we have the deputy speaker of the israeli knesset and a member of the likud party. let's just explain, first of all, because there is a parliamentary system in israel, people won't necessarily go to the polls to vote for a prime minister, right? they are voting for a party. there are a lot of parties to choose from. >> in israel, you vote for a party, know a candidate. i believe that prime minister netanyahu will be the next prime minister and he will form the next coalition. but he will have to pay to the small parties. we are worried because we know we are winning the election. many people are voting for the small parties. so that would mean we valid to pay a lot of small parties to get the coalition and it will make a lot of challenges itch the prime minister gave a couple of interviews today in which he warned people about that. if you like me for prime minister, you are going to have to vote for my party. you can't assume by voting for the smaller parties that they will join a coalition with me and we can rule together. it seems to be -- it seems that the prime

peace talks with the palestinians a peace activist campaigning for a two state solution says the likud partyreelection will delay this prospect even further. finds himself leading a party that offering a very platform actually no platform at all but they have not presented a program a party program to address a lot of the issues that are concerning israeli citizens from the left and the right and are dividing them and when you think about the prospects for this government leading a policy of more settlement expansion and indeed even annexation of the occupied territories in the west bank i think that it would lead not only to a growing pressure in friction with the united states and president obama with the european union and with the palestinian population but it will also lead to a growing disappointment in these really public that. is still supporting and i believe will still support. its uphold its right to peace and security which can only be manifested and realized through the two state solution. now prime minister dmitri medvedev has slammed washington's move to sanction a number of r

the likud party ran on a single ballad. have lost support to this man. they appealed to the rising nationalism in israeli politics concentrated in jewish settlements in the occupied west bank. >> our goal is to unite the state of israel. >> says he will promote jewish values as well as easing the economic strain on families. another man of the moment is the former tv personality and is vying for enough votes for a possible coalition party. they are making the economy their main issue. shimon peres will decide whether to give binyamin netanyahu the first chance of forming a coalition. that is a process that took five weeks after the last election. let's talk about the situation after the election. it sounds like putting together a coalition will be tricky. >> it appears so. the last government all molested two years. then the labor party pulled out . in this case it might be even more complicated. binyamin netanyahu, if he is given the first nod, will have 28 days to form a coalition. then he has another 12 days. the question is whether some other party w

it didn't have any benefit for them-- >> the likud party, though, and the likud party making with avigdor lieberman-- cannot can be paint as some sort of moderate entity here. i mean, the likud list has gotten increasingly hard right. bebe ran a campaign that was to appeal to the right. yes, he gave a speech years ago where he opened the door for a palestinian state. but that was years ago, and he's almost been forgiven -- >> rose: it was, like three years ago. okay. >> he may-- let's be clear, when he had the broadbased government last gine, he made a speech where he said two things he had not said before. he said number one peace with the palestinians is not a favor we do the palestinians. it's in our strategic interest. number two he said we will not become a binational case, the one time he came out publicly not withstanding the attitude of the base of his party had been, and acknowledged there's a demographic issue here and you're going to have to deal with it. i do think in a strange way he became left to most of his own party. in is this election he became increasingly concern abou

his likud party and his nationalist coalition party israel betananu have led in the polls. party opposes peace talks with the palestinians. netanyahu resumed the building of jewish settlements in occupied territories two years ago. the construction breaches international law and contributed to a breakdown in the peace process. >>> the prime minister has devoted quite a bit of time urging the bank of japan to do something. what's he hoping for? >> the prime minister has been very adamant about getting japan out of deflation. he doesn't feel his administration can do that task alone. that's why he's asking for simultaneously monetary action. the policy makers are about to give abe what he's been pushing for the bank of japan officials will likely announce a 2% inflation target. the target is part of abe's plan to tackle inflation with bolder, monetary easing measures. board members will decide the policy together with economic revitalization member as the two-day meeting wraps up. the two sides are still discussing the precise wording of the statement. it will refer to a 2% i

most important for them now is to give the settlers what they want because the constituency of likud party of party is the far right and they're playing into their hands and unfortunately not in the hands of the general public interest but could these new city units be bashed on in the future like what happened to the settlements in gaza and you meet yes there is the center amount of thirteen but you know when we created this country when we established. four years ago there was even a greater level of uncertainty that we are not cheap on the table we are probing communities with fourth generation israelis that were born and we are here at this stage and for as long as the governments on this side of the settlement abate they're staying at least for now but a showdown is inevitable israel says that settlements are an issue to be discussed during negotiations but palestinians say they won't hold peace talks while israel builds on land they want for a future state policy r.t. tel aviv well the settlements issue would of course be one of the main decision drivers when israelis had to the poll

his likud party joined forces with the nationalist group yisreal beitenu. the jewish home part is gaining support. they obtained peace talks with palestinian. netanyahu allowed israelis to build settlements in occupied territories two years ago. their construction breaches international law and contributed to a breakdown in the peace process. >>> the state of relations between israelis and palestinians is just one factor behind the rise of political hardliners. nhk world reports from jerusalem. >> reporter: on a college campus in jerusalem, members of a peace group invited students to an event to discuss the palestinian issue. but they got little positive response. it's been 20 years since they signed the peace agreement. but in israel, the euphoria has since long died down. peace still seems a long way off. in a recent poll, only 31% of respondents answered that they expect peace to come in a few years. more and more israelis are losing belief in the peace process. and moving toward the right. among many campaign pollsters, the ones spanned out are ones li

the right-wing bloc led by the likud party won the highest number of seats. it will take about 30, down from the 42 it held before the vote. >> translator: thank you for giving me the chance to lead israel for a third time. we must form as large a coalition as possible. i've already started on this mission tonight. >> the centrist yeshitit or there is a future party, and a stra left labor party, have increased their seats. so did the ultra nationalist habite haihudi or jewish home party. it opposes peace talks with the palestinians. the outcome of israeli election often has an impact on the middle east as a whole. nhk world's akira sahaki watched the sam pain unfold in jerusalem. akira, what has changed in israel? >> well, prime minister netanyahu's ruling coalition remains the biggest bloc in the kanesset and this suggests its hardline policies have gained a certain degree of support despite the stalled peace talks with the palestinians. the jewish home party has made great strides has expected. it's increased its preelection roughly fourfold. the leader fla

the polls indicate that a right-wing bloc led by netanyahu's likud party will remain the largest camp in parliament. but it lost ground to an alliance of center-left parties. >> translator: thank you for giving me the chance to lead israel for the third time. our biggest challenge remains preventing iran from acquiring a nuclear weapon. >> centrist party yesh atid is likely to become the second largest parliamentary force. the center-left labor party is projected to come third. the ultranationalist habayi habayit hayudi looks to secure its number of seats. the party opposes peace talks with palestinians. centrist parties have performed better than expected. some voters may have been worried by the country's tilt to the right. netanyahu is expected to begin negotiations with other parties to form a coalition. but it won't be easy. the gap between the two blocs will be narrow. >>> japanese researchers have refashioned some of the building blocks of the human body. they used cells they can reprogram into any tissue or organ. for the first time they converted induced pluripotent stem cell

the right wing bloc, led by the likud party, won the highest number of seats. exit polls think it will take about 30, down from the 42 it held before the vote. >> translator: thank you for giving me the chance to lead israel for a third time. we must form as large a coalition as possible. i've already started on this mission tonight. >> the centrist party is a future party and the center left labor party have increased their seats. so did the ultranationalist party, jewish home party, it opposes peace talks with the palestinians. >>> the outcome of israeli elections often has an impact on the middle east as a whole. i spoke earlier with a akira saheki, who watched the campaign unfold in jerusalem. what has changed in israel? >> reporter: well, prime minister netanyahu's ruling coalition remains the biggest bloc, and his hard lifeline policies have agreed a certain amount of support, despite stalled peace talks with the palestinians. the ultranationalist jewish party has made great strides, as expected. it increased its pre-election three seats roughly fourfold.

hearing all these protections talking about more right wing voters well because it's clear that the likud party of leap of nothing you know which has been joined by lieberman will be the number one party with a larger show and that's showing that is the public seems to be more right wing but i think the vote is going to be widely split be between a number of parties which will present themselves in the center and often you know is going to have to rely on the center party center right center left in order to form a coalition the tend the trend of thinking is that not in your will not want to form a right wing radical the hardline coalition government based on the religious right and the ultra orthodox parties but he will seek to form a coalition with the more center parties this is a at least what the analysts are saying here in the people who follow netanyahu very closely he might be in a situation where he can't form a government with the center parties and he will have to rely on the right wing religious parties in the ultra-orthodox parties and then it will be a much more hardline governmen

parliamentary election this week but suffered a serious setback the results gave his right wing likud party the narrowest of victories with just thirty one out of one hundred twenty seats now and you know he will have to struggle to form a broad and stable coalition to govern israel could be a challenge is the right wing and orthodox religious parties one half the seats in the parliament and in this project the focus for netanyahu will be bread and butter issues facing his nation not foreign policy a columnist for israel's had its newspaper gideon levy says that the controversy over iran's nuclear program is unlikely to give him enough support. to tell you're always very devoted to this issue and he believes almost in a religious way that he's here to say the state of israel in the jewish people from the danger of iranian bomb but he will heavy. more difficult this time because at least on this topic he will find fewer partners who would support it because i think that this kind of adventure without minister of defense old barak who supported the then we'll look most probably in the coming

taking supporters away from him like this man who used to be a diehard supporter of netanyahu is likud party until these elections rolled around the likud is. a bus full of right wing members of knesset with a left wing person driving the bus. as far as being i mean. even though i am opposed to it. i would say most members of the likud obviously when a minute is for it the irony is that while the world sees netanyahu as a right wing leader at home he's losing face among supporters for not being focused enough this is part of the right wing campaign he's up against there are some things we all know will never happen the sopranos will never return for another season. growing our pro and a peace agreement with the palestinians will not happen promises like this have put bennett's jewish home party in food position it's poised to take more than twelve percent of parliamentary seats analysts say netanyahu while still expected to serve another term is running scared he's up his rhetoric i say in the most clear of terms the western wall is not occupied territory i don't care what the un says we wil

country's parliament for cash promising the return of prime minister benjamin netanyahu the right wing likud party leaving many voters apathetic and disillusioned artie's porous layer reports. the countdown has begun but instead of scanning the papers to brush up on who's saying what in the final hours before his radios head to the polls. is searching for an apartment the twenty eight year old is desperate to move out of his parents' home but times are tough and he blames the government right i'm not going to vote i see who are the candidates and there is no one standing who represents me or who can change the general mood in the country at that or the recent political justing that's all candidates move from one party to another in joost even more pessimism in people like musharraf who have lost trust in israeli politicians the union between bibi netanyahu and his foreign minister avigdor lieberman into biederman government the return of leave me former opposition leader back into the fray just a few months after announcing her time and only frustrated and already election where we public many isr

parliamentary election this week but suffered a serious setback the results gave his right wing likud party the narrowest of victories with just thirty one out of one hundred twenty seats now he will have to struggle to form a broad and stable coalition to govern israel that could be difficult as other right wing unorthodox religious parties one half the seats in the parliament meanwhile some analysts take all hopes on the us influencing israel not to launch a preemptive strike on iran's nuclear sites yet a tour of the online magazine palestine chronicle thinks that tehran's atomic program will be used by netanyahu to divert attention from domestic problems. see. that israelis are growing the becoming more aware of the deterring a deteriorating economy of their own country of the guard between the rich and poor of the with a state that is seems to be teetering towards the ultra orthodox at the expense of other classes and other sectors of israeli the society netanyahu might use that iran iran scenario in order for him to. distract perhaps from the problems that are soon to emerge to his new

country's parliamentary election this week but suffered a serious setback results gave his right wing likud party the narrowest of victories with just thirty one out of one hundred twenty seats now netanyahu will have to struggle to form a broad and stable coalition to govern israel could be the challenges of the right wing an orthodox religious parties one half the seats in the parliament a broad based government might be more in tune with the a bomb or ministrations agenda of holding off on any israeli attack on iran's controversial nuclear facilities the from me national iranian american council says brute force must give way to tough diplomacy. i don't see. a lot of interest in the white house right now to. push netanyahu on the issue of settlements and and on peace talks so i don't know that there's necessarily going to be the same friction points that sort of marked the beginning of obama's term and netanyahu his term last time i really see the only source of friction that you know might be pursued by both parties is this issue of iran and i think it's really it's a matter of will netanyahu

his likud party bloc shaved by voters asking for a focus on kitchen table issues.anyahu had this answer. >> ( translated ): the first challenge is and will continue to be preventing iran from having nuclear weapons. >> reporter: israelis should have expected nothing less, says channel 10 defense correspondent alon ben-david. >> netanyahu sees removing the iranian threat as his lifetime mission, as a historical mission; as if history has put him in this specific time and place to relieve the israeli people from the iranian nuclear threat. >> reporter: but that sense of mission drove a very public spat with president obama last fall over when iran's program had to be stopped before it became impervious to attack. netanyahu famously set the red- line for israel at the u.n. >> the red line should be drawn right here. >> reporter: mr. obama has pledged to prevent a nuclear- armed iran, but hasn't laid out a red line of his own. >> iran's leaders should understand that i do not have a policy of containment. i have a policy to prevent iran from obtaining a nuclear weapon.

his likud party bloc shaved by voters asking for a focus on kitchen table issues.yahu had this answer. >> ( translated ): the first challenge is and will continue to be preventing iran from having nuclear weapons. >> reporter: israelis should have expected nothing less, says channel 10 defense correspondent alon ben-david. >> netanyahu sees removing the iranian threat as his lifetime mission, as a historical mission; as if history has put him in this specific time and place to relieve the israeli people from the iranian nuclear threat. >> reporter: but that sense of mission drove a very public spat with president obama last fall over when iran's program had to be stopped before it became impervious to attack. netanyahu famously set the red- line for israel at the u.n. >> the red line should be drawn right here. >> reporter: mr. obama has pledged to prevent a nuclear- armed iran, but hasn't laid out a red line of his own. >> iran's leaders should understand that i do not have a policy of containment. i have a policy to prevent iran from obtaining a nuclear weapon. >

that was only one less than netanyahu and his likud party gotten tirely on their own. so he is the hot new property here. he already was a celebrity. he is the son of a holocaust survivor who ended up in the government here. but he had gone really quite his own direction. he's been a television talk show host and a very popular columnist. he has written thrillers and children's books and a play am and he has even act in a movie. so really it was as i said just a year ago that he said he was leaving it all for politics. and his last column was something called where is the money? and that is where he let out set up for his theo which is the burden to society has to be shared more equally. >> so margaret when you think about the implications of his coming government for any movement in the israeli-palestinian struggle or relations with the u.s. i just wonder what you have seen in israel in terms of division. how divided does it feel politically and culturally? >> well it was just within israeli society jeff, there is much greater division culturally than i even notice. i

that was only one less than netanyahu and his likud party gotten tirely on their own. so he is the hot new property here. he already was a celebrity. he is the son of a holocaust survivor who ended up in the government here. but he had gone really quite his own direction. he's been a television talk show ht and a very popar columnist. he has written thrillers and children's books and a play am and he has even act in a movie. so really it was, as i said, just a year ago that he said he was leaving it all for politics. and his last column was something called where is the money? and that is where he let out, set up for his theo which is the burden to society has to be shared more equally. >> so margaret when you think about the implications of his coming government for any movement in the israeli-palestinian stggle or relatiosith the u.s. i just wonder what you have seen in israel in terms of division. how divided does it feel politically and culturally? >> well, it was just within israeli society, jeff, there is much greater division culturally than i even notice. i hav

right now the prediction is that benjamin netanyahu's likud party has won about 31 seat in the -- in the parliament and will take the lead in forming the government. netanyahu had called these elections in a way as a reflection of his policies on the west bank and settlements, the quelling of the uprising in gaza and, of course, israeli relations or lack of relations, i should say, with iran. many people and political observers there believe that this will then continue his relatively more hardline right-leaning policies on all of those three issues. netanyahu, according to exit polls, will once again be prime minister in israel. >> thanks, tyler. heading towards the close. about 50 minutes left in the trading session just off the highs of the day. a reminder. any positive close for the dow and s&p, new five-year highs. >> ameritrade getting a boost in trade today despite a drop in profits. stock is up 23% over the past three months. right after the break the ceo joins us with the real story behind this quarter and his concern of a proposed trading tax in europe and whether it could

. >> ifill: i'm joined now by margaret who is at likud party headquarters in tel aviv tonight. margaret, we know who the winner apparently is. that's benjamin netanyahu but there's something else happening right underneath, another story, another drama playing out. >> warner: yes. the drama, gwen, was not that netanyahu won, though he won much more narrowly than people thought, but that the second place finisher was not the old traditional labor war horse of shelly yachmovich nor even the hot ticket multimillionaire software developer and ultrarightest naftali bennett but the centrist candidate yair ladid whom you just saw in my taped piece who spoke consistently to and about the middle class and their concerns. now just five days ago he was projected to win 11 seats in the knesset. he's now projected to win 19. >> ifill: does this mean, margaret, that netanyahu, even though he is the winner, now has to look to him to form a coalition? >> warner: he does, gwen. in fact, prime minister netanyahu was just here. he said he's already reached out. it was clear he meant to lapid. eve

but the likud retain a party is a party with values the state of israel is a state of the jews whose eternal capital. but what will be the implications of such rhetoric after the elections many israelis are asking themselves about the day after will netanyahu become more rightwing and risk drawing israel into conflicts with its neighbors or will he back down and risk losing face among his supporters. is hoping for the latter that netanyahu will listen to world opinion and reach a compromise with the palestinians he knows all too well what the current cycle of violence can bring speakers daughter was killed in a suicide bombing seventeen years ago. that we don't have unfortunately in the center and the left. leader who is significantly charismatic to lead this country and give its people hope the left is also divided but i do think netanyahu will find a way to compromise because of world pressure but that compromise won't come easy enough to the bennett solution to the israeli palestinian conflict is to annex most of the west bank while allowing palestinians limited self rule in the w