Here are the stories making the business headlines across Scotland and the UK this morning.
Scottish business rates could rise by £205million
Business rates in Scotland could be set to rise by as much as £205million if inflation remains high, industry groups have warned.
The poundage for non-domestic rates is typically calculated using the consumer price index (CPI), which was at 6.7 per cent for September according to official data.
David Lonsdale, director of the Scottish Retail Consortium, said his sector could face an additional £43million on their rates bills from April if the CPI measure from last month was used.
He suggested the wider bill for all ratepayers would increase by £205million and added: "It would pose a challenge for retailers and other sectors with a significant property footprint, as well as for retail destinations."
Stonehaven residents prepare for the worst ahead of Storm Babet despite £16 million flood prevention scheme being in place
Worried residents and businesses in Stonehaven are bracing themselves and taking precautionary measures ahead of Storm Babet’s arrival.
A red weather warning has been put in place by the Met Office, with the Aberdeenshire town anticipated to see "exceptional rainfall expected to cause severe flooding and disruption".
Despite the millions of pounds worth of improvements, residents are still being vigilant about what Storm Babet will bring to their doorsteps.
A number of businesses – including Charles McHardy Butcher and Charles Michie’s Pharmacy on Market Square – have put up floodgates, with sandbanks scattered at front doors in the town.
Read more in today's Press and Journal.
Raise Bank of England inflation target to 3%, says leading thinktank
The Bank of England should be set a 3% inflation target and given powers to crash borrowing costs below zero in response to future economic shocks, a leading thinktank has said.
The Resolution Foundation said Britain required a big overhaul of its economic toolkit to avoid decades of rising debt or austerity, and called for reforms at the Bank and the Treasury to get a “bigger bang for each buck”.
The report said the Bank’s inflation target set by the government should be increased from 2% to 3%, although only once the existing remit had been met to ensure inflation was brought under control.
Suggesting that Threadneedle Street lacked capacity to respond to future economic downturns, it also called on ministers to sanction the use of negative interest rates of up to -1%. This would mean charging commercial banks to deposit money with the central bank, instead of paying interest, in a policy designed to encourage lending and discourage saving.
Tesla profits fall 44pc amid electric car price war
Tesla has posted its lowest profit in two years as the world’s biggest electric car maker feels the impact of a price war in China and the US.
The company, led by Elon Musk, said sales rose by 9% in the three months to October after it sold more vehicles than in the same period last year.
However, profits fell by 44% to $1.9b (£1.6b). The company’s operating margins - a measure of profitability - shrunk from 9.6% three months ago to 7.6%.
Tesla has embarked on a string of price cuts this year in an attempt to sustain demand amid growing competition. It has also been hit by higher electricity prices in some countries that has hit demand for electric vehicles.
The company said on Wednesday night it was cutting internal costs, meaning it is able to produce cars more cheaply.