The bodies of three children and a rabbi gunned down at a Jewish school in France were flown to Israel today for burial, as French police raided a house in Toulouse and engaged in a gunbattle with a suspect in the killings.

Hackers have attacked the websites of Israel’s stock exchange and national airline in a deepening cyber war launched earlier this month by a group claiming to be Saudis.

El Al Israel Airlines will install anti-missile systems on six passenger jets that fly to areas where the al Qaida terror network has been active, an Israeli transportation official said today.

EL AL Israel Airlines, the country’s flag carrier, reported its first loss in six quarters because of higher spending on jet fuel and a payment to cover early retirement.

ISRAELI troops traded gunfire with Palestinians yesterday and arrested 50 suspected terrorists after the army swept into the West Bank City of Nablus backed by 150 armoured vehicles in a retaliatory strike for several Palestinian attacks on Israel.