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May 20 (Bloomberg) — Al Hunt, executive editor at Bloomberg News, talks about President Barack Obama’s meeting with Israeli Prime Minister Benjamin Netanyahu and U.S. policy for the Middle East. Hunt, speaking on Bloomberg Television’s “InBusiness With Margaret Brennan,” also discusses a potential bid for the Republican presidential nomination by former Utah Governor Jon Huntsman. (Source: Bloomberg)

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Video: Al Hunt on Jon Huntsman, Obama’s Meeting With Netanyahu

April 19 (Bloomberg) — Munther Fahmi, owner of the American Colony Hotel bookshop in Jerusalem, talks about his possible deportation by Israeli authorities. Fahmi, who sells hard-to-find books on Middle East politics, culture and travel, is getting support from authors, academics and political figures including Orhan Pamuk, Ian McEwan, and Amos Oz. He spoke with Bloomberg’s Calev Ben-David on April 10. (Source: Bloomberg)

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Video: Jerusalem Bookseller Finds Backers to Fight Deportation

Video: Netanyahu Says Iran Needs to Know `All Options’ Open

November 9, 2010

Nov. 9 (Bloomberg) — Israeli Prime Minister Benjamin Netanyahu talks with Bloomberg’s Peter Cook about Iran’s nuclear program.

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Video: Steinitz Says Wide Israel-U.S. Rate Gap May Hurt Exports: Video

October 5, 2010

Oct. 5 (Bloomberg) — Israeli Finance Minister Yuval Steinitz talks with Bloomberg’s Margaret Brennan about the spread between Israeli and U.S. interest rates, and the outlook for the Middle East peace process. Steinitz speaks with Margaret Brennan on Bloomberg Television’s “InBusiness.” (This is an excerpt. Source: Bloomberg)

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Gazans Say Israeli Blockade Keeps Homes in Decay, Fails to Undermine Hamas

June 17, 2010

By Jonathan Ferziger and Saud Abu Ramadan June 18 (Bloomberg) — Half of Mohammed Abed Rabbo’s extended family of 23 lives in a tent next to the rubble of his two-story house in Gaza’s Jabalia refugee camp, while the rest is crowded into a small rented home nearby. Abed Rabbo says his house was destroyed 17 months ago by Israeli bulldozers after Palestinian militants hid nearby and fired at soldiers. The 55-year-old potato farmer says he can’t get material needed to rebuild because Israel restricts most construction supplies from entering Hamas-ruled Gaza. His is one of more than 3,000 homes that the United Nations reported were destroyed during the 22-day military offensive Israel says it initiated in December 2008 to stop Hamas and other groups from firing rockets at its southern towns. Israel clamped restrictions on goods entering Gaza after Hamas seized control there in 2007 and has begun relaxing them after facing international pressure in the wake of its May 31 raid on an aid flotilla that left nine pro-Palestinian activists dead. “The siege has affected everything in Gaza,” Abed Rabbo, whose farm is near Gaza’s northern border, said in an interview before yesterday’s Israeli decision to loosen the blockade. “It’s destroyed our lives.” The lives of Abed Rabbo and the 1.5 million other residents of Gaza have become hostage to a three-cornered political struggle pitting Hamas — which Israel, the U.S. and the European Union have branded as terrorist — against both the Jewish state and the Palestinian Authority government that controls the West Bank. ‘Pressuring the Population’ While Israel saw the blockade as a way to undermine Hamas’s hold on Gaza by turning the population against it, the strategy hasn’t worked, said Mohsen Adnan, director of the Arab Center for Agricultural Development in Gaza City. “Israel hoped that by pressuring the population in Gaza, Hamas would be uprooted, but Hamas is still strong and the people have been exhausted by the siege,” Adnan said in a telephone interview. Human rights groups, including Amnesty International, say restrictions on food imports and building materials have created a humanitarian crisis. Israeli Prime Minister Benjamin Netanyahu said June 2 that each week “an average of ten thousand tons of goods enter Gaza” and that “there’s no shortage of food. There’s no shortage of medicine.” Israel says it restricts imports of construction materials to Gaza because they can be used to build rockets, bunkers or bombs. Officials said they were also concerned about weapons being hidden in food packaging. Job Losses More than 1,100 Palestinians and 13 Israelis were killed in the Gaza conflict. Since then, more than 400 rockets and mortars have been fired into Israel, killing one foreign worker last March, the Israeli army said. Israel’s top ministers decided yesterday to loosen the blockade, changing the system in which goods enter Gaza and expanding the import of “material for civilian projects under international supervision,” the prime minister’s office said in a statement. German Foreign Minister Guido Westerwelle said the decision was a “first step” that must be followed by “swift, concrete and noticeable improvements in access to the Gaza Strip.” Egypt has also largely kept its Gaza border closed since Hamas took over because it says it doesn’t recognize the Islamic movement’s administration. After the flotilla raid, it opened the Rafah crossing, which is used mainly by people. Hamas, which won parliamentary elections in 2006, ousted troops loyal to Palestinian Authority President Mahmoud Abbas the following year and took full control of Gaza. ‘Food Insecure’ At least 3,540 homes in Gaza were destroyed in the conflict with Israel and 2,870 were severely damaged, the UN Office for the Coordination of Humanitarian Affairs said in an August 2009 report . Restrictions on imports and exports resulted in the loss of some 120,000 jobs, the report said. Haytham Khudeir, 30, who runs an import business out of an office in downtown Gaza City, estimates he’s lost some $500,000 in sales since Israel cut off most shipments into the territory. He buys coffee, mineral water and cooking oil at increased prices that come through smuggling tunnels from Egypt, built to circumvent the blockade, and can’t get the quantities once available through Israel. “It’s very difficult to get quality products and people don’t have money to buy them,” Khudeir said. “Running a business in Gaza these days is almost impossible.” The UN classifies 75 percent of Gaza’s population as “food insecure,” meaning they lack access to sufficient safe and nutritious food. It cited a shift in the diet of Gazans from more expensive foods, such as fruit, vegetables and animal products, to cheap and high-carbohydrate foods such as cereals, sugar and oil. ‘Vegetables and Bread’ “My children see fruit in the grocery stores, but we can’t afford it,” Walid Mushtaha, a 45-year-old unemployed father of nine, said in an interview. His family depends on food supplies from the United Nations Relief and Works Agency that include flour, olive oil, rice, sugar and canned beef. His family’s diet consists largely of “vegetables and bread,” he said. “On weekends we open the cans of processed beef. Fresh meat, maybe once a month.” Restricted goods ranging from computers to live cattle and motorcycles have been available at twice to four times their market price through the tunnels, which are licensed and taxed by Hamas. Weapons are also smuggled in via the tunnels. Full-Fledged War Israel says its blockade is legal because it is in “a state of armed conflict” with Hamas. Legal scholars such as Robin Churchill , a professor of international law at the University of Dundee in Scotland, say the legality turns on whether the conflict is a full-fledged war and whether the military benefit is proportionate to civilian suffering. Sitting in his tent and offering tea, Abed Rabbo said he rushed his family from their house when Israel started bombing and headed south, away from the area where fighting was most intense. After the war ended with a cease-fire on Jan. 18, 2009, Abed Rabbo said, he and his family returned to find their home destroyed. “I thought we might be able to get some cement from the flotilla, but look what happened,” he said. To contact the reporters on this story: Jonathan Ferziger in Tel Aviv at jferziger@bloomberg.net ; Saud Abu Ramadan in Gaza City at sramadan@bloomberg.net

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UN to Deliver Aid Flotilla’s Cargo to Gaza Strip Under Accord With Israel

June 15, 2010

By Bill Varner June 15 (Bloomberg) — The United Nations will transfer humanitarian aid supplies to the Gaza Strip from a flotilla of foreign ships that Israel intercepted in international waters May 31, the world body’s top envoy to the Middle East said. “The government of Israel has agreed to release the entire cargo to the United Nations in Gaza on the understanding that it is for the United Nations to determine its appropriate humanitarian use in Gaza,” Robert Serry told the UN Security Council today. Serry said in reference to Hamas that the UN has “reason to believe that the de facto authorities in Gaza will respect the independence” of the world body’s agency to aid Palestinians in Gaza and the West Bank. The UN will begin the transfer of the supplies “as soon as possible,” he said, adding that the amount of aid was “modest in scale compared with the needs in Gaza.” The cargo includes medicine, food and clothing, the Israeli Defense Ministry said today in an e-mailed statement announcing Israel’s agreement to the UN role. Israel has faced international criticism over the raid by naval commandos on a flotilla of aid ships as well as calls for it to lift restrictions on the flow of goods into the Hamas- controlled Gaza Strip. The U.S. has declined to join in the criticism of Israel. Criticism within Israel on the flotilla operation has focused largely on the execution of the raid and not the blockade. Israeli Probe The incident, which resulted in the deaths of nine pro- Palestinian activists, has led to demands for Israel or others to investigate the raid on the ships that headed Gaza in an effort to undermine Israel’s blockade. Israel’s Cabinet yesterday approved a public probe into the raid. Israel said it issued numerous warnings to the flotilla beforehand to change course for the port of Ashdod and unload there. The violence took place on only one of six ships in the flotilla. Israel launched an operation in the Gaza Strip in December 2008 which it said was meant to stop the firing of rockets into its territory. More than 1,000 Palestinians and 13 Israelis were killed in the conflict. Since the end of the three-week operation, some 330 rockets have been fired from Gaza into Israel, killing one foreign worker last March, the Israeli army said. Israel has been blockading Gaza since Hamas seized full control there in 2007, after winning Palestinian parliamentary elections the previous year. The group is considered a terrorist organization by the U.S., the European Union and Israel. A survey of Israeli Jews published in the Maariv daily on June 2 showed 94.8 percent agreeing that it was necessary to stop the boats, with 62.7 percent saying it should have been handled in a different manner. Only 8.1 percent thought Prime Minister Benjamin Netanyahu should resign. The newspaper didn’t say how many people were surveyed or give a margin of error. To contact the reporters on this story: Bill Varner at the United Nations at wvarner@bloomberg.net

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Netanyahu Announces `Independent’ Public Inquiry Into Gaza Flotilla Raid

June 13, 2010

By Calev Ben-David June 14 (Bloomberg) — Israel announced it is setting up an “independent” public probe into its raid on a Gaza-bound flotilla in which nine Turkish activists were killed. The probe will include two foreign observers. The commission will examine “the security circumstances surrounding the imposition of the naval blockade on the Gaza Strip and the conformity of the naval blockade with the rules of international law,” the office of Prime Minister Benjamin Netanyahu said in an e-mailed statement . It will also look into “the conformity of the actions taken by Israel to enforce the naval blockade in the incident of 31 May 2010 with the rules of international law.” The panel will be headed by former Israeli supreme court judge Jacob Turkel. The two foreign observers are Nobel Peace Prize winner and Northern Ireland politician David Trimble , and Ken Watkin, former Judge Advocate General of Canada’s armed forces. Demands for an international probe began after Israel’s May 31 raid in international waters on six ships that were attempting to breach its three-year blockade on Hamas-controlled Gaza. Israel last year refused to participate in a United Nations investigation of the 2008 Gaza war, an inquiry its leaders rejected as one-sided, and Netanyahu turned down a proposal for a UN-led probe into the ship incident. Independent Commission The inquiry will be conducted by “an independent public commission” that will examine Israel’s May 31 actions “to prevent vessels from reaching the coast of the Gaza Strip,” the statement said. The prime minister will bring his proposal to the Cabinet for a vote today. The Obama administration welcomed the announcement as “an important step forward.” In a statement, White House Press Secretary Robert Gibbs reiterated the administration’s support for “a prompt, impartial, credible and transparent investigation.” The statement said Israel “has a military justice system that meets international standards,” that the administration “will not prejudge the process or its outcome” and that it expects the findings to be “presented to the international community.” Radical Terror Groups The commission’s members also include retired Israeli general Amos Horev and international law expert Shabtai Rosenne. It will also investigate “the actions taken by the organizers of the flotilla and its participants, as well as their identity.” Israel has alleged that some members of the flotilla had links to radical Islamic terror groups. The panel will have the authority to request information from any Israeli government official, including Netanyahu and “including through testimony before the Commission,” the statement said. It will present its findings to the prime minister upon completion of its investigation. The Israel Defense Forces said June 8 that it had appointed Major-General Giora Eiland to lead a separate military investigation of the raid. The UN inquiry into the Gaza war, led by former UN prosecutor and South African judge Richard Goldstone , accused Israel and Hamas of war crimes and called on them to investigate the charges. Numerous Warnings Israel said it issued numerous warnings to the Gaza-bound flotilla to change course for the port of Ashdod and unload there. It says that soldiers were attacked with knives and clubs and seven were wounded, including by gunfire, after people aboard one of the ships managed to grab Israeli firearms. Activists have said they threw the firearms into the sea and that the Israelis instigated the violence. Israel has imposed restrictions on Gaza since the Islamic Hamas movement, which won Palestinian parliamentary elections in 2006, ousted forces loyal to President Mahmoud Abbas ’s Fatah group and seized full control of the territory in 2007. Hamas is considered a terrorist organization by the U.S., the European Union and Israel. The blockade of Gaza is legal, according to Israel, because it is in “a state of armed conflict” with Hamas. Criticism within Israel of the operation has focused largely on the execution of the raid and not the blockade, which polls show most Israelis support. Some countries, such as Turkey, dispute the legality of the blockade. Humanitarian Crisis Palestinians, backed by the UN and human-rights groups, say the restrictions on food imports and construction materials have created a humanitarian crisis. Israel denies that such a crisis exists, saying it restricts imports of building materials to Gaza because they can be used to build rockets, bunkers or bombs. Officials said they also were concerned about weapons being hidden in food packaging. Israel launched a three-week military offensive in Gaza in December 2008 that it said was meant to stop the firing of rockets by Hamas and other Palestinian militants into its territory. More than 1,000 Palestinians and 13 Israelis were killed in the conflict. More than 400 rockets and mortars have been fired from Gaza into Israel since the end of the 2008 military operation, killing one foreign worker last March, the Israeli army said. Hamas’s charter calls for the destruction of the Jewish state. Hamas leaders say they will renounce violence when Israel withdraws from territory occupied in 1967 and allows Palestinians to return to areas in Israel from which they fled in 1948. To contact the reporter on this story: Calev Ben-David in Jerusalem at cbendavid@bloomberg.net

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Israeli Forces Clash With Gaza Aid Flotilla Army Radio Says 10 Killed

May 30, 2010

By Jonathan Ferziger and Calev Ben-David May 31 (Bloomberg) — At least 10 members of a flotilla of ships carrying hundreds of pro-Palestinian activists and humanitarian aid supplies to the Gaza Strip were killed in clashes with Israeli naval forces, Israel Army Radio reported. Turkey’s Foreign Ministry called the raid “inhuman” and said it “may cause damage to our relations that will be impossible to repair,” according to the statement e-mailed by the ministry in Ankara today. Several of the aid ships were from Turkey. Israeli forces met resistance early today when they boarded the ships to prevent them from reaching Gaza, Army Radio said. A spokesman for the Israel army denied initiating violence. “We did not attack any boats,” the spokesman said, speaking anonymously under military guidelines. “The IDF is fulfilling the directions of the Israeli government to prevent anyone from entering the Gaza Strip without proper coordination and authorization from Israel.” Israel has said it wouldn’t let the ships reach Gaza, calling the mission a propaganda trick aimed at making it look bad. The Israeli government had said it would assist in offloading the cargo and sending it by truck to Gaza after a security inspection. Hamas, the militant organization that rules Gaza, said the Israeli action was an “act of terror.” Taher Nunu, a Hamas spokesman, said in an interview with Al-Jazeera television that Israel should be tried for war crimes. Three Israeli navy missile boats left the Haifa naval base last night, planning to intercept the flotilla, according to reporters on board. To contact the reporter on this story: Jonathan Ferziger in Tel Aviv at jferziger@bloomberg.net Calev Ben-David in Jerusalem at cbendavid@bloomberg.net

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Israeli Forces Clash With Gaza Aid Flotilla Army Radio Says 10 Killed

May 30, 2010

By Jonathan Ferziger and Calev Ben-David May 31 (Bloomberg) — At least 10 members of a flotilla of ships carrying hundreds of pro-Palestinian activists and humanitarian aid supplies to the Gaza Strip were killed in clashes with Israeli naval forces, Israel Army Radio reported. Turkey’s Foreign Ministry called the raid “inhuman” and said it “may cause damage to our relations that will be impossible to repair,” according to the statement e-mailed by the ministry in Ankara today. Several of the aid ships were from Turkey. Israeli forces met resistance early today when they boarded the ships to prevent them from reaching Gaza, Army Radio said. A spokesman for the Israel army denied initiating violence. “We did not attack any boats,” the spokesman said, speaking anonymously under military guidelines. “The IDF is fulfilling the directions of the Israeli government to prevent anyone from entering the Gaza Strip without proper coordination and authorization from Israel.” Israel has said it wouldn’t let the ships reach Gaza, calling the mission a propaganda trick aimed at making it look bad. The Israeli government had said it would assist in offloading the cargo and sending it by truck to Gaza after a security inspection. Hamas, the militant organization that rules Gaza, said the Israeli action was an “act of terror.” Taher Nunu, a Hamas spokesman, said in an interview with Al-Jazeera television that Israel should be tried for war crimes. Three Israeli navy missile boats left the Haifa naval base last night, planning to intercept the flotilla, according to reporters on board. To contact the reporter on this story: Jonathan Ferziger in Tel Aviv at jferziger@bloomberg.net Calev Ben-David in Jerusalem at cbendavid@bloomberg.net

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Israel Says Gaza Aid Ships Are `Propaganda,’ Will Block Them From Docking

May 25, 2010

By Jonathan Ferziger May 25 (Bloomberg) — Israel won’t allow an international flotilla to reach the Gaza Strip with construction materials and humanitarian supplies, an official said, calling the shipment a provocative stunt. While the Free Gaza Movement, the group behind the shipments, has “wrapped themselves in a humanitarian cloak, they are engaging in political propaganda and not in pro-Palestinian aid,” Foreign Ministry spokesman Yigal Palmor said today in a telephone interview from Jerusalem. The eight vessels, carrying 10,000 tons of cargo and some 550 pro-Palestinian activists through the Mediterranean Sea, will probably reach the coastal waters of Gaza by May 28 or 29, Dror Feiler, one of the organizers, said by satellite phone from aboard the Swedish-Greek ship Sofia. Israel has restricted entry of people and goods into Gaza since it was taken over by the militant Hamas movement in 2007, allowing in only a limited range of supplies including food, clothing and medicine in truck convoys. Israeli Navy ships have stopped three previous efforts by the Free Gaza Movement, an international group formed in 2008 to deliver aid, to reach the territory by sea. The ships set sail from Ireland, Sweden, Turkey and Greece, Feiler said. Some are carrying television crews that plan to broadcast live any confrontation between Israeli forces and the activists. “This is not going to look good on television,” said 58-year-old Feiler, an Israeli-born resident of Sweden. “We’re on a peaceful mission to help end the misery of the people in Gaza and it’s going to be very ugly if Israeli soldiers try to take over our ships.” Gaza War Hamas is considered a terrorist organization by Israel, the U.S. and European Union. Israel fought a three-week war in Gaza starting in December 2008 that it said was meant to stop Hamas and other militant groups from firing rockets into its territory. It has been negotiating a prisoner swap with Hamas to exchange a captive Israeli soldier, Gilad Shalit , for about 1,000 jailed Palestinians. The Palestinian Authority condemned Israel’s decision to stop the ships. “This is part of the Israeli policy of suffocating Gaza’s population of 1.5 million people by tightening the blockade,” spokesman Ghassan Khatib said in a telephone interview from Ramallah in the West Bank. Along with medical and school supplies, the ships this time are carrying cement, iron rods and other construction material that Israel has banned from entering Gaza, and that are needed to rebuild homes and other buildings destroyed in the war, Feiler said. Making Bombs Such materials are used by Hamas “for developing its arsenal, building bunkers and launching sites, and making rockets and mortars,” according to a statement e-mailed by the Israeli army. The ships can unload their cargo at Ashdod port, north of Gaza, and Israel will determine which supplies can be trucked in, Shlomo Dror , a Defense Ministry spokesman said. To contact the reporter on this story: Jonathan Ferziger in Tel Aviv at jferziger@bloomberg.net

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Israeli Stocks Slump, Bonds Gain on Concern Europe Debt Crisis May Spread

May 9, 2010

By David Wainer and Ronit Goodman May 9 (Bloomberg) — Israeli stocks slid the most in more than three months on concern Greece’s debt crisis is spreading and as a U.S. jury ruled against a unit of Teva Pharmaceutical Industries Ltd. Israel’s benchmark TA-25 index declined the most since Feb. 8, dropping 2 percent to 1,118.41 as of 12:49 p.m. in Tel Aviv. Teva , the world’s largest generic drugmaker slumped the most in almost 18 months. Government bonds rose, with the yield on the benchmark Mimshal Shiklit note due February 2019 falling to a two-week low of 4.79 percent as the price increased 0.09 shekel to 109.72. Stock losses “were expected following the collapse in the global markets,” said Yaron Fridman , equity strategist at Bank Hapoalim Ltd. in Tel Aviv. “There is no reason for long-term declines as they stem from the global retreats and not from real economic reasons, as the Israeli economy is strong and companies’ performances should continue to be strong.” U.S. stocks fell the most in 14 months on May 7 with the Standard & Poor’s 500 Index erasing 2010 gains amid concern a 110 billion-euro ($140 billion) rescue package for Greece won’t be enough to keep Europe’s most indebted nations from defaulting. Moody’s Investors Service said May 6 that banks in Portugal, Spain, Italy, Ireland and the U.K. could be at risk as the threat of contagion grows. Europe’s troubles shouldn’t affect Israel because of its “restrained” economic policies, Finance Minister Yuval Steinitz told Israel’s Army Radio today. Propofol Ruling Teva declined as much as 4.5 percent, the most since November 2008 to 217.30 shekels. A jury said Teva Parenteral Medicines must pay $356 million over its propofol medicine, which is used to sedate surgery patients. The shares last traded down 3.6 percent at 219.30 shekels. The Tel-Bond 60 index , a gauge of the 60 largest corporate bonds, declined 0.7 percent, the most since January. The shekel gained 0.2 percent to 2.7975 per dollar on May 7. To contact the reporters on this story: David Wainer in Tel Aviv at dwainer1@bloomberg.net ; Ronit Goodman in Tel Aviv at rgoodman9@bloomberg.net

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Berkshire Will Be a `Long-Term Investor’ in Chinese Electric Carmaker BYD

May 1, 2010

By Andrew Frye and Sapna Maheshwari May 1 (Bloomberg) — Berkshire Hathaway Inc. ’s David Sokol , one of Warren Buffett ’s top executives, said the company would be invested with China’s BYD Co. for a “very long time.” “We’re a long-term investor,” Sokol said in an interview at in Omaha, Nebraska, where Berkshire is holding its annual meeting. “They know we’re a supportive shareholder.” BYD Co., the Chinese maker of plug-in hybrid vehicles and rechargeable batteries, is preparing to sell electric cars in the U.S. Berkshire agreed in September 2008 to pay $231 million for a stake of approximately 10 percent in BYD through its MidAmerican Energy Holdings Co. Sokol is chairman at the unit and was appointed to Shenzhen-based BYD’s board of directors in August 2009. Buffett has invested in the world’s most populous nation through takeovers and stock purchases. His largest acquisition of a non-U.S. firm was Iscar Metalworking Cos., the Israeli company with operations in China. BYD said yesterday it’s locating its North American headquarters in downtown Los Angeles. The shares have more than tripled in the last 12 months in Hong Kong trading. To contact the reporter on this story: Andrew Frye in Omaha at afrye@bloomberg.net ; Sapna Maheshwari in New York at sapnam@bloomberg.net .

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Netanyahu Says He Will Know in Days If Talks With Palestinians to Proceed

April 25, 2010

By Gwen Ackerman April 25 (Bloomberg) — Israeli Prime Minister Benjamin Netanyahu said today he will know soon if the peace process will move forward, after he met with U.S. Middle East envoy George Mitchell . Mitchell had “positive and productive talks” with Israeli and Palestinian leaders in his three-day visit, an e-mailed statement from the U.S. Embassy said. The visit was the latest attempt to get Israel and the Palestinians to agree to U.S.- mediated indirect talks. “Israel wants the peace process to start immediately,” Netanyahu said today in comments broadcast on Army Radio. “The U.S. wants the process to start immediately, and I can only hope the Palestinians want to start the process immediately.” The Israeli leader said he will know “in the next few days” if negotiations will resume. Talks between Israel and the Palestinians stalled in December 2008 at the start of an Israeli military operation in the Hamas-controlled Gaza Strip that Israel said was aimed at stopping rocket attacks on its southern towns and cities. U.S. efforts to get the sides to resume negotiations have been stymied by Israeli plans to build 1,600 new homes for Jews in a part of Jerusalem captured from Jordan in the 1967 Middle East War and which the Palestinians seek as the capital of a future state. Palestinian Authority President Mahmoud Abbas has demanded the building plans be frozen before indirect talks can begin. Netanyahu has said Israel will continue to build in Jerusalem. Mitchell, who also met with Abbas, plans to return to the region next week, the embassy statement said. To contact the reporter on this story: Gwen Ackerman in Jerusalem at gackerman@bloomberg.net

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Buffett’s Iscar Metalworking Lured to China in Bid to Take Sandvik’s Lead

April 22, 2010

By Alisa Odenheimer and Calev Ben-David April 22 (Bloomberg) — Iscar Metalworking Cos., the Israeli machinery maker owned by Warren Buffett , said it wants to make acquisitions abroad, with China the most likely market because of a lack of antitrust issues. Iscar, the world’s second-biggest maker of metal-cutting tools, has ambitions to overtake global market leader Sandvik AB , Chairman Eitan Wertheimer said in an interview. A purchase “above a certain size” may prompt regulatory challenges in much of the world, though “China might be open,” and the takeover candidate would have to fit into strategy, he said. Buffett’s self-described “travel agent,” Wertheimer, 58, plans a trip to the Far East with the Berkshire Hathaway Inc. chairman later this year to visit Japanese unit Tungaloy , a manufacturer of automotive and aerospace tools that Iscar bought in 2008 and is reorganizing. The purchase added capacity in Asia, where Iscar also has Chinese and South Korean plants. “We are dying to buy, but there is very little variety around, and it has to be the right price,” Wertheimer said at his office in Herzliya, just north of Tel Aviv. An acquisition’s match with the company is important because “I don’t want to be big and stupid. I enjoy a lot to be the number two and be the smart guy. I want to be the Einstein of the field.” Iscar, which has its headquarters in the northern Israeli town of Tefen, was founded by Eitan’s father Stef Wertheimer in 1952. It makes machine tools for the car-manufacturing and planemaking industries, and customers include Toyota Motor Corp. Berkshire paid $4 billion in 2006 for an 80 percent stake in Iscar, with Wertheimer’s family owning the remaining 20 percent. Sales Recovering The Israeli company’s sales are recovering, approaching the level of before the global recession started, with China, India and Korea leading the way and Europe lagging behind, Wertheimer said in the April 18 interview, declining to disclose details. Gross domestic product in China rose 11.9 percent from a year earlier in the first quarter, according to the country’s statistics bureau. India’s economy in the year through March probably expanded 7.2 percent, the country’s Finance Ministry estimates. That compares with a 5 percent GDP contraction in 2009 for Germany, Europe’s biggest economy. The recession led Iscar to shift to a four-day workweek for four or five months last year, allowing it to avoid firing any of its 10,000 employees, Wertheimer said. “We had to play for time to keep the people,” he said. Wertheimer said he’s looking forward to “schmoozing” with Buffett about the planned visit to the revamped Tungaloy while attending Berkshire’s annual meeting on May 1 in Omaha, Nebraska. The Japanese trip would be the third that Wertheimer has helped arrange for Buffett, following a visits to China and South Korea in October 2007 and to Germany, Switzerland, Spain and Italy in May 2008. Iscar is in a good position to expand through acquisitions, with the “combination of Eitan Wertheimer’s skill with Warren Buffett’s checkbook,” while industry earnings are below average levels, says Shai Dardashti , managing partner of New York-based Dardashti Capital Management, a Berkshire Hathaway investor. To contact the reporters on this story: Alisa Odenheimer in Jerusalem at aodenheimer@bloomberg.net ; Calev Ben-David in Jerusalem at cbendavid@bloomberg.net .

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Netanyahu Says Jerusalem Construction Rift Could Delay Peace Talks by Year

March 23, 2010

By Gwen Ackerman March 23 (Bloomberg) — U.S. acceptance of Palestinian demands that Israel halt construction in east Jerusalem could put Middle East peace talks on hold for a year, Israeli Prime Minister Benjamin Netanyahu said today. “For 42 years we have been building in the Jewish neighborhoods of Jerusalem. No one argued about it,” Netanyahu said in a meeting with U.S. House Speaker Nancy Pelosi , according to his spokesman, Nir Hefez. “This was never raised as a point of contention between us and the U.S.,” Netanyahu said. “The Palestinians are now raising a new demand. If this demand is adopted we are liable to lose another year.” Netanyahu met with Pelosi, a California Democrat, before planned talks today with President Barack Obama that come as the two countries seek to smooth over a dispute about Israel’s approval of plans to build new apartments in east Jerusalem. The housing announcement came during a March 9 visit by U.S. Vice President Joe Biden in what Israeli officials, including the country’s ambassador to Washington, have described as a surprise action by bureaucrats. Israel has never fulfilled its commitment under a 2003 U.S. backed peace “road map” to freeze all settlement activity. Netanyahu yesterday said Israel doesn’t consider Jerusalem to be a settlement. Still Building “The Jewish people were building Jerusalem 3,000 years ago, and the Jewish people are building Jerusalem today,” Netanyahu said in a speech. Palestinians have linked participation in indirect peace talks to the cancellation of the plans. “Netanyahu is challenging the international community,” chief Palestinian negotiator Saeb Erakat said in an e-mailed statement. “The policies of this Israeli government and Netanyahu’s provocative statements about intending to continue settlement activities are like pouring oil on fire.” Biden hosted Netanyahu for dinner yesterday in which a “productive, candid discussion on the full range of issues in the bilateral relationship” was held, the White House said in an e-mailed statement. In the meeting with Netanyahu scheduled for later today, Obama will seek “to create an atmosphere of trust and open dialogue,” White House spokesman Robert Gibbs said. Already Inhabited Netanyahu explained to Pelosi that the construction under question would be in an already inhabited Jewish neighborhood of Jerusalem. “The Palestinians don’t really think Israel will ever dismantle Pisgat Zeev or French Hill. We can’t get caught up in this unreasonable, illogical demand,” he said, mentioning two established neighborhoods built on land Israel captured from Jordan in the 1967 Middle East war and then annexed in a move never internationally recognized. Palestinians seek the area as the capital of their prospective state. U.S. Secretary of State Hillary Clinton told the pro-Israel American Israel Public Affairs Committee yesterday that Israeli settlement construction in areas sought by Palestinians “exposes daylight between Israel and the United States that others in the region could hope to exploit.” Clinton said the building “undermines America’s unique ability to play a role” in peace efforts. ‘Proximity’ Talks Israel has agreed to the U.S.-mediated “proximity” talks as a way to move to direct negotiations that Netanyahu has said are the only way to reach a peace agreement. The U.S. has called on Israel to halt all construction in the West Bank and east Jerusalem. Israel has imposed a partial freeze on building in the West Bank while saying construction in Jerusalem will continue. “There are fundamental problems that will continue to resurface,” Aaron David Miller , a public policy fellow at the Woodrow Wilson International Center for Scholars in Washington, said in a phone interview. “The real question is if the president and prime minister can work out an approach that will minimize potential difficulties, specifically on negotiations,” he said. “If they can’t do that, then we are headed to more soap operas.” To contact the reporter on this story: Gwen Ackerman in Washington at gackerman@bloomberg.net

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Netanyahu Accepts Broad Middle East Talks While Standing Firm on Jerusalem

March 22, 2010

By Gwen Ackerman and Peter S. Green March 22 (Bloomberg) — Israeli Prime Minister Benjamin Netanyahu arrives in Washington to meet President Barack Obama after accepting some U.S. demands to calm a dispute over east Jerusalem construction plans and remove obstacles to peace talks. Netanyahu dropped previous objections to raising central issues of the Israeli-Palestinian conflict during proposed U.S.- mediated “proximity” talks with the Palestinians intended to pave the way for direct negotiations. “Was Netanyahu’s arm twisted into making this last concession, and may the Americans twist more?” said Dan Schueftan , a political scientist at Haifa University. “The answer is yes.” It remains uncertain whether Netanyahu’s move will fully satisfy the U.S., or the Palestinians who want Israel to freeze all settlement construction including in east Jerusalem, a condition the prime minister continues to resist. At stake are whether the proximity talks will begin, and whether the U.S. and Israeli governments can repair the damage to their relationship created by the housing dispute. Netanyahu told his Cabinet yesterday that in the proximity talks “each side will be able to raise its positions on all the issues in dispute.” That opens the way for discussion on the future status of Jerusalem and Palestinian refugees, issues that have proven the most intractable in resolving the conflict. Meeting With Envoy Netanyahu met in Jerusalem afterwards with the U.S. Middle East envoy George Mitchell . He received a formal invitation to meet Obama tomorrow just hours before boarding his plane for the trip to Washington. While in the U.S. capital, the prime minister is also scheduled to meet Secretary of State Hillary Clinton and address the U.S.’s largest pro-Israel lobbying group, the American Israel Public Affairs Committee . He will dine with Vice President Joe Biden tonight. Netanyahu’s agreement “to negotiate final status issues” is “one step in the right direction,” said Palestinian Authority spokesman Ghassan Khatib . “We are waiting to hear the Israeli response to the rest of the requirements, especially the issue of illegal building of settlements in occupied territories, including Jerusalem.” Jerusalem Policy Netanyahu yesterday reiterated the long-held Israeli position that all of Jerusalem is Israeli territory. “Our policy toward Jerusalem is the same policy of all Israeli governments in the past 42 years and it has not changed,” Netanyahu said before the Cabinet meeting. “From our point of view, construction in Jerusalem is like construction in Tel Aviv.” Israel’s TA-25 Index closed 0.5 percent lower at 1,209.09 yesterday. The benchmark Mimshal Shiklit note due February 2019 dropped 0.19 shekel to 109.36 at the close. The yield on the 6 percent security rose four basis points to 4.75 percent. The announcement during Biden’s visit to Israel earlier this month that Israel had approved plans to build 1,600 new housing units in east Jerusalem derailed the planned start of the proximity talks and earned the Netanyahu government rebukes from Biden, Obama and Clinton. Israel captured east Jerusalem from Jordan in the 1967 war and its annexation of the area later was never internationally recognized. Palestinians seek the territory as the capital of a future state. ‘Mutual Confidence-Building’ In a telephone call with Clinton on March 18, Netanyahu proposed “mutual confidence-building steps” for Israel and the Palestinian Authority to defuse the tensions over the east Jerusalem project. According to a U.S. official who spoke on condition of anonymity, Washington seeks a freeze of the planned housing units along with gestures to bolster the Palestinian Authority. “It’s not about any one particular action,” Clinton said in a March 19 interview with Bloomberg TV. “It’s about the overall atmosphere that is necessary to demonstrate clearly and unequivocally the commitment to the negotiations and the outcome of a two-state resolution.” ‘Time to Resolve’ Biden said March 11 that because construction of the housing units will take several years, “it gives negotiations the time to resolve this, as well as other outstanding issues.” Netanyahu is considering more gestures to the Palestinians, said an Israeli official, speaking on condition of anonymity because he wasn’t authorized to discuss the issue with the press. They include easing restrictions on the Gaza Strip, the official said. Gaza is controlled by the Islamic group Hamas, which the U.S. and Israel regard as a terrorist organization. Both Netanyahu and Obama have much at stake in resolving the disagreement over the housing plan. For the U.S., making progress on the Israeli-Palestinian conflict is important to win Arab support for stopping Iran’s nuclear program, withdrawing U.S. troops from a stable Iraq and battling extremists in the Middle East, Afghanistan and Pakistan, according to U.S. officials. “Arab anger over the Palestinian question limits the strength and depth of U.S. partnerships with governments and peoples” in the Middle East and South Asia and “weakens the legitimacy of moderate regimes in the Arab world,” General David Petraeus , the commander of U.S. forces in the Middle East, told a U.S. Senate committee March 16. Netanyahu is faced with the potentially competing priorities of preserving his governing coalition, which includes elements such as the religiously oriented Shas party that support the east Jerusalem housing project intended for Orthodox Jews, and maintaining Israel’s relationship with its chief strategic ally. Obama said March 17 that he doesn’t see a crisis in relations with Israel. “Israel’s one of our closest allies and we and the Israeli people have a special bond that’s not going to go away,” Obama said in an interview with the Fox News Channel. “But friends are going to disagree sometimes.” To contact the reporters on this story: Gwen Ackerman in Jerusalem at gackerman@bloomberg.net . Peter S. Green in New York at psgreen@bloomberg.net

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Teva Said to Beat Pfizer, Actavis in $4.8 Billion Ratiopharm Acquisition

March 18, 2010

By Aaron Kirchfeld and Naomi Kresge March 18 (Bloomberg) — Teva Pharmaceutical Industries Ltd. is close to an agreement to buy Ratiopharm GmbH for about 3.5 billion euros ($4.78 billion), ending a nine-month battle for Germany’s second-biggest maker of generic medicines, two people familiar with knowledge of the sale said. Petah Tikva, Israel-based Teva beat Pfizer Inc. and Actavis Group hf, which also competed in the auction, according to the people, who declined to be named as the process isn’t public. It is Teva’s biggest purchase since buying Barr Pharmaceuticals Inc. for $7.4 billion in 2008. Ratiopharm would give the Israeli drugmaker a top spot in the $8.6 billion German market for copied drugs, the world’s second-largest after the U.S., according to Norwalk, Connecticut-based IMS Health Inc. Teva would be paying about 2.2 times 2009 sales, more than the 1.5 times multiple Cephalon Inc. agreed to pay for Ratiopharm’s Swiss affiliate Mepha Gruppe last month. “It’s the last major piece in the jigsaw for Teva in Europe,” said Frances Cloud , an independent analyst in London, in an interview before the agreement was announced. “It will put them comfortably in the frame to deliver their 2015 targets for Europe.” Teva spokesman Yossi Koren declined to comment. Ratiopharm, based in Ulm, has scheduled a press conference for 2 p.m. local time in Cologne today. Vivien Kremer , a spokeswoman for Ratiopharm’s investment holding, also declined to comment. Takeovers and growth outside the U.S., Teva’s largest market, are part of Chief Executive Officer Shlomo Yanai ’s goal to more than double annual revenue to $31 billion by 2015 as rising health-care costs push patients and policy makers toward lower-priced copied drugs. Teva gets less than 25 percent of its sales in Europe. Competition The Israeli company, which is the world’s largest maker of generic drugs, is targeting $6.8 billion in net income five years from now while absorbing $1 billion in lost revenue as a result of competition for Copaxone, its top-selling product, Yanai told analysts in New York in January. Ratiopharm was put up for sale in June as owner Ludwig Merckle sought funds to repay debt amassed by his father Adolf Merckle , Ratiopharm’s founder, who committed suicide in January 2009 after making wrong-way bets on the stock market. Mepha was also sold by the Merckles. The German company reported 307 million euros in earnings before interest, tax, depreciation and amortization last year on 1.6 billion euros in revenue. The takeover would catapult Teva into the top three generic-drug makers in Germany, alongside Novartis AG’s Hexal unit and Stada Arzneimittel AG . The deal also gives it 3 of the top 10 generic products by volume in the German retail drug market and 5 of the top 10 generic drugs sold to hospitals, according to data from IMS Health. The Israeli drugmaker up to now had none of the top generics in Germany. Teva last year bought stakes in OncoGenex Pharmaceuticals Inc., gaining rights to an experimental cancer therapy, and Taisho Pharmaceutical Industries Ltd., increasing its access to the Japanese generic-drug market. To contact the reporters on this story: Aaron Kirchfeld in Frankfurt at akirchfeld@bloomberg.net ; Naomi Kresge in Zurich at nkresge@bloomberg.net

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Teva Said to Beat Pfizer, Actavis in $4.8 Billion Ratiopharm Acquisition

March 18, 2010

By Aaron Kirchfeld and Naomi Kresge March 18 (Bloomberg) — Teva Pharmaceutical Industries Ltd. is close to an agreement to buy Ratiopharm GmbH for about 3.5 billion euros ($4.78 billion), ending a nine-month battle for Germany’s second-biggest maker of generic medicines, two people familiar with knowledge of the sale said. Petah Tikva, Israel-based Teva beat Pfizer Inc. and Actavis Group hf, which also competed in the auction, according to the people, who declined to be named as the process isn’t public. It is Teva’s biggest purchase since buying Barr Pharmaceuticals Inc. for $7.4 billion in 2008. Ratiopharm would give the Israeli drugmaker a top spot in the $8.6 billion German market for copied drugs, the world’s second-largest after the U.S., according to Norwalk, Connecticut-based IMS Health Inc. Teva would be paying about 2.2 times 2009 sales, more than the 1.5 times multiple Cephalon Inc. agreed to pay for Ratiopharm’s Swiss affiliate Mepha Gruppe last month. “It’s the last major piece in the jigsaw for Teva in Europe,” said Frances Cloud , an independent analyst in London, in an interview before the agreement was announced. “It will put them comfortably in the frame to deliver their 2015 targets for Europe.” Teva spokesman Yossi Koren declined to comment. Ratiopharm, based in Ulm, has scheduled a press conference for 2 p.m. local time in Cologne today. Vivien Kremer , a spokeswoman for Ratiopharm’s investment holding, also declined to comment. Takeovers and growth outside the U.S., Teva’s largest market, are part of Chief Executive Officer Shlomo Yanai ’s goal to more than double annual revenue to $31 billion by 2015 as rising health-care costs push patients and policy makers toward lower-priced copied drugs. Teva gets less than 25 percent of its sales in Europe. Competition The Israeli company, which is the world’s largest maker of generic drugs, is targeting $6.8 billion in net income five years from now while absorbing $1 billion in lost revenue as a result of competition for Copaxone, its top-selling product, Yanai told analysts in New York in January. Ratiopharm was put up for sale in June as owner Ludwig Merckle sought funds to repay debt amassed by his father Adolf Merckle , Ratiopharm’s founder, who committed suicide in January 2009 after making wrong-way bets on the stock market. Mepha was also sold by the Merckles. The German company reported 307 million euros in earnings before interest, tax, depreciation and amortization last year on 1.6 billion euros in revenue. The takeover would catapult Teva into the top three generic-drug makers in Germany, alongside Novartis AG’s Hexal unit and Stada Arzneimittel AG . The deal also gives it 3 of the top 10 generic products by volume in the German retail drug market and 5 of the top 10 generic drugs sold to hospitals, according to data from IMS Health. The Israeli drugmaker up to now had none of the top generics in Germany. Teva last year bought stakes in OncoGenex Pharmaceuticals Inc., gaining rights to an experimental cancer therapy, and Taisho Pharmaceutical Industries Ltd., increasing its access to the Japanese generic-drug market. To contact the reporters on this story: Aaron Kirchfeld in Frankfurt at akirchfeld@bloomberg.net ; Naomi Kresge in Zurich at nkresge@bloomberg.net

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Israel Passes Central Bank Law Sought by Fischer as He Weighs Second Term

March 16, 2010

By Alisa Odenheimer March 16 (Bloomberg) — Israel’s parliament approved a law governing the central bank, legislation that Governor Stanley Fischer has said would be a key factor as he considers a second term. The law was backed by a vote of 28 to 1. Fischer attended the balloting today. Fischer, whose five-year term finishes at the end of April, said on Jan. 27 that approval of the legislation would be an “important” consideration in his decision whether to remain in office. The current law governing the bank dates from 1954. Fischer, 66, who was Federal Reserve Chairman Ben S. Bernanke’s thesis adviser, helped guide the Israeli economy through the global crisis, cutting interest rates as the recession unfolded and raising them when it ended. The economy grew 0.7 percent in 2009 compared with a 3.4 percent average contraction in the Organization for Economic Cooperation and Development Countries. “I hope he will announce that he is staying,” Knesset Finance Committee chairman Moshe Gafni said in presenting the law to parliament. “It is very important to the State of Israel that he stay on.” Israel’s banking system was stable during the global financial crisis, something which Gafni told parliament could be credited to Fischer’s actions. The Bank of Israel law, which successive governments have been discussing for more than a decade, specifies price stability as the central bank’s primary goal, forms a board of directors with a majority of members who are not bank employees, and creates a six-member committee to set interest rates . Under the current law, the governor has the sole authority to change rates and make management decisions. The monetary committee established by the legislation will be headed by the governor and will include the deputy governor, an additional senior central bank official, and three members from outside the bank. In the event of a tie, the governor will have the deciding vote. Fischer has said that on average, decisions made by a group of professionals are better than those made by an individual. To contact the reporter on this story: Alisa Odenheimer in Jerusalem at aodenheimer@bloomberg.net

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Biden Calls Israel Housing Plan Threat to Peace Talks Amid Visit to Region

March 9, 2010

By Gwen Ackerman and Jonathan Ferziger March 10 (Bloomberg) — Vice President Joe Biden condemned an Israeli plan to build new houses in East Jerusalem, saying it threatened to undermine a U.S. effort to restart the Israeli- Palestinian peace process that had brought him to the region. In a statement issued hours after he met with Israeli Prime Minister Benjamin Netanyahu in Jerusalem yesterday, Biden said the announcement of the plan “is precisely the kind of step that undermines the trust we need right now and runs counter to the constructive discussions that I’ve had” in Israel. “We must build an atmosphere to support negotiations, not complicate them,” said Biden, who will meet with Palestinian Authority President Mahmoud Abbas in Ramallah today. Israel’s Interior Ministry planning committee approved the plans for 1,600 new homes, according to an e-mailed statement yesterday. The ministry said in the statement that the decision was a “procedural” step in a “long process” and that the timing had “no connection whatsoever” to Biden’s visit. The Obama administration wasn’t informed in advance about Israel’s announcement, said a U.S. official who spoke on condition of anonymity. The Palestinian Authority criticized Israel’s move, saying it “will obstruct efforts to resume the negotiations with indirect talks.” The homes approved yesterday will be built in an area of Jerusalem captured by Israel from Jordan in the 1967 Middle East war. The Palestinians seek east Jerusalem as the capital of a future state to be established in the Gaza Strip and West Bank. Biden’s trip began March 8 with the announcement that Israel and the Palestinians had agreed to participate in negotiations that would allow them to discuss peace without meeting face-to-face. Settlements Dispute Previous U.S. efforts to revive talks foundered on the issue of West Bank settlements, with Netanyahu announcing a partial building halt and Abbas demanding a freeze on all construction. George Mitchell , the special envoy for Mideast peace who recently returned from the region, said on March 8 that he was “pleased that the Israeli and Palestinian leadership have accepted indirect talks” and urged all parties “to refrain from any statements or actions which may inflame tensions.” Fayez Abu Eita, spokesman for Abbas’s Fatah party in the West Bank, said the onus was on Biden, 67, to exploit his visit to pressure Israel to stop “settlement activities.” Before Biden’s arrival, Israel disclosed that it had approved construction for 112 new homes in the West Bank, drawing condemnation from the Palestinian Authority, which called the action “provocative.” Talks Frozen Israeli-Palestinian talks have been frozen since the end of 2008, when Israel carried out an offensive in the Gaza Strip that it said was intended to stop Hamas from firing rockets at Israeli communities. Indirect negotiations enable Palestinians to engage with Israel even though Abbas made a public commitment to forgo talks until all settlement construction is stopped. The foreign ministers of Arab states agreed in Cairo last week to give the “proximity talks” four months and call for an emergency United Nations Security Council meeting if they fail. After meeting with Netanyahu yesterday, Biden said “peace is going to require both parties to make some historically bold commitments.” He said the U.S. “will always stand with those who take risks for peace.” Daniel Kurtzer , the U.S. ambassador to Israel from 2001 to 2005, said Israel’s housing announcement during the vice president’s trip “tells you this is a Swiss-cheese settlement freeze. It’s really not serious.” ‘It’s Surprising’ “It’s surprising it would be this overt when there’s an arrival of a friend like Joe Biden,” said Kurtzer, now a visiting professor at Princeton University in New Jersey. Biden will also meet with Palestinian Prime Minister Salam Fayyad and tour the West Bank town of Bethlehem. On March 11, he flies to Jordan. Palestinians would like to see the U.S. pressure Israel to stop all settlement activity and set dates for progress to be made, said Nabil Kukali , director of the Beit Sahour, West Bank- based Palestinian Center for Public Opinion . “Palestinians in general want the American government to just be fair and neutral,” said Kukali. In Jerusalem, Biden also told Israeli leaders that the U.S. was “determined to prevent Iran from acquiring nuclear weapons,” and expressed an “absolute, total, unvarnished commitment to Israel’s security.” Iran Restrictions The U.S. has given China, Britain, France, Russia and Germany a proposal to tighten restrictions on deals with Iran’s banking, shipping and insurance industries. Gabriela Shalev , Israel’s ambassador to the United Nations, told reporters in New York that while her government would like to see “crippling” new UN sanctions imposed on Iran, the chances were “grim” that the Security Council would agree on such measures. Failure to adopt such sanctions would make it more likely that either one of two “bad options” would occur: Iran will “race” toward developing nuclear weapons or be stopped “by force” from doing so, Shaley said. Defense Minister Ehud Barak said yesterday that while Israel continued to seek out an arrangement that would stop Iran’s nuclear program, it was keeping one hand “with its finger near the trigger to defend itself,” a statement from his office said. To contact the reporters on this story: Gwen Ackerman in Jerusalem at gackerman@bloomberg.net ; Jonathan Ferziger in Jerusalam and Ramallah at 1200 or jferziger@bloomberg.net .

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Europe Presses Israel to Halt Settlement Construction as Ashton Visits

March 6, 2010

By James G. Neuger March 6 (Bloomberg) — The European Union pressed Israel to halt settlement construction as planned indirect talks with the Palestinians gave a new flicker of hope to the Middle East peace process. With U.S.-mediated talks slated to start in coming days, EU foreign policy chief Catherine Ashton said she will travel to the region to keep the pressure on both sides. Europe’s priority is “supporting the Palestinian Authority particularly in what I would describe as state building,” Ashton told reporters today after a meeting of EU foreign ministers in Cordoba, Spain. Peace talks ground to a halt after Israel’s military offensive in the Gaza Strip in late 2008. While Israeli Prime Minister Benjamin Netanyahu offered to partially freeze the West Bank settlements, Palestinian Authority President Mahmoud Abbas said only a full freeze would lead him back to the negotiating table. “This continuation of the settlements is really something that stands in the way,” Luxembourg Foreign Minister Jean Asselborn said. “This provocation has to stop.” Under the “proximity talks” at as yet undisclosed locations, U.S. envoy George Mitchell will shuttle between meetings with the Israeli and Palestinian sides in order to reopen communications channels. Arab states on March 3 endorsed that formula, which allows Abbas to sidestep a vow to boycott negotiations as long as Israeli construction on the West Bank continues. ‘Two to Tango’ In the absence of progress in four months, the Arab League ministers said they would make a new appeal to the United Nations Security Council. Israeli police clashed with Palestinians at a Jerusalem holy site yesterday after officers said stones were hurled at Jewish worshippers in the area. Injuries were reported on both sides. “It takes two to tango,” Finnish Foreign Minister Alexander Stubb said. “If there is no willingness for peace or a settlement on the Israeli side or the Palestinian side, we might as well be here in 10 years talking about the same stuff.” Ashton said she has asked Israel to make it possible for her to visit Gaza, home to 1.4 million Palestinians. Gaza is ruled by the Islamic Hamas movement and is under an Israeli economic blockade. The trip starting March 14 marks Ashton’s highest-profile diplomatic venture since taking on the EU post in November. National ministers in Cordoba defended her against criticisms that that she hasn’t been active enough. “I’m not here to raise questions about Lady Ashton,” German Foreign Minister Guido Westerwelle said. “Quite the contrary: I want her to succeed.” Discussions also started over the shape of a European foreign service headed by Ashton, bringing together as many as 7,000 EU and national officials. The EU will start setting up the service later this year. To contact the reporter on this story: James G. Neuger in Cordoba, Spain at jneuger@bloomberg.net

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British journalist warns of Israeli plot to draw US into war with Iran

February 28, 2010

British journalist warns of Israeli plot to draw US into war with Iran

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Germany cancels economic deal with Iran over Israeli pressures

January 26, 2010

Germany cancels economic deal with Iran over Israeli pressures

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Obama Bid for Progress in Middle East Peace Talks Dealt Setback, Arabs Say

November 4, 2009

By Indira A.R. Lakshmanan and Bill Varner Nov. 5 (Bloomberg) — The Obama administration’s effort to end the Middle East conflict has suffered a setback, the Arab League said at the United Nations after Secretary of State Hillary Clinton assured Egyptian leaders of the U.S. commitment. “He is a good man and his intentions are good, but we are back to square one,” Arab League Ambassador Yahya Mahmassani said of President Barack Obama’s bid during his first year in office to make headway toward Israeli-Palestinian peace talks and a state for Palestinians. “His words have not led to actions so far.” Clinton returned from five days of crisscrossing the region yesterday, after adding a stop in Cairo to try to ease Arab anger over her statements Oct. 31 in Jerusalem. She came under fire for hailing as “unprecedented” Israeli Prime Minister Benjamin Netanyahu’s proposal to restrict, rather than halt, settlement construction in the West Bank. The outcry from Arab governments overshadowed Clinton’s Mideast tour and came as Arabs pressed at the UN for prosecution of Israeli officials for alleged war crimes during the December- January offensive in the Gaza Strip. Israel has said it won’t resume peace talks while facing possible war-crimes charges. For three days starting at a meeting of Arab leaders in Morocco Nov. 2, Clinton insisted that U.S. policy on Israeli settlements hasn’t changed. “We do not accept the legitimacy of settlement activity,” she said in Cairo. Talks in Egypt Clinton and her Mideast advisers were upbeat yesterday about the reception they got from Egyptian President Hosni Mubarak, who wields influence with both Israel and the Palestinians, for U.S. calls for a swift return to negotiations for a two-state solution. U.S. officials billed it as a comeback, just days after Clinton was battered for a perceived softening of American opposition to Israeli settlements. “You heard an Egyptian statement of policy which has moved a lot closer to our position about wanting to focus on the endgame than what you might have heard from Arab leaders a week ago,” said Jeffrey Feltman , the assistant secretary of State, who handles the Middle East. There is a lack of “clarity” in Clinton’s statements on the issue, according to Jonathan Spyer , a political scientist at the Interdisciplinary Center Herzliya in Israel. “There were various statements made by Hillary, almost comically, being generous to Netanyahu in Jerusalem, then quickly trying to backtrack when speaking in an Arab context,” Spyer said in an interview. “This phase of Obama Middle East policy is over and what comes next we don’t yet know.” Back to Talks Clinton’s trip was intended to get Israel and the Palestinian Authority back into broad talks on forming a Palestinian state. Negotiations broke down in December when Israel began the military operation in the Gaza Strip to stop the firing of rockets on Israeli communities by Hamas, designated a terrorist group by the U.S. “What we should focus on is the endgame, the end of the road, and not waste time in holding onto this issue or that issue as a starting point before negotiations,” Egyptian Foreign Minister Ahmed Aboul Gheit said at a joint press conference with Clinton, according to an unofficial translation. Aboul Gheit said he and Mubarak were convinced after their talks with Clinton yesterday that the U.S. hasn’t changed its position that Israel should freeze the building of Jewish settlements. The Palestinians say the development of Israeli communities in the West Bank is an obstacle to creating a state on the territory. Upbeat Note Clinton sounded an upbeat note as she ended her trip, which included a three-day visit in Pakistan and a stop in Israel. “I carry with me a personal conviction that nothing can be allowed to interfere with our determination and our resolve and our conviction,” she told a news conference in Cairo. American officials said the gap between Israel and the Palestinians is requiring considerable energy to keep the diplomatic effort alive. “There is no reason to have any positive feelings about what is going to happen,” Hani Sabra, Mideast analyst for the Eurasia Group , a New York-based political-risk analysis firm, said in an interview. “The Clinton trip was a failure. It is time to step back for now. Nothing is going to happen in the next few months.” In the West Bank city of Ramallah, negotiator Saeb Erakat said Palestinians are facing a “moment of truth” and may give up on peace talks if Israel doesn’t stop building housing. “Israel has a choice: settlements or peace,” Erakat said. Core Issues Clinton said the settlement dispute may not be resolved until talks start on the core issues of the conflict. “What we’re looking at here is recognition that getting into final-status issues will allow us to bring an end to settlement activity,” she said. Those major issues include borders and the status of Jerusalem, where Palestinians want to put their capital. Last May, Clinton said only a construction halt in the West Bank would be acceptable. In September, after meeting Abbas and Netanyahu at the UN, Obama referred only to a “restraint” on settlements. “Netanyahu won this round,” Mkhaimar Abusada , a political scientist at Al-Azhar University in Gaza, said in an interview. “Clinton is now asking the Palestinians to go back to the negotiating table without freezing settlements. There are deep contradictions in her position.” To contact the reporters on this story: Indira Lakshmanan in Cairo at ilakshmanan@bloomberg.net ; Bill Varner at the United Nations at wvarner@bloomberg.net

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Israeli firm Dizengoff Trading to expand in South Florida (Miami Herald)

October 12, 2009

An Israeli real estate development and commodities firm has announced plans to expand in South Florida, with the goal of purchasing distressed commercial and residential properties over the next 12 months.

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BRIEF: Israeli real estate firm plans to expand in South Florida

October 12, 2009

An Israeli real estate development and commodities firm has announced plans to expand in South Florida, with the goal of purchasing distressed commercial and residential properties over the next 12 months. The Dizengoff

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Israeli real estate firm plans to expand in South Florida (Miami Herald)

October 12, 2009

An Israeli real estate development and commodities firm has announced plans to expand in South Florida, with the goal of purchasing distressed commercial and residential properties over the next 12 months.

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Obama Says Israel, Palestinians Must Act With Urgency to Get Talks Going

September 22, 2009

By Kate Andersen Brower and Jonathan Ferziger Sept. 22 (Bloomberg) — President Barack Obama said Israel and the Palestinians must act “with a sense of urgency” to restart the stalled the peace process. At the start of his first joint meeting with Palestinian Authority President Mahmoud Abbas and Israeli Prime Minister Benjamin Netanyahu , Obama said his special envoy, George Mitchell , will meet with Palestinian and Israeli negotiators next week. Secretary of State Hillary Clinton will report on the status of those efforts next month, he said in New York. “It is past time to stop talking about starting negotiations,” Obama said before talks that included the two leaders as well as senior officials from the U.S., Israel and the Palestinian Authority. Talks “must begin and begin soon.” Obama, who pledged to take a direct role in pursuing Middle East peace, is attempting to restart negotiations on the major issues that divide Israel and the Palestinians: territory, borders, the future of Jerusalem, and Palestinian refugees. He has so far hasn’t won substantial movement on either side. Obama said some progress has been made since he took office, adding, “we still have much further to go.” Settlements, Security Israelis have “facilitated greater freedom of movement for the Palestinians and discussed important steps to restrain settlement activity but they need to translate these discussions into real action,” he said. “Palestinians have strengthened their efforts on security but they need to do more to stop incitement and to move forward on negotiations,” Obama said. Netanyahu told reporters afterward that the meeting helps “break the ice.” Israeli negotiators are ready to meet with Mitchell and those talks will focus on how to restart the peace process. Palestinian Authority Prime Minister Salam Fayyad said Obama’s call for “restraint” on Israeli settlement construction, rather than a complete halt, is a “problem” that threatens to impede resumption of negotiations. “I happen to believe one reason why the political process has stumbled is because those requirements for success were ignored, including a halt to settlement activity,” he said. Low Expectations All three participants have downplayed talk of a breakthrough at today’s meeting. White House spokesman Robert Gibbs said yesterday that there are no “grand expectations.” “You need patience,” Israeli Defense Minister Ehud Barak said in response to a question as he an others entered the room at the Waldorf Astoria Hotel in Manhattan. The leaders are in New York for the opening session of the United Nations General Assembly. Obama met with each separately for about 40 minutes before the three-way discussions. Netanyahu and Abbas didn’t make any public comments. “All of us know this will not be easy, but we are here today because we know it is the right thing to do,” Obama said. “I am committed to pressing ahead.” Domestic Pressures Netanyahu and Abbas face strong domestic pressure not to make any compromises while in New York. Netanyahu’s Likud party has long supported settlement building in the West Bank while opposing territorial compromises that would allow a Palestinian state there. Abbas faces opposition to compromise from the Islamic Hamas movement, which seized full control of the Gaza Strip in June 2007. Hamas leader Ismail Haniya criticized Abbas two days ago for agreeing to meet with Netanyahu in the U.S. Mkhaimar Abusada, professor of political science at Gaza’s Al-Azhar University, said, “Abbas will be in a very bad position if he goes back to the negotiating table without even getting a temporary freeze on settlement expansion.” Netanyahu and Obama have disagreed over settlements since they met at the White House in May and Obama called for a total construction freeze. Netanyahu has said that, while he is willing to negotiate over a Palestinian state in the West Bank, settlers should still be allowed to build new homes and schools in existing settlements to accommodate population growth. New Round of Talks Obama is bringing the Israeli and Palestinian negotiators to Washington next week to meet with Mitchell. Mitchell left Jerusalem last week after failing to bridge the gaps enough to restart peace talks that were suspended nine months ago with Netanyahu’s election. “We’re now going to enter into an intensive and brief period of discussion” of talks aimed at breaking the deadlock, Mitchell said at a briefing afterward. “We’ll build on the work that was done today.” David Makovsky , a fellow at the Washington Institute of Near East Policy, said the three-way meeting is a “good first step.” “You obviously cannot have negotiations unless you can get Netanyahu and Abbas in the same room. With the ice broken, hopefully the diplomatic thaw is now possible,” said Makovsky, co-author of a book on Middle East peacemaking with Obama’s senior adviser on the region, Dennis Ross . To contact the reporters on this story: Kate Andersen Brower in New York at Kandersen7@bloomberg.net ; Jonathan Ferziger New York at jferziger@bloomberg.net

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Stanford’s Private-Equity Stakes to Be Sold Over His Objection, Judge Says

August 27, 2009

By Laurel Brubaker Calkins and Andrew M. Harris Aug. 27 (Bloomberg) — R. Allen Stanford ’s investments in an Israeli development fund and a luxury Houston hotel can be sold immediately, over objections from the financier that he hasn’t been convicted of any wrongdoing, a federal judge ruled. Court-appointed receiver Ralph Janvey won approval to sell several pieces of Stanford’s private-equity portfolio on an emergency basis to avoid meeting capital calls or diluting the investments, according to an order posted yesterday by U.S. District Judge David Godbey in Dallas. The transactions “are in the best interest of the receivership estate,” the judge wrote. Stanford is fighting criminal and civil allegations that he defrauded investors of more than $7 billion through the sale of bogus certificates of deposit at Antigua-based Stanford International Bank Ltd. He had urged Godbey to block the sales. The Texas financier, who is in jail awaiting trial, complained Janvey is selling his investments at steeply discounted prices and increasing investor losses by failing to let the stakes mature. Janvey asked Godbey’s permission to sell Stanford’s share of the Israeli fund and the Houston hotel after receiving offers from other limited partners already participating in each project. Financial Advisers Janvey, in a separate filing yesterday, asked Godbey to continue freezing millions of dollars in brokerage accounts belonging to former Stanford Group Co. financial advisers. The brokers asked Godbey last month to unlock their funds, which have been frozen since the U.S. Securities and Exchange Commission sued Stanford and several of his executives and companies on Feb. 17. The brokers told the judge they need to pay living expenses and hire lawyers to defend claims they knowingly sold fraudulent CDs. Earlier this week, Allen Stanford’s lawyers asked Godbey to reject Janvey’s request for payment of $7.6 million in additional legal fees and expenses, from estate assets. The receivership is consuming money at a rate of $6,500 an hour, lawyers for the financier said. Janvey has asked the court for about $27.5 million to cover his work as Stanford’s receiver through the end of May. The criminal case is U.S. v. Stanford, 09cr342, U.S. District Court, Southern District of Texas (Houston). The SEC case is Securities and Exchange Commission v. Stanford International Bank, 09cv298, U.S. District Court, Northern District of Texas (Dallas). To contact the reporters on this story: Laurel Brubaker Calkins in Houston at laurel@calkins.us.com ; Andrew M. Harris in Chicago at aharris16@bloomberg.net .

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Scailex to Buy Hutchison’s Partner Communications Stake for $1.4 Billion

August 12, 2009

By Tal Barak Harif and Mark Lee Aug. 12 (Bloomberg) — Scailex Corp. said it agreed to pay 5.29 billion shekels ($1.4 billion) to buy the 51 percent stake in Partner Communications Ltd. held by billionaire Li Ka- shing ’s Hutchison Telecommunications International Ltd. Scailex, the Israeli investment company owned by Ilan Ben Dov , will pay 67 shekels per share, the company said in a statement. Partner, Israel’s second-biggest provider of mobile- phone services, fell 1.5 percent to close at 67 shekels in Tel Aviv trading yesterday. The sale will allow Li, 81, to increase investments in faster-growing phone markets in Southeast Asia and exit a country where wireless subscriptions exceed the population. Hutchison Telecom shares have outperformed Hong Kong’s benchmark amid speculation shareholders will get a payout from proceeds of the possible Israel sale. “After Israel goes, their focus will shift towards Indonesia, Vietnam and Sri Lanka,” Lisa Soh , who rates Hutchison Telecom shares “underperform” at Macquarie Group Ltd. in Hong Kong, said before the announcement. “Assuming a transaction is concluded, expectations would be for the company to pay a special dividend.” Hutchison Telecom, whose shares were suspended today, fell 1.5 percent to close at HK$1.98 in Hong Kong trading yesterday, trimming the stock’s gain this year to 69 percent. The benchmark Hang Seng Index has advanced 46 percent. Partner, which offers mobile-phone services under the Orange brand in Israel, accounted for 56 percent of Hutchison Telecom’s sales of HK$23.73 billion ($3.2 billion) last year, according to the parent’s earnings announcement in March. For Related News and Information: To contact the reporters on this story: Tal Barak Harif at tbarak@bloomberg.net Mark Lee in Hong Kong at wlee37@bloomberg.net

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Money-Laundering Rabbis Case in Los Angeles Mirrors New Jersey’s Scandal

August 3, 2009

By Linda Sandler and David Voreacos Aug. 3 (Bloomberg) — Prosecutors in Los Angeles leveled charges in 2007 that sound like headlines in a fresh New Jersey corruption scandal: Rabbis in Brooklyn, New York, laundered money for an undercover informant, arranged phony charitable gifts and used secret Israeli bank accounts.

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Defense Chief Gates Visits Iraq as U.S. Changes Role to Advising, Training

July 28, 2009

By Viola Gienger July 28 (Bloomberg) — U.S.

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Israel Won’t Restrict Jews From Building in East Jerusalem, Netanyahu Says

July 19, 2009

By Gwen Ackerman and Alisa Odenheimer July 19 (Bloomberg) — Prime Minister Benjamin Netanyahu said Israel will not place restrictions on Jews seeking to buy land or live in east Jerusalem after reports that the U.S.

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