Defying Israeli restrictions, Palestinians renovate and rededicate schools in occupied East Jerusalem. Egypt¹s intelligence chief arrives in Israel. Israeli soldiers shoot a mentally disabled Palestinian in Gaza. PLO officials say dissolving the PA is an option. Jewish-Arab relations in Israel hit a new low. Xinhua interviews Nabil Shaath. Israeli tour guides once again are operating in Palestinian-controlled areas. Gaza children work to support their families. Ha¹aretz looks at how the GOP win in the House will impact Middle East policies, though the State Department insists there will be no change. Yossi Sarid says Israel has no answer to PM Fayyad¹s moderate policies. The UK Foreign Secretary will break protocol and meet Palestinian leaders in Jerusalem. An Israeli town moves to restrict home sales to Palestinians. DM Barak says negotiations will restart after the US elections. Yonatan Preminger says Israel does not want peace. Israel¹s outgoing military intelligence chief says its next wars will be more difficult. The Independent profiles FM Lieberman.

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