Business and Finance news

The Bank of Israel may lower the benchmark lending rate for a second time this month as global financial turmoil imperils domestic economic growth.

Governor Stanley Fischer will cut the rate to 3.5 percent, according to eight of 14 economists surveyed by Bloomberg. Five forecast a half-point reduction and one no change. The decision will be announced in Jerusalem at 6:30 p.m. tomorrow.

Fischer unexpectedly reduced the rate on Oct. 7 as the benchmark stock index fell to a two-year low because of the global credit crisis. The bank said slower economic growth will help push down the inflation rate, which has exceeded the government's target range since December.

“If they cut a half point in an emergency meeting, it means they are keen on bringing down rates quickly in a short period of time,'' Reinhard Cluse, a senior economist at UBS AG in London, said. “It's clear that the Bank of Israel is more focused on growth than on inflation.''

The cut marked a turnaround for Fischer, who had raised the base rate four times earlier in the year in an effort to slow inflation. Falling stock and bond prices and easing world economic growth led Fischer to shift emphasis to aiding growth.

The economy will probably grow 4.5 percent in 2008, the slowest pace since 2003, the Central Bureau of Statistics said on Oct. 22. The Bank of Israel estimates growth at 2.5 percent in the second half and sees a 2.7 percent expansion in 2009.

Companies, Markets

In corporate news, Check Point Software Technologies Ltd nevada payday loans., the world's second-largest network-security company, may say profit grew 2 percent when it reports third-quarter results this week as higher taxes and costs offset sales growth.

Net income excluding stock-compensation costs and one-time items, will be $93.7 million, or 43 cents a share, according to the median estimate of 10 analysts polled by Bloomberg, up from $91.9 million, or 41 cents, the same time in 2007. Revenue will be about $201 million, up from $184 million, according to the median forecast of nine analysts.

Last week, the benchmark 6.5 percent Shahar bond due in January 2016 fell 0.50, with the yield rising 10 basis points to 5.53 percent. The shekel weakened 1.8 percent as of Oct. 23 to 3.7950 per dollar from 3.7270 a week earlier.

The Tel Aviv Stock Exchange's benchmark TA-25 Index advanced 1.9 percent to 765.54. Nice Systems Ltd., a maker of digital recording technology, led the gainers, adding 13.3 percent, while Elbit Systems Ltd., Israel's biggest non-government defense company, followed on an 11.3 percent rise.

Foreign Minister Tzipi Livni said on Oct. 23 she will announce today whether she expects to form a new government and take over as prime minister or request that President Shimon Peres call early elections.

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