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Microsoft says it will no longer use engineers in China for Department of Defense work

1. Microsoft will stop using China-based engineers for DoD systems maintenance. 2. Defense Secretary Hegseth emphasized foreign engineers should not access DoD systems. 3. Concerns arose from Pro Publica about technical oversight by U.S. escorts. 4. Microsoft's response involved changes to cloud support for the U.S. government.

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FAQ

Why Bullish?

Addressing security concerns may enhance investor confidence in MSFT's compliance and ethics, similar to past reactions regarding government contracts.

How important is it?

The article highlights governmental trust and compliance which is critical for MSFT's government contracts and cloud services.

Why Short Term?

Immediate changes signal responsiveness and could boost stock performance in the upcoming quarter, similar to past events after addressing security issues.

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