Here are the business stories making the headlines across Scotland and the UK this morning.
Grangemouth closure drags Scotland’s GDP lower
The closure of Grangemouth oil refinery was a big factor in Scotland’s economy shrinking, according to new data.
Figures published by the Scottish Government show a 0.4% decline in GDP growth over the three months leading to May – effectively wiping out the 0.4% rise recorded in the opening quarter.
During May, GDP shrank by 0.2%, following a modest 0.1% uptick the previous month.
Deputy First Minister Kate Forbes admitted that the latest monthly figure “demonstrates the cessation of oil refining at Grangemouth has contributed to a reduced output in the manufacturing sector”.
Click here to read more in Daily Business.
Call to simplify Scottish disability benefits system
Access to Scotland's adult disability benefits should be made easier despite forecasts of a steep increase in claims and costs, an independent review has said.
A report commissioned by ministers said the Adult Disability Payment was a "great foundation" which was "significantly more compassionate" than benefits on offer in the rest of the UK.
However, it said too many disabled people still found the system difficult to navigate, and said eligibility criteria should be reviewed.
As it stands, the number of people claiming the payment is forecast to grow from 379,000 in 2024-25 to 703,000 in 2030-31. The cost is set to increase to over £5.4bn per year - a price Scottish ministers say they are willing to pay to have a more generous system.
Adidas to raise prices as US tariffs costs rise by €200m
Adidas has warned that US tariffs will cost the German sportswear giant a further €200m (£173m) and confirmed that it will raise prices for American customers.
Nearly half of the company's products are made in Asian countries which recently agreed trade deals with the US.
Announcing its latest results, Adidas chief executive Bjorn Gulden said the tariffs "will directly increase the cost of our products for the US".
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Holidaymakers face travel chaos after air traffic control radar failure
Summer holidaymakers are facing days of travel chaos after an air traffic control failure grounded flights across the UK.
Airspace across Britain was closed on Wednesday afternoon because of a radar issue that disrupted hundreds of flights.
While the breakdown was fixed within the hour, the knock-on effects from hundreds of delays and diversions – as well as at least 155 cancellations – are expected to last for days.
Nats [National Air Traffic Services], the air traffic control company responsible for Britain’s skies, refused to rule out hostile foreign action as the cause of the failure, fuelling calls for an “urgent investigation” into possible malign interference.
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