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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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Israel gives in to the politics of debasement

A small episode this week crystallized the broader pathology of Israeli Prime Minister Benjamin Netayahu more clearly than any grand speech or ideological argument ever could: the Knesset vote for state comptroller, one of the most sensitive institutional positions in Israeli public life.

In Israel, the 120 members of the Knesset elect the comptroller by secret ballot. The office audits government ministries, investigates failures of governance, oversees public integrity, and possesses enormous influence over public accountability. In the aftermath of the Hamas attack of Oct. 7, 2023, and the Gaza war, the role carries even greater significance. The comptroller may shape future investigations into catastrophic national failures and wartime decision-making.

This week — in a move straight out of United States President Donald Trump’s playbook — Netanyahu nominated his longtime personal lawyer, Michael Rabello, for the role.

Historically, the comptroller’s office has been occupied by senior judges, jurists, or respected public servants with reputations for independence. Figures such as Miriam Ben-Porat, Eliezer Goldberg, and Micha Lindenstrauss embodied a certain ethos: they were stern institutional guardians standing somewhat above partisan warfare.

The idea of placing the prime minister’s own attorney into the country’s central oversight institution struck many Israelis as grotesquely inappropriate.

Yet the truly astonishing part came during the voting itself, in which the opposition candidate was a former justice on the Supreme Court — an institution Netanyahu’s coalition has long vilified. The first round reportedly revealed substantial defections among Netanyahu’s coalition. His preferred candidate fell short. Panic spread.

Suddenly, allegations and reports emerged that coalition lawmakers were being encouraged to photograph or film their ballots in order to prove their loyalty. There was a pause in the proceedings as the Knesset speaker, Likud’s Amir Ohana, received legal advice to not allow phones in the voting area. He restarted the vote anyway. Israeli media filled with coalition lawmakers posting images of themselves voting the right way. The images and reports were the excruciating stuff of banana republics.

I cannot recall ever seeing a similar scene in a functioning democracy. Rabello was elected.

Secret ballots exist precisely because democracies understand that free voting collapses when superiors can verify obedience. The entire purpose of ballot secrecy is to protect individuals from coercion, intimidation, retaliation and patronage systems.

Modern democracies adopted secret ballots in the nineteenth century to break the power of bosses, landlords, oligarchs, and political machines that demanded proof of loyalty.

The blatant violation of these norms by Netanyahu’s coalition helps explain why so many Israelis react to him not merely with opposition, but with exhaustion, fury, and moral revulsion.

It’s not just the corruption trials, the permanent manipulation, the serial falsehoods, the failed strategic assumptions about Hamas, the relentless cultivation of tribal resentment, the attacks on state institutions, the politics of personal loyalty and the transformation of every disagreement into an existential struggle between patriots and traitors. It’s the cumulative exhaustion of watching every institutional norm eventually be subordinated to the most vulgar politics imaginable.

The episode revealed something larger than one parliamentary scandal: the culture Netanyahu has spent years cultivating. It is a system organized increasingly around personal allegiance rather than institutional responsibility. A political environment in which independent judgment becomes suspicious, dissent becomes betrayal, and every institution gradually bends toward one man’s political ambition.

So we have here a prime minister under criminal indictment pushing his own lawyer into a top civil service oversight role.

Opposition leaders Naftali Bennett and Yair Lapid plan to appeal Rabello’s election to the Supreme Court, calling the vote “tainted.” Even that might not work. Several government ministers, including the justice minister, have suggested in recent months that they no longer consider court decisions binding.

And that is what outsiders often miss about Netanyahu fatigue in Israel. The anger does not emerge from one scandal, one trial, one war, or one speech. It comes from the constant sense of humiliation. This week, inside Knesset voting booths that were meant to be hidden from view, Israelis saw the whole story compressed into a single degrading scene.

The post Israel gives in to the politics of debasement appeared first on The Forward.

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My irrational, possibly problematic obsession with an $85 yarmulke

Growing up, we had a rule of thumb about yarmulkes: the closer yours was to your forehead, the more strictly religious you were. The frum bochurim placed theirs practically on their noses; the boys from Conservative families bobby-pinned their kippahs on the back of their heads, like climbers gripping a rockface. The cool kids, of course, stuffed theirs in their pockets.

The Jewish skullcap, in other words, was a signifier of much more than the religious precept it embodied. Over the years not only a yarmulke’s positioning but also its style, size and material have come to place its wearer somewhere on a continuum of Jewish identity. Trends in yarmulke wearing, then, may tell us a story about where Judaism is — forgive me — headed.

So what kind of Jew wears an $85 yarmulke, and what kind of Judaism demands it? These questions gnawed at me when I first learned about Rubenstein Paris, a new kippah couturier whose ads found me on Instagram. Available in a range of expensive-looking solid colors (copper, cream, sapphire) and fabrics (velvet, corduroy, even horsehair), these kippahs are here to replace your tattered souvenirs.

“Everybody’s just walking around with their kippot from — I don’t know, Mendel and Rachel’s wedding, 2019,” Jonathan Hirsch, Rubenstein’s German-Israeli founder, told me recently. “I was like, ‘It’s such a sacred item, you know? Why isn’t there any beautiful kippah, that you can really acknowledge for what it is?’”

Hirsch and me on Zoom. Photo by Louis Keene

He’s onto something. Even as an image-conscious, Shabbat-observant millennial, I had largely neglected the yarmulke; when I wanted to look sharp, I ditched it. I was not completely out on Jew-caps, to be sure — like every other frat boy who thought Mac Miller was Moses, I went through a vintage snapback phase in college. But when I’ve had to clip up, I’ve made do with whatever I had lying around — usually something suede, dark, and folded more times than an origami fortune teller.

Hirsch offered to send a freebie, but at $85, accepting it felt compromising. The loaner we agreed to instead came in a branded drawstring bag, which was accompanied by a sleek black storage box. Though I’d secretly hoped for the horsehair model, the kippah Hirsch sent was more utilitarian: a ribbed velvet, golden brown, with the rise and structural integrity of one of those dome-houses you see in Architectural Digest. Velvet piping twisted around its circumference; its cloth inner lining depicted a globe and a shofar.

I put it on.

Skullcap semiotics

Attention to detail. Photo by Louis Keene

The story of the kippah begins in the Talmud, when 3rd-century sage Rav Huna proclaimed that he never walked more than four cubits without his head covered to symbolize that the divine presence was always above him. After rabbinic law codified the practice in the 1500s, the kippah evolved into a marker of Jewish cultural mores.

For example, 20 years ago, most Modern Orthodox boys wore black suede kippahs, but today, as people debate whether Modern Orthodoxy is dead, suede is disappearing, replaced by black velvet, the standard among Haredi Jews, and the kippah sruga — the crocheted yarmulke associated with the Israeli Religious Zionist movement. Pluralism out, orthodoxy in.

But it’s also a fraught moment to be displaying any marker of Jewish identity. Wearing a kippah in public makes you subject to a certain type of attention these days: the glare of being Jewish at a time when the Jewish state is embroiled in enormously unpopular and destructive wars. Hirsch, who is 29 and lives in Berlin, knows this firsthand — these days he doesn’t feel safe wearing a kippah in public.

And yet I suspect that growing Jewish isolation also puts the lie to our assimilation fantasies; it makes us more likely to wear the things that attach us to each other. Indeed, there is a renaissance in Judaica today driven by new designers and younger consumers finding joy in their heritage. The name Rubenstein is a play on Hirsch’s middle name, Reuven. But he also just thought it sounded cool.

All about the Benyamins

First ironically, then with some resignation, I found that the Rubenstein was the only kippah I wanted to wear — my fancy kippah became my everyday kippah. Putting it on was a daily treat — I was humored by the upgrade. I began picturing how gloomy and shallow life would be without it. I debated the unthinkable — ponying up to keep the loaner.

I was still conflicted about the idea of the object, which felt like a metaphor for the sticker-shock that accompanies Jewish life, especially Orthodox life, in the U.S. today. There’s the skyrocketing cost of real estate in Jewish neighborhoods, the eyewatering day school tuition, even the price of kosher meat and grape juice. Was it an $85 kippah, or a yeshiva-league Sorting Hat?

I put the questions to Hirsch. There are very few ritual objects, he pointed out, from the kiddush cup to candlesticks to one’s tallit, that we pride ourselves on buying cheap. Why should kippot be the exception? “You’re giving your humility a bigger meaning,” he said, “by the fact that you’re wearing this on your head.”

It was true — I felt more humble than ever before, and expected others to acknowledge my commitment and my sophistication. I can see you are a man of taste, they would say, presumably lowering a monocle. (I would nod, then dip my double-dark chocolate Milano cookie into a steaming teacup.)

It was true my designer yarmulke was not the conversation starter I’d anticipated. Only one person complimented me on it unprompted — that singular infallible judge of quality, my mother. Everyone else, I’m certain, was stealing covetous glances. But they didn’t need to praise, ask about, or even notice my beloved yarmulke, which I’m sure I’ll return soon. The premium fabrics, the shofar in the lining and the devotion it all symbolized were between me and Hashem.

The post My irrational, possibly problematic obsession with an $85 yarmulke appeared first on The Forward.

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How Iran is outsourcing terror plots against Jews

The prosecution of an Iraqi national in connection with thwarted alleged terror plots in the U.S. and Europe has put the behind-the-scenes role of Iran in the spotlight — part of what security experts say is a growing and hard-to-trace threat.

Mohammad Baqer Saad Dawood Al-Saadi, a 32-year-old Iraqi national accused of ties to an Iran-backed militia, pleaded not guilty in Manhattan federal court this week to charges linking him to a series of attacks and alleged terror plots targeting American interests and Jewish communities in Europe and the United States.

Prosecutors allege Al-Saadi was connected to attacks, including the stabbing of two Jewish men in London’s heavily Jewish Golders Green neighborhood and an arson attack on a synagogue in North Macedonia. They also accuse him of attempting to recruit individuals online to firebomb synagogues in New York, Los Angeles and Scottsdale, Arizona.

He also reportedly planned to attack Ivanka Trump, who is both the president’s daughter and an Orthodox Jew — making her a “double target,” in the words of Oren Segal, vice president at the Center on Extremism at the Anti-Defamation League.

Iranian attacks on Jewish and Israeli institutions abroad are not new. Since the 1979 Islamic Revolution, Iran and its proxies have targeted diplomats, Jews, Israelis, political dissidents and others perceived as aligned with the West.

Matthew Levitt, director of the Counterterrorism and Intelligence Program at the Washington Institute for Near East Policy, maintains a detailed database of such attacks. He told the Forward that since the current war began, such plots have significantly increased.

The Al-Saadi case is a prime example of what Levitt calls Iran’s “gig economy” model of terrorism. Rather than dispatching trained operatives directly from Iran, Iranian-linked actors and proxy groups are recruiting individuals online who live in the country they wish to target. Some are not even aware they are attacking on behalf of Iran or its proxies.

In court filings, prosecutors allege that Al-Saadi, who prosecutors link to the terror organization Kata’ib Hezbollah and Iran’s Islamic Revolutionary Guard Corps, sent maps and photographs of a prominent Manhattan synagogue and other Jewish institutions to an undercover agent he was attempting to recruit to firebomb them. He allegedly offered the agent $10,000 in cryptocurrency in exchange for carrying out the plot, and discussed whether the recruit should “set the place on fire” or use an improvised explosive device.

Iranian-linked operatives, who are either part of Iran’s security apparatus or within its network of terror proxies, reach out to potential recruits on encrypted platforms like Telegram.

According to Levitt, the operatives are ordered by “very senior” elements of the Iranian regime to find recruits. “It stretches the limits of credulity to think that plots like this in the United States could be done without very senior top-down instruction,” Levitt said. “These are not rogue actors.”

Those they manage to recruit online are often financially motivated, agreeing to carry out attacks like vandalism, surveillance, or assaults in exchange for cryptocurrency payments. Others appear driven by ideology or online radicalization. Over the years, Iran’s recruits have included teenagers as young as 13.

“These are inexpensive plots,” said Levitt. “It requires just a few people to sit at a computer and try to recruit people and direct people.”

For Iran, this method is particularly strategic amid wartime. “Iran can’t go toe to toe with the U.S. or Israeli militaries, but it can engage in these asymmetric plots to show that they can still reach out and touch us to increase the cost of continuing to prosecute the war and to make people feel afraid,” said Levitt.

By relying on online recruits and loosely connected operatives, Levitt says Iranian-linked actors can obscure their involvement and maintain reasonable deniability. The calculation, he explained, is that authorities will be satisfied with arresting and prosecuting the individual carrying out the attack, rather than blaming Iran. This allows Iran to limit the risk of direct military escalation with the United States while continuing to conduct operations against it.

The Online Battlefield 

According to Segal, Iranian influence increasingly permeates online.

“The threat to Jewish communities right now is multidimensional — Iranian-linked plots, cyberattacks, online propaganda,” he said. “They’re all converging at once, making it one of the more complex threat environments for the Jewish community in a long time.”

For years, Iranian state media outlets such as Press TV have targeted Western audiences with antisemitic content, including Holocaust denial, claims that Zionists control world events and other extremist narratives. A 2023 report by the ADL and the Center for Countering Digital Hate found that Press TV receives roughly one million monthly visits, with more than half of its traffic coming from Western countries.

Segal said Iranian-linked propaganda networks also increasingly operate in online spaces that overlap with broader activist communities. One such example is Resistance News Network, a Telegram channel with over 150,000 subscribers frequented by members of pro-Palestinian activist groups like Students for Justice in Palestine. The channel is filled with official Hamas, Hezbollah, and Houthi propaganda that is then reshared by American activists on mainstream social media accounts.

“What that does is enable the exchange of ideas, of propaganda, and of narrative that we then see show up at actual events on the ground,” he said.

Segal argues that exposure to such propaganda can make recruitment efforts easier.

“Our concerns are not only from somebody who may have been placed here or somewhere in Europe,” said Segal, “but from individuals who are animated by the propaganda they ingest every single day.”

Levitt agreed, stating that rising antisemitic and anti-Israel sentiment since the outbreak of the Gaza war has created a larger pool of individuals who may view attacks on Jewish or Zionist targets as justified.

“A lot of people are going to be much more willing to do something … especially if it’s not actually killing someone, but fire bombing something and/or targeting property that has symbolic value,” he said.

But the threat is not limited to physical violence.

Since the war began, Segal said Iranian-linked cyberattacks have “gone into overdrive.”

He says Jewish organizations and media outlets have faced hacking attempts on their websites, while Jewish individuals have had their identities stolen, with personal information being exposed online in mass doxxing campaigns.

Many such attacks are conducted by Iranian hacking collectives. One of the most notorious among them is Iranian hacker group Handala Hackers, which has conducted several attacks against Jews, Israelis and Americans. The FBI reported that in March, the group claimed to have stolen 851 gigabytes of confidential data from Sanzer Hasidic Jewish community members, which the hackers described as “documents of financial cooperation, witchcraft ceremonies, and secret correspondences with Netanyahu …” They added, “We warn the leaders and members of the Sanzer Hasidic community: No place is safe for you. Betrayal of the oppressed leads to nothing but disgrace and shame. Expect more documents to be revealed.”

Despite the growing number of plots, experts say the relative lack of successful attacks inside the United States reflects the effectiveness of American counterterrorism efforts.

Still, Jewish communities across the United States are investing heavily in security upgrades. Asher Lopatin, director of community relations at the Jewish Federation of Greater Ann Arbor, said synagogues in Michigan have increased security following a March attack on Temple Israel in West Bloomfield by a Hezbollah-linked man. Communities are installing bollards, expanding surveillance systems, and hiring additional guards.

“People are definitely doubling up on security,” Lopatin said. “Everyone is traumatized.”

Levitt says that even after the war concludes, he does not expect the plots targeting American interests and Jews to cease.

“I do not think that when the war ends, these necessarily stop,” Levitt said. “The pace may change, but Iran has a distinct interest in exacting revenge for all the damage that was done to it.”

The post How Iran is outsourcing terror plots against Jews appeared first on The Forward.

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