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FROM THIS EPISODE

There's more violence today in the Middle East as Israeli missiles hit the West Bank and Gaza in retaliation for this weekend's suicide bombings. Yasser Arafat condemned the Palestinian attacks and promised to round up the perpetrators. But Prime Minister Ariel Sharon called Israeli response just the beginning, declaring that the time has come to decide if Arafat can ever be a partner for peace or if he's an enemy of the Israeli state. As the region edges toward the brink of war, we consider the dwindling prospects for peace with the chief Palestinian negotiator, the Israeli foreign press advisor, and pollsters for both sides. We'll also get reaction from Washington.
  • Newsmaker: Consumer Spending Makes a Record Jump - America's consumer spending declined by 1.7 percent after September 11, but a record October increase of 2.9 percent more than made up the difference. Margaret Popper, associate economics editor for BusinessWeek, looks back at spending fluctuations, then forward to the prospects for employment and economic growth.
  • Reporter's Notebook: Japanese Crown Princess Has Baby Girl - Although Japan's Crown Princess Masako has given birth to a daughter, the latest member of the Imperial family may never be Japan's ceremonial head of state. Tato Takahami, former UC Berkeley professor turned freelance journalist and author, talks about the implications for history and gender politics in Japan.

BusinessWeek

Center for Strategic and International Studies

Israeli Government

Palestinian Authority

Palestinian Center for Policy and Survey Research

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