Surging U.S. Yields Loom Over Emerging Markets Beholden to Fed

(Bloomberg) -- Rising U.S. Treasury yields are starting to concentrate minds in the world of emerging markets.

Developing-nation local-currency notes had their worst week since September in the five days through Friday, while dollar debt declined by the most since January as surging inflation expectations fueled a rout in Treasuries. The selloff in the world’s largest bond market also sent implied volatility for currencies and stocks to the biggest weekly jump of 2021.

All eyes will be on Federal Reserve Chair Jerome Powell’s testimony to Congress this week. The central bank chief is set to echo remarks that policy makers are fully committed to supporting the economy. Investors will also look for any sign that he’s troubled by steeper long-term borrowing costs after the real rates on long bonds rose above zero for the first time since June.

“We will still need to see the Fed vastly expanding its QE purchases, as the market simply can’t absorb the net U.S. Treasury issuance later this year without much higher real yields, which would eventually be toxic for asset markets,” John Hardy, head of FX strategy at Saxo Bank in Hellerup, Denmark, wrote in a report. “Rising yields don’t even necessarily have to trigger any notable meltdown in risk sentiment as long as the market is comfortable that real interest rates will continue to decline.”

A Bloomberg study in January found all developing-world currencies typically sell off when yields jump at a rate greater than about 25 basis points per month. The 10-year Treasury yield has risen by 27 basis points this month through Friday.

Oil will also keep traders on their toes, with Saudi Arabia and Russia differing once again on their output strategy heading into an OPEC+ meeting. The Mexican peso, Colombian peso and Russian ruble were among the worst performers in emerging markets as Brent crude retreated on Friday.

“Our optimistic emerging-market currency outlook is not without risks of setbacks along the way,” Ehsan Khoman, the Dubai-based head of emerging-market research in Europe, the Middle East and Africa at MUFG Bank. “By and large, we believe relative cyclical outperformance and attractive yields on offer continue to favor stronger EM currencies as Covid-19 ebbs.”

South Korea and Hungary

The Bank of Korea will probably stand pat by unanimous consensus on ThursdayThe most interesting aspect of the meeting could be any signals on government debt purchases. Lawmakers are planning to draw up another supplementary budget in the coming weeks -- with the potential for additional debt issuance likely to put upward pressure on yieldsThe BOK would opt to use ad-hoc debt purchases to counter any bond market volatility rather than shift to a full-fledged quantitative-easing program, according to Bloomberg Economics Korean 10-year bond yields rose around 9 basis points last week, mirroring the moves in U.S. yieldsHungary will probably keep its base rate at 0.6% on Tuesday, with the forint among the worst performers in emerging markets this monthThe central bank had developed a reputation for being one of Europe’s most dovish before the coronavirus pandemic. Now, it’s among the strictest, pursuing caution to prevent volatility in financial markets and inflation

Policy Clues

In Brazil, swap rates traders will watch a mid-February reading of consumer price inflation on Wednesday, which probably accelerated on an annual basis, underscoring bets on a rate hike in March

Investors will also monitor the congressional debate surrounding the 2021 budget and prospects for another round of cash handoutsJanuary current-account data on Wednesday and unemployment and primary budget balance figures on Friday could offer further signs of the pandemic’s impactPresident Jair Bolsonaro said more changes are underway after naming a former general to replace the University of Chicago-educated economist running state-controlled Petroleo Brasileiro SA

Mexico’s mid-month inflation data, scheduled for Wednesday, will be scrutinized after January consumer prices topped expectations

Policy makers will release the minutes from their February meeting on Thursday, which investors will monitor for clues on the central bank’s next steps after a unanimous decision to cut rates by 25 basis pointsOn the same day, the country will release a reading of December economic activity and January unemploymentMalaysian January CPI on Wednesday is expected to remain in negative territoryThe January trade balance is likely to remain in strong surplus in data to be released on FridayRinggit was stock-still last week -- buffeted between opposing forces of strong dollar and robust oil prices as a net exporter of energy

South African Budget

South Africa’s Finance Minister Tito Mboweni will present the 2021-2022 budget on WednesdayMboweni must convince investors he has a credible plan to support an economy that contracted the most in nine decades last year, while also curbing growth in government debtThe market also wants clarity on plans for debt-ridden state-owned companies such as Eskom Holdings SOC Ltd. Nedbank Group Ltd. is leading discussions to restructure the South African power utility’s debt load, according to people familiar with the talksThe rand had its worst weekly performance since early January in the five days through Friday

Data and Events

Sudan’s central bank said Sunday it was implementing a unified exchange rate system, part of broader measures aimed at reviving its struggling economySouth Korea’s 20-day export numbers for February are due on Monday. The steep rise in 10-day exports may have been a bunching in sales occurring before Lunar New Year and working day effects, so anyone expecting a similarly big jump is likely to be disappointedThe nation’s export numbers often contain early clues on global production. For instance, a Bloomberg study covering 2015-19, shows a 23% correlation between misses versus consensus for these figures and misses from the subsequently available U.S. ISM dataThe won was flat last week, despite the rise in the U.S. dollar, perhaps insulated by past poor performance against its behavioral driversRead more: BEER and Beta Blockers, Steadying One’s Aim in EMFX: Macro View

Thailand’s trade numbers are due on Tuesday. The balance should be just above zero, with a steep decline in imports responsible for keeping the numbers in the black

January’s current-account figures may show a third straight deficit in data to be released on ThursdayThai baht depreciated 0.4% last week, a little more than the global averageTaiwan’s January export orders might show another sizable increase on Wednesday, with consensus about 46% year-over-yearJanuary industrial production is likely to tell a similar story of rapid recovery on Thursday -- with consensus at about 19% year-over-yearAnother vast current-account number for the fourth quarter will be released on FridayTaiwan’s dollar was one of the top gainers in Asia last weekIndia’s fourth-quarter GDP due Friday is likely to show the first year-over-year expansion since the first three months of 2020The Indian rupee was one of the strongest performers in Asia last week as inflows poured into local equity marketsChina’s official February PMIs –- for both manufacturing and services are due on Feb. 28The Chinese yuan was the third-weakest currency in Asia last week, although the stronger-than-expected fixing in yuan terms on Friday offered a glimmer of hope for bullsRead more: Yuan Fixing Miss May Herald Future Dollar DeclineA reading of Peru’s fourth-quarter gross domestic product, scheduled on Monday, may show a recovery from the lows seen amid the emergence of Covid-19 while lingering below levels from before the pandemic, Bloomberg Economics estimates.Chile’s January copper production on Friday will be watched as the metal trades near decade highs, fueling a rally in the pesoA gauge of Argentina’s economic activity index may flag a slowdown in December after seven straight monthly gains, according to Bloomberg Economics

For more articles like this, please visit us at bloomberg.com

Subscribe now to stay ahead with the most trusted business news source.

©2021 Bloomberg L.P.

Recommended Stories

  • Texans rally to help neighbors amid big freeze as officials are caught cold

    With huge gaps in the state and local response to the winter crisis, volunteers are stepping up to provide vital services What caused huge Texas blackouts – a visual explainer Volunteers stack cases of water during a water distribution event at the Fountain Life Center on in Houston, Texas. Photograph: Justin Sullivan/Getty Images Sign up for the Guardian’s First Thing newsletter When a deadly Arctic blast pummeled Texas, Kenna Titus, a law student in Austin, panicked about whether she and her partner would be able to keep themselves and their dog warm, and whether friends and neighbors had what they needed. Then came the torrent of suffering. A seniors’ apartment complex went without water for days, warming centers closed because of power and water outages, and child cancer patients languished in a hospital, desperate for food. “Everywhere I go, I just see people who were completely failed,” Titus said, adding to widespread criticism of Texas elected officials caught cold by the storm. “They were not prepared. They weren’t told to be prepared. There wasn’t any way for them to prepare.” On Wednesday and Thursday, Titus crowdsourced donations online from her neighbors, risked slick and icy roads to transport soup, muffins and tacos to the local children’s hospital, and handed out croissants, fruit cups and water to people at a cold weather shelter filled to capacity. “This should not be my job, and the job of my neighbors, to be running around, trying to find bottled water to give to kids in a cancer ward,” she said. “I’m happy to do it, and my neighbors are happy to do it, but it’s just ridiculous.” As millions of Texans went without safe shelter, clean water or food, good samaritans and mutual aid collectives bolstered by a national outpouring of support tried to fill the vacuum left by officials who fumbled the emergency management of the record-setting storm. Dori Ann Upchurch is helped by a Austin Disaster Relief Network volunteer, Cody Sandquist, left, and a Red Cross volunteer to a warming station in Austin, Texas. Photograph: Jay Janner/AP “It’s not stunning to see people in need,” said Zach Price, who also weathered the storm in Austin, “but to see their needs go so unmet under such harsh circumstances. I mean, I think you’d have to be callous not to be surprised by it a little bit, you know? It’s shocking to see, even if it’s not surprising.” After Price heard that his alma mater, the University of Texas, was still charging students to eat at its dining halls, he offered to cover the cost for a few meals on Twitter. More donors started to chip in, creating an impromptu mutual aid fund that gave students $10 or $20 and supported other Texans in need. When Price lost power and cellular data himself, he handed his Venmo and Twitter accounts to a friend so the urgent cashflow could continue. “I’m really glad that I’ve been able to help people,” he said. But a 23-year-old with a Twitter account becoming the primary source of food for some Austinites? “That is a tremendous issue.” In San Antonio, where students with Trinity Mutual Aid raised more than $67,000 in two days, core organizers have been distributing safety net payouts of $150. Volunteers hand out cases of water bottles at the Schlitterbahn Waterpark parking lot in Galveston, Texas. Photograph: Thomas Shea/AFP/Getty Images “It is incredibly, incredibly difficult and morally draining to try to make decisions on who deserves funds and who doesn’t, because it’s very apparent that all of these people deserve help that the government is not providing,” said Rachel Kaufman, a core organizer with the collective. When local officials got a call from a family of six – including a diabetic child – who were out of food, Kaufman stepped in, sending relief for past-due bills and promising to deliver groceries as soon as it was safe to drive. She listened to someone from the county commissioner’s office type her information into their system, so they could send people her way. The city wasn’t going to help. “We’ve got county officials who aren’t able to provide for their community, so they’re sending it to a bunch of 20-year-old kids who are doing more for the community than they are right now,” Kaufman said. In an ideal world, the government would cover its citizens’ needs and mutual aid would take a more wholesome form, said Houston organizer Christina Tan: “Not like, please send us $100 because somebody’s freezing to death.” At least 10 people have died of hypothermia in Houston’s Harris county, while hundreds more have suffered carbon monoxide poisoning trying to escape the bone-chilling cold in homes left without power. “I wish it didn’t have to be this way and it kind of is by necessity,” Tan said. After raising more than $235,000 through a GoFundMe campaign, her team at Mutual Aid Houston planned to distribute two waves of direct funds: one to address immediate needs, such as food and sources of heat, another for long-term costs such as burst pipes, high electricity bills and medical bills resulting from the crisis. They were already fielding an overwhelming number of requests by Thursday, but they were only hearing from Houstonians with access to internet, phone signal and power. Tan expected there would be far more to come. The Democratic congresswomen Sheila Jackson Lee, Alexandria Ocasio-Cortez and Sylvia Garcia help distribute food at the Houston Food Bank. Photograph: Elizabeth Conley/AFP/Getty Images Susana Edith, founder of Lucha Dallas, had started trying to collect tents, backpacks, travel-sized toiletries, hygiene and feminine products, non-perishables, water, clothing and shoes for neighbors who would soon leave hotels and shelters. “We’re trying to start preparing for what’s gonna happen after the snow melts, and, like, these houseless folks go back to the street,” she said. “A lot of them, their stuff has been either, like, stolen or swept up and thrown away.” Temperatures are finally climbing across the state and after days of impassable roads, closed businesses and emptied grocery stores, conditions are slowly returning to normal. Yet for many whose worlds have been turned upside down, the crisis is far from over. “The concern comes in a month from now, when people are trying to fix their pipes, when they’re still behind on bills from these incidents, when we’re still out of water,” Kaufman said. “What then, when people stop donating?”

  • Biden’s Economic Legacy at Stake With Next Package Taking Shape

    (Bloomberg) -- The next phase of President Joe Biden’s legislative agenda is fast taking shape, with an economic-recovery package that will potentially far surpass his $1.9 trillion virus-relief plan in size, complexity and overall ambition.The White House and congressional Democrats are busy plotting strategy for the proposal, which could be unveiled next month, kicking off a legislative process that may culminate by August.The centerpiece will be possibly the biggest infrastructure-spending commitment since the New Deal -- including roads, bridges and rural broadband internet. Progressives are eyeing much more, such as an expansion of Obamacare and a public-sector jobs program, along with tax measures including an increase in the capital-gains levy.But stuffing it with too many controversial proposals could threaten its approval or force it to be broken up, and put in peril the Democrats’ thin majorities in the 2022 midterm elections. Still, Democrats see a narrow opening to forge Biden’s legacy: not just restoring the U.S. economy to its pre-pandemic state, but reversing the trend of sluggish growth in recent years with the most far-reaching measures in decades.Biden’s virus-relief package is “going to help us get us back on the growth pattern we were on before,” said Virginia Representative Don Beyer, who, as incoming chair of the Joint Economic Committee, is a leading Democratic macroeconomic-policy voice. “The genius of the second plan is that it gives us the opportunity to punch GDP up above the long-term trend,” he said in an interview.During his campaign, Biden proposed $2 trillion for economic rebuilding, a step up from the $1.5 trillion level proposed in the House last year, which Democrats are now calling a “floor.”China CardBiden is aiming to succeed where Donald Trump and other predecessors have failed, when funding disputes stymied measures that economists say are vital to boosting long-term productivity. The president is selling the package as a way to counter China, which has deployed public investment not only to boost its own growth but to build global influence as well.As challenging as it may be to enact, such arguments may make the core infrastructure piece likely to be the easiest component to get through Congress.Bipartisan support for improved highway, transit, waterway and flood-mitigation work is strong, while deficit concerns are at the lowest level in decades. There’s also a Sept. 30 deadline in Congress for reauthorizing surface-transportation funding -- offering a ready-made vehicle for pursuing infrastructure measures.“Much of our infrastructure is nearing the end of its useful design life,” said Thomas Smith, executive director of the American Society of Civil Engineers, which will issue its latest quadrennial report card on U.S. infrastructure on March 3. “We’ve neglected it for far too long, and we’ve watched other countries continue to invest and continue to move ahead of the United States.”The ASCE’s last assessment, in 2017, was a D+. Back then, it estimated the U.S. needed $4.5 trillion in infrastructure spending over the following 10 years. With about $2.5 trillion in estimated outlays already in train, that left a $2 trillion gap -- which Biden’s proposal could largely fill.Congressional Budget Office figures indicate that a $1.5 trillion package would be equivalent to all federal spending on transportation and water infrastructure in the 14 years through 2017.But infrastructure could become ensnared by a push among liberal lawmakers to tack on a raft of other items, from creating a government-run health insurance plan and making unionization easier, to a pathway to citizenship for undocumented immigrants and a carbon tax.Political RiskMeanwhile, House moderates in swing districts are facing the perils of redistricting ahead of the midterms, and could insist on limiting the scope of the bill to rein in its cost and limit partisan battles. Fights could also emerge over formulas for divvying up the money among states and cities.Congressional Progressive Caucus Chair Pramila Jayapal said Thursday her large cohort of House Democrats will decide in the coming weeks which elements to advocate in the package -- including whether to use it as an opportunity to roll back Trump’s tax cuts for the wealthy.Jayapal’s group was instrumental in attaching to the pandemic-relief plan an increase in the hourly minimum wage to $15, something that’s become easily the most controversial potential holdup for that bill.The progressive caucus has proposed a $2 trillion infrastructure bill, and is already advocating that it include expanded child and elder care.The question of funding, whether by raising taxes or issuing more debt, also looms large, and many Republicans are set to be vociferous in opposing much of the plan.Senate Finance Committee Chairman Ron Wyden is expected to propose tax hikes, including equalizing ordinary income and capital-gains levies for those making more than $1 million a year and ending the deferral of capital gains. He’d also change international tax provisions in the 2017 tax law and close the carried-interest loophole, according to a Democratic aide.Some lawmakers favor raising the federal gasoline tax -- now 18.4 cents a gallon and 24.4 cents for diesel -- for the first time since 1993, though Wyden in 2019 expressed opposition to the idea, calling it regressive.Treasury Secretary Janet Yellen, who argues that deficit spending makes more sense with interest rates historically low, said on CNBC last week that “certainly part of the package, the parts that are permanent, will be paid for in order to not raise long-term deficits.”While the yield on 10-year Treasury notes has risen markedly in recent weeks, Friday’s level of 1.34% is far below the 50-year average of about 6.16%.“There’s a lot of appetite to do something this year,” said Jeff Davis, a senior fellow at the Eno Center for Transportation. “But there seems to be no appetite to pay for it.”Despite all the hurdles, Biden has a strong hand. Upgrading and maintaining infrastructure acts as its own stimulus, unleashing real demand for equipment makers, materials suppliers and, most importantly, workers.Nucor Corp., Cleveland-Cliffs Inc. and U.S. Steel Corp., the country’s three largest steel producers, have been lobbying through their industry groups since the election to persuade lawmakers to back whatever infrastructure package the Biden administration puts forth.Productivity PotentialSuch spending would also be a huge boon for Caterpillar Inc., one of the world’s largest machinery makers, which attributed a drop in North American construction-equipment sales to weaker demand for pipelines and road construction.There’s also the potential for a long-term payoff, if investments translate into productivity gains -- such as savings on shipping and commuting costs when roads, rails and ports are improved, or avoiding the kind of power-grid failures on display this month in Texas.“We cannot throw all fiscal discipline to the wind, but the standards for fiscal prudence have indeed changed in light of the global decline in the normal structure of interest rates,” said David Wilcox, a senior fellow at the Peterson Institute for International Economics, and a former Federal Reserve and Treasury official.“If the rate of return on an investment exceeds your borrowing cost, it makes sense to do that investment, and with lower borrowing costs, more investments today can clear that bar.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • Wall Street Week Ahead - Rising U.S. bond yields pose new threat to sky-high stocks

    The U.S. stock market has so far digested a surge in Treasury yields, but some investors are worried that a continued ascent could prove more problematic. The yield on the benchmark 10-year Treasury note, which rises when bond prices fall, climbed to a one year high of 1.36% this week, fueled by expectations that progress in the countrywide vaccination program and further fiscal stimulus would further spur economic growth. "When ... government bond yields rise, all asset prices should reprice lower -- that’s the theory," said Eric Freedman, chief investment officer at U.S. Bank Wealth Management, adding that he does not believe yields have yet risen far enough to provide an competitive alternative to stocks.

  • Mideast Stocks Gain as Inoculations Calm Yield Fears: Inside EM

    (Bloomberg) -- Middle East equities rose as optimism surrounding the acceleration in global coronavirus vaccinations outweighed a rise in U.S. yields that may signal the return of inflation.Israel’s TA-35 climbed as much as 1.2%, while benchmark stock indexes in Saudi Arabia, Bahrain, Abu Dhabi and Egypt also made gains.“We see higher inflation expectation as positive for the cyclical parts of emerging markets, such as the MENA region, especially when these expectations are driven by a rebound in the global economic growth which should propel earnings growth,” said Divye Arora, money manager at Daman Investments Psc in Dubai. “However, we are also watchful of the pace of increase of 10-year US treasury yields.”In another boost to risk sentiment, global coronavirus vaccinations reached more than 202 million in a little more than two months since the first shots were delivered, according to the Bloomberg Vaccine Tracker. Moreover, the Pfizer Inc. and BioNTech SE vaccine appeared to stop the vast majority of recipients in Israel becoming infected, providing the first real-world indication that the immunization will curb transmission of the coronavirus.MIDDLE EASTERN MARKETS:Saudi Arabia’s Tadawul All Share Index closes 0.7% higher after climbing as much as 0.9%, with Al Rajhi Bank, Banque Saudi Fransi and Saudi Basic Industries Corp. rising the mostDubai Financial Markets General Index closes 0.3% lower after falling as much as 0.7%Emaar Properties -0.8%; Damac Properties -2.5%; Du -0.5%Abu Dhabi’s ADX closes 0.2% higherEtisalat leads gains, trading 0.8% higherKuwait Premier Market little-changedAgility drops 0.6% after announcing 6.5 million dinar impact on revenue following a court decisionNOTE: Kuwait extended a decision to impose a ban on entry of all foreigners to the country, Kuwait Times reported, citing the civil aviation authorityFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • Dow Rallies After Yellen Touts Covid-19 Stimulus; Travel Stocks Pass Buy; Microsoft Stock Tumbles

    The Dow Jones rallied after Treasury Secretary Janet Yellen made the case for more coronavirus stimulus. Microsoft stock fell as Tesla stock took a dive.

  • World Bank, IMF to consider climate change in debt reduction talks

    The World Bank is working with the International Monetary Fund (IMF) on ways to factor climate change into the negotiations about reducing the debt burdens of some poor countries, World Bank President David Malpass told Reuters in a Friday interview. Three countries - Ethiopia, Chad and Zambia - have already initiated negotiations with creditors under a new Common Framework supported by the Group of 20 major economies, a process that may lead to debt reductions in some cases. China, the United States and other G20 countries initially offered the world's poorest countries temporary payment relief on debt owed to official creditors under the Debt Service Suspension Initiative (DSSI).

  • West Ham up to fourth as troubled Spurs crash again

    Jose Mourinho admitted troubled Tottenham's top four hopes are in tatters after West Ham moved into fourth place with a 2-1 win on Sunday.

  • Gold’s Near-Term Brush with The 1600s

    No, we’re not revising downward our Gold forecast high for this year of 2401.

  • South Korea’s prime minister has joined Clubhouse

    The latest news comes from East Asia, where Korean media reported this morning that the country’s current prime minister, Chung Sye-kyun, has officially joined the social audio app under the username @gyunvely, making him among the most senior political leaders worldwide to join the burgeoning app. Discussions in the Clubhouse room included questions asking whether it was really him, to more bread-and-butter policy issues like the high price of real estate and physical abuse in the sports world, which has dominated headlines in recent weeks in local media.

  • Why Canada is falling behind in Covid vaccinations

    The country is lagging in its vaccination plans amid a delayed delivery of doses.

  • Sara Menker, CEO of Gro Intelligence, Believes Big Data Can Save Our Climate and Food Supply

    Menker, an ex-Wall Street trader, has turned her attention to "two of the biggest challenges we face as humanity."

  • Ocasio-Cortez jets down to Texas to help recovery effort after catastrophic winter storm

    Rep. Alexandria Ocasio-Cortez, D-N.Y., is lending her star power to the Lone Star State. The lawmaker helped raise a whopping $4 million in donations to help Texas recover from the disastrous winter storm that slammed the state. Ocasio-Cortez volunteered Saturday at a Houston food bank with Texas Reps. Sheila Jackson-Lee and Sylvia Garcia. “The bank REALLY needs helping hands,” she tweeted. ...

  • After coaching change, Tennessee finally releases top 2021 signee from his letter of intent

    Dylan Brooks requested his release from Tennessee in January. He finally got that release on Friday.

  • Michigan State basketball's Joshua Langford thrives in new roles: point guard, play-caller

    Tom Izzo got point guard and coaching help from captain Joshua Langford in Michigan State basketball's 78-71 comeback at Indiana on Saturday.

  • Dow Jones Futures: Soaring Margin Debt Raises Concern For Market Rally; The Bear Case For Tesla Stock

    The stock market rally held up well last week but margin debt is a growing concern. Tesla, Microsoft and Bitcoin are in focus.

  • Warren Buffett Just Sold His Pfizer Stock. Should You?

    Warren Buffett once said, "If you aren't willing to own a stock for 10 years, don't even think about owning it for 10 minutes." Most of the stocks that Buffett-led Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) buys, it holds for years -- but not all of them. Berkshire opened a position in Pfizer (NYSE: PFE) in the third quarter of 2020.

  • Lawyer: Kardashian-West divorce should be 'amicable and fair' — for the sake of a $2.1B fortune

    A divorce lawyer explains how Kim and Kanye need a clean break to divide the assets they accumulated during a 7-year union.

  • How Rich Are Donald Trump and All the Other Living US Presidents?

    Although the current presidential salary is not too shabby at $400,000 a year, many former presidents make the bulk of their money after leaving the White House through speaking engagements, book...

  • 10 Reasons I'll Never Buy Bitcoin

    Emotional investing and technical analysis are the only driving forces behind this unsustainable rally.

  • Australia won't advertise COVID-19 vaccine on Facebook but vows publicity

    Australia's government pledged a publicity campaign for its rollout of COVID-19 vaccine on Sunday - but not in Facebook advertisements, as a feud continues over the social media giant blocking news content from its platform in the country. Facebook Inc's abrupt decision on Thursday to stop Australians from sharing news on its platform and strip the pages of domestic and foreign media outlets also blacked out several state government and emergency department accounts, drawing furious responses from lawmakers around the world. Hours before Australia began inoculations with the Pfizer/BioNTech vaccine, Health Minister Greg Hunt said the government would embark on a wide-ranging communication campaign, including online, to ensure vulnerable people turned up for a shot.