Japan industrial production drops again

Tokyo (CNN) -- Japan added to global growth jitters on Friday by posting unexpectedly weak industrial production numbers for July and a muted outlook for August and September.

Economists had been expecting a 1.7% increase in output from the manufacturing sector from June, boosted by the effects of reconstruction spending in the tsunami-hit Tohoku area.

Instead, preliminary government data suggested that production sank 1.2% in July. Manufacturers are now forecasting production to increase 0.1% in August, then fall 3.3% in September.

Masamichi Adachi, senior economist at JPMorgan in Tokyo, described the data as "incredibly poor," noting that if manufacturers' forecasts were accurate, industrial production would decline for three consecutive quarters -- a prelude to all five of Japan's recessions since 1985.

If external demand remained downbeat, it would be very hard for Japan to avoid recession number six, the former Bank of Japan official said.

Disgraced Party chief looms large over China's leadership

Beijing (CNN) -- As China looks to usher in its next generation of leaders, one of the messiest political scandals to hit the ruling Communist Party in years continues to fester.

Two weeks after Gu Kailai was given a suspended death sentence in connection with the death of a British businessman, many are wondering: What will happen to her husband, Bo Xilai?

Bo, 64, is a Communist Party "princeling." His father was a contemporary of Chairman Mao and Deng Xiaoping, and until recently Bo was a rising star in Chinese politics.

He was already in the party's 25-member Politburo and was seen as a contender for the nine-member Standing Committee that runs China.

But his political career unraveled abruptly when his wife, a lawyer and business consultant, was accused of murdering businessman Neil Heywood.

Welcome to the IR/GSI Regional Blog

Welcome to International Relations and Global Social Issues 2012-13. Over the course of the year you will be reporting on the major events of the world through your regional blog. All of you will receive a detailed instructional sheet on how to submit, how to comment and the other elements of this portion of the course. Good luck and enjoy learning about your world...Mr. Bailey