Netanyahu's Approval Rating Drops Amidst Israeli Election

PARAGRAPH 1 --- What happened: A poll by the Viterbi Center revealed that a majority of Israelis do not want Prime Minister Benjamin Netanyahu to run in the upcoming election, indicating a drop in his approval rating. This comes amidst growing discontent over President Trump's decision to end the U.S. military involvement in the Middle East, with 71% of Israelis believing Iran won the conflict. Hardline Israeli politicians, such as former Prime Minister Naftali Bennett, have criticized the Iran nuclear deal and called for Netanyahu's removal to pursue "real regime change."

PARAGRAPH 2 --- Market impact: The political instability and shifting public opinion in Israel could impact defense and technology sectors, as these are key areas of U.S.-Israel cooperation. Companies like Lockheed Martin, Boeing, and Intel, which have significant operations in Israel, may face headwinds due to potential changes in defense spending or trade policies. Additionally, Israeli tech companies like Check Point Software Technologies and Wix.com could see volatility in their stock prices due to uncertainty surrounding the election.

PARAGRAPH 3 --- What to watch next: The upcoming Israeli election on March 23 will be a key catalyst, as it will determine the political landscape and potentially Netanyahu's future as prime minister. Additionally, investors should monitor the U.S. administration's policy towards Iran and the Middle East, as any changes could further impact Israeli politics and markets. Lastly, earnings reports from defense and tech companies with significant Israeli exposure, such as Lockheed Martin (Q1 2021 on April 20) and Intel (Q1 2021 on April 22), will provide insights into how these companies are navigating the political uncertainty.