U.K. Stocks Rise, Led by Royal Dutch Shell, BP, Anglo American

By Adam Haigh

Dec. 8 (Bloomberg) -- U.K. stocks jumped the most in two weeks as investors speculated U.S. President-elect Barack Obama’s largest infrastructure-spending package since the 1950s will limit the global economic slowdown.

Royal Dutch Shell Plc, BP Plc and Anglo American Plc rallied more than 6 percent as commodity prices soared after Obama said he’s planning the biggest public works program in about 50 years. Whitbread Plc climbed 6.8 percent after saying reporting a 6.7 percent rise in sales.

The benchmark FTSE 100 Index gained 191.40, or 4.7 percent, to 4,240.77 at 11:51 a.m. in London, paring some of its 34 percent decline this year. The FTSE All-Share Index added 4.6 percent, and Ireland’s ISEQ Index climbed 4.2 percent.

“This stimulus program now has a positive influence on investors’ moods,” said Roger Groebli, head of financial market analysis at LGT Capital Management, which oversees about $20 billion. “We are starting to pick up some equities in order to benefit from the recovery,” he added.

Governments worldwide have introduced measures this year to buttress their economies from the worst financial crisis since the Great Depression as more than $31 trillion was erased from the value of global equities. Debt losses and writedowns by the world’s largest lenders and insurers have approached $1 trillion.

Shell, Europe’s largest oil producer, added 6.3 percent to 1,660 pence and BP Plc, the region’s second biggest, gained 5.2 percent to 503 pence.

Crude oil rebounded from six days of declines as OPEC’s president said the group may make a “significant” output reduction and Obama pledged to support the economy. Crude for January delivery rose as much as $2.57, or 6.3 percent, to $43.38 a barrel in after-hours electronic trading in New York.

Anglo American Gains

Anglo American, the world’s fourth largest diversified mining company, added 11 percent to 1,375 pence. Copper gained in London, snapping seven days of declines.

Whitbread Plc, the owner of Premier Inn budget hotels, climbed 6.8 percent to 813.5 pence. The sales were “resilient” and like for like sales at restaurants were “impressive,” Merrill Lynch & Co. analyst Ian Rennardson wrote in a note to clients today.

Panmure Gordon & Co. soared 19 percent to 28.5 pence after it held talks with Ambrian Capital Plc that may lead to an offer and a combination of the two U.K. stockbrokers.

The following stocks also rose or fell in the U.K. market. Stock symbols are in parentheses.

Debenhams Plc (DEB LN), the second-largest U.K. department- store company, gained 8.7 percent to 25 pence as the retailer said Chief Executive Officer Rob Templeman and two fellow managers increased their stakes.

Premier Foods Plc (PFD LN), the second-largest U.K. bread baker, added 9.2 percent to 17.75 pence on a report that H.J. Heinz Co. has approached the company about a potential acquisition of its Sharwood’s range of cooking sauces.

To contact the reporter on this story: Adam Haigh in London at ahaigh1@bloomberg.net