Here are the business stories making the headlines across Scotland and the UK this morning.

UK economy unexpectedly grows in final months of 2024

The UK economy unexpectedly grew in the final three months of last year following a boost to the construction and services sectors.

The economy expanded by 0.1% between October and December, according to official figures, despite analysts predicting it would contract.

Growth in the quarter was driven by a range of industries, from pubs and bars to machinery manufacturers, having a strong December.

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Mortgage rates cut below 4% as competition picks up

Two major lenders launched mortgage deals on Thursday with interest rates of less than 4%, as competition picks up in the sector.

The prospect of further cuts in the base rate by the Bank of England has given mortgage providers confidence to reduce their own rates.

But the attention-grabbing sub-4% deals by Santander and Barclays will not be available to all borrowers, and may come with a hefty fee.

The return of such deals might prompt other lenders to follow suit after a period of tepid competition.

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Aberdeen tourist tax plan voted through

Aberdeen City Council is pressing ahead with plans for a visitor levy for tourists staying overnight in the Granite City.

The move would result in an extra £5 being added on top of an average hotel room priced at £70.

This 7% tax would be in place across the whole city all year round and is expected to raise around £1.6 million annually.

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Ex-Google boss fears AI could be used by terrorists

The former chief executive of Google is worried artificial intelligence could be used by terrorists or "rogue states" to "harm innocent people."

Eric Schmidt told the BBC: "The real fears that I have are not the ones that most people talk about AI - I talk about extreme risk."

The tech billionaire, who held senior posts at Google from 2001 to 2017, told the Today programme "North Korea, or Iran, or even Russia" could adopt and misuse the technology to create biological weapons.

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Multi-billion dollar Honda-Nissan merger talks collapse

Honda and Nissan have announced that they are ending talks of a merger, adding that they will continue their partnership on electric vehicles.

The Japanese car makers, along with junior partner Mitsubishi, aimed to combine their businesses to fight back against competition from rival firms, especially in China.

"Going forward, the three companies will collaborate within the framework of a strategic partnership aimed at the era of intelligence and electrified vehicles," the companies said in a statement on Thursday.

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