Square Mile cheers AMP cuts

LEADING institutions today cheered the news of 1,500 jobs cuts at the UK offices of Australia's AMP, with Merrill Lynch and Credit Suisse First Boston upgrading their headline earnings estimates for the financial services provider.

Merrill forecast a 4% rise in 2003 earnings to A$1.46bn (£555m) while CSFB predicted that the cuts and savings would help add 6% to AMP's bottom line. AMP said the duplication created by its acquisition of financial services groups Pearl, NPI and London Life had triggered the cuts. In Australia, the shares rose almost 2% today as investors applauded the cuts, which will save about £100m a year.