Here are the top business stories making the headlines in the morning newspapers.

Biden again says US would defend Taiwan if China attacks

US President Joe Biden has again said the US would defend Taiwan in the event of an attack by China.

Asked in a CBS interview if US troops would defend the island, Mr Biden said: "Yes, if in fact, there was an unprecedented attack".

The remarks prompted the White House to clarify that US policy had not changed.

Washington has long maintained a stance of "strategic ambiguity" - it does not commit to defending Taiwan, but also does not rule out the option.

Decision day for interest rate

Markets think the Bank of England will unveil the biggest hike in the interest rate for over three decades on Thursday.

The Bank's monetary policy committee (MPC) is expected to increase the rate by 0.75% to 2.5%.

The Press and Journal says it would be the highest rate that the UK has had since the financial crisis. In December 2008, the base rate was slashed from 3% to 2%.

Staffing levels review at Scottish factories

A review of staff numbers is being carried out at two south of Scotland factories after a drop in demand for personal protective equipment.

It comes just 18 months after Alpha Solway announced a multi-million-pound investment in its operations.

The company - which is part of the Globus Group - landed a major contract in 2020 to supply PPE to NHS Scotland.

However, it said demand had now dropped and it was reviewing staffing levels at its two sites in Dumfries.

The BBC says it is understood a plant which the company operates in Annan is not affected.

Alpha Solway announced plans to invest more than £33million in the region - creating about 300 jobs - last year.

It built a new factory in Dumfries and expanded its operations in Annan.

The move was backed by South of Scotland Enterprise with £4.8million in funding support - its biggest grant to date at that time.

Germany takes over Rosneft refineries

Germany has seized control of three oil refineries owned by Russia's state oil giant Rosneft, as it seeks to secure energy supplies in the wake of the Kremlin's invasion of Ukraine.

The Telegraph says the German Government is putting into trusteeship two Rosneft units which own stakes in refineries in Schwedt, Karlsruhe and Vohburg - accounting for about 12% of German oil-processing capacity.

The move comes as the EU prepares to ban imports of oil from Russia by the end of the year, with Germany setting out measures to make sure the refineries can receive oil from other routes.

It marks an escalation of the energy war between Russia and the EU since Vladimir Putin's invasion of Ukraine, which has seen the Kremlin push the Continent to the brink of recession by cutting gas flows.

Olaf Scholz, Germany's Chancellor, said he was prepared for the risk of retaliation from Putin over the oil refineries, such as a halt to oil deliveries.

Value of pound v dollar slips

The pound fell to a new 37-year low against the US dollar at the end of last week.

This came after figures showed UK retail sales fell sharply in August as the rise in the cost of living continued to hit households.

The larger-than-expected drop in sales volumes of 1.6% prompted fresh concerns over the state of the economy.

Sterling fell more than 1% against the dollar to $1.1351 at one point - its lowest since 1985 - following the release of the retail sales figures.

It was trading at just over $1.14 earlier today.

The BBC says the pound has been falling against the US currency for most of the year, partly due to the strength of the dollar

This comes at a time when UK inflation, which is the rate at which prices rise, is running at a near 40-year high, despite slipping to 9.9% from July's 10.1%.

The Bank of England has predicted the UK will fall into recession towards the end of this year and it is expected to keep increasing interest rates in a bid to curb inflation.

Scottish teachers support strike action

Members of Scotland's biggest teaching union have rejected a 5% pay offer and backed strike action.

The EIS union said 78% of its members took part in a consultative ballot over pay and conditions.

A total of 94% of those taking part voted to reject the 5% pay offer put forward by local authority body Cosla and 91% supported strike action in pursuit of a better pay offer.

The BBC says a statutory strike ballot of EIS members will now take place.

If teachers back strike action in this statutory ballot, then the EIS will move to take industrial action at schools across Scotland.

Last week, the Scottish Secondary Teachers' Association revealed its members had also rejected the 5% pay deal, with the majority saying they would back strike action without an improved deal.

Fracking worries

A pledge by Prime Minister Liz Truss to lift the ban on fracking south of the border has sparked concern across Gloucestershire.

Leaders in the Cotswolds and Forest of Dean have said they are "alarmed" and want to make it clear fracking is not welcome there.

The BBC says that, since World War II, the area has been subjected to many oil and gas exploration licences, involving extensive seismic investigations.

Hydraulic fracturing involves drilling into the earth and directing a high-pressure mixture of water, sand and chemicals at a rock layer in order to release the gas inside.

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