It’s been a tumultuous year for investors so far, but for those with a stake in crypto, winter may already be here. A massive sell-off driven by the collapse of the TerraUSD stablecoin wiped $270 billion of wealth from the market in days. Policymakers are reupping their calls for regulation while strategists say the digital chaos is denting sentiment across assets. “A failure of TerraUSD should cause you more worry about your dollars, ETFs and the traditional financial system than about crypto,” Aaron Brown writes in Bloomberg Opinion. 

Elon Musk’s Twitter soap opera took yet another self-inflicted turn as the Tesla co-founder claimed his $44 billion offer was “on hold” then followed up by saying he’s “still committed” to the deal. Is this Elon being Elon, or is the richest person on Earth getting the jitters? If you asked Bloomberg Opinion’s Timothy O’Brien, he would say it’s probably “all about the money.”

Almost 11 weeks into Russia’s botched war on Ukraine, the European Union is weighing more arms financing for Kyiv while the US wants to send new models of a dive-bombing drone. Finland and Sweden are moving closer to joining NATO, though Turkey may be an obstacle, while gas prices surged more than 10% in Europe after the Kremlin reduced supplies to Germany.

China urged Beijing residents not to hoard food amid rumors the government will order a city lockdown, as the nation continues its Covid-zero policy despite increasing social and economic costs. With the US at about 1 million confirmed Covid-19 deaths (though the actual number is likely much higher) and infections rising again, many small business owners say they’ve waited two years for promised relief funds. Only now the programs are shutting down. 

A delivery person in Shanghai, China, as the city’s punishing lockdown continues. Beijing may be next. Source: Bloomberg

Even Jamie Dimon says remote work is here to stay. The JPMorgan CEO, along with bosses of other white-collar companies, is retreating from his return-to-office demands. Why? Because workers emboldened by the hot job market are digging in on flexibility. American labor’s power has also been on display at major retailers, with Target workers the latest to join a unionizing push that’s swept Amazon, Apple and Starbucks.

Rough-diamond prices are surging, with cutters, polishers and traders struggling to source stones after the US levied sanctions on Russia’s Alrosa. Desperate buyers have been seeking a workaround from India, and even diamond giant De Beers can’t fill the gap. But if colored diamonds are more to your liking, a new fractional ownership business will let you buy a sliver of a stone.

Fancy pink diamonds remain among the world’s priciest; the largest, most exceptional stones sell from $1 million to $1.2 million per carat at retail.  Source: Luxus

• Chinese economic data will outline the impact of mass lockdowns.
• US President Joe Biden is set to visit South Korea and Japan.
• Australians choose a government for the next three years.
• The EU is set to unveil a plan to cut its Russia energy dependence.
• Large US retailers, including Target and Lowe’s, release earnings.

Boris Johnson’s Plan to Fix Britain Is in Trouble

Prime Minister Boris Johnson promised he would revive swaths of the UK left behind by globalization, addressing socioeconomic inequalities in a strategy called “levelling up.” But more than two years after his Conservative Party’s general election win, a Bloomberg analysis found that most places that were lagging behind London and England’s South East have fallen even further behind. Read more about the Tory’s struggles as well as stories about the future of British business and post-Brexit industries on Bloomberg UK.

Bloomberg’s Australia Briefing: To get the latest on the Australian election and what's happening around the region, sign up for the Australia Briefing. It'll land in your inbox daily in the lead-up to the May 21 election, and then every Friday. Sign up here.

Bloomberg New Economy Gateway Latin America: The region is fast embracing tech-based innovation. Will the emerging digital economy widen inequality or create more opportunity? Government and business leaders will gather May 18-19 in Panama to address Latin America’s prospects for inclusive growth in education, jobs, transportation infrastructure, fintech, clean energy and healthcare. Watch the livestream at bloombergneweconomy.com.