The Cost of Doing Business

Today on The Cost of Doing Business:Cyber madness: Amazon, Microsoft, IBM, Cisco and a slew of other multinationals invest in cyber security in Israel, making Be’er Sheba the cyber mecca of the Western world. TheMarker’s Orr Hirschauge gives us the detailsWhy is Israel’s labor productivity among the lowest in the OECD? Is it all the public sector’s fault? Professor Eyal Kimchi of the Hebrew University in Jerusalem & Deputy Director of TAUB Centre for Social Policy Studies in Israel, breaks it down for usNearly four years after its discovery, the enormous Leviathan natural gas deposit has finally been recognized as a “a discovery” by the government. Why the delay? Dr. Amit Mor of Eco Energy Consulting Strategic Investments, explainsThe Tel Aviv Stock Exchange goes down and analysts are quick to declare “market correction”. Is there a downward trend in Tel Aviv, or just January gloom? Ella Alkalay, Vice President and Business Development Director at IBI Investment house, calms us and alarms us at the same timeWhy is Kibbutz Maagan Michael, one of the few remaining traditional, collective kibbutzim, a shining example of both socialism and capitalism? Professor Michal Palgi, Director of the Institute for Research of the Kibbutz and the Cooperative Idea at the University of Haifa, explains.  Playlist:Public Image ltd - Warrior David Lynch & Lykke Li - I'm Waiting Here Spiritualized - Little Girl The Jesus And Mary Chain - Just Like Honey Backup song: Peter Murphy - Strange kind of love 

Today on The Cost of Doing Business:A new report says average house prices in Israel are actually 15% (!) higher than previously thought. Dr. Avichai Snir of the Netanya Academic College & Senior Economist at Infinity, explains (and calms us down).2013 was a great year for Israeli start ups, and so far 2014 looks even better. Orr Hirschauge, editor of TheMarker’s Technation, tells us why 2013 was a record year for Israeli fundraising and what this means for current entrepreneurial ambitions.By now everyone knows there is an acute housing crisis in Israel, but the part that’s usually unspoken is the acute housing crisis in the Haredi sector. Professor Avi Degani, President of the Geocartography Knowledge Group, explains how serious the problem is and how unprepared we are for the future.TheMarker’s Assa Sasson, our favorite financial commentator, talks to us about Zim’s massive haircut as well as Nochi Dankner’s hair-raising tale of corporate espionage and intrigue.Start up of the week: Imagine you could carry your own OS, all your files, your own desktop and programs - all your digital possessions, your virtual self - with you anywhere you go, in the form of an itty bitty USB flash drive. Enter Keepod, an Israeli start up that aims to help you reclaim your digital identity and information. Playlist: SADYLE / TEL AVIV HARDCORE - מהפכה ft Quami DeLaFox & Avital Tamir (BETZEFER) Suicide - Dream Baby Dream Judas Priest - Breaking the Law Neutral Milk Hotel - In the Aeroplane Over the Sea Minutemen - Themselves Minutemen - God Bows to Math

Today on The Cost of Doing Business:What’s good for the Bibi…. while Benjamin Netanyahu shakes off allegations of misconduct involving an off-shore bank account in Jersey back in 2003, many Israelis follow in his footsteps. But just how many? And has increased international scrutiny on tax havens made it difficult for Israelis to stash their cash abroad? Dr. Avi Nov, a tax lawyer specializing in Israeli and international tax law, answers our questions.As the entire world discusses the scandal surrounding celebrity rabbi Yoshiyahu Pinto – currently under investigation for allegedly bribing senior police officers and foiling an FBI investigation – we take a step back to ask: Who is Yoshiyahu Pinto and how did he manage to charm large swaths of Israel’s business elite? Shuki Sade, Senior Correspondent for financial newspaper TheMarker, the incredible story of Pinto’s ascent.One of the biggest anti-trust cases in Israel’s recent history? Why did British confectionery giant Cadbury fail to leave its mark on the Israeli market? Hint: nothing to do with their taste. David Rosenberg, Economics Editor for Haaretz in English spills the (cocoa) beans.A new bill aims to ban banks from charging commission for basic services such as using an ATM or making deposits, as they currently do. Member of Knesset Gila Gamliel (Likud), the main legislator behind the bill, explains why Israel’s banks need to pull their socks up.Israelis are flocking en masse to the US real estate market. Why so? Amir Peleg, partner at real estate investment firm Safe Future, explains the benefits and the dangers of investing in US real estate. Playlist:The Waterboys: Fisherman’s BluesRobert Plant – Satan Your Kingdom Must Come Down Ozzy Osbourne – I just want you Psychic TV – The Orchids Gutter Twins – Down the Line

Today on The Cost of Doing Business:Zim, Israel’s biggest cargo shipping company, signs the biggest debt settlement deal in the history of Israel. The haircut will relieve the company of 1.5 billion dollars' worth of debt but who loses here? And what does the future hold for Zim? Golan Hazani, Senior Reporter for Calcalist, explainsWho are the most influential people in Israeli media? Financial newspaper Globes releases its yearly rankings and what do you know? TV and print media rule the helm. Li-or Averbach, Media Correspondent for Globes, gives the low-down.2013 was the strongest year the Israeli real estate market has seen since the year 2000. Should we be worried, or thrilled? Dr. Efrat Tolkowky, CEO of the Gazit-Globe Real Estate Institute and a lecturer and IDC Herzliya, has the answersA new report shows that 68% of workers in Israel earn less than the average wage and that in 2012, the average wage was 30% higher than the median wage. A sign of growing inequality in Israel? Professor Michel Strawczynski of the Hebrew University of Jerusalem and the Van Leet Institute, says 'yes'.Start up of the week: Meta is an Israeli start up that developed gestural reality-augmentation glasses that promise to make us cooler than Iron Man. Meron Gribetz, CEO of Meta, explains why the future is augmented reality and how Meta is leading the revolutionmusic by The Fall, Nosei Hamigbaat, Melvina Reynolds, Sham 69 and Bruce Springsteen Playlist:  The Fall - Reformation נושאי המגבעת - הבא בתור הוא סוס Malvina Reynolds - Little Boxes Bruce Springsteen - High Hopes Sham 69 - If the kids are united

Summary: On this episode of The Cost of Doing Business:   -Google pays Israel an 800 million NIS tax to get Waze’s intellectual property out of Israel: Why so? And will this deter other foreign companies from purchasing Israeli start-ups? Meir Auerbach, High Tech Editor for financial newspaper Calcalist, explains Google’s unexpected generosity.   -The African refugee strike ends and migrant workers now return to the restaurants they left behind. We ask restaurant owner Alon Levi how it feels to retrieve the backbone of his business. He also details how he plans to continue supporting the asylum seekers' struggle.   -Best known for his actions in foreign policy, former Prime Minister Ariel Sharon - who passed away this week - also leaves an economic legacy behind him, one as complicated as the man himself. Dr. Yitzhak Saporta of Tel Aviv University explains.   -JVP holds a start-up competition in order to uncover tTHE next big Israeli cyber-security iINNOVATION. First prize: a million dollars. Dr. Nimrod Kozlozski, partner at JVP cyber labs, gives us the full details -Plus: music by Gogol Bordello, Yidcore, Coil, Rowland S. Howard and Sister Rosetta Tharpe

On this episode of The Cost Doing Business: We discuss the appointment of Erez Vigodman as the new President and CEO of TEVA Pharmaceuticals. Does Vigodman, currently the CEO of Makhteshim Agan Industries, have a fighting chance of saving Teva? Gilad Alper, Senior Analyst at Excellence shares his insight. -Will Tnuva, Israel’s largest dairy brand, be sold off by Apex Partners to Chinese company Bright Foods? And if so, what does this mean for Israeli consumers? Golan Hazani, Senior Reporter for financial newspaper Calcalist, explains. -So how did Israel’s capital market welcome 2014? - Cautiously, according to TheMarker’s Assa Sasson -Start-Up of the week: RealView Imaging is an Israeli company that developed 3D holographic technology enabling doctors to see their patients’ beating hearts floating in mid-air. Aviad Kaufman, CEO of RealView Imaging, explains how it works -Plus: music by Time Zone, Current 93, Hapeh Vehatlafayim, Killing Joke and Mark Lanegan

Today on The Cost of Doing Business:The Bank of Israel buys 300 million dollars in order to prop up the shekel, but is reportedly against setting a floor rate for the dollar. Is minimal interference a truly efficient way to protect Israel’s economy, and what should the BOI do? Eldad Tamir, CEO and President of Tamir Fishman Investment House, explains.The partners at the Leviathan gas field sign their first export contract and what do you know? It’s with the Palestinian Authority. Peace in the Middle East? And is Israel fast becoming a regional gas superpower? We talk to Lior Gutman, Infrastructure and Energy reporter for financial newspapers Calcalist.Finally, Nochi Dankner conclusively loses control of IDB, as Tel Aviv's district court approves the transfer of Israel’s biggest holding company to Moti Ben Moshe and Eduardo Elsztain. David Rosenberg, Economics Editor of Haaretz in English, comments on this and the future of SuperSol.Is public transport in Israel improving? A recent report declared a resounding and somewhat unexpected “yes”. It certainly got more expensive. Daniel Schmil, Transportation Reporter for financial newspaper The Marker, joins the show.   Playlist: Mondo Cane - Storia D´amore Pere Ubu - Mandy Hüsker Dü - Makes No Sense At All Laibach - Across the Universe Talking Heads - Nothing But Flowers

On this episode of The Cost of Doing Business:Are food prices in Israel driving up the cost of living? Why is the food sector resistant to competition and can anything be done without risking thousands of jobs? Meirav Arlosoroff, senior columnist for TheMarker, gives us the 411Less than 48 hours after the start of 2014 and already it seems everything in Israel has become more expensive: Gas prices, fruits and vegetables prices, the price of public transportation, even cigarettes -; have all increased since January 1st. Plus, Israel welcomed the new year with a slew of tax increases. So how expensive is this year going to be and why? Eyal Ofer of consumer protection NGO Israel Yekara Lanu joins the show.Our favorite financial commentator, Assa Sasson, gives us his take on 2013 in the Israeli capital market. Who won? Who lost? Who went to jail, and most importantly: what changed?Start-up of the week: Billguard is an Israeli-born personal finance security app that protects users from unknown, fraudulent charges on their credit cards. Raphael Ouzan, founder and CTO of Billguard, talks to us about “grey charges” and the way crowdsourcing can help us become proactive about our finances.   Playlist:Pogues - Sunny Side of the Street Fugazi - Waiting Room Dinosaur Jr. - Watch the Corners Grinderman - Electric AliceWarren Zevon - Frank and Jesse James 

In this episode of the Cost of Doing Business:2013-by-numbers: The defining digits of Israel’s economic sphereYair Lapid closes a hectic first year as Finance Minister: how did he fare? Professor Omer Moav of the Hebrew University of Jerusalem shares his answer (hint: not so good)2013 was the year the pyramids fell, or at least chaffed: With Nochi Dankner expelled from IDB almost bankrupt and the introduction of the new anti-concentration law, how does 2014 look for the remaining pyramids controlling Israel’s economy? Dr. Ido Baum, commentator for TheMarker and Law Professor at the College of Management, will explain2013 was a pretty good year for investors in Israel’s capital market. How does 2014 look? Idan Azulai,Chief Investment Officer at Epsilon Investment House, shares his predictionsFor the Israeli start-up scene, 2013 could be called The Year of Big Exits. Orr Hirschauge, hi-tech reporter for TheMarker, picks out the best bitsThis year’s biggest blunder was, without a doubt, the saga around the selection of a new governor for the Bank of Israel. After a trying year in 2013, newly-minted governor Karnit Flug may discover that her hectic candidacy was the easy part. David Rosenberg, Economics Editor for Haaretz in English, joins usPlus: great music by dEUS, Flogging Molly, The Black Angels, Billy Bragg, Habiluim and Lou Reed

In this Christmas episode of the Cost of Doing Business:Annual Finance Ministry report reveals the top wage earners in Israel’s public sector. Who are the biggest earners and does every child in Israel dream of working in Ashdod Port? Dr. Yitzhak Saporta of Tel Aviv University joins the show.All quiet on the Eastern front: Assa Sasson, our favorite financial commentator, reviews the week in Israel’s capital market.Bank of Israel leaves the interest rate unchanged at 1% and fails to demonstrate a strong front against the strengthening Shekel. Should BOI set an exchange rate floor for the Shekel? Professor Michel Strawczynski of the Hebrew University in Jerusalem and the Van Leer Institute shares his view.Nipagesh is a new social network for elementary students too young to join Facebook, but old enough to want into the social media game. We talk to Nipagesh founder and CEO Itay Eshet. Plus: music by the Pixies, The Minutemen, Martina Topley-Bird, Black Rebel Motorcycle Club, The Melvins and Bob Dylan

 The state of Israel promises Intel almost a billion dollars in grants in exchange for building a new plant and upgrading its existing facility in Kiryat Gat. Is this a good deal for Israel and can it compete with Ireland? Assaf Gilad Calcalist newspaper explainsIsraeli chip manufacturer Tower signs a partnership with Panasonic that’s going to increase its sales by 400 million dollars. What does it mean for the company and who benefits more: Tower of Panasonic? Nir Zalik, Capital Market Reporter for Calcalist, will be hereThe government doubles the property tax on the so-called “ghost apartments”: apartments that are owned by foreign citizens and sit empty. Can this tax help solve the housing crisis in Israel? Dr. Avichai Snir of the Netanya Academic College thinks not - and explainsIs medical tourism hurting the Israeli healthcare system? With the arrest of three senior physicians caught demanding bribes from medical tourists, this question seems more relevant than ever. Member of Knesset Merav Michaeli (Labor) describes the new legislative bill that aims to regulate and limit medical tourismIsraeli transportation app Moovit, that aims to do to public transportation what Waze did to driving, raises $28 million in a new round of fundraising. Can Moovit be the next Waze? Orr Hirschauge, editor of TheMarker’s Technation, will be herePlus: music by The Fall, Johnny Cash, Afghan Whigs, Woven Hand and Nick Cave & the Bad Seeds   Playlist: The Fall - Totally Wired Woven Hand - Dirty Blue Johhny Cash - God’s Gonna Cut You Down Afghan Whigs - Rebirth of the Cool Nick Cave & The Bad Seeds - Higgs Boson Blues

On this episode of The Cost of Doing Business: - Bad week for the Dankner family: Dani Dankner, former chairman of Hapoalim - Israel’s largest bank - is sentenced to one year in prison the same week that his cousin, Nochi Dankner, finally loses control of IDB, Israel’s largest holding company. Could this be the end for one of Israel’s most powerful dynasties, and how did it all come to this? David Rosenberg, Economics Editor for Haaretz in English, has the answers.   -Teva reaches a settlement with Pfizer allowing it to sell generic Viagra as of 2017. Can generic Viagra be enough to save Teva from its current woes? Unlikely, according to Gilad Alfer, Senior Analyst at Excellence Brokerage -Two complementary reports were published this week about poverty in Israel: one by Bituah Leumi - Israel’s social security - and one by Latet, a humanitarian NGO. Why has the number of working poor doubled in the last decade, and what does this mean for Israel’s economy? Liron Yochai, author Latet's “alternative” poverty report, gives us her take -Start-up of the week: have a great idea for an App, but you’re not a techie and you have no idea how to do something about it? New Israeli start-up Joyinapp aims to help you develop your idea, without doing a lick of work. Yogev Ben Tov, founder of Joyinapp, explains how it works Playlist: Warren Zevon - Lawyers, Guns and MoneyMy Bloody Valentine – In Another WayBilly Bragg - I ain’t got no home in this world anymoreTomahawk - OddfellowsBlack Flag - Tv Party

Christmas is round the corner. Will Santa be covering the astronomic costs of last week's snowstorm? More to the point, will the Ben Moshe-Elsztain partnership survive investigation? We review the damages caused by the biggest snow storm to hit Israel in the past 50 years. Will the Jerusalem workforce be reimbursed their missed salaries? And will the government declare this a “disaster”? Yossi Manor, former president of the Association of Insurance Brokers and Agents in Israel, explains subtletiesIDB, the never-ending story: Now that Nochi Dankner has lost control of IDB, the chances of the Moti Ben Moshe-Eduardo Elsztain consortium seem favorable, but not definitive. With troubling questions regarding the source of Ben Moshe’s wealth looming over the court’s decision, might the IDB conglomerate be broken up and sold in pieces? Dror Strum, General Manager of The Israeli Institute for Economic Planning, gives his analysisShould investors steer clear of food-related stocks - both manufacturers and retailers - in 2014? Liat Glazer, Analyst at Excellence, predicts slower growth and decreasing consumption leading to lower profitability for the Israeli food sector.Silicon Boston? Israeli companies generate 12 billion dollars in business for the state of Massachusetts. Eldad Amir, chairman of the board at the New England-Israel Business Council (NEIBC), explains how Israeli business accounts for 2.9% of Massachusetts’ GDP.Plus: music by Queens of the Stone Age, Mr. Bungle, Pixies and Led Zeppelin Playlist: Queens of the Stone Age - My God is the Sun Led Zeppelin - Four Sticks Pixies - Another Toe in the Ocean Mr. Bungle- Quote Unquote Tomahawk – Oddfellows

On this episode of The Cost of Doing Business: -The Knesset approves landmark anti-wealth concentration bill that limits the power of corporations and so-called “pyramid companies” over Israel’s economy. What happens now and how will this law impact the average Israeli? MK Merav Michaeli (Labor), spearheaded the new law, joins us.The strengthening NIS threatens to derail the export sector - and harm the Israeli economy. Should the government assist exporters, and can anything be done to stop the Dollar’s fall? Eldad Tamir, CEO and President of Tamir Fishman investment house, shares his insight.A special report from the Israel Business Conference, hosted by financial newspaper Globes. When you gather all the muckety-mucks of Israel’s business world what happens? Gilad Halpern gives us the juiceThe Israeli capital market closes what could only be called a tumultuous week. Assa Sasson, Financial and Insurance reporter for TheMarker, recaps and expands.New segment: Start-Up of the week. Imagine a world where you never have to change your phone’s SIM! Not when you switch mobile operators, not even when you travel abroad. How much hassle would that save? Cue Israeli start-up Cellbuddy, that developed a universal SIM card. Ofir Paz, the company’s founder, tells us how it works.Plus: music by The Rolling Stones, Kurt Vile, Nick Cave and the Bad Seeds, Mark Lanegan& Isobelle Campbell and Iggy Pop Playlist: The Rolling Stones - Happy Mark Lanegan & Isobel Campbell- Come On Over (Turn Me On Kurt Vile - 'Wakin On A Pretty Day Iggy pop - lust for life Woven Hand - Dirty Blue Nick Cave and the Bad Seeds - Fifteen feet of pure white snow

On this episode of The Cost of Doing Business: Economic earthquake! Embattled tycoon Nochi Dankner loses control of IDB, Israel’s biggest holding company. Will Israel’s once-most powerful businessman go down without a fight? And how does Israel’s economy look the morning after the “Danker Era”? David Rosenberg, Economics Editor for Haaretz in English, elaborates on this and moreSpeaking of IDB, this week the company sold off camera-in-a-pill maker Given Imaging to Irish-based Covidien for nearly 900 million dollars. Is this a good deal for Covidien and, more importantly, for Given? Golan Hazani, Senior Reporter for Calcalist, joins usThe OECD presented its bi-annual report on Israel’s economy to the government: How does Israel look in the eyes of the developed world?Shake-up in the Israeli media: Global production juggernaut Endemol (Big Brother) invests in Channel 2’s Reshet, thereby further disrupting rival Keshet’s status as the undisputed leader of Israeli commercial television. What does Endemol get out of this deal and why is Israel’s TV business suddenly so hot? Li-Or Averbach, Media Correspondent for Globes explainsLast but not least: we cast our gaze into the future, to the year 2014, and ask: What lies ahead for Israel’s economy? Rinat Ashkenazi, Senior Economist for Excellence gives her forecast. Warning: Eyebrows will be raised.Plus: great music by The Pogues, The Clash, Bucharest, Tom Waits and Afghan Whigs Playlist: The Pogues - Dark Streets of London Tom Waits - Make it rain Afghan Whigs - Debonair Bucharest – Twilight Noir Desir+16 Horsepower = Fire Spirit