  4U0114$+$65 is one of the slowest known X-ray pulsars. We present an analysis
of a pointed observation by the XMM-Newton X-ray telescope. The energy-resolved
light curve, the time-resolved X-ray spectra provided by the EPIC cameras on
board and the first high-resolution spectrum of this source, provided by the
Reflection Grating Spectrometer, were analysed. An X-ray pulse of $9350\pm 160$
s was measured, confirming the secular spin up of this source. We also fit the
pulse-phase-resolved spectra with Comptonisation models. These models imply a
very small ($r\sim 3$ km) and hot ($kT\sim 2-3$ keV) emitting region and
therefore point to a hot spot over the neutron star (NS) surface as the most
reliable explanation for the X-ray pulse. The long NS spin period, the spin-up
rate, and persistent X-ray emission can be explained within the theory of
quasi-spherical settling accretion, which may indicate that the magnetic field
is in the magnetar range. Thus, 4U 0114$+$65 could be a wind-accreting
magnetar. We also observed two episodes of low luminosity. The first can be
explained as an absorption by an over-dense structure in the wind of the donor.
The second episode may be due to temporal cessation of accretion onto one
magnetic pole caused by non-spherical matter capture from the structured
stellar wind. The light curve displays two types of dips seen during the
high-flux intervals. The short dips, with durations of tens of seconds, are
produced through absorption by wind clumps. The long dips might be associated
with the rarefied interclump medium. We also found evidence of emission lines
in the X-ray photoionised wind of the B1Ia donor. The Fe K$\alpha$ line is
highly variable and much weaker than in other X-ray binaries with supergiant
donors. The degree of wind clumping, measured through the covering fraction, is
much lower than in supergiant donor stars with earlier spectral types.
