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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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How much will Trump’s endorsement help Netanyahu?

(JTA) — JERUSALEM – Within minutes of President Donald Trump endorsing Prime Minister Benjamin Netanyahu in a post on Truth Social Sunday, Netanyahu’s campaign team had released a 30-second clip showing all the times Trump has lavished praise on the Israeli leader over the past few years.

With polls showing that Netanyahu and his governing coalition are slipping in their struggle to retain power in the upcoming Oct. 27 election and lag behind the opposition bloc, an endorsement from the president of the United States is a powerful statement.

But is it enough to tip the scales?

“I don’t think it will change anything,” said Ilana Shpaizman, a senior lecturer in the Department of Political Studies at Bar-Ilan University.

Of course, she said, “Netanyahu will say this is the proof that I’m a leader and all that, and I can speak to Trump … But so what? His followers already know that and they believe in him. They don’t need the endorsement.”

Those who oppose him, Shpaizman continued, “know that Trump forced him (Netanyahu) to accept the ceasefire in Gaza and accept the hostage deal, and that Trump runs the show around Iran. So they also don’t need the endorsement either,” Shpaizman said.

Some pundits speaking on Israeli news outlets criticized Trump for “interfering” in Israel’s election, while others put it down to the fact that Trump does not want America to return to fighting Iran alone if Netanyahu, who is hawkish on Iran, is replaced by someone less willing to act militarily. If Netanyahu loses, that is a scenario that could play out.

“This is the first time ever that the president, at least publicly, endorses a candidate in Israel’s election,” Bushinsky, a political commentator and former adviser to Netanyahu, told the Jewish Telegraphic Agency.

Bushinsky said he remembered Netanyahu complaining about U.S. intervention in previous elections in 1999 and 2001, when presidents less enamored of him were in office. He even pushed for an initiative that would block foreign funding for election campaigns.

Now, Bushinsky said, “I guess he is not complaining,” adding that the endorsement serves Netanyahu in two ways.

First, it signals that Trump thinks that Netanyahu is the most suitable guy for the job. Second, it puts Netanyahu’s election campaign back on track, refocusing attention on an issue where Netanyahu is strong – Iran.

“It lets him say ‘I can now finish a job, and I can finish a job with Trump,’ and ‘without Trump or without me, the job will not be finished,’” said Bushinsky.

He said that in the last few days, the political debate had pivoted to other issues such as Ashkenazim vs Sephardim, the draft law and the contentious efforts by the outgoing government to overhaul the judiciary.

“This [endorsement] is the ultimate campaign boost for Netanyahu,” Bushinsky said.

But that boost might not be enough.

Most of the polls taken in recent days show the opposition bloc led by former IDF chief Gadi Eisenkot pulling ahead of Netanyahu’s ruling coalition, but give neither bloc enough seats to gain the necessary 61 of 120 seats in Israel’s parliament, the Knesset, to form the next government.

“I think this might give Netanyahu one more seat, one more mandate, but not more than that,” said Bushinsky.

Prof. Tamar Hermann, director of the Israel Democracy Institute’s Viterbi Center for Public Opinion and Policy Research, said that the timing of Trump’s support for Netanyahu in this election race had come both “too late and too early.”

“It’s too late because people have already decided electoral preferences. They may shift within each bloc, but will not move between the blocs because of this,” she said. “And it’s too early because there are nine days to go to the elections, and we can already see other American leaders spilling some cold water over what he said, even on the Republican side of the aisle.”

This criticism, Hermann continued, will be transmitted to Israeli voters, and they will see that Trump is facing a huge battle in the upcoming midterm elections.

“The image of President Trump has deteriorated significantly since April 26, when he started the negotiations with Iran,” she said, pointing to one of the IDI’s recent public opinion surveys that found the president’s popularity had plummeted after he stopped the war with Iran without totally removing the threats against the State of Israel.

According to that poll, the Israeli public’s confidence in Trump as someone dedicated to Israel’s security fell from around 70% to just 42%.

“In my view, the endorsement will not make a big change,” Hermann added. “It will just strengthen Netanyahu’s political supporters, who will see it as a sign that he is still the internationally known figure that even the president of the United States is endorsing.”

She concluded, “The meaning of endorsement in Israel is totally different than in the United States … we are not that used to this kind of move, and it will not make people change their minds.”

This article originally appeared on JTA.org.

The post How much will Trump’s endorsement help Netanyahu? appeared first on The Forward.

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Trump endorses Netanyahu for reelection, warning Israelis against choosing another leader

President Donald Trump endorsed Israeli Prime Minister Benjamin Netanyahu for reelection, giving his longtime ally a major boost just nine days before Israel’s Oct. 27 election, which polls indicate could end without a clear winner.

“Please let this letter serve to represent my complete and total endorsement of Bibi Netanyahu in his upcoming race for re-election as Prime Minister of Israel,” Trump wrote Sunday in a lengthy post on Truth Social, praising Netanyahu as a strong leader and trusted partner in confronting Iran.

Netanyahu, Israel’s longest-serving prime minister, is seeking a seventh term after surviving political crises that repeatedly appeared likely to end his career — most significantly after the Oct. 7, 2023, Hamas attack. Recent polls suggest neither Netanyahu’s right-wing coalition nor the opposition is sure to win the 61 seats needed to form a government in the 120-member Knesset.

In his endorsement, echoing the sentiment of Netanyahu’s campaign, Trump warned Israeli voters that choosing anyone else as prime minister could put more pressure on the United States to deal with threats in the Middle East alone. “If Israel has the wrong leader, which would be anyone other than Bibi, America will have to do this work ourselves, and I am not inclined to do so,” Trump wrote. “Bibi Netanyahu has been strong, brave, and brilliant in the face of tremendous opposition, including that coming from even Israel, itself.”

Gadi Eisenkot, a former IDF chief of staff whose son was killed in the Gaza war, has emerged as Netanyahu’s chief rival. Eisenkot has floated a path to a government that does not require a majority in the Knesset. However, one of his partners in the anti-Netanyahu bloc, Avigdor Lieberman, has said in recent days he would oppose such a move. Recent polling puts Lieberman’s party at an average of eight or nine seats — enough to give Lieberman leverage in who leads the government.

Trump’s endorsement came hours after Netanyahu appeared on another program, the Fox News show Life, Liberty & Levin hosted by journalist and commentator Mark Levin. Netanyahu spoke glowingly of Trump and the importance of his battle to destroy the Iranian threat, as the American public prepares to head to the polls for midterm elections on Nov. 3. In that race, Republicans are fighting to maintain control of the House and Senate.

The U.S. war with Iran, which has slowed the flow of oil through the Strait of Hormuz causing gasoline prices to rise, has been unpopular with American voters and is often cited as one of the reasons Republican politicians could lose their races to Democrats.

Netanyahu made the case on Fox that the defeat of the Islamic Republic and the elimination of its nuclear program was critical to ensuring a safe American future. In the U.S., some lawmakers have insisted that the war was unnecessary.

If Iran can destroy Israel, it will conquer the Middle East, control world waterways and oil supplies and proceed to Europe and proceed “to the next target, which is you,” Netanyahu said, addressing a U.S. audience in his Fox News appearance.

A boost for Netanyahu in the final stretch

Trump has taken a personal interest in Israel’s election, but he held off on endorsing Netanyahu for months, raising questions about whether he was keeping his options open in case the longtime Israeli leader lost. “I’m not involved in [Israeli] politics anymore,” Trump told Time magazine in September. In an interview with Newsmax on Thursday, when asked whether he trusted Netanyahu, Trump said he did not trust anybody.

Sunday’s endorsement comes as Netanyahu steps up his campaign to rally his base and convince undecided voters that his close relationship with Trump is essential to Israel’s security. Trump remains popular in Israel, though his approval has declined in recent months following the ceasefire agreement with Iran. But the move could also complicate the president’s ability to influence what happens after the election, if neither political bloc wins a majority.

Trump has previously shown a willingness to pressure Israeli political leaders, including his public campaign last year for President Isaac Herzog to pardon Netanyahu of corruption charges.

Nonetheless, by declaring that Netanyahu is the only acceptable leader for the U.S. administration, Trump may have made it harder to persuade opposition parties to join a unity government led by Netanyahu if the election produces a political stalemate. It also gives Netanyahu another reason to resist stepping aside in post-election negotiations, knowing that the American president has publicly declared him the only alternative.

Netanyahu has already begun sharpening that message, arguing that he and Trump have unfinished business and only two more years to accomplish their shared goals before Trump’s term ends in January 2029. The messaging carries an implicit warning about Israel’s relationship with Washington after Trump leaves office. Whether the next president is Republican or Democrat, any Israeli leader may find it harder to maintain the same level of personal access and cooperation.

The election also carries broader consequences for American Jewry. Netanyahu has become increasingly unpopular among American Jews and Democrats, many of whom oppose his alliance with far-right and religious parties. A change in leadership could allow Israel to rebuild ties with Democrats and reconnect with parts of the American Jewish community — even without bringing nearly as much change in Israeli policy as some might hope.

Rep. Dan Goldman, a Jewish Democrat from New York who was defeated earlier this year in a primary that focused on his support for Israel, posted on X that the U.S.-Israel alliance “will suffer permanent damage if this Israeli government continues to hold power after the election on October 27.”

Polls point to another deadlock

The latest polls show that Netanyahu faces a difficult path to reelection.

Surveys published over the weekend show Eisenkot’s Yashar party ahead of Netanyahu’s Likud, with the opposition parties holding a combined 55 seats. The two Arab lists — the United List, a coalition of three Arab Israeli parties, and Ra’am led by Mansour Abbas — are generally counted outside either bloc.

Those numbers help explain why Trump’s endorsement matters.

A few additional seats could change the balance of power and determine who gets the first opportunity to form a government. And even if Netanyahu fails to secure a majority, he could still benefit from a political deadlock if his bloc wins enough seats to prevent the opposition from forming a government.

In that scenario, Netanyahu would remain prime minister until a new government is sworn in, potentially setting the stage for another election.

JTA contributed to this report.

The post Trump endorses Netanyahu for reelection, warning Israelis against choosing another leader appeared first on The Forward.

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The Supreme Court considers ‘chutzpah’ case as rabbinical and civil courts collide

Can courts instruct a rabbinical court to withdraw accusations of chutzpah? This unlikely question was posed to the U.S. Supreme Court this month when a nursing home dispute offered a rare window into how American courts and rabbinical courts operate in parallel. The case illustrates how law – and life – get messy when one encroaches on the other’s authority.

The case centers on an ownership dispute over a New York nursing home, with millions of dollars at stake.

To resolve the dispute, one of the parties — Samuel Strulovitch — turned to a beit din, or rabbinical court, in Monsey, New York. Rabbinical courts across the United States regularly resolve a wide range of business disputes like this one. Beit dins have been growing across the U.S., with more locations, increasing caseloads, and a growing number of rulings popping up in civil courts.

Their popularity reflects two legal systems working together. First, Jewish law generally requires disputes between Jews to be resolved before rabbinical courts rather than civil courts — a rule that, like any good Jewish law rule, comes with plenty of exceptions and caveats. Second, American law treats rabbinical arbitration like other forms of commercial arbitration. When parties voluntarily agree to arbitration, a civil court will generally confirm the resulting “award,” giving it the force of a legal judgment. Going to a beit din thus serves two purposes simultaneously: satisfying a religious obligation and resolving a commercial dispute.

In this case, overlapping interests of multiple investors complicated matters. Strulovitch obtained an award from the Monsey beit din granting him an ownership stake in the nursing home. But the proceeding included Strulovitch and one co-owner, while other owners never agreed to submit the dispute to that beit din. That agreement matters to American courts because arbitration rests on consent, and a beit din’s award cannot bind parties who never agreed to its authority.

The result was more than two years of litigation in two civil courts and three rabbinical courts. That litigation ultimately wound its way before Judge Linda Jamieson of Westchester County, New York. Initially, she barred Strulovitch from confirming or enforcing the original rabbinical award while the court considered whether it affected the rights of investors who had never agreed to arbitration. The bar on civil enforcement was largely uncontroversial: deciding whether a religious ruling should carry the force of an American legal judgment is the civil court’s job.

A second injunction, however, transformed this commercial dispute into a constitutional controversy worthy of the Supreme Court’s attention. After Strulovitch summoned another investor, Moshe Bain, before a Brooklyn beit din, Bain asked Jamieson to bar proceedings in any other forum, “including any beis din,” which she did. In Jamieson’s view, the new beit din proceeding could encompass the same ownership disputes already before her court.

The beit din, however, viewed the order as a form of judicial overreach into religious matters. It thus issued a seruv — a religious contempt order that can expose its target to communal shunning — against Bain, citing the “chutzpah of enjoining [Strulovitch] from pursuing his Halachic rights.” The rabbis emphasized that the beit din had acted “of its own volition,” without any request from Strulovitch or his agents following Jamieson’s injunction.

Such a contempt order, of course, carries no civil legal force, but can have reputational consequences — and trigger social sanctions — within the Jewish community. Judge Jamieson nevertheless viewed the beit din’s actions as an attempt to circumvent her injunction and draw the dispute away from her court. She therefore ordered Strulovitch to “take all steps necessary” to have the beit din withdraw it, “including withdrawing the entire proceeding.” And while Strulovitch argued that intervening in internal rabbinical court matters violated the First Amendment, Jamieson concluded that the matters before the beit din were “not religious,” but commercial disputes that her court had authority to resolve under secular law.

It is here that the judge began to veer from her lane, causing Strulovitch to seek emergency relief from the Supreme Court. By requiring Strulovitch to seek reversal of a religious contempt order that has no civil consequences, the court moved beyond determining civil legal rights and into matters of religious practice. Participation in a beit din is both a means of resolving a commercial dispute and a religious requirement, which under Jewish law is no different than observing Shabbat or keeping kosher. Its commercial subject does not erase its religious significance. And under the First Amendment, it is the believer, not the state, who defines what his faith requires.

The key constitutional question is which authority gets to decide. Courts should decide legal questions, such as whether to enforce an agreement to arbitrate before a beit din or give its award the force of a legal judgment.

But questions of whether to pursue a case in beit din or religiously sanction a party for refusing to participate generally stand beyond the court’s authority so long as those decisions do not violate an independent civil legal right.

The same holds for a religious obligation to pay: A civil court can decline to enforce a beit din’s award, but whether Jewish law nevertheless requires payment remains a matter for the beit din. By demanding Strulovitch work to withdraw the seruv, however, Jamieson crossed into determining religious matters — precisely the sphere the First Amendment protects from judicial interference. That boundary makes this case worthy of Supreme Court inquiry: a judge can decide whether a religious ruling has legal force, but deciding what Jewish law counts as chutzpah is another matter.

For now, the Supreme Court has left those questions unresolved. Justice Sonia Sotomayor required Bain to formally respond to Strulovitch’s request — a sign that it warranted closer consideration. And while she ultimately declined to intervene, she left the door open for him to return once the case played out in the New York courts.

No doubt, as the beit din system grows, harder questions will emerge. But a good rule of thumb is this: Matters of religious doctrine, or of a party’s standing in a religious community, generally lie beyond a civil court’s reach, so long as they leave the party’s rights under American law untouched. Matters that affect those rights belong to the civil courts, even if they also implicate matters that Judaism considers religious. That is how these parallel legal systems can operate alongside one another — each staying in its lane.

(Both of us are affiliated with the Beth Din of America, which is not involved in this case.)

The post The Supreme Court considers ‘chutzpah’ case as rabbinical and civil courts collide appeared first on The Forward.

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