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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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Nearly half of young U.S. Jews want to replace Israel with binational state, poll find
Almost half of American Jews under 35 say the Israeli-Palestinian conflict should be solved by creating a single country in Israel, the West Bank and Gaza with a government elected by both Israelis and Palestinians, according to a poll conducted by the Jewish Voter Resource Center.
The findings signal a generational shift in U.S. support for a binational state in Israel, reflecting a core demand of anti-Zionist protests on college campuses and beyond — even as most major Jewish organizations classify calls for a single state as an expression of antisemitism.
“The growing disaffection of younger Jewish Americans from Israel is a direct consequence of the policies of Bibi Netanyahu and the way the American Jewish establishment has demanded an ‘Israel right or wrong’ loyalty,” said Jeremy Ben-Ami, president of J Street, the liberal advocacy group. “They’re reaping the harvest of seeds they planted — this is what you get.”
Ben-Ami pointed to the destruction of Israel’s war in Gaza, in which it killed an estimated 70,000 Palestinians and destroyed more than 80% of the enclave’s infrastructure, and growing violence by Jewish settlers in the West Bank, among other actions.
The data also adds to a growing debate over what share of Jews in the United States are Zionist, The Jewish Federations of North America began circulating data earlier this year that shows that around 90% of American Jews continue to support Israel’s existence as a Jewish and democratic state, even as only 37% label themselves “Zionist.”
The Jewish Voter Resource Center poll, released on Thursday, challenges these findings. Twenty-four percent of Jewish adults polled support a one-state solution to the conflict, according to the survey, nearly double the 13% who said they preferred a binational state just two years ago. While age breakdowns were not available for the 2024 poll, an American Jewish Committee survey in 2022 found that 23% of American Jews ages 25 to 40 supported a binational state.
Half of non-Orthodox Jews under 35 — 51% — support a binational state, according to the new poll.
The Jewish Federations of North America declined to comment.
This abrupt turn comes amid a transformation in how Americans view Israel — favorability toward Israel has plummeted among almost every demographic group since 2022 — that has extended to Jews. A Washington Post poll found that 61% of Jewish adults said Israel had committed war crimes against Palestinians in Gaza, while 39% said it was guilty of genocide.
The shift in public opinion also drives a deeper wedge between Israeli and American Jews. While many Jews in the U.S. have been alarmed by Israel’s conduct in Gaza following the Oct. 7 Hamas terrorist attack, Israeli Jews have expressed a sense of increased vulnerability, and some viewed the massacre as shutting down the possibility of Israel giving up control over the Palestinian territories or granting Palestinians equal rights.
A poll from Tel Aviv University last year found that only 15% of Israeli Jews supported a two-state solution, while 29% wanted to annex the West Bank and Gaza without offering citizenship to Palestinians living there. Only 1% of Israeli Jews supported “one binational state with civil rights.”
When asked in more detail about the possibility of a one-state solution, 3% of Israeli Jews said they would support it only if Palestinians were granted equal rights while 37% said they would support it if Palestinians were not given full rights.
Jeremy Pressman, who studies the Israeli-Palestinian conflict at the University of Connecticut, said that young American Jews have little experience of Israel as a vulnerable underdog, unlike older generations that witnessed the establishment of the state or its victory in the 1967 and 1973 Arab-Israeli wars.
Instead, they’ve largely come of age while Israel has been controlled by right-wing governments and have watched Israeli violence toward Palestinians on social media. “This creates a gap between the dominant Israeli Jewish understanding of the conflict and the center-left — or sometimes radical left — understanding of Jewish Americans,” Pressman said in an interview.
The Jewish Voter Resource Center, which is affiliated with the Jewish Democratic Council of America, polled 800 registered Jewish voters and the margin of error was +/- 3.5 percentage points and +/- 6.9 percentage points for Jews under 35.
Asher Kaplan Leba, a leader of the Massachusetts Synagogue Network on Israel/Palestine in Boston, said that many Jews had become disillusioned with a two-state solution as the Israeli government took steps that seemed to make it more difficult to implement, such as expanding West Bank settlements.
“It was my position for many years,” said Leba, 32. “But I don’t want to spend the rest of my adult life waiting for the authoritarian, ethno-nationalists in control of Israel — who I share no values with — to change.”
The post Nearly half of young U.S. Jews want to replace Israel with binational state, poll find appeared first on The Forward.
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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.