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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.
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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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Candidate who vowed to imprison ‘American Zionists’ loses in Texas runoff
(JTA) — Sheriff’s deputy Johnny Garcia won the Democratic nomination Tuesday in Texas’ 35th Congressional District, defeating opponent Maureen Galindo following a race shaped by scrutiny over Galindo’s antisemitic rhetoric.
The runoff in the San Antonio race drew national attention after Galindo, a local housing activist and therapist, came under scrutiny for comments that included vows to turn a local immigrant detention center “into a prison for American Zionists” and claims that it was her “perception that Zionist billionaires run the world.”
Following Galindo’s surprise first-place finish in the march primary, national Democratic leaders and Jewish organizations condemned her rhetoric and urged voters to reject her candidacy, including Texas Senate candidate James Talarico, who revealed to JTA earlier this month that he would not back or campaign with Galindo.
The district, which stretches between San Antonio and Austin, was heavily affected by Republican redistricting this year, one of several factors that local political observers and Democratic Party leaders said contributed to Galindo’s earlier win.
The race also attracted outside spending, with Lead Left PAC, a newly launched super PAC apparently tied to a Republican donation platform, pouring over $900,000 on ads and mailers promoting Galindo. Last week, the Democratic Congressional Campaign Committee launched a $35,000 ad buy against Galindo, an unusual step for the DCCC to take against a Democratic candidate.
“Republicans just spent weeks and almost a million dollars propping up an antisemite, and they should be ashamed and embarrassed — it was a disgrace,” the president of the Democratic Majority For Israel PAC, Brian Romick, told JTA in a statement. “Tonight is a victory for the voters of TX-35, for the Democratic Party, and for every Democrat who believes that antisemitism has no home in our coalition.”
Romick told JTA Tuesday night that he believed the results of the runoff signaled that Democratic primary voters “aren’t going to elect antisemitic candidates, and in the districts that we need to win, pro-Israel candidates are our best bet.”
Garcia will now face Republican nominee Carlos De La Cruz, who defeated opponent John Lujan, in the Nov. 3 general election.
This article originally appeared on JTA.org.
The post Candidate who vowed to imprison ‘American Zionists’ loses in Texas runoff appeared first on The Forward.
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Ukraine reburies Nazi collaborator with state honors, drawing Israeli condemnation
(JTA) — Israel criticized Ukraine Monday after President Volodymyr Zelensky gave full state honors to a Ukrainian nationalist leader who was part of a movement that collaborated with the Nazis during World War II.
During a reburial ceremony on Sunday, Zelensky described Andriy Melnyk and his wife, Sofia Fedak-Melnyk, as “iconic Ukrainians of the 20th century who are deeply respected,” according to The New York Times.
Melnyk led one of the factions of the Organization of Ukrainian Nationalists during its collaboration with Nazi Germany during World War II. Though the Ukrainian organization shared a mutual opposition to Soviet rule with the Nazis, it also promoted antisemitic rhetoric and some of its members participated in the persecution of Jews during the Holocaust. Melnyk initially sought cooperation with Nazi Germany but was later detained by the Nazis as relations with Ukrainian nationalist groups deteriorated.
The ceremony marked the latest flashpoint in a longstanding dispute over Ukraine’s commemoration of World War II-era nationalist figures linked to Nazi collaboration. In 2018, the country designated the birthday of Nazi collaborator Stepan Bandera as a holiday, and in 2017, a statue was unveiled honoring a nationalist leader whose regime killed tens of thousands of Jews in pogroms during the Russian Revolution.
The remains of Melnyk and his wife were exhumed from Luxembourg last week and then transported to Ukraine for reburial at Kyiv’s National Military Memorial, which opened last year for soldiers killed in Russia’s invasion of Ukraine.
“Glory to every Ukrainian hero! Glory to all our Ukrainian warriors! Glory to our people!,” Zelensky, who is Jewish, wrote in a post on X marking the ceremony, adding that he was “grateful to everyone who has worked to make such returns of great Ukrainian figures possible and to give the Ukrainian People their own pantheon of heroes.”
The reburial was quickly decried by Yad Vashem, Israel’s Holocaust memorial, which wrote in a post on X that it was “deeply troubled by such national commemorations, which come at the expense of historical truth and the memory of Holocaust victims.”
“Honoring the leader of a movement that supported and collaborated with Nazi Germany during the persecution and murder of millions of Jews undermines the moral integrity essential to Holocaust remembrance,” the post read.
Israel’s Foreign Ministry wrote on X that there is “no place for ignoring historical truth and the memory of the victims murdered by the Nazis and their collaborators.”
The post Ukraine reburies Nazi collaborator with state honors, drawing Israeli condemnation appeared first on The Forward.
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Trump administration again sues UCLA over antisemitism, alleging ‘hostile educational environment’
(JTA) — The U.S. Department of Justice sued the University of California for the second time this year over allegations of an antisemitic campus environment at UCLA, claiming the school “was deliberately indifferent to the suffering of its Jewish and Israeli students” after Oct. 7.
The federal lawsuit, filed Tuesday, claims UCLA violated the students’ civil rights by failing to intervene during pro-Palestinian encampment activity in early 2024. It follows an earlier suit that focused on the university’s treatment of its Jewish and Israeli employees, and comes 10 days after the university unveiled its own “Initiative to Combat Antisemitism.”
“Earlier this year, we sued UCLA for subjecting its Jewish and Israeli employees to an antisemitic hostile work environment,” assistant U.S. attorney general Harmeet Dhillon said in a press release. “Now, the Department of Justice calls UCLA to account for its toleration of the equally appalling hostile educational environment against its Jewish and Israeli students.”
Requests for comment to the Justice Department and UCLA were not immediately returned.
The new suit draws on widely reported accounts of UCLA’s campus environment in spring 2024, when protesters in pro-Palestinian encampments clashed with pro-Israel counter-protesters, sparking violence and turmoil. The failure to protect Jewish students violated their Title VI civil rights, attorneys said.
Citing the report of UCLA’s own task force on antisemitism, published in response to the 2024 campus upheaval, the suit states, “UCLA’s leadership apparently preferred a do-nothing ‘de-escalation strategy’ to protecting their Jewish and Israeli students from an angry mob organized by peers armed with tasers, lumber, and a sword.”
The Justice Department is seeking several redress measures, including the return of all federal grants made to UCLA “during the time of UCLA’s noncompliance with Title VI.” The school had previously resolved several Title VI antisemitism cases under the Biden administration, and also reached a $6.13 million settlement with Jewish groups in a private suit related to the spring 2024 incidents on campus — a case cited in DOJ’s new lawsuit.
The Trump administration has sought to make a particular example of UCLA in its aggressive approach to campus antisemitism. Officials had sought to levy fines in excess of $1 billion against the public university for its alleged failure to protect Jewish and Israeli students, until a federal judge intervened. Several DOJ lawyers have left the department over its UCLA investigation, telling reporters the case was “fraudulent,” a “sham” and driven by pressure to “find” evidence to support further legal action against UCLA.
In addition, some of the most violent clashes on the campuses included perpetrators on both sides of the conflict, leading some members of the UCLA Jewish community to complain that pro-Israel counter-protesters ultimately undercut the Jewish students’ legitimate grievances regarding the harassment they had been facing inside the campus gates.
And the campus environment for Jews remains tense. Last month, the UCLA student senate condemned a campus visit by a freed Israeli hostage, drawing blowback from a university regent.
The post Trump administration again sues UCLA over antisemitism, alleging ‘hostile educational environment’ appeared first on The Forward.