Week In Review: How Trump's Policies Moved Stocks - January 25, 2020

France postpones tech tax, Amazon asks court to pause Microsoft's work on JEDI deal and more...

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. TECH TAX POSTPONED: French President Emmanuel Macron has agreed to postpone until the end of this year a tax that is to be levied on big tech companies, such as Google (GOOGL), Apple (AAPL), Facebook (FB) and Amazon (AMZN), averting a trade war, The Wall Street Journal's Bojan Pancevski and Sam Schechner reported earlier this week. According to U.S. and French officials, Macron reached out by phone to President Trump on Sunday seeking a way to end the threat of tariffs while they work out a broader accord on digital taxation. As part of the truce, Macron agreed to postpone until the end of 2020 a tax that France levied on big tech companies last year, one U.S. official said, adding that in return, the U.S. will postpone retaliatory tariffs this year.

2. JEDI DEAL: Amazon (AMZN) has filed a motion in court to pause the U.S. Department of Defense and Microsoft (MSFT) from carrying out the up to $10B Joint Enterprise Defense Infrastructure, or JEDI, contract until a court rules on its protest of the contract award, Reuters' Jeffrey Dastin reported. In a statement, Amazon's cloud division Amazon Web Services (AWS) said, "It is common practice to stay contract performance while a protest is pending, and it's important that the numerous evaluation errors and blatant political interference that impacted the JEDI award decision be reviewed."

Wedbush analyst Daniel Ives noted that the action is on the heels of the formal protest that AWS has launched within the Department of Defense/federal courts around the JEDI procurement process with hopes to change the outcome. AWS claims it did not win the JEDI contract as a result of Trump's repeated public and private attacks against Amazon and, specifically, around Jeff Bezos. While this will cause noise and delay to the official start of the JEDI deal, Ives firmly does not believe this will change the decision.

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