COVER

Sinking Feeling

With U.S. demand slowing, Asia's economies are hurting. How bad will the regional slowdown be? And who can expect to take the hardest hit?

Tough Love

Prime Minister Koizumi is telling it like it is: it will hurt bad. Real bad.

TRAVEL

ASIA

Beijing Bags It

China gets its coveted 2008 Olympics. Now — can it pull them off?

A Dream in Tatters

When a mining venture goes bad, an Australian couple pays the price: seven years in a Lao jail

Summer of Discontent

A fight between Cathay Pacific and its own pilots leads to sackings, grounded flights and airport chaos

ARTS & ENTERTAINMENT

Keeping It Reel

Don't look for magic swords in a Feng Xiaogang movie. He prefers contemporary comedies

BRIEFING