2018-04-21 08:00:14 | Week in review: How Trump's policies moved stocksCatch up on the top industries and stocks that were impacted, or were predicted to be impacted, by the comments, actions and policies of President Trump and his administration with this weekly recap compiled by The Fly: 1. ZTE BAN: The U.S. Department of Commerce has banned U.S. companies from selling components to Chinese telecom equipment maker ZTE Corp. (ZTCOY) for seven years for violating the terms of a sanctions violation case. ZTE previously pleaded guilty of illegally shipping U.S. goods and technology to Iran. Several analysts noted that the news is bad for Acacia Communications (ACIA) and Oclaro (OCLR), which each sell to ZTE. MKM Partners analyst Michael Genovese noted that Huawei and Nokia (NOK) will gain share at ZTE's expense. He thinks the news is positive for NeoPhotonics (NPTN), which has 40% exposure to Huawei and much smaller ZTE exposure. Additionally, the analyst sees the news as neutral to positive for Lumentum (LITE), Oclaro (OCLR) and Finisar (FNSR), which have significantly more Huawei and Nokia exposure than ZTE exposure. 2. AMAZON: On Thursday, Jeff Wilke, head of Amazon's okworldwide consumer division, downplayed concerns over criticism by President Donald Trump and said he is focused largely on advancing the company's artificial intelligence and machine learning tools to improve its Echo products, Amazon Go cashierless stores and warehouse automation, according to Bloomberg. "We've been around through four presidents and leadership changes all over the world. For more than two decades, we've worked with the post office to invent and deliver for customers and business all over the U.S. profitably, creating a bunch of jobs in the process. It's been a terrific partnership, and I hope it will remain so," Wilke said. 3. CHINESE RULES ON CLOUD: The U.S. government is reviewing ways to retaliate against China's restrictions on U.S. providers of cloud computing and other high-tech services, the Wall Street Journal reported earlier this week. The U.S. Trade Representative's office is in the process of building a fresh trade complaint contending that Beijing unfairly restricts U.S. trade in such high-tech services, the report added, citing individuals familiar with the matter. China requires U.S. cloud-computing firms, such as Amazon (AMZN) and Microsoft (MSFT), to form joint operations with Chinese companies and license their technology to the Chinese partners. 4. DOD CLOUD PLAN: Oracle co-CEO Safra Catz told President Donald Trump that the U.S. Defense Department's cloud-computing contract makes "no sense" as the Pentagon's plan is to find only one provider, Bloomberg reported on Monday. Catz said the procurement process by the Pentagon, which plans to award a single contract for multi-year cloud services that could go to one team made up of multiple companies, seems to favor Amazon's AWS, but added Trump told her that "he was very confident that the Pentagon would have a fair review." "Week in Review" is The Fly's weekly recap of its recurring series of "Trump Effect" exclusive stories. | |
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