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A federal judge sided with the insurance industry in a high-profile test case on flood damage from Hurricane Katrina. The couple who filed the case argued that wind caused most of the damage to their home. But the judge ruled the bulk of destruction was caused by flooding, and their policy didn't cover flood damage.

Israel's current mission in Gaza has two goals, says Israeli Foreign Ministry spokesman Mark Regev: to win the release of an Israeli soldier held hostage in Southern Gaza, and to stop rocket attacks from northern Gaza. A prisoner exchange is not an option, the spokesman said -- but "creative solutions" are still possible. NPR's Robert Siegel talks with Regev.

While much of the world's attention is focused on North Korea's failed test of an intercontinental ballistic missile, some analysts say a bigger threat is posed by the country's short- and medium-range missiles. The smaller missiles can reach Japan.

Impeachment proceedings against the president of Taiwan have begun. Chen Shui-bian was the first opposition leader to win the office after the island began holding presidential elections a decade ago. Taiwan was ruled by founder Chiang Kai-shek's Nationalist Party up until Chen took office.

President Bush addresses the diplomatic challenge of North Korea's missile tests at a press conference in Chicago, where he vowed to work with allies to pressure the Stalinist nation to abandon its aggressive nuclear weapons program. Don Gonyea talks with Alex Chadwick about the president's remarks.

As part of its "Way Forward" restructuring campaign, the Ford Motor Company says it will reduce its fourth-quarter vehicle production by 168,000 in North America, compared with a year ago. That's down more than 20 percent. The company hopes to reduce bulging dealer inventories by temporarily shutting down ten plants. Analysts say the production cuts could pay off if Ford's new models prove popular.

Higher-than-expected tax revenues in the United States are expected to make a dent in the federal deficit, according to early reports. According to The New York Times, corporate taxes, taxes on stock-market profits and taxes on executive bonuses are mostly responsible for the higher revenues.

As they start to return home from their positions in southern Lebanon, many Israeli soldiers are disillusioned and disappointed. They believe that the goals of the war -- releasing the two captured soldier and defeating Hezbollah -- were not met. The soldiers blame military commanders and Israeli intelligence for the failures.

Thailand remains relatively calm, despite the fact that the government was ousted Tuesday. The coup was led by the military, which has promised to turn the government over to civilians sometime in the next few weeks.

Fighting along the Israel-Lebanon border has been punctuated Saturday by confrontations inside Lebanon between Israeli forces and Hezbollah guerillas. The ground combat came in addition to continuing Israeli bombardments of Lebanon, and Hezbollah rocket attacks on Israel. NPR's Eric Westervelt reports.