COVER
Al-Qaeda's New Star Rises (World)
Abu Bakr al-Baghdadi is creating his own Islamic state in Iraq and Syria. How long before he targets the West?
VIEWPOINT
Rouhani's Real Test
The Iranian President may find domestic reforms even harder to achieve than a nuclear deal
The Sky's Not the Limit
China's new claim on airspace isn't just about sovereignty but advancing its place in the world
UNITED STATES
Navy Sinks in Hookers and Bribes Scandal (Nation)
How the service steered into an alleged supply scam that has cost taxpayers nearly $20 million
LETTERS
Haiyan's Wake (Conversation)
DESIGN
Ford Is Back in the Saddle With New Mustang (Cars)
Inside the four — wheeled American idol — and the risky plan to sell it to the rest of the world
BUSINESS
The Original Wolf of Wall Street Carl Icahn Returns (Investing)
The world's most ravenous capitalist is taking on the world's most valuable firm, Apple
THE CULTURE
A Fantasy Fan Visits The Hobbit (Movies)
TIME's Lev Grossman sees where the magic happens
How to Get to Sochi (Travel)
It's not too late to crash the Winter Olympics. (And if you're thinking World Cup, book now)
10 Questions for Emma Thompson
The only person with Oscars for acting and writing, the Brit talks nannies, money and dating Dr. House