UPDATE 2-Oil majors, banks lead FTSE 100; Greene King soars on M&A

* FTSE 100 up 1%, FTSE 250 up 1.5%
* Greene King shares surge 50% after takeover bid
* Chinese moves on corporate interest rates lift stocks
globally
* BP , Shell jump as Yemen attack adds to Middle East
tensions
* HSBC leads other Asia-focused financials

(Adds company news items, updates share moves, changes analyst
quote)
By Muvija M and Indranil Sarkar
Aug 19 (Reuters) - London's FTSE 100 bagged gains on Monday
led by oil majors and Asia-exposed banks that rose on moves by
China to keep business interest rates low, while pub operator
Greene King helped midcaps outshine after agreeing to be bought
out.
The FTSE 100 .FTSE added 1%, its biggest one-day rise in
more than 10 days, but a 50% surge in Greene King GNK.L shares
helped the FTSE 250 index .FTMC outperform with a 1.5% rise.
Shell RDSa.L and BP BP.L jumped roughly 2%, tracking a
surge in crude prices following a drone attack by Yemen's Houthi
group on an oilfield in eastern Saudi Arabia on Saturday, which
caused a fire at a gas plant and added to Middle East tensions.
Miners .FTNMX1770 and Asia-focused stocks, led by HSBC
HSBA.L , also rose after China's central bank announced reforms
to help lower borrowing costs for companies and support an
economy bruised by the trade war with the United
States. Meanwhile, UK-centric Lloyds LLOY.L and Barclays BARC.L
advanced after a report last week that Germany would be prepared
to take on new debt to counter a possible recession.
Ocado OCDO.L added 4.5%, topping the blue-chip index,
after JP Morgan hiked its price target and said the online
grocer operates "a superior economic model" compared with its
store-based rivals.
Greene King, the brewer of Old Speckled Hen and Abbot Ale,
surged to a more than 3-year high to match a 850 pence a share
offer from CK Asset Holdings, which was founded by Hong Kong's
richest man Li Ka-Shing.
The deal, which values Greene King at 2.7 billion pounds,
lifted shares in rivals JD Wetherspoon JDW.L and Marston's
MARS.L by more than 9%. FTSE 100 constituent and Premier Inn
owner Whitbread WTB.L also gained 3%.
CYBG CYBGC.L added 5.3% after UBS upgraded the stock and
said the lender's net interest margin is set to rise from here
even in the current rates environment.
Investors will keep a close watch on Federal Reserve
Chairman Jerome Powell's speech later this week for his
commentary on interest rates.
The UK indexes, much like their global counterparts,
spiralled to multi-month lows last week on fears of recession
after yields on 10-year U.S. and UK government bonds fell below
two-year equivalents for the first time since the financial
crisis.
Despite a recovery since then, the FTSE 100 index is still
on course for its steepest monthly fall in four years.
"We still see limited near-term recession risks as central
banks' dovish pivot helps stretch the economic cycle, yet
caution that trade and geopolitical tensions pose downside
risks," BlackRock analysts wrote in their weekly note.