opening Bell 6.19.18

ZTE Tanks; McAfee concerns; Wells Fargo shakeup; Golf Cart chop shops and more!
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Donald Trump Threatens New Tariffs on $200 Billion in China Imports [WSJ]

The move followed tariffs applied last week on $50 billion in Chinese imports to the U.S., designed to punish China for unfair trade practices. Beijing immediately threatened to retaliate with its own equivalent tariffs on U.S. goods.

In a statement late Monday, Mr. Trump said that he now wants U.S. Trade Representative Robert Lighthizer to identify a second tranche of goods imported from China for tariffs of 10%.

Should China retaliate to those additional tariffs, Mr. Trump promised to escalate even further by placing tariffs on another $200 billion in Chinese goods.

Crypto Celebrity McAfee Stops Touting ICOs, Citing ‘SEC Threats’ [Bloomberg]

ohn McAfee, the anti-virus software pioneer turned cryptocurrency evangelist, said in a tweet on Tuesday that he will stop recommending ICOs because of unspecified “threats” from the U.S. Securities and Exchange Commission.

“Due to SEC threats, I am no longer working with ICOs nor am I recommending them, and those doing ICOs can all look forward to arrest,” McAfee wrote from his verified Twitter account, which has more than 820,000 followers. “It is unjust but it is reality. I am writing an article on an equivalent alternative to ICOs which the SEC cannot touch. Please have Patience.”

ZTE shares tank after U.S. Senate puts Trump reprieve in doubt [Reuters]

The 85-10 bipartisan vote - one of the few times the Republican-led Senate has veered from White House policy - came on the same day that U.S. President Donald Trump threatened to impose a 10 percent tariff on $200 billion of Chinese goods, escalating tensions between the world’s two biggest economies.

Trump is, however, expected to lobby hard against the amendment to the National Defense Authorization Act (NDAA), and before it can become law, the bill must be reconciled with one passed by the House of Representatives that does not include the amendment.

Wells Fargo to Restructure Wealth Management Business [WSJ]

The bank is planning to combine two large divisions within the business, known internally as Wealth Brokerage Services and Private Client Group, the people said. Both are brokerages serving mass affluent customers. The private client group has about 9,500 brokers who work out of Wells Fargo’s brokerage offices, and Wealth Brokerage Services has around 3,400 brokers who work out of retail bank branches.

A Wells Fargo spokeswoman said the bank’s “Wealth and Investment Management group is reimagining our business to become more efficient” but “no final decisions have been made.” She added that the bank will continue to serve wealth and investment management clients across several channels.

Musk Says Tesla Hit With ‘Extensive’ Sabotage by Rogue Employee [Bloomberg]

Musk’s email comes as Tesla races to ramp up production of its critical Model 3 sedan to 5,000 cars a week. Last week, Musk announced that he was reorganizing the company and shrinking Tesla’s workforce by 9 percent in a bid for profitability. More than 3,000 workers lost their jobs, and notices filed with the state of California revealed that over 500 employees in Fremont and Palo Alto were dismissed.

Cops: Drug raid in Fla. retirement community uncovers possible golf cart chop-shop [CBS]

Drugs were in "plain sight" in the home, deputies said, and investigators uncovered golf cart parts including windshields, seat cushions, wheels and tires in the garage in attic, reports CBS affiliate WKMG. Brannen told the Village News the property may have been used as a golf cart chop-shop.

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