Lines In The Drifting Sand: The U.S. will not recognize a border created after a unilateral withdrawal from the West Bank as Israel's permanent border, senior Bush Administration officials said.

White Smoke: Negotiations between Kadima and Labor have led to an agreement on cabinet portfolios that could allow a new government to be named in approximately one week.

CONVERGENCE EMERGENCE: More details are emerging about Kadima's convergence plan. According to Ma'ariv, high-ranking government officials say that the convergence plan that Ehud Olmert presented will include the complete evacuation of over 60 settlements

SAVINGS & GROANS: Bank Hapoalim, Israel's largest bank, said it is severing ties with Palestinian banks after a legal review in the wake of the swearing-in of a Hamas-led government.