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December 1, 2015 / 19 Kislev, 5776
At a Glance

Posts Tagged ‘economy’

SanDisk to Open R & D Center in Israeli Arab City

Wednesday, October 14th, 2015

The giant SanDisk flash-storage company has announced it will build a new research and development center in a northern Arab city, where dozens of Arabs will work.

The announcement comes at an opportune time. While Israeli Arab misfits riot and try to kill Jews, the majority are interested in a better social and financial life.

The new center will be located in Yafia, near the Lower Galilee city of Nazareth whose mayor earlier this week said he was fed up with loud-mouth Arab Knesset Members whose incendiary speeches incite others to terror.

He said they are ruining the city by scaring away thousands of Israeli Jewish shoppers.

SanDisk already employs approximately 650 people in Israel at its facilities in Kfar Saba, north of Tel Aviv, Omer, located north of Be’er Sheva, and Tefen in the northern Galilee.

The new center will attract Arabs from Haifa and Nazareth.

SanDisk Israel CEO Shahar Bar-or told Globes:

When we decided to establish the center six months ago, we couldn’t have imagined that the opening ceremony would take place at a time of tension and the recent events.

The integration of Arab engineers in the high-tech industry is now more important than ever. The main and most important reason is that the high-tech industry needs the capabilities and qualifications of the entire population in Israel, and we’re losing out on thousands of excellent Arab engineers.

The second reason is that only employment at high wages can bring about real integration of the Arab population in Israeli society.”

Another high-tech company located n the area is Galil Software, which has a stated goal of hiring Arab engineers.

Israeli Cabinet Approves Gas Deal With Noble Energy, Delek Ltd.

Sunday, August 16th, 2015

Government ministers passed the long-awaited, controversial gas deal on Sunday afternoon, giving the Noble Energy and Delek Ltd. consortium the rights to the large gas fields they had discovered and begun to develop beneath the waters of the Mediterranean – while giving Israeli citizens a future income of hundreds of billions of shekels in the process.

“This money will benefit education, health, social welfare and other national needs,” Prime Minister Binyamin Netanyahu said at the start of the weekly cabinet meeting.

“I would like to commend the work done by Minister Steinitz’s team which has led to a very significant reduction in the price the state will pay for gas and to other changes that will greatly improve the outline.

“I am not impressed by populism – to me it is only populism, even though people could possibly believe in what they are saying, but the country needs gas. Gas resources in our region will be developed, unfortunately, either way, and we need to see to it that our resources work at full capacity.

“We need to extract the gas from the sea,” Netanyahu went on.

“This decision is an important milestone. We are overcoming the obstacles step by step. This process will not be stopped,” he said, making an oblique reference to the myriad attempts by various groups to stymie the agreement that was finally approved.

“The gas will be extracted from the bottom of the sea and will reach Israeli citizens, Israeli industry and the Israeli economy – for the benefit of the citizens of Israel.

“Every objective test proves this outline is a significant improvement over the existing situation. But one more thing must be understood – it cannot be stopped.

“When the right thing needs to be done, and it is so crucial to Israel’s economy and strategic situation, that thing will not be stopped. They will look for another way to delay, another excuse, another reason – and that will not work.

This outline will pass one way or another, and it is about time that it does. The true interests of the State of Israel require the passage of this outline as quickly as possible.”

Negotiations between the government and the consortium comprised of Texas-based Noble Energy and the Israeli company Dekel Group Ltd. have been dragging on for months.

Israel’s Antitrust Authority last year decided the consortium could not continue operations as the sole owners and operators of the massive Leviathan gas field, and the somewhat smaller but also large Tamar gas field – both of which were discovered and have been developed at considerable expense by the group.

Gas has already been produced from the Tamar field since 2013. Leviathan is considered the largest discovery in the world in the past decade – and certainly the largest field in the Mediterranean.

Negotiations over how pricing will be set for gas in the domestic market and the prices and percentage of reserves to be exported had taken place for months between the government and the group – which has pointed out that without being able to recoup its investment and also to be able to make a profit, there is little point to continuing its operations in the area.

Antitrust Commissioner David Gilo threatened to resign in May over his opposition to what he insisted was the group’s monopoly over the Tamar and Leviathan fields.

The gas deal negotiated with the government this past week allows Delek Group – owned by Yitzchak Tshuva – to sell its holdings in the Tamar field, and also two smaller fields, Karish and Tanin, within six years. Noble Energy will gradually reduce its own holdings in Tamar to a maximum of 25 percent within six years as well. Prices for natural gas will be regulated by the government within that same six-year period as well.


Agriculture Minister Uri Ariel Cuts Cost of Milk

Monday, July 6th, 2015

Israeli consumers will be able to afford double cheese on their pizza again — not to mention plain milk for parents to be able to give to their children.

Agriculture Minister Uri Ariel has signed an order to create a 4.62 percent drop in the price of milk. The committee on price controls last week cut the price of raw milk by 6.48 percent.

Hopefully the move will lead to a drop in the price of other dairy products as well.

“This is a reduction whose entire purpose is aimed at reaching the pockets of the consumer,” Ariel said, adding in his warning to dairy companies that the measure was “not in order to enrich your coffers.” The minister said he also plans to cut the prices of unsupervised dairy products as well.

Facebook and Alibaba Invest in Israel

Monday, March 23rd, 2015

Facebook and the Chinese giant Internet Alibaba companies have expressed confidence in Israel with hiring and investment announcements.

Facebook, which already operates a development center in Tel Aviv, is hiring another 40 people, including 10 in the area of marketing and 30 engineers, product managers and designers,

Facebook has acquired at least three Israeli start-ups in the past four years.

Facebook Israel general manager Adi Soffer-Teeni announced Monday that the Israel branch is carrying out a special operation for training companies how to use Facebook’s platforms, and added, “I believe that other countries around the world will adopt the unique idea devised by our team here.”

Development center manager Roy Tiger said that an Israeli team is involved in a project called Safety Check, “an application that enables people to announce their situation quickly in a disaster, such as an earthquake.” He added that the application “was successfully used in the recent Hurricane Pam in the Asian Pacific region.

Alibaba announced it is investing tens of millions of dollars in the Israel venture capital firm JVP.

Nearly two dozen Alibaba officials are visiting Israel, including JVP’s offices in Jerusalem and its cyber incubator in Be’er Sheva.

Moody’s Finance: Netanyahu Coalition to Be Stable and Good for Economy

Monday, March 23rd, 2015

The expected right-wing government headed by Prime Minister Binyamin Netanyahu “would likely be inherently more stable than a coalition led by the centre-left Zionist Union, which would struggle to put together a majority,” Moody’s Investors Service analyst Kristin Lindow wrote Monday.

The world-wide credit rating service said the victory by the right-ring in the elections last week is good for Israel’s credit rating because of expected  “economic policy cohesion.”

“We expect the government’s fiscal rules to contain spending growth and keep credit metrics for Israel on their well-established improving trend, a credit positive,” Lindow and co-author Pamela Reyes Herrera  wrote.

He added that the coalition that Netanyahu is putting together will last longer than the previous and ill-conceived government.

The new administration “would likely be inherently more stable than a coalition led by the centre-left Zionist Union, which would struggle to put together a majority,” Lindow said.

The Moody’s report added, “The economy’s recovery from last year’s Gaza conflict should lead to rapid consensus over the budget allocations.”

A government source told “the Globes business newspaper that the announcement by Moody’s “is a positive announcement. It can almost be called a ‘God speed’ for Netanyahu.”

This is bad news for the “anyone but Prime Minister Binyamin Netanyahu” campaigners, whose spokesmen, such as The New York Times and the Obama administration, have drowned out the right-wing victory with twisted analyses to soothe their wounds while babbling that Israel now will be worse off than ever.

The irony of Israel’s Labor party, which now calls itself the “Zionist Union” following the merger with Tzipi Livni’s faction, is that unlike its counterparts in the rest of the world, Labor is anything but socialist.

Israel’s Labor party always has been run by the old-guard elitists, except for a short interval when Amir Peretz, long-time leader of the Histadrut national labor party, carried the ball and fumbled it forever.

Israel’s tycoons, which control most of the manufacturing capacity in the country, always have been behind Labor and against reforms to create a free market.

Bolshevik-Like Israel Media Hide Good Economic News

Monday, March 16th, 2015

The Consumer Price Index (CPI) sank 0.7 percent in February, following a 0.9 percent drop in January, but Israel’s media front against Prime Minister Binyamin Netanyahu has buried the report lest people realize the truth.

Netanyahu cannot take any credit for the drop in prices, but reporting good news for the consumers would destroy the myth propagated by the Israeli media establishment that the consumer is worse off than ever under Netanyahu.

The CPI has fallen 1.5 % in the past 12 months and 1.6% for the first two months of this year.

The drop in the price of crude oil was sharper than the rise in the shekel-dollar rate, accounting for a reduction in the price at the pump.

But Internet and telecom services also dropped 2.7 percent last month, another result of the revolution called “free competition” initiated in the Netanyahu administration under the aegis of then-Communications Minister Moshe Kachlon.

Netanyahu on Sunday publicly offered the Finance Ministry post to Kachlon, who left the Likud government and now heads his Kulanu party.

The name “Kulanu” is scary to tycoons.

Immediately after publication of Netanyahu’s offer to Kachlon, the banking index in on the Tel Aviv  Stock exchange dropped by 1.5%. The tycoons are afraid that Kachlon as Finance Minister will cut ridiculously high fees that banks charge customers for everything but breathing.

The Globes business newspaper reported:

Kachlon is promising substantial reforms in the Israeli banking system, especially the opening of the sector to competition, as he did in the cellular market. The stock exchange is listening to him, and in view of the likelihood that he will be appointed Minister of Finance, investors are sending the banks shares…southward.

If anyone thinks he is destroying the ability for companies to profit., take a look at the Cellcom mobile phone company.

Kachlon said several years ago there is no reason that the oligarchy of mobile phone companies should earn billions of shekels a year. Cellcom’s stock was selling at more than $32, and Its shareholders enjoyed a steady 10 percent rise in the price of the stock every year along with a fat dividend of more than 12%.

That was before Kachlon acted, opened the market to free enterprise, which was followed by a 90 percent drop in cell phone rates.

Cellcom’s shares eventually sank to approximately $5, but is the company losing money?

The company reported today its earnings for 2014, and don’t shed any tears for the shareholders.

Net income increased 2.9% compared with 2013.

Netanyahu Exploits Elections to Raise Minimum Wage

Sunday, December 21st, 2014

Prime Minister Binyamin Netanyahu told the Cabinet meeting Sunday the minimum wage for approximately 700,000 Israel will rise by 15 percent to $1275 a month.

“This morning, I met with Histadrut [labor federation] Chairman Avi Nissenkorn and Manufacturers Association of Israel President Tzvi Oren,” the Prime Minister said.

“I informed them that I have instructed the Finance Ministry to enable the Cabinet to raise the minimum wage to NIS 5,000. This is in continuation of our raising the minimum wage from NIS 3,800 to NIS 4,300, which we did in 2011, and now we are raising it from NIS 4,300 a month to NIS 5,000 a month,” he added.

Netanyahu issued the order two weeks after he fired Yesh Atid leader and coalition nemesis Yair Lapid as Finance Minister.

Raising the wage by 15 percent all at once will  have an inflationary effect, but no one will notice it so quickly.

Aren’t elections a great way  for getting things done?

Actually it is a terrible way but it seems to be the only way that works.



Printed from: http://www.jewishpress.com/news/breaking-news/netanyahu-exploits-elections-to-raise-minimum-wage/2014/12/21/

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