(Bloomberg) — Israel’s economy will overcome any short-term impact from Moody’s Investors Service’s move to lower the nation’s credit outlook on concerns over a planned overhaul of the legal system, according to a senior minister.
“I would not put a short on the Israeli economy,” the country’s Economy and Industry Minister Nir Barkat said in an interview Thursday in Mumbai. “We are a strong economy,” and the nation is a “good place to invest,” he said, adding that the country would recover from this as it did in the wake of the pandemic.
Moody’s decision to cut the credit outlook to stable from positive last week was the most concrete rebuke among the three ratings agencies following the government’s proposal to curb the power of the Supreme Court to choose new judges and cancel laws approved by parliament. Until now, the planned changes only prompted warnings from Fitch Ratings and S&P Global Ratings over the country’s credit standing.
The far-right government has currently put a hold on the plan after tens of thousands of Israelis protested the proposals that critics say could hurt economic growth and undermine democracy by giving the ruling coalition too much power. Prime Minister Benjamin Netanyahu has expressed confidence that a compromise could be reached over the plan, saying Israel’s democracy and economy were resilient.
In response to whether the judicial overhaul should be shelved, the former mayor of Jerusalem and an ally of Netanyahu, Barkat said the government prefers to make the changes with wide acceptance in the country. “All of us want a better democracy. We believe in the rule of law,” he added.
Nevertheless, Bank of Israel Governor Amir Yaron warned that in a worst-case scenario, the plan could cut economic growth by as much as 2.8% annually for three years. Reflecting some of the uncertainty, the currency has weakened in recent months, but Barkat, 63, was confident that the nation would overcome these “ups and downs.”
Trade Challenges
Israel and India are working on a free trade agreement that will ease the flow of goods and services between the two nations, said Barkat, who is the first minister under the current administration to visit the South Asian country. And while India is a “top priority,” there are challenges to striking a deal quickly, he said, without elaborating.
Israel could offer technological know-how to India’s agriculture, food and defense sectors, while the South Asian nation can provide workers for construction and services, Barkat said.
As a sign of growing ties between the two countries, earlier this year billionaire Gautam Adani said he will push ahead with investments in Israel, after Adani Ports & Special Economic Zone Ltd. won a tender to buy the Haifa Port for $1.2 billion.
“The Adani group has a lot to offer,” the minister said, adding that the Indian company has expertise in operating ports. “We are too happy to see it work,” he said.
Read: Adani Appears in Israel, Netanyahu Says More Investment Coming
TORONTO – Strength in the base metal and technology sectors helped Canada’s main stock index gain almost 100 points on Friday, while U.S. stock markets also climbed higher.
The S&P/TSX composite index closed up 93.51 points at 23,568.65.
In New York, the Dow Jones industrial average was up 297.01 points at 41,393.78. The S&P 500 index was up 30.26 points at 5,626.02, while the Nasdaq composite was up 114.30 points at 17,683.98.
The Canadian dollar traded for 73.61 cents US compared with 73.58 cents US on Thursday.
The October crude oil contract was down 32 cents at US$68.65 per barrel and the October natural gas contract was down five cents at US$2.31 per mmBTU.
The December gold contract was up US$30.10 at US$2,610.70 an ounce and the December copper contract was up four cents US$4.24 a pound.
This report by The Canadian Press was first published Sept. 13, 2024.
OTTAWA – Statistics Canada says wholesale sales, excluding petroleum, petroleum products, and other hydrocarbons and excluding oilseed and grain, rose 0.4 per cent to $82.7 billion in July.
The increase came as sales in the miscellaneous subsector gained three per cent to reach $10.5 billion in July, helped by strength in the agriculture supplies industry group, which rose 9.2 per cent.
The food, beverage and tobacco subsector added 1.7 per cent to total $15 billion in July.
The personal and household goods subsector fell 2.5 per cent to $12.1 billion.
In volume terms, overall wholesale sales rose 0.5 per cent in July.
Statistics Canada started including oilseed and grain as well as the petroleum and petroleum products subsector as part of wholesale trade last year, but is excluding the data from monthly analysis until there is enough historical data.
This report by The Canadian Press was first published Sept. 13, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in the base metal and energy sectors, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 172.18 points at 23,383.35.
In New York, the Dow Jones industrial average was down 34.99 points at 40,826.72. The S&P 500 index was up 10.56 points at 5,564.69, while the Nasdaq composite was up 74.84 points at 17,470.37.
The Canadian dollar traded for 73.55 cents US compared with 73.59 cents US on Wednesday.
The October crude oil contract was up $2.00 at US$69.31 per barrel and the October natural gas contract was up five cents at US$2.32 per mmBTU.
The December gold contract was up US$40.00 at US$2,582.40 an ounce and the December copper contract was up six cents at US$4.20 a pound.
This report by The Canadian Press was first published Sept. 12, 2024.
