City AM reports on a study by Mastercard and Tufts University that concludes the UK and Israel are part of a “digital elite” that are “both highly digitally evolved and advancing quickly”. The report states that Israel and the others are “powering ahead of their rivals thanks to a complex formula of infrastructure, incubating start-ups, a cultural commitment to innovation, and government support”.

The FT, Telegraph and the Guardian report on the surprise election of the political outsider Avi Gabbay to the Labour leadership, and compare his success to the anti-establishment sentiment that swept Donald Trump to power.  Gabbay said after his election on Tuesday that the race to unseat Mr Netanyahu “begins today”. The Times notes that prior to his membership of the Labour party Gabbay was a former Environment Minister in the Netanyahu government and founding member of the centre-right Kulanu party.

The i reports that Israel saw a record number of tourists visiting in the first half of 2017, a 26 per cent increase from the same period last year. The biggest rise came from Russian tourists.

Israel’s print media continues to be dominated by the “Case 3000” submarine affair and the impact of the election of Avi Gabbay as leader of the Labour party, whilst the broadcast media breaks news this morning of a clash between IDF troops and Palestinian gunmen in Jenin.

Yediot Ahronot’s main headline is the arrest of former head of the Israeli Navy, Maj. Gen. (res.) Eliezer Marom, who was questioned by police for 12 hours yesterday.  The paper reports on details of the case, including the allegation that Thyssen-Krupp’s Israeli representative, Miki Ganor, bribed Marom to advance the sale of the vessels.

Times of Israel reports that the name of PM Netanyahu’s attorney and cousin, David Shimron, has finally been cleared by police for publication as one of the individuals detained for questioning. Shimron is reported to have acted as Ganor’s lawyer.

Maariv focuses  on the surge in support for Labour under Avi Gabbay, and two separate polls broadcast on Channel 2 and Channel 10 news last night which showed Labour overtaking Yesh Atid, but without putting a dent in the polling numbers of PM Netanyahu’s Likud party.

The reports from Jenin broadcast on Kan Radio News and Army Radio News indicate that an IDF special forces unit responded with shots when, according to the IDF, they had explosive charges thrown at them during an arrest operation in Jenin, with Palestinians reporting two Palestinian fatalities.

Haaretz’s front page headlines focus elsewhere. One story reports that a new draft of a “Jewish state bill” currently being considered by the ministerial committee would place the Jewish character of the state above its democratic character. Also featured on its front page is a report that the Judge Advocate General of the IDF would like to launch an inquiry into the events around “Black Friday,” 1 August 2014, when Israel shelled the Gaza neighbourhood of Rafah following the abduction of one of its soldiers during Operation Protective Edge, but is facing resistance from PM Netanyahu.

The Jerusalem Post reports on its front page a new UN report into the growing humanitarian crisis in the Gaza Strip including irreversible damage to its water supplies. The paper also features a report that US Ambassador to Israel David Friedman will participate in White House efforts to kick-start the Israeli-Palestinian peace process, and separately on a meeting between PM Netanyahu and Irish Foreign Minister Simon Coveney at which Netanyahu challenged his interlocutor over Irish funding for left wing Israeli NGOs.