UK unemployment shows surprise fall to 4.9% as pay growth drops to lowest in five years

Unemployment in the UK unexpectedly fell in the three months to February, according to official figures – but the fallout from the conflict in the Middle East is expected to cause a rise in job cuts.The Office for National Statistics (ONS) said the rate of unemployment was 4.9% in February, the lowest level since last summer. This compares with 5.2% in the three months to January, a rate that economists had expected to also see in February

Primark to split from food business despite warning of Iran war impact

Primark is to break free from its sister food company, which owns Twinings, Kingsmill and Patak’s, next year despite warning that the conflict in the Middle East is likely to hit consumer spending and drive up inflation.The fashion chain’s owner, Associated British Foods (ABF), confirmed the plan to split off Primark from the rest of the food group, first mooted last year. The fashion group operates 486 stores across 19 countries.The demerger is expected to create two new FTSE 100 companies, with Primark worth as much as £9bn and the food business £4bn, although the valuations would be dependent on an improved profits outlook, according to Charles Allen, an analyst at Bloomberg Intelligence.City analysts have previously argued that Primark was undervalued as part of a conglomerate

Royal Mail invests £500m to tackle late deliveries as second-class post cut back

Second-class post will be delivered every other weekday and scrapped on Saturdays from next month as part of a £500m plan to tackle late deliveries at struggling Royal Mail.The courier has been piloting a new letter delivery pattern since July, which will be rolled out nationwide in May.The change comes follows a deal with the Communication Workers Union (CWU) and Unite last week that ended a lengthy dispute over the second-class post overhaul. The CWU will now ballot its members on the changes.There will be no changes to first-class post, which will still be delivered daily from Monday to Saturday, or to parcels, which remain unchanged, continuing at up to seven days a week

Kevin Warsh: Trump’s ideal choice to push Fed to cut interest rates

On the face of it, Kevin Warsh looks like an ideal candidate to chair the Federal Reserve, the world’s most important central bank. The 56-year-old Ivy League economist, former Wall Street banker and presidential adviser ticks all the boxes. Unfortunately for Warsh, as he faces what could be a fraught nomination hearing, his biggest backer is also his biggest liability.In his second term, Donald Trump has attacked the Fed in a manner both unprecedented and unseemly. He has called current chair Jerome Powell – whom he also appointed – a “jerk” and “a stubborn MORON”, and repeatedly threatened to fire him

UK jobs market was in a fragile state – even before Iran war threatened recovery

Despite a surprise fall in the unemployment rate, the latest jobs data show the labour market in a fragile state, even before the Iran war threatened to derail the UK’s nascent economic recovery.At 4.9% in the three months to February, the unemployment rate was down from 5.2% in the previous three months, according to the Office for National Statistics.That may suggest the labour market has improved, alongside the uptick in economic growth in February

Tequila overtakes gin as the UK’s favourite warm-weather spirit

A crisp gin and tonic has for many British people been just the ticket as the weather gets warmer, but new consumer data shows tequila is overtaking gin for the first time as a summer tipple of choice.Spicy margaritas, which are a piquant twist on the classic tequila, lime and triple sec cocktail, have taken the UK by a storm in recent years and now the country is firmly hooked on tequila, with many ordering a tequila and tonic instead of a G&T.The Marks & Spencer summer trends report found that tequila is the retailer’s hottest spirit. It reads: “Tequila is having a major glow-up, with sales soaring 50% year on year and margarita sales jumping a huge 75%, making it one of the hottest spirits of the summer.”It is the 40th anniversary of the high street canned cocktail; M&S launched its “gin in a tin” in 1986

Electricity generators threatened with higher windfall taxes in bid to ensure stable prices

Electricity generators will face higher windfall taxes unless they sign up to long-term fixed-price contracts under UK government plans to protect bill payers from future gas market price shocks, as the Iran war pushes up energy prices.The Treasury will increase a windfall tax on excess profits made by electricity generators in Great Britain from 45% to 55% when gas prices spike. The funds raised will help the government to support households during an energy crisis.The owners of “legacy” renewable energy projects, such as older wind and solar farms, that earn subsidies on top of the market price, will face the higher tax rate from July unless they sign up to contracts that pay a set price for electricity. The move is part of the government’s plan to “delink” the price of electricity from the price of gas

Oil prices rise and markets fall after US seizure of ship hits Iran peace deal hopes

Oil prices rose sharply and European stock markets fell on Monday after the US seizure of an Iranian vessel dented hopes for a peace deal.Brent crude, the international benchmark for oil prices, rose by 5% to about $95 a barrel.European stock markets dropped, with the UK’s blue-chip FTSE 100 index down 0.6%. The French Cac 40 and the German Dax fell by about 1%

Polymarket in fundraising talks that could value the prediction platform at $15bn

Polymarket, the online prediction platform that hosts bets on events such as the Iran war, is in talks to raise $400m (£296m) at a valuation of up to $15bn.The company has gained notoriety in recent months over wagers placed on the Middle East conflict, including on the timing of US-Israel strikes against Iran, and on a US-Iran ceasefire, some of which appeared to bear signs of insider trading.During this time the US company has experienced a massive increase in volume, with more than $1bn a week now traded on its platform. Polymarket takes a commission on some of these trades, with a varying fee structure depending on the kind of bet. It states that geopolitical and world events markets are “fee-free”

European stock markets fall and oil and gas prices jump as strait of Hormuz ‘chaos’ worries investors – as it happened

European stock markets have dropped at the start of trading, as last Friday’s optimism about a Middle East peace deal evaporates.In London, the FTSE 100 has dropped by 42 points, or 0.4%, to 10,626 points, away from a six-week high at the end of last week.Germany’s DAX has fallen by 1.3%, and Italy’s FTSE Mib is down 1

Victoria Beckham ties up with Gap as retailer hopes luxe push will drive comeback

From the 80s through to the early noughties it was the go-to high street store for casual hoodies and jeans, before falling out of favour. Now almost 30 years after its heyday, Gap is hoping to turn things around. Key to its comeback strategy? A pivot to more premium fashion.On Friday the retailer will unveil a collection with the luxury fashion designer Victoria Beckham. The collaboration is the next step in the luxification of Gap being led by Richard Dickson, who joined Gap Inc as its president and chief executive from Mattel, the US toymaker, in 2023

Quarter of a million people could lose job by middle of 2027 as UK ‘flirts with recession’, analysis says

A quarter of a million people could lose their jobs by the middle of next year as Britain “flirts with recession”, analysis suggests, after business confidence was shattered by the US-Israel war on Iran.As the chancellor, Rachel Reeves, summoned bank chiefs for talks aimed at containing the fallout, twin reports from top accounting firms underlined the scale of the economic threat facing the UK.Iran’s retaliatory closure of the strait of Hormuz trade route and its strikes on its regional neighbours, which have sent oil and gas prices soaring, will cause the biggest economic hit since the Covid pandemic, according to the EY Item Club, an economic forecast group.A separate report by Deloitte found finance bosses at big UK businesses were already reining in their spending plans, taking action that was likely to weigh on economic activity and hiring.The EY Item Club said it expected the UK economy to flatline in the second and third quarters of this year, leaving the country at risk of recession, defined as two successive quarters of contraction

Holy Carrot, London E1: ‘As good as plant-based dining gets’ – restaurant review | Grace Dent on restaurants

This place is about so much more than just a portobello mushroom in a white bap masquerading as dinnerHoly Carrot has, cough, taken root in Spitalfields, east London. It’s the second sprouting from this plant-based restaurant with a name that’s especially hard to sell to meat-loving friends. “Please come with me to a vegan restaurant,” one might say. “It’s not one of those pious places, honest! Oh, um, the name? Holy Carrot.” In fairness, though, it’s generally tricky to cajole meaty people to venture anywhere vegan or even vegetarian, because there’s always a sense that your steak addict acquaintance is enduring their meal “as an experiment”, and despite quite charitably being “willing to be convinced”

Helen Goh’s recipe for Anzac sandwich biscuits with dark chocolate filling | The sweet spot

Anzac biscuits are closely associated with Anzac Day on 25 April, which commemorates the members of the Australian and New Zealand Army Corps who served in the first world war. Made with oats, coconut and golden syrup, the biscuits are said to have been popular because they travelled well and kept for long periods, making them suitable for sending to forces overseas. My version here, a slightly less austere take on the classic, sandwiches two small biscuits with a lightly salted, olive oil-enriched dark chocolate ganache. The result is crisp at the edges, soft within and not too sweet.Prep 5 min Cook 35 min, plus cooling Makes 12 sFor the biscuits 90g rolled oats 45g plain flour 40g light brown sugar 30g caster sugar 40g desiccated coconut 80g unsalted butter 40g golden syrup ½ tsp bicarbonate of soda ¼ tsp fine sea saltFor the ganache110g dark chocolate (60-70% cocoa solids), chopped60ml single cream 2 tsp olive oil ¼ tsp flaky sea saltPut the oats, flour, sugars and coconut in a medium bowl and whisk to combine

Just the tonic: why it’s more than a mixer

If a tonic is something that “makes you feel stronger and happier”, my tonics come in the form of good wine, bad chocolate and an ageing whippet called Ernie. Recently, though, I’ve found myself craving the OG tonic – tonic water – which started life as a malaria treatment in the age of the British empire.The Guardian’s journalism is independent. We will earn a commission if you buy something through an affiliate link. Learn more

Move over matcha: how ube cocktails and coffees are hitting the UK’s sweet spot

Bright purple coffees and cocktails made with a root vegetable called ube have hit the high street in the UK after the yam’s striking hue caused a sensation on social media. Many are calling ube the “new matcha”, and it has a nutty, creamy, sweet taste, like a mix between coconut and vanilla.Ube coloured and flavoured drinks became popular in the US last year, after an earlier boom in Australia. Farmers in the Philippines, where the root vegetable is often sourced, have been struggling to meet demand.Now, the purple drinks have crossed the pond: Starbucks and Costa both launched ube drinks in their UK stores last month

Rachel Roddy’s ‘high-ranking’ penne with potatoes, cabbage, butter and cheese – recipe

In December 2023, the magazine La Cucina Italiana ranked Italians’ favourite pasta shapes, according to data gathered by Unione Italiana Food (“the leading association in Italy for the direct representation of food product categories”). I love this sort of thing. According to the UIF, by processing NielsenIQ data (comprehensive market research, consumer intelligence and retail measurement), they identified the five most popular shapes from over 500, and examined how preferences vary in different regions.In first place was spaghetti, while penne came in second, with these two shapes – which also takes in thinner spaghettini, chunkier spaghettoni and both ridged and smooth penne – accounting for 78% of all pasta sold in Italy in 2023. The regional variations of three, four and five are as follows: in the north-west and north-east, fusilli, short pasta and mixed pasta for broth or minestra; in central Italy, short pasta, fusilli and rigatoni; in the south, mixed pasta for broth or minestra, short pasta and tortiglioni

How to turn old bread into a brilliant Italian cake – recipe | Waste not

Old sourdough is my secret ingredient. To stop it going mouldy, I take it out of any plastic packaging and keep it in the bread bin with plenty of airflow around it – that way, it will dry out slowly, rather than turning mouldy. Any odds and ends, meanwhile, I store in a cloth bag to use in various dishes, from pangrattato (or poor man’s parmesan) to strata, a savoury bread-and-butter pudding.My new favourite recipe discovery for using up stale bread is today’s torta paesana, or village cake, from Lombardy. The best way I can come up with to describe it is that it’s a bit like a firm baked custard

Roast chicken, cheesy scones and a genius cocktail: Ravinder Bhogal’s recipes for cooking with lime pickle

I’m obsessed with lime pickle. It’s savoury, sour, funky, spicy and full of bold personality that enlivens anything it’s smeared on. It’s made by salting and fermenting limes with chillies and spices for a fierce, flavour-packed condiment that’s traditionally eaten as a side to poppadoms or with simple dal and rice. Over the years, I have also folded it into grilled cheese toasties, marinades for fat prawns to barbecue in the summer or made compound butters with it to smother over sweet potatoes before roasting. It’s an instant flavour bomb and my pantry is never without a jar

Vegemite is recognised globally – but how many people know Milo was invented in Australia?

The chocolate malt powder is sold in more than 40 countries, and Australian cafe owners say there’s ‘jingoistic pride’ in serving it on their menusGet our weekend culture and lifestyle emailWhen I order the jumbo-sized Milo Godzilla at Ho Jiak in Sydney’s Haymarket, it arrives as advertised – it’s comically large. The Malaysian restaurant prepares the drink by swirling Milo powder with hot water, adding sweet drizzles of condensed milk then chilling the mix with ice. Scoops of ice-cream are added and extra choc-malt powder is showered on top. Served in a one-litre jug, it’s so big I can’t finish it solo: staff hand me three takeaway cups to transport the leftovers.Like many beloved Milo drinks, the Godzilla is native to south-east Asia

What can I do with leftover rice? | Kitchen aide

How do I store cooked rice safely, and what can I make with it the next day?Michael, by email“It’s a bit of a running joke with rice, because I think of all the people in China who aren’t spreading their leftover rice immediately on to a tray to cool and are still alive,” says Amy Poon, of Poon’s at Somerset House in London. “But I have to be responsible and say: cool the rice as quickly as possible, within the hour, and put it in an airtight container and pop it in the fridge [or freezer] straight away.” The reason being, as food science guru Harold McGee notes in his bible On Food & Cooking, “Raw rice almost always carries dormant spores of the bacterium Bacillus cereus, which produces powerful gastrointestinal toxins. The spores can tolerate high temperatures, and some survive cooking.” In short: good storage practices will prevent bacterial growth, not to mention open a whole world of dinner opportunities

José Pizarro’s recipe for nettle (or wild garlic) and goat’s cheese tortilla

When I was growing up in the small village of Talaván in Extremadura, Spain, we never ate nettles. They were wild plants that grew along the edges of the fields, and the sort you tried to avoid: like many children, I learned about them the hard way, brushing against them while playing and getting stung. It was only when I came to the UK that I first saw nettles used in cooking, which surprised me: suddenly, this wild plant had a place in the kitchen. Now, whenever I visit my mum, Isabel, I see them everywhere. It makes me smile to think that at this year’s Spring Garden at the Chelsea flower show, I will be cooking among a world of magnificent plants and gardens

Gone from shop shelves, but not forgotten | Letters

How lucky for Adrian Chiles that he didn’t live in the German Democratic Republic (Rose’s Lime Marmalade? Gone. Dark chocolate Bounty? No more. But what about their heartbroken fans?, 8 April). After reunification, there were street markets selling the last of products from the old days, and there was an exhibition in a national museum – memorably called “They’ve even taken our tomato ketchup” – lamenting the loss of many food products and other features of former times, such as children’s TV programmes.Derek JanesDuns, Scottish Borders Can Adrian Chiles tell me where to find Halls’ chocolate sour lemons? Maybe they stopped being made because they turned your tongue black, but they tasted great

Cornichon shortage leaves British sandwich shops in a pickle

With their sharp flavour and crunch, pickled cucumbers are an essential component of any sandwich worth its salt.But an unexpected shortage of cornichons has caused consternation in sandwich shops across the country as cafes scramble to get their hands on jars of the small green pickles.A favourite sandwich of hungry office workers is the simple jambon beurre. A staple across the Channel, the French sandwich contains ham, a generous amount of butter, and, crucially, a sharp, crunchy cornichon to cut through the fat.Sandwich chain Pret a Manger brought it to popularity in the UK, and a jambon beurre retails for about £4 in its shops