Israel’s opposition leaders are preparing for talks over paused government plans to overhaul the judiciary, with the first meeting to be held in President Isaac Herzog’s residence in Jerusalem this evening.
(Bloomberg) —
Israel’s opposition leaders are preparing for talks over paused government plans to overhaul the judiciary, with the first meeting to be held in President Isaac Herzog’s residence in Jerusalem this evening.
The shekel has strengthened and Deutsche Bank strategists said they are upbeat on bonds after political turmoil eased from three tumultuous months of unrest.
Institutions reopened after a day of unprecedented strikes and protests over government plans that would significantly weaken the Israeli high court. In a sign of international business as usual, BP Plc and the UAE’s state oil firm offered to take an Israeli gas firm private in a deal worth around $2 billion.
Key Developments
- Israel’s Master Contortionist Netanyahu Tests Political Limits
- What Is Happening in Israel? What’s Netanyahu’s Judicial Change?
- BP and Adnoc Form Gas Venture and Make $2 Billion NewMed Offer
- Israeli Shekel Jumps After Netanyahu Delays Judicial Overhaul
(All times CET)
Main Opposition Parties to Start Meeting This Evening (4:00 p.m.)
President Herzog’s office announced that the first meeting of the three main parties’ negotiating teams will be at his official Jerusalem residence this evening at 6:30 p.m., or 7:30 p.m. local time. He plans to meet with representatives of the rest of the political parties later this week.
Government Avoids Hardliners for Talks (3:34 p.m.)
Herzog asked Prime Minister Benjamin Netanyahu’s government and the two main opposition parties led by Benny Gantz and Yair Lapid to form negotiating teams and they have done so.
The representatives of the government do not include hardline Justice Minister Yariv Levin or parliamentarian Simcha Rothman, who pushed to move quickly and with minimal compromise, a senior Likud official said.
Instead, Netanyahu has asked his close confidant, Strategic Affairs Minister Ron Dermer — former ambassador to Washington — to represent him along with Cabinet Secretary Yossi Fuchs and Aviad Bakshi of the conservative Kohelet Policy Forum.
Deutsche Bank Turns Positive on Israeli Bonds (1:22 p.m.)
Deutsche Bank AG’s strategists raised their recommendation on Israel’s local bonds to “modest overweight” from “neutral,” saying that the securities are “extremely cheap.”
Concerns over the political turmoil, price pressures and the prospect of further monetary policy tightening have contributed to the bonds’ under-performance in emerging markets this year.
“We believe that a lot is now priced into local bonds, and therefore recommend a structurally more bullish bias,” they wrote in a report.
Wells Fargo Sees ‘Baby Step’ in Right Direction (9:00 a.m.)
Developments late Monday “are a baby step in the right direction” said Brendan McKenna, a New-York based emerging-markets economist and foreign exchange strategist at Wells Fargo Securities. “There is still a ways to go before political risk materially eases and Israel’s asset prices can recover.”
Israeli asset prices will only fully rebound when a negotiated agreement is achieved, or the rest of the proposals are abandoned, he said.
BP and Adnoc Offer $2 Billion for Israeli Gas Group (8:38 a.m.)
BP and Abu Dhabi National Oil Co. will form a joint venture focused on natural gas and have made a non-binding offer to take Israel’s NewMed Energy private in a deal worth around $2 billion.
Businesses Reopen After Unprecedented Strikes (8:30 a.m.)
Israeli businesses and institutions are operating as normal after an extraordinary one-day strike that played a role in pressuring Netanyahu’s U-turn.
Monday’s call to shut down the $530 billion economy was exceptional because it was backed not only by the Histadrut labor federation but by private sector business leaders. International flight departures took off as scheduled Tuesday after being grounded the previous day by the strikes.
Surveys Show Netanyahu Popularity Dented (7:00 a.m.)
Surveys conducted for Channels 11 and 12 showed that Netanyahu would be unable to form a government if elections were held today, following the turmoil created by the government’s proposed judicial overhaul.
The main reason would be a steep drop in support for the prime minister’s party, which would win just 25 of parliament’s 120 seats compared to its current 32.
–With assistance from Netty Ismail and Amy Teibel.
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