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American-Israel Chamber of Commerce, Southeast
Region
400 Northridge Road, Suite 250, Atlanta, GA 30350
Tel:
(404)843-9426 Fax: (404)843-1416 e-mail:
aiccse@aiccse.org website: www.aiccse.org
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| October 12, 2006 |
| From The Leadership |
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While Israel is a very small country, we have found it useful to nurture special relationships with specific communities in the country. Often these have been pairings through the Jewish communities in the Southeast such as Atlanta with Yokneam-Megiddo and Birmingham with Rosh Ha'ayin. Another way has been through the International Sister Cities program that has paired Atlanta with Ra'anana.
There is certainly a mismatch in terms of the sizes of both population and geography between Atlanta and Ra'anana, but they have, nonetheless, emerged as a good match. We expect this relationship to be further enhanced soon with the visit of Ra'anana Mayor Nachum Hofree to Atlanta. The Chamber is coordinating a series of economic briefings by our economic development partners, and we will also welcome the Mayor and his delegation at a special networking reception next Tuesday. Please join us as we pave the way for further business ties between our communities. |
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| Upcoming Calendar Events (click on event for details) |
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| Sponsor Message |
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H.T. PROF ISRAEL is an executive search firm located in Atlanta. For the past 6 years, we have recruited for more than 60 Israeli companies hiring in the U.S. Todd Porter, the owner of H.T. PROF ISRAEL, will be in Israel from November 6th through the 11th. If you would like to meet with him during this period, please contact him directly at 770-420-7440 or via e-mail: tsporter@htprof.co.il. For additional information on our history and positions we are recruiting: www.htprof.com and www.htprof.co.il. |
AICC offers an exclusive sponsorship for each e-Newsletter. For information
on sponsoring future e-Newsletters, contact Shelley Samach,
aiccse@aiccse.org.
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| The Latest News |
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Developments & Transactions |
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Israeli Companies Contacting Us |
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Gourmet Products -- Rehovot-based producer of gourmet Mediterranean spreads, dips, cooking sauces, and salad dressings with a new line of refrigerated "grab-and-go" delicacy items that have dual use as spreads and stand-alone appetizers. Seeking introductions to US importers and distributors to specialty food stores, supermarket chains, and private label producers.
Mobile Convergence -- Tel Aviv-based software company's technology enables telecom company subscribers to answer calls on their mobile or land lines and easily access phone books located centrally on the web from all phones with screens. Seeking introduction to cable providers, cellular companies, and ISPs as well as infrastructure vendors to the communications industry.
Software Outsourcing -- Herzliya-based IT solutions vendor has opened two technological centers in Israel for customized services including software development, maintenance, conversion, testing and QA, documentation, data cleansing, and technical help desk. Can compete with India due to use of underutilized talent from religious communities. Seeking introduction to potential US customers.
Production Quality -- Yokneam-based company has developed a patented optical and laser metrology for the food canning and packaging industries, enabling manufacturers to dramatically improve and monitor the quality of items coming from production lines. Products are easy to use, significantly reduce down time in the manufacturing process, limit waste, and improve quality of production with a solution that is less invasive and more accurate than the competition. Seeking introduction to food and beverage producers in the Southeast. |
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Economic News From Israel |
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Will Stanley Fischer Lower Interest in November?Bank of Israel and US Federal Reserve interest rates
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(annual %)
Source: Bank of Israel and US Federal Reserve
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On 30 October, Professor Stanley Fischer, the Governor of the Bank of Israel, is due to announce the central bank's decision regarding its interest rate (which determines interest rates for the economy as a whole) in November. Many analysts expect Fischer to lower the rate by 0.25% from its current level of 5.5%. The main reason -- the ongoing strengthening of the shekel against the US dollar, which has gathered speed over the last month: at present, the shekel is at its strongest position against the dollar since 2001.
If indeed, Fischer does lower interest, it would be a breakaway from the trend of increasing interest over the past year, from 3.5% in September 2005 to the current level of 5.5%. Who is pushing for a decrease in the rate? Primarily Israel's exporters (those who are paid in dollars for their exports), who are suffering from the strengthening of the shekel and want some devaluation. In fact, exporters have been putting pressure on the Bank of Israel to implement an interest cut before the end of October.
But Fischer himself may seek to reduce interest because of concern regarding economic growth. Most growth forecasts for 2006 have been adjusted downwards, because of the dampening effect on the economy of the war in July-August: from this point of view, it will be interesting to see the Central Bureau of Statistics' preliminary estimate for GDP growth in 2006, due to be published on 18 October. But in addition, there is concern (not only in Israel) about the slowdown in the growth of the US economy that seems to be developing, which would affect the global economy in general and Israel, as part of that economy.
One of the elements taken into account in determining interest rate policy in Israel is interest rate policy in the US. The graph shows how the two central bank rates have moved together over the past year, with the Israeli rate mostly kept ahead of the US rate. The Fed has kept its current rate - 5.25% - unchanged since June, while Israel's current rate has been steady since August. The possibility of a slowdown in the US is also being taken into account in the Fed's interest rate policy, and there is a certain amount of pressure on Chairman Bernanke to lower the rate, in order to sustain growth. We will know the result on 24 October, when the next Fed interest rate decision is due.
Certainly, if the Fed decides to lower its rate on 24 October, this will make it easier for the Bank of Israel to decide to lower its rate on 30 October, because the present gap of 0.25 percentage points between the two rates will still be maintained. However, if the strengthening of the dollar continues (the shekel devalued slightly on 9 October, and some commentators argue that the process of shekel strengthening may have come to an end), pressure will be maintained on Stanley Fischer to lower the Israeli rate at the end of October (or earlier), even if the Fed rate is not reduced.
Provided as a service to AICC by I-Biz - Israel Business Information Services Ltd. For more information on I-Biz Information Services, visit www.i-biz.co.il or contact info@i-biz.co.il. |
- Xerox is acquiring XMPie for $54 million. The Netanya-based start-up will function as their first R&D center in Israel, focusing on digital printing.
- Hebrew University and Tel Aviv University have been ranked 12th and 21st respectively out of a total of 100 universities worldwide by the Milken Institute in a survey of biotechnology patent rankings for universities.
- Pfizer is acquiring an exclusive worldwide license to a human gene discovered by Ness Tziona-based Quark Biotech in an agreement believed to be worth hundreds of millions of dollars. The gene is involved in the development of pathologic blood vessels which accelerate the progression of age-related macular degeneration.
- Microsoft has acquired Gteko Technologies for some $120 million. The Ra'anana-based company develops products in the field of user experience and automated technical support for home networks and smart homes.
- Enure Networks has completed an additional $4 million financing round from Carmel Ventures. The Herzliya-based developer of software to simplify the use of home networks participated in the 2006 US-Israel Broadband Business Exchange.
- Ra'anana-based dbMotion was named one of Israel's "10 most Promising Start-ups of 2006" by Globes. The provider of software that enables healthcare organizations to securely share clinical information maintains its US headquarters in Atlanta.
- The Israel Air Force has received its first AWACS plane with airborne radar systems made by Israel Aircraft Industry's subsidiary Elta Systems. Produced by Savannah, Georgia-based Gulfstream, the G-550 aircraft was purchased with US Military aid.
- Israel was ranked 26th out of 175 countries in the Business Friendliness Index, according to an organization affiliated with the World Bank. One of the index's variables is protection of investors where Israel was tied for 5th place with the US, Canada, and Ireland.
- Despite the Lebanon War, Israel's exports rose by an annualized 12.9% in June-August according to the Central Bureau of Statistics. The Bureau now estimates that the war's effect on Israel's GDP for 2006 will be a reduction of 0.7%.
- According to The Economist, a record high of $9 billion in direct foreign investments is expected in Israel in 2006. Israel was ranked 10th out of 27 emerging markets in the world.
- 72 new Israeli start-ups were founded in the first half of 2006, mostly software, telecommunications, security, and biotechnology companies, according to the Israel Export & International Cooperation Institute. 63 Israeli start-ups were acquired last year for $2.75 billion, and there were 2,622 start-ups operating at the end of 2005.
- Air traffic to and from Israel was 6% less in August 2006 than in August 2005 according to the Israel Civil Aviation Authority. The number of flights actually rose by 5%, because airlines had predicted an increase in passenger traffic which did not occur due to the Lebanon War. Foreign airlines did not cancel flights despite the drop in demand, and more airlines began flights to Israel during 2006 including Atlanta-based Delta Air Lines.
- Israel moved up 8 notches to rank 15th worldwide in the World Economic Forum's Global Competitiveness Index for 2006-2007, establishing it as one of the world's most competitive economies. The development of Israel's financial market was cited as a key factor in the higher ranking.
- The Bank of Israel predicts 4.6% GDP growth for 2006 and 4% for 2007. Israel's unemployment is expected to remain unchanged this year from the 2005 level of 8.9%, but is predicted to drop to 8.5% in 2007.
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| Events |
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and
American Israel Educational Institute Southeast
Invite you to a networking reception to welcome
Hon. Nachum Hofree
Mayor of Ra’anana
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Ra’anana is Atlanta’s official Sister City in Israel. Considered to be one of the country’s most beautiful and livable communities, Ra’anana was founded in 1922 by American pioneers. Over the years, it has been transformed from an agricultural settlement into one of Israel’s leading cities and home to major companies including NICE Systems, Retalix, Amdocs (Atlanta’s largest Israeli company employer), and dbMotion which recently established its US headquarters here.
A business administration graduate of Tel Aviv University and former Israel Air Force commander, Mayor Hofree has been a distinguished education administrator as principal of Ra’anana’s high school and head of the Education division for the city. He was elected mayor in September 2005
Please join us as we welcome Mayor Hofree and build closer connections to this important business center.
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Tuesday, October 17, 2006
5:00-7:00 PM
Smith Gambrell & Russell
1230 Peachtree Street, NE
31st Floor
Midtown Atlanta
Click here for directions
$15 for AICC members
$20 for non-members
To register, click here
SPONSORS
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| Membership |
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AICC Welcomes New Members! |
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AICC Thanks Members for Renewing! |
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Steve Rakitt - Jewish Federation of Greater Atlanta
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| Other |
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AICC copyright 2006 |
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