U.K. Stocks Advance; Compass, Britvic, Anglo American Climb

By Adam Haigh

Nov. 25 (Bloomberg) -- U.K. stocks rose after the U.S. Federal Reserve increased forecasts for economic growth in the world’s biggest economy and rising metals prices boosted raw- material producers.

Compass Group Plc, the world’s largest catering company, gained 4 percent and Britvic Plc, the maker of Tango soda and Robinson’s fruit drinks, advanced 3.1 percent after saying profit increased. Anglo American Plc led mining shares higher, and Randgold Resources Ltd. increased as gold reached a record.

The benchmark FTSE 100 Index gained 28.23, or 0.5 percent, to 5,352.19 at 8:51 a.m. in London. The gauge has climbed 52 percent since March 3 as governments worldwide enacted spending programs and cut borrowing costs to revive economic growth. The FTSE All-Share Index added 0.5 percent today and Ireland’s ISEQ Index advanced 0.5 percent.

Reports today may show a rebound in U.S. consumer spending last month, while the number of jobs being shed continues to rise. In the U.K., the Office for National Statistics will provide details on gross domestic product in the third quarter.

“Today is going to be about recovering yesterday’s losses and there is a slew of macro data today to look forward to,” Tim Hughes, the London-based head of sales trading at IG Index told Bloomberg Television. “Strength really is informed by the miners today.”

In the U.S., Fed policy makers raised their forecast for 2010 economic growth, to a range of 2.5 percent to 3.5 percent from 2.1 percent to 3.3 percent. Fed governors and regional-bank presidents predicted the unemployment rate will range from 9.3 percent to 9.7 percent in next year’s fourth quarter, down from the June projection of 9.5 percent to 9.8 percent, according to minutes of the Federal Open Market Committee’s Nov. 3-4 meeting released yesterday.

Economy Watch

The U.K. economy shrank less than previously estimated in the third quarter as the longest recession on record eased, a survey of economists shows. Gross domestic product probably fell 0.3 percent from the second quarter, less than the 0.4 percent drop reported on Oct. 23, according to the median of 28 economists’ forecasts in a Bloomberg News survey. The ONS will release its second estimate at 9:30 a.m. today in London.

Compass Group Plc added 4 percent to 418 pence after saying full-year profit rose 32 percent as cost cuts offset a decline in U.K. sales.

Britvic gained 3.1 percent to 384 pence. The company said full-year operating profit rose to 110.1 million pounds from 96.7 million pounds a year earlier.

Anglo American added 2.8 percent to 2,690 pence. BHP Billiton Ltd, the world’s largest mining company, advanced 2.3 percent to 1,901 pence. Copper, lead, nickel and tin rose on the London Metal Exchange. Randgold Resources added 2.9 percent to 5,185 pence as gold climbed to a record.

Old Mutual Plc advanced 1.7 percent to 121.2 pence as the biggest insurer in Africa was rated “buy” in new coverage at Goldman Sachs Group Inc., which said the company offers “upside potential through disposals and cost cuts yet to be announced.”

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