Good morning. Today we're talking about UK growth, final public sector pay offers and Disney’s CEO extension.

Big Stories

Coronation hits growth

The UK economy shrank by 0.1% in May, the first monthly contraction since January 2022. The extra bank holiday for the King’s coronation failed to boost the hospitality sector and weighed on the rest of the economy due to the loss of one working day. The news puts the economy back at risk of recession with the rising cost of living continuing to put pressure on household spending. The Bank of England is also likely to raise interest rates further in the coming months in an attempt to cool inflation. However, this could further weigh on growth in an already weak economy. Soaring prices and borrowing costs have been squeezing consumers and businesses, leaving the economy just 0.2% ahead of its pre-pandemic level in February 2020.

Final public pay offers

The government is to offer millions of public sector workers in the UK pay increases between 5% and 7% with the aim of ending long running strike action. The increases follow months of pressure from trade unions and public sector workers who have been calling for higher wages to help them cope with the rising cost of living. The pay rises will apply to a wide range of public sector workers, including teachers, nurses, police officers and civil servants. The highest pay rise, of 7%, will go to police officers. Teachers and junior doctors will get a 6.5% and 6% rise respectively. The government has said that the pay rises will be funded within existing budgets and not tax rises. However, some unions have said that the pay rises are not enough, and that they will continue to press for higher increases.

Disney extension

Walt Disney extended the contract of CEO Bob Iger for another two years, giving the longtime executive more time to implement his turnaround and find a successor. Under the new arrangement, Iger will remain CEO until the end of 2026. Iger, 72, returned to run the entertainment giant in November after previously serving as CEO for 15 years. During his first stint as he oversaw a period of great growth for the company, acquiring Pixar, Marvel, Lucasfilm and 21st Century Fox. The company has also launched successful streaming services like Disney+ and Hulu.

Elsewhere...

Lights, camera, no action: Thousands of Hollywood actors are preparing to strike after last-ditch talks between their union and streaming giants broke down.

Disconnection issues: Ofcom has launched an investigation into Virgin Media after complaints it is making it difficult for customers to cancel.

Cutting back: Haleon, the maker of Sensodyne toothpaste and Panadol painkillers, plans widespread layoffs in the UK and around the world a year after being spun off from drugmaker GSK.

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