Banking & Finance Israeli says high Q1 profits of banks not sustainable Israel’s financial system is strong but the very high profits banks posted in the first quarter are not sustainable, its banking regulator said on Wednesday. The country’s largest five banks posted a combined 6.3 billion shekels ($1.7 billion) in net profit in the first quarter, helped by higher inflation and interest rates that sharply boosted […] May 25, 2023
Economy Israel set to approve 2023-24 budget amid protests Israel’s parliament began a final vote on the state budget late on Tuesday, granting some political reprieve to Prime Minister Benjamin Netanyahu whose hard-right coalition government has been strained by months of protests. Facing last minute funding demands by some of his religious and far-right allies as his government approached a May 29 deadline, Netanyahu […] May 24, 2023
Banking & Finance Bank of Israel hikes key rates to tame inflation The Bank of Israel has hiked benchmark interest rates to their highest level since 2006, citing high inflation and a tight labour market and said upcoming data would determine whether it raised them further. The central bank lifted the key rate for the 10th policy meeting in a row, to 4.75 percent from 4.5 percent. […] May 23, 2023
Technology Israel tech firms to continue job layoffs in 2023 Israeli high-tech firms have largely halted job hiring and many are expected to continue layoffs this year, a report on the country’s tech sector showed on Tuesday. One-quarter of companies have stopped recruiting new employees and another quarter plan more layoffs – many of those planning to let go five percent of their workforce, according […] May 17, 2023
Banking & Finance S&P affirms Israel’s rating but warns on growth Credit ratings agency S&P on Friday affirmed Israel’s “Aa-/A-1+” rating and kept its outlook stable, but warned that fallout from a highly contested judicial overhaul could hamper growth. Israel’s government is trying to push through changes that would give politicians greater sway over selecting judges and to limit the power of the Supreme Court to […] May 14, 2023
Economy IMF says Israel’s judicial reforms is a risk to economy The International Monetary Fund (IMF) on Wednesday flagged Israel’s proposed judiciary reforms as a significant downside risk to the economy that could tighten financial conditions and hinder investment, consumption and long-term growth. Israel needed to permanently reduce uncertainty around the reforms with a “politically sustainable solution that is clearly communicated and well understood both domestically […] May 11, 2023
Technology Qualcomm to acquire Israeli auto-chip maker Qualcomm is to acquire Israel’s Autotalks, a maker of chips used in crash-prevention technology, as the US firm looks to expand its automotive business. The company did not disclose the terms of the deal but said the Autotalks technology would be incorporated into its assisted and autonomous driving product, Snapdragon Digital Chassis. Qualcomm said last […] May 9, 2023
Health Israeli firm makes ready-to-cook 3D printed fish fillets Forget your hook, line and sinker. An Israeli foodtech company says it has 3D printed the first ever ready-to-cook fish fillet using animal cells cultivated and grown in a laboratory. Lab-grown beef and chicken have drawn attention as a way to sidestep the environmental toll of farming and tackle concerns over animal welfare, but few […] May 4, 2023
Startups Israel’s judicial proposals prompt startups to relocate The government’s plan to overhaul the judicial system is harming investor confidence and pushing high-tech firms to relocate abroad, Israel’s state-backed agency that supports high-tech companies said. A survey by the Israel Innovation Authority found 80 percent of startups established so far this year were opened outside Israel and that companies also intend to register […] May 2, 2023
Banking & Finance Israel’s sovereign wealth fund names full-time manager The Bank of Israel has named Lena Krupalnik, a veteran institutional investment manager, to oversee the country’s sovereign wealth fund which was set up in 2014 following the discovery of huge natural gas deposits. After a four-year delay due to political turmoil and a slower than expected revenue stream, the fund began operating last June […] April 25, 2023
Economy Israel rebuff Moody’s outlook cut over judicial reforms Israel’s government on Saturday rebuffed an outlook downgrade on the country from credit ratings agency Moody’s, while tens of thousands of Israelis returned to the streets to protest against a planned overhaul of the country’s judiciary. Moody’s report issued on Friday marks the latest warning about a potential economic backlash to Prime Minister Benjamin Netanyahu’s […] April 16, 2023
Banking & Finance Bank of Israel raises interest rate to highest since 2007 The Bank of Israel has raised its benchmark interest rate by another quarter of a percentage point, the ninth straight meeting it has increased rates amid a battle against inflation that remains above five percent. Bank governor Amir Yaron said he hoped the cycle of rate hikes, which began a year ago, was coming to […] April 4, 2023
Energy Shares soar at Israeli energy giant after BP and Adnoc offer Shares in Israeli energy giant NewMed Energy soared on Tuesday after BP confirmed that, together with Abu Dhabi National Oil Company (Adnoc), it has made a non-binding offer to buy a 50 percent stake in the company. The Tel Aviv Stock Exchange-listed natural gas operator saw its share price rise by more than 36 percent […] March 29, 2023
Travel & Hospitality Nigeria’s Air Peace to start non-stop Israel flights in April Israel’s transport minister on Sunday approved an aviation deal with Nigeria that will allow non-stop flights between the countries to begin next month for the first time, the ministry said. The agreement, which still needs cabinet approval in Israel, will let carriers from the two countries to operate flights between Tel Aviv and cities in […] March 27, 2023
Travel & Hospitality Israel’s El Al to resume India flights using Saudi corridor El Al Israel Airlines is to resume flights to India in October after a three-year absence, citing shorter flight times due to the ability to fly over Saudi Arabia and Oman. Israel’s flag carrier will operate four weekly flights to Mumbai from Tel Aviv using Boeing 737 aircraft, with the route expected to take 5.5 […] March 24, 2023
Banking & Finance Israel’s trading platform eToro valued at $3.5bn in funding round Israeli online trading platform eToro said on Tuesday it had recently raised $250 million in a funding round that valued the online brokerage at $3.5 billion, months after its proposed merger with a blank-check company fell through. The funding round was backed by Ion Group, SoftBank Vision Fund 2, Velvet Sea Ventures and others, eToro […] March 22, 2023
Economy More rate hikes seen as Israel inflation eases to 5.2% Israel’s inflation rate eased to a four-month low of 5.2 percent in February from a 2008 high of 5.4 percent in January. However, it was still higher than expected and is likely to mean another interest rate hike next month. The consumer price index (CPI) rose 0.5 percent in February from January, led by gains […] March 16, 2023
Banking & Finance Israel says immediate liquidity risk averted after SVB collapse A panel formed by Israel’s finance ministry to assess the fallout from the collapse of Silicon Valley Bank (SVB) has determined that the immediate liquidity risk has been averted. The ministry in a statement cited a decision by US authorities to back accounts – even those uninsured – at the bank, which has been an […] March 15, 2023
Banking & Finance Israel’s Bank Hapoalim says Q4 profit nearly doubles on rate hikes Bank Hapoalim has reported a near doubling of net profit in the fourth quarter 2022, helped by a sharp rise in interest rates that boosted financing income. Hapoalim, one of Israel’s two largest lenders and the first of Israel’s banks to issue quarterly results, said it earned a net 1.75 billion shekels ($487 million) in […] March 10, 2023
Economy Israeli fintech to wire $500m out of country over judicial overhaul Israeli financial technology firm Riskified is transferring $500 million out of the country, joining private sector opposition to the government’s planned overhaul of the judicial system. CEO Eido Gal shared the decision with employees in a letter and voiced concerns that the proposed changes to the court system, if ratified, could lead to a “prolonged […] March 9, 2023
Economy Moody’s warns judicial reforms may impact Israel’s credit rating Moody’s Investor Service has warned that the Israeli government’s planned judicial reforms could weaken institutions and could negatively impact Israel’s sovereign credit profile. In its statement, Moody’s did not downgrade Israel’s A1 positive credit rating and did not walk back the positive outlook it assigned in April 2022 that was driven by solid government finances. […] March 8, 2023
Startups Israel’s Liquidity Group to support Gulf startups with $500m Liquidity Group, an Israel-based fintech and asset manager, is looking to provide $500 million this year to support startups in the UAE and across the Middle East. The company reached unicorn status last month, with fresh investment of $40 million from Japan’s MUFG at a valuation of $1.4 billion. Launched in 2018, Liquidity Group provides […] March 6, 2023
