Israel crosses the tipping point, becomes an economic liability

[R. Daneel Olivaw]

http://972mag.com/israel-crosses-the-tipping-point-becomes-an-economic-liability/87298/

There’s been a lot of talk lately about how the BDS (boycott, divestment and sanctions) movement against Israel is gaining traction. It’s pretty much a fact no one can dispute – those three letters are seen more and more in just about every news item about the Israeli-Palestinian conflict. But there has also been some speculation about a certain “tipping point” concerning the campaign, and when exactly it will arrive.

That point has been reached over the past three months, based not only the number and weight of businesses imposing various sanctions, but also on Israeli reactions to them.
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I cannot remember a time when I have seen so many Israeli public figures on both sides of the political map so obsessed with Israel’s standing in the world – most of them shivering with fear of global isolation. Palestinians living under the occupation – and Israeli activists who support their cause – should be well aware that the non-violent tactics they have taken over the past years seem to be working better than any violent uprising.

But let’s be clear: Deutsche Bank, Danske Bank and the others are not joining BDS because they care about Palestinians. They are huge financial entities with only the bottom line on their mind. They fear losing business, as any good capitalist should. With the number and sheer importance of these European firms over the past three months, and seeing as how Europe is Israel’s largest trade partner, combined with knee-jerk Israeli reactions, it is now safe to say that Israel and the occupation have become an economic liability.

BDS.

[Mosby]

1. The TA 100 has gone up 12% in the last 12 months

Last edited Wed Feb 19, 2014, 12:04 PM - Edit history (1)

All this talk of "economic liabilities", "international isolation" and the BDS movement gaining traction is nothing more than wishful thinking on the part of Israel haters.

[Jefferson23]

10. Not quite, the threat is coming from Kerry and once Bibi is on board, as I understand it..all

BDS rhetoric will end..for the most part. Not to suggest the Palestinians will be pleased
with his plan but the obstacles for the most are coming from the Israeli leadership.

[Mosby]

2. "Green and clean" tech Finland looks to Israel for inspiration

BRUSSELS (Reuters) - Finnish Prime Minister Jyrki Katainen is determined to overhaul his economy, and cites Israel's success as a "start-up" nation brimming with high-tech innovation as his model.

With just 5.4 million people, a world-class education system and an international mindset, Finland can be more nimble than many of its competitors at a time when its industrial output is in decline and productivity falling.

http://finance.yahoo.com/news/green-clean-tech-finland-looks-170315957.html;_ylt=AwrBEiRkvQRTUkAA2GCTmYlQ

[Scootaloo]

8. He might want to be careful there...

My understanding is that there's a LOT of Israelis who aren't real happy with the way the economy is going

[Mosby]

9. The Israeli goverment listened

This is pretty unprecedented:


Corporate sell-off looms as Israel takes on tycoons

TEL AVIV, Feb 13 (Reuters) - Israeli conglomerates will offload billions of dollars worth of assets over the next few years to comply with a new law designed to promote competition and dilute the power of big business in a country where a few tycoons control much of the economy.

The move to redefine Israel's corporate landscape comes after 400,000 people took to the streets in 2011, the largest protest in Israeli history, angered by the high cost of living.

The Business Concentration Law, which aims to break up some of the largest conglomerates and prevent the growth of new behemoths, could put about 40 firms worth 80-100 billion shekels ($23-28 billion) up for sale, according to Israeli corporate law firm Gross Kleinhendler Hodak Halevy Greenberg & Co (GKH).

The reform, which was approved in December and is the latest in a swathe of new business regulations, should result in smaller holding companies with less debt, said Alon Glazer, head of research at Leader Capital Markets.

http://www.democraticunderground.com/10024526715

[Mosby]

3. Israel Desalination Shows California Not to Fear Drought

Six decades of providing water in acountry that's 60 percent desert have made Israel atechnological leader in the field, a model that points the wayfor drought-stricken California.

Desalination of sea water, reuse of treated sewage foragriculture, software creating an early-warning system forleaks, computerized drip irrigation and careful accounting ofevery drop have become the norm in Israel, the world's 40thbiggest economy. Officials in California, which would be the10th largest if it were a nation, are paying attention.

North of San Diego, Israel's IDE Technologies Ltd. ishelping to build what it says will be the largest seawaterdesalination plant in the Western Hemisphere. The facility, whenfinished in 2016, will be able to provide 50 million gallons ofpotable water a day. Three smaller plants already operate inCalifornia, and 15 more have been proposed.

http://finance.yahoo.com/news/israel-desalination-shows-california-not-022140695.html;_ylt=AwrBEiRkvQRTUkAA2WCTmYlQ

[Mosby]

4. Israel takes step towards becoming a gas exporter

LONDON, Feb 7 (Reuters) - Israel has taken a step closer to becoming a natural gas exporter after Australia's Woodside Petroleum Ltd signed a deal to take a 25 percent stake in the huge East Mediterranean Leviathan gas field.

The Australian company, considered a leader in the booming liquefied natural gas (LNG) sector, signed a preliminary agreement on Thursday to buy a quarter of the Leviathan field off the coast of Israel for up to $2.55 billion.

Leviathan is estimated to hold about 19 trillion cubic feet (540 billion cubic metres) of natural gas, enough to supply all of Europe for over a year.

http://finance.yahoo.com/news/israel-takes-step-towards-becoming-122156999.html;_ylt=AwrBEiRkvQRTUkAA22CTmYlQ

[Mosby]

5. Noble Energy, Arab Potash Said to Sign Israel Gas Accord Today

Noble Energy Inc., a partner in Israel’s Tamar natural-gas field, and Jordan’s Arab Potash Co. plan to sign an export agreement today, three people familiar with the matter said.

The signing would mark Israel’s second gas export deal in the region. Jordan is seeking to secure its energy supply after repeated disruptions to imports of Egyptian fuel as a result of pipeline bombings in Sinai. The three people spoke on condition of anonymity because the matter is private.

http://www.bloomberg.com/news/2014-02-19/noble-energy-arab-potash-said-to-sign-israel-gas-accord-today.html

[Mosby]

6. Israel Seeks New Trade Relations Amid Europe Boycott Threats

Israel said this week that it has been accepted as an observer in the Latin American free trade bloc, the Pacific Alliance – a move that’s part of a larger push in Israel to develop its trade ties with the Far East as well.

In a celebratory statement, Prime Minister Benjamin Netanyahu said that the move would diversify Israel’s commercial relations: Latin America accounted for 6% of Israeli exports in 2012. The prime minister also plans to visit alliance members Mexico and Columbia in the coming months to promote ties.

Alongside the Pacific Alliance, the government has also been focusing on developing relations with China and India, dispatching ministers and trade delegations.

Part of the push for diversification stems from a concern about an overdependence on trade with Europe – the destination for 38% of Israel’s exports in 2012. The recent economic turmoil in the European Union was a prime driver in an overall drop in exports in that year, according to the Israel Export Institute.

http://blogs.wsj.com/middleeast/2014/02/12/israel-seeks-new-trade-relations-amid-europe-boycott-threats/

[Mosby]

7. Bright Food Moves Closer to Buying Israel’s Tnuva

China’s Bright Food Group Co. appears to be moving closer to a deal with Israel’s Tnuva Food Industries Ltd., with CitigroupC -0.50% Inc. advising the Chinese company on its bid, people familiar with the matter said.

The purchase of the Israeli dairy firm would be the Chinese group’s latest potential foray overseas. Bright Food has, in recent years, bought Australia’s Manassen Foods and U.K.-based cereal maker Weetabix Food Co.

Having Tnuva would help Bright grow its dairy business at a time when a number of players are jockeying for position in China’s burgeoning dairy industry. This week, DanoneBN.FR +0.12% said it invested €486 million ($663 million) to raise its stake in China Mengniu Dairy Co. to 9.9% from 4%, making the French company the second-biggest investor in China’s largest milk producer.

Tnuva is a major dairy player in Israel, controlling 14% of shelf space in the country, according to British private-equity firm Apax Partners LLP, which holds a majority stake in Tnuva. Apax and investment partner Mivtach Shamir Holdings Ltd. purchased a 77% stake in Tnuva for more than $1 billion in 2008, according to Apax.

http://blogs.wsj.com/moneybeat/2014/02/12/bright-food-moves-closer-to-buying-israels-tnuva/

[R. Daneel Olivaw]

11. That's great!

One repressive regime is buying into another.

These feel good articles don't change the fact that BDS is entering the mainstream, but perhaps Israel can beat the rap and find other enablers...seeing how Europe is growing tired of it.