Morning Agenda: Blocking of Lattice Sale Weighs on China Deals

• Lattice doesn’t currently sell equipment to the American military. But it has in the past, meaning that some of its chips may still be in use, The Financial Times reports.

• Most of Lattice’s sales come from selling components for consumer devices like smartphones, as FT Lex points out.

From the Trump administration’s statement about the move:

The national security risk posed by the transaction relates to, among other things, the potential transfer of intellectual property to the foreign acquirer, the Chinese government’s role in supporting this transaction, the importance of semiconductor supply chain integrity to the U.S. government, and the use of Lattice products by the U.S. government.

The decision raised the prospect that other Chinese deals being reviewed by the Committee on Foreign Investment in the United States, known as Cfius, might run into trouble.

Still under review:

• The purchase of MoneyGram International by Ant Financial, an affiliate of the Alibaba Group

• HNA’s agreement to buy a stake in SkyBridge Capital, the fund management firm founded by Anthony Scaramucci, the former White House communications director

• A $2.7 billion deal for China Oceanwide Holdings Group to buy Genworth Financial, an insurer based in Richmond, Va. Genworth could face significant financial pressure if its acquisition falls through, because it has more than $2.8 billion in debt due in the next four years.

The Latest on DACA and Taxes

Democrats think they have a deal on DACA. Yet it’s not clear that Mr. Trump thinks so.

Senator Chuck Schumer of New York and Representative Nancy Pelosi of California issued a joint statement Wednesday night declaring that they had agreed with the president to quickly extend protections for young undocumented immigrants and to finalize a border security package that would not include Mr. Trump’s proposed wall.

But the White House statement was far more muted. It mentioned that DACA was one of several issues discussed, along with tax overhauls and infrastructure.

Sarah Huckabee Sanders, the White House press secretary, followed up on Twitter:

Mr. Schumer’s communications director, Matt House, fired back.

Mr. Trump has sent conflicting signals about his intentions on DACA. He had drifted back toward preserving it after days of deeply negative news coverage of his decision to end it.

The president and his team are redoubling efforts on an overhaul of the tax code. But The Times points out that the White House is doing so with a weakened team: a chief economic adviser who has been openly disparaged by the president and a Treasury secretary whose advice has gone unheeded.

And the White House is still fighting with Republicans in Congress over the details of the evolving plan.

The big points of contention:

• The corporate tax rate. Mr. Trump wants a rate of 15 percent, while congressional leaders think it should be in the low-to-mid 20s.

• Which small businesses and partnerships would qualify for a new, low business tax rate

• Whether tax cuts in the package should be paid for by closing loopholes

• Whether fees charged by hedge fund and private equity managers would continue to be taxed at a lower rate.

But Mr. Trump said that he’s ready to make a deal. He emphasized at a bipartisan gathering of House members that he wanted a tax bill that would benefit the middle class.

On tax rates for the wealthy, he said, “If they have to go higher, they’ll go higher.”

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Mr. Mnuchin has drawn criticism for asking whether he could use a military plane for his European honeymoon last month.

He is already under scrutiny for taking a government plane to Kentucky before viewing the Aug. 21 solar eclipse. Critics accused him of seeking to spend taxpayer funds on personal travel.

Shkreli Goes to Jail

Martin Shkreli is still waiting to be sentenced for his fraud conviction. But he has been sent to jail after a federal judge revoked his bail because he put a bounty on Hillary Clinton’s hair.

As Bloomberg notes, “Martin Shkreli’s big mouth landed him in jail even before his fraud conviction did.”

While awaiting his sentence, the former pharmaceutical executive — who was free on a $5 million bail — posted on Facebook that he would offer cash to anyone who could “grab a hair” from Mrs. Clinton during her book tour.

“This is a solicitation to assault in exchange for money that is not protected by the first amendment,” Judge Kiyo A. Matsumoto said.

Mr. Shkreli said the post was intended as satirical. But prosecutors pointed out that he had made a sexual threat toward a female journalist on Twitter just before his conviction and that he had engaged in “an escalating pattern of threats and harassment.”

Executives May Not Pay for Failings at Equifax

Executives at Equifax might not take a financial hit for the failures that allowed thieves to steal sensitive data from millions of customers, according to The Times’s Gretchen Morgenson.

Over the last three years, Equifax has used a performance measure that excludes the costs of legal settlements made by the company to determine its top executives’ incentive compensation.

Asked whether the board would stop excluding legal settlement costs from these calculations, a spokeswoman said, “The board is actively engaged in a comprehensive review of every aspect of this cybersecurity incident.”

That said, the House Energy and Commerce Committee has formally requested that the company’s chief executive testify.

Bodega’s Very Bad Day

When Fast Company profiled Bodega, a start-up by two former Google employees that promised to replace corner stores, the backlash was swift.

People took issue with the idea of disrupting mom-and-pop stores and criticized the name as being culturally insensitive. (They also bemoaned any attempt to displace bodega cats, the felines who are often fixtures of the corner stores.)

But the company is also just a bad business, according to Eater’s Helen Rosner.

The start-up — which has already drawn $2.5 million in investments from First Round Capital, Forerunner Ventures, Homebrew Ventures and executives at Facebook and Google — is essentially a type of vending machine, she asserted.

Vending business machines live or die by logistics. At the scale that the founders are talking, the company could be dealing with 10 million items at a time, which could erase any of the economy of scale that helps vending machine businesses survive.

By Wednesday afternoon, one of Bodega’s co-founders published a blog post apologizing for appearing to try to put mom-and-pop shops out of business.

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