CHINA held spectacular shows in Beijing to mark the one-year countdown to the 2008 Beijing Olympics; observers were worried about air pollution and its effect on athletes' performances...The leaders of North and South Korea agreed to meet later in August for the first summit since 2000...Unusually serious monsoon flooding in South Asia affected some 30 million people with the risk of water borne diseases...Pakistan's President Musharraf decided not to call a state of emergency despite insistent rumours that he was about to do so...In Iraq five Sunni MPs announced a boycott of cabinet meetings, leaving the national unity government without any Sunni representation...In the United States Virgin America began its first regular low-cost flights between New York; Los Angeles and its hub San Francisco; Washington is likely to be added later.

Bulletin Headlines of the Week l SUNDAY/MONDAY: Total Number Of Foreigners In Employment Falls(Latest figures suggest that about 5'000 foreigners were unemployed in the Balearics, most of them from outside the European Union). l TUESDAY: Cash Concern Over Palma's Grand Station (The new centre-left Balearic coalition government said there might be a “black hole” of 40 million euros). l WEDNESDAY: British Food Outlets Brave EU Ban (British food importers were affected by the export ban imposed by the EU after an outbreak of foot-and-mouth disease in the UK). l THURSDAY: Rain Closes Beach And Causes Flooding (Paguera beach closed and there was flooding in Calvia and Andraitx). l FRIDAY: The Great Property Rental Swindle(Spanish tax authorites planned to “crack down” on property owners renting holiday accommodation but not declaring the income). l SATURDAY: Balearics Facing Summer Gridlock(Survey of Balearic residents would like to see fewer tourists).