“Markets are constantly in a state of uncertainty and flux, and money is made by discounting the obvious and betting on the unexpected.” — Soros

1. Japan’s Q2 GDP growth slows and misses estimates — Japan’s economic expansion decelerated in Q2 to an annualized 2.6% from 3.8% in Q1 and missed consensus of 3.6%. Growth was dragged down by an unexpected drop in capex, although private consumption topped forecasts.
2. U.S. Regulator & CFTC Subpoenas Banks Over Long Warehouse Queues— Reuters, U.S. derivatives regulator subpoenaed Goldman Sachs Group Inc. (GS) and JPMorgan Chase & Co. (JPM) for documents relating to their warehouses for aluminum and other metals. The speculation comes amid allegations that warehouse companies artificially boosted the price of metals, particularly aluminum. Other companies that are being probed include Glencore (GLNCY.PK) and Noble Group (NOBGF.PK).
3. Eurozone exits recession as Germany, France, Portugal grow — Eurozone GDP expanded 0.3% on quarter in Q2, signaling an end to the region’s recession. The growth represented a recovery from contraction of 0.3% in Q1 and topped consensus of +0.2%. Germany expanded again in Q2 after GDP was flat in Q1, boosted by domestic demand, fixed capital formation and a trade surplus. France exited recession, as did – most surprisingly – Portugal, whose economy grew 1.1%.
4. Asset Class Performance YTD — from BIG, below is an updated look at the performance of various asset classes (ETFs) during the month of August.

ETFs Aug 14 2013

The week ahead — Economic data from Econoday.com: