Monday newspaper round-up: IMF, Mothercare, Burberry

7th Jul 2014 07:18

Christine Lagarde has hinted that the International Monetary Fund may be preparing to cut its global growth forecasts as she warned that a pick-up in economic activity could prove "less robust than expected" amid "depressed" levels of investment. The head of the Washington-based fund suggested that efforts from central banks to accelerate a recovery in the global economy may now be "finding their limit" and urged governments to inject a "booster shot" by increasing investment in areas such as infrastructure, education and health. - The Daily TelegraphMothercare's decision to reject a £270m takeover approach from US rival Destination Maternity has won the backing of two leading institutional shareholders, Fidelity and Allianz Global Investors. Support for the board's position comes despite Destination Maternity's Chief Executive, Ed Krell - a former investment banker - last week flying to the UK to press the case for a deal. - The GuardianBurberry has made an eleventh-hour attempt to clarify why it has awarded a £440,000 allowance to Chief Executive, Christopher Bailey, issuing a supplementary note to shareholders. The move came as the fashion house braced itself for a protest vote from shareholders unhappy at pay arrangements for Bailey, who was promoted to chief executive in May. As well as his cash allowance, investors are concerned about £22.5m of "golden handcuff" and other share awards in the last year. - The GuardianBusiness leaders are poised to ramp up investment this year in spite of the general expectation that base rate will as much as double in the next 12 months. Finance directors at big UK companies plan to step up recruitment and boost spending as they consider now is the right time to start taking risks, in a clear sign that recovery is beginning to inspire confidence. Deloitte's quarterly survey of chief financial officers found that 57% "expect discretionary spending to increase", the highest level since the survey began seven years ago. - The TimesMamas & Papas, the upmarket prams and maternity wear chain, is considering a sweeping store closure programme as part of a rescue plan. The struggling chain, which is battling growing losses, is in talks to be saved by the financiers behind London's famous Liberty department store. BluGem, a private equity firm, has offered to inject about £20m into the company in return for a majority stake but it is also keen to reduce the number of Mamas and Papas high street stores. The retailer has around 55 shops. - The Daily TelegraphMore than 150 businesses from across the solar power industry and beyond have joined forces to warn David Cameron of the threat to a sector that could be worth almost £80bn globally by the end of the decade. The coalition of companies, which includes furniture giant Ikea, will submit a letter to the Prime Minister today urging him to back the "thriving" sector. - The ScotsmanAB