When it issues its summer report, tomorrow, top economic forecaster ITEM Club will argue the economic recovery is real and solid and forecast that exports could jump by almost 5 per cent in 2014. The Club, which is independent, but bases its forecasts on the Treasury's own economic model, will predict the economy will grow 1.1 per cent this year rising to 2.2 per cent in 2014. Peter Spencer, chief economic adviser to the Club, said: 'It is looking much more positive and we are unlikely to see a repeat of 2011 when confidence was crushed by the euro crisis,' The Financial Mail on Sunday says.The battle for control of Central-Asia focused Gulf Keystone boiled over this weekend. The board of the £1.6bn oil explorer rejected a slate of new directors proposed by rebel shareholders, claiming they lacked "the track record of successful operational and commercial experience". M&G, the fund giant that has led the rebellion alongside Capital Group, another big investor, yesterday reaffirmed its intention to push ahead with a shake-up. In particular, the company´s Chief Executive and other members of Senior management have come under fire fropm those rebels for receiving big bonuses despite missing production targets and running up millions in losses. M&G and Capital own more than 10% of the stock between them, The Sunday Times explains.Morrison Boss Dalton Philips told The Mail on Sunday that there would be a test of its new high-tech warehouse in Dordon, Warwickshire - a critical piece of its new on-line grocery operation - in the run-up to the Christmas holiday. The trials will make Morrisons' groceries available to a limited number of online shoppers in the Midlands. The test is designed to iron out any glitches in the centre's operation before it goes national. By the end of 2014 Dordon will able to handle 190,000 grocery orders a week, the newspaper says.The cost of health care and supporting Britain's ageing population will mean the country facing more years of austerity measures, the Government's official forecaster will warn this week. Another £50bn of efficiency measures will be needed over the next 50 years, on top of the current £153bn, to cope with the increasing costs. However, the Office of Budget Responsibility's observations in its Fiscal Sustainability Report on Wednesday are expected to show that measures taken by the Chancellor have eased the burden since last year, according to The Sunday Telegraph. One of America's biggest companies - General Electric - is "extremely interested" in Invensys, according to City sources. It is understood that the firm, whose market capitalisation is now £162bn, is plotting a £3.5bn counterbid for the British outfit. Last week France´s Schneider offered 505p- a-share, valuing Invensys at £3.6bn. One source said Schneider's proposal was strong but a rival could trump it by offering a greater cash incentive. GE declined to comment and there was no certainty GE would enter the bid race, those same City sources indicated, The Sunday Times reports.The boss of G4S has ordered a sweeping review of the security giant that could prompt a big rights issue within weeks. Ashley Almanza, who replaced Nick Buckles as chief executive at the end of May, is expected to announce drastic measures to try to repair the balance sheet when he reports half-year results next month. Goldman Sachs recently noted that borrowings are about 4 times the operating earnings, compared with a sector average of 1.6 times. G4S has £1.8bn debt and relies on the Government for about 10% of its sales, The Sunday Times explains.Centrica's £1.4bn plan to convert an empty gas field into a storage facility to help with any future energy crisis could be shelved after the Government signaled that it did not believe Britain needs more storage, The Sunday Telegraph says. The company wants to convert the empty Baird gas field, off Norfolk, into another site of almost the same size. Yet Centrica has warned that the project, on hold for several years, is "unlikely to proceed without some form of Government support". Britain has about 15 days' worth of gas storage ? much less than European counterparts, the newspaper adds.The Prudential Regulation Authority, part of the Bank of England, is expected to allow Barclays two and a half years to build up its capital to fill a £3bn hole. The time-line would be similar to that granted by the PRA to the Nationwide Building Society, on Friday, The Financial Mail on Sunday says. AG Barr, the Scottish FTSE 250 company, is expected to open discussions with private equity firms with a view to launching a joint bid for the two brands on sale by Glaxo Smith Kline. That follows close on the heels of the collapse of merger talks with rival Britvic last week. The amount offered could reach £1bn, according to The Sunday Times.Ministers are this week expected to unveil the long-awaited details of tax breaks for fracking and pledge to cut red tape for the industry. The proposed allowance would see a certain portion of income from each shale gas "pad" ? or production site - receive an effective rax rate of 30%, rather than 62%. Guidance on planning rules for shale gas developments and to cut environmental permitting processes from 13 weeks to less than a fortnight have also been promised in the past, The Sunday Telegraph writes. AB