—— Foot Locker Operations Improve; Brookfield Acquires Renewable Energy Firm; RBC Earnings Beat Expectations; NATO Critically Lacking in Defense Capabilities; U.S. Law Firms Exit Shanghai; Costco Stock Triples in Five Years; U.S. GDP Growth Slows

1. Foot Locker Operations Improve

In the quarter ending May 4, footwear retail chain Foot Locker posted earnings of $0.22 per share—nearly double analysts’ expectations.

Same-store sales declined slightly by 1.8%, but the result still beat Wall Street forecasts, signaling early signs of operational recovery.

Last year, Foot Locker postponed its $9.5 billion annual revenue target to 2028, raising investor concerns and prompting a 30% share price drop.

Today, Foot Locker stock rose 10%, though it remains down 28% year-to-date.

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Source：Bloomberg – Foot Locker Turnaround Shows Signs of Life as Sales Stabilize

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2. Brookfield Acquires Renewable Energy Firm

Canadian asset manager Brookfield announced plans to acquire a 53.3% stake in French renewable energy developer Neoen at €39.85 per share—a 26.9% premium over the latest closing price.

Brookfield, Brookfield Renewable Partners, and Singapore’s Temasek Holdings will purchase Impala’s 42% stake, with the remaining shares to be acquired directly from other Neoen shareholders.

Pending regulatory approval, Brookfield plans to take Neoen private in Q1 2025 through an all-cash transaction.

Brookfield aims to leverage its capital strength to accelerate Neoen’s growth amid surging renewable energy demand.

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Source：Bloomberg – Brookfield Confirms It’s in Talks to Buy France’s Neoen at $6.6 Billion Valuation

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3. RBC Earnings Beat Expectations

Royal Bank of Canada (RBC) reported Q2 earnings of C$2.92 per share, topping analyst estimates. Loan loss provisions came in at C$920 million, also below the expected C$929 million.

Net profit from RBC’s capital markets division surged 31% to C$1.26 billion, driven by a recovery in investment banking and stronger corporate activity.

On March 28, RBC closed its C$13.5 billion acquisition of HSBC Canada.

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Source：Bloomberg – RBC Tops Estimates as Profit Surges in Capital-Markets Division

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4. NATO Critically Lacking in Defense Capabilities

Internal NATO assessments reveal that air defense capabilities along Europe’s eastern flank meet only 5% of actual requirements, highlighting a dangerous vulnerability.

The Russia-Ukraine war has underscored the importance of modern air defense systems, yet officials say NATO lacks the resources for a full-scale defense scenario.

A senior NATO diplomat emphasized that Eastern Europe is critically short on air defense systems, and delivery delays further worsen the shortfall.

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Source：Financial Times – Nato has just 5% of air defences needed to protect eastern flank

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5. U.S. Law Firms Exit Shanghai

Amid slowing financial and corporate activity in Shanghai, a wave of U.S. law firms—including Sidley Austin, Perkins Coie, Latham & Watkins, and Orrick—have closed local offices. Weil and Akin Gump recently exited Beijing as well.

Post-COVID uncertainties in China’s economic and regulatory landscape, coupled with strained U.S.-China relations, are key factors behind the retreat.

A lawyer said declining M&A and IPO activity triggered layoffs in Shanghai offices first, as Dealogic data shows Chinese M&A volumes at a 12-year low of $72 billion.

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Source：Financial Times – Exodus of US law firms from Shanghai accelerates

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6. Costco Stock Triples in Five Years

Wholesale giant Costco has seen its stock more than triple over the past five years, matching the growth pace of some tech firms. Its market cap now stands at $358 billion.

As a pioneer of membership-based warehouse retail, Costco has benefited from high inflation, drawing in value-seeking customers.

Since 2019, Costco has added nearly 20 million members, bringing its total to 73.4 million. The company now operates 876 warehouses, over 600 of them in the U.S.

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Source：Financial Times – Gold bars and $5 chickens make Costco an inflation wave winner

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7. U.S. GDP Growth Slows

According to data from the Bureau of Economic Analysis, U.S. GDP grew at an annualized rate of 1.3% in Q1 2024, with personal consumption rising 2.0%—below the 2.5% forecast.

The figures show that early 2024 economic momentum is fading, pressured by high interest rates, inflation, and slower wage growth.

Demand for big-ticket items such as automobiles has notably weakened.

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Source：Bloomberg – US GDP Growth Was Slower Last Quarter on Soft Consumer Spending

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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.