9. Intel Invests $2.7 Billion in Its Israeli Chip Facility
1. Palestinians Reject Proposed Israeli GesturesChief Palestinian negotiator Saeb Erekat rejected on Saturday [February 5] a series of economic incentives proposed by Prime Minister [PM] Benjamin Netanyahu and Quartet envoy Tony Blair. During their meeting Friday [February 4], Netanyahu and Blair agreed on a new Israeli proposal aimed at easing economic and security restrictions imposed on Palestinians in the West Bank [Judea and Samaria] as part of the effort to bolster Palestinian President Mahmoud Abbas and convince the Palestinians to return to the negotiation table.
The proposal was presented as the committee of the Quartet-made up of the United Nations, the United States, the European Union and Russia-prepared to meet in Munich, Germany. It reportedly includes expanding Arab construction in east Jerusalem and giving the Palestinian Authority [PA] security powers in seven West Bank cities.
Netanyahu also agreed to begin discussions on the development of a Palestinian Authority gas field adjacent to an Israeli gas field off the coast of Gaza. The PM said future revenues from the Palestinian field will go to the PA.
Erekat said the proposal "is just a trick and procrastination of Israeli Prime Minister Benjamin Netanyahu. What Netanyahu should do, if he wants to build confidence, is immediately stop settlement construction in the West Bank and east Jerusalem and recognize a Palestinian state on the territories occupied in 1967, "the Palestinian news agency Ma'an quoted the chief negotiator as saying. The senior official called on the Quartet to force Israel to halt settlement construction, "including in Jerusalem."
Addressing the dramatic political developments in the Arab world, Erekat said "what is driving the region to violence and extremism is the continued occupation and Israeli insistence to maintain the settlement enterprise." He said continuing to deal with Israel as though it were "above the law" will lead to chaos, violence, extremism and a bloodbath.
Netanyahu emphasized on Friday that peace will not be attained by only promoting "economic peace," but rather by "engaging in negotiations for political peace, and I hope Mahmoud Abbas answers my calls."
(Excerpts of an article by Elior Levy, Ynetnews, February 5, 2011)
Prayer Focus
Pray that the Quartet will recognize the PA's attempts to manipulate them into pressuring Israel into another building freeze. Pray that the Lord will protect Israel from the violence being threatened.
Scripture
"The fear of man brings a snare, but whoever trusts in the LORD shall be safe" (Proverbs 29:25).
2. UK Defense Head Issues Iran Warning, Considers New SanctionsUK Defense Secretary Liam Fox raised the prospect of new sanctions on Iran over their nuclear program during a speech in Israel on Sunday [February 6] at the Herzliya Conference, warning against assuming the best-case scenario with regards to the Iranian nuclear program's timeline.
In previous comments to the British parliament on January 31, Fox had said Iran could get a nuclear weapon as soon as next year. Referring to the range of estimates, Reuters quoted Fox as telling the parliament, "We should therefore be very clear that it is entirely possible that Iran may be on the 2012 end of that spectrum and act in accordance with that warning."
According to a transcript of Sunday's speech, Fox pointed to North Korea's example of surprising the West with its nuclear capabilities: "When it comes to timescales, I do not think it is prudent to assume we are at the most optimistic end of the spectrum. We know from previous experience, not least from what happened in North Korea, that the international community can be caught out assuming that things are rosier than they actually are. We should therefore be clear that it is entirely possible that Iran's nuclear weapons program could be more advanced, and act in accordance with the fact that time is not on our side."
Despite his recent warnings on Iran, Fox made clear last month to the British parliament that Iran has not crossed the nuclear threshold yet. "Iran does not yet have nuclear weapons, as assessed, however it does continue to pursue uranium enrichment and the construction of a heavy water reactor, both of which have military potential," Reuters quoted him as saying on January 31.
In his speech on Sunday, Fox also critiqued Iran for failing to adequately engage the international powers in talks held last month in Istanbul, Turkey. Following the disappointing meeting, Fox said additional sanctions on Iran could be considered.
"For our part, we will continue to keep the door open to talks if Iran is prepared to negotiate seriously, as well as keeping up the pressure on Iran through sanctions," said Fox. "Post-Istanbul, we shall be looking hard at how to strengthen the sanctions regime, both through tightening existing measure[s] and looking at new ones."
Fox also linked Iran's nuclear program to the Mideast peace process between Israel and the Palestinians. In his comments in Israel, he said, "The United Kingdom is pushing for stronger sanctions to influence Iran, but the importance of the Middle East Peace Process should not be overlooked. Progress towards the two-state solution-a secure and universally recognized Israel living alongside a viable Palestinian state-is important in defusing the malign influence of Iran."
However, Fox also brought up the effect Iran's nuclear program could have on the peace process, alongside other serious consequences. "If Iran gets nuclear weapons, it will be a disaster. It could destroy hopes for peace in the Middle East, for international stability and could very well mean the effective end of the Non-Proliferation Treaty [which regulates nuclear programs around the world] as we know it. It would lay the ground for a nuclear arms race in the region which would bring great instability, and ultimately diminish the security for the Iranian people themselves."
Fox, who said he was the first UK Defense Secretary to visit Israel "in decades," praised the defense relationship between the two nations. He noted that Israel shares the UK's concerns about Iran's nuclear program, "as do other countries in the region and the international community as a whole." The British defense official also called for the world to act on those concerns.
"We want a negotiated solution-but Iran needs to change its approach fundamentally if we are to achieve that outcome," said Fox. "An Iranian nuclear weapons capability will not be tolerated by the international community. This means the international community needs to act as well as speak. We will not look away and we will not back down."
(By Joshua Spurlock, BFP Israel Mosaic Radio, February 8, 2011, Reuters contributed to this report)
Prayer Focus
Pray that the statements made by the UK Defense Minister will be taken seriously by the international community, spurring further and decisive action to end this threat to Israel and the world.
Scripture
"This they shall have for their pride, because they have reproached and made arrogant threats against the people of the LORD of hosts" (Zephaniah 2:10).
3. Egyptian Pipeline Attack Leads to Halt of Gas to IsraelConcerns about violence in Egypt potentially affecting Israel directly resurfaced on Monday [February 7], when a judge said a bomb placed by masked men caused an explosion near a gas pipeline terminal in the Egyptian Sinai last weekend, according to the BBC Web site.
Prior to the statement by the investigating judge, Egypt's natural gas company had said the explosion was caused by a gas leak. CNN reported that as a precaution following the blast, the natural gas supply from the area, including gas to Israel, was halted. Israeli Prime Minister Benjamin Netanyahu said on Sunday [February 6] that Israel was prepared to handle incidents like this, and it should not harm Israel's overall gas supply. Israel currently receives 40% of their natural gas from Egypt.
In comments regarding the explosion made at the weekly cabinet meeting and posted on the Israel Prime Minister's Office Web site, Netanyahu said, "Israel is prepared for such situations and has the possibility of immediately switching to alternative energy sources. It is important to note that we are prepared for any scenario…In any case, due to these advance preparations, no problems are expected in the supply of gas to the State of Israel."
Continued Netanyahu, "I believe that the shocks in our region underscore and reiterate that Israel is an island of stability in a turbulent area, and we will continue to do everything to ensure the security and vital interests of the State of Israel, in the face of the major challenges yet before us as well."
New violence also broke out on Monday in the Egyptian side of the Gaza border area, as the Palestinian Ma'an News Agency reported that Egyptian security forces were attacked by what witnesses said was an Islamic extremist group. Ma'an also reported that local officials claimed the group, an offshoot of the Muslim Brotherhood, abducted three Egyptian police offers last Friday [February 4].
(By Joshua Spurlock, BFP Israel Mosaic Radio, February 7, 2011)
Prayer Focus
Pray that the Lord will protect Israel's interests as turmoil continues in the region.
Scripture
"Plead my cause, O LORD, with those who strive with me; fight against those who fight against me. Take hold of shield and buckler, and stand up for my help" (Psalm 35:10).
4. Israel Must Prepare for Multi-front War Says Outgoing Army ChiefIsrael's military planning must focus on fighting a war on multiple fronts according to its outgoing army chief-of-staff. Lt. Gen. Gabi Ashkenazi was appointed to head the nation's military after the 2006 war in Lebanon against Hizbullah at a time when the army was seen as demoralized and numerous operational deficiencies had come to the fore.
Ashkenazi proved to be a popular choice, receiving praise for both his professional capabilities and for the respect he commanded from his troops. Speaking at a conference one week before leaving the army, Ashkenazi warned that moderate leaders in the Arab world are being replaced by more radical successors.
He admonished Israel not to forsake preparations for conventional warfare lest the nation be unprepared when "overnight" it's thrust into a battle on multiple fronts.
On the same day Ashkenazi spoke in Herzliya, Hizbullah chief Sheikh Hasan Sayyid Na'srallah provided counterpoint in a speech delivered to a Beirut rally in support of the uprising against Egyptian President Hosni Mubarak. Addressing young Egyptians, Na'srallah said their struggle will "fully change the region's face, especially Palestine, in favor of all our peoples."
(Excerpts of an article by The Media Line, February 8, 2011)
Prayer Focus
Pray for God's protection on Israel. Pray that the nation will be prepared to defend itself on every front while recognizing that their security is to be found in the God of Abraham, Isaac and Jacob.
Scripture
"It is God who arms me with strength, and makes my way perfect. He makes my feet like the feet of deer, and sets me on my high places. He teaches my hands to make war, so that my arms can bend a bow of bronze" (Psalm 18:32-34).
5. Netanyahu Announces Economic Relief MeasurePrime Minister [PM] Benjamin Netanyahu presented on Thursday [February 10] the government's strategy to reduce the rising prices of commodities during a special press conference. The outline includes the reduction of water costs, the reduction of public transportation prices, and the cancellation of the latest tax increase on gas.
Moreover, Netanyahu announced that minimum monthly wages will be raised by NIS 450 ($122). The PM said that following two financial crises that have plagued Israel over the past decade, it appears that 2011 might bring yet another fiscal meltdown. "We are witnessing the characteristics of a third crisis which ties into the previous one," he said.
"The recovering economies, the giant economies, demand a lot of energy. They drink a lot of oil, and when they do, the prices of oil rise." Netanyahu explained that the rising prices of oil drag other commodity prices up with them, including the prices of gas and food. He listed the unrest in surrounding nations as another factor causing fiscal uncertainty, which contributes to the rising costs as well.
The prime minister said that the State has taken various measures to deal with past financial crises, including the creation of 100,000 jobs over the past year, increasing subsidies for kids and working mothers, and supplementing the education budget. Addressing the growing costs of raw materials, Netanyahu said that not only Israel but world powers like the US, China, and Japan have no control over the fluctuating prices in this category.
"Since we cannot control them, it is possible that these prices, including those of oil, will continue to climb up," he said. "This is why our first step is to encourage the use of public transportation. This is the right thing." He said that the government will therefore reduce the prices of bus and train rides by 10%.
The prime minister also said that certain alterations will be made to the prices of water used by citizens. "We are setting a simple principle: Those who use more per person, for example those who use it wastefully to water their gardens and pools, they will pay significantly more, so that those who save can pay less," he said. Netanyahu added that limits higher than normal will be set for people with disabilities, because they tend to use more water.
As for minimum wages, which will be raised by NIS 450, Netanyahu said that it will meet the immediate needs of families that struggle the most with the prices of basic products. "We want to set a simple concept: to help those who don't have...We want to give the benefits to those who really make minimal wages," he said. "I hope and call on (Histadrut Labor Federation [trade union organization] Chairman) Ofer Eini to talk and agree with us as soon as possible. We are ready to go immediately."
Lastly, Netanyahu said that the latest tax increase on gas, which amounted to 23 agorot [100 agorot=1 shekel] per liter [1 liter=0.26 US ga.], will be cancelled. "It doesn't solve the problem of the gas prices, but I think that we have here a serious and responsible package," he said.
"We must preserve the budget frame…To protect our economy and protect our security," he said. "We have found out that, from Morocco to Pakistan, Israel might be the most stable state. We must preserve the stability, help the citizens. We will do it, above all, responsibly."
Speaking after Netanyahu, Finance Minister Yuval Steinitz said that the first socio-economic priority is to reduce unemployment rates. "This has been, and from my point of view still is, the holy goal of financial policy in a time of international crisis, which has yet to end," he said.
Meretz [a left-wing political party outside the governing coaltion] chairman Chaim Oron told Ynet the measures presented by Netanyahu were "worthy, but too minor. The high cost of living and the disappearance of the middle class require a conceptual and systematic change, including a complete halt to indirect tax increases and the lowering of company taxes and direct taxes."
(Excerpts of an article by Tani Goldstein, Roni Sofer and Aviel Magnezi contributed, Ynetnews, February 10, 2011)
Prayer Focus
Pray for the Lord's hand to rest on the Israeli economy, maintaining its strength while allowing for the needs of the people, including the need for affordable housing, to be met.
Scripture
"All of you assemble yourselves, and hear! Who among them has declared these things? The LORD loves him [Israel]…I, even I, have spoken; yes, I have called him, I have brought him, and his way will prosper" (Isaiah 48:14a, 15).
6. Mubarak Says to Transfer Power but not ResigningHosni Mubarak, struggling to cling on as president in the face of unprecedented protests over poverty, corruption and oppression, said on Thursday he would transfer powers to his vice president.
In a nationally televised address that failed to meet demands by protesters for him to step down immediately, Mubarak, 82, appeared to step aside by handing over the reins of power to his deputy, Omar Suleiman, a former intelligence chief trusted by Washington. Protesters in Tahrir Square, waved their shoes in dismay at the speech, shouting: "Down, Down, Hosni Mubarak" enraged by the fact that the president had not stepped down.
Mubarak repeated that he would not stand for the presidency in a September poll and said talks with the opposition, which would have been unthinkable before Jan. 25 when protests began, had led to preliminary consensus to resolve the crisis.
Egypt was heading to a peaceful transfer of power, said the president, stating that he believed in the honesty of the protesters' demands and intentions but underlining his rejection of foreign powers dictating events in his country.
"My sons and daughters, the youth of Egypt, dear fellow citizens, I have announced, without any doubt, that I will not run for the next presidential elections and have said that I have given the country and served the country for 60 years in public service, during wartime and during peacetime," he said.
"I have told you my determination that I will hold steadfast to continue to take on my responsibility to protect the constitution and the rights of people until power is transferred to whomever the people choose during September, the upcoming September, and free and impartial elections that will be safeguarded by the freedom - the call for freedom."
Addressing the anti-government protestors, the Egyptian leader said, "I was a young man, a youth just like all these youth, when I have learned the honor of the military system and to sacrifice for the country. I have spent my entire life defending its land and its sovereignty. I have witnessed and attended its wars with all its defeats and victories. I have lived during defeat and victory.
"During the victory in 1973, my happiest days were when I lifted the Egyptian flag over Sinai. I have faced death several times when I was a pilot. I also faced it in Addis Ababa, Ethiopia and elsewhere. I did not submit nor yield to foreign dictations or others. I have kept the peace. I worked towards the Egyptian stability and security. I have worked to the revival in Egypt and the prosperity," he said.
Mubarak said he felt the pain of those who had lost family in the protests and that he was responding to the nation's demands with commitment and said those who had died, put at possibly 300 by the United Nations, had not died in vain.
He also relayed a warning to the organizers of the mass protests against his regime. "I am telling you before anything, that the blood of the martyrs and the injured will not go in vain. And I would like to affirm, I will not hesitate to punish those who are responsible fiercely. I will hold those in charge who have violated the rights of our youth with the harshest punishment stipulated in the law.
"I am telling families of the innocent victims that I have been so much in pain for their pain, and my heart ached for your heartache," he said.
Mubarak also leveled criticism at the international community, which did not support him since the anti-government riots erupted about a month ago. "I am telling you, as a president of the country, I do not find it a mistake to listen to you and to respond to your requests and demands. But it is shameful and I will not, nor will ever accept to hear foreign dictations, whatever the source might be or whatever the context it came in."
Earlier in the day, the military high command took control of the nation in what some called a military coup after two weeks of unprecedented protests. Anything less than quitting could provoke a powerful reaction from the street where the core of protesters want his immediate resignation and reject any political manoeuvring that allows him to stay on in some capacity, perhaps as a figurehead.
The armed forces, issuing what they labeled "Communique No.1", announced they were moving to preserve the nation and the aspirations of the people. The Higher Army Council met to try to calm an earthquake of unrest which has shocked the Middle East.
News that Mubarak may hand over power, or be unseated, in this key American ally in the Middle East had provoked loud and emotional cheers in Cairo's Tahrir Square, the focal point for pro-democracy demonstrations. But some in the crowd were quick to protest they did not want military rule.
Mubarak, a former air force commander, was not present at the council meeting. He was to address Egyptians on television. Ahead of the address, hundreds of thousands flocked to the square and the surrounding streets with some organizers saying this had been the biggest turnout yet to celebrate their role in modern Egyptian history.
"The fact that the army met without Mubarak who is the head of the armed forces means that the military has taken over power and I expect this to be announced shortly in Mubarak's televised speech," Nabil Abdel Fattah, at the Al Ahram Centre for Political and Strategic Studies, said.
(By Roee Nahmias, Reuters, February 10, 2011, posted on Ynetnews.com)
Prayer Focus
Pray that the Lord have His way in directing the establishment of a new government in Egypt, and that the Egyptian people will be protected and stability restored.
Scripture
"Take away the wicked from before the king, and his throne will be established in righteousness" (Proverbs 25:5).
7. European Parliamentarians Show Support for IsraelAround 400 parliamentarians, including members of the European Parliament and of national parliaments of 37 European countries, attended a three-day policy conference in Jerusalem convened by the initiative European Friends of Israel (EFI).
Several former heads of state and government were also present at the conference, including Aleksander Kwasniewski of Poland, José Maria Aznar of Spain, and George Vassiliou of Cyprus. Participants met with Israeli and Palestinian leaders including President Shimon Peres, Prime Minister Benjamin Netanyahu, and Palestinian President Mahmoud Abbas.
Alexander Machkevitch, president of the Euro-Asian Jewish Congress, who sponsored the event, told the parliamentarians that Israelis and Europeans shared the same values of freedom, democracy and social responsibility. He stressed that in the face of the campaign to delegitimize the Jewish state, those who saw themselves as bearers of these values should show solidarity with Israel.
The conference participants clearly demonstrated this solidarity, Machkevitch said. The conference discussed issues like boycott threats against, terrorism, and European-Israeli political and economic relations.
According to the organizers, The European Friends of Israel was established in 2006 by European parliamentarians with the mission of "forging a stronger political relationship and a deeper understanding between Europe and Israel."
(Excerpts of an article by World Jewish Congress, February 7, 2011)
Prayer Focus
Praise the Lord for the support shown by these world leaders. Pray that He will bless them and their nations for their solidarity with Israel.
Scripture
"How lovely are your tents, O Jacob! Your dwellings, O Israel!...Blessed is he who blesses you, and cursed is he who curses you" (Numbers 24:5, 9).
8. Jihadists Set Free amid Egyptian TurmoilWhen Egyptian jails were emptied as part of the unrest to unseat President Hosni Mubarak, prisoners aligned with terrorist organizations were among those who fled to freedom, according to [Egyptian] Vice President Omar Suleiman.
The long-time intelligence chief, who was elevated to the vice presidency by Mubarak in an attempt to placate his detractors, told reporters on Tuesday [February 8] that members of "Jihadist organizations" were among those set free and in particular, prisoners with links to Al-Qa'ida who had been extradited to Egypt. Suleiman said the nation needs "a lot of effort to get them back."
The anti-government demonstrations which had appeared to have lost some steam were re-energized on Tuesday with an estimated 250,000 people filling Tahrir Square in Cairo. Reports from the scene indicated protestors dismissed the announcement by Suleiman that two committees are being established: one to propose constitutional changes and one to monitor implementation of reforms.
Suleiman also promised that protestors will not be harassed by police or pro-Mubarak forces. Another protest set for Friday [February 11] is being viewed as an indicator of whether demonstrations will outlast Suleiman's attempts to initiate reforms.
(By The Media Line, February 9, 2011)
Prayer Focus
Praise the Lord for this move that will strengthen Israel's position in the world market and boost the economy.
Scripture
"For His eyes are on the ways of man, and He sees all his steps. There is no darkness nor shadow of death where the workers of iniquity may hide themselves" (Job 34:21-22).
9. Intel Invests $2.7 Billion in Its Israeli Chip FacilityIn an unstable business environment, where US companies are scaling back and weathering bad times, Intel has made a surprising business move. The chipmaker announced in January that it will invest US $2.7 billion in its Israeli plant in southern Israel, which will produce next-generation 22-nanometer chips.
It is expected that 22-nanometer technology will make our computers faster, smaller, and lighter. Not willing to elaborate on what exactly this will mean for our everyday lives, Intel Israel's spokesman Koby Bahar tells ISRAEL21c that "it will be the most advanced technology" available.
The investment is earmarked for upgrading the technology, and not for enlarging the existing fabrication plant, he stresses. Bahar notes that Intel has also made new investments in the United States and has spent US $500 million to reopen a facility in Ireland.
Adding Israel to its investment plans just makes business sense. "Intel decided to invest here because it's worthwhile," he says. "Because we have a good record for Israel and Intel." US tech trends business magazine Fast Company provides another angle on this development: "The move reduces Intel's exposure to the vagaries of Far East economies and risk of earthquake interference with production."
The employees at Intel Israel, under the supervision of general manager Maxine Fassberg, were reportedly very happy about the news. A strong year for Intel bodes well for them too, with each of the 7,057 employees earning a bonus of 3.2 months' salary for their work in 2010-a year in which Intel's fourth-quarter earnings grew by 8% from the previous year to US $11.5 billion, and net profit grew by 167% to US $11.7 billion.
According to news reports, each employee will earn at least a $10,000 bonus, on top of a pay raise. In more good news, Intel Israel expects to hire an additional 1,000 employees over the next year. Intel Israel, operating since 1974, was the company's first development center outside the United States.
(Excerpts of an article by Karin Kloosterman, Israel21c, February 6, 2011)
Prayer Focus
Praise the Lord for this move that will strengthen Israel's position in the world market and boost the economy.
Scripture
"The blessing of the LORD makes one rich, and He adds no sorrow with it" (Proverbs 10:22).
Note: All Scripture is taken from the New King James Version, unless otherwise noted.
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