Israel’s opposition leaders are preparing for talks over paused government plans to overhaul the judiciary but no timetable for dialog is in sight.
(Bloomberg) —
Israel’s opposition leaders are preparing for talks over paused government plans to overhaul the judiciary but no timetable for dialog is in sight.
President Isaac Herzog has called on Prime Minister Benjamin Netanyahu and his rivals to immediately start talking. The shekel has strengthened and Deutsche Bank strategists are upbeat on bonds as political turmoil eases for now.
Institutions reopened after a day of unprecedented strikes and protests over government plans that would significantly weaken the Israeli courts. 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
- Netanyahu Delays Overhaul to Stop Israel Being ‘Torn to Shreds’
- BP and Adnoc Form Gas Venture and Make $2 Billion NewMed Offer
- Israeli Shekel Jumps After Netanyahu Delays Judicial Overhaul
- Why Israel Is Bitterly Split by a Judiciary Overhaul: QuickTake
(All times CET)
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.
US Envoy Praises Netanyahu, Expects Biden Invite (8:00 a.m.)
The US Ambassador to Israel told Israel Army Radio that he “assumed” President Joe Biden would invite Netanyahu to the White House following the Jewish Passover holiday next month.
“They will see each other personally I’m sure quite soon,” Ambassador Tom Nides said. “Without question he’ll be coming to the White House as soon as their schedules can coordinate.”
He said Washington welcomed Netanyahu’s decision to suspend his government’s contentious proposal. “We wanted compromise and dialog, and I applaud the prime minister for announcing that,” he said.
Israeli Shekel Strengthens After Netanyahu Pause (7:06 a.m.)
The Israeli shekel strengthened 0.9% against the dollar early Tuesday after Netanyahu hit pause on his government’s contentious plan to remake the country’s judiciary.
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.
Gantz Says Ready For Talks Via Presidency (6:30 a.m)
Opposition leader Benny Gantz has set up a negotiating team, Israeli media reported. Lapid said “if the legislation really does stop, genuinely and totally, we are ready to launch a genuine dialog at the president’s residence.”
–With assistance from Netty Ismail.
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