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October 9, 2015 / 26 Tishri, 5776
At a Glance

Posts Tagged ‘economy’

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.



Haredi Israelis Get the Most Benefits and Are the Deepest in Debt

Wednesday, December 17th, 2014

A new study shows that Haredi Israelis are behind the financial eight ball more than other sector even though their monthly benefits form the government are 60 percent more than others

The Taub Center for Social Policy’s 2014 State of the Nation report, blamed high housing costs as the main reason households cannot make ends meet.

Haredi families, which on average have far more children than secular families, spent nearly $00 (3209 shekels) more than their income, compared with approximately $214 (864 shekels) for non-observant families.

The gap among Muslims was nearly $500 (1919 shekels).

Monthly benefits, other than earned income, for Haredim was slightly more than $800 (3256) shekels a month.

The report cited housing costs as the biggest problem for Israeli families to end the month without an overdraft.

Even families with both spouses working have a hard time being able to afford a $250,000 mortgage to buy a home, and the amount could be double that much in the Tel Aviv or Jerusalem.

However, a large number of husbands in Haredi families learn in yeshiva and rely on a stipend and their wives’ income.

The Bank of Israel, both under the guidance of Stanley Fischer and now his successor Karnit Flug have urged the government to encourage Haredim to enter the work force and be more self-reliant.

Israel, Mexico, Sign Research & Development Pact

Tuesday, December 9th, 2014

Israel and Mexico have signed a deal to cooperate on industrial research and development, Israel’s Ministry of Economy announced Monday.

The two nations are set to fund joint projects aimed at advancing industrial development between both.

Leading fields for cooperation with Mexico will focus primarily on water management, desert agriculture, pharmacology and medical devices, electronics and communication.

“Mexico is one of the world’s largest manufacturers in a variety of fields, comprising an essential part of the country’s economy,” said Rona Kotler Ben Aroya, trade attache to Mexico from the Israeli Ministry of Economy.

“The signing of the industrial R&D agreement between Israel and Mexico will help Israeli companies integrate products and advanced technologies with local manufacturers and realize the potential of [the North American] market.”

Printed from: http://www.jewishpress.com/news/breaking-news/israel-mexico-sign-research-development-pact/2014/12/09/

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