Straight from the Jerusalem Boardroom #133, February 13, 2009
1. Irrespective of the global economic meltdown, the war on Palestinian terrorism, the Iranian threat, regional instability and political uncertainty, Standard & Poor (S&P) has left Israel's credit rating unchanged at A and the country forecast rating [has been sustained] as "stable." The rating was approved in all three criteria: Shekel debt, foreign currency debt and transfer and convertibility assessment, which remains at AA (Globes, January 20, 2009).
Straight from the Jerusalem Boardroom #132, January 16, 2009
Wall Street Is More Important Than Gaza Strip. The Tel Aviv Stock Exchange is higher today than it was upon the launching of the Gaza War. It is substantially higher than the ebb of November. Once again, Israel's economy is impacted by economic fundamentals (budget deficit, interest and inflation rates, debt to GDP ratio, trade balance, overseas investments, etc.) and by Wall Street much more than by Palestinian terrorism and other "bumps" on the path to economic growth, such as the 1948/9 War of Independence, 1956 Sinai War, 1967 Six Days War, 1969/70 War of Attrition, 1973 Yom Kippur War, 1982 War in Lebanon, 1990/1991 First Gulf War, 1993-2009 Palestinian terrorism. In each such case ("bump"), a very short-term decline was succeeded by an impressive economic growth.
From the Jerusalem Boardroom #131, December 30, 2008
Just like the 2001 crash of NASDAQ, the current global economic meltdown underlines the survival of the fittest, highlighting the competitive edge of Israel's high tech industries:
Straight From the Jerusalem Boardroom #130, November 02, 2008
1. So far – in spite of its reliance on export and overseas investments - Israel has remained a relative island in a global economic meltdown, due to its fiscally-responsible policies:
Straight From The Jerusalem Boardroom #129, September 12, 2008
"If you want to play in Texas, you got to have a fiddle in the band", and if you want to play in the top high-tech league, you got to have Israel's high tech in the band!
Irrespective of global slowdown, drying investment resources and accentuated hesitancy by investors, astute investors keep investing in Israel – due to Israel's unique manpower, which produces cutting edge technologies and products - although in a smaller scope (market valuations have decreased).
Straight From The Jerusalem Boardroom #128, August 11, 2008
Astute investors invest in Israel's high tech, in spite of - and due to - global economic slowdown.
1. While global economy has slowed down substantially, and investment capabilities are shrinking, astute investors leverage declining market valuations, and invest in Israel’s breakthrough export-oriented high tech industries, expecting a promising “exit” when the cycle turns upward.
Straight From The Jerusalem Boardroom #127, July 11, 2008
1. Astute US investors leverage current economic insecurity – exacerbated by catapulting oil price - and the resulting decline in global valuations, investing in Israeli companies. While the scope of overseas investment in Israel is gradually reduced, due to the slowdown in US and global economy, sophisticated investors sustain investments in Israel, but in lower valuations.
Straight From The Jerusalem Boardroom #126, June 04, 2008
1. Israel's best quarter in seven years: A 52% rise in investment ($617MN) in Israeli start ups (135), compared with the first quarter of 2007 and a 23% rise in comparison with the fourth quarter of 2007. A decline is expected during the second quarter of 2008, in view of global economic uncertainties (Israel Venture Capital, “The Marker” and “Globes”, April 30, 2008). According to “Dow Jones Venture Source”, investment in Israeli start ups during the first quarter of 2008 ($600MN) was similar to China ($700MN) and India ($100MN) combined, compared with the $1.5BN for the whole of Europe and $6.8BN in the US (“The Marker”, May 25).
Straight From The Jerusalem Boardroom #125, April 18, 2008
1. Moody’s Investors Service has upgraded Israel’s credit rating from A2 to A1, the highest since 1948, reflecting the growing confidence in the long-term viability of Israel’s economy, and its capability to withstand global and regional economic, political and security uncertainties. Moody’s follows in the footsteps of Fitch and Standard & Poor, who have upgraded Israel’s credit rating to A+ (equal to A1) earlier in 2008 (Ynet, April 17, 2008).
Straight From The Jerusalem Boardroom #124, April 01, 2008
1. Why are astute global companies investing in Israel? Intel-Israel reports an all time high 2007 export - $1.54BN, an 18% increase compared with 2006 (Globes, Feb. 27, 2008). Intel-Israel developed Core2Duo enabled Intel to survive the AMD competition (The Marker, Feb. 27).