SEC Investigating Illumina’s Multi-Billion Dollar Merger with GRAIL

 The Securities and Exchange Commission is the latest government agency to look into Illumina’s $8 billion acquisition deal with cancer diagnostics company GRAIL, the DNA sequencing giant revealed Thursday in an SEC filing.

The SEC sent an inquiry letter in July 2023 informing Illumina that its staff were looking into the deal and, as part of its investigation, was requesting documents and communications related to the acquisition. The agency also asked for statements and disclosures connected to GRAIL and its products, as well as information “related to the conduct and compensation of certain members of Illumina and GRAIL management.”

Illumina is cooperating with the SEC’s investigation, the company said in its SEC filing.

The companies inked their acquisition agreement in September 2020 and was quickly met with strong antitrust pushback. In March 2021, the Federal Trade Commission lodged a complaint against the deal claiming that it would “substantially lessen competition in the U.S. multi-cancer early detection test market.”

The companies pushed through with the merger after an Administrative Law Judge ruled in their favor in September 2022. Nevertheless, the FTC found in March 2023 that the acquisition was indeed in violation of antitrust laws and ordered Illumina to divest GRAIL.

European regulators also moved to block the acquisition. Soon after the FTC’s complaint, the European Commission also launched its own investigation into the deal and in September 2022 vetoed the merger. According to the EC, Illumina’s buyout of GRAIL would suppress innovation and competition in the next-generation sequencing market, as well as give Illumina too much power in this space.

In July 2023, the EC slapped Illumina with a record $476 million fine for closing the GRAIL acquisition before securing regulatory approval. GRAIL also received a symbolic fine of $1,100, the first ever target company to be sanctioned under the Commission’s merger regulations.

“Illumina and Grail knowingly and intentionally breached the standstill obligation during the Commission’s in-depth investigation,” the EC wrote in a press release announcing the fines.

The troubled acquisition of GRAIL has caused Illumina internal strife as well. In April 2023, activist investor Carl Icahn campaigned to place three of his representatives on Illumina’s board ahead of its annual shareholder meeting. Icahn’s pitch focused on then-CEO Francis deSouza’s actions, particularly his “reckless decision to close the GRAIL transaction” in the middle of regulatory scrutiny.

In June 2023, amid the tussle with Icahn and mounting anti-trust investigations, deSouza stepped down as Illumina’s CEO. He was followed by Chief Technology Officer Alex Aravanis and Chief Medical Officer Phil Febbo, the company announced Thursday in its second-quarter earnings report.

https://www.biospace.com/article/sec-investigating-illumina-s-multi-billion-merger-with-grail/

China Blasts Biden's Error-Riddled "Ticking Time Bomb" Comments

 China has hit back at President Biden's Thursday remarks which called China's economic problems a "ticking time bomb"—wherein he also referenced "bad folks" among the country's Communist Party leaders.

The president took several digs, also assessing that the world’s second-largest economy after the US is "in trouble" for its slowing growth and that it has the "highest unemployment rate going."

"China is a ticking time bomb in many cases," Biden said. "They’ve got some problems."

"That’s not good because when bad folks have problems, they do bad things," he said at the fundraising event in Park City, Utah. At one point he mocked Xi's Belt and Road Initiative as in actuality "debt and noose" due to the huge loans developing countries are on the hook for as part of the Chinese investment program.

China’s official Xinhua News Agency has seized on Biden's sharp words, responding that Biden is deploying the "old trick" of picking a fight with Beijing to distract as the administration's domestic problems continue piling up.

Xinhua sought to emphasize that "China’s economy has withstood pressure and made a rare recovery overall, with improvements in major indicators China has sufficient options in its macro policy toolbox, and the government is still formulating a series of more targeted and powerful policies for economic development in the next half of the year" - as presented in Bloomberg.

The state publication then blasted the "selective blindness" of China’s development on display by the US administration, which aims at "undermining confidence" in China by spreading negative sentiment.

Not helping the optics for Biden was the presence of several major, glaring factual errors peppering the speech, as Bloomberg points out: 

"China was growing at 8% a year to maintain growth, now close to 2% a year,” he told donors in Park City, Utah, misstating China’s rate of expansion. “It’s in a position where the number of people who are of retirement age is larger than the number of people of working age,” he added, a statement that was not only incorrect but also off by hundreds of millions of people. 

China is unlikely to be baited given the presence of "several major inaccuracies" in the speech - Bloomberg further observed.

Speaking of Biden's problems at home, Biden's provocative new comments aimed at Beijing had come the day after Republicans on the House Oversight Committee revealed over $20 million in payments were allegedly sent to the Biden family and their associates while Joe Biden was vice president, by foreign actors from places like Russia, Ukraine and Kazakhstan.

"During Joe Biden’s vice presidency, Hunter Biden sold him as ‘the brand’ to reap millions from oligarchs in Kazakhstan, Russia, and Ukraine. It appears no real services were provided other than access to the Biden network, including Joe Biden himself. And Hunter Biden seems to have delivered," said committee chairman James Comer (R-KY). "It’s clear Joe Biden knew about his son’s business dealings and allowed himself to be ‘the brand’ sold to enrich the Biden family while he was Vice President of the United States." It seems this growing scandal ahead of next year's presidential election is exactly what Xinhua has in mind when it comes to the reference of domestic problems piling up for Biden.

https://www.zerohedge.com/political/china-blasts-bidens-ticking-time-bomb-comments-deflection-problems-home

Zelensky Fires All Heads of Ukraine's Military Recruitment Amid Bribery Probe

 It's long been clear that Ukraine's armed forces have undergone some significant recruitment problems amid generally low morale as throughout the summer the counteroffensive has stalled and appears failing. There's also a grim emerging consensus that Ukraine is suffering staggering losses. Even just before the counteroffensive's start, The Washington Post ran headlines such as Ukraine short of skilled troops and munitions as losses, pessimism grow.

Related this are all of the recent videos of young Ukrainian men being conscripted across the country which have widely circulated. Those who are fearful of being sent to the front are often actively engaging in evasive and, in some instances, illegal tactics to avoid such a fate. Some with money can pay off military recruitment officers, perhaps.

This week, even one of Kiev's most ardent supporters and NATO backers - Poland, has said the counteroffensive is likely to fail. Polish President Andrzej Duda said in a fresh Washington Post interview, "Does Ukraine have enough weapons to change the balance of the war and get the upper hand?" And he answered his rhetorical with - "Probably, no."

"We know this by the fact that they’re not currently able to carry out a very decisive counteroffensive against the Russian military," Duda conceded. "To make a long story short, they need more assistance." And now on the battlefield, the Kharkiv area is being evacuated of civilians amid Russian advances.

A new announcement by President Volodymyr Zelensky on Friday has further confirmed this pessimistic view of Kiev's prospects, as the government has fired all heads of military recruitment on concerns of rampant corruption. Zelensky has dismissed all heads of Ukraine's regional military committees as authorities conduct a sweeping probe into bribery allegations. 

Zelensky made the announcement in a video post to official social media accounts: 

The president posted a video and text statement regarding the mass removal of local military officials on his official Telegram channel on Friday. The announcement comes amid a national investigation into military commissariats that has already produced 112 criminal cases against local commissars.

"This system should be run by people who know exactly what war is and why cynicism and bribery during war is treason," Zelensky said, shortly after holding a special meeting of the National Security and Defense Council.

Recruiters have apparently been paid handsomely by those of means to look the other way as they avoid conscription—something which we should note is a problem as old as war itself.  

Zelensky continued: "Instead, soldiers who have passed [through] the front or who cannot be in the trenches because they have lost their health, lost their limbs, but have preserved their dignity and do not have cynicism, are the ones who can be entrusted."

Young men afraid to leave their homes...

Ukraine has not issued an official casualty count to date, with the figure long being subject of intense speculation. The Wall Street Journal said in a report this month that "between 20,000 and 50,000 Ukrainians who have lost one or more limbs since the start of the war, according to previously undisclosed estimates by prosthetics firms, doctors and charities." The WSJ says this is beginning to rival WWI figures.

Aside from desperately needing more manpower, also at a time the phenomenon of Western mercenaries flocking to Ukraine is a thing of the past, Kiev is also likely concerned with the prior optics of the brutal mobilization by Ukrainian military recruitment officers. As the Hungarian newspaper Magyar Nemzet recently reported, "Many conscripted men are taken straight off the street by uniformed men." The paper gave the following example of such: "Most recently in Subcarpathia, a surveillance camera recorded the overreach of the authorities as a man trying to go to a store was kidnapped from his bicycle in broad daylight."

https://www.zerohedge.com/geopolitical/zelensky-fires-all-heads-ukraines-military-recruitment-over-bribery-probe

'Why have frozen fruit, veg prices soared almost 12% — but not fresh produce prices?'

 Drought, floods, labor shortages and the war in Ukraine are all playing a role, experts said

Food prices rose 0.2% on the month in July after remaining unchanged in June, and rose 4.9% on the year, while food at home rose 3.6% on the year last month, government data released Thursday showed. Fresh fruit and vegetable prices rose just 1.2% year-over-year in July.

However, there were some big -- even alarming -- outliers: Frozen fruit and vegetables prices increased by 11.8% in July over last year, frozen vegetable prices rose 17.1%, and frozen non-carbonated juices and drinks prices rose 16.3%.

Those price rises are at odds with overall inflation figures. U.S. consumer prices rose to 3.2% in July from to 3% in the prior month, the Bureau of Labor Statistics said this week. It was the first increase in 13 months. Prices ticked up 0.2% in July over the prior month.

Why have the prices of frozen fruit vegetables shot up, while fresh fruit and vegetables have increased so little over the past 12 months?

Climate change and extreme weather conditions -- from heavy rainfall to drought -- particularly in California -- have led to big problems for farmers. This is compounded by existing supply-chain issues related to the war in Ukraine, and an ongoing increase in the cost of labor, experts said.

As a result, a large portion of the fruit and vegetables on the market were shipped to the fresh food market -- leading to a shortage of ingredients for frozen vegetables, said Brad Rubin, sector manager at Wells Fargo Agri-Food Institute. "Because of the late crop, lots of produce is being pushed to the fresh market to keep up with demand," he said.

California weather

California has experienced some drastic weather conditions over the last 12 months. Some 78 trillion gallons of water fell in California during winter 2022 and early spring 2023, according to data from the National Weather Service, which delayed planting season. And that was followed by a months-long drought in the region.

What happens in California is felt by consumers across the country.

"California produces nearly half of U.S.-grown fruits, nuts and vegetables," according to estimates from the Sciences College Of Agriculture, Food & Environmental Sciences at California Polytechnic State University in San Luis Obispo, Calif. "California is the only state in the U.S. to export the following commodities: almonds, artichokes, dates, dried plums, figs, garlic, kiwifruit, olives, pistachios, raisins and walnuts," it says.

The subsequent price rises hit ingredients like strawberries and raspberries especially hard, Rubin added. Inventories for frozen berries are "near five-year lows" after winter storms in Watsonville, Calif. flooded agricultural fields, and damaged and delayed the strawberry crop. Most of the strawberries in the U.S. are also grown in California.

Labor costs

Another problem: Frozen fruit and vegetables have a longer supply chain than fresh produce, which can make them more vulnerable to disruptions in inventory, experts say. Rising energy prices are also pushing up the cost of cold storage.

Adding to their issues: Farmers are dealing with increased labor costs and fewer migrant workers, partly due to changes in government policies and the closure of borders during the COVID-19 pandemic, according to a February 2023 report from the Federal Reserve Bank of San Francisco in February

"Immigration has traditionally provided an important contribution to the U.S. labor force," the report said. "The flow of immigrants into the United States began to slow in 2017 due to various government policies, then declined further due to border closures in 2020--21 associated with the COVID-19 pandemic. This decline in immigration has had a notable effect on the share of immigrants in the U.S. labor force."

Russia's invasion of the Ukraine also continues to affect agricultural production in the U.S., said Curt Covington, senior director of institutional business at AgAmerica Lending, a financial-services company providing agricultural loans. Because the war disrupted supplies of commodities like wheat and corn -- also pushing up prices for those goods -- farmers have been prioritizing planting those crops over vegetables.

"These escalating frozen-vegetable prices present a challenge for farmers as they grapple with increased production costs and labor pressures," Covington said, and that presents a long-term challenge for farmers, "potentially impacting their profitability."

All of these factors -- from international supply chains to extreme weather conditions -- will impact the price tags in freezers in America's supermarkets. Ultimately, experts said, consumers end up paying the price.

https://www.morningstar.com/news/marketwatch/20230811386/why-have-frozen-fruit-and-vegetable-prices-soared-by-almost-12-while-fresh-produce-costs-have-not

Garland elevates Delaware prosecutor David Weiss to special counsel in Hunter Biden probe

 Attorney General Merrick Garland announced Friday that Delaware US Attorney David Weiss would be given special counsel authority in the ongoing Hunter Biden investigation — as prosecutors said negotiations with the first son about a potential plea agreement had broken down.

In a brief statement at the Justice Department, Garland said Weiss had asked for special counsel authority three days earlier. The AG said he had agreed due to “the extraordinary circumstances relating to this matter.”

Meanwhile, in a filing with Wilmington US District Court Friday, two of Weiss’ prosecutors said talks with Hunter’s legal team about a potential guilty plea to federal tax misdemeanors and a felony weapons charge were “at an impasse.”

“The Government now believes that the case will not resolve short of a trial,” adding Assistant US Attorney Leo Wise.

Garland’s announcement came 10 months and four days after Weiss allegedly told officials from the FBI and IRS that he lacked authority to charge the first son, now 53, outside of Delaware.

Garland took no questions following his statement.

https://nypost.com/2023/08/11/merrick-garland-elevates-delaware-prosecutor-david-weiss-to-special-counsel-in-hunter-biden-probe/

As Hearing Begins, Evidence Of Bias Mounts Against DC Judge

 Update (1030ET): With regard to bias we thought the following comments from the hearing this morning may also elucidate some of Judge Chutkan's views...

"Mr Trump, like every American, has a First Amendment right to free speech. But that right is not absolute."

"A defendant’s free speech is subject to conditions," Chutkan adds, noting that such speech must "yield to the orderly administration of justice."

We don't think that's how it works judge...

Trump's lawyer Lauro says Trump should retain the right to respond to his political opponents, such as Pence.

Chutkan sharply rebuked:

"The defendant's desire to... respond to political opponents has to yield!"

To which Lauro responds that he worries the judge is setting a 'contempt trap'.

As Techno Fog detailed earlier via The Reactionary substack (subscribe here), this past week, the Government submitted a proposed protective order in its DC case against Donald Trump. It was broad, proposing the Court restrict Trump’s ability to communicate any exculpatory evidence to the broader public during the 2024 election: all materials provided by the Government could only be used by Trump and his attorneys “solely in connection with the defense of this case, and for no other purpose.”

That request was made to Obama-nominated District of Columbia Federal Judge Tanya Chutkan, who oversees Trump’s DC case. For context, that case undoubtedly involves hundreds of witnesses, terabytes of information, and millions of pages of documents. Typically, Judge Chutkan would allow for at least one week for Trump’s team to file a response. (the Court’s local rules allow 14 days to respond to motions). How do we know that? Because we went through Judge Chutkan’s other cases where a protective order was disputed - more on that below.

Curiously, however, Judge Chutkan decided to demand an expedited briefing and hearing schedule - against the reasonable requests of Trump’s attorneys, who requested just a little bit extra time. Here’s the timeline:

August 4, 2023: Special Counsel Smith files his motion for protective order.

August 5, 2023: Trump is ordered to file his response to the motion for protective order by 5:00 on Monday, August 7, 2023.

August 5, 2023: Trump’s lawyers file a motion to revise the briefing schedule on the government’s motion for protective order, seeking only three extra days – a deadline of August 10. This is under the timeframe discussed in the Court’s local rules, which allow for 14 days to respond to motions.)

August 5, 2023: Judge Chutkan denies Trump’s requested extension.

August 7, 2023: Trump’s lawyers file their response to the government’s proposed protective order. Judge Chutkan demands dates and times for a hearing on the protective order, which she orders to take place by August 11, 2023.

August 8, 2023: Trump and the Special Counsel file their joint notice. Special Counsel says it is available “at any time on August 9, 10, or 11.” Trump requests a setting on Monday or Tuesday (August 14 or 15) where both of Trump’s lawyers can be present. A very reasonable request.

August 8, 2023: Judge Chutkan denies Trump’s request and sets the protective order hearing for August 11, 2023 - exactly one week after the protective order was filed by Special Counsel Smith.

That’s a quick timeline in any case. The hearing is set a week after Special Counsel Smith filed the motion for protective order. Judge Chutkan only gave Trump’s lawyers two days to respond to that motion – with one of those days being a Sunday. But in a case where the next election might be at stake, it’s unfairly quick, a timeline that Trump’s lawyers observed were “inconsistent with his due process rights.”

Judge Chutkan’s history suggests that she is specifically targeting Trump, treating him worse than other defendants who have faced disputes over protective orders. Let me show you.

Back in 2018, the US Government prosecuted Maria Butina for acting as an agent of Russia without notifying the Attorney General (and for conspiracy to act as a Russian agent). Butina had a much less complicated case as opposed to Trump’s.

Judge Chutkan presided over Butina’s case.

The protective order deadlines and hearing dates were much less abbreviated – and much more fair to the defendant.

https://www.zerohedge.com/political/trumps-dc-judge-evidence-bias

Atreca Corporate Restructuring After Q2

 Suspending development of ATRC-101

Cost-saving measures include 40% workforce reduction

Focusing on advancing earlier stage ADC candidates and preserving discovery capabilities

https://finance.yahoo.com/news/atreca-reports-second-quarter-2023-200500168.html