Here are the business stories making the headlines across Scotland and the UK this morning.
End of an era as Northern Hotel closes down
The doors have shut at Aberdeen’s Northern Hotel for good with confirmation its bar has closed due to spiraling energy bills.
Rooms at the iconic Great Northern Road business were mothballed last month in an attempt to keep the business afloat.
At the time the Clifton Bar, which is on the same premises, remained open with hopes its loyal band of regulars could help it survive.
However, owner Steven Finnie has now confirmed to the P&J that the pub and hotel have both now shut permanently with question marks now raised about the future of the striking landmark.
Spiralling costs hit business confidence in Scotland
Rising inflation and concerns over the economy have sapped confidence in Scotland’s business community, The Times reports.
A quarterly survey by the Scottish Chambers of Commerce makes grim reading as companies cite a growing list of financial pressures that mean profits are being eroded and they have little appetite for investment.
The data for the third quarter was collected in August and September, so does not cover the reaction to events of recent weeks, such as the UK government’s mini-budget, the subsequent U-turn and the exit of Liz Truss.
Inflation remains the biggest worry for Scottish businesses, with 88% of respondents saying it was causing a high level of concern.
Energy bills were named as the top cost pressure, with 80% noting it, followed by labour at 72% and then fuel at 63%.
Households to be paid £240 to cut energy use
The value of discounts on electricity bills for households that cut peak-time use is to be raised, National Grid ESO has said.
The BBC reports that households will be paid £3 per kilowatt hour instead of 52p, if they avoid high-power activities, such as cooking, when demand is high, the firm said.
Energy firms Octopus and E.On had said the 52p payment to incentivise customers to sign up was too low. The scheme is aimed at easing pressure on UK power grids this winter to avoid blackouts.
Yen tumbles to 32-year low as currency crisis grows
The yen slumped to its lowest level in 32 years on Thursday despite determined efforts by Japanese authorities to prop up the currency in the face of the rampant dollar.
One dollar now buys 150 yen for the first time since 1990, up from 115 a year ago, after policymakers failed to stop an extended slide.
The Telegraph said the Japanese government spent as much as ¥2.8 trillion (£16.6bn) in support of the exchange rate, but it appears to have had little persistent effect at a time when the Bank of Japan is maintaining its ultra-loose monetary policy.
Fund manager takes £21bn hit from pension crisis
Britain’s biggest fund manager has suffered a £21billion hit after turmoil in the pensions market triggered a wave of panic selling.
Schroders, the FTSE 100 investment company, revealed on Thursday that turmoil in the liability-driven investing (LDI) market had sent assets in its “solutions” division plunging from £225bn in June to £205bn at the end of September.
The Telegraph said the drop highlights the impact Liz Truss’ mini-Budget had on asset managers as borrowing costs jumped, forcing pension funds to quickly raise capital to meet cash calls.
Eight million struggling to keep up with bills
Almost eight million people are struggling to pay their bills as living costs surge, the BBC reports.
The Financial Conduct Authority (FCA) estimated that 7.8 million people in the UK currently find bills a "heavy burden", up from 5.3 million in 2020.
Energy, food and fuel prices have risen sharply in the last six months in part because of the Ukraine war.
Inflation - the rate at which prices rise - increased to 10.1% last month, returning to a 40-year high.
Mortgage rates hit fresh 14-year highs
Mortgage rates continued to climb on Thursday, hitting their highest levels in 14 years, figures show.
Average two-and five-year fixed rates jumped to 6.65% and 6.51% respectively as UK borrowing costs remained elevated amid continued economic uncertainty.
One analyst warned the BBC that mortgages were a "long way" from beginning to come down.
It comes as the Bank of England is expected to raise interest rates again in November in a bid to curb inflation.