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Ruth Gregory, senior UK economist at Capital Economics, says that the strong performance in the services sector in August suggests it is "holding up better than the industrial sector".

She says: "Encouragingly, the forward-looking indicators suggest that the sector should maintain its current pace of growth over the coming months too. The new orders index rose, while the increase in the employment index also indicated that firms remain confident enough in the outlook for demand to pick-up the pace of hiring.

She adds: "Combining the services survey with its sister reports on manufacturing and construction suggests that overall economic growth held steady at 0.4% or so. As such, today’s figures provide reassurance that the rebound in GDP growth in the second quarter has been sustained in the third quarter so far."

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Chris Williamson, chief business economist at IHS Markit, which compiles the survey of service sector activity, says: "Faster service sector growth comes as much needed welcome news after disappointing manufacturing and construction PMI surveys in August.

"The survey data indicate that the economy is on course to expand by 0.4% in the third quarter, a relatively robust and resilient rate of expansion that will no doubt draw some sighs of relief at the Bank of England after the rate hike earlier in the month."

Earlier this week, new figures showed that growth in the UK construction sector slowed to a measure of 52.9 in August while manufacturing eased to 52.8.

Activity in the UK's services sector rose in August to 54.3 from 53.5 in July according to a survey of purchasing managers by IHS Markit and the Chartered Institute of Procurement & Supply.

Image source, Ford

More on those new car registration figures from the SMMT.

While sales rose in August, compared to the same month in 2017, in the year to date registrations fell by 4.2% which the SMMT said is "in line with forecasts after a turbulent first eight months".

Here are the UK's best selling cars for August and the year to date:

Image source, SMMT

Image source, Reuters

Barratt Developments is doing well - earlier today the housebuilder reported full-year profits up 9.2%.

Its share price is up only slightly this morning. Why?

Laith Khalaf, a senior analyst at Hargreaves Lansdown, says it is down to "three things which are out of Barratt’s control - Brexit, interest rates and Help to Buy".

"Clearly there are concerns that withdrawal from the EU may not be an entirely smooth ride, and that puts a dampener on stocks like Barratt, which are plugged into the domestic economy.

"Meanwhile the Bank of England is raising interest rates, albeit slowly, but that’s a reversal of direction from the last ten years of monetary policy. Indeed, many first time buyers may never have seen an interest rate rise in their adult lives, and this could constrain house price growth.

"Finally, the end of the Help to Buy scheme is hoving into view, and unless the government extends this in some form beyond 2021, that spells the removal of a key lynchpin in the new build property market."

New car registrations in August rose by 23.1% to 94,094 compared to the same month last year, according to the Society of Motor Manufacturers and Traders.

One on twelve cars sold were hybrid, plug-in hybrid and pure electric cars, SMMT says

Image source, Getty Images

Toyota plans to recall around one million vehicles, including its hybrid Prius model, due to a fire risk.

Following a domestic recall announcement by Japan's transport ministry, Toyota said there is a short circuit risk in affected vehicles.

The insulation on the wires on the hybrid power control unit can wear down over time due to dust and vehicle vibrations, causing a short circuit.

The issue affects vehicles produced in Japan between June 2015 and May 2018, and includes the plug-in version of the Prius and the C-HR compact crossover SUV sold in North America Japan, Europe, Australia and other countries.

Roughly half of the recalls will take place in Japan, Toyota spokesman said.

Only the Prius model would be recalled in the US, where around 192,000 vehicles were affected. he said.

He added that the issue had led to one incident of a short circuiting in Japan which produced smoke from the vehicle.

William Hill is leading the FTSE 250 risers after announcing a deal to extend its reach across the US.

The bookmaker's share price rose by 3.7% to 257.65p.

Overall, the FTSE 250 is down 0.13% at 20,520.98.

Gambling operator GVC Holdings is the biggest riser on the FTSE 100. It's share price is up 1.1% at £11.08.

Paper and packaging group Mondi is the biggest faller, down 2.3% at £20.99.

The wider FTSE 100 is off 0.44% at 7,425.04.

Image source, Reuters

Chinese stocks fell sharply on Wednesday after a survey showed growth in China's services sector weakened, external while investors remained nervous about escalating trade tensions with the US.

Hong Kong's Hang Seng index slumped 2.3% to 27,326.12 while the Shanghai Composite fell 1.7% to 2,704.34.

The benchmark Nikkei 225 fell 0.5% and South Korea's Kospi index dropped 1%.

Today Programme
BBC Radio 4

For many, the economy is not working - it no longer fulfils the promise of rising living standards - that's the verdict of he Archbishop of Canterbury Justin Welby who argues that we need to hardwire justice into the economy in a report by the Commission on Economic Justice set up by left-leaning think tank the IPPR.

BBC economics editor Kamal Ahmed says the report is significant because the government and all political parties "know this touches a raw nerve - this idea that living standards simply haven't moved for many people over many, many years."

The Archbishop told Kamal:

"People suffer from injustice in the economy.

"People suffer from the need to go to a food bank, even when you've got two adults both working.

"People suffer from being caught in a debt trap, because they can't replace a basic bit of equipment they need like a new stove, a washing machine - let alone have luxuries.

"I think one of the regrettable things in the last few years has been to call what we used to call the minimum wage a 'living wage'.

"We need a living wage because that enables people to live with dignity, and the dignity of the human being is fundamental to our understanding of what a just economy is about."

Today Programme
BBC Radio 4

Argentina and Turkey are heading towards economic crises. The IMF is expected to rush through a bailout of Argentina some time this week.

Mohamed El Erian, former boss of bond investor Pimco who is now chief economic adviser at German insurer Allianz, says investors are exiting emerging markets.

"They were over-exposed, they now realise that, and they are exiting. So what you get is countries that are very distinct, like Argentina and Turkey, having the same fall in their currencies, even thought their initial conditions were different, and even though they've responded very differently."

"Those two were particularly vulnerable, because of some domestic conditions, plus they had a lot of foreign investors in there," Mr Al Erian says.

The FTSE 100 opened 0.26% lower at 7,438.35.

The FTSE 250 is also down in early trading, down 12.83 points at 20,535.06.

Image source, Reuters

In May, the US Supreme Court made a landmark ruling that could allow states across the country to legalise sports betting.

William Hill is making hay on that ruling by selling a 20% stake in its US business to Eldorado Resorts which will allow it to offer both digital and land-based sports betting and online gaming in America.

William Hill says the partnership with Eldorado means the UK bookmaker's US reach "now extends to 13 states where sports betting is either legal or sports betting bills are tabled".

It says: "Within weeks the partners will open William Hill sportsbooks in five properties across three states – The Tropicana in Atlantic City, New Jersey; The Mountaineer Casino Racetrack and Resort in West Virginia and three casinos in Mississippi – The Lady Luck Casino in Vicksburg, Isle of Capri in Lula and Tropicana Casino in Greenville."

Today Programme
BBC Radio 4

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There may be some fireworks in the US later on when the leaders of some of the world's biggest technology firms - including Twitter's chief executive Jack Dorsey (pictured) - appear before the US Senate.

Dipyan Ghosh, a former privacy policy expert at Facebook and tech adviser to the White House, says that tech giants are caught between two fires.

"We've seen a tremendous amount of consternation in the US Senate over the practices of internet companies.

"Conservatives are very concerned that the internet platforms are suppressing conservative media. Democrats are, on the other hand, very concerned that the internet platforms are just not doing enough in regard to disinformation and hate speech, and I think that we're going to see a lot of questioning as to what is going on on these platforms."

Image source, AFP

Elon Musk is making headlines again - this time for sending emails to a Buzzfeed journalist, external where the tech entrepreneur renewed his attacks on British diver Vernon Unsworth who was involved in rescuing 12 young footballers and their coach from a Thai cave.

Buzzfeed's Ryan Mac sought comment from Elon Musk after receiving word that Mr Unsworth intended to sue Mr Musk for defamation.

Mr Mac received an email labelled "off the record" calling him an "a*****e" and making more incendiary accusations about Mr Unsworth.

A follow up email refuted accusations from Mr Unsworth that Mr Musk had been asked by the Thai government to leave the scene of the cave rescue.

He sent Mr Mac copies of letters sent by Thai prime minister Prayut Chan-o-cha thanking him and Space-X for its assistance in building the submarine, and inviting Mr Musk to visit the country again to discuss collaborations on technological innovations.

Former Bank of England governor Mervyn King, now Lord King, blasts Brexit preparations as "incompetent".