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US-China tension, Bitcoin maximalism, and a worker revolt at an Apple supplier. Sphere of influenceThe US and Taiwan plan to announce talks [View in browser]( [Bloomberg]( US-China tension, Bitcoin maximalism, and a worker revolt at an Apple supplier. Sphere of influence The US and Taiwan plan to announce talks to deepen their economic ties to facilitate trade and supply-chain work, though any deal would fall short of a free-trade agreement, [according]( to unidentified people familiar with the matter. Meanwhile, Secretary of State Antony Blinken [remarked]( that the US will seek to influence China's behavior by shaping the world around Beijing. While the US doesn't want to sever China from the global economy, Blinken said, China "wants to be less dependent on the world and the world more dependent on China." Bitcoin maximalism What's bad for crypto is good for Bitcoin, it seems. The oldest cryptocurrency is regaining its lead among coins, and it now accounts for 44% of total [crypto market value](, the most since October, just before the latest bull market peaked, based on data from CoinGecko. Bitcoin’s renewed hegemony is a reflection of how the collapse of the TerraUSD stablecoin earlier this month has ravaged smaller tokens like Avalanche and Solana. Meanwhile, KPMG LLP is looking to hire [3,500 UK engineers](, data scientists and designers in the next three years, part of the consulting firm’s push into digital tools and applications services. Russia’s oil A record volume of [Russian oil]( is aboard tankers, with unprecedented amounts heading to India and China as other nations restrict imports because of the war in Ukraine. Asia overtook Europe as the largest buyer for the first time last month, and that gap is set to widen in May, according to Kpler, the data and analytics company. The EU summit, starting Monday, is possibly the deadline for the bloc to find an agreement on the [proposed embargo](. German Economy Minister Robert Habeck said they may have to “consider other instruments” otherwise. Worker revolt Violent clashes, mounting infections and vacant [factory floors](: the turmoil that’s engulfed tens of thousands of workers at an [Apple Inc.]( supplier in Shanghai is a troubling symptom of China’s extreme efforts to keep factories humming during its worst Covid outbreak since 2020. Trapped in a bubble for almost two months, locked down by government decree and walled off from the outside world, Quanta Computer Inc.’s mostly low-wage workers are demanding more freedom and beginning to revolt against their overseers. The incidents underscore how [sentiment is souring]( on a lockdown that’s upended the lives of 25 million Shanghainese since March. Coming up... We [round off the week]( with another busy day for economic data: Personal Income and Spending for April will cross at 8:30 a.m. New York time, alongside the PCE Deflator, preliminary April Wholesale Inventories, and Advance Goods Trade Balance. At 10 a.m. we get the final May University of Michigan Sentiment release, with data concluding at 1 p.m. with the Baker Hughes Rig Count release. There is no bond supply today, nor any scheduled Fed speakers. Pinduoduo Inc. is among companies scheduled to report earnings. What we've been reading Here's what caught our eye over the past 24 hours. - [Gun-control]( legislation. - UK’s Johnson urges [more support]( for Ukraine. - Elon Musk’s [latest poll](. - UK’s [windfall tax](. - Nike’s $134,000 [NFT sneaker](. And finally, here’s what Katie’s interested in this morning In a [series of tweets]( on Tuesday, Pershing Square founder Bill Ackman argued that the Federal Reserve should lift rates aggressively now to stamp out price pressures to avoid having to hike as many times overall. That’s a fair argument, that front-loading rate hikes will lead to a lower terminal rate. But a different tweet caught my eye: “inflation expectations are getting [out of control](.” That observation would have been more accurate a few months ago. If anything, market-based inflation expectations have been plunging. After hitting a record above 3% last month, 10-year breakevens are on track for their biggest monthly drop since March 2020. The so called five-year, five-year forward — the Fed’s favored measure — is set to post its biggest drop in May since August 2019. Survey-based gauges also appear to have plateaued for the time being. Data this month from the University of Michigan showed that consumers expect inflation to rise 5.4% over the next year, a four-decade high for the third month in a row. Prices were expected to rise at an annual rate of 3% over the next five to 10 years, also unchanged from the prior reading. At a certain level, I’m splitting hairs, since these declines are coming from incredibly high levels. But an important element of monetary policy is messaging, which hits expectations long before a 50-basis point hike is felt in the real economy. While it’s unclear if inflation has peaked yet, maybe inflation expectations have. That’s an early win for the Fed. Follow Bloomberg's Katie Greifeld on Twitter  @[kgreifeld]( Follow Us Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. 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