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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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What pledges Eisenkot and Netanayhu need to break to become PM

(JTA) —

Prime Minister Benjamin Netanyahu and his opponent Gadi Eisenkot will have to break their promises to their constituents if they want to form and lead Israel’s next government.

Their potential political allies will have to do the same.

Netanyahu’s Likud and Eisenkot’s Yashar party both garnered more votes than any of the other nine parties that met the threshold to join the next parliament.

Netanyahu and the bloc of parties that ideologically align with him, however, secured only 53 of the 61 seats needed for a governing majority in the 120-seat Knesset. The Eisenkot bloc won 48.

For Eisenkot, three divisive issues are likely to dominate the debate and force some politicians to renege on campaign pledges: aligning with Arab parties, mandatory military service for Haredi men and a unity government with Netanyahu.

Support from the Arab parties

Eisenkot’s bloc includes four Jewish Israeli parties, referred to as Zionist parties: his own party Yashar, B’Yachad led by former prime ministers Naftali Bennett and Yair Lapid, Israel Beytenu led by Avigdor Liberman, and the Democrats led by Yair Golan.

Eisenkot could easily become prime minister with a 67-seat coalition if he added the Arab parties, Ra’am with 8 seats and the Joint List with 11. But that is far from straightforward. Three of the bloc’s four parties — Yashar, B’Yachad and Israel Beytenu — explicitly pledged not to form a government with the Arab parties. And relying on their support would face an additional legitimacy hurdle given Netanyahu’s advantage among Jewish voters.

Eisenkot himself has repeatedly and unequivocally said he does not intend to form a government with the Arab parties. During the campaign, he set four conditions for joining his government, including a commitment to Israel as a Jewish and democratic state and to the values of the Declaration of Independence, mandatory military or national service, and recognition of Hamas as a terrorist organization.

In an interview with Channel 12 News in late September, Eisenkot, a former IDF chief of staff, said the Arab parties did not meet his conditions and therefore would not be part of the government.

On election night and since then, he has continued to speak of a coalition with Jewish Zionist parties.

Naftali Bennett, the former prime minister who relied on the support of the Ra’am party in 2021, when he and Lapid formed their coalition, also ruled out sitting in a government with the Arab parties. Liberman, whose party won seven seats, said he would form a coalition made up of “Zionist parties only.” Only Golan spoke prior to the election of sitting with Arab parties and has since the election called on the other three parties in his bloc to do so.

One attempt to circumvent the issue would be for Eisenkot to form a minority government that would depend on votes from Ra’am and the Joint List from outside the coalition. A more solid version of that game plan would be a coalition that included Ra’am but relied on the Joint List from outside the government. However, this option is also likely to face significant political and public opposition.

The Joint List stated in an official declaration following the election that it was willing to engage in “political cooperation to bring down Netanyahu’s government,” but it did not publicly clarify whether, and under what conditions, it would support a government led by Gadi Eisenkot. Ra’am leader Mansour Abbas said in an interview with Channel 12 News on the eve of the election: “I will know how to bring a government to the Knesset.”

The draft issue

Without the Arab parties’ support, the change bloc could theoretically turn to the 13 seats held by the ultra-Orthodox parties, Shas and United Torah Judaism, to form a government.

All four parties in the bloc made ending the ultra-Orthodox exemption from military service a central campaign issue. Cooperation with those parties would amount to breaking an explicit campaign promise.

Shas and UTJ have similarly promised their Haredi constituents that they would not allow for forced conscription.

A unity government with Netanyahu 

With the path to a government that excludes Netanyahu looking tenuous at best, the change bloc’s alternative would be to join Netanyahu in a national unity government.

But that, too, would represent a flagrant breach of its campaign pledges. The one clear binding principle of these four parties is their goal of unseating Netanyahu, Israel’s longest serving prime minister, whom they have said poses an existential threat to the country.

In a late-October radio interview, Eisenkot said, “I unequivocally commit that I will not sit under Netanyahu, not even in a rotation,” in which he and Netanyahu would share the prime ministership. Bennett said in a radio interview, “I am not going to sit under him because he is the person destroying the State of Israel.” Liberman wrote on X two weeks ago, “With Netanyahu — even if the world turns upside down, we will not sit with him under any circumstances.” Yair Golan, leader of the Democrats party, said, “We will not sit with Netanyahu and his partners. Period.”

The challenge for Netanyahu

On the other side, Netanyahu also has no clear path to forming a government. The parties in his coalition defied expectations by winning 53 seats, but securing the eight additional seats needed for a majority appears out of reach. Netanyahu deployed the prospect of the Arab parties in the coalition as a cudgel to bash the opposition during the campaign. In a speech on the eve of the election, Netanyahu called cooperation with those parties “a disgrace.”

That may not stop him from trying to form a government with one of the Arab parties, particularly Ra’am, whose leader Mansour Abbas told Channel 12 on election night that he was speaking with politicians from both blocs.

Netanyahu during the 2022 election held talks with Abbas about forming a government.

Even if Netanyahu were to do the unthinkable and cooperate with the Arab parties, however, he would be unlikely to secure a majority. His ultra-nationalist partners, Itamar Ben-Gvir and Bezalel Smotrich, made clear during the campaign that such cooperation was out of the question for them.

With all apparent paths to a government blocked, forming a coalition in Israel may require a fundamental breach of campaign promises that would shake up the entire political system. The alternative is another election, which would be held if no side succeeds in forming a government.

The post What pledges Eisenkot and Netanayhu need to break to become PM appeared first on The Forward.

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The Ethan Klein YouTube cheating scandal is reigniting a debate about IDF service 

The chronically online are still reeling from — and reveling in — the cheating scandal surrounding Jewish YouTubers Ethan and Hila Klein. And, after Hila’s estranged brother spoke out for the first time this week, commenters have revived a debate over the siblings’ service in the Israel Defense Forces, reflecting the ways in which shifting political trends online can impact even seemingly-unrelated stories.

Hila, an Israeli who met Ethan during his Birthright trip to Israel in 2007, posted a statement accusing Ethan of the affair on Oct. 22. The two had built a joint YouTube career in America garnering millions of subscribers to their show, the H3 Podcast. They married, had three children together and employed around a dozen people on their production crew — one of whom is alleged online to be Klein’s affair partner.

Because of the show’s Israeli connections, the Kleins’ Birthright meet-cute, and the show’s myriad other Jewish connections — the podcast employee allegedly having the affair with Ethan is also Jewish — discussions of Israeli politics have long swirled around the show. Ethan feuded with numerous other YouTubers and internet figures, including Hasan Piker, with whom he used to cohost a podcast, over the Oct. 7 Hamas attacks and Israel’s war in Gaza.

In recent years, especially after Oct. 7, with pro-Palestinian sentiments increasingly dominating online, the H3 Podcast’s connection to Israel has become a central part of its identity, and drawn controversy and analysis across the internet from Piker and general viewers. Each time Israel has been brought up on the show the conversations are closely tracked and analyzed in relevant subreddits.

With the Kleins making headlines because of the affair, old Israel discourse has resurfaced surrounding the internet celebrities. Central to it is the question: what level of Israeli military service is forgivable in the eyes of the far left? As Hila routinely came under scrutiny for her service, the Kleins would point to Hila’s brother Moses Hacmon, who also served but has faced far less criticism for doing so.

Hacmon, another internet celebrity, has long been feuding with Hila and Ethan, thanks to his now-wife, infamous YouTuber Trisha Paytas. (Paytas is known for an endless string of controversies including taboo OnlyFans content and saying the n-word while singing along to a rap song, as well as being accused of physically abusing Hacmon.)

Hacmon, who moved to the U.S. in 2002 to launch his art career after finishing his IDF service, met Paytas through Ethan and Hila. The Kleins had just begun having Paytas on their show, which led to Ethan launching a new podcast, Frenemies, with Paytas. Initially, the two couples were close. But the show lasted less than a year and ended in a bitter falling-out over revenue, creative disagreements and family drama, severing ties between the two couples. Now, that conflict is finding new life as fans fight over which siblings’ IDF service was most immoral.

Scrutiny over military service

In defending Hila’s IDF service, Ethan mentioned multiple times that she worked a noncombat desk job and never hurt anyone personally.

The Kleins, who show a vindictive streak against their enemies, also often deflected criticism of Hila by pointing at Hacmon, saying he was an active combatant in the air force, and pointing angry commenters in his direction. (Hacmon and Paytas, while they have drawn their own controversies in the past, have come under less fire as of late and currently are popular in the online ecosystem.)

The Kleins said that they didn’t take issue with Hacmon’s service. But, they said on numerous episodes of the podcast, if people were upset with Hila for serving in the IDF, they should be just as upset with Hacmon.

Until this week, Hacmon hadn’t publicly spoken to or about the Kleins for five years as tensions simmered. He did not invite them to his wedding with Paytas or introduce them to the couple’s three children (who are named — actually — Elvis, Malibu Barbie and Aquaman).

But Hacmon broke his silence on Tuesday to talk about the affair. He said he felt for his sister and that his door was open to her, but added that things the couple had said about him, particularly his military service, were painful lies.

“I never graduated from flight school,” said Hacmon on his podcast with Paytas. “I never was a pilot. I’ve never been in combat. I’ve never hurt anyone. I’ve never shot a gun at anyone.”

This may sound like a petty feud over minor details; either way, both siblings served in the IDF. But it reflects the shifting tides of political trends and viewer favor online.

Pro-Palestinian activism, and harsh criticism of Israel’s army in light of the war in Gaza, has become the mainstream acceptable stance online, and views are so black and white that small details can ruin an online career. Fans, hungry to cancel their enemies, scour the internet for evidence of what they consider to be a sin — for some people, even recommending the wrong book or using the wrong brand of makeup can be an indication of cancellable politics around Israel.

For many influencers, serving in the IDF at all, regardless of role, is enough for online cancellation, but since both of the siblings served, the fight boils down to details, with each sibling attempting to distance themselves from the violence as much as possible to prove that they are not the wrong kind of Jew.

Getting into the weeds on Israel

But a decade ago, this political framework had not yet taken hold of the internet, and Israel was not a pariah online — meaning that the evidence on both Hila and Hacmon’s service can get muddled, as they presented their records differently back when they seemingly thought it sounded cool to be in the army.

An interview with Hacmon published sometime circa 2015 seems to corroborate some of his most recent statement:

“I spent a year and a half in the flight school,” Hacmon said about his service in the air force. “When I left the military after three years I really wanted to catch up for that time.”

But despite his insistence that he did not see combat, in a 2021 episode of Frenemies, long before Oct. 7, Paytas seemed eager to prove her husband had been an active combatant. She bragged about Hacmon’s service in the IDF saying he deactivated bombs in Lebanon and was a “bomb specialist.”

“Whoa, whoa, whoa,” replied Ethan.

“That’s what he did,” yelled Paytas, gesturing to Hacmon who sat silently off screen.

Hila, on the other hand, worked a desk job throughout her service and at one point was, as she described it, a secretary for a brigade that conducted military missions in Ramallah, a major city in the occupied West Bank. One night, unauthorized and acting out of curiosity, she accompanied the brigade on a mission to detain “a terrorist.” This anecdote, which she shared during a 2017 episode of the couple’s podcast, would be used against her time and time again by Piker and various critics after the Oct. 7 Hamas attacks on Israel and the ensuing war in Gaza.

Viewers commenting on the siblings’ mandatory service had various takeaways.

“I don’t like either of them but you can’t call out one without the other being terrible too,” said one X user. “It’s hypocrisy.”

One commenter, coming to Hila’s defense argued: “Moses was in the IDF, just like Hila. The difference is Hila worked a desk job then asked to go out on the field ONE TIME out of curiosity. Moses worked with bombs and was actually out doing field work, as Trisha loved to brag about.”

While the exact details of each siblings’ service remains disputed, one thing is certain: the casualness with which they once discussed the IDF is gone. What used to be simple background in their personal histories — an experience most Israelis share — has become ammunition in arguments over their alleged complicity in the conflict and an opportunity for moral grandstanding.

All of this is old news, really, though; today, its main effect is drawing attention away from Ethan’s affair. The military debate and disdain many online feel for the IDF — especially in the left wing circles these four worked in — has left little sympathy for the mother of three navigating separation after a devastating affair.

The post The Ethan Klein YouTube cheating scandal is reigniting a debate about IDF service  appeared first on The Forward.

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Zoom chat: Memories of Yiddish and Bund gatherings in Melbourne

אין קאַרלטאָן, אַ געגנט אין מעלבורן, האָט מען אַ מאָל געהערט ייִדיש אויף דער גאַס; געגאַנגען אויף בונדישע פֿאַרזאַמלונגען און אין ייִדישן טעאַטער, און געזונגען ייִדישע לידער.

‫אין אָט דער וועלט איז אויפֿגעוואַקסן דער שרײַבער אַרנאָלד זייבל, אַ קינד פֿון בונדישע אימיגראַנטן פֿון פּוילן. זונטיק, דעם 15טן נאָוועמבער, 7 אַ זייגער אין אָוונט ניו־יאָרקער צײַט, וועט אלי בענעדיקט, פֿון דער ייִדיש־ליגע, פֿירן אַ זום־שמועס מיט זייבלען וועגן זײַנע קינדער־יאָרן אין מעלבורן — דער עיקר, וועגן די ייִדישע שולן, טעאַטערס, לידער און די מענטשן וואָס האָבן געשאַפֿן יענע וועלט.

זיי וועלן אויך אַרומרעדן ווי אַזוי די זכרונות פֿון יענער וועלט לעבן ווײַטער אין זײַנע ביכער.

אַרנאָלד זייבל איז אַ שרײַבער, דערציילער און אַקטיוויסט פֿאַר מענטשנרעכט. זײַנע ביכער, וואָס זענען אויף ענגליש, באַהאַנדלען טעמעס פֿון אימיגראַציע, זכּרון און גלות. צווישן זײַנע באַקאַנטע ביכער געפֿינען זיך „קאַפֿע שעהעריזאַד“ און „בריליאַנטן און אַש“.

די אונטערנעמונג איז פֿרײַ פֿון אָפּצאָל. כּדי זיך צו פֿאַרשרײַבן, גיט אַ קוועטש דאָ.

The post Zoom chat: Memories of Yiddish and Bund gatherings in Melbourne appeared first on The Forward.

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