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As foreign investors warn over Israel’s future, ratings firm accused of anti-Israel bias says it’s not worried — for now

(JTA) — As much of the financial world increasingly eyes political developments in Israel with concern, a company that specializes in assessing investments based on social responsibility criteria made a special announcement Wednesday in which it declared Israel “a low-risk country.” 

That designation is both a signal to investors that they are unlikely to get entangled in human rights abuses or other scandals if they put their money in Israel, and a reassurance intended for pro-Israel advocates who have accused the company of bias against Israel. 

The announcement from the multibillion-dollar Chicago-based financial research firm Morningstar is the latest entry in a debate about how companies around the world should regard the Israeli-Palestinian conflict. One side says that Israel should be treated as regular Western democracy and the other says that Israel’s treatment of the Palestinians should put the country in the class of authoritarian regimes. 

But another debate about Israel’s investment worthiness has emerged in recent months following the election of a new Israeli government led by Benjamin Netanyahu, whose slim parliamentary majority relies on the support of parties with far-right platforms. 

Netanyahu, who is on trial for corruption, has vowed to overhaul Israel’s judicial system and rein in the independence of the courts. Many financial analysts consider a weakened judiciary a red flag for investors. 

Sarah Wirth, a spokesperson for Morningstar, said that its analysis designating Israel a low-risk country does not yet account for recent developments in Israel.

“Some of the changes developing in Israel may impact their Country Risk Rating once we incorporate them into our analysis,” Wirth wrote in an email to the Jewish Telegraphic Agency in reference to the judicial reform plan. 

The latest warning about Israel’s place in the global economy emerged Friday with the leak of an internal report written by JPMorgan, one of the largest banks in the world. 

The report compared Israel to Poland, which passed a similar judicial reform in 2016 and saw a downgrade to its credit rating, which was a major blow because national credit ratings can either attract or drive away investments from abroad. 

JPMorgan analysts wrote that Israel’s credit rating still “stands comfortably in the investment grade bucket” but that Netanyahu’s plan could cause it to go down.

The report adds to a warning by another Wall Street giant, Goldman Sachs, which said last week that the Israeli shekel could be affected by “growing concern over domestic political developments.”

“The five most recent elections over the past three-year period have had typically limited read-through to financial markets,” Goldman Sachs economist Tadas Gedminas wrote in a report. “This is not to say that the current situation could not have a more meaningful impact this time around, and we will closely monitor ongoing developments.”

Netanyahu has rejected criticism of his judicial plan by saying that the proposed reforms are being misrepresented by his critics and that they would merely bring Israel’s courts in line with courts in other Western countries. The plan would limit the ability of the Supreme Court to rule laws and government actions as unconstitutional, give the government control over the appointments of new judges and end the independence of the position of legal advisor across various government offices, among other measures. 

Netanyahu has also said that regardless of the warnings by analysts, international investors are excited about Israel and eager to acquire equity in Israeli companies. His latest pronouncement came from France where he said he met with 60 local business leaders. 

“What they’re saying about investors running away is nonsense,” Netanyahu said. “We want to increase our investments in Israel.”

Some of Israel’s own business leaders are concerned enough about the country’s direction that they are choosing to decamp. The CEO of tech company Verbit, which was valued at $2 billion in 2021, announced Tuesday that he would leave the country to avoid paying millions in taxes as a protest of the judicial overhaul plan. 

“Over the past few years, I’ve paid tens of millions of dollars in taxes and my company has paid hundreds of millions in taxes,” Verbit CEO Tom Livne said on Israel’s Channel 12. He encouraged others in Israel’s vaunted tech sector to do the same. 

Livne’s announcement comes about a week after two Israeli tech firms, including one that was valued at $3.7 billion in 2021, said they would withdraw assets from Israel for the same reason. 


The post As foreign investors warn over Israel’s future, ratings firm accused of anti-Israel bias says it’s not worried — for now appeared first on Jewish Telegraphic Agency.

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Why do some people think Mike Lawler is Jewish?

For Rep. Mike Lawler, a practicing Catholic, the antisemitic insult hurled at him this week was not just a ugly political attack by an intoxicated political scion. It highlighted how closely the Hudson Valley Republican has become linked to New York’s Jewish community because of the district he represents, the relationships he has built and his role as one of the GOP’s strongest pro-Israel voices.

“I have one of the largest Jewish populations anywhere in the country in my congressional district, and I’m not going to stop standing up for my constituents,” Lawler told reporters on Wednesday, a day after William Paul, the son of Sen. Rand Paul of Kentucky, confronted him in a Washington bar and blamed “Jews” for political attacks — targeting Lawler because he believed the New York rep was Jewish. Paul later apologized and said he has a drinking problem for which he is seeking treatment.

Lawler, 39, represents New York’s 17th Congressional District, a suburban swing seat in Rockland and Westchester counties that has the nation’s largest Jewish population per capita. Lawler narrowly defeated Democratic incumbent Sean Patrick Maloney in the last midterm elections by a slim 2,000-vote margin, with strong support from the large Hasidic communities in Monsey, New Square and New Hempstead.

The episode reflected how deeply Lawler has become associated with Jewish causes and support for Israel. Lawler, who previously served two years in the New York State Assembly, took credit for lowering the temperature in Rockland County after local GOP officials in 2019 posted a video widely criticized as antisemitic. After his election to Congress, Lawler chose a seat on the influential House Foreign Affairs Committee, saying it was because support for Israel is important for the people in his district. He now serves as chair of the Middle East and North Africa Subcommittee.

He was the lead sponsor of the bipartisan Antisemitism Awareness Act that would require the Department of Education to use the controversial International Holocaust Remembrance Alliance definition of antisemitism — which classifies most anti-Zionism as antisemitic — when investigating allegations of discrimination. It passed in the House in 2024 by an overwhelming majority of 320-91, but was stalled in the Senate due to resistance over constitutionally protected free speech. It was reintroduced in the House last year.

More recently, Lawler partnered with Rep. Josh Gottheimer, a moderate Democrat from New Jersey, on a bipartisan House resolution condemning antisemitic rhetoric from online personalities including Hasan Piker and Candace Owens.

His close ties with Orthodox and Hasidic leaders have also become a hallmark of his political brand. During the 2024 campaign, Lawler brought former House Speaker Kevin McCarthy to visit the Hasidic communities and rabbinic leaders —and twice the current speaker, Mike Johnson — to shore up support for his reelection. Former Rep. Mondaire Jones, who ran against Lawler in 2024, had to delete a social media post that some deemed insulting to Orthodox Jews after he remarked that the former Republican leader’s meeting with Rabbi David Twersky, the 84-year-old spiritual leader known as the Skverer Rebbe in Rockland County, “was a waste of everyone’s time.”

Those relationships have given Lawler unusual credibility in communities that have historically leaned Democratic. Kamala Harris carried the district by a narrow 50-49 margin in 2024, and it voted for Joe Biden by a 59-39 margin.

The combination of his district’s demographics and his outspoken support for Israel has increasingly tied Lawler politically to Jewish communal issues.

“I am proud to be a Zionist,”  Lawler proclaimed at the annual legislative breakfast hosted by the Jewish Community Relations Council of New York in February,

A Lawler spokesperson did not make the congressman available for an interview with the Forward on Thursday.

At that breakfast,  Lawler joked about his physical resemblance to New York City Mayor Zohran Mamdani, whose handling of antisemitism and criticism of Israel has left many Jewish voters uneasy.

“I know some of you looking at me may look and say, ‘Looks like Zohran Mamdani,’” Lawler quipped, referring to their similar trimmed black beards. Noting that the two served together in the New York State Assembly and regularly played poker in Albany,  Lawler said the similarities end there.

“On issues of combating antisemitism and support of the State of Israel, there are strong differences,” Lalwker said. “And I think one of the things that I have spent my time in Congress focused on is strengthening the U.S.-Israel relationship and being unapologetic about it.”

Lawler is gearing up for a difficult reelection campaign. National Democrats see him as a top target. Five candidates are competing in the June 23 Democratic primary.

Earlier this year, Lawler challenged the Democratic candidates to condemn a TV ad sponsored by the Institute for Middle East Understanding, which attacked him for prioritizing aid to Israel. Lawler said the commercial “traffics antisemitic tropes.”

With a handful of suburban swing districts likely to decide control of the House, Lawler’s support among Jewish voters could once again prove politically decisive.

The post Why do some people think Mike Lawler is Jewish? appeared first on The Forward.

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Xi Tells Trump That Mishandling of Taiwan Could Lead to ‘Dangerous’ Place

Chinese President Xi Jinping inspects an honor guard with US President Donald Trump during a welcome ceremony at the Great Hall of the People, in Beijing, China, May 14, 2026. Photo: REUTERS/Maxim Shemetov/Pool

China’s President Xi Jinping warned US President Donald Trump on Thursday that mishandling the countries’ disagreements over Taiwan could push China-US relations to a “dangerous place,” as the two leaders met for a closely watched summit.

Xi‘s remarks on Taiwan, the democratically governed island claimed by Beijing, came in a closed-door meeting of the leaders of the world’s two largest economies that ran more than two hours, China’s foreign ministry said.

They represented a stark – if not unprecedented – warning during a pomp-filled occasion that was otherwise friendly and relaxed, although the US summary of the talks made no mention of Taiwan.

According to Chinese state media Xinhua, Xi, referring to Taiwan, told Trump: “If handled poorly, the two countries could collide or even enter into conflict, pushing the entire China-US relationship into an extremely dangerous place.”

Taiwan has long been a flashpoint in the US-China relationship, with Beijing refusing to rule out the use of military force to gain control of the island and the United States bound by law to provide Taipei with the means to defend itself.

US Secretary of State Marco Rubio, who is with Trump in China, confirmed to NBC News that the issue of Taiwan was discussed, saying the Chinese “always raise it on their side, we always make clear our position and we move on to the other topics.”

The US summary of the talks focused on the leaders’ shared desire to reopen the key waterway of the Strait of Hormuz, effectively closed due to the Iran war, and Xi‘s apparent interest in buying American oil to reduce China’s dependence on Middle East supplies.

With Trump‘s approval ratings dented by a war with Iran that shows no signs of abating, the first visit by a US president to China in nearly a decade has taken on added significance as he searches for economic wins.

“There are those who say this may be the biggest summit ever,” Trump told Xi in brief opening remarks, after a ceremony that featured an honor guard and throngs of children waving flowers and flags at Beijing’s Great Hall of the People.

Xi told Trump that preparatory negotiations between US and Chinese economic and trade teams in South Korea on Wednesday had reached “balanced and positive outcomes,” China’s foreign ministry said in a summary.

The talks aimed to maintain a fragile trade truce struck when the leaders last met in October, where Trump suspended triple-digit tariffs on Chinese goods and Xi backed away from choking global supplies of vital rare earths.

Treasury Secretary Scott Bessent, who led Wednesday’s talks, said he expected progress on establishing mechanisms to support future bilateral trade and investment, and an announcement about large Chinese orders for Boeing aircraft.

CHINA’S RED LINES

Trump expected Xi to raise the thorny issue of US arms sales to Taiwan, he said earlier this week. With the status of a $14 billion package awaiting Trump‘s approval still unclear, China has reiterated its strong opposition to the sales.

“US policy on the issue of Taiwan is unchanged as of today,” Rubio told NBC.

Trump did not respond to a reporter’s shouted question whether the leaders had discussed Taiwan as he posed with Xi later for photos at the Temple of Heaven, a UNESCO World Heritage Site where emperors once prayed for good harvests.

Taipei said there was nothing surprising from the summit and that China’s military pressure is the real threat to peace.

Underscoring its outsized importance to the US economy, Taiwan, an island of 23 million people, is the United States’ fourth-largest trading partner, behind China, which has about 1.4 billion people.

LOBSTER SOUP AND BEIJING DUCK

At a lavish state banquet attended by senior officials and business executives, Xi told the audience that the China-US relationship was the most important in the world.

“We must make it work and never mess it up,” Xi said, before guests tucked into a 10-course dinner that included lobster soup, Beijing roast duck and tiramisu.

The leaders will take tea and lunch together on Friday before Trump departs.

Joining Trump on his visit are a group of CEOs looking to resolve issues with China, from Elon Musk, viewed in China as a visionary and occasional villain, to Nvidia CEO Jensen Huang, a late addition to the delegation.

The United States has cleared around 10 Chinese firms to buy Nvidia’s powerful H200 AI chip, but not a single delivery has been made so far, Reuters exclusively reported.

TRUMP INVITES XI TO WASHINGTON

Trump entered the talks with a weakened hand.

US courts have hemmed in his ability to levy tariffs at will on exports from China and other countries, while the Iran war has boosted inflation at home and elevated the risk that Trump‘s Republican Party will lose control of one or both legislative branches in November’s midterm elections.

Though the Chinese economy has faltered, Xi does not face comparable economic or political pressure inside China, where he rules an authoritarian regime that, unlike the US, has little tolerance for dissent.

As well as Boeing jets, Washington is looking to sell farm goods and energy to China to cut a trade deficit that has long irked Trump. Beijing, for its part, wants US curbs eased on exports of chip-making equipment and advanced semiconductors, officials involved in the planning said.

Trump is expected to encourage China to convince Iran to make a deal with Washington to end the conflict, as a fifth of global supplies of oil and natural gas travel through the Strait of Hormuz in normal times.

But analysts doubt Xi will be willing to push Tehran hard or end support for its military, given Iran’s value to Beijing as a strategic counterweight to the United States.

Rubio told Fox News that it was in China’s interest to help resolve the crisis as many of its ships are stuck in the Gulf and a slowdown in the global economy would hurt its exporters.

Iran’s Fars news agency reported on Thursday that an agreement had been reached to let some Chinese ships pass.

Trump on Thursday invited Xi for a reciprocal trip to the White House on Sept. 24, in what would be his first visit to Washington since 2015 and his first to the United States in the US president’s second term.

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US Senate Blocks Latest Bid to Rein in Trump Iran War Powers, Support Grows

An American flag flies outside the US Capitol building at sunset, on Capitol Hill in Washington, DC, US, Jan. 30, 2026. Photo: REUTERS/Kylie Cooper

US Senate Republicans on Wednesday blocked the latest Democratic-led effort to end the Iran war until it is authorized by Congress, but the measure edged closer to passage as a third Republican voted to advance the bill.

The Senate voted 50-49 not to advance the war powers resolution, nearly along party lines. Three Republicans joined every Democrat but one in backing the measure sponsored by Senator Jeff Merkley of Oregon.

It was the seventh time this year that President Donald Trump‘s fellow Republicans in the Senate had blocked similar resolutions.

Republicans Rand Paul of Kentucky, Susan Collins of Maine, and Lisa Murkowski of Alaska voted in favor of moving ahead, while Democrat John Fetterman of Pennsylvania voted with Republicans to block it.

The vote was the first in the Senate since the conflict hit a 60-day deadline on May 1 for Trump to come to Congress about the war. Trump declared then that a ceasefire had “terminated” hostilities against Iran.

Under a 1973 US war powers law passed in response to the Vietnam War, a US president can wage military action for only 60 days before ending it, asking Congress for ​authorization or seeking a 30-day extension due to “unavoidable military necessity regarding the safety of United States Armed Forces” while withdrawing forces.

Democrats disputed Trump‘s assertion that the deadline did not apply because of a ceasefire, saying the conflict is ongoing.

“There’s not a cessation of war hostilities,” Merkley told reporters before the vote, citing the US blockade of Iranian ports and strikes on Iranian ships and Iran‘s blockade of the Strait of Hormuz and attacks on US ships and tankers.

“Both sides are still engaged in hostilities, and so I don’t accept that the 60-day clock is suspended,” he said.

Merkley and other Senate Democrats said they planned to bring up another war powers resolution next week, and every week until the war ends or Trump comes to lawmakers for authorization.

Democrats in the House have also introduced war powers resolutions, also blocked by Republicans.

Democrats have called on Trump ​to come to Congress for authorization to use military force, noting that the US Constitution says that Congress, ​not the president, can declare war. They have warned that Trump may have pulled the country into a long conflict without setting out a clear strategy.

Republicans – and the White House – say Trump‘s actions are legal and within his rights as commander-in-chief to protect the US by ordering limited military operations.

Some congressional Republicans have accused Democrats of filing the war powers resolutions only because of their partisan opposition to Trump.

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