European Business Faces Challenges and Opportunities

Europe's defence industry is experiencing a surge in valuations, driven by the perceived 'era of rearmament' following Donald Trump's return to power. Major defence contractors such as Rheinmetall, BAE Systems, Thales, and Leonardo have seen significant increases in their market value. Rheinmetall's market value has risen from €27bn to €80bn, equivalent to 90 times its annual net profit. Investors are optimistic about the prospects of these companies, but there are concerns that they may be heading for disappointment.

Porsche, a German sports car maker, is facing significant financial challenges under its new CEO. The company has issued three profit warnings this year and reported an operating loss of almost €1bn in the third quarter. This decline is attributed to various factors, and the company's new CEO will have to confront these challenges. Porsche's financial performance has been disappointing, contrasting with its reputation for high performance.

The Wallenberg family, Sweden's leading business dynasty, is preparing for succession as the sixth generation steps up. The family controls 35% of the national stock exchange through their holding company, Investor AB. The article discusses the family's history, their business dealings, and the challenges they face in passing on their wealth and control to the next generation.