Tel Aviv Stocks Plunge and Shekel Weakens Following Election Results
Tel Aviv stocks tumbled and the shekel weakened following election results. Meanwhile, top economists criticized crypto evasion plans, a Tel Aviv court ruled on nightlife seating, Slovakia faced demographic strains, and three brothers received 30-year sentences in New York.
The Tel Aviv Stock Exchange suffered sharp declines following the election results, reversing the gains recorded just a day prior to the vote. The Tel Aviv 90 index plunged 4.6%, the Tel Aviv 125 dropped 2.4%, and the Tel Aviv 35 fell 1.8%, with heavy selling pressure concentrated in the real estate, insurance, and banking sectors. Concurrently, the shekel weakened significantly against major foreign currencies. The dollar climbed to approximately 3.13 shekels, while the euro rose to about 3.47 shekels.
In a separate development, over 100 prominent economists, business leaders, and former public sector officials published a sharp letter criticizing a proposal floated by Prime Minister Benjamin Netanyahu regarding the potential use of cryptocurrency if banking sanctions are imposed on Israel. The signatories, including Nobel laureate in economics Prof. Joel Mokyr, Israel Prize laureate Prof. Joel Mokyr, former Bank of Israel Governor Jacob Frenkel, and four former directors-general of the Ministry of Finance, warned that banking sanctions could severely disrupt international economic activities, including credit card usage, e-commerce purchases on platforms like Amazon and AliExpress, foreign investments, exports, and money transfers. They stressed that cryptocurrency cannot replace a functioning international banking system and urged proactive measures to prevent sanctions rather than preparing to bypass them.
Meanwhile, an administrative court in Tel Aviv issued a dramatic ruling canceling municipal permits for placing outdoor seating on roads and sidewalks in a popular nightlife section of Nahalat Binyamin. Judge Limor Bibi ruled that the permits effectively converted a designated roadway into a commercial gathering zone without proper statutory planning procedures and public participation. The ruling does not shut down nightlife entirely, as evening vehicle bans and business operating licenses remain valid, but outdoor seating permits will expire within six months or on their designated date.
Demographic pressures are mounting abroad as Slovakia enters a deep demographic crisis, with annual births dropping to a historic low of just over 42,000 in 2025, while the population aged 65 and older reached 1.03 million, accounting for 19% of the total population. Projections indicate that the elderly share could soar to 30% by 2050. Slovakia's budget is facing severe strains, with pension expenditures projected to hit 13.7 billion euros by 2027, compounded by an acute housing crisis in Bratislava where average annual wages cover only 6.8 square meters of residential property.
Finally, a Manhattan federal court sentenced three Israeli-American real estate magnate brothers—Tal Alexander and twins Oren and Alon—to 30 years in prison each for sex trafficking and related sexual offenses. Following a trial featuring testimony from 11 victims, prosecutors revealed that the brothers used their wealth and access to luxury properties to lure women to parties where they were drugged, assaulted, and raped. Prosecutors estimated that at least 70 women and girls were victimized over two decades.
