Good morning. Harvard is in the Trump administration’s sights again. Pete Hegseth is making more waves at the Pentagon. And Rihanna’s news steals the show at the Met Gala. Listen to the day’s top stories.
Market data may be delayed depending on provider agreements.
The Trump administration renewed its assault on Harvard, declaring the university ineligible for new research grants from the federal government. The move could affect over $1 billion annually, an administration official said. It’s the latest tit-for-tat in a clash that has opened up a public debate over academic freedom. Bill Ackman is also stoking the fires, rattling off a list of concerns about how his alma mater has handled the conflict in a Bloomberg Television interview.
Pete Hegseth is making waves again at the Pentagon. The Defense Secretary ordered a reduction of the US military’s highest-ranking officers—including a 20% reduction of four-star positions in the active-duty military. Hegseth is already under pressure over the departure of three Pentagon officials who were reportedly fired amid an inquiry into leaks. And the controversy over his use of Signal isn’t going away, with the WSJ reporting he used the encrypted app for discussions of media appearances, foreign travel and other unclassified but sensitive information.
Investing titans and financial leaders can live with Trump’s tariffs, provided everything is settled soon. That was the mood music from yesterday’s sessions at the the Milken conference in LA. Apollo CEO Marc Rowan said the policy “is not wrong” but the chaos of recent weeks is hurting the US reputation for “stability, predictability, regularity.”
Corporate update: OpenAI agreed to buy AI-assisted coding tool Windsurf for about $3 billion, according to people familiar, in its largest acquisition to date. Palantir described demand for AI software as a “ravenous whirlwind,” but didn't raise its sales forecast enough to appease investors. Among today's earnings highlights: Electronic Arts, reporting a week after canceling a Titanfall game.
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.
And speaking of those tariffs... The stock market is still nervous about all the uncertainty, with US equity futures edging lower again. Goldman Sachs puts the recent rebound in context by saying it’s typical of a bear market rally. The erratic swings mean almost every investor will experience pain whichever direction the market suddenly moves.
Deep Dive: New York’s Congestion Charge
Traffic on Madison Avenue on Jan. 3. Photographer: Michale Nagle/Bloomberg
The request comes after New York said it reached an “impasse” in its dispute with the federal government over the $9 toll most drivers pay to enter the borough’s busiest streets.
The federal government has threatened to hold back approvals on transportation projects or potentially deny funds unless the tolling ends by May 21.
The toll brought in close to the $160 million in revenue it budgeted for between its introduction in early January and the end of the first quarter.
MTA data also show about 5.8 million fewer vehicles entered the tolled area in the first three months of the program, substantially easing congestion in parts of Manhattan. Read our QuickTake on what is behind the pricing plan.
Health plan ID cards issued to Sarah and Joe Strohmenger (The photograph has been altered to conceal numbers associated with personal information). Photographer: Lila Barth/Bloomberg
Telemarketers are using a scheme devised by a former television comedy writer to sign up people for bare-bones health-care plans tied to fake jobs. The idea exploits a loophole in Obamacare and—as many angry customers have learned—is hard for states to regulate.
Addicted to ChatGPT? Parmy Olson tells you how to reclaim your brain. She explains how young employees use AI tools more than middle and senior managers— and some are finding they undermine their self-confidence and critical thinking skills.
Rihanna at the 2025 Met Gala. Photographer: Dimitrios Kambouris/Getty Images
At an historic edition of the Met Gala with tons of news-making moments, Rihanna and A$AP Rocky once again stole the show with the news they’re expecting their third child. Rocky is one of the 2025 Met Gala co-chairs of the menswear-theme event titled “Superfine: Tailoring Black Style.”
