JEDI: Pentagon chooses Microsoft over Amazon
The Department of Defense picked Microsoft over Amazon for a $10 billion cloud-computing contract, said Kate Conger in The New York Times. Bidding for the 10-year agreement for the Joint Enterprise Defense Infrastructure, known as JEDI, was “closely watched after President Trump ramped up his criticism of Amazon’s founder, Jeff Bezos, and said he might intervene.” In a new book, the communications director for former Defense Secretary Jim Mattis says that Trump told Mattis to “screw Amazon” out of the bidding, but Mattis objected.
Investing: Fed cuts rates in booming market
With the stock market soaring, the Federal Reserve approved a rate cut for the third—and perhaps final—time this year, said Patti Domm in CNBC.com. After another quarter-point cut trimmed the benchmark interest rate to a range of 1.5 to 1.75 percent, Fed chairman Jerome Powell delivered a more “hawkish” message this week, backing off more reductions as he “watches to see if there is progress in the economy.” Earlier in the week, the S&P 500 rose to a record high after strong third-quarter earnings from Microsoft and AT&T, among others.
Cars: Three big automakers back Trump on emissions
General Motors, Toyota, and Fiat Chrysler joined a coalition of automakers backing President Trump in his fight over California’s fuel standards, said Brady Dennis and Juliet Eilperin in The Washington Post. A spokesman for the group, the Association of Global Automakers, said the companies “are not necessarily endorsing” the White House’s position, which calls for weaker standards than California’s, but want the federal government to have the “sole purview for setting national standards.” In July, Ford, Honda, Volkswagen, and BMW struck a deal with California on auto emissions, leading to a face-off with federal regulators and fierce criticism from President Trump.
Manufacturing: Economy grows, factories shrink
“Once a powerhouse of the U.S. economy,” manufacturing now makes up the smallest share in 72 years, said Reade Pickert in Bloomberg.com. “Three years after Donald Trump campaigned for president pledging a factory renaissance,” a Commerce Department report this week showed that manufacturing made up just 11 percent of the gross domestic product, its lowest percentage since 1947. The figure compares with 13.4 percent for real estate and 12.3 percent for government. Overall, the U.S. economy grew by 1.9 percent in the third quarter, slowing from the previous quarter but beating expectations.