The Cost of Doing Business

On this episode of The Cost of Doing Business: Special episode - Crisis Mode -Finance Minister Yair Lapid unveils a plan to eliminate the value added tax for first time home buyers as a way to reduce housing prices and manages to enrage pretty much everyone. What with the Treasury’s chief economist, Michael Sarel, resigning in protest and Lapid’s party member blatantly attacking the Bank of Israel for daring to criticize the plan, we hear what the experts have to say: Dr. Avichai Snir of Bar Ilan University and Netanya Academic College explains why it seems that Lapid is attempting to defy the most basic laws of economics, and says that if the plan was to go through the result would be financial crisis Rafi Gozlan, chief economist at IBI Investment House, advises Yair Lapid: drop the silly plan, keep the attitude -The executive compensation party in Israeli continues, uninterruptedly: TheMarker’s Assa Sasson tells us about it -Start up of the week: 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 hiring only workers over 45 to develop mobile apps. Co-Founder and CEO Yehuda Ben Yaakov tells us how it works

Reform plans for the Israeli Electric Company were due to be announced tomorrow but the press conference was cancelled unexpectedly. Is it possible to reform the IEC and why have all previous attempts failed? David Rosenberg, Editor of Haaretz in English, explains Are Israeli government bonds no longer the safe, solid investment they used to be? Zvi Stepak, Chairman & Founder of Meitav Dash Investment House has some news to break Hot news from Start Up Nation: Fresh off its very successful IPO, billion-dollar company Wix buys fellow Israeli start up Appixia. Facebook opens an Israeli marketing office. Assaf Gilad, High Tech reporter for financial newspaper Calcalist, has the latest -Billionaire and shopping mall mogul David Azrieli donates 800 million shekels to charity, possibly the largest donation of its kind in Israeli history. The question arises: Why do Israel’s rich donate less to philanthropic causes than their foreign counterparts? Shuki Ehrlich, Chairman of Committed to Give, an NGO dedicated to promote philanthropy in Israel, explains Music1. Queens of the Stone Age - Keep Your Eyes Peeled2. Patrick Fitzgerald - All the years of trying3. Future Islands - Seasons4. נושאי המגבעת - מתנה לחג5. Johnny Cash - She used to love me a lot

On this episode of the Cost of Doing Business: -Israel quarrels with the partners at the Leviathan gas deposit - drama, threats and emergency visits by the CEO of Woodside Petroleum ensue. What happened and does it endanger the development of the site? Lior Gutman, Infrastructure and Energy reporter for financial newspaper Calcalist, breaks it down -So is Golan Telecom, the fresh-faced and cheap-as-hell mobile operator that revolutionized the Israeli mobile industry, being sold off? Michael Golan, the founder and controlling shareholder of Golan Telecom, comes on the line to emphatically deny any such reports. -New VC fund aims to make a killing by investing in IsraeliTV formats and exporting them. Do we even have enough successful formats to support such a model? Amir Bramley, Deputy Head of Rubikon Group and co-founder of the new fund, explains -From carp to sardine: TheMarker’s Assa Sasson tells us about Nochi Dankner’s bad week -Start up of the Week: 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 Plus: music by Ringo Deathstarr, Current 93 (ft. Antony Hegarty), TV on the Radio, Frank Black and Sparklehorse

Apartment renters in Israeli finally have someone championing their cause. Member of Knesset Hilik Bar (Labor), himself a renter, talks to us about the launch of a caucus on protecting tenants' rights, with the admission that even an MK cannot afford to exit the rental market. Playlist: Talking Heads - Don't Worry About The Government Bruce Springsteen and Tom Morello - The Ghost Of Tom Joad Mark Lanegan & Duke Garwood -Cold Molly Faith No More - Just a man Jeannie C. Riley - Harper Valley PTA

On this episode of The Cost of Doing Business:The Ministry of Finance considers raising the retirement age to 70 (for men) and 64 (for women). But should the retirement age be canceled altogether? Attorney Shoshana Gavish thinks so;In addition, the Finance Ministry is reportedly considering awarding NIS 100,000-120,000 subsidies to first-time home buyers. Is this for real? Dr. Efrat Tolkowsky, CEO of the Gazit Globe Real Estate Institute and a lecturer at IDC Herzliya, tells us not to hold our breath;Yet ANOTHER plan from the Ministry of Finance: This time to partially privatize 19 government-owned companies including the Post Office and Israel Railways. Will privatization work for Israel this time? Professor Zvi Eckstein, Dean of the School of Economics at IDC Herzliya and former deputy governor at the Bank of Israel, explains what's different this time round;Cyber security firm Varonis joins the club of “Israeli companies with a $1 billion valuation”. But why is this success not totally Israeli? Orr Hirschauge, Editor of TheMarker’s Technation, explains;Israel has been removed from the US blacklist of countries failing to protect intellectual property rights. What are the economic implications of this decision? Dr. Yoav Oestreicher, Head of Intellectual Property at Meitar International Law Office, breaks this down.   Playlist: The Stooges - Down On The Street Frank Zappa- Jewish Princess Public Enemy - Fight the Power Psychic TV - New York Story Twilight Singers -That's Just How That Bird Sings

On this episode of The Cost of Doing Business: Bank of Israel unexpectedly cuts the interest rate to 0.75%. Is the BOI's interest rate policy actually fueling the housing bubble, and what are the chances of further rate cuts in the future? Leader Capital Markets Analyst Yonatan Katz has the answers. The Red are coming: Chinese investors rush to Israel to invest in Israeli tech. What kinds of technologies and why? Lior Aviram, Head of High-Tech Practice at Shibolet Advoate & Notaries, share his insight. As the valuations of start-up companies in Israeli continues to rise, some already warn of an early-stage "tech bubble". Is Israel on the cusp of another bubble, or just enjoying ‘unprecedented optimism"? Lior Aviram explains. First there was touch-screen, then there was hands-free screen control. Sesame Enable is an app primarily designed to help physically disabled persons use their phones hands-free, with the help of face-tracking technology. Co-founder Oded Ben-Dov explains just how it works. Plus: music by Bauhaus, the Pogues, Mr. Bungle, Afghan Whigs and the Cramp. Playlist: Bauhaus - "She's In Parties" MR. BUNGLE - None of them knew they were robots Afghan Whigs - Algiers The Pogues - Boys from the County Hell The Cramps - Bikini Girls With Machine Guns  

On this episode of The Cost of Doing Business: -Chinese democracy: Why is the pending sale of Tnuva to China's Bright Food being met with so much resistance among consumers and suppliers alike? David Rosenberg, Economics Editor for Haaretz in English, explains -Q.Who are the biggest investors in Israel’s real estate market today? A. Workers in the public sector and bankers. Is the Israeli real estate bubble fueled by public sector money? Nimrod Busso, Real Estate reporter for financial newspaper TheMarker, breaks this down. -Is it even worthwhile to buy an apartment in Israel as an investment? New report says: Not for long. Ohad Danouss, Chairman of the Israeli Real Estate Appraisers’ Association, disagrees. -Israel's anti-poverty committee intends to recommend raising the minimum wage and as well as entitlements. But is this not another missed opportunity to truly tackle poverty? Mickey Peled, Labor and Welfare reporter for financial daily Calcalist,sheds some light. Playlist: Bob Dylan - Gotta Serve Somebody 16 Horsepower - Brimstone Rock Soulsavers - Kingdom of Rain Roky Erikson - Stand for the Fire Demon Tom Waits - Going out West

New chairman of IDB, Aharon Fogel, calls upon government to cancel anti-concentration bill and causes a furor. Did nothing change since the days of Nochi Dankner? Is there a chance of this happening?

On this episode of the Cost of Doing Business: -Viber goes Japanese: the Israeli instant messaging app sells to Japanese retailer Rakuten for $900 million. Why will Israel not make any tax off of this and why does this not actually matter? Orr Hirschauge, high-tech reporter and editor of TheMarker's TechNation, explains -Another day, another exit: Google acquires Israeli start-up SlickLogin, despite having no revenues, no users, no offices and a hypothetical product. What is this product? Assaf Gilad, high-tech reporter at Calcalist, has the answers. -Teva becomes the biggest holding of billionaire George Soros' fund - Why is that? Does he know something we don't? Perhaps Teva's future is not so grim afterall... Gilad Alper, Senior Analyst at Excellence, knows what's what. -In other news: Israel Chemicals opens a potash mine in Ethiopia following a lousy 2013. Is it expanding overseas in reaction to Israeli tax policies? Gilad Alper says: Yes -Israeli growth is slumping: GDP grew only 2.8% in the second half of 2013 - the lowest growth rate in four years. What does it mean and can the government do anything to stop the economic slowdown? Yossi Freiman, CEO of Prico Risk Management and Investments, shares his insight. -Israel's Electric Company (IEC) may forgive the Palestinian Authority's debt, totaling 1.3 billion NIS. Given its financial state, can the IEC afford for this move? And what if the Palestinian can't pay its debt? Lior Gutman, Energy and Infrastructure reporter at Calcalist, explains The Animals - We’ve got to get out of this place of Montreal - Fugitive Air Therapy? - Screamager Sun Kil Moon - I Can't Live Without My Mother's Love Rollins Band - Low Self Opinion

On this episode of The Cost of Doing Business: -The crisis in Hadassah Medical Center worsens. Who, or what is to blame and what does the crisis tell us about the health system in Israel? Do doctors’ have too much control of the system? That, at least, is what was said by Meirav Arlosoroff, Senior Columnist for financial newspaper TheMarker -In Israel a self-employed person can expect to be paid with something like 4 months' delay. Why is the payment ethic in Israel so dire and why do freelancers and small business owners suffer the worst of it? Motti Shapira, CEO of Lahav, an organization representing small businesses and the self-employed, explains -Israeli company Mobileye is reportedly developing a driverless car for Tesla Motors. When can we drive it? Daniel Schmil, Transportation Reporter for TheMarker, says "not anytime soon". -So is Israeli chat-app Viber selling for $400 million or not? The CEO denies it, but Calcalist’s Assaf Gilad says “yes” -TheMarker’s Assa Sasson gives us the lowdown on the new attack of killer wolves searching for prey in Israel’s capital market, spreading questionable promises of huge yields -Start-up of the week: 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 -Music from New Order, Noir Desir, Twilight Singers, The Slits and Butthole Surfers

Private Practice: Hadassah Medical Center in Jerusalem is collapsing under debts. What does the tragedy of Haddasah teach us about Israel’s health system, and who’s to blame for this predicament? Professor Yoel Donchin, ex-senior physician at Haddasah, says its neither the doctors nor their salaries. Imminent drop in housing prices? Housing Minister Uri Ariel promises a 10%-30% drop in house prices in 2015. Is this even possible and is it not dangerous? Dr. Efrat Tolkovsky, CEO of the Gazit-Globe Real Estate Institute and lecturer at IDC Herzliya, has the answers. The next big tax battle: Woodside Petroleum buys 25% of the Leviathan gas deposit for 2.7 billion NIS and the Israeli Tax Authority is demanding $720 million in taxes over the deal. Who’s gonna win? Lior Gutman, Energy and Infrastructure reporter for financial newspaper Calcalist, tells us what’s what. Why do small Israeli businesses ignore the web? Why are they unable to embrace this priceless resource? Orr Hirschauge, Editor of financial newspaper TheMarker’s TechNation, explains how Israel can be the most connected country in the world - yet still have pockets of wilderness. Will Tnuva, Israel’s biggest food company, be sold to China? It sure looks that way. Golan Hazani, senior reporter for Calcalist, discusses the implications. Playlist: Warren Zevon - Poor Poor Pitiful Me Skinny Puppy - Addiction NOFX - Leave It Alone Swans - Love will save you Meat Puppets - We Don’t Exist

On this episode of the cost of doing business:Buying dollars, buying time: The dollar strengthens against the shekel after Bank of Israel buys more dollars. Did Governor Karnit Flug’s strategy prove itself, or is the BOI just buying time before the shekel resumes falling? Yossi Freiman, CEO of Prico Risk Management and Investments, explainsMore attractive than ever: Private equity deals in Israel fell hard in 2013 and declined 39%. Is this a sign of decreasing interest in Israel? Quite the contrary, says Rick Man, Senior Partner at GKH, sponsors of the IVC Private Equity survey.NICE Systems CEO Ze’evi Bregman resigns, following good but not spectacular results in 2013. Was NICE under Bregman too conservative on the M&A front, and will new CEO Barak Eilam take greater risks? Nir Zalik, Capital Market reporter for Calcalist, gives his forecast.Magic shoe: Want to prevent grandpa from falling? Enter Israeli start-up B-Shoe Technologies, that developed a shoe with motion sensors designed to help elderly people regain their balance. CEO Abraham Shtamper tells us how it worksTired of nasty neighbors on planes and trains? Israeli start-up SeatID uses social networking to make sure you are always surrounded by friends of friends (of friends). CEO Eran Savir tells us why and how this matters

On this episode of the cost of doing business:The Leviathan partners are close to inking a deal that would see Australian company Woodside Petroleum buy 30% of the natural gas development. How close to completion is the deal and is it good for Israel? Lior Gutman, Infrastructure and Energy reporter for financial newspaper Calcalist, answers in the affirmativeAfter two years of under performing, it seems TEVA is now fair game. Is Israel’s biggest company now a target for takeovers? Gilad Alper, Senior Analyst at Excellence Nessuah Brokerage, shares his insightHow high is Israel's ACTUAL employment rate? The official figure is 6.6%, but does this impression of full employment truly represent the state of Israel’s labor market? Mickey Peled, Labor and Welfare reporter for Calcalist, explains how misleading the figures are..You have to hear it to believe it: Betsy Benjaminson,a single mother of four from the southern Israeli town of Sderot, is the translator turned whlstleblower in Toyota’s sudden acceleration scandal. Now, after three years of living underground, she reveals her identity for the first time. She joins TLV1 to share her story..Finance Minister Yair Lapid announces 230 million NIS plan to eradicate food insecurity in Israel. Is that enough to take care of the 900 thousand people suffering from food insecurity in Israel? Dr. Yitzhak Saporta of Tel Aviv University adds some crucial data to the equationPlus: music by the Reverend Horton Heat, Pantera, Body Count, Dresden Dolls and Sonic Youth  Playlist:  Reverend Horton Heat - Let Me Teach You How To Eat Pantera - Cowboys From Hell Body Count - The Winner Loses The Dresden Dolls - Backstabber Sonic Youth - Kool Thing Photo By Brady Holt , via Wikimedia Commons

On this episode of The Cost of Doing business: - Bank of Israel rushes to buy 500 million dollars in two days, in an attempt to curb the Shekel's rise. How well is Karnit Flug handling her first real test as BOI governor? Should she set a floor-rate for the dollar? David Rosenberg, Economics Editor for Haaretz in English, explains - Without peace with the Palestinians, says Finance Minister Yair Lapid, Israel’s economy will only suffer. Edan Raviv, Director of Economy & Environment at the Peres Center for Peace, explains why a European boycott of Israel may be a very real threat - An insider trading scandal shocks the Israeli capital market, following the arrest of three of Israel’s biggest money managers. Is insider trading and stock running common in the Israeli capital market, and are regulators finally doing something about it? Assa Sasson, Financial and Insurance reporter for TheMarker, dishes the dirt - New report by Adva Center finds large wage gaps between Ashkenzaim and Mizrahim and reveals that ethnic gaps and discrimination are still a large part of the Israeli labor market. Yaron Dishon, Director of the Popular Education program at Adva, supplies the detail - Start up of the week: Yadwire offers Israelis free Wi-Fi, through a model that relies on advertising. Stephane Hercot, Yadwire CTO, and David Adelsberg, the company’s Pre-Sales Manager, explain how you can bring free Wi-Fi to the public and still remain non-intrusive - Plus: music by Pete Seeger, Axum, Rowland S. Howard, Tom Waits and Dave Van Ronk