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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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PEN America president, defending Israel’s critics, resigns after report warns of threats to Jewish authors
(JTA) — The president of PEN America resigned over the weekend in protest of a report on boycotts targeting Jewish and Israeli authors, part of yet another round of internal division over Israel at the literary free-speech institution.
Dinaw Mengestu, an Ethiopian-American novelist and Bard College professor, told The Atlantic he was stepping down because he believed the PEN report, “A Silent Moratorium,” failed to defend the free-speech rights of participants in the movement to boycott Israel.
“It’s the First Amendment that allows all of us to engage in boycotts, not PEN America,” Mengestu told the publication. “PEN America as a free expression organization is supposed to defend that right.”
The author did not respond to multiple Jewish Telegraphic Agency requests for comment, but in an Instagram post Monday alluded to an interest in creating a new organization to rival the prominent nonprofit, which defends the free expression rights other writers.
In response to an interview request, PEN sent a statement to JTA saying it was “grateful” for Mengestu’s leadership and would “respect” his decision. The statement also alluded to PEN’s own past turmoil: “We tell hard stories, in politically challenging moments, about writers from a range of perspectives, even when it’s uncomfortable for us given our own recent history.”
In its report, published on its blog, PEN described “Jewish and Israeli writers who feel that the mainstream literary world is increasingly shutting them out because of their identity, nationality, or views.” Interview subjects include several Israel critics, as well as literary agents who assert that they face more difficulties signing Jewish authors after the Oct. 7, 2023, Hamas attack on Israel and amid the subsequent war in Gaza. The report also repeatedly cited a JTA report about a 2024 viral list of “Zionist” authors to boycott.
Among other details, PEN’s report revealed that Israeli novelist Etgar Keret and public radio host Ira Glass had cancelled a planned live event in Australia over fears of threats and protest.
“This silencing and exclusion of writers is a threat to what PEN America is fundamentally committed to defending: a culture of free expression for all,” according to the report.
In addition to the report, PEN also altered its institutional policy toward cultural boycotts, which the organization has long opposed. Although its report on Jewish authors asserted that boycotts “threaten the free expression rights” of their targets, the revised guidelines say that the group will also defend the right of writers to participate in boycotts.
Mengestu’s resignation comes at a perilous moment for Jews facing cultural boycotts, both within the standard-bearers of PEN and elsewhere. PEN’s Jewish former longtime CEO stepped down in 2024 following months of blowback from rank-and-file authors who felt the organization was insufficiently critical of Israel and caused PEN to cancel a festival for global authors.
Since the leadership change, PEN leadership has published and retracted a condemnation of a boycott effort trained at an Israeli comedian and also published a report cataloguing Israel’s “cultural destruction in Gaza.”
Mengestu had assumed the role of board president in 2025. But PEN’s report about Jewish and Israeli writers on Thursday, he wrote, “makes clear that [change] will not happen.”
The Anti-Defamation League said it was “deeply troubled” by Mengestu’s resignation Monday. “Freedom of expression means opposing efforts to boycott, silence, or exclude writers because of their identity or nationality,” the organization tweeted, saying that the author’s decision to leave PEN over his objections to the report on Jewish authors “sends a chilling message.” Jewish authors also objected.
“Imagine running a free expression org and resigning because it refuses to blacklist authors based on their nationality,” the author David Zweig wrote on X, musing whether Mengestu would object to boycotting authors from his birth country: “Ethiopia doesn’t exactly have a good human rights record.”
In response to The Atlantic’s story that quoted sources from inside PEN who were critical of his resignation, Mengestu wrote a lengthy Instagram post Monday in which he stated, “This piece is about trying to suppress constitutionally protected speech,” criticized past PEN reports critical of the BDS movement, and added, “What PEN America fails to understand is that boycott is a form of dialogue.”
He announced his intention to “help make something better,” receiving affirmative comments from notable authors including Viet Thanh Nguyen, Angela Flournoy, Jewish pro-Palestinian novelist Jess Row and Pulitzer Prize-winner Benjamin Moser, author of a forthcoming history of Jewish anti-Zionism.
Other Jewish authors on the left were among those defending Mengestu’s decision to step down.
“Dinaw is one hundred percent correct that this kind of fake victim propaganda can be used to support anti-Boycott legislation which violates the First Amendment and is everywhere as popular support for Palestinians grows,” author Sarah Schulman wrote on Facebook. Calling PEN’s blog about Jews “one of those fake anti-semitism pieces,” Schulman added, “If PEN wants to survive, they have to get out of the Israel/Zionism business.”
The post PEN America president, defending Israel’s critics, resigns after report warns of threats to Jewish authors appeared first on The Forward.
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Church of England backs study of Palestinian Christian document accusing Israel of genocide
(JTA) — The Church of England’s legislative body voted Monday to encourage churches across England to engage with a document produced by Palestinian Christians that accuses Israel of genocide despite requests from Jewish organizations and Britain’s chief rabbi to reject it.
The document is titled “Moment of Truth: Faith in a Time of Genocide” and is also known as Kairos II, after the Palestinian Christian movement Kairos Palestine that produced it. It describes Israel’s military campaign in Gaza as a genocide, states that Israel is a “colonial enterprise built on racism,” and says decades of “occupation,” “apartheid” and “settler colonialism” are at the heart of the Israeli-Palestinian conflict.
The vote on Monday does not adopt the accusations as church doctrine but says the church should hear the documents as “heartfelt expressions of the lived experience of Palestinian Christians,” and to engage with them in order to better understand the conflict.
Ahead of the debate in York, several Jewish organizations expressed concerns, and Chief Rabbi Sir Ephraim Mirvis asked Synod members to reject the amendment. Mirvis called Kairos II “deeply concerning” and that it “risks undermining decades of careful relationship-building” between Christians and Jews.
“It is truly shocking that a document which purports to speak in the name of truth contains so much falsehood,” he said.
Afterwards, the president of the Board of Deputies of British Jews, Phil Rosenberg, issued a statement calling the passage of the motion “highly problematic.”
“Kairos Palestine may come from a place of genuine pain, but the falsehoods and distortions of Kairos II, including its erasure of Jewish identity and experience, is a prescription for more division and not the answer to conflict in the Middle East,” he said.
“This document reflects the pain and trauma of the Palestinian people. As a pastor, I hear the cry of our Palestinian Christian sisters and brothers — a cry that rises from the ruins of Gaza, and from the violence and oppression of the West Bank,” she said.
She added, ”I also hear the concerns of the chief rabbi, the co-leads of the Movement for Progressive Judaism, and the Board of Deputies, and I thank them for their honesty.” She said the church remained opposed to antisemitism and committed to safety for Israelis as well as Palestinians.
The Synod debate followed Mullally’s visit to the West Bank in June, where she met Palestinian Christian communities in Birzeit. During the visit she said, “I will use my role as Archbishop to seek the peace you desire and the freedom you deserve.”
The debate marks the ascendance of Israel-related issues in another major church, after the Catholic Church’s Pope Leo XIV angered Jewish groups soon after being elected last year by endorsing an investigation into whether Israel committed genocide in Gaza.
The post Church of England backs study of Palestinian Christian document accusing Israel of genocide appeared first on The Forward.
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Mike Pence denounces alleged arson of Israeli flag in his Indiana hometown
(JTA) — Former Vice President Mike Pence has weighed in against antisemitism after officials in his Indiana town say a costly fire may have been caused by arson to an Israeli flag displayed on a local barn.
The alleged arson broke out early Friday morning, damaging a historic home in Zionsville, Indiana, where Pence lives, and causing an estimated $150,000 in damages, according to the Zionsville Police Department.
Zionsville Mayor John Stehr said during a press conference on Friday that officials believed the fire began when an individual set fire to an Israeli flag that had been displayed outside the building alongside an American flag. The town later announced that the FBI had joined the investigation and that officials were examining whether the arson “may have been motivated by bias” but said no determination had been made.
“Absolutely despicable,” Pence tweeted on Sunday. “There can be no tolerance in America for Antisemitism or political acts of violence, and it is heartbreaking to see in our adopted hometown of Zionsville, Indiana. We thank God no one was hurt and urge anyone with information to contact law enforcement.”
Pence has long cast himself as a staunch supporter of Israel, including after the Oct. 7, 2023, Hamas attacks on Israel, and has also repeatedly spoken out against antisemitism in the conservative movement and beyond.
Republican Indiana Sen. Jim Banks also condemned the alleged arson in a post on X Saturday. “Antisemitism will not be tolerated. Not in Zionsville. Not in Indiana. Not anywhere,” Banks wrote. “Thank you to the federal, state, and local officials working to bring the perpetrators of this despicable arson attack to justice.”
On Sunday, the Jewish community in central Indiana hosted a rally condemning the alleged arson attack, chanting, “We will stand up,” according to local outlet Fox 59. While Zionsville does not have a large Jewish community of its own, other suburbs of Indianapolis have significant Jewish populations, and Zionsville is also the longtime home of a Reform movement summer camp, the Goldman Union Camp Institute, which is in session now.
“The founding fathers founded a country where we have the ability to resolve differences among each other; we don’t do it by firebombing homes,” rally organizer David Schiller told Fox 59. “It’s inexcusable and unacceptable.”
The Zionsville Police Department did not respond to an inquiry from the Jewish Telegraphic Agency about the status of the investigation on Monday.
The post Mike Pence denounces alleged arson of Israeli flag in his Indiana hometown appeared first on The Forward.
