* Olmert reportedly offers 98.1% of West Bank to Palestinians Prime Minister Ehud Olmert has discussed with the Palestinians transferring to them 98.1 percent of the West Bank.

* US drones bring fear and firepower to Qaeda war in Pakistan Two air-to-ground missiles ripped through the sky before smashing into the house where a Taliban leader with close links to Al-Qaeda chief Osama bin Laden was thought to be hiding.

* Frantic day on Wall Street as banks teeter In one of the most dramatic days in Wall Street’s history, Merrill Lynch agreed to sell itself to Bank of America for roughly $50 billion to avert a deepening financial crisis.

* Russia stands by Georgia actions Russia’s foreign minister has said on a visit to the breakaway Georgian region of Abkhazia that Moscow’s actions were the only way to guarantee security.

* Two-state solution should be dead “I realized that, to my frustration, we were giving up land for war and terror and incitement.”

* Pope slams anti-Semitism in meeting with French Jews Pope Benedict XVI slammed anti-Semitism as theologically unjustifiable and tantamount to being “anti-Christian” in a meeting with French-Jewish leaders in Paris.

* Saudi cleric wants death for TV “sorcerers” A senior Saudi cleric has said purveyors of horoscopes on Arab television should face the death penalty.

* Voice of Israel Aims at Settlers Taking Law in Their Hands Voice of Israel government radio, which officially has a mandate to be non-partisan, launched a broadside attack Sunday against Jews in Judea and Samaria who attack Arabs following terrorist attacks.

* Olmert: “Forget Greater Israel” “The notion of a Greater Israel no longer exists, and anyone who still believes in it is deluding themselves,” said Ehud Olmert, in what is likely to be his last cabinet meeting as Prime Minister.

* Ethiopian community fights for aliyah Israeli Ethiopian representatives claim government decision to allow a thousand more Falashmura to come to Israel insufficient, as State is still “turning its back on 7,000 Jews, tearing families apart.”