A string of negative headlines out of corporate Australia in recent weeks threatens to undermine business sentiment, casting a cloud over Australia’s economic outlook.
Holden, a subsidiary of General Motors and an iconic brand for locals, said last week that it would stop making cars in Australia by the end of 2017 in a move that would lead to almost 2,900 job cuts.
Just a few days earlier, national carrier Qantas issued a profit warning amid a “marked deterioration” in market conditions and said it would axe 1,000 jobs. The news from two of Australia’s most well-known brands is not a good sign for business confidence, which had received a boost following a change in government in September elections, analysts said.
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