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HARI SREENIVASAN: Two Americans won the 2012 Nobel Prize in Economics today for research on market design and matching. It affects everything from placing doctors in the right hospitals to pairing students with the schools they most want.

The honorees are Alvin Roth of HarvardUniversity, and currently a visiting professor at StanfordUniversity, and Lloyd Shapley, a professor emeritus at the University of California, Los Angeles.

Wall Street had a strong start to the week on news of rising retail sales and better-than-expected earnings at Citigroup. The Dow Jones industrial average gained 95 points to close at 13,424. The Nasdaq rose 20 points to close at 3,064.

A 14-year-old Pakistani girl who was shot by a Taliban gunman was flown to England today for medical treatment.

We have a report from Lindsey Hilsum of Independent Television News.

LINDSEY HILSUM: The ambulance drove slowly from Birmingham airport.

Inside, Malala Yousafzai was still sedated, as she has been since the Taliban bullet penetrated her skull. Doctors from the QueenElizabethHospital who were already in Pakistan have been attending to her. They believe she has a reasonable chance of recovery in the unit which has treated thousands of soldiers injured in Iraq and Afghanistan.

Malala left the military hospital in Rawalpindi this morning flying to the U.K. via Dubai.

WILLIAM HAGUE, British Foreign Secretary: She is an inspirational example to young people. It was a cowardly attack on her and her school friends, trying to retaliate for her own campaign for good access to education for girls in Pakistan.

LINDSEY HILSUM: Yesterday in Karachi, thousands demonstrated against the shooting and for Malala's cause, girls’ education, the crowds organized by one of Pakistan's political parties, the MQM.

But despite claims that the attack has united Pakistanis, the Islamist parties, who frequently stage protests against America, have not come out on the streets to support the teenager. In Karachi, they have named a school after Malala, a generation of girls who will never get an education if the Taliban prevail.

Some have called it a tipping point. The fate of Malala Yousafzai has come to symbolize the choice Pakistan faces. It can let the extremists have their way or reject them and everything they stand for.

HARI SREENIVASAN: In another development, more than 100 militants attacked a Pakistani police station overnight south of Peshawar. The incident triggered a gun battle that raged there for several hours. At least six policemen were killed, including two who were beheaded. A dozen others were wounded.

In the Philippines, Muslim rebels agreed to a peace pact with the government after decades of fighting. The framework deal will give the Muslim minority broad autonomy in the south of the mostly Roman Catholic nation. In exchange, the rebels must end all violence. The pact was signed in Manila's presidential palace.

The country's president and the leader of the rebels spoke afterward.

AL HAJ MURAD EBRAHIM, Moro Islamic Liberation Front: Today, we extend the hands of friendship and partnership to the president and the Filipino people as we jointly embark on the historic journey to rebuild our homeland.

PRESIDENT BENIGNO AQUINO III,Philippines: Much work remains to be done in order to fully reap the fruits of this framework agreement. We have commitments to fulfill, people to lead, and dream to achieve.

HARI SREENIVASAN: One al-Qaida-linked group, Abu Sayyaf, has not been part of the peace process. But negotiators said they hope the agreement will isolate the extremists.

The U.S. Food and Drug Administration has widened a warning about medicines made by a specialty pharmacy near Boston. The New EnglandCompoundingCenter sold tainted steroids linked to an outbreak of fungal meningitis. As of today, there were 212 cases nationwide, and at least 15 deaths. Now the FDA says it's investigating other illnesses that may be tied to the company's products.

 Those are some of the day's major stories.