Israeli Unemployment May Hold at 10-Year Low: Week Ahead
Israel's unemployment rate may have held close to its lowest level in more than a decade in May as the economy heads for its sixth year of growth, said Ron Eichel of Meitav Mutual Fund Management Ltd.
April unemployment was unchanged from March at 6.3 percent. The Jerusalem-based Central Bureau of Statistics will release the May figures on July 23.
“We're seeing low unemployment as a result of several years of growth,'' said Eichel, chief economist at Tel Aviv-based Meitav. “We're hearing about firings and businesses closing down but there won't be any sharp increase.''
The rate has been declining since peaking at 11 percent in 2004 as the economy expands, powered by exports. Economic growth has exceeded an annual 5 percent since 2004 and the Bank of Israel has forecast the expansion will slow to 4.2 percent this year.
Last week, the benchmark 6.5 percent Shahar bond due in January 2016 rose 1 percent to 107.43, with the yield falling 18 basis points to 5.75 percent. The shekel declined 2 percent to 3.3768 per dollar.
Bonds climbed as traders bet the central bank will pause in raising interest rates this month after June inflation slowed more-than-expected to 4.8 percent low fees payday loan fast cash loans.
Stock Exchange
The Tel Aviv Stock Exchange's benchmark TA-25 Index last week fell 1 percent to 1,009.84. Africa Israel Investments Ltd. and Gazit Globe Ltd. were the biggest decliners with losses of 11 percent and 9 percent respectively.
In political news, lawyers for Prime Minister Ehud Olmert on July 17 began a five-day cross-examination of U.S. businessman Morris Talansky who has testified that he gave Olmert more than $100,000 in “cash-stuffed envelopes.''
Israel on July 16 completed an exchange with Hezbollah in which it released five Lebanese prisoners were traded for the bodies of two Israeli soldiers, Eldad Regev and Ehud Goldwasser. Their capture in July 2006, sparked a 33-day war between Israel and Iranian-backed Shiite Muslim Hezbollah militia.
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