Israel Update Week Ending April 15th
Israel Responds to Terror Wave, Laser Defense Moves Forward, Economy
ON THE HOME FRONT
Life was slowly getting back to normal in Tel Aviv, after the terror attack last week. For the first few evenings, bars and restaurants were more empty than usual. However, by midweek things had all but returned to routine. Of course, given the big exodus underway, as Israelis leave for the Passover Holiday, it’s hard to judge what is typical.
The IDF reacted to the attack with vigor, hoping to stop the next act of terror before it occurs. According to reports, at least one terror cell was stopped before they were able to carry out an attack. However, by entering Jenin and other towns in the West Bank, the IDF provoked a reaction, leading Palestinians to clash with Israeli troops. As a result, six Palestinians have been killed in the last two days, raising fears clashes could escalate in the midst of Ramadan.
Clashes broke out on the Temple Mount this morning after Hamas called for a mass demonstration there, which quickly led to rock-throwing. Eventually, Israeli police intervened and entered the mosque area. After six hours of clashes, 300 Palestinians were arrested.
The Israeli response resulted in a warning from both Jordan, as well as coalition member Mansour Abbas. Israeli security forces are concerned about what might happen during today’s afternoon and evening prayers. This afternoon a 15-year-old Israeli Arab stabbed an Israeli Jewish man in Haifa. Her Father warned police that she was going to carry out a terror attack, but the police found her too late
It turns out the recent rash of terror attacks did not begin in Be’ersheva with an assault perpetrated by a supporter of ISIS. Rather, it started the day before, when a newly released Palestinian prisoner, also an ISIS supporter, killed a Moldovian worker in Jerusalem. While locating the culprit in that attack, police made an extraordinary discovery. The attacker, Wassim al-Said from Hebron, also carried out the murder of the Kaduri family in Jerusalem, three years ago. At the time, the couple's two adult sons were suspected, and even held in custody for a time, while that murder, unfortunately, remained unsolved. Only now has it become clear that the Kaduris were victims of a terror attack carried out by al-Said in the name of ISIS.
DEFENSE
There were reports that targets in Syria were attacked last Sunday, in a rare daytime raid. On Thursday night, Israeli planes apparently struck targets around Damascus. The renewed air activity over Syria came after a nearly one-month hiatus.
The Defense Ministry announced that Israel’s laser defense system passed an additional series of preparatory tests, in which it downed a full range of targets — ranging from incoming mortar rounds to UAVs. It is hoped the first of these new laser systems will be deployed within a year. The use of lasers is a game-changer. Each laser charge costs approximately $3.50, compared to an interceptor missile from Iron Dome, which cost $10,000 per deployment. Moreover, lasers are able to reload almost instantly. Thus, if enough laser systems are deployed, they will be able to counter every conceivable aerial threat.
POLITICS
The extremes in Israeli politics were busy this week. Joint List head, MK Ayman Odeh created a major stir when he called on all Arab Israelis to resign from all the security services, including the police. His statement was roundly condemned, especially by Arab Israeli policemen. MK Mahmoud Abbas, whose Raam party is part of the coalition, stated that Odeh made an attempt to ensure there could be no cooperation between the Joint List and the coalition. On the other side of the political spectrum, MK Betzalel Smotrich, leader of the Religious Zionist Party called on synagogues not to allow coalition members and government supporters to attend their services. Prime Minister Bennett’s reaction was to remind Israelis that the Second Temple fell because of baseless hatred in the Jewish community.
COVID-19
The daily Covid infection numbers continue to come down slowly. Israel now averages 5,000 new cases per day, with a positive rate of tests of a little below 10%. With no real restrictions, except for barely enforced indoor mask mandates, Covid infection numbers will continue to recede very slowly.
ECONOMICS
Bank of Israel decided to raise Israeli interest rates by .25%. This is the first raise since the beginning of the pandemic. The Bank of Israel is being careful as it does not want to raise interest rates too fast. If it can raise interest rates slower than the Fed does in the US it can limit the rising value of the Shekel. Money goes where the best returns are found, and if interest rates in Israel remain below those in the US, then extra money will not flow into Israel, thereby strengthening the Shekel. Based on numbers released today, Israel’s inflation rate is at 3.5% annually. However, the cost of apartments has soared 15.2% over the course of this past year.
The Bureau of Labor Statistics released an interesting data set. In it we see that non-ultra Orthodox Jewish Israelis have GDP per capita of nearly $50,000 — considerably above the OECD average of $40,000. However, in contrast, ultra-Orthodox Jewish Israelis garner a per capita GDP of approximately $15,000, while Arab Israelis earn an income of $18,000.
Israeli startup Ception has unveiled an AI-based system that reduces accidents and improves productivity and profitability of heavy equipment at construction sites, mines, quarries, and industrial plants. The system is set to lower operation costs and contribute to sustainability in these demanding work environments.
Equipment such as articulated trucks, haul trucks, loaders, bulldozers, and excavators, are involved in severe accidents on a daily basis. Accidents include collisions, overturning, and falling into chasms, costing lives, and damaging property. Moreover, operations without advanced technological equipment are inefficient, incurring heavy and unnecessary costs, and prolonging the time needed to complete projects. Ception seeks to transform this vital industry.
Noogata, a global leader in no-code artificial intelligence (AI), announced today that it has closed $16 million in Series-A funding led by Eight Roads, the global venture capital firm, with participation from Allon Ventures. The latest investment will help Noogata fuel rapid growth and accelerate its vision to enable any business user to make data-driven decisions leveraging AI. To date, this brings the company's total funding to $28 million, with the seed investment made by Team8 and Inference Partners.
To All My Readers: Have a Happy Passover, a Happy Easter, or a Ramadan Kareem.
Unless there is important breaking news we will be back on April 29th