A group of leading Israeli investment firms that manage hundreds of billions of shekels in public and pension funds published a letter Sunday warning they were concerned the government’s proposed judicial overhaul would cause uncertainties in the financial market.
The heads of the investment houses called on the opposing sides to hold compromise talks as proposed by President Isaac Herzog.
“As those who manage the investment houses and serve as the leading institutional investors in Israel, manage hundreds of billions of shekels of public money, for the public, we saw the importance of a clear call to all parties to enter into immediate, honest, and serious negotiations,” the letter by the Israel Investment Houses Association read.
The letter, addressed to Justice Minister Yariv Levin and opposition leader Yair Lapid, said the investment firms “view with concern the consequences of uncertainties on the financial markets and public savings.
“Therefore, all parties are called to show responsibility and leadership for the sake of maintaining stability and the social and economic conditions that have made possible the impressive growth of the economy in the last 20 years,” the letter added.
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The signees included the heads of Meitav, Altshuler Shaham, IBI, Yelin Lapidot, Psagot, Phoenix, Epsilon, and More.
Yesh Atid chair Yair Lapid (L) speaks during a joint press conference with fellow opposition party head at the Knesset on February 13, 2023. Justice Minister Yariv Levin holds a press conference at the Knesset on January 4, 2023. (Olivier Fitoussi, Yonatan Sindel/Flash90)
The legal overhaul, advanced by Levin and backed by Prime Minister Benjamin Netanyahu, would grant the government total control over the appointment of judges, including to the High Court, severely limit the High Court’s ability to strike down legislation, and enable the Knesset to re-legislate laws the court does manage to annul with a bare majority of just 61 MKs.
Critics say that along with other planned legislation, the sweeping reforms would undermine Israel’s democratic character by upsetting its system of checks and balances, granting almost all power to the executive branch and leaving individual rights unprotected and minorities undefended.
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Netanyahu and other coalition members have dismissed the criticism.
Organizers of a protest movement against the judicial overhaul have declared Monday a “national day of struggle,” which, for the second week in a row, will include a large rally outside the Knesset, as well as demonstrations in various cities and the shuttering of some businesses.
The demonstrations are meant to coincide with the expected first reading in the Knesset of legislation that would give the coalition control over the selection of judges (as well as of a bill to render Basic Laws immune to judicial oversight; discussion will also be continuing on other parts of the overhaul package in the Knesset’s Constitution, Law and Justice Committee).
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
