STOCKS NEWS EUROPE-Alstom surges after unveiling cost cuts

Shares in Alstom (Paris: FR0010220475 - news) rise 8.1 percent, their biggest one-day jump in nearly two years, after the French power and engineering group says it plans to cut 1,300 jobs mainly in Europe as part of a cost-cutting drive, and says it doesn't need to raise fresh capital.

"As expected the group launches a cost cutting program, but also confirms its margin targets," a Paris-based trader says. "Overall, the results were higher than the estimates, book-to-bill looks very good, although the free cash flow is disappointing."

Alstom stock is still down about 2 percent in 2013, the third-worst performance on France's CAC (Frankfurt: CB4.F - news) 40, which is up 18 percent so far this year.

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