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Europe Inc warns business is tough on home turf

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Some of Europe's top companies, including Volkswagen and Unilever warned on Thursday that business in the region is increasingly tough, underscoring concerns...

LONDON/PARIS - Some of Europe's top companies, including Volkswagen and Unilever warned on Thursday that business in the region is increasingly tough, underscoring concerns that the full impact of high inflation and borrowing is now being felt by consumers.

"That is a feature of the inflation that we've had in our nutrition and our ice cream business," he said. Euro-zone business activity took a surprise turn for the worse this month as demand fell across the region, a survey showed earlier this week, suggesting the bloc may slip into recession. Orders were increasing slowly in the third quarter from the first half and should rise further in coming months, Chief Financial Officer Arno Antlitz said.

"We face now more challenges than we anticipated even until very recently," CEO Gilles Grapinet told analysts.

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