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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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Sister of pro-Israel stalwart Lindsey Graham secures GOP Senate nomination
(JTA) — South Carolina Sen. Darline Graham defeated U.S. House Rep. Ralph Norman in a special primary runoff on Tuesday, putting her in a dominant position to win the Senate seat left vacant with the death in July of her older brother, the pro-Israel stalwart Lindsey Graham.
The Associated Press called the race two hours after polls closed at 9:01pm. By the time 99% of votes were tallied, Darline Graham had secured 52.3% of the votes to Norman’s 47.7%.
“Tonight is a great victory, but it’s not the finish line,” Graham told her supporters on Tuesday night. “In fact, it is the starting line for an even bigger fight, which lies ahead.”
If Darline Graham goes on to win November’s general election against Democrat Annie Andrews, she will have big shoes to fill. Her brother served 23 years in the Senate and eight in the U.S. House. He traveled to Israel about a dozen times between Hamas’s Oct. 7, 2023 attack on the Jewish state and his death at age 71.
Heading into the primaries, analysts expressed no doubt that Darline Graham would be pro-Israel. But matching Lindsey Graham’s level of foreign policy activity, they warned, would be a formidable task. Meanwhile, her campaign to date has largely avoided discussion of international affairs. Instead, she has focused on domestic concerns like reducing spending, securing borders and promoting Trump-backed policies.
During a debate aired on C-SPAN last week, Graham struggled to respond to a foreign policy question about Taiwan and the South China Sea, ultimately admitting that she’s “not that informed on national security.”
“I’m not a polished politician up here,” she said. “National security is not my thing, not my area of expertise.”
Later addressing issues of affordability, Graham linked the domestic economic situation to the war in Iran and said she trusts President Donald Trump “to get the Strait of Hormuz open.” She also voiced her preference for financial sanctions over putting troops on the ground.
Asked about the country’s relationship with Israel, Graham described the Jewish state as “one of our strongest allies.” Recognizing her brother’s close relationship with Prime Minister Benjamin Netanyahu, she added that during a recent meeting with the Israeli premier, she vowed to “continue supporting Israel in any way” she can.
“We have to stand with Israel,” Graham said.
At their previous face-off, Graham had secured 33% of the vote, while Norman came in second place, at 25%, against eight fellow Republicans. But South Carolina requires primary winners to earn a majority of votes in order to avoid a two-candidate runoff. In the November general election, Graham will contend with Democrat Annie Andrews, a pediatrician who is unlikely to prevail in the solidly Republican state.
Tuesday’s runoff marked the third time in two months that South Carolina Republicans came to the polls to select a Senate candidate. Lindsey Graham, won the first primary in June but died suddenly the next month from an aortic dissection.
A few days later, South Carolina Gov. Henry McMaster, a Republican, appointed Darline Graham to finish her brother’s term. Though she only had minimal policy experience, including a leadership role at the South Carolina Commission for the Blind, she earned President Donald Trump’s endorsement and declared her candidacy in the full race.
Trump celebrated Graham’s nomination in a Tuesday night Truth Social post, writing that “Darline Graham rides Trump endorsement to win GOP nomination for brother’s South Carolina seat.”
Graham thanked Trump profusely during her Tuesday night acceptance speech, recognizing the president as one of her brother’s “closest friends” and crediting him for helping her secure a victory.
Norman, meanwhile, thanked his supporters on Tuesday night for their “prayer crusade of a campaign,” stressing that he “did not prepare a concession speech.” He accused “outside PACs” of spending $8 million opposing him and blamed the Democrats for this situation, adding that “they got what they wanted.”
He recognized Trump’s role in the race as a supporter of Graham, noting that he “never understood why he got involved” but that it is the president’s prerogative to do so. Nonetheless, Norman pledged that there “won’t be any tears” and that he planned to back Graham.
“I’m not supporting a Democrat, so I will support her, Darline, as best I can,” he added. “We’ll live to fight another day.”
This article originally appeared on JTA.org.
The post Sister of pro-Israel stalwart Lindsey Graham secures GOP Senate nomination appeared first on The Forward.
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Progressive politics notches another deep-red win in Oklahoma race, bolstered by anti-AIPAC messaging
(JTA) — Oklahoma nurse and activist N’kiyla Jasmine Thomas, who ran a campaign with anti-AIPAC messaging, defeated centrist Jim Priest in a Democratic Senate primary runoff on Tuesday that marked the latest victory for a progressive politician in a solidly conservative state.
The Associated Press called Tuesday’s race, a sequel to the state’s June primary, less than an hour after polls closed. By the time 80% of votes were tallied, Thomas had accrued 59.9% of the votes to Priest’s 40.1%.
Like many progressives in the current election cycle, she repeatedly vowed during her campaign to reject funds from the American Israel Public Affairs Committee, the influential pro-Israel lobby.
Although AIPAC has not participated in this race, Thomas posted a social media reel in November that showed her pulling a giant red trash bin, labeled “AIPAC Funds” and “Corporate PAC Funds.” Adjacent to the reel is a caption that reads, “Just taking out the trash.”
“I am a sole grassroots candidate,” she said in the reel. “And we are not accepting AIPAC or corporate PAC funds. It’s garbage.”
Asked about her rhetoric on AIPAC, Thomas told the Jewish Telegraphic Agency in a written statement that her “concerns [with AIPAC] have NEVER been about Jewish people, Judaism, or Israel’s existence,” adding that she instead prioritizes human rights, civilian lives and the accountability of all governments.
“When I discuss political influence or organizations, my focus is on the broader role of money, lobbying, and special interests in our political system, not on any one religion or community,” she added.
In their previous matchup, a five-candidate race, neither candidate had earned the majority required to secure a win. Thomas earned 45% of votes in June, while Priest, a lawyer and ordained minister, accrued 24%.
Heading into Tuesday’s runoff, it was already clear that both Thomas and Priest would be longshots this November in a state that hasn’t sent a Democrat to the Senate in more than three decades. The Republican opponent, Rep. Kevin Hern, swept his primary and has the endorsement of President Donald Trump.
But Thomas’s win served as yet another litmus test on the potency of progressivism in a deep-red state, just a week after democratic socialist Angie Nixon knocked trounced a moderate candidate in Florida’s Democratic Senate primary.
Thomas, unlike Nixon, is not a member of Democratic Socialists of America, but she has openly identified with socialist policies. The 31-year-old is a citizen of the Chickasaw Nation who says she represents “the next generation of leaders.” Among her priorities are women’s health and safety, civil rights and LGBTQIA+ protections.
During a debate this past Saturday, both Thomas and Priest described a “genocide” in Gaza. Priest linked the word to Israel, while Thomas connected it to the actions of Prime Minister Benjamin Netanyahu.
She emphasized that “we can be for our Jewish brothers and sisters, and we can be against Netanyahu and what he is doing.”
“He is committing genocide. He is absolutely murdering children,” Thomas said at the debate. “We have to stop providing funding for these wars.”
In her statement to JTA, Thomas expressed her commitment to a two-state solution, adding that “both Israelis and Palestinians deserve the opportunity to live in peace, security and self-determination.”
This article originally appeared on JTA.org.
The post Progressive politics notches another deep-red win in Oklahoma race, bolstered by anti-AIPAC messaging appeared first on The Forward.
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Montreal passes Palestinian solidarity motion after removing text on cutting ties with Israel
(JTA) — Montreal has passed a motion of solidarity with Palestinians after stripping a clause that called for severing institutional and diplomatic ties with Israel.
Montreal’s city council late Monday adopted the measure, which also removed earlier references to Israeli “apartheid” and “genocide,” after a contentious debate about the role of local government in denouncing conflicts abroad. The amended motion passed with 54 councillors voting in favor and six against.
The motion was introduced by Projet Montréal, a progressive, environmentalist municipal party that forms the opposition in the city council. An original version demanded the city “immediately suspend its institutional ties with the current government of Israel, its institutions, and its municipalities.” Major Canadian Jewish organizations pushed to discard that clause.
Montreal Mayor Soraya Martinez Ferrada clashed with progressive councillors during Monday’s debate. She argued that it was not the role of a city government to make determinations about international crises, saying that “recognizing the limits of our institution is not turning a blind eye to Gaza.” Changes to the final motion from Martinez Ferrada’s administration focused on diversity and inclusion in Montreal.
According to the original proposal by Projet Montréal, Israeli government representatives would no longer have been invited to Montreal City Hall until Israel “returns to its internationally recognized borders, ceases its violations of the rights of the Palestinian people and ends its violations of international law.”
The initial motion also stipulated that Montreal “recognizes and denounces the apartheid regime imposed in Palestine and the genocide perpetrated there,” citing definitions of “apartheid” and “genocide” that international human rights groups and scholars have used to describe Israel. Another clause condemned rising antisemitism and said “the Jewish communities of Montreal and elsewhere, as well as people of Israeli origin, cannot be held responsible for the actions of the State of Israel.”
The measure’s dilution comes after national Jewish organizations raised strong opposition to the initial language. B’nai Brith Canada said in an open letter to the city council earlier this month that it would be “inappropriate and exacerbate tensions between communities” if Montreal weighed in on the Middle East.
“It is deceitful and inflammatory to conflate Israel with Apartheid South Africa, and Canada has rejected the view that Israel’s actions constitute apartheid,” the group said. “No court of competent jurisdiction has found that a genocide has occurred.” B’nai Brith also linked the proposed policy with antisemitism, saying it would “further normalize the targeting of our Jewish community.”
After Monday’s vote, B’nai Brith Canada celebrated the motion’s transformation.
“We are pleased that the city council did not adopt the deceitful and distorted language contained in the original motion,” Paola Samuel, the regional director for Quebec and Atlantic Canada, said in a statement.
Rabbi Yehoshua Ellis, a member of the clergy at the Montreal-area synagogue Shaar Hashomayim, told the Jewish Telegraphic Agency that the final motion resulted from Jews “mobilizing” in support of Israel.
Projet Montréal called the solidarity motion a “historic breakthrough,” but lamented the changes that “significantly weakened the scope of the original motion.”
“Palestine deserves the same solidarity as Montréal has expressed towards so many other peoples,” the party said in a social media statement. “Thousands of Montréalers have loved ones directly affected and we have the responsibility to stand by their side.”
This article originally appeared on JTA.org.
The post Montreal passes Palestinian solidarity motion after removing text on cutting ties with Israel appeared first on The Forward.
