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The killing of Hassan Nasrallah came just a few days before the first anniversary of Hamas’s October 7 attacks on Israel. With its decapitation of Hizbollah in Lebanon, the Israeli government hopes that it has finally seized the initiative in the battle with its regional enemies.

The US is urging Israel not to escalate the conflict further. But Israel is likely to see the current moment as too good an opportunity to miss. Many now want to press home the advantage, in the hope of striking a decisive blow against not just Hizbollah but Iran — and the “axis of resistance” that it leads, which includes Hamas, Hizbollah, militias in Iraq and Syria and the Houthis in Yemen.

In the aftermath of Nasrallah’s killing, Benjamin Netanyahu, Israel’s prime minister, talked about an opportunity for “changing the balance of power in the region for years”. If Israel can gravely damage the “axis of resistance”, its achievement would be quietly welcomed in Saudi Arabia and the United Arab Emirates — which also fear Iran and have fought a war against the Houthis.

Unlike the Israeli government, the Saudis continue to insist that establishing a Palestinian state is critical to achieving lasting peace in the Middle East. The Saudi government also has good reason to fear the escalation of regional hostilities that could threaten their ambitious development plans.

For Israel, changing the balance of power also involves reversing the national narrative of defeat and confusion that set in after October 7. The Hamas attack was a humiliation for Israel’s intelligence services. The country’s reputation for always being one step ahead of its enemies was a key part of its deterrence strategy. That reputation was lost in a single day last year, when Israel was comprehensively outwitted by Hamas.

The subsequent war in Gaza has failed to restore Israel’s pride or its security. Despite an operation that has caused massive civilian deaths, Israel has been unable to free all its hostages. It is also losing the battle for international public opinion, and has been accused of genocide in hearings at the International Court of Justice.

The series of attacks on Hizbollah — starting with the exploding pagers, which killed or maimed so many of the organisation’s footsoldiers — has restored the reputation of Israeli intelligence and the morale of the Israeli public. The fact that Hizbollah is detested by many Lebanese citizens and some in the wider Arab world, also complicates the normal condemnation of Israel.

The destruction wrought on Hizbollah potentially puts Iran’s government in the most dangerous international situation it has faced for decades. The presence of a powerful Iran-backed militant force with a huge arsenal of rockets — right on Israel’s northern border — was always regarded as key to Iran’s deterrent power against Israel. The theory was that the Israelis would avoid a direct attack on Iran — partly for fear that Tehran would unleash Hizbollah.

Now, with its proxy and ally reeling, Iran is faced with a dilemma. It has not come directly to the aid of Hamas. If it also stands to one side as Hizbollah is pummelled, its allies will feel betrayed and Israel may be emboldened to take even more radical actions — perhaps including the direct attacks on Iran’s nuclear facilities that it has been threatening for decades.

On the other hand, if Iran gets directly involved in a war with Israel, the regime’s survival would be at risk — particularly since the US might well get drawn into the conflict. The Americans have sworn off further wars in the Middle East, at least in theory. But they are also firmly committed to the defence of Israel and have demonstrated that they are capable of bringing about regime change in the Middle East. The bloody, chaotic aftermath of the US-led war in Iraq remains a recent and painful memory in Washington. But the fact that Iran is known to be very close to having the capacity to build a nuclear weapon will increase the temptation for Israel to strike now.

Some excited supporters of Israel are comparing the current moment to the Six Day War of 1967 — a sudden and unexpected Israeli victory that changed the balance of power in the Middle East.

But while there are clearly opportunities for Israel in the current situation, there are also massive risks. Hizbollah is reeling but it may still be able to deploy what remains of its arsenal of missiles and hit Israel’s major cities repeatedly. If Israel follows through on its threats of a ground invasion of Lebanon, it could find itself in a quagmire-like conflict that runs for years — at a time when its forces are already at war in Gaza.

Over the long run, the death and destruction in Lebanon caused by Israeli air strikes is likely to create a new generation of Hizbollah soldiers. Some 60 per cent of Hamas fighters are thought to be orphans from previous conflicts.

Hizbollah and Hamas are both grievously damaged. But Israel has yet to answer how Gaza will be governed after the war is over. Lebanon’s weak caretaker government may well be incapable of moving into any vacuum left by Hizbollah, in which case Israel could have a failed state on its borders.

Netanyahu may dream of bringing about a new regional order in the Middle East. But regional chaos — with the all the dangers that it brings — seems a more likely outcome.

gideon.rachman@ft.com

A RARE 1p has sold for a whopping £200,000 at auction due to its specific date.

A coin specialist has urged the public to look out for the 72-year-old penny as it could be worth 20million times its face value.

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The change fanatic known as CoinCollectingWizard on TikTok recently published a video on the 1952 proof 1p, marked by an image of George VI.

This particular coin is the “rarest proof penny” of its entire series of copper and bronze pennies, and has left collectors absolutely astounded.

The TikTokker began the video by saying: “Jiminy Cricket – £200,000 for this old penny.

“The existence of this unique 1952 proof penny was not known publicly until its initial appearance at Numismatic Auctions in October of 1997, some 45 years after it was struck.

“The British Numismatic world was astonished to see this coin appear and in proof quality as this was not known to exist.”

He also said that the coin remains an enigma as it is the “only unique proof striking” of a pre-decimal penny of the 20th century.

The expert goes on to say that the 1p is said to be so unique because it bears the face of King George VI – who died in early 1952.

London-based dealer Sovereign Rarities echoes this and states on its website: “It is perhaps understandable that the George VI 1952 Proof Penny remains a unique piece, as the King died very early in 1952 passing away on February 6.

“Only the smaller denominations of currency coins that were in great demand were struck for circulation in 1952, with the larger denominations omitted in anticipation of a new reign and a new coinage for Queen Elizabeth II.”

According to BullionByPost, proof pennies are the highest quality coin a mint produces.

Issuers like the Royal Mint generally create just a small number of these per year due to the lengthy process required to make them.

Hand-finished dyes and etching by an expert are a huge part of their creation, meaning it takes around an hour to strike 50 proof coins.

The CoinCollectingWizard added: “A lovely example went up for auction recently and sold for £200,000, so it is 100% a coin to look out for.”

It is worth keeping an eye on your spare change as it could be worth a lot more than you think.

Other rare coins which could be worth more include the One Penny which dates back to 1893, but it’s the production error which makes it a valuable find. 

The ancient coin features Britannia on the back and the reverse of the coin is the usual Queen Victoria bun head, which is a feature on many coins from this era. 

What makes the coin valuable is an error with the number three in the date at the bottom of the coin. 

Under the number three of the error coin, it looks like there is the start of a number two.

If the coin features this it could be worth up to £600.

How to spot rare coins and banknotes

Rare coins and notes hiding down the back of your sofa could sell for hundreds of pounds.

If you are lucky enough to find a rare £10 note you might be able to sell it for multiple times its face value.

You can spot rare notes by keeping an eye out for the serial numbers.

These numbers can be found on the side with the Monarch’s face, just under the value of £10 in the corner of the note.

Also if you have a serial number on your note that is quite quirky you could cash in thousands.

For example, one seller bagged £3,600 after spotting a specific serial number relating to the year Jane Austen was born on one of their notes.

You can check if your notes are worth anything on eBay, just tick “completed and sold items” and filter by the highest value.

It will give you an idea of what people are willing to pay for some notes.

But do bear in mind that yours is only worth what someone else is willing to pay for it.

This is also the case for coins, you can determine how rare your coin is by looking a the latest scarcity index.

The next step is to take a look at what has been recently sold on eBay.

Experts from Change Checker recommend looking at “sold listings” to be sure that the coin has sold for the specified amount rather than just been listed.

People can list things for any price they like, but it doesn’t mean it will sell for that amount.

We explain further how you can find out if you have a rare coin worth thousands sitting around the house.

Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.

Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories

MY friend and I are lounging by the pool at the Hotel Molitor when a message comes through from her mum: “Are you at the Emily In Paris hotel?”

All she’d done was share a snap of the lido on her Instagram, with zero mention of the Netflix comedy drama that stars a US twentysomething living her best life in the French capital.

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The Parisians might loathe the series but the rest of us love it — it’s one of the streaming giant’s most popular.

In fact, it’s one of the reasons we decided to book ourselves into the five-star hotel to the west of the city, which had a starring role in season three as Emily spent the afternoon sipping drinks by the pool.

It’s hardly in the centre of the action — the Molitor is in the fashionable 16th arrondissement, about 25 minutes on the Metro to the Eiffel Tower — but as a result, it’s a peaceful haven.

The rooms are small but stylish with large, space-age beds, Clinique toiletries and floor-length windows that look out over the huge art-deco outdoor pool.

Hotel guests lounge in Molitor-branded deckchairs and bathrobes poolside, making you feel simultaneously in and out of Paris — this was, after all, where the bikini was first introduced to the world in 1946.

Paris has always been the fashion capital of the world but, when it comes to fun, the city had felt like in recent years like it was losing its mojo.

Millennials looking for city breaks opted for cool Berlin, fun Amsterdam or chic Copenhagen, while Paris was considered better for rich oldies, with its brasseries, pricey department stores and museums.

We were seated next to the DJ decks and served Michelin-quality gourmet food but without the fuss

But it’s now back in vogue, experiencing a a renaissance.

Yes, that is in part because the spotlight is back on Paris, thanks to the recent 2024 Olympics, and Emily In Paris, but it’s also because young Paris has found its voice.

Places like the 11th and 18th arrondissements — the cool, Shoreditch-like parts of the city — are packed with restaurants and bars that have a distinctly Parisian edge but without the old-school fustiness.

Try Pantobaguette, for instance, the hip little eaterie that fuses French and Japanese cuisine.

We were seated next to the DJ decks and served Michelin-quality gourmet food but without the fuss.

We dined on ajitsuke eggs with wasabi mayo, aubergine with white peaches and anchovies with smoked butter to a background of Nineties hip-hop.

Or how about Folderol, selling only gelato and natural wine, where locals sip their evening aperitif while lounging on the kerb.

Oysters and wine

When we’d finished our ice creams, we headed to Bambino, a chic restaurant-cocktail bar where records line the walls and you can enjoy a terrace view of the Eiffel Tower.

Nobody does casual sipping like the French — they’ve turned it into an art form.

In Paris, the cool younger bars we went to were all serving affordable but great wine by the small glass, often out of a pump.

Back at a small neighbourhood bistro in the 18th arrondissement, we joined the locals for an early-evening pitstop at the stripped-back La Trincante, where they had a deal of six oysters and a glass of white wine for €14.

Add to that one extra glass of wine for my friend, and the free basket of bread you get in every French restaurant, and our bill came to less than €10 each.

The city’s flea markets are legendary, especially the Marche aux Puces de Saint-Ouen, which features in the new series of Emily In Paris

Equally astonishing prices could be found at one of Paris’s best flea markets, Marche aux Puces de la Porte de Vanves.

The city’s flea markets are legendary, especially the Marche aux Puces de Saint-Ouen, which features in the new series of Emily In Paris.

But we headed to the 14th arrondissement for a market that’s mainly frequented by cool locals, and browsed jewellery, furniture and handbags.

The prices — maybe 25 euros for a painting, five for a broach — were impossible to resist.

Equally classy were the Parisians who we met at Rock en Seine, a day festival in the west of the city, who in the midst of the main-stage crowd were sipping their afford-able rosé out of dainty plastic wine glasses .

It really was a very cool crowd, who had assembled to see Fred Again, one of the most exciting artists to emerge from the British dance scene in years, play a headline set.

Among other huge stars were Lana del Rey and LCD Soundsystem. Aside from the Reading and Leeds Festivals, he is doing zero UK gigs this year — but is gracing Parisians with his presence. Clearly, Fred knows the city is where it’s at.

I’ve been to a lot of festivals but this one must be the friendliest I’ve attended — forget the French reputation for snootiness, by the end we were on first-name terms with everyone within ten metres.

In fact, we even bumped into some of our new friends at the Eurostar station the following day, on our return to London.

It seemed a fair number of festival-goers had the same idea as us, to head over for Fred Again’s set and spend a couple of days exploring the city.

And why not, because swapping a short-haul flight for a two-hour train journey makes all the difference when on a weekend break.

We arrived in Paris feeling fresh and pulled back into King’s Cross St Pancras feeling, frankly, very well rested.

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Shigeru Ishiba’s election as leader of Japan’s ruling Liberal Democratic party is expected to put pressure on the country’s stocks on Monday morning after Nikkei 225 futures fell 6 per cent following his victory this week.

Ishiba, a former defence and agriculture minister who is set to take over as prime minister on October 1, is a China hawk who has vowed to prevent the nation from falling back into deflation.

The new LDP leader has said he supports the Bank of Japan’s plan to normalise monetary policy, but investors are concerned about his support for heavier taxes on companies and investment income.

Before the winner of the leadership race was announced on Friday, Japan’s Nikkei 225 index had rallied 2.3 per cent and the yen had fallen, suggesting the market was positioned for a win by economic security minister Sanae Takaichi. Takaichi supported stock market-friendly “Abenomics” policies of ultra-low interest rates and fiscal stimulus.

Nikkei 225 futures traded in Chicago fell sharply after the LDP election result announcement.

“The futures market tells us it’s going to be very ugly on Monday. Normally you would look to buy the dip, but on this occasion you would probably want to wait a bit for everything to adjust,” said a trader at one of Japan’s largest investment banks.

“As more had expected Takaichi to win, the yen has been weakening as she had clearly expressed she will not support further rate hikes by the BoJ,” said Ryota Abe, an economist in the Asia-Pacific division of Sumitomo Mitsui Banking Corporation (SMBC).

The yen rebounded moments after Ishiba was announced as the winner and went into the weekend at about ¥142 against the US dollar. SMBC’s Abe predicted the yen would move in a ¥140-¥145 range after Ishiba’s win.

“Expectations for political pressures on BoJ’s future decisions are likely gone. There should be no hurdles for BoJ to deliver additional rate hikes going forward,” he added.

Masatoshi Kikuchi, chief equity strategist at Mizuho Securities, warned investors that Ishiba’s victory was likely to trigger a reversal of the pre-election rally in the Nikkei 225 index.

Kikuchi noted that going into the election foreign investor confidence in Japan had been fragile as a result of uncertainties about the country’s political direction. In the second week of September, when campaigning for the LDP leadership began, foreign investors were net sellers of ¥1.5tn ($10.6bn) in the cash equities market — their largest week of selling Japanese stocks since 1982, according to Kikuchi.

Some investors are concerned about Ishiba’s desire to raise taxes on both companies and income from privately held financial assets, though he clarified that he would not raise taxes on Japan’s new NISA tax-free investment accounts or individual defined-contribution pension plans.

Any attempt to raise taxes on companies and investors could potentially generate major pushback and hit the new prime minister’s credibility if he were forced into a rapid compromise, equity strategists said.

“Near-term price volatility is likely to persist until Mr Ishiba can clarify his stance on areas of investor concern such as corporate governance reform and tax rates on financial asset income,” said Goldman Sachs analysts in a note.

Investors are already on the hunt for buying opportunities and compiling a basket of stocks considered likely to benefit from an Ishiba administration, including those involved in defence and disaster relief. The 67-year-old has advocated establishment of a disaster management agency in the country, which is often hit by earthquakes, typhoons and flooding.

Within hours of Ishiba’s victory, the top three most searched investment themes on Kabutan, a popular online stock-trading site in Japan, were disaster prevention, defence spending and stocks that benefit from the strong yen.

Still, investors said it was unclear how much Ishiba would actually be able to achieve given how divided the ruling party remained.

“Whilst always popular with the LDP party members, he has finally managed to win over enough of his Diet colleagues who have been reluctant to support him before,” said David Mitchinson, a portfolio manager at Japan specialist Zennor Asset Management. “His lack of a strong personal franchise in parliament may constrain his ability to act.”

The LDP leadership race, which produced a record number of candidates, served as a reminder of how fragmented the ruling block had become.

Robert Feldman, an economist at Morgan Stanley MUFG Securities, warned that there continued to be “major economic policy differences” within the party that would not be ended by its selection of a new party leader.

RARE coins can sell for thousands of times their face value – and it’s always worth seeing if you’ve got any lying about.

One coveted 2p coin garnered the interest of collectors across the world due to its unusual wording and sold for £700 at auction.

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Going under the hammer at RWB Auctions on September 25, the copper sold for a whopping 35,000 times its original market value.

It is easily identified by three words as an error from the UK’s Royal Mint means that the 2p coin reads “new pence” instead of “two pence”.

Collectors say this subtle error was likely produced when an old die was used to strike the coin, and very few of these coins exist.

The handful of these coins can be found in sets produced in collaboration between The Royal Mint and Italian drinks company Martini & Rossi.

They were made as part of a promotional giveaway labelled ‘The Great British 1983 Coin Collection’ on the cover.

But although thousands of the sets were released, only a small number feature the rare 2p coin.

“It is worth checking old coin collections for this set, particularly if you were born in 1983,” said Jon White, of RWB Auctions.

“Someone may have bought you one as a baby or as a Christening present. If they happened to get hold of a rare one, then you have a very valuable gift on your hands.”

The auction house has previously sold a scarce Lord Kitchener £2 for £1,000 and an unusual Olympics 50p for £1,500.

How to spot rare coins and banknotes

Rare coins and notes are highly desirable among specialist collectors and could make you a mint if you find one.

Some of the most in-demand pieces can sell for hundreds of pounds.

If you spot an unusual-looking coin in your change, keep hold of it.

Then look up exactly how rare it is. Usually, the rarer it is, the more valuable it is.

You can find out what coins are rare and how they look on The Royal Mint’s website.

You can also determine the coin and how common it is by looking at the scarcity index on specialist coin collector sites.

To work out how valuable it might be, take a look at similar coins that have recently sold on eBay or even at auction.

Remember to look at “sold listings” to be sure that the coin has sold for the specified amount rather than just been listed.

It’s not just coins, rare notes can sell for multiple times their face value.

This includes fivers, rare £10 notes as well as higher denominations.

One of the main distinguishing marks of a rare note is the serial number.

These numbers can be found on the side with the Monarch’s face, just under the value of £10 in the corner of the note.

Low serial numbers or something quite quirky can see you cash in thousands.

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Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.

Kemi Badenoch, the Conservative leadership contender, has claimed that not all cultures are “equally valid”, as the party gathered for an annual conference that looked set to be dominated by immigration.

The former business secretary criticised “recent immigrants who hate Israel”, adding: “I don’t think those who bring foreign conflicts here should be welcome.”

Asked on Sunday by the BBC’s Laura Kuenssberg who exactly she meant, Badenoch replied: “You want me to say ‘Muslims’, but it isn’t all Muslims. I’m not going to play that game.”

Asked which cultures were “less valid?” she replied that when she was out canvassing a woman answered the door to her and said: “I can’t speak to you, I will get my husband.”

“I don’t think that is as equally valid as our culture,” Badenoch said.

Separately, in a Sunday Telegraph article, she wrote: “We cannot assume immigrants will automatically abandon ancestral ethnic hostilities at the border, or that their cultures are equally valid. They are not.”

Badenoch is the bookmakers’ second favourite to succeed Rishi Sunak as Tory leader, but former immigration minister Robert Jenrick is regarded as the clear frontrunner.

Jenrick, speaking ahead of the four-day conference in Birmingham, said immigration was the most important issue in the contest, but that the NHS and economy were key too.

He has promised to end the era of “mass migration”, imposing a legal cap on immigration in the tens of thousands, as well as promising to leave the European Convention on Human Rights, which he claims impedes Britain’s attempts to control its borders.

The Tory conference has been described as an extended “beauty pageant” for the four contenders vying to succeed Sunak, who will be replaced on November 2.

Tom Tugendhat, former security minister, and James Cleverly, former foreign secretary, are both seen to be flagbearers for the party’s moderate centre.

Sunak is expected to appear briefly in Birmingham on Sunday to appeal for unity and thank party members for their work during the party’s general election campaign.

He will then head home on Sunday evening, clearing the way for the four leadership contenders to court MPs and party members at various fringe meetings and two set-piece events in the main hall.

On Monday and Tuesday, the four candidates will face questions from the floor and on Wednesday they will make speeches setting out their pitch.

Tory MPs will next month decide on a shortlist of two, with party members having the final say in the contest. The result of the run-off will be announced on November 2.

There will be unwelcome distractions for the party offstage during the Birmingham conference, with Boris Johnson promoting his memoirs Unleashed and making claims such as his abortive plot to send special forces to the Netherlands to extract Covid-19 vaccines.

Liz Truss, another former premier, will be in Birmingham on Monday, offering advice on how to generate more economic growth.