JPMorgan warns about investment risk in Israel
The major US investment firm is concerned about the government’s judicial reform efforts contributing to domestic volatility.
A prominent Wall Street bank has warned of investment risks in Israel as the judicial reform issue inflames the country, Israeli outlets reported Friday.
Israel’s Channel 12 published a memo from JPMorgan titled, “Israel Strategy: Domestic volatility flares up.” The memo warned of increased investment risk in Israel stemming from the government’s judicial reform plans and geopolitical tensions.
“Israel’s local markets have seen a flareup in idiosyncratic risk, as increased geopolitical tensions were added to investor concerns over plans for judicial reforms,” read the memo. “The judicial reform has raised concerns regarding institutional strength and the investment climate in the country.”
JPMorgan cited the “significant local protests” in Israel against the reforms as evidence of the country’s increasing volatility. The bank added that the effect of institutional weakening on investment is “difficult to judge.”
