“In the business world, the rearview mirror is always clearer than the windshield”. Warren Buffett

1. ISM services-sector index rises to 53.3% in August — The Institute for Supply Management stated its service-sector index rose to 53.3% in August from 52.7% in July. Economists surveyed by MarketWatch expected the services index to drop to 51.0%.
2. 25 German MPs rebel in prelim European Financial Stability Facility votes — twenty-five lawmakers from Germany’s ruling coalition refused to back a draft law that would boost the powers of the euro zone’s rescue mechanism, underscoring the risk that Chancellor Angela Merkel might fail to secure a conservative majority for the measure.
3. New York subpoenas investors in Goldman securities — New York prosecutors investigating Goldman Sachs (GS) over its mortgage bonds have reportedly subpoenaed Morgan Stanley (MS), hedge funds and other parties that invested in the securities.
4. ECB, Bank of England on hold — The European Central Bank left its key lending rate unchanged at 1.5%; the Bank of England also left its key interest rate on hold at 0.5% and kept its quantitative-easing program on pause.
5. Obama outlines $447B program to reduce unemployment — President Obama unveiled a $447B plan to bring down unemployment, including $240B in payroll tax relief, $49B for extending unemployment insurance, and $50B for transport infrastructure.
6. BofA mulls plan to axe 40,000 jobs — just as President Obama looks to create jobs, Bank of America (BAC) is considering a plan to slash 40,000 positions over a number of years, The Wall Street Journal reported.

The week ahead — Economic data from Econoday.com: