The markets seem to be ignoring US President Obama's warning that the US is at risk of defaulting this month, stocks are barely moving today, Treasury yields are higher and the yen is weaker, not the market moves one would expect just two weeks away from a potential US default. A quick straw poll around our office found that most people are concerned about what's going on in the US, so too are the heads of Wall Street, who headed to Washington yesterday to relay their fears to the President. Is it blissful ignorance? Partly, the market has lived through a government shut-down many times before, but a default by the US is unchartered territory and is thus difficult to price for. However, there is some calculated ambivalence going on as well, since the longer this Congressional impasse lasts the more likely QE will remain on-going. 11.56 The Cypus Mail reports that the crisis-torn Mediterranean island is pulling out of the 2014 Eurovision Song contest because of its economic woes. Here's the statement from state broadcaster CyBC: It also took into account the additional reduction of the CyBC budget for 2014 and the need for drastic cuts in programming expenditure. 11.50 Vodafone's chief financial officer Andy Halford is leaving the company after 15 years, just weeks after the telecom giant's major $130bn deal with Verizon. Emerging markets boss Nick Read will take his place. 11.23 Back in the stock market, Sports Direct is under pressure after chief executive Dave Forsey and finance director Bob Mellors offloaded 1,900,000 shares at 680p apiece, raising £6.46m each. The sale has weighed on the sporting goods retailer's shares, which are off 1.9pc in late morning trade. 11.00 In the wake of those positive eurozone figures, the euro has jumped to a 10-month high against the dollar, while borrowing costs have fallen, signalling new confidence in the region's recovery. The euro now stands at $1.36, while Spain has had a successful bond auction, raising €3.5bn in five and 10-year bonds. The benchmark 10-year bond sold at 4.27pc, against 4.5pc a month earlier. 10.20 Back in the eurozone, retail sales have risen at a much faster rate than forecast. The volume of retail sales increased by 0.7pc between July and August, blowing away economists' forecasts of 0.2pc. Meanwhile, July's growth was revised upwards from 0.1pc to 0.5pc. Although retail sales are still 0.3pc down on last year, the figures are the latest indicator of a revival in the eurozone. 10.00 Those services figures also painted a strong picture of the jobs market and future growth. Over 50pc of the companies surveyed forecast an increase in activity in 12 months, while Markit said new jobs were near a six-year high. The figures have been warmly welcomed by economists: David Tinsley, UK economist at BNP Paribas Looking across the third quarter, our weighted measure of the manufacturing, construction and services PMIs stands at 59.5. This is the highest reading of this series since the second quarter of 1997. Back then UK GDP increased by 1.2pc on the quarter, and averaged growth of 1.0pc per quarter over the next year. It remains to be seen whether the UK can repeated anything like that feat, and we would prudently expect some cooling in the data in coming quarters. But for now there is no mistake the economy is growing jolly fast. Jeremy Cook, chief economist at World First One caveat to all this good news is where the growth within the service sector will come from - banks and business-to-business services are benefiting from the housing market and corporate activity improvements respectively, however, consumer-facing companies are not progressing at the same rate. The pressure on consumers is the obvious factor here and will continue as wage negotiations fall short of price increases. Putting the recent PMIs together with the rest of the news for the quarter we are happy with our appraisal that the UK economy grew in Q3 at rate of around 1.1pc. 09.52 Aviva has pleased the market with its $2.6bn sale of its US business, a deal that has sent the insurer to the top of the FTSE 100 leaderboard this morning. The British group has sold the business for $800m more than the price it originally announced in December, and traders have pushed Aviva shares up 3.1pc. 09.50 The pound has rebounded against the dollar on those services figures, having lost some of its value earlier this morning. It is now trading at $1.623 Pound v dollar in last two days. 09.30 UK services data is out and growth continues to impress. September's PMI reached 60.3, only slightly down from August's blowout 60.5. Markit, which compiles the figures said September rounded off the fastest expansion to the sector since 1997. Chris Williamson, Markit's chief economist said that the figures suggested the economy had expanded by as much as 1.2pc in the third quarter of the year. Businesses in the vast service sector reported an ongoing growth spurt in September, expanding at a rate just shy of August's recent high. The buoyant data follow similar upbeat surveys of the manufacturing and construction sectors, and collectively the surveys suggest the economy will have expanded by as much as 1.2pc in the third quarter; its fastest growth rate since the pre-crisis days of 2007. 09.05 The eurozone recovery also seems to be gathering pace: The services sector has grown at the fastest pace since June 2011, according to Markit's PMI data. The composite index - which combines manufacturing, services and construction - hit 52.2 in September, against 51.5 in August - a 27 month high. Markit's Chris Williamson said the survey "bodes well for ongoing growth in the final quarter of the year." Growth is being led by Germany, but France has also now returned to growth. Even more encouraging are the upbeat survey data for Ireland and Italy, both of which show signs of returning to robust growth, and Spain has also stabilised, as ongoing weakness in the domestic economy is offset by a strong upturn in exports. 08.55 Services figures for Italy, France, Spain and Germany are out, and the big news is a return to growth in Italy, the first expansion for 28 months. Markit's Purchasing Managers' Index, a survey in which any number over 50 indicates growth, put the sector at 52.7 in September, against 48.8 in August. The news will come as good news to Prime Minister Enrico Letta, who won a crucial vote of confidence yesterday. However, Spain's sector contracted after expanding in August. Here are the figures for September: Italy: 52.7 (August 48.8) France: 51.0 (August 48.9) Germany: 53.7 (August 52.8) Spain: 49.0 (August 50.4) 08.40 Here's the schedule for today's economic releases: 08.45 Services PMI for Italy, France, Germany, Spain • 09.00 Composite and services PMI for the eurozone • 09.30 Services PMI for the UK • 10.00 Eurozone retail sales • 13.30 Initial jobless claims figures from the US Eimear Daly, the head of market analysis at Monex Europe, says the UK's recent services growth will be difficult to maintain. UK Services PMI will be the final release of third quarter purchasing managers indices and, with services accounting for 74pc of the UK economy, it is also the most important. In August, the survey of services sector performance defied expectations of a slowdown in growth and surged to within a few ticks of its highest level on record. Underpinning the sector's performance was the highest level in new business orders in 16 years, showing that the services economy is gaining momentum. Services output is now less than 1pc below its 2008 peak and within a whisker of a full recovery. The sector is, however, nearing its full capacity and with investment levels in the UK only a half a percentage point above their post 2008 trough, current growth rates cannot continue without a resurgence of business investment. 08.32 Following the Financial Conduct Authority's proposed clampdown on payday lenders, the Department for Business, Innovation and Skills has published a separate study finding that lenders are failing to comply with new guidelines introduced last year. The Government department found: Nearly a quarter of consumers said they were put under pressure to extend their loan and approximately half of those surveyed said that lenders did not explain the risks to them of doing so One in five customers reported that the lender did not ask about their finances when taking out an initial loan When it came to affording a rollover, over 60pc of customers said lenders didn't appear to check their finances Jo Swinson, the consumer minister said "the industry has failed to self-regulate effectively." We warned the industry months ago that if it didn't get its house in order we would step in. Now the FCA has come out today and published strong actions which will tackle the problems the market has failed to address. 08.20 BP is leading the FTSE 100 up this morning after winning its appeal to cap settlement payments from the Gulf oil spill. The company is up 1.6pc at 439.2p. Here's the company's statement on the victory: BP is extremely pleased with today's ruling by the U.S. Court of Appeals for the Fifth Circuit setting aside the claims administrator's interpretation of the business economic loss framework in the settlement agreement BP reached with the Plaintiffs' Steering Committee last year. Today's ruling affirms what BP has been saying since the beginning: claimants should not be paid for fictitious or wholly non-existent losses. We are gratified that the systematic payment of such claims by the claims administrator must now come to an end. As part of today's decision, the Fifth Circuit has also reversed the District Court's denial of BP's motion for a preliminary injunction staying the payment of business economic loss claims under the agreement. The Fifth Circuit has ordered the District Court to "expeditiously craft" an injunction that stays payments to people who did not suffer "actual injury traceable to loss from the Deepwater Horizon accident" until the matter is "fully heard and decided through the judicial process." The Fifth Circuit has remanded the matter for further proceedings in the District Court.BP is assessing the further implications of the Fifth Circuit's decision and will issue an additional statement in due course. The FTSE is currently up 0.29pc at 6,455.85. 08.15 The Civil Aviation Authority has ruled that airport charges at Heathrow cannot rise above inflation, rejecting calls for a 4.6pc rise over five years. Louise Armitstead has more in her City Briefing: Colin Matthews, boss of Heathrow, said the "proposal is the toughest Heathrow has ever faced" and has warned that the group will "now carefully consider our investment plans." He said the cap could have "serious and far-reaching consequences for passengers and airlines at Heathrow." Plus the proposals "risk not only Heathrow's competitive position but the attractiveness of the US as a centre of international investment." Meanwhile the CAA said that Gatwick's proposal of an annual rise of 0.5pc above inflation is a "fair price."Gatwick has said it "cautiously welcomes" the ruling. Willie Walsh will be pleased - last week the airline boss called for Mr Matthews to be sacked for "ripping off customers" by charging excessive fees that airlines then pass on. 08.05 House prices have risen 2pc in the last three months, and 6.2pc in the last year, according to the latest data. Halifax says this morning that the average house price rose to £170,733 in the third quarter of the year. However, the quarterly rate of price rises has slowed slightly, down from 2.1pc in the previous three quarters. Martin Ellis, Halifax's housing economist, said that while demand continued to outstrip supply, housebuilding had picked up recently. Housing demand has risen more quickly than supply in recent months, putting upward pressure on prices. Demand has increased against a background of low interest rates and higher consumer confidence underpinned by signs that the economy has begun a sustainable recovery. Official schemes, such as Funding for Lending and Help to Buy, also appear to have boosted housing demand. There are signs that supply is beginning to respond to the pick-up in demand, which if continued should help to constrain the upward pressure on prices. The recent strengthening in house prices is 07.55 In Greece, the leader of the country's far-right Golden Dawn part was jailed last night pending trial on charges of founding and belonging to a criminal political group with neo-Nazi ideology. Nikos Michaloliakos, who denies the charges, was jailed late last night. He was cheered by supporters as he was taken to court in Athens by armed police last night. Image: AFP 07.45 Regulators have unveiled tough new rules for payday lenders this morning. The Financial Conduct Authority has warned companies such as Wonga that "the clock is ticking." Here's more from Jessica Winch. The City regulator said payday lenders will have to carry out affordability checks on borrowers and will only be able to roll over loans twice. It will also restrict the number of times a continuous payment authority (CPA) can be used, where lenders dip into customers' accounts to recover debt without needing permission. There will also be tighter restrictions on what payday lenders can say in adverts and the FCA has promised to ban any that are misleading. The watchdog said clear "risk warnings" will have to be displayed on all adverts and promotions, as well as information on debt advice. 07.20 Spain's jobs crisis has reached its zenith, according to the government's budget minister. Cristobal Montoro told the TVE television station that Spain will grow next year and create jobs. His comments came after unemployment in the region rose by 26,000 in September to 4.7m, the first rise since February, according to figures released yesterday. Mr Montoro said: The deterioration of the job market has hit bottom, Spain in 2014 will be in condition to grow and create jobs. 07.15 The US government shutdown will enter its third day after negotiations between Republicans and Democrats including Barack Obama failed to reach common ground. Obama said he refused to negotiate over changes to health care laws, while Republicans are demanding that the President gives way. Senate Democrat leader told Republicans he "will not stand" for their tactics but the White House issued a late statement saying Obama hopes "common sense will prevail." Congress's Republican leader John Boehner said: The president reiterated one more time that he will not negotiate. All we're asking for here is a discussion and fairness for the American people under Obamacare. 07.10 Here are the top business stories in the Business section of today's Daily Telegraph: Graham Ruddick reports that Tesco chief executive Philip Clarke has insisted his turnaround plan is on track after the retailer's sales fell in all its international businesses. Philip Aldrick writes that Bank of England governor Mark Carney has warned that Britain's economic recovery requires growth outside of London and the South East. Katherine Rushton in New York reports that Barack Obama has warned Wall Street that it should be concerned as US debt ceiling talks go to the wire. And Louise Armitstead writes that business group the Institute of Directors has called for more cuts to corporate taxes after David Cameron said tax cuts are not a dirty word. The Financial Times (£): US federal authorities have seized more than $3m of Bitcoins after closing down Silk Road, the online marketplace that allegedly allowed more than $1bn of illegal drugs and services to be bought using the virtual currency. The Times (£): Ofcom is planning for a new era of mobile telephony ahead of a possible sale of the necessary spectrum - the frequencies used to carry mobile phone signals, data and television - as soon as 2018. The Guardian: Ryanair has fallen foul of the French authorities after a court ordered the budget airline to pay more than €9m in fines and damages for breaking laws in Marseille.