Market Beats | Trump Signals Softer Stance on China: Tariffs to Drop if Deal Reached; Intel to Cut More Than 20% of Workforce; Apollo, Blackstone Lead $4 Billion Private Loan for Boeing Unit Acquisition; Gucci Sales Plunge 25% in Q1; Adidas Beats Q1 Estimates as Retro Sneakers Sustain Sales Momentum

—— Trump Signals Softer Stance on China: Tariffs to Drop if Deal Reached; Intel to Cut More Than 20% of Workforce; Apollo, Blackstone Lead $4 Billion Private Loan for Boeing Unit Acquisition; Gucci Sales Plunge 25% in Q1; Adidas Beats Q1 Estimates as Retro Sneakers Sustain Sales Momentum

1. Trump Signals Softer Stance on China: Tariffs to Drop if Deal Reached

U.S. President Donald Trump on Tuesday signaled a more conciliatory tone toward China, saying he plans to be “very nice” in upcoming trade talks and that tariffs could fall “substantially” if a deal is reached — a notable shift amid ongoing market volatility.

“It will come down substantially but it won’t be zero,” Trump told reporters in Washington. “We’re going to be very nice and they’re going to be very nice, and we’ll see what happens.”

The comments came after Treasury Secretary Scott Bessent said earlier in the day that the current standoff with China was “unsustainable,” suggesting the administration may be preparing to deescalate.

Trump also said he saw no need to “play hardball” with Chinese President Xi Jinping and confirmed he would not raise the issue of Covid-19 during future discussions. That virus origin topic remains politically sensitive in Beijing — especially after the White House recently launched a website suggesting the virus came from a lab in China, drawing sharp criticism from Chinese diplomats.

Market analysts viewed Trump’s remarks as a possible indication that the administration is trying to restore a path toward dialogue while reducing tensions that have weighed heavily on global trade and investor confidence.

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2. Intel to Cut More Than 20% of Workforce

Intel Corp. is preparing to lay off more than 20% of its staff in a sweeping restructuring effort aimed at eliminating bureaucracy and reviving an engineering-driven culture, according to a person familiar with the matter.

The move marks the first major shakeup under new Chief Executive Officer Lip-Bu Tan, who took the helm last month. The cuts are intended to streamline management layers and foster faster, more technically grounded decision-making, the person said, requesting anonymity as the plans have not been made public.

The planned reductions follow a previous round of layoffs announced in August 2024, when Intel slashed about 15,000 jobs. The company’s headcount fell to 108,900 by the end of last year, down from 124,800 in 2023.

Tan, a longtime semiconductor executive and former head of venture capital firm Walden International, is widely expected to pursue a strategy rooted in technical excellence and operational discipline. His leadership comes at a time when Intel is seeking to regain its competitive edge in advanced chip manufacturing and improve financial performance after several challenging years.

Intel shares rose as much as 3.5% in premarket trading Wednesday in New York. Still, the stock has lost roughly 43% over the past 12 months and closed Tuesday at $19.51.

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3. Apollo, Blackstone Lead $4 Billion Private Loan for Boeing Unit Acquisition

A group of private lenders led by Apollo Global Management Inc. and Blackstone Inc. is providing a $4 billion loan to support Thoma Bravo’s $10.6 billion acquisition of Boeing Co.’s flight navigation and digital aviation assets, according to people familiar with the matter.

The seven-year financing package will carry an interest rate of 4.75 percentage points over the benchmark rate, the people said, requesting anonymity because the details are private. Apollo and Blackstone are contributing equally as the deal’s lead lenders.

Additional participants include Ares Management Corp., Blue Owl Capital Inc., KKR & Co., and JPMorgan Chase & Co., which is joining the deal through its private credit platform, the people added.

The loan will fund Thoma Bravo’s purchase of Boeing’s Jeppesen navigation unit, along with ForeFlight, AerData, and OzRunways — a deal confirmed in a statement Tuesday following earlier reports by Bloomberg News. The transaction is one of the largest private equity-led technology carve-outs in recent aerospace history and highlights growing sponsor interest in aviation software and digital infrastructure.

The financing terms and lender lineup remain subject to change, and no final agreements have been disclosed.

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4. Gucci Sales Plunge 25% in Q1

Gucci sales dropped 25% in the first quarter of 2024, Paris-based Kering SA said Wednesday, as ongoing efforts to revitalize the brand failed to show progress. The result was slightly worse than analysts’ forecasts of a 24% decline.

The iconic fashion house, which accounts for over 60% of Kering’s profit, is critical to the French luxury group’s performance. The company, controlled by the billionaire Pinault family, recently named Demna Gvasalia — widely known simply as Demna — as Gucci’s next creative director in a bid to reignite momentum.

Demna has served as the artistic director of Balenciaga for the past decade, where he oversaw strong growth fueled by bold, headline-grabbing designs such as the oversized Triple S sneakers. However, Gucci’s scale is significantly larger, and the shift to a new designer — the second such change in just two years — signals a longer timeline for any meaningful turnaround.

“Demna is already working with the teams at Gucci,” said Kering’s Chief Financial Officer Armelle Poulou during a call with reporters. She declined to specify when his debut collection for the brand would be unveiled.

Gucci’s continued slump deepens concerns about Kering’s ability to restore brand relevance and growth, especially as rival luxury groups such as LVMH and Hermès have maintained stronger sales trajectories in recent quarters.

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5. Adidas Beats Q1 Estimates as Retro Sneakers Sustain Sales Momentum

Adidas AG reported better-than-expected first-quarter earnings on Wednesday as global consumers continue to snap up retro footwear styles like the Samba, even amid increasing economic uncertainty.

The German sportswear giant posted operating profit of €610 million ($692 million), well above the €545 million average analyst estimate. Revenue came in at €6.2 billion, in line with expectations.

Adidas remains on a two-year hot streak, with robust demand for classic silhouettes such as the Gazelle and slim-soled models like the Tokyo and Taekwondo. This trend has helped the brand reclaim market share from longtime industry leader Nike Inc.

Shares of Adidas’ US-listed depository receipts rose as much as 5% in after-hours trading following the preliminary earnings report, which was released after the Frankfurt market closed. The company said it will report full first-quarter results on April 29.

Like other sneaker makers that manufacture a large share of their footwear in Asia, Adidas has been affected by tariff threats from US President Donald Trump. However, the company made no mention of forward guidance in its latest statement.

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6. Yale to Sell PE Stakes Amid Federal Funding Turmoil

Yale University’s $41 billion endowment is exploring sales of private equity stakes amid budget pressures stemming from underwhelming investment returns and political headwinds from President Donald Trump’s administration.

Evercore is advising on the potential transaction, which has been in the works for several months, a Yale spokesperson confirmed. While the process is underway, the endowment remains “committed to private equity” and continues to make new capital commitments, the spokesperson said.

Though the university hasn’t publicly disclosed the target size of the sale, Secondaries Investor earlier reported that Yale may offload as much as $6 billion of its private equity portfolio.

Yale is widely regarded as a pioneer in the endowment world for shifting away from traditional public equities and bonds toward illiquid alternative assets such as private equity and venture capital. In recent years, however, the school has stopped disclosing the breakdown of its asset allocation. In October, Chief Investment Officer Matt Mendelsohn said the endowment maintained a “significant allocation” to private assets.

The potential asset sale comes as the Trump administration intensifies scrutiny of elite universities. In recent months, it has suspended federal research funding for Ivy League institutions including Harvard, Columbia, and Princeton, while threatening to revoke Harvard’s tax-exempt status — a move that could further complicate donor fundraising and financial planning.

Yale’s exploration of secondaries sales may reflect broader efforts among top universities to reposition their portfolios amid rising political and financial uncertainty.

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7. US Mortgage Rates See Biggest Weekly Jump in a Year, Threatening Spring Home Sales

US mortgage rates rose for the first time in four weeks, posting the largest weekly gain since April 2024 and threatening to cool the housing market during the crucial spring buying season.

The average rate for a 30-year fixed loan climbed to 6.83% from 6.62% the previous week, Freddie Mac said in a statement Thursday.

The surge comes as global tariff tensions — particularly between the US and China — have rattled equity markets and pushed up yields on 10-year US Treasuries, which serve as a benchmark for mortgage pricing.

“When [the 10-year yield] rises, mortgage rates typically follow suit,” said Jiayi Xu, an economist at Realtor.com. “Looking forward, competing economic forces are pulling mortgage rates in opposite directions, making it increasingly difficult to predict where they’ll land.”

Demand is already showing signs of weakening. According to data from Redfin Corp., home-purchase contracts in the four weeks ending April 13 fell 0.8% from a year earlier.

“Consumers are feeling anxious about the economy and the rising cost of living, potentially leading them to adopt a ‘wait-and-see’ approach regarding significant purchases like homes,” said Kara Ng, senior economist at Zillow Home Loans.

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