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Monday, September 9, 2024

Be Careful - Heat Warnings Continue Today!




Eumir Deodato & Al Jarreau "Double Face"

SDG&E reporting 13,000 outages because of heat wave

By GARY ROBBINS and ROB NIKOLEWSKI | The San Diego Union-Tribune


San Diego Gas & Electric reported power outages affecting about 13,000 customers across the region on Sunday, many which appear to have been caused by the heat wave, now in its fifth day. The utility says it is dealing with problems related to the weather.


At 3:30 p.m. Sunday, an SDG&E spokesman said 10,519 customers in the Spring Valley, La Presa and Rancho San Diego area were without electricity due to an outage at the company’s Jamacha substation located near Highway 94. Crews are heading to the scene and hope to restore power by early evening, the spokesman said.


The company’s outage map late Sunday afternoon showed other scattered outages in areas that included neighborhoods in San Diego such as University Heights, North Park and Normal Heights.


Escondido, which has been experiencing some of the highest temperatures during the heat wave, and Vista are also reporting outages.


Sunday’s heat again soared above 100 degrees in more than a dozen communities, mostly east of Interstate 15. But problems also have developed at and near the coast. Forecasters say that overnight winds arriving from the east flowed to beach cities, causing temperatures to rise rapidly early Sunday. San Diego International Airport hit 94 degrees before noon. That’s 16 degrees above normal.


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Excessive heat warnings continue today and into Tuesday


Cooler Temperature Expected in San Diego County This Week


What Caused the Chemical Smell in Oceanside & Carlsbad on Friday?


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California governor vetoes bill to help undocumented immigrants buy homes


Sept 6 (Reuters) - California's Democratic Governor Gavin Newsom vetoed a bill on Friday that would have allowed undocumented immigrants access to state funds in helping buy a home, citing "finite funding."


"Given the finite funding available for (California Housing Finance Agency) programs, expanding program eligibility must be carefully considered within the broader context of the annual state budget to ensure we manage our resources effectively," Newsom said in a statement. "For this reason, I am unable to sign this bill."


The state legislature approved the bill and sent it to the governor's desk last week.


The bill was authored by California lawmaker Joaquin Arambula, a Democrat representing Fresno.


"AB 1840 is about providing an opportunity to hard-working, responsible people who dream of owning a home and passing that legacy to their children," Arambula has said about the bill. "And, that includes undocumented immigrants who have lived here for decades and pay their taxes."


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Google's antitrust trial over online advertising set to begin


Sept 9 (Reuters) - Alphabet's (GOOGL) Google will face U.S. antitrust prosecutors on Monday in Alexandria, Va., where the Justice Department will seek to show the company stifled competition in online advertising technology, in the search giant's second recent showdown with the Justice Department.


Prosecutors say Google has largely dominated the technological infrastructure that funds the flow of news and information on websites through more than 150,000 online ad sales every second.


The case is an important one for efforts by U.S. antitrust enforcers to challenge alleged Big Tech monopolies, which have spanned the administrations of both Donald Trump and Joe Biden.


Prosecutors say Google engaged in a complex scheme to dominate website advertising tools, through acquisitions, restrictions on how customers can use its tools and alleged manipulation of ad auctions.


Google denies the allegations, saying they misconstrue lawful efforts to develop its technology and serve its own customers. Prosecutors overlook how the digital advertising market has shifted to apps and connected TV, where Google faces stiff competition, the company has said.


If U.S. District Judge Leonie Brinkema finds that Google broke the law, she would later consider prosecutors' request to make Google sell off, at minimum, Google Ad Manager, a platform that includes Google's publisher ad server and its ad exchange.


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Apple's iPhone 16 will put AI features in focus


SAN FRANCISCO, Sept 9 (Reuters) - Apple (AAPL) on Monday is set to unveil its iPhone 16 lineup, focusing on how its flagship device's features have been infused with artificial intelligence, rather than its usual emphasis on hardware upgrades.


The event at the tech giant's Apple Park headquarters at 10 a.m. PDT (1700 GMT) follows its developer conference in June during which the company unveiled Apple Intelligence, its take on generative AI that can conjure text, images and other content on command.


It had also showed off an improved version of voice assistant Siri, featuring an integration with ChatGPT, the chatbot developed by Microsoft-backed (MSFT)

OpenAI.


The refresh comes as iPhones face stiff competition from Huawei (HWT.UL) in China, where consumers are hankering for more AI features and are willing to pay for them. Huawei itself has scheduled its own product announcement mere hours after Apple's event.


Apple Intelligence must be approved by Beijing in order to be released in the Chinese market. In July, OpenAI blocked access to ChatGPT in China, a move that could impact the chatbot's integration into Siri.


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Munich Re says damage inflation well above CPI rate


FRANKFURT, Sept 8 (Reuters) - Munich Re said on Sunday that it will push for higher reinsurance rates to take into account the fact that costs for insured damages are rising much faster than overall consumer prices.


"Damage inflation is significantly higher (than overall inflation) in many reinsurance segments," management board member Thomas Blunck said in a statement on the 'Rendez-Vous de Septembre' industry meeting in Monte Carlo.


He cited higher U.S. legal claims for damages, costly new medical treatments as well as shortages in construction materials and qualified workers, among other factors driving inflation of insured damages.


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Navy officer demoted after sneaking a satellite dish onto a warship to get the internet


By NBC News San Diego


A U.S. Navy chief who wanted the internet so she and other enlisted officers could scroll social media, check sports scores and watch movies while deployed had an unauthorized Starlink satellite dish installed on a warship and lied to her commanding officer to keep it secret, according to investigators. 


Internet access is restricted while a ship is underway to maintain bandwidth for military operations and to protect against cybersecurity threats.

 

The Navy quietly relieved Grisel Marrero, a command senior chief of the littoral combat ship USS Manchester, in August or September 2023, and released information on parts of the investigation this week. 


The Navy Times was first to report on the details. 


Marrero, a former information systems technician, and senior leaders paid $2,800 for the Starlink High Performance Kit and had it installed in April 2023 prior to deployment of the San Diego-based Manchester, according to the investigation.


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Wynn Las Vegas forfeits record $130M in non-prosecution deal with San Diego prosecutors


By ALEX RIGGINS | The San Diego Union-Tribune


The casino Wynn Las Vegas agreed Friday to forfeit a record $130.1 million to settle criminal allegations brought by federal prosecutors in San Diego that the casino conspired with unlicensed money transmitting businesses around the globe to circumvent U.S. laws and financial regulations.


“Today’s settlement is believed to be the largest forfeiture by a casino based on admissions of criminal wrongdoing,” the U.S. Attorney’s Office in San Diego said in a statement announcing a non-prosecution agreement with the casino.


Federal prosecutors in San Diego handled the case because a key bank account controlled by Wynn Las Vegas for one of the alleged criminal schemes was located here. Foreign gamblers and debtors, many of them from Latin America, placed funds into the local account through unlicensed money transmitting businesses. Those funds were then transferred to the Wynn’s cage, where casino employees, with the knowledge of their supervisors, eventually moved the funds into the gamblers’ individual accounts at the casino.


“The convoluted transactions enabled foreign gamblers at (Wynn Las Vegas) to evade foreign and U.S. laws governing monetary transfer and reporting,” the U.S. Attorney’s Office said in its statement.


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Warehouse Rules in Last-Minute Assembly Bill Divide Inland Empire


by Deborah Brennan • CalMatters & Times of San Diego


California is poised to set new rules for warehouse locations and truck routes with a last-minute bill to curtail air pollution and traffic from distribution centers. 


But local government groups oppose the legislation, and business groups warn that it would place onerous requirements on warehouse developments and cities, threatening trade and jobs. Gov. Gavin Newsom has until the end of the month to sign or veto the bill.


Assembly Bill 98 passed in the final hours before the Legislature adjourned Saturday, after lawmakers swapped out language from an agricultural bill for the new warehouse restrictions. 


The bill would tighten building standards for new warehouses; ban heavy-duty diesel truck traffic next to sensitive sites including homes, schools, parks and nursing homes; and require local governments to update truck routes to avoid residential streets, said Assemblymember Eloise Gómez Reyes, a San Bernardino Democrat who co-authored the bill.


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MarketInk: Latino Group Criticizes Green Energy in Digital Advertising Campaign


by Rick Griffin, Times of San Diego


A Latino activist group has launched a digital advertising campaign critical of California’s green energy push for electric vehicles and bans on gas-powered landscape equipment, including leaf blowers and lawn mowers.


The group, called Levanta Tu Voz (“raise your voice”), is claiming the state’s energy mandates are hurting Latino small-business owners, day laborers and agriculture and manufacturing workers.


A Levanta Tu Voz spokesman told Times of San Diego that its campaign, titled “Sustainability Matters,” features ads appearing on YouTube, Facebook, Instagram, broadcast television, streaming TV and radio. A dollar amount for media expenditures was not disclosed. The campaign began Sept. 3 and will conclude Dec. 31, the spokesperson said.


A statement from Levanta Tu Voz, which is affiliated with the Western States Petroleum Association, said California’s ambitious energy mandates addressing climate change and the state’s transition to electrification, are unfairly targeting Latinos.


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Two-Tenant El Cajon Shopping Center Sells for $1.5 Million


By Times of San Diego


A 2,870-square-foot retail property in El Cajon has been sold for $1.5 million, according to a real estate brokerage.


“With the steady growth in consumer spending and the resilience of brick-and-mortar retail, demand for multi-tenant retail investment properties continues to surge as investors seek stable, long-term returns in today’s market.,” said Ross Sanchez, senior associate for the Totah Group in Marcus & Millichap’s San Diego Downtown office.

 

Two tenants occupy the site, Final Touch Nails, Hair & Spa and Subway, which has operated at the location since 1985 under the ownership of one of the nation’s largest Subway franchisees. 


Sanchez and Nick Totah, senior vice president, represented the seller, Two Squared, LLC.


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CALPERS Bought Lucid Stock, and Sold Nvidia, IBM, and Walmart


By Ed Lin, Barron's


The largest U.S. public pension by assets recently made major changes in some of its biggest investments.


In the second quarter, California Public Employees’ Retirement System slashed stakes in artificial-intelligence chip maker Nvidia, software firm International Business Machines, and retailer Walmart, while buying more shares of electric-vehicle maker LucidGroup. Calpers, as the pension is known, disclosed the stock trades, among others, in a form it filed with the Securities and Exchange Commission.


In response to a request for comment on the investment changes, the pension emailed the statement, “Calpers’ global public equities are largely managed using quantitative and systematic investment approaches and, as such, we do not comment on our individual holdings or trades or discuss investment strategy.”


The pension has assets of more than $520 billion, making it the largest public pension in the country.


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San Diego Mourns the Loss of Procopio Managing Partner John D. Alessio


The Alessio family and everyone with Procopio, Cory, Hargreaves & Savitch LLP mourns the loss of Procopio Managing Partner John D. Alessio. John passed on September 3, 2024, at the age of 55 after a five-year journey with cancer.


First elected Procopio Managing Partner in the fall of 2017 and reelected twice, John guided the law firm through an unprecedented period of growth and success, navigating the firm through a global pandemic and a rapidly evolving legal marketplace. Under his leadership Procopio has grown both in revenue and geography, opening offices in Orange County, Las Vegas and Washington, D.C., for a total of seven locations. During his leadership tenure Procopio secured numerous recognitions from Chambers and Partners and other peer-based awards programs, with its practice recognitions from Best Lawyers-Best Law Firms tripling.


A fourth-generation San Diegan, John demonstrated his commitment to community in many ways. Active in professional associations including Entrepreneurs Organization and PEERS San Diego, John also dedicated time to serving the broader local cross-border community. Most recently he served as a Director for the World Design Capital San Diego-Tijuana. He was also a founder of Red Autismo, a nonprofit in Los Cabos providing specialized attention to children with autism. For the last seven years John had been recognized by the San Diego Business Journal on its SD 500 list of Most Influential Business Leaders in San Diego, and in 2020 the magazine named him to its SD 50 list of Leaders Making a Difference.


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Workers vs. The Robots: Minimum Wage and California’s Fast-Food Offering


By Douglas Page, San Diego Metro Magazine


California’s new minimum wage for fast-food restaurant workers – upped April 1st to $20 an hour – impacts the Golden State’s most vulnerable workers, leaving effects that could last well beyond just a missing paycheck.


“The kids are the canaries in the coal mine,” Los Angeles-based economist Christopher Thornberg told SD METRO, referring to teenagers seeking or working summer jobs. “They’re the first to lose their jobs and not have the opportunities in part, because not only are they suffering the impact of reduced labor demand at these higher costs, but of course, equivalently, they’re replaced by adults.


“At $20 an hour, you want an adult,” he continued, because they’re not leaving to return to school or seek another employer that’s more fun, like Disneyland.


Thornberg runs Beacon Economics, a consultancy.


In a 41-page report, he and another economist, Niree Kodaverdian, write that “the increase in unemployment is almost exclusively a young person phenomenon.


“Of the nearly 130,000 newly unemployed people in the last two years, over 90% were under the age of 35. And within this age group, the hardest hit subgroup has been teenagers,” they wrote in their report, released in June.


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Boeing says it has a deal to avoid a strike by more than 30,000 machinists


By The Associated Press


Boeing and its largest union said Sunday they reached agreement on a new contract that, if ratified, will avoid a strike that threatened to shut down aircraft production by the end of the coming week.


Boeing said 33,000 workers represented by the International Association of Machinists and Aerospace Workers would get pay raises of 25% over the four-year contract, with average wages rising 33% due to seniority step increases. That is less than the 40% the union had demanded during negotiations. 


But the company agreed with a key union demand to build its next plane in Washington state, presumably by union members.


Workers also would get $3,000 lump sum payments and a lower share of health care costs, Boeing said. The company would make new 401(k) contributions of up to $4,160 per employee, but the union would not achieve its demand to restore a defined-benefit pension plan that was eliminated in 2014.


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Jamba ventures into blended coffee; Urban Plates adds seasonal, wallet-friendly surf and turf combo


By ROXANA POPESCU | The San Diego Union-Tribune


Back in the ’90s, if you wanted a trendy blended caffeine drink, you went to Starbucks. If you wanted a trendy blended smoothie, you went to Jamba Juice.


These days, Starbucks sells smoothies. And starting next week, Jamba — as Jamba Juice has been named since 2019 — will start selling two blended coffee-based drinks.


Jamba’s Sunrise Smoothies are made with coffee and a choice of milk (2 percent dairy or three non-dairy milks), plus optional boosts (like soy protein, zinc and whey protein).


The company describes one drink, Coffee Dream Machine, “as a creamy blended frozen coffee delivering sweet vanilla flavors to boost your day.” The second, Buzzin’ Mocha Moo’d, has “a jolt of coffee and rich chocolate blended to creamy, sweet perfection.”


To launch the drinks, Jamba, which has 36 stores in the San Diego area, is hosting a pop-up from 5:30 to 10 a.m. Saturday at Mission Point Park, at 2600 Bayside Lane, with yoga and blended coffee drinks. The company will hold similar events in San Francisco and Los Angeles.


Five years ago, Jamba dropped the “juice” from its name, as a way to help customers understand it sells plant-based food and drinks, not just juices and sweet smoothies.


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Midway Rising gets another year to finalize deal for San Diego’s sports arena site


By JENNIFER VAN GROVE | The San Diego Union-Tribune


The city of San Diego has pushed back the deadline to finalize a deal with the development team selected two years ago to remake the city’s 48-acre sports arena site in the Midway District.


The parties, tied together in an exclusive negotiation agreement that was set to expire on Dec. 5, now have through Dec. 5, 2025, to negotiate a long-term ground lease and complete the environmental review of the Midway Rising project.


The Midway Rising project calls for 4,250 residential units, a 16,000-seat replacement arena and 130,000 square feet of commercial space alongside an unspecified number of acres of parks, plazas and public space.


“We have agreed to administratively extend (the ENA) for one year, at (the development team’s) request,” Christina Bibler, who oversees the city’s real estate division, told the Union-Tribune. “There are delays on both sides in terms of going through our various processes. Ours was procurement and contracting for getting our consultant on board (to analyze the Enhanced Infrastructure Financing District). And theirs was finalizing their specific plan and going through development services for certainty as to the development footprint.”


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Minority enrollment holds steady at top U.S. law schools, early data indicates


Sept 9 (Reuters) - Early data from a handful of top U.S. law schools shows the percentage of nonwhite students enrolling this year has remained mostly unchanged following the 2023 U.S. Supreme Court ruling barring colleges and universities from considering race in admissions.


Six of the top 20 U.S. law schools—as ranked by U.S. News & World Report—have disclosed some racial diversity data on their websites or provided it directly to Reuters as of Sept. 5. Of those, five reported that the percentage of first-year students of color this fall increased or remained steady this year. One said that figure declined.


The five that reported either no change or increases in the percentage of minorities in their entering classes were the University of Virginia School of Law; the University of California at Los Angeles School of Law; Cornell Law School; Vanderbilt University Law School; and the University of Southern California Gould School of Law. Minority enrollment for first-year classes at those five law schools averaged 44%.


The University of California, Berkeley School of Law was the sole law school of the six to post a year-over-year decline—falling to 50% students of color from 57% last year. A Berkeley Law spokesperson said the California school, which has been under a state-imposed affirmative action ban since 1996, did not change its admissions process and that the makeup of its class fluctuates every year.

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Big Lots sells business to Nexus Capital as it begins bankruptcy proceedings


Sept 9 (Reuters) - U.S. discount home goods retailer Big Lots (BIG) said on Monday it has secured $707.5 million to support its operations and sell its business to private equity firm Nexus Capital, as it has initiated bankruptcy proceedings under Chapter 11.


Big Lots listed its assets and liabilities in the range of $1 billion to $10 billion, according to a filing with bankruptcy court in Delaware, which showed creditors in the range of 5,001-10,000.


Nexus will serve as a "stalking horse bidder" in a court-supervised auction process, Big Lots said, adding that the deal will close in the fourth quarter of 2024 if Nexus is deemed the winning bidder.


A stalking horse bid is used as a starting or minimally accepted offer that other interested bidders must surpass if they want to buy the asset or the company.


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Starbucks’ New CEO Made Shares Soar. Now He Has to Prove His Worth


By Daniela Sirtori, Bloomberg News


Starbucks Corp.’s incoming Chief Executive Officer Brian Niccol has spent the last few weeks visiting dozens of the company’s coffee shops. Poring over menus, store formats and the myriad options of drink preparations, the former Chipotle chief has been trying to get a handle on the world’s largest coffee chain before he officially takes the helm Monday.


Expectations are high. The company’s shares soared 18% after it named Niccol, ousting his predecessor, Laxman Narasimhan, after two consecutive quarters of sales slumps.


Now, Niccol faces problems ranging from lengthy order times and falling demand to union contract negotiations and pressure from activist investors. While Niccol was a star at Chipotle Mexican Grill Inc., some on Wall Street have cautioned that Starbucks’ global footprint and complex business make turnaround efforts much more difficult than what he faced while leading the burrito chain.


In a statement, the company said that Niccol’s understanding of branding, operations and innovation makes him “the right person to drive Starbucks forward.”


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The Bond Market Rally Rides on How Fast the Fed Cuts Rates


By Liz Capo McCormick and Michael Mackenzie, Bloomberg News


Bond traders who struggled to predict how high the Federal Reserve would raise interest rates are finding the way down just as vexing.


At TCW Group Inc., Jamie Patton, the co-head of global rates, is convinced that even the swift easing that’s now baked into financial markets doesn’t go far enough, leaving shorter-dated Treasuriesplenty of room to keep rallying. “The Fed is going to have to lower rates faster and more aggressively than what the market’s priced in,” she said. 


At JPMorgan Asset Management, Bob Michele sees it differently. He’s betting that the bond market has already run too far ahead of the Fed as the economy keeps chugging along — albeit at a slower pace. As a result, he’s favoring corporate bonds — which carry higher payouts — over Treasuries. “I don’t see anything breaking,” he said.


The divergent views are at the heart of what’s at stake for investors as the US central bank is virtually certain to start cutting interest rates for the first time since 2020 at its Sept. 18 meeting. That prospect alone has already sent bond prices surging sharply as traders seek to get ahead of the moves, creating the risk that markets will again be upended by a post-pandemic economy that’s consistently surprised the Fed and Wall Street forecasters with its resilience.


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Morning Bid: Post-payrolls foothold, new iPhones and debate


By Reuters


Wall Street futures have found their feet after Friday's exaggerated market reaction to an otherwise middling employment report - with Apple's new iPhone and Tuesday's presidential candidates' debate next up on the radar.


The August payrolls report was modestly weaker than forecast, even if a significant improvement on July. Downward revisions to prior months softened the picture a bit more.


But the report was neither strong enough to completely dispel slowdown and recession fears for next year nor was it seen to be weak enough to nudge the Federal Reserve into a jumbo 50-basis-point interest rate cut this month.


Top Fed policymakers Christopher Waller and John Williams underscored expectations that a Sept. 18 cut is coming - the former even said the easing cycle should be 'frontloaded'. But neither seemed panicked enough to suggest 50 bps was needed yet.


By the close, the S&P500 (.SPX) was down 1.7% - clocking a 4.5% loss for the week that now stands as its worst since March 2023 and underlines yet again the seasonal downdraft that typically comes with September.


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Chinese car sales fall for fifth straight month


BEIJING, Sept 9 (Reuters) - Passenger vehicle sales in China fell in August for the fifth straight month, industry data showed on Monday, though sales of all-electric and plug-in hybrid models rose, helped by subsidies for drivers trading in more polluting vehicles.


Sales fell 1.1% from the same month a year earlier to 1.92 million vehicles, data from the China Passenger Car Association (CPCA) showed. That compared with a 3.1% decline in July.


New energy vehicle (NEV) sales, however, jumped 43.2% to account for a record 53.5% of total car sales, as local EV champion BYD (002594.SZ), set a sales record and U.S. rival Tesla (TSLA) had its bestmonth of 2024.


Car exports increased 24% after a 20% rise in July.


The numbers reflected waning consumer confidence, with first-time car purchases lagging behind trade-ins, the association said last week.


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New Drug Discovery Technique May Unlock Trove of Marine Compounds


By Alex Fox | UC San Diego


Researchers from UC San Diego’s Scripps Institution of Oceanography and Skaggs School of Pharmacy and Pharmaceutical Sciences have developed a new approach to scour the oceans for novel compounds that could become the medicines and products of tomorrow.

The method, described in a paper published June 19 in Nature Communications, captures chemical compounds directly from the sea and could allow researchers to more fully tap the biochemical potential of the world’s oceans for the benefit of humanity.

Already the new technique has facilitated the discovery of several new compounds, one of which shows promising activity against cancer cells and potentially useful effects on heart muscle function.

"What's particularly exciting is that we found these novel compounds from a single deployment site," said Scripps Oceanography microbiologist Paul Jensen, a co-author of the study, which was funded by the National Institutes of Health. "This hints at the vast chemical diversity waiting to be discovered in our oceans."

This innovation comes at a crucial time when antibiotic resistant bacteria are on the rise and the discovery of new antibiotics and other medicines has slowed. By providing access to previously unexplored chemical space, the new method could expand and accelerate drug discovery efforts and lead to new treatments for various diseases. Beyond medicines and products, the approach could also be used to better understand the complex chemistry of the marine environment, including ecological interactions mediated by these compounds.

“The ocean remains a vastly untapped source for potential new medications,” said Tadeusz Molinski, co-corresponding author of the study and a chemist jointly appointed with the Skaggs School of Pharmacy and Pharmaceutical Sciences and the Department of Chemistry and Biochemistry at UC San Diego. “This new method substantially enhances our ability to identify marine-based compounds that could become life-saving therapies.”

The study describes the technique, known as small molecule in situ resin capture (SMIRC), and tests its potential for natural product discovery. The approach involves placing mesh pouches filled with small porous resin-based beads in the ocean and then retrieving the beads to see what they’ve captured. Any compounds stuck to the beads can then be tested for desirable properties. If a given compound shows promise, the researchers begin discerning its chemical structure, figuring out which microbes produce it and then culturing those microbes in the lab to harvest those and any other compounds the organisms produce.

The innovation of SMIRC is that it inverts the traditional approach to what researchers call microbial natural product discovery. The traditional method involves culturing microbes first and then trying to determine if they produce potentially therapeutic compounds in the lab—which requires significant time and effort with uncertain rewards.

This technique begins with the compounds themselves. This allows researchers to efficiently screen large numbers of compounds for useful properties before expending the effort involved in identifying which microbes produce those compounds and how those organisms can be cultured in the lab. Additionally, modern genetic analyses suggest that many microbes already well known to science have the genetic potential to produce compounds that scientists have been unable to coax them into creating in the lab. Capturing compounds directly from the organisms’ natural habitats could help avoid this bottleneck, one that has limited product discovery to what microbes can be made to produce in the lab.



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