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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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Providence voters pass ballot initiative that could lead to divestment of city funds from Israel
(JTA) — Voters in Providence, Rhode Island, have approved a ballot measure that could result in the city divesting public funds from Israel, according to local media, in a major victory for the Israel boycott movement.
In a major victory for the Israel boycott movement, voters in Providence, Rhode Island, have approved a ballot measure that could result in the city divesting public funds from Israel, according to local media.
With 81 of 82 polling locations partially reported, the Rhode Island Board of Elections tallied 75% voting to approve the measure versus 25% rejecting. Both the Rhode Island Current and the Boston Globe report the measure was approved.
“We are overjoyed that the city of Providence has voted — by more than a 3 to 1 margin — to divest our collective dollars from support for genocide and ethnic cleansing,” Lex Rofeberg, who runs the alternative Jewish engagement network Judaism Unbound and was an organizer with the Providence divestment initiative, told JTA. “This historic moment can serve as an example for other cities around the country hoping to align their investments with their values.”
The ordinance calls for the capital city to refrain from investing in “foreign countries conducting ethnic cleansing, apartheid, illegal military occupation, or genocide.” Though the ballot language does not mention Israel by name, it was heavily supported by local pro-Palestinian groups and opposed by some Jewish and pro-Israel groups.
A representative for the Jewish Alliance of Greater Rhode Island previously told the Jewish Telegraphic Agency that the group would explore legal options to challenge the ballot measure in the event that it passed.
The vote makes Providence the largest municipality yet to vote in favor of some form of Israel divestment, following the lead of Somerville, Massachusetts, whose voters approved a nonbinding divestment measure last year. Providence is home to an estimated 15,000 Jews, or around 7% of its population. Progressive Jewish groups, including the local chapter of Jewish Voice for Peace, were among the ballot measure’s advocates.
The city’s mayor, Brett Smiley, a pro-Israel Democrat who converted to Judaism while in office, lost his primary to a democratic socialist, an early indicator of which way the divestment vote would go.
Activist initiatives to challenge U.S. financial aid to Israel have picked up steam in the years since the Oct. 7, 2023 Hamas attacks and ensuing Gaza war. On the morning of Election Day, President Donald Trump, who described aid to Israel as a political liability, announced the U.S. would end nearly $4 billion in annual military aid to Israel by the end of the year.
The post Providence voters pass ballot initiative that could lead to divestment of city funds from Israel appeared first on The Forward.
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Republican Lawler concedes to Democrat Conley in fierce battle for Jewish vote in NYC suburbs
(JTA) — Republican congressman Mike Lawler has conceded to Democratic challenger Cait Conley, a former national security official, after competing fiercely for Jewish voters in the lower Hudson Valley of New York.
Lawler has been a staunchly pro-Israel member since joining Congress in 2023, and was endorsed by the Republican Jewish Coalition and the pro-Israel lobbying group AIPAC.
Conley was endorsed by the pro-Israel group Democratic Majority for Israel, and has said she supports Israel while opposing the Benjamin Netanyahu government.
Lawler, who is Catholic, has deep ties to the district’s large Orthodox Jewish population, and touted their support recently when asked about the neck-and-neck polling.
Both Lawler and Conley have tried tying their opponent to polarizing figures in their respective parties. Lawler has asserted that Conley, a moderate, will not separate herself from the progressive wing of the Democratic Party and particularly New York City Mayor Zohran Mamdani, who has a lower favorability rating outside the city. Conley denounced Mamdani’s statement on the three-year anniversary of the Oct. 7, 2023 attack after Lawler challenged her to do so during a debate.
Conley, meanwhile, has tied Lawler to President Donald Trump, accusing him of being a rubber stamp for Trump’s legislative priorities.
The post Republican Lawler concedes to Democrat Conley in fierce battle for Jewish vote in NYC suburbs appeared first on The Forward.
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In early LA mayoral results, Karen Bass holds slim lead over Nithya Raman, who sparred with DSA on Israel
Early returns in the Los Angeles mayoral election showed incumbent Karen Bass with a slim lead over Councilmember Nithya Raman, whose comments on Israel became a flashpoint in the race.
The first batch of results — totaling about 500,000 votes — showed Bass leading Raman, 50.8% to 49.2%.
The final outcome may not be known until Wednesday or later, a common occurrence in tight California races due to the preponderance of mail-in ballots. Nearly 90% of California voters did so by mail in the June primary.
But if the primary results are any indication, Bass’ lead may evaporate as more votes are counted.
In the June 2 open primary — a system in which the top two vote-getters from any party advance to a runoff — Raman trailed a Republican, Spencer Pratt, by eight points for second place behind Bass. She won the ensuing batches of mail-in ballots, but did not pass Pratt until June 7. She ultimately surpassed him by more than four percentage points.
Raman, a member of the Democratic Socialists of America, has clashed with the organization — and frustrated many of her Jewish constituents — while trying to strike a balance on Israel. She has called the war in Gaza a genocide, but declined to adopt the Boycott, Divestment and Sanctions platform — a stance that led the DSA to consider expelling her.
Bass, a mainstream Democrat who served six terms in Congress before running for mayor in 2022, entered the race as a historically unpopular incumbent, largely thanks to her response to the 2025 Los Angeles wildfires. Raman endorsed Bass prior to declaring her own candidacy on the last day to enter the race, a move Bass has characterized as a personal betrayal.
The polls swung back and forth in the weeks leading up to the election. Bass, who won most labor endorsements, was leading until September, when one poll sponsored by the Los Angeles Times showed Raman ahead by 11 points with a third of voters still undecided. A follow-up poll by the Times last week showed the two in a dead heat.
Unlike many other DSA candidates up for election across the country on Tuesday, Raman, an urban policy wonk who immigrated to the U.S. from India when she was 6, never made Israel a focal point of her campaign. Instead, she focused more on housing, homelessness and budget policy.
But her membership in the DSA, an interview she granted Hasan Piker during the primary and the genocide comments dogged her anyway, especially among Jewish Angelenos.
Raman, after publicly condemning the DSA’s anti-Israel statements after Oct. 7, sponsored a resolution for a ceasefire and return of hostages in March 2024, disappointing mainstream Jewish groups who called the motion one-sided. Then, during the primary, Raman told Piker she believed the Gaza war was a genocide and that Israel was an apartheid state. She also said she would not seek the endorsement of pro-Israel Democratic party groups as she had in 2024.
Her record on Israel seemed likely to come up when Raman participated in the candidate forum for Jewish voters Sept. 29. But Raman struggled to get through answers about the DSA, Piker and especially genocide and BDS — which she called a “legitimate form of peaceful protest” — leading to loud audience groans. During Bass’ turn on stage, the mayor said she did not support BDS and did not believe the war in Gaza was a genocide.
Mail-in voters historically skew to the left, and the primary vote may offer a preview of the margin Raman might need.
In that election, about 58% of the total votes were tallied election night, when Bass led Raman 36.5% to 21%. Raman got the biggest share of the ensuing ballot batches, beating Bass by about five percentage points.
The post In early LA mayoral results, Karen Bass holds slim lead over Nithya Raman, who sparred with DSA on Israel appeared first on The Forward.
