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Pentagon will award up to $9 billion in cloud contracts in December

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U.S. Defense Secretary Lloyd Austin speaks during a news conference in Tbilisi, Georgia October 18, 2021.

Irakli Gedenidze | Reuters

The U.S. Defense Department said Tuesday that it plans to award as much as $9 billion in contracts for cloud infrastructure services in December, about eight months later than it expected.

The Joint Warfighter Cloud Capability, or JWCC, initiative represents a new path for the U.S. military that would rely on multiple cloud providers, rather than a single one. That was the strategy the Pentagon had initially sought to use with the Joint Enterprise Defense Infrastructure, or JEDI, contract. The Pentagon wound up awarding the contract to Microsoft before canceling it.

“We’ve recognized that our schedule was maybe a little too ahead of what we thought, and that now we’re going to wrap up in the fall and we’re aiming to award in December,” John Sherman, the Pentagon’s chief information officer, said on a call with reporters. In July 2021, when it announced the JWCC, the goal had been to award contracts as soon as April 2022, Sherman said.

The Pentagon made solicitations to Amazon, Google, Microsoft and Oracle in November, Sherman said.

The Pentagon still expects the contracts to have a three-year base period and two-year option periods. Then, Sherman said, the Pentagon will kick off “a full and open competition for a future multicloud acquisition.”

The JEDI contract would have been worth as much as $10 billion over 10 years. JWCC would span five years and would have a larger dollar amount over that time period.

The work would reach across all three security classifications and operate both inside and outside the U.S., Sherman said. The expectation is that the Pentagon will have access to the unclassified network when the contracts are awarded. Secret networks will come online 60 days after the contract award and top-secret and tactical edge networks will be online no later than 180 days after picks are made.

The contracts would mark a break from technology services delivery under former President Donald Trump, who had reportedly sought to block Amazon from winning the JEDI contract, which came to be seen as structurally problematic by relying on a single provider. Former Secretary of Defense James Mattis’ successor, Lloyd Austin, last year signed off on a Joint All-Domain Command and Control, or JADC2, strategy that will draw on artificial intelligence.

WATCH: Pentagon asks for new bids in government contract after canceling Microsoft’s ‘Jedi’ deal



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IMF hikes global growth forecast as inflation cools

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The IMF has revised its global economic outlook upwards.

Norberto Duarte | Afp | Getty Images

The International Monetary Fund on Monday revised upward its global growth projections for the year, but warned that higher interest rates and Russia’s invasion of Ukraine would likely still weigh on activity.

In its latest economic update, the institution said the global economy will grow 2.9% this year — which represents a 0.2 percentage point improvement from its previous forecast in October. However, it said that number would still mean a fall from an expansion of 3.4% in 2022.

It also revised its projection for 2024 down to 3.1%.

“Growth will remain weak by historical standards, as the fight against inflation and Russia’s war in Ukraine weigh on activity,” Pierre-Olivier Gourinchas, director of the research department at the IMF, said in a blog post.

The Fund turned more positive on the global economy due to better-than-expected domestic factors in several countries, such as the United States.

“Economic growth proved surprisingly resilient in the third quarter of last year, with strong labor markets, robust household consumption and business investment, and better-than-expected adaptation to the energy crisis in Europe,” Gourinchas said, also noting that inflationary pressures have come down.

Global outlook is better but don't get too optimistic, IMF chief warns at Davos

In addition, China announced the reopening of its economy after strict Covid-19 lockdowns, which is expected to contribute to higher global growth. A weaker U.S. dollar has also brightened the prospects for emerging countries that hold debt in foreign currency.

However, the picture isn’t totally positive. IMF Managing Director Kristalina Georgieva warned earlier this month that the economy was not as bad as some feared, “but less bad doesn’t quite yet mean good.”

“We have to be cautious,” she said during a CNBC-moderated panel at the World Economic Forum in Davos, Switzerland.

The IMF on Monday warned of several factors that could deteriorate the outlook in the coming months. These included the fact that China’s Covid reopening could stall; inflation could remain high; Russia’s invasion of Ukraine could shake energy and food costs even further; and markets could turn sour on worse-than-expected inflation prints.

IMF calculations say that about 84% of nations will face lower headline inflation this year compared to 2022, but they still forecast an annual average rate of 6.6% in 2023 and of 4.3% in 2024.

As such, the Washington, D.C.-based institution said one of the main policy priorities is that central banks keep addressing the surge in consumer prices.

“Clear central bank communication and appropriate reactions to shifts in the data will help keep inflation expectations anchored and lessen wage and price pressures,” the IMF said in its latest report.

“Central banks’ balance sheets will need to be unwound carefully, amid market liquidity risks,” it added.



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Credit Suisse see Apple beating the Street this week for a few reasons

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Most Adani shares continue losses; founder loses $28 billion in month

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Gautam Adani, chairperson of Indian conglomerate Adani Group, at the World Congress of Accountants in Mumbai on Nov. 19, 2022. Founder Gautam Adani, the richest man in Asia and once second only to Elon Musk, fell out of the world’s top five richest to rank seventh on the Bloomberg’s Billionaire Index.

Indranil Mukherjee | Afp | Getty Images

Shares of most of Adani Group companies continued to see sharp losses for a third consecutive trading session as the company attempted to rebut short seller firm Hindenburg’s report, which accused the conglomerate of stock manipulation and an “accounting fraud scheme.”

Adani Enterprises erased earlier gains of up to 10% and last traded flat in Mumbai’s afternoon trade after the group published a lengthy response of over 400 pages to Hindenburg’s report over the weekend, saying that it will exercise its rights to “pursue remedies” to protect its investors “before all appropriate authorities.”

Adani Enterprises’ stock price remains more than 25% lower in the month to date, Refinitiv data showed. It proceeded with a secondary share sale worth $2.5 billion, which were overshadowed by a rout that wiped out a total of $48 billion as of last week’s close.

Founder Gautam Adani, the richest man in Asia and once second only to Elon Musk, fell out of the world’s top five richest to seventh place on the Bloomberg’s Billionaire Index.

His net worth fell $27.9 billion year to date, the index showed. It peaked at $150 billion on Sept. 20, 2022, before falling to to $92.7 billion as of last week’s close, according to the index.

Despite small gains seen in Adani Enterprises, other affiliates of the Adani Group continued to plunge.

‘Attack on India’

Adani Group said Hindenburg’s allegations were a “calculated attack on India, independence, integrity and quality of Indian institutions, and growth story and ambition of India,” in the response it released over the weekend.

The group’s chief financial officer Jugeshinder Singh said in an interview with CNBC-TV18, an affiliate of CNBC, that the value of Adani Enterprises has not changed “simply because” of share price volatility, adding it instead lies in its “ability to incubate new businesses.”

He added that he is confident Adani Enterprises‘ follow-on public offering will be fully subscribed, calling Hindenburg’s report “simply a lie” and the timing of the report “malicious.”

Hindenburg on Monday morning described the group’s response “bloated” and claimed it “ignores every key allegation” against the conglomerate that it raised.

“Fraud cannot be obfuscated by nationalism of a bloated response that ignores every key allegation we raised,” the short seller titled its response to Adani Group.



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