The 10-Point: the Israeli Election, Fed Meeting, TV Business Landscape and More
Bibi Bounces Back
Against the odds, Israeli Prime Minister Benjamin Netanyahu scored a remarkable and decisive victory over his main competitor in yesterday’s elections. Our story explores the crucial issues that were raised during the election and considers the implications of the outcome. We note that the race was marked by Mr. Netanyahu’s last-minute reversal of support for a Palestinian state as he hammered away on security issues in the final hours of the campaign. Mr. Netanyahu’s Likud party was trailing its main rival, the Zionist Union, in the final polls and even the exit polls suggested the race was a tie, but he wound up with a clear advantage. He will, however, need the support of smaller parties to form a ruling coalition, though he appears in a strong position to receive it. We also look at what the result could mean for U.S.-Israeli relations. Israel’s government will have a significant impact on U.S. President Barack Obama’s top foreign-policy goal—a nuclear agreement with Iran—and shape the outcome of any future attempts at Israeli-Palestinian peace talks. And we find that an upstart party led by a former ally of Mr. Netanyahu is poised to be the kingmaker in forming the next Israeli government. Follow our live stream for updates. (Pictured above: Mr. Netanyahu and his wife Sara wave to supporters after exit poll figures in Israel’s parliamentary elections late on Tuesday.)
At Any Rate
After years of reassuring the public that interest rates would stay low, the U.S. Federal Reserve is about to create some uncertainty. Its new message to markets: no more promises. Our story looks at how a move to less-clear-cut interest-rate guidance will be a test for investors who could get unnerved by the lack of clarity. Fed officials have signaled that they want to drop a line in their policy statement pledging to be “patient” before deciding to raise rates. Right now, stock-market volatility is relatively subdued, though measures of short-term interest-rate and currency volatility have picked up—a potential warning sign of tumult to come. We also consider how a recent downbeat shift in economic data complicates matters for Fed policy makers, who want to be convinced the economy is sound before boosting rates. Be sure to watch our coverage as the Fed’s policy-making committee issues its statement and new economic projections today at 2 p.m. ET, followed by Chairwoman Janet Yellen’s news conference at 2:30 p.m. Meanwhile, here are a few things to keep an eye on.
Streaming In
The media industry is sprinting toward an Internet-TV future. Our story analyzes how the swift changes are giving consumers an array of confusing options and forcing entertainment giants to confront sober realities. Yesterday we described how Apple is working on an Internet-TV service with some 25 channels, which is expected to be priced between $25 and $35 a month. Dish Network and Sony are pitching their own online-TV bundles, while a host of TV companies, including HBO, NBCUniversal, Nickelodeon’s Noggin and CBS, are in the mix with stand-alone streaming offerings. Media companies may finally be allowing Apple to achieve its goal of launching a TV service even if it means hurting traditional cable providers, writes our Heard on the Street reporter Miriam Gottfried. Meanwhile, we look at how Lions Gate Entertainment is seeking financial backing from a major Chinese entertainment company to distribute and advertise its films in China’s tightly restricted market.
Food for Thought
Can organic food go to the mass market and still remain virtuous? The answer to this question has become crucial in the food industry. Our story looks at how more companies are moving to please customers who want to eat healthily. Food giants such as Coca-Cola, General Mills and Kellogg are looking to the smaller food brands they have purchased such as Honest Tea, Annie’s and Kashi to drive up sales to health-minded shoppers. We note, however, that any perceived misstep can be costly. For example, Kashi consumers took to social media in recent years to complain that some of its cereals are made with GMO ingredients or aren’t organic—a bashing that eventually contributed to a sales slump. And speaking of a sales slump, we report that the maker of Gourmet Dining-branded frozen meals has filed for bankruptcy protection while looking for a buyer.
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NUMBER OF THE DAY
$800 million
The estimated amount that Citigroup and Barclays are expected to pay as early as this week in a combined settlement with investors who say the banks manipulated foreign-exchange rates.
QUOTE OF THE DAY
‘It’s not a magic bullet... If your company is in trouble and there’s a raider, it’s not clear to me that you can use this to fob them off.’
—Rory Millson, a lawyer at Cravath, Swaine & Moore, on the use of tenure voting—an old treatment whereby investors who hold their shares for a set period of time receive additional votes—to counter cases of raging corporate activism.
TODAY’S QUESTION
Going back to our story above, what are your thoughts on the Israeli election? Send your comments, which we may edit before publication, to10point@wsj.com. Please include your name and location.
—Compiled by Khadeeja Safdar
READER RESPONSE
On yesterday’s question about the potential impact of a nuclear deal with Iran on the oil market, Bob Blanchette of Oklahoma commented: “It is impossible to say what effect it will have on oil. The deal is being hidden from the public. If it ends up as an executive order then it can be changed in 2017. It needs Congressional approval and right now that seems unlikely. Our State Department is weaving a tangled web with relationships in the Middle East. Iran has been a bad apple since at least 1979.” Chris Aldrich wrote from Virginia: “The easing of oil export sanctions on Iran will cause another drop in oil prices in the near term. There should be no impact in the medium to long term because for oil to get back to $100 a barrel there will need to be a concerted effort by the U.S. and OPEC to curtail output to match the world demand. There is simply too much supply for the current demand, even with the expectation of additional barrels to the market by Iran.”
This daily briefing is named “The 10-Point” after the nickname conferred by the editors of The Wall Street Journal on the lead column of the legendary “What’s News” digest of top stories. Technically, “10-point” referred to the size of the typeface. The type is smaller now but the name lives on.
Photo: Agence France-Presse/Getty Images.