The Cost of Doing Business

On this episode of The Cost of Doing Business:The approval of a 6.3 million Shekel pay packet for Mizrahi Tefahot's CEO Eldad Fresher, raises the familiar question: Are executive salaries spiraling out of control? More crucially, can anybody stop the compensation party in Israel's capital market? How much can the regulators even do? Dr. Ido Baum, law professor at the College of Management and legal commentator for financial newspaper TheMarker, shares his insight. -Special interview with Dr. Michael Sarel, former chief economist at the Israeli Ministry of Finance. Sarel unexpectedly quit his position in the finance ministry due to Yair Lapid’s controversial plan to eliminate the value-added-tax on new apartments. Here he details how dangerous this plan is, why it will cost Israel $3billion NIS a year whilst simultaneously causing a hike in house prices and how it is the public are still unaware what's at stake. -Hebrew Book Week is upon us - the week-long festival for Hebrew literature where publishers are usually at their busiest and merriest. However this year, the industry is on the verge of near-total collapse, following the bankruptcy of Israel’s biggest book chain. With publishers down-sizing and very few new titles planned for next year, are we on the brink of a cultural crisis? Rani Graff, CEO and chief editor at Graff Publishing, explains. -Another episode of our favorite segment: Q and Amy - Israeli economics 101 for people who are just now being introduced to our loopy ways. This time, British native Amy is dizzy with delight at the comparatively cheap Israeli buses and trains. Too bad we have to go spoil it for her.. -Plus: music by Dead Kennedys, Roky Erickson, The Twilight Singers, Tom Waits, Rilo Kiley

-Uber taxi-app gets a $18.2 billion valuation and the value of Israeli competitor GetTaxi instantly rises. With GetTaxi revealing better-than-expected revenues, we ask as the Wall Street Journal’s Orr Hirschauge just how big GetTaxi can really be. -Yair Lapid finally adjusts his controversial first-time buyer housing program to include Arabs, Haredim and Jews who didn’t serve in the army. Dr. Avichai Snir of the Netanyahu Academic College and Infinity Group explains why the Haredim lost the opportunity of a lifetime -As foreign tycoons and rich Jews flock to Israel to avoid paying taxes in their home countries, we ask: Is Israel fast becoming an international tax haven? Lior Neuman, head of the tax department at the S. HorowitzLaw Firm, describes Israel's appeal for those with spare cash. -With Gay Pride Week upon us and thousands of tourists landing in Tel Aviv we ask: How big is Israel’s “pink economy”? With us is Guy Tatsa, one of the organizers of the LGBT Tel Aviv Expo -Our start of the week is, in fact, not really a start up: One Hour Translation is a fast-growing translation service that’s been around since 2008, serves Fortune 500 companies and hires 15 thousands translator in over 73 languages. So why did it only complete its Series A funding earlier this year? CEO and co-founder Ofer Shoshan talks to us about the benefits of bootstrapping -Plus: music by Tindersticks, Warren Zevon, Mr. Bungle, 16 Horsepower and Nick Cave and the Bad Seeds

On this episode of The Cost of Doing Business: Strong shekel=apocalypse? Israel’s exporters attack the Bank of Israel and the government for failing to curb the rise of the shekel, despite having already purchased billions of dollars. Zvika Oren, President of Israel’s Manufacturers Association, explains why the falling dollar may herald the destruction of Israel’s economy. Yair Lapid’s housing plan disintegrates: the finance minister’s plan to eliminate the value added tax on new apartments encounters more resistance as Israelis understand just how discriminatory it really is. What will happen if and when Lapid’s plan is dead and buried? Dr. Efrat Tolkowsky, CEO of the Gazit-Globe Real Estate Institute and a lecturer at IDC Herzliya, explains. Africa Innovation is a charity bringing Israeli water and agri-tech innovation to impoverished African countries. What does this mean? Sivan Ya’ari, founder and president of Africa Innovation, tells us all about it Startup of the Week: CrowdAdviser is a new Israeli platform for crowd-sourcing business advice. Why do you need to crowdsource advice about how to run your business? Guy Simon, CEO and founder of CrowdAdviser, has the answers. Music: Bad Brains - I And I Survive System Ali - Bonim Et Habayit Mehadash The Jeffrey Lee Pierce Sessions Project - A Shame And Pain J Mascis - I Feel Like Going Home

On this episode of The Cost of Doing Business: The battle over Israel’s defense budget heats up again: Just five months after the approval of Israel’s annual budget, the IDF demands yet more funding, threatening to shut down the military. Maharan Frozenfar, former head of budget directorate at the Ministry of Defense, details the latest round of this ongoing dispute. As the recommendations of the Sheshinski II committee -; a committee designed to examine royalties paid for commercial uses of Israel’s non-gas natural resources -; grow near, it seems Israel Chemicals (ICL) may be worst hit. Gilad Alper, Senior Analyst at Excellence, shares his insight. The dawn of the post-Dankner era: For the first time in five years, IDB Development goes public and begins trading on the Tel Aviv Stock Exchange. Assa Sasson, Financial and Insurance Reporter for TheMarker, tells us about the less-than-glamorous era of Moti Ben Moshe and Eduardo Elsztain. Startups on Israel’s periphery: We continue our exploration of innovations outside Tel Aviv. This time, we talk to Haim Tzuker, co-founder of social media advertising startup eDealya MUSIC 1. Lucy's Pussy - The feudal spirit 2. The Dresden Dolls - Coin Operated Boy 3. Nick Cave - Mack The Knife 4. Swans - Oxygen 5. Bob Dylan - Dear landlord

 On this episode of The Cost of Doing Business: -Yad2, Israel’s biggest classified ads website, is sold to German publisher Axel Springer for 800 million NIS ($230 million) - the highest price EVER paid for an Israeli internet company with no international revenues. Is this a sign of a growing internet bubble? David Rosenberg, Economics Editor for Haaretz in English, says neigh -TheMarker’s annual “100 best employers” survey the best place to work in Israel. If you assumed “a tech company” then you're wrong. Turns out Israelis prefer to work for the big monopolies, including government-owned companies. Why is this? Hagai Amit, Senior Correspondent for financial newspaper TheMarker, explains -A twist of fate: The partners at the Tamar natural gas field will sell $20 billion of natural gas to Europe, via Egypt. Not too long ago it was Israel who imported gas from Egypt. Dr. Amit Mor, CEO and co-owner of Eco Energy Consulting Strategic Investments, explains the irony. -The next big Israeli exit? Israeli startup Wilocity is in negotiations to sell for $300-$500 million, possibly to Qualcomm. Assaf Gilad, High-Tech correspondent for Calcalist, has the details. -Start up of the week: Tal Agassi, former vice president of Better Place reinvents himself with a new social network for shopping called GotIt. Agassi tells us about the lessons learnt from Better Place, and what sets his company apart from other social shopping apps -Plus: music by Mastodon, Grinderman, Einstürzende Neubauten, Warren Zevon, Flogging Molly and Mujahideen

On this episode of The Cost of Doing Business: -Israelis rejoice: The government approves the closure of Israel’s public broadcasting authority (IBA). Is this the end of public broadcasting in Israel? Li-Or Averbach, Media Correspondent for financial newspaper Globes, explains what this decision means -Teva’s first-quarter earnings beat analyst estimations. Now under Erez Vigodman’s leadership, the company seems much more optimistic about its future. Gilad Alper, Senior Analyst at Excellence, tells us why Teva’s optimism is misplaced -No less than 14 Israeli startups make it to Gartner’s Cool Vendors list this year - who are they and why were they selected? Shlomit Hart, CEO of Gartner Israel, is joins the show. -Israel billionaire Stef Wertheimer sells his remaining shares in Blades Technology, two years after selling his remaining shares in Iscar. Why are the Wertheimers divesting? Gil Kalian, Capital Market reporter for Calcalist, explains -We continue with our coverage of “Israeli startups outside of the Tel Aviv hub: This time, we talk to Amir Peleg, founder and CEO of water-treatment company Takadu -Plus: music by Neutral Milk Hotel, Sweet Apple, Rowland S. Howard, Soulsavers and more Playlist: Neutral Milk Hotel - Holland, 1945Sweet Apple - Boys in Her FanclubRowland S. Howard - Pop crimesSoulsavers - No ExpectationsAlice Cooper - I’m EighteenThe Girl with a Pre-Fabricated Heart

On this episode of The Cost of Doing Business: Intel decides to upgrade its existing facility in Kiryat Gat instead of building a new factory. Estimates regarding Intel’s projected investment in the project range between $5-6 billion, a hefty sum that could create a 1,000 jobs. Guy Grimland, Intel Israel’s spokesperson, and Assaf Gilad, high tech reporter for financial newspaper Calcalist, walk us through what we know and don’t know We always know raising a child in Israel is tough - now we know just how tough. A new report reveals that the support Israel provides for young parents is the lowest in the OECD. Professor Michel Stravchinsky, Economics and Public Policy Professor at Hebrew University and one of the authors of the new paper, talks to us about his findings. May Day 2014: Member of Knesset Dov Khenin tells us about his initiative to raise the minimum wage by nearly 30%. Will a minimum wage increase hurt economic growth, or benefit it? All hell breaks loose in the Israeli Postal Service: the workers are striking, the government wants to privatize and no one is getting their mail. Professor Itzhak Galnoor of the Hebrew University in Jerusalem and head of the project on privatization in the Van Leer Institute, tells us what should be done with the Israeli Postal Service. An important move to empower bond holders in cases of corporate defaults is underway: TheMarker’s Assa Sasson briefs us on this week in the Israeli capital market. Start up of the week: HopOn is an Israeli payment app that enables you to pay for public transportation through credit card. On your phone! Co-founder David Mezuman tells us about the app that is currently making waves throughout Europe Music: 1.The Jeffrey Lee Pierce Sessions Project - Constant Limbo 2.Billy Bragg - There will be a Reckoning 3.Leonard Cohen - The Future 4.The Bonzo Dog Doo-Dah Band - Look Out There's A Monster @liorpeleg

On this episode of The Cost of Doing Business: -On the eve of Holocaust Remembrance Day, the government approves a 1 billion NIS' worth of financial aid for holocaust survivors, 50.000 of whom currently live under the poverty line. Rony Kalinsky, CEO of the Foundation for the Benefit of Holocaust Victims in Israel, tells us how this might change their lives -Potential new gas and oil discovery off the coast of Israel: Lior Gutman, Energy and Infrastructure Reporter for financial newspaper Calcalist, explains who is behind the Oz drilling and how significant this potential discovery might be -Is the restaurant business in Israel in crisis? A series of high-profile closings of luxury restaurants prove, once again, that the Israeli restaurant business is the most dangerous of all. Shai Bermann, general manager of the Israeli Restaurants and Bars Association, explains why an Israeli restaurant typically survives no more than 18 months. -New segment: Start ups from Israel's periphery: If you thought the moniker “StartUp Nation” only applies to Tel Aviv - think again. Every Monday we will highlight an emerging start up from outside of Tel Aviv. This time we talk to the founders of foodie startup HommyFood, based in Ashdod. Music: Dinosaur Jr. - Just Like Heaven The Afghan Whigs - It Kills OFF! - Death Trip On The Party Train Pixies - Wave of Mutilation Desert Sessions - Crawl Home

On this episode of the Cost of Doing Business: -In February, the residential real estate market froze; partly because the Hever Consumers Club for IDF veterans and career officers stopped buying. How can one consumers’ club be that significant? Dr. Avichai Snir of Bar Ilan University and Netanya Academic College explains how a small pressure gained such influence -Israel’s largest book chain, Steimatzky, is saved from bankruptcy and sold to Arledan investments, which just so happens to also own one of Israel’s biggest publishing houses. Rani Graff, CEO of mid-size publishing house Graff Publishing, explains why the sale of Steimatzky has rescued the entire Israeli book industry. -For the first time, Israeli exports to the Far East exceed those to the US. Now that Asia has become Israel’s second-largest export market, what does it mean for the rest of the economy? Amir Gal Or, founder and managing partner at Infinity Group, a Chinese-Israeli private equity fund, shares his insight. -Start up of the week: Tired of having to wait hours until your phone is charged? Israeli startup StoreDot is developing a bio-organic battery that can charge your phone within 30 seconds. CEO Doron Myersdorf explains how it works and why he's never been so grateful for amino acids. Music: AC/DC - Back in Black The Black Angels - Empire Singers - Masters Of War Pogues - Thousands are Sailing Radiohead - Pyramid Song Laibach - The Whistleblowers Radiohead - Pyramid Song

Israeli start-up PointGrab develops CamME, a ‘selfie’ app that helps you get EVERYONE into your group shots and solves all your selfie-related problems. Avital Rabani, director of marketing at PointGrab, explains how gesture-based apps will change electronic appliances. MobileOCT has developed a way to detect cervical cancer using the humble smartphone. How does it work and can this technology be applied to other cancers? MobileOCT Ariel Be’ery has the answers Startappist is not your typical start up, but more of a “cooperative with a business model” that attempts to fight ageism in the Israeli high-tech sector by strictly hiring workers aged 45 and above to develop mobile apps. Co-Founder and CEO Yehuda Ben Yaakov tells us how it works. At the end of March, an Israeli e-commerce company Borderfree went public and enjoyed a successful IPO on NASDAQ. What does Borderfree do and why doesn’t it want to sell? Nir Zalik, capital market reporter for financial newspaper Calcalist, explains. Replay Technologies are spearheading the FreeD revolution. You’ve never seen sports the same way before. Matteo Shapira, CTO of Replay Technologies, explains how it works and when’s it coming to our TV sets. Songs:  Amanda Palmer – Leeds United The Slits – I Heard It Through The Grapevine Isobel Campbell & Mark Lanegan – Ramblin’ Man 16 Horsepower – Black Soul Choir Sparklehorse – Sick of Goodbyes

On this episode of The Cost of Doing Business: · The Communications Ministry yesterday released a report on the state of the services we receive in from telecommunications providers. Two upstart competitors in the cellular field got very poor marks. Amitai Ziv of TheMarker answers the question "Does cheaper service mean worse service?" · The state comptroller slammed the government for a haphazard welfare policy that relies too heavily on charities and non-profits to feed Israel's poor. Even budgets earmarked to address "food insecurity" are slated to go through these charities, but so far haven't come. Liron Yochai of central Israeli humanitarian aid NGO Latet has the broader picture. · A racy ad for underwear was banned from prime time television recently. The Second Authority, a broadcasting regulator, deemed the advert starring Bar Rafaeli and a Muppet, "too sexual". Ayelet Metzger, deputy CEO of the authority, explains who protects our children from inappropriate advertising content. · The tone of your voice is critical to ensuring your audience knows what you really mean. New social network HearMeOut offers a sonic way to interact with friends and followers so sarcasm will never be lost again. songsElvis Costello - Jack of All ParadesSuzanne Vega - LukaDire Straits - Money for Nothing Frankie Goes to Hollywood - RelaxTalking Heads - Take me to the River

On this episode of The Cost of Doing Business: · The militant Ashdod port union called a wildcat strike yesterday when they found out the state planned to hire longshoremen without saving the jobs for family members. David Rosenberg, Economics Editor for Haaretz in English, has the details. · Israel hired experts from the Netherlands and the US to estimate the size of the Leviathan natural gas field. Their numbers come up about 10 percent lower than the drilling corporations have estimated. David Rosenberg explains what this might mean for our electric bill. · The Health Ministry has suggested banning phosphate mining outside the southern town of Arad. Israel Chemicals says this will result in the closure of its fertilizer subsidiary Rotem Ampfert. Mickey Peled of financial daily Calcalist explains the health implications of phosphate mining in close proximity to residential areas. · Yesterday, the cabinet cut the red tape for Israel's factories. A streamlined permit process offers industry a one-stop-shop for all its environmental licensing needs. But how green is this "green legislation"? Dr. Orr Karassin of the Open University lays it out for us in plain terms. · Until recently, the People of the Book could only buy their books from two retailers, who dominated the market and slashed book prices to the detriment of smaller bookshops as well as authors. Price protection legislation aims to boost royalties and open the market to new players. Office Depot is the first to jump in, and CEO Matanya Schwartz explains how he plans to do it.

On this episode of The Cost of Doing Business:Once again, The Ministry of Defense demands a budget increase, bringing the annual War on the Defense Budget to an early start. Why can’t Israel ever cut the defense budget? Meirav Arlosoroff, Senior Columnist for financial newspaper TheMarker, talks to us -The housing market in Israel is essentially frozen while everyone waits for Yair Lapid's VAT-free-new-apartments bill to be passed. What’s going to happen when it does, or if it doesn’t? Efrat Tolkowsky, CEO of the Gazit Globe Real Estate Institute and a lecturer at IDC Herzliya talks us through it. -Stoned-up nation: can Israel become one of the biggest exporters of medical Marijuana, if not the biggest in the world? Farmers in this burgeoning medical cannabis industry seem to think so. Shmulik Scharf, Business Development Manager at Bazelet - a leading medical marijuana supplier - explains how innovative Israel even when it comes to pot -The executive compensation party in Israel’s capital market continues, uninterrupted, with the top 150 senior managers collecting a billion shekels in wages and bonuses in 2013 - a 12% rise from 2012. Nir Zalik, Capital Market Reporter for financial newspaper Calcalist, details exactly how disconnected performance and bonuses are. -Start up of the week: Kiddyup is an online, crowd-sourced, location-based marketplace for parents that strives to be Waze for Parenting. CEO Zoe Bermant talks to us -Plus: music by Wovenhand, Stiff Little Fingers, Porno for Pyros, Peeping Tom and Tom waits & Keith Richards (Son of Rogues Gallery) MUSIC1. Wovenhand - Hiss2. Stiff Little Fingers - Doesn't Make It All Right3. Porno for Pyros - Pets4.Peeping Tom - Mojo5.Son Of Rogues Gallery - "Shenandoah"

Finance Minister Yair Lapid broadens the scope of his plan to eliminate the value added tax for new apartments, and still gets attacked for the plan's flawed economic reasoning. Erez Cohen, former head of Israel's Real Estate Appraisers Association, is the sole voice claiming the plan might actually reduce housing prices - though even he's cynical Israel Corp, one of Israel's biggest holding companies, reports a fourth quarter loss of $406 million. What went wrong? And how had they tried to avoid this? Gilad Alper, Senior Analyst at Excellence, explains After cyber: Is Israel fast becoming a global powerhouse in the field of computer vision? Professor David Mendelovich, co-founder and CEO of Corephotonics, explains why Israel is best suited for this field New report by the Bank of Israel reiterated the fact that Israeli productivity is well below the OECD average. Why is it not improving, despite the government's best efforts? Professor Eyal Kimchi of the Hebrew University, shares his insight Start up of the week: Eccopia builds robots that clean solar panels. Why is this such a break-through? Eran Meller, Eccopia's CEO, sheds some light Music: Ronnie Hawkins-Who Do You Love Swans - A Little God In My Hands GWAR - Sick Of You Muddy Waters - Champagne & Reefer Nick Cave & The Bad Seeds - More News From Nowhere

On this episode of The Cost of Doing Business: The IDF reveals its record pension holders for the first time. How much does it cost Israeli tax payers to support the bloated pensions of career officers, and why do career soldiers in Israel retire in their early 40s? Chaim Levinson, Haaretz’s West Bank settlement reporter, explains The government belatedly reveals its work plans for 2014: what economic measures do they include? And what priorities do they reflect? David Rosenberg, economics editor for Haaretz in English, answers Israel’s 10 biggest exporters accounted for over half of total Israeli exports in 2013. Is Israel becoming too dependent on its biggest export companies, while small and medium exporters suffer decline? Shauli Katznelson, deputy director general for economics and professional services in Israel’s Export & International Cooperation Institute, speaks for export sector’s 99% Former Prime Minister Ehud Olmert, former IDF Chief Dan Halutz and former Mossad head Meir Dagan start a new, mysterious company together. Shuki Sade, senior reporter for financial newspaper TheMarker, explains why it makes total sense Israeli e-commerce company Borderfree goes public and enjoys a successful IPO on NASDAQ. What does Borderfree do and why doesn’t it want to sell? Nir Zalik, capital market reporter for financial newspaper Calcalist, explains Playlist: The Amazing Snakeheads - Here It Comes Again General Patton vs X-ecutioners - Get up punk Dinosaur Jr. - Forget the Swan Greg Dulli - Paper Thin Hotel 16 Horsepower - Black Soul Choir