Australian shares rallied on Friday as reports that the country's biggest lender was shedding jobs to cut costs boosted financial stocks, pushing the benchmark to its biggest weekly gain in seven weeks.[SYDNEY] Australian shares rallied on Friday as reports that the country's biggest lender was shedding jobs to cut costs boosted financial stocks, pushing the benchmark to its biggest weekly gain in seven weeks.
Before markets opened, The Australian newspaper reported that Commonwealth Bank of Australia planned to cut more than 10,000 jobs to save costs and boost profitability."Markets are always looking for how the banks are going to grow their earnings and one suspects that a large amount of that is going to come from cost cutting," said Chris Weston, head of research at Pepperstone brokerage."Reducing the headcount by 10,000 will only boost the bottom line over a period of time.
"Overall, the financial system appears much better placed to respond to a range of challenges than it was a decade ago," it added.
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