Good morning. Warren Buffett is stepping down after turning Berkshire Hathaway into a $1.2 trillion behemoth. Donald Trump hints at tariff deals this week. And there’s no escape from Alcatraz if the president has his way. Listen to the day’s top stories.

It’s the end of an era for a man many consider the greatest investor ever: Berkshire Hathaway CEO Warren Buffett is stepping back at the venerable age of 94. The Oracle of Omaha delivered a 5,500,000% return on Berkshire’s stock, becoming a household name as he crossed over into public consciousness through his folksy wisdom. He’ll hand the keys to Greg Abel, who inherits a giant cash pile and questions over what to do with it. 

Punishing quota cheats. Saudi Arabia is doubling down on a historic shift in oil policy, signaling it won’t tolerate OPEC+ members flouting production targets. Over the weekend, the oil cartel boosted supply for the second consecutive month, driving prices lower and leading Wall Street analysts to slash their forecasts. In theory, that should translate into lower prices at the pump.

Tariffs latest: Donald Trump hinted at possible trade deals this week, though he didn’t specify where or which. He also floated cutting China levies at some point, saying they’re so steep they’ve essentially stopped US-China trade. There’s also good news for TikTok, which may get another extension to sell to a US owner. But Hollywood better watch out—Trump wants to tax films shot abroad.

Newark Airport. Photographer: Angus Mordant/Bloomberg

Cracks in the US air traffic control system are forcing action. Transportation Secretary Sean Duffy plans to unveil a multibillion-dollar FAA modernization proposal this week, aiming to overhaul aging systems that manage 45,000 daily flights. The need for the upgrade was brought into focus when United said it would cut flights at Newark after tech failures and a staffing crunch caused major delays. See more in Deep Dive below on why budget carriers are in trouble.

Bloomberg Tech: Join top tech decisionmakers and influencers on June 4-5 in San Francisco. Decode technology’s evolving role across business, culture and healthcare as we discuss the advances transforming industries and how they impact society. Learn more.

Geopolitics: Trump-style populism had some mixed results overseas. After Canada, voters in Australia handed conservatives a stinging defeat and re-elected left-leaning incumbent Anthony Albanese. And fears of a Trump-fueled trade war prompted Singaporeans to rally behind the ruling party. But in Europe, the populist tide is still rising—Romania’s Trump-aligned ultranationalist secured a first-round victory and will head to a presidential runoff later this month.

Deep Dive: The End of Cheap Air Travel

A Spirit Airlines airplane at LaGuardia Airport in 2024. Photographer: Angus Mordant/Bloomberg

Demand for domestic leisure travel is rapidly evaporating as President Trump’s trade war rattles consumer confidence. People who can’t really afford it are stopping flying altogether.

• As a result, airlines’ hopes of a banner year and higher ticket prices are dashed.
• Discount airlines are being hit the hardest. Spirit, which took no-frills to the limit, filed for bankruptcy late last year (its stock ticker was SAVE), and Frontier said this month it expects to lose money again this quarter.
• Big carriers—better insulated because of their international operations and corporate clients—have doubled down on their own no-frills offerings since the pandemic.
• Delta Air Lines has broadened its range to the extent that it successfully introduced Shake Shack burgers in first class on select domestic flights.

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The Big Take

Homeless encampments in downtown Los Angeles. Photographer: Eric Thayer/Bloomberg

With tickets starting at $25,000, the Milken conference attracts attendees eager to connect to billionaires and politicians. Just miles away, Los Angeles is bearing the brunt of climate, housing and political challenges, with tariffs and deportations threatening more pain.

Opinion

America’s public transit agencies are teetering on the brink of collapse, which may lead to a “death spiral” of service cuts, Matthew Yglesias writes. Potential solutions include privatization, automation, and reform of the Urban Mass Transportation Act.

Before You Go

Robyn Beck/AFP/Getty

No escape from Alcatraz. Trump wants to