NATO talks money

Good morning. NATO's defense spending is in the spotlight. President Trump sends a message to the world from Saudi Arabia. And we have the ultimate guide on why you should visit Kyoto. Listen to the day's top stories.

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NATO countries are moving toward spending 5% of their GDP on defense by 2032, people familiar with the matter said, in what could be the biggest increase since the Cold War. This would probably make Donald Trump happy—since his first mandate he has pointed the finger at allies for failing to meet a long-standing 2% threshold. Foreign ministers of the alliance will meet in Turkey today and tomorrow.

Speaking of Turkey, Ukraine's Volodymyr Zelenskiy reiterated his intention to hold direct talks with Vladimir Putin in the country on Thursday, even though he acknowledged the Russian leader probably won't show. Earlier this week, Trump floated the idea of flying to Turkey to join a potential Zelenskiy-Putin meeting.

Trump speaks during the Saudi-US investment forum at the King Abdul Aziz International Conference Center in Riyadh. Photographer: Brendan Smialowski/AFP/Getty

In the Middle East, Trump continues his tour with a clear message to the world: make business deals and the US won't meddle in your affairs. The president also said the Boeing 747 being gifted by Qatar will be used as a temporary Air Force One. But it's raising alarm bells within the US intelligence community.

Trump met with Syrian President Ahmed al-Sharaa in Riyadh, after he yesterday announced he'll remove sanctions on the country, a boost to its ambitions of rejoining the international community. As a reminder, here's our explainer to understand post-Assad Syria.

Trump's visit to the region also cleared the path for several AI deals that are expected to be unveiled in the coming days. Companies from Nvidia to AMD are likely to be involved. Still in the corporate world: Sony is feeling the burden of US tariffs, which prompted the group to issue an underwhelming forecast, and trench-coat maker Burberry said it will cut 18% of its workforce.

Coming Up

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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.

Deep Dive: Harvard vs White House Update

Photographer: Mel Musto/Bloomberg

Harvard University expanded its lawsuit against the Trump administration for freezing billions of dollars in federal funds, citing several actions taken by the White House since the university's initial lawsuit on April 21.

It claims federal agencies illegally halted the flow of funds because the university refused to submit to government control over its academic programs.
President Trump asserts that Harvard has failed to protect Jewish students from antisemitism and fostered a climate of discrimination.
His administration is planning to remove Harvard's tax-exempt status and has frozen funding that supported projects including ALS and tuberculosis research.
Confused? Here's our explainer to help make sense of at least some of it.

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Before You Go

Source: Getty Images

Our Two-Night Minimum series this time is in Kyoto: With international travel to Japan at an all-time high, it's easy to get lost in the sea of tourists. But the country's culture capital is bursting with hidden culinary treasures and alluring artisanal experiences.

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