JERUSALEM, Nov 9 (Reuters) – Israeli mobile operator Partner Communications (PTNR.TA: Quote, Profile, Research, Stock Buzz) outlined cost-saving plans on Tuesday as the sector faces a sharp drop in revenue from cuts in lucrative interconnect fees being imposed by the government.

“In our core cellular business, we are … formulating a strategic plan to mitigate the impact of the reduction of interconnect tariffs,” Chief Executive Officer Yacov Gelbard said.

“The measures Partner may take include, among others, cost cutting, operational efficiency improvements and repackaging of our product offerings.”

Partner (PTNR.O: Quote, Profile, Research, Stock Buzz) gave no further details of cost-saving measures, which it set out as it reported a 17.5 percent rise in quarterly net profit on a rise in its subscriber base and higher revenue from data and content.

Ori Licht, an analyst at IBI Investment House, said the results were good but were not the key focus as investors were awaiting the impact from the Communication Ministry’s demand that operators slash by nearly 80 percent the rate they charge each other to connect calls.

In the first phase beginning in 2011, interconnect fees will fall to 0.0687 shekels from 0.25. [ID:nLDE6811GO]

Partner, which has a 32 percent market share, operates under the Orange brand name in a market where competition will also intensify next year with the entry of a number of mobile virtual network operators (MVNOs).

JERUSALEM, Nov 2 (Reuters) – Bezeq Israel Telecom (BEZQ.TA: Quote, Profile, Research, Stock Buzz), Israel’s largest telecoms group, reaffirmed its full-year outlook when posting flat third-quarter net profit that was at the low end of forecasts.

Bezeq said on Tuesday it still expected 2010 revenue and net profit from continuing operations and EBITDA would be in line with or slightly higher than last year’s levels, adding gross capital expenditure would be close to the 2009 level.

Third-quarter net profit was flat at 588 million shekels ($162 million), excluding a 1.5 billion one-time gain in 2009 when the company deconsolidated digital satellite TV unit YES.

Revenue rose 3.7 percent to 3.03 billion shekels.

Bezeq was forecast to earn, on average, 620 million shekels in a Reuters poll in which estimates were in a 574-670 million range. Revenue was seen at 2.99 billion shekels.

“With the stock having rallied strongly into results, there may be some profit-taking here,” Citi analyst Michael Klahr said in a note.

Bezeq’s shares were down 0.4 percent at 9.77 shekels in afternoon trade in a marginally higher market.

JERUSALEM, Nov 1 (Reuters) – Zimbabwe plans to resume selling diamonds from its controversial Marange fields within days, saying it fully meets the standards required by the body that regulates trade in conflict diamonds.

Obert Moses Mpofu, Zimbabwe’s minister of mines and mine development, said a report that will be unveiled at this week’s Kimberley Process meeting in Israel shows the African country should no longer be subject to industry sanctions.

“We have done everything in our power to meet the minimum standards of the Kimberley Process certification scheme,” Mpofu told Reuters on the sidelines of the four-day meeting in Jerusalem that began on Monday.

“This puts us in a position to resume exports without sanctions. We will start selling diamonds again immediately after the meeting,” he said.

Mpofu said Zimbabwe, in which 30 percent of the economy comes from minerals, has a diamond stockpile of about 4.5 million carats that are due for export.

“We can’t continue to hold them with no reason,” he said.

In June, Zimbabwe’s government agreed that diamonds from Marange would only be sold under the Kimberley Process — a certification scheme aimed at preventing the diamond trade from financing violence.

JERUSALEM, Oct 25 (Reuters) – The Bank of Israel left its key short-term lending rate ILINR=ECI at 2 percent as expected on Monday and issued new directives for banks in an attempt to deflate a housing bubble as real estate prices continue to soar.

In the face of political criticism, the central bank has raised rates six times by 1.5 percentage points since August 2009 to try and cool the housing market and keep inflation within a government target of 1 to 3 percent.

But housing prices have jumped some 10 percent since the beginning of 2010 and 19 percent the past 12 months, the Bank of Israel said.

In a statement accompanying its interest rate decision, the central bank ordered banks to increase their capital provision for floating interest rate loans in which the loan represents more than 60 percent of the value of the property, effective on Tuesday.

“The new directives were formulated against the background of persistent developments in the housing market — increases in house prices over the past few years and the growth in housing credit that exceed increases in average household income,” the Bank of Israel said.

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JERUSALEM (Reuters) – U.S. stocks are poised to continue rallying through next March, although Wall Street should ease somewhat following mid-term elections next week, Citigroup’s chief U.S. equity strategist said on Monday.

“Near term, the market looks good through the first quarter of 2011,” Tobias Levkovich said in an interview with Reuters.

U.S. stocks gained for the third straight week last week, with the Dow Jones industrial average .DJI reaching 11,132.56 and the Standard & Poor’s 500 Index .SPX hitting 1,183.08.

Levkovich sees the Dow Jones at 11,150 and the S&P 500 at 1,175 by the end of 2010 — rising to 12,200 and 1,300, respectively, in 2011.

More than likely, stocks will slip following elections next week, no matter what the outcome brings, he said.

Along with anticipation of further easing measures by the Federal Reserve to stimulate the struggling U.S. economy, the market’s recent rally has been fueled by expectations that Republicans will win the House — a view investors see as positive since that would likely indicate a more pro-business stance in Washington.

Also, “If Republicans take the House, there won’t be increased spending programmes to blow up the deficit,” Levkovich said during a trip to Israel. “If that doesn’t happen (and Democrats retain control), markets may take that badly.”

JERUSALEM (Reuters) – China National Chemical Corp is in talks to buy control of MA Industries (MAIN.TA: Quote, Profile, Research, Stock Buzz), in a deal parent group Koor Industries (KOR.TA: Quote, Profile, Research, Stock Buzz) said would value the world’s No.7 agrichemicals maker at $2.7 billion.

A hungry China is looking for opportunities to grow in the global agricultural chemicals market by buying up production and distribution capabilities — areas that would cost a lot of money and take time to be developed domestically.

ChemChina and Sinochem (600500.SS: Quote, Profile, Research, Stock Buzz), both state run companies, have each made failed bids for Australian farm chemicals group Nufarm (NUF.AX: Quote, Profile, Research, Stock Buzz).

“It’s no secret that Chinese agrochemicals producers are interested in acquiring distribution activities and … MA presents a natural target given its wide range of registrations,” said UBS analyst Roni Biron.

China also has its eye on the potash industry as it tries to outdo BHP Billiton’s (BHP.AX: Quote, Profile, Research, Stock Buzz) $39 billion bid for Canada’s Potash Corp (POT.TO: Quote, Profile, Research, Stock Buzz). Sinochem has approached Indian miner NMDC (NMDC.BO: Quote, Profile, Research, Stock Buzz) for a joint bid to buy Potash Corp, according to a report.

Koor, which also owns 3.24 percent of Credit Suisse (CSGN.VX: Quote, Profile, Research, Stock Buzz), said on Monday the two sides were discussing ChemChina taking 70 percent of MA, including 17 percent purchased from Koor, which would retain 30 percent.

ChemChina would buy all of the shares publically traded and delist MA from the Tel Aviv Stock Exchange, Koor said. here

JERUSALEM, Oct 11 (Reuters) – China National Chemical Corp

(ChemChina) is in talks to acquire control of MA Industries (MAIN.TA: Quote, Profile, Research) in a deal that would value the Israel agrochemicals maker at $2.7 billion.

MA’s parent company Koor Industries (KOR.TA: Quote, Profile, Research) said on Monday the two sides were discussing ChemChina taking 70 percent of MA, including 17 percent purchased from Koors, which would retain the 30 percent, Koor said. Based on Koor’s valuation of the company, the 17 percent was valued at $462 million.

Koor currently owns 47 percent of Makhteshim Agan Industries, which makes herbicides, fungicides and insecticides, while 47.75 percent is traded on the Tel Aviv Stock Exchange

(TASE).

Shares in MA, which competes with Monsanto (MON.N: Quote, Profile, Research), Bayer BAYG.DE and Syngenta (SYNN.VX: Quote, Profile, Research), were up 27.5 percent at 1246 GMT, after being halted for two hours pending the announcement. Koor’s shares were up 9.3 percent.

Trading in the shares was heavy. By late afternoon, turnover was about 400 million shekels ($111 million) compared with total market turnover of 1.8 billion.

JERUSALEM, Oct 4 (Reuters) – Intel Corp (INTC.O: Quote, Profile, Research, Stock Buzz) will invest 10 billion shekels ($2.75 billion) between 2011 and 2018 to upgrade its main chip plant in Israel, the government said on Monday.

Israel will provide a grant of up to 741 million shekels to help Intel, the world’s No. 1 chipmaker, expand its plant in the southern city of Kiryat Gat, the finance and industry and trade ministries said in a statement.

An Intel spokesman confirmed the upgrade. Intel, one of Israel’s largest exporters, opened its $3.5 billion Fab 28 chip plant two years ago and makes processors with 45-nanometre circuitry.

Intel this year said it would seek a grant from Israel to expand the plant to produce smaller, 22-nanometre circuits.

“We are talking about a significant step in the state supporting industry,” the ministries statement said, adding the government saw “great importance in the co-operation between Intel and Israel”.

“In discussions, Intel representatives committed in the name of the parent company to make every effort so that Intel’s next investment in upgrading technology will also be in Israel,” it said.

JOB CREATION

JERUSALEM, Sept 16 (Reuters) – An Israeli start-up has launched a system that aims to make mobile computing easier by letting users type on invisible keys instead of a keyboard that typically takes up much of the screen.

SnapKeys calls its technology the “keyless keyboard” and has forged a deal with Philips Electronics (PHG.AS: Quote, Profile, Research, Stock Buzz) (PHG.N: Quote, Profile, Research, Stock Buzz) to market the product, company officials said.

SnapKeys and Philips will split revenue 50-50.

“There is a fundamental problem in entering data on mobile devices,” SnapKeys Chief Executive Benjamin Ghassabian told Reuters. “Keyboards were meant for fixed devices, not mobile. And screens are not supposed to be your input device; they are supposed to be output.”

He said the keyless keyboard was 10 years in the making.

The sucess of Apple’s (AAPL.O: Quote, Profile, Research, Stock Buzz) iPad — which Ghassabian says is more entertainment than computer — shows that people want more portable devices. Around 40 companies seek to market tablet computers, he said.

“The market is moving towards mobile computers — that’s why tablets are coming out,” Ghassabian said.

JERUSALEM, Sept 2 (Reuters) – Israel’s telecom regulator on Thursday ordered mobile phone operators to cut fees they charge each other to connect calls by nearly 80 percent, a move the companies say will hurt profits and revenue.

Despite months of pressure by mobile firms to abandon its plan, Communications Minister Moshe Kahlon said interconnect fees will drop to 0.0687 shekels a minute at the start of 2011 from 0.25 shekels.

Fees will decline further to 0.055 shekels at the start of 2014. Fees on text messaging will also fall sharply.

The cuts to so-called mobile termination rates could have been deeper since the ministry had initially said it planned to reduce them to as low as 0.0414 shekels. Companies had lobbied against the plan, arguing such fees in Europe were higher.

“Reducing connect fees will save the public about a billion shekels a year, significantly lower the price of a call from landline to mobile phones and increase competition that will allow the entry of new cellular companies already in the coming months,” Kahlon said in a statement.

Last month Israel’s three-largest mobile phone operators – Cellcom (CEL.TA: Quote, Profile, Research, Stock Buzz), Partner (PTNR.TA: Quote, Profile, Research, Stock Buzz) and Bezeq (BEZQ.TA: Quote, Profile, Research, Stock Buzz) unit Pelephone — reported second-quarter profit gains of 1.7 percent to 15 percent due to higher revenues.

Deutsche Bank analyst Richard Gussow doubted the cuts would impact companies’ bottom lines, saying they will find ways to make up the lost revenue by raising rates and cutting costs.