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Edition: U.S. Article Save Email Print Reprints Most Popular Most Shared UPDATE 1-Devaluation ups stakes in Venezuela election year 09 Jan 2010 Senate's Reid tells Obama he regrets racial remarks 9:57am EST CBS chief: Failed Leno/NBC experiment boosted CBS 09 Jan 2010 For some, 3D movies a pain in the head 09 Jan 2010 Malaysian Christians fearful as church attacks rise | Video 9:09am EST UPDATE 1-Devaluation ups stakes in Venezuela election year 09 Jan 2010 Malaysian Christians fearful as church attacks rise | Video 9:09am EST For some, 3D movies a pain in the head 09 Jan 2010 Senate's Reid tells Obama he regrets racial remarks 9:57am EST Yen reclaiming carry trade as U.S. bond yields rise 08 Jan 2010 Israel vows "powerful response" to Gaza attacks Allyn Fisher-Ilan JERUSALEM Sun Jan 10, 2010 8:10am EST Related News One dead in Israeli air raids on Gaza: medics Thu, Jan 7 2010 Israel signals tougher terms for prisoner swap talks Thu, Jan 7 2010 Israel launches air strikes in Gaza: Hamas Thu, Jan 7 2010 Egypt, Hamas exchange fire on Gaza frontier, 1 dead Wed, Jan 6 2010 Gaza militant killed in Israeli air strike Tue, Jan 5 2010 JERUSALEM (Reuters) - Prime Minister Benjamin Netanyahu vowed on Sunday to launch an "immediate and powerful response" to any rocket fire at Israel after days of increased tension along the border with Hamas-ruled Gaza. World Medics in Gaza reported two Palestinians were killed in cross-border fire on Sunday, but rescue workers found no remains at the site where explosions were heard in northern Gaza. An Israeli military spokesman denied any troops had operated there. Netanyahu told a weekly cabinet session 20 mortar bombs and rockets had been fired at Israel from the Hamas-ruled territory last week, adding: "I view this very seriously. The government's policy is clear, any shooting at our territory will receive an immediate and powerful response." Violence has risen along the Israeli-Gaza frontier in the past month, which could further complicate U.S.-backed diplomacy in the region, after a respite since a three-week Gaza war a year ago in which 1,400 Palestinians and 13 Israelis died. Three Palestinians were killed in a series of Israeli air strikes in Gaza on Thursday, including the first air raid in months to target a site inside Gaza City. Palestinians said the targets were sites belonging to other militant groups, not Hamas Islamists who seized the territory in 2002 and are seen as having reined in violence since the Israeli offensive last January. Israel also dropped leaflets warning Gaza's 1.5 million residents to avoid coming within 300 meters (yards) of the border fence with Israel citing security reasons. Netanyahu told his cabinet Israel had targeted factories where rockets were manufactured and tunnels along Gaza's border with Egypt, where he charged "Iran smuggles in missiles and rockets" into Gaza, naming an arch-foe Israel accuses of arming militants. Turning his attention to the occupied West Bank, where Western-backed Palestinian President Mahmoud Abbas' Fatah movement holds sway, Netanyahu demanded leaders there "stop incitement" that violated a U.S.-backed peace road map. He charged a public square had been named in the West Bank for a militant involved in a lethal 1978 bus attack in Israel, and that three other militants Israel killed after they gunned down a Jewish settler have been hailed as martyrs. "This is not the way to make peace," Netanyahu said. Abbas has refused to resume negotiations with Israel, stalled for a year, before a halt to Jewish settlement building in the West Bank which Palestinians see as an obstacle to achieving a two-state solution of their conflict with Israel. Abbas has rejected a limited, 10-month halt to settlement building announced by Israel in November as insufficient. (Additional reporting by Nidal al-Mughrabi; Editing by Janet Lawrence) World More from Reuters Bomber's betrayal shows spy challenge for West LONDON (Reuters) - The killing of CIA employees in Afghanistan by a suicide bomber lauded online as a militant James Bond suggests al Qaeda's south Asian allies have developed an unprecedented capacity to disrupt the West's spy efforts. Senate's Reid tells Obama he regrets racial remarks China's commodity imports soar in December Togo team to return from Africa soccer cup: captain | Video Tiger Woods must risk embarrassment and humiliation: Harmon Qatar economy grew 11 percent in 2009: deputy PM » More Top News Work & Life: The ministry of matchmaking? South Korea's health ministry plans a program to bring single public servants together in the hopes of fostering love among available bureaucrats. Full Article France to explore "Google tax" Slideshow: The worst jobs for 2010 Snowed-In Brits boost adultery website Lifestyle "Crack" for retailers? The all-important holiday shopping frenzy might actually be bad for business. Full Article Small business job growth stalls Video: Should VCs get tax breaks? Michigan hungry for startups small business © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Analyst Research Mobile Newsletters RSS Podcasts Widgets Your View Labs Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts.com Buyouts Europe: Buyouts Conferences: Venture Capital Journal ECVJ International Financing Review International Securitisation Report Project Finance International PEhub.com PE Week Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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