US Secretary of State Antony Blinken‘s first videoconference with European Union foreign ministers last month was so good humoured that some diplomats in Europe described it as a “love fest”.

But two senior envoys who attended said there was no direct response from the ministers gathered in Brussels when Blinken said: “We must push back on China together and show strength in unity.”

Their reticence is partly due to an unwillingness to commit to anything until Washington spells out more fully its China policy under President Joe Biden.

But the ministers were also cautious because the EU is looking for a strategic balance in relations with Beijing and Washington that ensures the bloc is not so closely allied with one of the world’s two big powers that it alienates the other.

The EU also hopes to have enough independence from Washington and Beijing to be able on its own to deepen ties with countries in the Indo-Pacific region such as India, Japan and Australia, EU officials said.

In a new departure for the EU, they said, the bloc hopes to agree a plan next month that involves a larger and more assertive security presence in the Indo-Pacific, and more development aid, trade and diplomacy.
“We are charting a third way between Washington and Beijing,” an EU envoy in Asia said.Another EU official in Asia expressed concern that the United States had “a hawkish agenda against China, which is not our agenda”.

‘EUROPE ROADSHOW’
Last month’s videoconference was part of an attempt under Biden to rebuild alliances neglected by former U.S. President Donald Trump, who had an antagonistic relationship with both the EU and China.

The White House has embarked on a “Europe roadshow”, a senior U.S. official said, and is in daily contact with European governments about China’s rising power, in “a sustained effort for … a high degree of coordination and cooperation in a number of areas.”

In a sign that the U.S. push on China is having an impact, Germany plans to send a frigate in August to Asia and across the South China Sea, where Beijing has military outposts on artificial islands, senior government officials told Reuters.

The EU is also set to sanction four Chinese officials and one entity – with travel bans and asset freezes – on March 22 over human rights abuses in China’s Uighur Muslim minority, diplomats said.

In a further sign, when Chinese President Xi Jinping chaired a video summit with central and eastern European countries last month, six EU member states – Bulgaria, Estonia, Latvia, Lithuania, Romania and Slovenia – sent ministers rather than heads of state.

But there is still distrust in Brussels of Washington’s approach to China, even if attitudes in Europe have hardened against China over Beijing’s crackdown in Hong Kong, treatment of Uighur Muslims and the COVID-19 pandemic, first identified in China.

The United States says China is an authoritarian country that has embarked on a military modernisation that threatens the West, and has sought to weaken telecommunications equipment maker Huawei, which it sees as a national security threat.

The U.S.-led NATO military alliance is also beginning to focus on China, but Biden’s administration is still reviewing policy.

“We ask what their China strategy is and they say they still don’t have one,” the EU official in Asia said.

French President Emmanuel Macron highlighted concerns in some EU states last month by saying that uniting against China would create “the highest possible” potential for conflict.

‘NO ALTERNATIVE’
But the EU is hungry for new trade and sees the Indo-Pacific as offering huge potential.

The EU has a trade deal with Japan and is negotiating one with Australia. Diplomats say countries in the Indo-Pacific want the EU to be more active in the region to keep trade free and open, and to ensure they are not left facing a straight choice between Beijing and Washington.

France committed to closer ties with allies such as Australia and India with an Indo-Pacific strategy in 2018, followed by the Netherlands, which also has its own strategy, and Germany’s looser set of “guidelines”.

The EU strategy, if agreed, could involve putting more EU military experts in EU diplomatic missions in Asia, training coast guards and sending more EU military personnel to serve on Australian ships patrolling in the Indian Ocean, diplomats said.

It is unclear how much Germany, which has close business ties to China, will commit to any new strategy. German government officials say the EU cannot afford to alienate Beijing despite labelling China a “systemic rival” in 2019.

But French Foreign Minister Jean-Yves Le Drian will travel to India in April to develop the EU’s Indo-Pacific strategy, and the EU aims to hold a summit with India this year.

France, which has 1.8 million citizens in Pacific overseas territories, has about 4,000 troops in the region, plus navy ships and patrol boats.

“The Indo-Pacific is the cornerstone of Europe’s geopolitical path,” said a French diplomat. “There’s no alternative.”

NEW YORK — GameStop Corp. shares rose sharply Thursday after the video game retailer posted its highest-ever quarterly net income and announced a substantial new share repurchase program, signaling continued efforts to return capital to shareholders amid a strategic shift toward higher-margin products.

The stock climbed more than 6% in the previous session to close at $22.18 after the company reported fiscal first-quarter results that exceeded expectations on several fronts. By mid-morning trading on June 4, shares were hovering near $22.55, reflecting sustained investor interest following the earnings release.

For the quarter ended May 2, GameStop reported net sales of $835.3 million, a 14% increase from $732.4 million in the prior-year period. The growth was driven largely by collectibles, which accounted for nearly 42% of revenue at $348.9 million, up significantly from the previous year.

Operating income reached a record $143.3 million for the first quarter, compared with an operating loss of $10.8 million a year earlier. Adjusted operating income, excluding certain items, stood at $140.5 million.

Net income surged to $389.6 million, or 66 cents per share, from $44.8 million, or 9 cents per share, in the year-ago quarter. The figure included one-time gains such as a $268.4 million unrealized gain on derivatives tied to eBay stock holdings and interest income. Excluding those and other adjustments, net income was $179.3 million.

The company’s board approved a new $2 billion discretionary share repurchase authorization, effective through June 2029. This replaces a prior program and underscores management’s confidence in the balance sheet, which showed $9.7 billion in cash, marketable securities, digital assets and related items at quarter-end.

Strategic Evolution Under Cohen

Chairman and CEO Ryan Cohen has steered GameStop toward diversification beyond traditional video game hardware and software sales. Collectibles, including trading cards, apparel, toys and pop culture merchandise, have become a key growth driver as the company reduces reliance on lower-margin categories.

Hardware and accessories sales declined modestly to $333.7 million from $345.3 million, while software revenue fell to $152.7 million from $175.6 million. Selling, general and administrative expenses decreased to $201.6 million, reflecting ongoing cost discipline.

The results come as GameStop continues to navigate a challenging retail environment for physical video game sales amid the broader industry shift to digital downloads. The company has closed stores in recent periods while investing in e-commerce and alternative revenue streams.

GameStop has also been active on the corporate development front. It has built a stake in eBay, recently increasing its position, and made an unsolicited $56 billion takeover proposal that eBay rejected as “neither credible nor attractive.” Cohen has publicly criticized eBay’s leadership and indicated potential further steps.

Market Reaction and Meme Stock Legacy

The earnings beat and buyback news triggered positive momentum in a stock known for its volatile trading history tied to retail investor enthusiasm. GameStop remains a favorite among meme stock communities, though its price action has moderated compared to the dramatic surges seen in 2021.

Year-to-date through early June 2026, the shares have shown resilience relative to some other speculative names, with gains supported by balance sheet strength and capital return initiatives. The stock trades well below its 52-week high near $31 but above its low around $19.93.

Analysts and market observers note the company’s strong liquidity position provides flexibility for buybacks, potential investments or other shareholder-friendly actions. The $2 billion authorization represents a significant commitment relative to the current market capitalization of approximately $9.4 billion to $10 billion.

Broader Retail Challenges

Despite the positive quarter, GameStop faces ongoing pressures in the video game retail sector. Industry-wide trends favor digital distribution, pressuring physical store footprints. The company has been trimming locations while attempting to transform stores into experiential destinations for gaming and collectibles enthusiasts.

Gross profit improved to $340 million from $252 million a year ago, aided by the higher-margin collectibles mix. Management has emphasized operational efficiency and inventory management as priorities.

Looking ahead, the company did not provide specific forward guidance in its release, consistent with past practice. Investors will watch for updates on store optimization, e-commerce growth and any developments regarding the eBay position or other strategic moves.

The upcoming fiscal second quarter will be closely monitored for seasonal strength around summer releases and back-to-school periods. Holiday performance remains critical for the full-year outlook in this cyclical business.

Investor Sentiment and Risks

Retail investors continue to track GameStop closely, with message boards and social platforms buzzing after the earnings. The combination of record profits, massive cash reserves and aggressive capital allocation has renewed optimism among long-term holders.

However, risks persist. Short interest, while lower than peak levels from previous years, remains a factor in volatility. Broader economic conditions, consumer spending on discretionary items and competition from online giants could influence results.

Wall Street consensus ratings have generally been cautious, with many analysts citing valuation concerns and secular industry headwinds even as recent results demonstrate progress under the current leadership.

GameStop’s market capitalization stood near $9.4 billion following the latest close, with roughly 448 million shares outstanding. The price-to-earnings ratio on trailing adjusted figures reflects improved profitability but still embeds expectations for sustained execution.

As the company evolves from a traditional brick-and-mortar retailer into a more diversified player in gaming and collectibles, its ability to deliver consistent results will determine whether the current momentum can be maintained. The $2 billion buyback provides a floor of support while management pursues longer-term transformation.

Trading volume on Wednesday was elevated at over 17 million shares, well above average, as investors digested the news. Continued follow-through will depend on broader market sentiment and any incremental updates from the company in coming weeks.

Apple Inc. lost an early round in a discrimination lawsuit brought in the U.S. by a female engineer from India who says her two managers — one from her country, the other from Pakistan — treated her as they would in their own countries: as a subservient.

The woman’s case in California state court is the latest to allege workplace bias in Silicon Valley that focuses on cultural prejudices of some tech workers from South Asia. Cisco Systems Inc. is fighting a suit brought by California’s civil rights agency alleging bias against a member of India’s so-called lower castes, known as Dalits.

Anita Nariani Schulze is part of the Sindhi minority — she is Hindu, with ancestry in the Sindh region of what is now Pakistan. Her complaint alleges that her senior and direct managers, both male, consistently excluded her from meetings while inviting her male counterparts, criticized her, micromanaged her work, and deprived her of bonuses, despite positive performance evaluations and significant team contributions.

Schulze claims the managers’ animus reflects sexism, racism, religious bias and discrimination on the basis of national origin. The Sindhi Hindu nationality is “known for its technical acumen” and its gender equality, she says, which “exacerbated the managers’ discriminatory treatment.”

In a tentative ruling on Wednesday, Santa Clara County Superior Court Judge Sunil R. Kulkarni rejected Apple’s request to toss out the suit. While not ruling on the merits of the case, Kulkarni said Schulze had adequately supported her legal claims. Apple had argued her claims weren’t specific enough and were based on stereotypes.

But the judge rejected Schulze’s request to represent a class of female Apple employees who suffered job discrimination over the last four years. He agreed with Apple that she didn’t show a pattern of discrimination that could be applied to a broader group.