Amazon granted request to temporarily block work on $10B JEDI deal awarded to Microsoft
Catch up on the top industries and stocks that were impacted, or were predicted to be impacted, by the comments, actions and policies of President Donald Trump and his administration with this weekly recap compiled by The Fly:
1. TEMPORARY JEDI WORK HALT: A judge has ordered a temporary block on the JEDI cloud contract in response to a suit filed by Amazon (AMZN), according to CNBC's Annie Palmer. Amazon, which is protesting the Pentagon's decision to award the contract to Microsoft (MSFT), alleges that it was subject to "unmistakable bias" and has since asked the court for permission to depose President Donald Trump, Defense Secretary Mark Esper and former Defense Secretary James Mattis. CNBC noted that Amazon Web Services has been instructed to pay $42M for any "costs and damages" that could be incurred in the event that the "injunction was issued wrongfully."
2. CAR TECH LOAN PROGRAM: President Trump's 2021 budget calls for slashing the Energy Department's loan-guarantee program for advanced car technology, Electrek's Bradley Berman reported. In that program, Tesla (TSLA) in 2010 received a $465M loan that helped the car maker build the Model S, and the loan was repaid in 2013, Berman noted.
Lordstown Motors was weighing a $200M loan from the same program, to develop an all-electric delivery vehicle and pickup, and while the company has not yet applied for the loan, Congress members from both sides supported the company's application, the author noted. After Trump criticized GM (GM) for closing its Lordstown, Ohio plant, he later cheered the sale to Lordstown Motors, as it and associated company Workhorse (WKHS) received roughly 5,000 pre-orders for its extended-range electric truck, the author said.
Other publicly traded automakers include Daimler AG (DDAIF), Fiat Chrysler (FCAU), Ford (F), Honda (HMC), Nissan (NSANY), Toyota (TM) and Volkswagen (VWAGY)
3. CHINA'S 5G OFFENSIVE: Cisco (CSCO) CEO Chuck Robbins said he disagrees with a Trump administration proposal to take an ownership stake in Nokia (NOK) and Ericsson (ERIC) to counter China's 5G offensive, Business Insider's Benjamin Pimental reported.
Meanwhile, U.S. officials said that Huawei Technologies can covertly access mobile-phone networks around the world through "back doors" designed for use by law enforcement, as Washington tries to persuade allies to exclude the Chinese company from their networks, the Wall Street Journal's Bojan Pancevski wrote. Intelligence shows Huawei has had this secret capability for more than a decade, U.S. officials said, but Huawei rejects the allegations.
"Week in Review" is The Fly's weekly recap of its recurring series of "Trump Effect" exclusive stories.