Business Briefs – January 28, 2019

Intel to Make Unprecedented Investment in Kiryat Gat

YERUSHALAYIM (Hamodia) – Finance Minister Moshe Kahlon has confirmed a report in Globes on Monday that Intel is planning to invest 40 billion shekels ($11 billion) in constructing a new plant in Kiryat Gat, and has requested a grant from the state of 10 percent of the investment.

Kahlon revealed in a tweet on Monday night that the project has been in negotiation for the past year, and could bring thousands of jobs to southern Israel. It promises to be the tech giant’s largest-ever investment in the country.

Previously, it was reported that Intel’s global management had not yet made a final decision about the investment in Israel. It said that the plant will probably be built in Ireland, the U.S. or Israel.

But Kahlon said in his tweet that “Intel informed us this evening of the decision to invest 40 billion shekels.”

The Ministry of Finance chief economist unit has prepared an opinion stating that the investment fulfills the requirements for assistance from the state, Globes said, citing sources.

For Young Investors, Jumpy Market Presents First Big Test

NEW YORK (AP) – After basking in the longest bull market on record, young investors got their first taste of a severe downturn at the end of last year, when the S&P 500 plunged nearly 20 percent. The fear was that these inexperienced investors would panic, sell their stocks and lock in the losses. But many millennials defied that prediction. They not only held steady but saw the declines as an opportunity to buy more stocks at lower prices.

Fed Likely to Send Reassuring Note of Patience on Rate Hikes

WASHINGTON (AP) – Chairman Jerome Powell is likely to refer this week to a word he’s been using to describe the Federal Reserve’s latest approach to interest rates: “Patient.” With pressures on the economy rising, the Powell Fed has signaled that it’s in no hurry to resume raising rates after having done so four times in 2018. And with inflation remaining tame, the rationale to tighten credit has become less compelling.

Treasury Lifts Sanctions Against 3 Russian Companies

WASHINGTON (AP) – The Treasury Department is lifting sanctions on three companies connected to Russian oligarch Oleg Deripaska. The move comes despite an effort in Congress to block the action with many lawmakers concerned the Trump administration is not being tough enough on Russian President Vladimir Putin and his allies.

Presidential Standoff May Worsen Venezuelans’ Misery

CARACAS, Venezuela (AP) – The Trump administration’s recognition of opposition leader Juan Guaido as Venezuela’s interim president is being touted by the U.S. as the only way to restore the country’s democracy. But the high-risk strategy, if it fails to force Nicolas Maduro from power, could end up ushering in an economic catastrophe as the socialist government is blocked from accessing overseas oil revenues at a time Venezuelans are already suffering from widespread shortages and hyperinflation.

Shutdown Halted Crash Probes, Could Cost Critical Evidence

DETROIT (AP) – The National Transportation Safety Board says the partial government shutdown stopped it from sending investigators to 22 accidents involving 30 deaths. The agency says it will now begin investigations, but evidence may have been lost that could prevent finding a cause.

Nissan Says It’s ‘Cooperating Fully’ With Inquiry By U.S. SEC

TOKYO (AP) – Nissan Motor Co. says it has received an inquiry from the U.S. Securities and Exchange Commission. The company said in a brief statement Monday that it was “cooperating fully” with the SEC. It gave no further details. Nissan’s ex-chairman Carlos Ghosn is facing charges of falsifying financial statements and breach of trust in Japan.