(Bloomberg) — Israel has three weeks to stave off an unprecedented third election after former military chief Benny Gantz failed to muster enough support in parliament to form a government and dislodge legally embattled Prime Minister Benjamin Netanyahu. The shekel remain little changed and one-year interest rate swaps were unchanged — a sign that investors don’t expect the political stalemate to impact borrowing costs. Netanyahu dismissed Gantz’s allegation that he was to blame for the impasse and called on him on Thursday to renew negotiations. Although Netanyahu denies wrongdoing, he’s angling to change Israeli law to grant sitting prime ministers immunity from prosecution. His other alternative — forming a minority government — was shot down by political kingmaker Avigdor Liberman, whose party he would have needed to get there.

Source: National Post November 21, 2019 13:41 UTC