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Russia cuts off natural gas supplies to Ukraine

Russian state-owned gas firm Gazprom says it has cut off supplies to Ukraine after negotiators failed to resolve a payment dispute before a key deadline expired.Image

Representatives from Ukraine, Russia and the European Union held meetings over the weekend in an effort to avert the crisis, but no agreement was reached.

Gazprom said Monday that Ukraine’s total debt is $4.5 billion. The state-owned gas firm will now only deliver gas that Ukraine has paid for in advance.

“At this moment no payments for old debt or June were paid,” said Gazprom spokesman Sergey Kupriyanov. “All charts show zeroes.”

Both sides said they have filed claims with an international arbitration court in Stockholm.

While Gazprom hiked the price it charges Ukraine by about 80% to $485.50 per thousand cubic meters of gas in April, some concessions have been offered during recent talks. Gazprom charged European countries an average of $377.50 per thousand cubic meters in 2013.

Related: Europe leans more heavily on Russian gas

The gas dispute between Moscow and Kiev has escalated as relations between the two countries have deteriorated.

Rising gas prices hurting Ukrainians
 

Europe and the U.S. have imposed sanctions on Russia for its annexation of Crimea, while analysts have accused Russia of using natural gas supplies as a political tool.

In recent weeks, violence has again flared in eastern Ukraine as government forces clashed with pro-Russian militants. The military conflict was clearly having an effect on gas negotiations.

“We will not subsidize Russian Gazprom,” Ukrainian Prime Minister Arseniy Yatsenyuk said Monday. “Ukrainians will not take out of their pockets $5 billion annually for Russia to use this money to buy weapons, tanks and jets and bomb Ukrainian territories.”

Europe relies on Russia for more than 30% of its gas, and half of that is pumped through Ukraine. Analysts worry that a disruption in supplies to Ukraine could hurt European companies and households.

Kupriyanov said Monday that “gas designated for European consumers is flowing in full accordance with the contract’s figures.”

 

This tiny piece of paper sold for $9.5 million

It’s been called the most valuable item in the world by weight. The British Guiana One-Cent Magenta just became the most expensive stamp ever sold.

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The stamp, weighing just 0.04 grams, was auctioned by Sotheby’s Tuesday, bringing in $9.48 million, just shy of the price range expected by Sotheby’s experts, but still enough to break the world record. Until then, the most expensive stamp ever sold was the Treskilling Yellow, which broke records when it sold for $2.2 million in 1996.

The stamp is famous in collector’s circles, and while the winning bidder has chosen to remain anonymous, David Redden, the vice chairman of Sotheby’s, told CNNMoney before the auction that he suspected the top bidder would be someone who had been a stamp collector from a young age, just like he was.

“I could well imagine someone who collected stamps as a child, always knew about this particular stamp, has now created some real wealth for themselves, and they think, ‘My goodness. I can actually pay tribute to that little child who I was once upon a time and buy the greatest stamp in the world,'” he said.

After the auction, Redden kept mum about details of the buyer, saying only that the buyer was a “collector,” not an investor.

Redden said the auction house was pleased with the outcome. “This is the most valuable item in the world by weight,” he said. “It’s just a tiny piece of paper.”

The history of this stamp is famous among collectors:

In 1856, a postmaster in British Guiana (now Guyana, on the northern coast of South America), ran out of stamps, and the shipment of a new batch was late. He asked a local newspaper to print an emergency issue of several stamps to hold him over. Among them was the British Guiana One-Cent Magenta, and only one of its kind is still known to exist today.

The stamp was first discovered by a 12-year-old boy in 1873, 17 years after it was printed. The boy, a stamp collector himself, couldn’t find a reference to the stamp in his catalog and sold it for six shillings — about $50 today.

After that, the stamp passed through several owners for nearly the next century, until it was bought by American millionaire (and convicted murderer) John E. du Pont, who snapped it up for $935,000 in 1980. He died in prison in 2010, and his estate brought the stamp to auction.

According to Redden, stamp collecting is a sort of gateway drug to collecting other items of value, like fine art or antiques.

“So many collectors, whether they collect paintings or works of art, began life as stamp collectors,” he said.

Passionate stamp enthusiasts are still active, both online and off, but organized stamp collecting seems to have waned in the past couple decades.

“Our membership has fallen over the past 15, 20 years … it’s pretty close to flat right now,” said Ken Martin, the executive director of The American Philatelic Society. The organization works to recruit new members through social activities and educational outreach.

Related: James Bond submarine car sells for $920,000

Stamp collecting remains a potentially worthwhile financial investment. Researchers who studied stamp appreciation of British stamps from 1900-2008 found that “returns are higher than those on bonds but below those on equities.”

The researchers, Elroy Dimson and Christopher Spaenjers, said that the risk of stamp collecting is relatively low, and said they found that the annualized return on stamps was similar to returns on art investments, coming in at 7% in nominal terms, or 2.9% in real terms.

After the auction Tuesday, Sotheby’s David Redden held the stamp, clutching its glass encasement with his white-gloved hands. For him, the sale was bittersweet. “I have to say I’m a little sad to see it go,” he said. ” When I was eight years old this was the most precious object in the entire world, and I never dreamed I would have it in my hands.” 

Government Standoff Shakes Trust in U.S. Debt

In good times and bad, the world’s financial system has long been able to rely on one thing: that the United States government would pay back its debt on time.

This assumption has made short-term government debt the most basic building block of the financial system, as reliable as a dollar bill.

In recent days, however, the fiscal impasse in Congress has been testing investors’ confidence. As a result, investors have been shifting their money out of the $1.7 trillion market for the short-term government debt known as Treasury bills, worried, for the moment at least, that they may not be the risk-free asset they have known.

Indeed, it now costs more for the United States to borrow money for a month than it does for the average highly rated American company to do so.

“These bills are like the center of gravity for the financial universe — they really are,” said Lee A. Sachs, a former Treasury official who now runs the lending firm Alliance Partners. “Defaulting on these would be like the laws of physics being repealed.”

Many investors are cautious about reading too much into the recent changes in the Treasury bill market, given that it is one narrow corner of the financial world. More visible markets, like stocks, are still showing relatively little concern about a default.

But traders and bankers are watching movements in the price of Treasury bills because they could show the first tremors of a potential earthquake if Congress fails to raise the government’s borrowing limit. Treasury Secretary Jacob J. Lew has said that after Oct. 17, the Treasury will no longer be able to borrow more money and may not be able to pay all of its bills.

No one is questioning yet whether the government will, at some point, pay back all the money it has borrowed. Investors are, however, entertaining doubts about whether Washington will pay back money on the date it has promised, a fundamental expectation that helps lubricate day-to-day transactions in the financial system.

“That is a very big change in perception,” said Clifford D. Corso, chief executive of the trading firm Cutwater Asset Management. “So much of the world relies on that certainty of date of payment. That chain is a very large and dangerous one to monkey around with.”

A pressman picks up stacks of $20 bills at the  Bureau of Engraving.

The clearest sign of the changing perceptions has come in the prices for the bills that the Treasury Department is supposed to repay in the days right after the debt ceiling is set to be reached.

Normally, as the day of repayment for a Treasury bill gets closer, the chances of getting repaid go up and the bill becomes worth more to investors. Now, however, the opposite is happening, and the bills are becoming worth less than they were previously, making them available for a discount on their face value.

The discount on bills to be paid on Oct. 24 has grown by 400 percent since the beginning of the month; on Wednesday, it jumped 24 percent. That has brought the price that the government has to pay to borrow money for a month to three times what the average AA-rated American company has to pay, according to Federal Reserve data. Typically, the United States government can borrow money for less than big corporations.

Confidence in investments widely considered to have little or no risk has been periodically shattered in the recent past. Until 2008, most investors thought they could not lose money on mortgage-backed bonds that carried a rating of AAA. Last year, investors were forced to rethink their belief that countries in the European Union would always repay their debt.

The trust in debt issued by the United States, however, has always run deeper because of the size of the economy and the presumed ability of the government to print as much money as it needs. This has meant that during the last two big crises, most investors sought out Treasury debt as the ultimate safe haven.

So far, despite mounting worries over the standoff in Washington, investors have not been turning away from Treasury debt altogether. They have largely remained confident that the government will pay back its longer-term debt on time, keeping the prices of those bonds stable.

But any debt set to come due in late October or November has recently become much less popular. And the concern has been stretching further into the future. On Wednesday, investors were even shunning bonds due for payment in December.

A primary way that banks and companies use Treasury bills is in managing their day-to-day needs for cash. Banks that need cash borrow against their Treasury bills overnight, in what is known as a repurchase agreement.

Mr. Corso, who helps facilitate these transactions, said that institutions making these trades have recently been refusing to accept Treasury bills due in October and November as collateral. The mutual giant Fidelity Investments is among the market participants that have said they are avoiding debt around the dates of a possible default.

But most investors say that the current issues are only a shadow of the problems that would be likely to hit if the government actually failed to pay any of its debt on time.

The Secretary General of the Organization for Economic Cooperation and Development, Angel Gurria, said on Wednesday that “putting the world’s primary risk-free asset into doubt would have negative repercussions throughout the global financial system. These effects would of course feed back on the U.S. economy.”

In the longer term, the fear is that a default would dent the willingness of foreign investors to use Treasury bonds as a place to park their money. Their desire to do so today has made the dollar the world’s most widely used currency.

In remarks prepared for a hearing on Thursday, the head of the industry group formutual funds, Paul Schott Stevens, said that if a payment was delayed for as little as a few days, “investors will learn a lesson that cannot and will not be unlearned.”

“That lesson is simple: Treasury securities are no longer as good as cash,” Mr. Schott Stevens said.

Even if members of Congress do come to a compromise before a missed payment, the current turmoil could do long-term damage to the investor confidence.

Andrew Milligan, the Scottish head of global strategy at Standard Life Investments, said: “I came to the U.S. markets for certainty, but I’m not getting that.”

“At the margin,” he said, “people are looking for other places to keep their cash.”

 

Wal-Mart Drops Ambitious Expansion Plan for India ..

A Bharti-Walmart store in Chandigarh, India. Wal-Mart Stores is ending its joint venture with Bharti, buying out its stake.

 

MUMBAI — Wal-Mart Stores gave up on India’s huge market on Wednesday, announcing that it had indefinitely delayed its once-ambitious plans to open hundreds of superstores across the country.

The announcement adds to the gloom enrobing the Indian economy. Growth has slowed sharply and the value of the rupee has fallen starkly in recent months. It also suggests that the government’s efforts to lure more foreign investment are failing, but the governing United Progressive Alliance’s plan has never been popular with India’s politically vocal retailers.

Wal-Mart, the Bentonville, Ark., company that is the world’s largest retailer, also announced that it was ending its joint effort with Bharti Enterprises of India to operate 20 wholesale “cash and carry” stores that sell to other businesses like retailers, hotels and restaurants. Wal-Mart plans to buy Bharti’s 50 percent stake in the venture, and the two companies will operate independent businesses in India. That Wal-Mart kept the wholesale business, long seen as a way to learn about India’s fragmented retailing sector, suggests it has not entirely ended its hopes of eventually selling at a retail level.

In 2007, Wal-Mart announced with great fanfare that along with Bharti, it planned to open “hundreds” of stores, the kind of ambitious proposition that many international companies hatched early in the century as hopes blossomed that India would soon join China as an emerging economic colossus. But many of those same companies have quietly shelved their expansion plans after complex market conditions — spotty electricity, poor roads and government ineptitude — frustrated hopes of rapid profits.

Wal-Mart’s chief executive for Asia, Scott Price, said this week that the Indian government’s regulations requiring foreign retailers to buy 30 percent of products from local small and midsize businesses were the “critical stumbling block” to opening its trademark consumer stores.

“I don’t understand how this 30 percent small and medium enterprise can be executed,” Mr. Price said in an interview on Monday at the Asia-Pacific Economic Cooperation forum in Bali, Indonesia, The Associated Press reported.

He said that Indian retailers were not required to follow the same rule, which made it too difficult for outsiders to make money, because no enterprise small enough to meet the government’s requirements had the capability to produce on the scale that a giant retailer requires.

“For Wal-Mart, there has been frustration brewing for a long time about the obstacles to doing business in India and the changing configurations of what it could do and what it couldn’t do,” said Devangshu Dutta, chief executive of Third Eyesight, a retail consulting firm based in Bangalore. “To just continue to pump in money without reflecting on this would be pointless.”

American executives and politicians have been expressing growing impatience with India’s fitful efforts to open and modernize its economy. The government sought to address some of this frustration with a series of overhauls over the last year that ministers hoped would lead major international retailers to invest substantial sums in improving the country’s retail infrastructure, which is predominately mom-and-pop shops. So far, no company has.

Only 4 percent of India’s $500 billion retail market is controlled by large, Western-style chain stores. In China, the share is about 20 percent and in Brazil 36 percent. India’s tiny operators have few of the inventory controls of their larger brethren, and much of the country’s food spoils before reaching consumers — an unfortunate reality in a nation in which nearly half of all children are malnourished.

With national elections scheduled for next year, there is little hope that any new policy changes will be put in place any time soon. Looser rules enacted last September led an important regional political party to withdraw from the governing coalition, briefly threatening the coalition’s viability. India’s main opposition party, the Bharatiya Janata Party, has opposed efforts to loosen foreign investment rules. Critics say that Wal-Mart would put thousands of small retailers out of business, increasing unemployment.

“I don’t see any big foreign retailers entering the market at least for the next nine months, until after the general elections, when we know what the direction will be of the policy,” said Saloni Nangia, president of Technopak, a management consulting firm based in Gurgaon. “It is a wait and watch for many international retailers who want to be in India eventually.”

Wal-Mart’s problems in India extend well beyond the government’s procurement rules. The Indian authorities are investigating whether Wal-Mart violated foreign investment rules by giving Bharti Retail an interest-free loan of $100 million that could later be converted into a controlling stake in the company. Both companies deny wrongdoing.

Last November, the joint venture between Wal-Mart and Bharti suspended several senior executives and delayed some store openings as part of an internal bribery investigation, one of a series of bribery inquiries that have shaken Wal-Mart’s international operations. In June, the joint venture replaced its chief executive.

Girish Kuber, a former political editor of the Indian newspaper The Economic Times, called the dissolution of the Wal-Mart and Bharti partnership “inevitable.”

“It is a sad story,” he said. “The reforms are going nowhere, and there is no investment coming in.”

Many foreign companies have found India’s endemic corruption difficult to keep out of their operations. Since American law requires top executives to ensure that their international operations remain free of corruption, executives in the United States have taken an increasingly dim view of doing business in India, with its low profits and constant legal worries.

Neha Thirani Bagri contributed reporting from Mumbai, and Malavika Vyawahare from New Delhi.

Afghanistan’s Hamid Karzai says Nato caused ‘great suffering’

 

Hamid Karzai: ‘What we wanted was absolute security and a clear-cut war against terrorism’

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Taliban Conflict

  • Path to talks
  • Q&A: Doha office
  • Who are the Taliban?
  • Militant nexus

President Hamid Karzai has criticised Nato for failing to bring stability to Afghanistan in over a decade there.

“On the security front the entire Nato exercise was one that caused Afghanistan a lot of suffering, a lot of loss of life, and no gains because the country is not secure,” he said.

He said Nato had incorrectly focused the fight on Afghan villages rather than Taliban safe havens in Pakistan.

Mr Karzai has just six months remaining in office until a successor is elected.

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“Start Quote

The return of the Taliban will not undermine progress. This country needs to have peace”

Hamid Karzai

  • Warlords and technocrats line up to replace Karzai

“I am not happy to say that there is partial security. That’s not what we are seeking. What we wanted was absolute security and a clear-cut war against terrorism,” Mr Karzai said of the Nato campaign.

Speaking in one of his last major interviews before stepping down, he told BBC Newsnight that his priority now is to bring peace and security to Afghanistan, including a power-sharing deal with the Taliban.

He said that his government was actively engaged in talks with the hardline Islamic group with this aim in mind:

“They are Afghans. Where the Afghan president, the Afghan government can appoint the Taliban to a government job they are welcome,” he said. “But where it’s the Afghan people appointing people through elections to state organs then the Taliban should come and participate in elections.”

Women’s rights

He dismissed concerns that bringing the Taliban back into government would sacrifice the tenuous gains on the status of women made in Afghanistan.

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Analysis

Afghanistan has come a long way from 2001, from the days of the Taliban’s oppressive Islamist rule. But it has cost hundreds of billions of dollars and tens of thousands of lives.

And as the Afghans argue with the United States about a bilateral security agreement that will formalise post-war relations, its president continues to be an ally one day, and an opponent the next.

Hamid Karzai has long had a troubled relationship with his Western backers. And whether it is fighting the Taliban or nation-building, he has often had very different objectives, especially from the US.

When I interviewed him 18 months ago he seemed frustrated, especially with the United States. But this time, Mr Karzai seemed more relaxed, clearly feeling that his concerns about the Nato operation had finally been heard in capitals around the world.

Now, with only six months until elections for his successor Mr Karzai is looking to establish his legacy. He says the most important thing for him is that he is seen as the man who did his utmost to defend and unite the new Afghanistan.

But it has come at a price. He lives under armed guard and has survived at least six assassination attempts.

“The return of the Taliban will not undermine progress. This country needs to have peace. I am willing to stand for anything that will bring peace to Afghanistan and through that to promote the cause of the Afghan women better,” he said.

“I have no doubt that there will be more Afghan young girls and women studying and getting higher education and better job opportunities. There is no doubt about that; even if the Taliban come that will not end, that will not slow down,” he added.

Before the elections for Mr Karzai’s successor the United States is keen to finalise a bilateral security agreement which will also formalise US-Afghan relations following the 2014 Nato troop withdrawal.

The US wants this signed by Mr Karzai, to avoid it becoming an election issue. However, the Afghan leader told Newsnight he was in no hurry to sign a pact:

“If the agreement doesn’t suit us then of course they can leave. The agreement has to suit Afghanistan’s interests and purposes. If it doesn’t suit us and if it doesn’t suit them then naturally we will go separate ways.”

The US is becoming more and more pessimistic about the issue and has said it will consider a zero troops option.

Troop drawdown

Mr Karzai has had troubled relations with his Western backers in recent years for openly criticising Nato, whom he has accused of having no respect for Afghan sovereignty.

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“Start Quote

Our government is weak and ineffective in comparison to other governments, we’ve just begun. But the big corruption, the hundreds of millions of dollars of corruption, it was not Afghan”

Hamid Karzai

In 2009, US President Barack Obama described Mr Karzai as an unreliable and ineffective partner. However, speaking to Newsnight Mr Karzai dismissed the claim saying he was characterised in this manner “because where they want us to go along, we don’t go along. They want us to keep silent when civilians are killed. We will not, we cannot”.

He said that in the years immediately following the US-led invasion of Afghanistan he had had good relations with the-then President George W Bush as in “those beginning years there was not much difference of opinion between us”.

“The worsening of relations began in 2005 where we saw the first incidents of civilian casualties, where we saw that the war on terror was not conducted where it should have been.”

Mr Karzai said the war should have been conducted “in the sanctuaries, in the training grounds beyond Afghanistan, rather than that which the US and Nato forces were conducting operations in Afghan villages, causing harm to Afghan people.”

Afghan womenLack of significant progress on women’s rights was a factor in Norway reducing aid to Afghanistan

There has also been much criticism of the Afghan government’s failure to deal with corruption, which along with lack of progress on significantly improving women’s rights, saw Norway cutting some its aid to the country last week.

“Our government is weak and ineffective in comparison to other governments, we’ve just begun,” Mr Karzai said. “But the big corruption, the hundreds of millions of dollars of corruption, it was not Afghan. Now everybody knows that. It was foreign.

“The contracts, the subcontracts, the blind contracts given to people, money thrown around to buy loyalties, money thrown around to buy submissiveness of Afghan government officials, to policies and designs that the Afghans would not agree to. That was the major part of corruption,” he said.

Bettencourt affair: Sarkozy secret cash case ‘dropped’

Former French President Nicolas Sarkozy

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A criminal investigation into former French President Nicolas Sarkozy, for allegedly soliciting secret campaign financing from France’s richest woman, has been dropped, judicial sources say.

Mr Sarkozy has been left off a list of those to appear for trial over the so-called Bettencourt affair, they say.

He had denied visiting L’Oreal heiress Liliane Bettencourt – alleged to be mentally frail – to solicit cash.

The decision could leave Mr Sarkozy, 58, clear to contest the 2017 election.

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Analysis

image of Hugh SchofieldHugh SchofieldBBC News, Paris

The judges are not saying they do not think Bettencourt money was illegally made over to his campaign. What they are saying is that there is no proof Nicolas Sarkozy personally pressured the L’Oreal heiress into giving it.

So the trial for “abuse of mental frailty” will go ahead – its star accused now being UMP ex-treasurer Eric Woerth. But politically, the news is that Sarko is off the hook.

True, there are other investigations into which he could be drawn. The so-called Karachi affair about kickbacks from Pakistan; or claims he used influence to get businessman Bernard Tapie a massive state pay-out.

But the Bettencourt affair was the one that mattered. Before Monday, he was actually “mis en examen” – placed under investigation – which normally means there will be a trial. Exonerated, he is free to plan. The vision of a comeback in 2017 for Mr Sarkozy – a pocket political dynamo – has now slipped perceptibly into focus.

Although unpopular when he lost his attempt to be re-elected in 2012, opinion polls now suggest he would beat President Francois Hollande in a re-run.

He has hinted at a comeback, saying earlier this year that he might have to return to “save” France from economic disaster under President Hollande.

The possibility of a criminal case against him has, therefore, gripped the media in France.

‘Cash in envelopes’

Mrs Bettencourt’s accountant, Claire Thibout, has said she withdrew 150,000 euros (£125,000) in cash that was to be passed to Mr Sarkozy’s conservative UMP party in the run-up to his presidential election victory in 2007.

Individual campaign contributions in France are limited to 4,600 euros annually.

Mrs Bettencourt’s butler testified that Mr Sarkozy was a regular visitor to her home during his 2007 campaign.

But Mr Sarkozy insisted that he only saw Mrs Bettencourt once in that year.

The argument came to a dramatic head in March, when a judge summoned both Mr Sarkozy and the butler for a face-to-face encounter, after which preliminary charges were filed against the former president.

He was charged with taking advantage of Mrs Bettencourt, by accepting cash from her when she was too frail to know what she was doing.

L'Oreal heiress Liliane Bettencourt in October 2011The ex-president forged a close friendship with Mrs Bettencourt over the years

Mrs Bettencourt, now 90, has suffered from dementia since 2006, the AFP news agency reports.

Ten people are still facing trial over the case, Le Monde reports.

They include Mr Sarkozy’s former campaign aide and UMP treasurer – and later, the French budget minister – Eric Woerth, Le Monde says.

Bettencourt staff say Mr Woerth visited the house several times to pick up envelopes stuffed full of cash. He denies doing so.

It had never been alleged that Mr Sarkozy personally received money.

He still faces investigation in other cases – including another related to his 2007 presidential run, in which it is alleged that he received funding from Libya’s Muammar Gaddafi – which he strongly denies

Woody Allen pulls Blue Jasmine in India

Cate Blanchett

Cate Blanchett has received rave reviews for her performance in the film

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Woody Allen has stopped his latest film, Blue Jasmine, from being screened in India after learning mandatory anti-tobacco adverts would be inserted into its smoking scenes.

Indian law requires health warnings to be shown on screen when characters smoke in films, while cinemas must play anti-smoking ads before every movie.

According to Reuters, Allen refused to accommodate the ads during his film.

It had been due to open in around 30 cinemas at the weekend.

Blue Jasmine stars Cate Blanchett as a wealthy New York socialite who suffers a humiliating fall from grace after her husband is arrested for financial fraud.

The actress’s critically acclaimed performance has seen her odds of winning an Oscar next year slashed to 1/4 from an initial 7/1 in August.

The film features two smoking scenes that would have given cause for the on-screen disclaimers – typically scrolling text warning viewers of the dangers of tobacco use.

A publicist for Allen told Reuters: “Due to content in the film, it cannot be shown in India in its intended manner. Therefore, the film is not scheduled to play there.”

The film’s Indian distributor, PVR films, told DNA newspaper the director had overall creative control over the film.

“He wasn’t comfortable with the disclaimer that we are required to run when some smoking scene is shown in films,” Deepak Sharma said.

“He feels that when the scroll comes, attention goes to it rather than the scene. We had to abide by the law and we don’t have control over the film.”

India’s film censor board regularly requires changes to films and while some directors allow the alterations, others have refused.

Many, including Martin Scorsese and David Lynch, argue changes to their films – including changing the aspect ratio in which some movies are shot – are unacceptable because they corrupt the artist’s vision.

India state: Telangana protests trigger power cuts

Supporters of united Andhra Pradesh set burning barricades during a protest against the formation of Telangana state, in Kurnool district some 200 kms from Hyderabad on October 5, 2013. There have been violent protests against the formation of the new state

Power cuts have crippled life in the southern Indian state of Andhra Pradesh after protests against the formation of the new state of Telangana.

More than 30,000 power workers are on strike to protest against the decision.

Meanwhile, the former chief minister of Andhra Pradesh, Chandrababu Naidu, has begun a protest fast against the state’s division.

Telangana would comprise 10 districts of the southern state, including the city of Hyderabad.

In recent years, there have been protests for and against the creation of India’s 29th state.

Backers of the new state say the area has been neglected by the government.

Opponents are unhappy that Hyderabad, home to many major information technology and pharmaceutical companies, would become a shared state capital.

Power plants hit

Power generation in Andhra Pradesh has been reduced by 4000MW as several thermal and hydel power generating plants have stopped working.

Life in at least 13 districts has been badly hit with power cuts closing cash machines, petrol pumps and cable TV services.

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Telangana

Map
  • Population of 35 million
  • Comprises 10 districts of Andhra Pradesh, including city of Hyderabad
  • Landlocked, predominantly agricultural area
  • One of the most under-developed regions in India
  • 50-year campaign for separate status
  • More than 400 people died in 1969 crackdown

Nearly 50 train services have been cancelled or curtailed. Visakhapatnam airport and several major hospitals across the state have also been affected.

Unscheduled power cuts have started in the state capital and India’s sixth biggest city, Hyderabad.

The power supply to the neighbouring state of Tamil Nadu has also been affected.

Power sector workers say their strike will continue until the decision to divide Andhra Pradesh is withdrawn.

India’s cabinet approved the setting up of the new state at a meeting on Thursday evening.

Soon after the announcement, those against the decision staged rallies, held protests and called a 48-hour strike in parts of the state that shut down schools, colleges, public transport and businesses.

Four federal ministers from Andhra Pradesh also offered their resignations – but they were not accepted.

Meanwhile, violent protests have been reported from the town of Vijayanagaram, where a curfew was imposed on Saturday.

Telangana, with a population of 35 million, comprises 10 of Andhra Pradesh’s 23 districts. Hyderabad will be included in the new state, although for the first 10 years it will serve as the joint capital of the two states.

The final decision on a new state lies with the Indian parliament. The state assembly must also pass a resolution approving the creation of the new state.

Correspondents say the timing of the announcement is linked to general elections due early next year. Recent opinion polls have shown that the Congress party is struggling in the state, which has 42 parliamentary seats.

The move to create Telangana has sparked similar demands in the states of West Bengal and Assam.

Malala: The girl who was shot for going to school

Image

 

One year ago schoolgirl Malala Yousafzai was shot in the head by Taliban gunmen – her “crime”, to have spoken up for the right of girls to be educated. The world reacted in horror, but after weeks in intensive care Malala survived. Her full story can now be told.

She is the teenager who marked her 16th birthday with a live address from UN headquarters, is known around the world by her first name alone, and has been lauded by a former British prime minister as “an icon of courage and hope”.

She is also a Birmingham schoolgirl trying to settle into a new class, worrying about homework and reading lists, missing friends from her old school, and squabbling with her two younger brothers.

She is Malala Yousafzai, whose life was forever changed at age 15 by a Taliban bullet on 9 October 2012.

I have travelled to her home town in Pakistan, seen the school that moulded her, met the doctors who treated her and spent time with her and her family, for one reason – to answer the same question barked by the gunman who flagged down her school bus last October: “Who is Malala?”

The Swat Valley once took pride in being called “the Switzerland of Pakistan”. It’s a mountainous place, cool in summer and snowy in winter, within easy reach of the capital, Islamabad. And when Malala was born in 1997 it was still peaceful.

Just a few hours’ driving from Islamabad brings you to the foot of the Malakand pass, the gateway to the valley. The winding road up to the pass leaves the plains of Khyber Pakhtunkhwa, formerly known as the North-West Frontier Province, far below.

I remember it well from childhood holidays in Pakistan. But my latest trip felt very different – the BBC crew made the journey with a military escort. Although the Pakistan army retook control of Swat from the Taliban in 2009 and it is arguably now safer for foreigners than some other areas, the military clearly didn’t want to take any chances.

Historically, the north-west has been one of Pakistan’s least developed regions. But Swat, interestingly, has long been a bright spot in terms of education.

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Mishal Husain

Watch Mishal Husain’s Panorama special on Malala on Monday 7 October at 20:30 BST on BBC One

Until 1969, it was a semi-autonomous principality – its ruler known as the Wali. The first of these was Miangul Gulshahzada Sir Abdul Wadud, appointed by a local council in 1915 and known to Swatis as “Badshah Sahib” – the King. Although himself uneducated, he laid the foundation for a network of schools in the valley – the first boys’ primary school came in 1922, followed within a few years by the first girls’ school.

The trend was continued by his son, Wali Miangul Abdul Haq Jahanzeb, who came to power in 1949. Within a few months, he had presented the schoolgirls of Swat to the visiting prime minister of Pakistan, Liaquat Ali Khan, and his wife Raana. As his grandson Miangul Adnan Aurangzeb says: “It would have been unusual anywhere else in the [North-West] Frontier at that time, but in Swat girls were going to school.”

The new Wali’s focus soon turned to high schools and colleges, including Jahanzeb College, founded in 1952, where Malala’s father, Ziauddin Yousafzai, would study many years later. Soon, Swat became known across Pakistan for the number of professionals it was producing – especially doctors and teachers. As Adnan Aurangzeb says, “Swat was proud of its record on education… one way to identify a Swati outside of Swat was that he always had a pen in his chest pocket, and that meant he was literate.”

Against this backdrop, the fate that befell the schools of Swat in the first years of the 21st Century is particularly tragic.

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By the time Malala was born, her father had realised his dream of founding his own school, which began with just a few pupils and mushroomed into an establishment educating more than 1,000 girls and boys.

 

It is clear that her absence is keenly felt. Outside the door of her old classroom is a framed newspaper cutting about her. Inside, her best friend Moniba has written the name “Malala” on a chair placed in the front row.

This was Malala’s world – not one of wealth or privilege but an atmosphere dominated by learning. And she flourished. “She was precocious, confident, assertive,” says Adnan Aurangzeb. “A young person with the drive to achieve something in life.”

In that, she wasn’t alone. “Malala’s whole class is special,” headmistress Mariam Khalique tells me.

And from the moment I walk in, I understand what she means. Their focus and attention is absolute, their aspirations sky-high. The lesson under way is biology, and as it ends I have a few moments to ask the girls about their future plans – many want to be doctors. One girl’s answer stops me in my tracks: “I’d like to be Pakistan’s army chief one day.”

Malala's empty chair

Part of the reason for this drive to succeed is that only white-collar, professional jobs will allow these girls a life outside their homes. While poorly educated boys can hope to find low-skilled work, their female counterparts will find their earning power restricted to what they can do within the four walls of their home – sewing perhaps.

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Malala’s diary: 3 January 2009

I had a terrible dream yesterday with military helicopters and the Taleban. I have had such dreams since the launch of the military operation in Swat.

My mother made me breakfast and I went off to school. I was afraid going to school because the Taleban had issued an edict banning all girls from attending schools

Only 11 students attended the class out of 27. The number decreased because of Taleban’s edict. My three friends have shifted to Peshawar, Lahore and Rawalpindi with their families after this edict.

“For my brothers it was easy to think about the future,” Malala tells me when we meet in Birmingham. “They can be anything they want. But for me it was hard and for that reason I wanted to become educated and empower myself with knowledge.”

It was this future that was threatened when the first signs of Taliban influence emerged, borne on a tide of anti-Western sentiment that swept across Pakistan in the years after 9/11 and the US-led invasion of Afghanistan.

Like other parts of north-west Pakistan, Swat had always been a devout and conservative region, but what was happening by 2007 was very different – radio broadcasts threatening Sharia-style punishments for those who departed from local Muslim traditions, and most ominously, edicts against education.

The worst period came at the end of 2008, when the local Taliban leader, Mullah Fazlullah, issued a dire warning – all female education had to cease within a month, or schools would suffer consequences. Malala remembers the moment well: “‘How can they stop us going to school?’ I was thinking. ‘It’s impossible, how can they do it?'”

But Ziauddin Yousafzai and his friend Ahmad Shah, who ran another school nearby, had to recognise it as a real possibility. The Taliban had always followed through on their threats. The two men discussed the situation with local army commanders. “I asked them how much security would be provided to us,” Shah recalls. “They said, ‘We will provide security, don’t close your schools.'”

Girls attending class at a school in Mingora, Pakistan

It was easier said than done.

By this time, Malala was still only 11, but well aware of how things were changing.

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Malala’s diary: 18 January 2009

My father told us that the government would protect our schools. The prime minister has also raised this issue. I was quite happy initially, but now I know but this will not solve our problem.

“Here in Swat we hear everyday that so many soldiers were killed and so many were kidnapped at such and such place. But the police are nowhere to be seen.

“Our parents are also very scared. They told us they would not send us to school until or unless the Taleban themselves announce on the FM channel that girls can go to school. The army is also responsible for the disruption in our education.

“People don’t need to be aware of these things at the age of nine or 10 or 11 but we were seeing terrorism and extremism, so I had to be aware,” she says.

She knew that her way of life was under threat. When a journalist from BBC Urdu asked her father about young people who might be willing to give their perspective on life under the Taliban, he suggested Malala.

The result was the Diary of a Pakistani Schoolgirl, a blog for BBC Urdu, in which Malala chronicled her hope to keep going to school and her fears for the future of Swat.

She saw it as an opportunity.

“I wanted to speak up for my rights,” she says. “And also I didn’t want my future to be just sitting in a room and be imprisoned in my four walls and just cooking and giving birth to children. I didn’t want to see my life in that way.”

The blog was anonymous, but Malala was also unafraid to speak out in public about the right to education, as she did in February 2009 to the Pakistani television presenter Hamid Mir, who brought his show to Swat.

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Hamid Mir

I was surprised that there is a little girl in Swat who can speak with a lot of confidence, but I was concerned about her security”

Hamid Mir

“I was surprised that there is a little girl in Swat who can speak with a lot of confidence, who’s very brave, who’s very articulate,” Mir says. “But at the same time I was a bit concerned about her security, about the security of her family.”

At that time it was Ziauddin Yousafzai, Malala’s father, who was perceived to be at the greatest risk. Already known as a social and educational activist, he had sensed that the Taliban would move from the tribal areas of Pakistan into Swat, and had often warned people to be on their guard.

Malala herself was concerned for him. “I was worried about my father,” she says. “I used to think, ‘What will I do if a Talib comes to the house? We’ll hide my father in a cupboard and call the police.'”

No-one thought the Taliban would target a child. There were however notorious incidents where they had chosen to make an example of women. In early 2009, a dancer was accused of immorality and executed, her body put on public display in the centre of Mingora. Soon afterwards, there was outrage across Pakistan after a video emerged from Swat showing the Taliban flogging a 17-year-old girl for alleged “illicit relations” with a man.

Ziauddin Yousafzai must have known that Malala’s high profile in the valley put her at some risk, even though he could not have foreseen the outcome.

“Malala’s voice was the most powerful voice in Swat because the biggest victim of the Taliban was girls’ schools and girls’ education and few people talked about it,” he says. “When she used to speak about education, everybody gave it importance.”

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By the time Malala was shot in 2012, the worst days of Taliban power in Swat had receded. A high-profile military operation had cleared out most militants but others had stayed behind, keeping a low profile.

“Life was normal for normal people, but for those people who had raised their voice, it was now a risky time,” says Malala.

She was one of those people.

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Kainat Riaz

When I saw the blood on Malala, I fell unconscious”

Fellow pupil Kainat Riaz

On the afternoon of 9 October, she walked out of school as normal and boarded a small bus waiting outside the gates. These vehicles are seen everywhere in Mingora – a little like covered pickup trucks, open at the back, with three lines of benches running the length of the flatbed. Each could carry about 20 people and would be waiting to take the girls and their teachers home at the end of the school day.

In Malala’s case, it was only a short journey, past a small clearing where children played cricket, and along the canal bank to her house. Once she had walked, but then her mother, Tor Pekai, intervened. “My mother told me, ‘Now you are growing up and people know you, so you must not go on foot, you must go in a car or a bus so then you will be safe,'” Malala says.

That day, she was in the middle of her exams, and had a lot on her mind. But there was still the usual after-school chat and gossip to share with Moniba, who was sitting next to her. But as the bus progressed along its route Malala says she did notice something unusual – the road seemed deserted. “I asked Moniba, ‘Why is there no-one here? Can you see it’s not like it usually is?'”

Moments later, the bus was flagged down by two young men as it passed a clearing, only 100 yards from the school gates. Malala doesn’t recall seeing them but Moniba does. To her they looked like college students.

Then she heard one ask: “Who is Malala?” In the seconds between that question and the firing beginning, Moniba at first wondered if the men were more journalists in search of her well-known friend. But she quickly grasped that Malala had sensed danger. “She was very scared at that time,’ she remembers. The girls looked at Malala, thereby innocently identifying her.

The two girls sitting on Malala’s other side, Shazia Ramzan and Kainat Riaz, were also injured.

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“I heard the firing, then I saw lots of blood on Malala’s head,” says Kainat. “When I saw that blood on Malala, I fell unconscious.”

Moniba says the bus remained there for 10 minutes, before anyone came to the aid of the panic-stricken women and children.

When they reached hospital, it was assumed all four girls were wounded, because Moniba’s clothing was drenched in her friend’s blood.

News of the shooting spread quickly. Malala’s father was at the Press Club when a phone call came to tell him one of his school buses had been attacked. He feared at once that it was Malala who had been targeted. He found her on a stretcher in the hospital.

Injured MalalaMalala as she was stretchered to hospital

“When I looked towards her face I just bowed down, I kissed her on the forehead, her nose, and cheeks,” he says. “And then I said, ‘You’re my proud daughter. I am proud of you.'”

Malala had been shot in the head and it was clear to everyone, including the Pakistan army, that her life was in danger. A helicopter was scrambled to airlift her to the military hospital in Peshawar – a journey that would eventually take her not just away from Swat but away from Pakistan.

The Combined Military Hospital in Peshawar is the best medical facility in the region, treating not just military personnel but their families too. As he flew in with Malala, Ziauddin Yousafzai was braced for the worst, telling relatives at his family home in rural Swat to make preparations for a funeral. “It really was the most difficult time in my life,” he says.

From the helipad, Malala was brought in by ambulance and placed in the care of neurosurgeon Col Junaid Khan.

“She was initially conscious, but restless and agitated, moving all her limbs,” he says. The entry wound of the bullet was above her left brow. From there it had travelled down through her neck and lodged in her back.

Map showing the site of the shooting and hospitals in Mingora and Peshawar

Malala was treated as a severe head injury case and placed under observation. After four hours, she deteriorated visibly, slipping towards unconsciousness. A scan revealed a life-threatening situation – her brain was swelling dangerously and she would need immediate surgery.

“The part of the brain involved was concerned not only with speech but also giving power to the right arm and leg,” Khan says. “So contemplating surgery in this very sensitive area can have risks. The person can be paralysed afterwards.”

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Nevertheless, he told Malala’s father that surgery was vital to save her life – a portion of her skull had to be removed to relieve pressure on the brain.

The procedure began with shaving part of Malala’s hair, and then cutting away the bone, before placing the portion of removed skull inside her abdomen in case it could be later replaced. Blood clots and damaged tissue were extracted from inside the brain.

Before that day, Khan says, he had never heard the name Malala Yousafzai, but he was soon left in no doubt that he was treating a high-profile patient. Camera crews besieged the hospital compound as a tide of shock and revulsion spread through Pakistan.

TV presenter Hamid Mir looks back on the attack and the country’s realisation that the Taliban were capable of shooting a young girl as a defining moment. “It gave me a lot of courage and strength [a sense] that enough is enough, now is the time to speak against the enemies of education,” he says. “If they can target a little girl like Malala, they can target anyone.”

From Adnan Aurangzeb, so closely connected to Swat and its people, there was anger – not just at the Taliban but at the government of Pakistan, which he held accountable for failing to protect Malala.

“She should have been under the protection of Pakistan,” he says. “Not left to go unescorted like any normal student in an area infested with militants and Taliban.”

Inside the intensive care unit in Peshawar, Malala appeared to respond well to the surgery. Her progress was by now being followed not just in Pakistan but around the world. In Islamabad, the army chief General Ashfaq Kayani was taking a keen interest, but wanted a definitive and independent opinion on Malala’s chances.

Candlelit vigil for the recovery of Malala held in November 2012A vigil for Malala in Karachi as she recovered in hospital

As it happened, his officers were looking after a team of British doctors at the time – a group from Birmingham who had come to Pakistan to advise the army on setting up a liver transplant programme. The multi-disciplinary team was led by emergency care consultant Javid Kayani, a British Pakistani who maintains close links with the land of his birth.

When the request for help came through, Kayani knew which one of the team he wanted to take with him to Peshawar on the helicopter that was standing by. Given Malala’s age, paediatric intensive care specialist Fiona Reynolds was the obvious choice. Although she had her doubts about security in Peshawar, she had heard enough about Malala from news reports to feel the risk was worth taking. “She’d been shot because she wanted an education, and I was in Pakistan because I’m a woman with an education, so I couldn’t say ‘no,'” she says.

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The quality of the intensive care was potentially compromising her final outcome”

Fiona Reynolds

What the doctors discovered in Peshawar, though, was not encouraging. Although Malala had had what Reynolds calls “the right surgery at the right time”, she was being let down by the post-operative care. A similar patient in the UK would have been having her blood pressure checked continuously via an arterial line – according to Malala’s charts, hers had last been checked two hours earlier.

Reynolds’ instinct told her that Malala could be saved, but everything depended on how she would be cared for.

“The quality of the intensive care was potentially compromising her final outcome, both in terms of survival and in terms of her ability to recover as much brain function as possible,” she says.

That clinical opinion would be vital to Malala’s future. An army intensive care specialist was sent to bolster the team in Peshawar, but when Malala deteriorated further, she was airlifted again, this time to a bigger military hospital in Islamabad.

In the first hours after her arrival there, Fiona Reynolds remained very worried. Malala’s kidneys appeared to have shut down, her heart and circulation were failing, and she needed drugs to support her unstable blood pressure. “I thought she was probably going to survive, but I wasn’t sure of her neurological outcome, because she’d been so sick. Any brain damage would have been made worse.”

As Malala gradually stabilised, over the next couple of days, Reynolds was asked for her opinion again – this time on her rehabilitation. She asked what facilities were available, knowing that acute medicine is often far ahead of rehab. That was indeed the case in Pakistan. “I said that if the Pakistan military and the Pakistan government were serious about optimising her outcome… I said that everything that she would need would be available in Birmingham.”

Graphics from Queen Elizabeth Hospital in Birmingham Graphics from the hospital showing the bullet’s path, titanium plate and implant

On 15 October 2012, Malala arrived at the Queen Elizabeth hospital in Birmingham, where she would remain for the next three months. She had been kept in a medically induced coma, but a day later the doctors decided to bring her out of it. Her last memory was of being on a school bus in Swat – now she was waking up surrounded by strangers, in a foreign country.

“I opened my eyes and the first thing I saw was that I was in a hospital and I could see nurses and doctors,” she says. “I thanked God – ‘O Allah, I thank you because you have given me a new life and I am alive.'”

Malala’s parents and brothers were still in Pakistan but Javid Kayani was standing at her bedside.

“When she woke up she had this very frightened look and her eyes were darting back and forth,” he says.

“We knew she couldn’t speak because she had a tube down her throat to assist her breathing. But I knew that she could hear so I told her who I was and I told her where she was, and she indicated by her eye movements that she understood.”

Malala then gestured that she wanted to write, so a pad of paper and a pencil were brought. She attempted to write, but she had poor control of the pencil – unsurprising for someone with a head injury. Instead, an alphabet board was found and Javid Kayani watched her point to the letters one by one.

“The first word that she tapped out was ‘country’. So I assumed she wanted to know where she was and I told her she was in England. And then the next word was ‘father’ and I told her that he was in Pakistan and he’d be coming in the next few days. That was the limit of the conversation.”

More “conversations” would take place with one of the few visitors allowed in – Fiona Reynolds, who brought Malala a pink notebook in which to write down her questions.

The notebook given to Malala by Fiona Reynolds

Malala showed it to me, It is a poignant reminder of her search for answers in that period, especially the page where she simply asks, “Who did this to me?”

For Reynolds, the fact that Malala was able to articulate her questions was a huge relief.

“I was hoping that her cognitive abilities would still be there. I was also hoping that she hadn’t lost the power of speech. So the fact that she was mouthing words and writing – I thought she’s not lost the ability to speak.

“And remember she was talking in her third language [Pashto is Malala’s mother tongue, Urdu her second language], so her speech centre was pretty intact.”

Malala would go on to make an outstanding recovery, a tribute not just to the quality of the care she received – but also, her doctors told me, to her own resilience and determination.

Once she was out of intensive care, doctors began to consider what could be done about the paralysis of the left side of her face, which had caused great distress to her parents when they were reunited with her in Birmingham. Malala’s father felt she had lost her smile.

“When she used to try to smile I would look at my wife and a shadow would fall on her face, because she thought, ‘This is not the same Malala I gave birth to, this is not the girl who made our lives colourful.'”

Malala and her father Ziauddin YousafzaiMalala with her father Ziauddin Yousafzai in Birmingham

Malala’s ear specialist Richard Irving thinks that in those early weeks, she was troubled by her new appearance.

“She was very reluctant initially to speak, she preferred to be photographed from the good side,” he says. “I think it probably did have an emotional impact on her, which she didn’t really voice to anyone, but it’s very easy to understand in a 15-year-old.”

After tests and scans, Irving’s view was that the facial nerve was unlikely to repair itself, but without surgery, he couldn’t be sure exactly what state it was in. The procedure would be a lengthy one, and this time Malala was herself able to weigh up the risks.

A titanium plate used to repair Malala's skullA titanium plate used to repair Malala’s skull

“She was in control,” Irving says. “She would take advice from her father but she was making the decisions. She took a great interest in her medical care and didn’t leave it to someone else.”

During a 10-hour operation last November, he discovered that Malala’s facial nerve had been entirely severed by the bullet and that a 2cm section of it was missing. For any movement to return to her face, the two ends of the nerve would have to be re-attached, but the missing section made it impossible to do this along the original route. Instead, Irving decided to expose the nerve and re-route it so it travelled a shorter distance.

In February this year, a further operation replaced the skull section removed by the surgeons in Pakistan, with a titanium plate. A cochlear implant was also inserted into Malala’s left ear to correct damage to her hearing caused by the bullet. No further surgery is said to be required – her face should continue to improve over time, with the help of physiotherapy.

On 12 July, nine months after the shooting, came a major milestone – Malala stood up at the UN headquarters in New York and addressed a specially convened youth assembly. It was her 16th birthday and her speech was broadcast around the world.

Malala giving a speech to the UN on her 16th birthday

“One child, one teacher, one book, one pen can change the world,” she said.

How did it feel to speak in public once again – this time on a bigger stage than she could ever have imagined?

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Malala’s speech to the UN

  • Speech delivered to 500 young people aged 12-25 from around the world
  • Malala called on politicians to take urgent action to ensure every child can go to school
  • UN Secretary General Ban Ki-moon also addressed the session, calling Malala “our hero”
  • The event, described by the UN as Malala Day, was organised by former UK Prime Minister Gordon Brown, now the UN Special Envoy for Global Education

“When I looked at 400 youth and people from more than 100 countries… I said that I am not only talking to the people of America and the other countries, I am talking to every person in the world,” she says.

Ziauddin Yousafzai remembers it as the biggest day of his life. For him, Malala’s speech was an assault on negative perceptions of Pashtuns, of Pakistanis and of Muslims.

“She was holding the lamp of hope and telling the world – we are not terrorists, we are peaceful, we love education.”

Malala was introduced to the audience in New York that day by former British Prime Minister Gordon Brown, the UN’s special envoy on global education.

He has no doubt about her power to focus attention on the bigger picture of nearly 60 million out-of-school children around the world. “Because of Malala,” he says, “there is a public understanding that something is wrong and has got to be done.”

There is even speculation she could be awarded the Nobel Peace Prize.

The girl from Swat has gone global, but she still believes she can and will return home to Pakistan. Few would advise her to do that anytime soon. There are still fears for her security and also criticism that she attracts too much attention, especially in the West.

But she seems sanguine about any criticism. “It’s their right to express their feelings, and it’s my right to say what I want,” she says. “I want to do something for education, that’s my only desire.”

The danger for Malala is that the more time she spends away from Pakistan, the less she will be seen at home as a true Pakistani, and the more she will be identified with the West. But she has little time for distinctions between East and West.

“Education is education,” she says. “If I am learning to be a doctor would there be an eastern stethoscope or a western stethoscope, would there be an eastern thermometer or a western thermometer?”

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  • 1997:

     Born in Swat Valley, Pakistan

  • 2009:

     Wrote anonymous BBC blog about life under the Taliban

  • 2009-10:

     Identity revealed in TV interviews and a documentary

  • 2011:

     International Children’s Peace Prize nominee

  • 2012:

     Shot in assassination attempt by Taliban

  • 2013:

     Nobel Peace Prize nominee, named one of Time magazine’s most influential people

Still only 16, she has to balance being the world’s most high-profile educational campaigner, in demand around the world, with the completion of her own schooling.

“I am still the old Malala. I still try to live normally but yes, my life has changed a lot,” she tells me.

There are moments when she misses her old anonymity, but says it’s “human nature” to want what you don’t have.

She is an extraordinary young woman, wise beyond her years, sensible, sensitive and focused. She has experienced the worst of humanity, and the best of humanity – both from the medics who cared for her and the messages from many thousands of well-wishers.

I find one of those well-wishers in her own street in Swat, just outside the home that she never made it back to, on the afternoon she was shot. He is a young man called Farhanullah and he says the Taliban have blighted his life, destroying Swat’s economic, social and educational fabric. Malala was “Pakistan’s daughter”, he says. “We should be proud that she has made such a big sacrifice for Pakistan.”

I ask if he would like to send a message to Malala. Yes, he says. “She should continue her struggle. We are all with her.”

The voice of the girl whom the Taliban tried to silence a year ago has been amplified beyond what anyone could have thought possible.

When I ask her what she thinks the militants achieved that day, she smiles.

“I think they may be regretting that they shot Malala,” she says. “Now she is heard in every corner of the world.”

Airbus and Japan Airlines agree landmark $9.5bn deal

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Aircraft manufacturing giant Airbus has announced its first deal with Japanese carrier Japan Airlines (JAL).

It has won an order from JAL for 31 of its A350 planes, in a deal worth nearly $9.5bn (£5.9bn) at list prices.

The A350 is designed to be more fuel-efficient and is a direct competitor to US rival Boeing’s 787 Dreamliner, which has been hit by safety and technical issues in recent months.

The deal is a blow for Boeing, which has dominated Japan’s aviation market.

“This is Airbus’ largest order for the A350 so far this year and is the largest ever order we have received from a Japanese airline,” said Fabrice Bregier, chief executive of Airbus.

“I must say that achieving this breakthrough order and entering a traditional competitor market was one of my personal goals.”

According to the deal, JAL also has an option to purchase an additional 25 planes.

 

Key to growth

In recent years, the aviation industry has been hurt by a slowdown in demand and high volatility in global fuel prices.

That has seen many leading carriers turn to more fuel-efficient aircraft in an attempt to cut down costs and maintain profitability.

Both Airbus and Boeing have seen a surge in demand for such planes.

Airbus, which says the A350 will use about 25% less fuel than previous generation wide-bodied aircraft, has had 725 orders for the plane prior to securing the JAL deal.

The company hopes to start delivering the first A350s to customers by the end of 2014.

Yoshiharu Ueki, president of Japan Airlines, said the new planes would offer “high level of operational efficiency and product competitiveness” and help the airline to cater to “new business opportunities after slots at airports in Tokyo are increased”.

Meanwhile, Boeing’s 787 Dreamliner continues to remain popular despite this year’s temporary worldwide grounding of the aircraft while safety regulators investigated the cause of fires. The firm has received orders for more than 950 Dreamliner jets so far.

Japanese carriers, JAL and All Nippon Airways (ANA), are two of the biggest operators of the Dreamliner jets.

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