Strings attached

Follow Us Get the newsletter As countries race to meet coronavirus vaccination targets, the inclination in some parts of the world to stockpile gives an opportunity for others to fill the void, and to score strategic points in the process. The European Union is making it harder for locally-produced vaccines to be sent outside the bloc. Other countries may be considering the same. Leaders have promised to quickly inoculate large swaths of their populations, and there's a lot at stake if they fail to do so. Some big Western pharma companies are ramping up production to try and meet demand. But the sense of "me first" is opening the door to smaller states taking supply where they can get it – from China and, increasingly, Russia. Hungary is the first country in the EU to agree to take both the Russian and Chinese produced vaccines. Some other European states, and those in Southeast Asia, the Middle East and Latin America, are doing the same. Russia's Sputnik V vaccine got a significant boost yesterday with news an interim analysis of an advanced clinical trial showed efficacy of 91.6%. Mexico has now approved it for use, as has Pakistan. Chancellor Angela Merkel says she's ready to consider using it in Germany. China meanwhile said today it's set to provide 10 million doses to Covax, the World Health Organization's program to assist developing nations. Once the pandemic subsides, countries will remember who helped them out in the dark times. Even as they know, when it comes to Beijing and Moscow, there are always political and monetary strings attached. At some point that bill will come due, but right now many states can't afford to pick and choose. — Rosalind Mathieson Military personnel and members of the public line up to receive China's Sinopharm Group vaccine in Belgrade, Serbia, on Jan. 19. Photographer: Oliver Bunic/Bloomberg Tell us how we're doing or what we're missing at balancepower@bloomberg.net. Global Headlines Italy's savior? | Former European Central Bank chief Mario Draghi has been tapped by Italy's head of state as the next prime minister, to help lead the virus-battered country out of its worst recession since the end of World War II. Nicknamed "Super Mario" for his success deploying the ECB to shore up the euro in 2012 during the height of the debt crisis that spread from Greece, he would need a majority in both houses of parliament — which will take some negotiating. Investors hope Draghi can usher in political stability and utilize EU funds to help the economy recover. Mario Draghi. Photographer: Jasper Juinen/Bloomberg Covid czar | President Joe Biden's Covid-19 response coordinator doesn't have a medical or military background and is unfamiliar to most Americans. But Jeff Zients, a former Bain & Co. consultant, will need all his reputed organizational skills to meet the administration's challenge of beating the pandemic. An improving economy is muddying Biden's efforts to win congressional passage of a $1.9 trillion stimulus package. Market frenzy | U.S. Treasury Secretary Janet Yellen made her first public move to address the tumult involving GameStop shares and broker-dealer Robinhood Markets by summoning regulators to discuss the recent volatility in markets. While there are signs the furor may be easing, the episode has raised questions about potentially broader risks for the financial system. Sharp reaction | The U.S. and European leaders condemned Russia's imprisonment of opposition leader Alexey Navalny for 2 years and 8 months and demanded his release. Secretary of State Antony Blinken said the U.S. will coordinate with allies "to hold Russia accountable." French President Emmanuel Macron called the sentencing "unacceptable," while U.K. Prime Minister Boris Johnson described it as "pure cowardice." Tactical shift | After months of protests targeting Thai King Maha Vajiralongkorn, authorities are again ramping up the use of a controversial law criminalizing royal insults. Since late November, some 55 activists who took part in the demonstrations calling for a reduction in the monarchy's powers have faced royal defamation lawsuits, according to Thai Lawyers for Human Rights. What to Watch Kuwait's government transferred the last of its performing assets to the country's sovereign wealth fund in exchange for cash to plug a monthly budget deficit of $3.3 billion, leaving it with a severe liquidity squeeze. U.K. Cabinet Office Minister Michael Gove is demanding the EU ensure the smooth flow of trade between Britain and Northern Ireland, amid rising tensions in the region. A WHO team visited the Wuhan laboratory at the center of months of speculation over how Covid-19 jumped to humans. Myanmar authorities filed criminal charges against Aung San Suu Kyi, just days after the military ousted her government in a coup, according to a local media report. And finally ... While India's government attempted to block the Twitter  accounts of farm protest leaders and journalists, pop star Rihanna and environmental campaigner Greta Thunberg sought to draw global attention to the demonstrations against new agriculture laws. "Why aren't we talking about this?!" Rihanna tweeted to her more than 100 million followers, linking to an article on moves to cut internet services at protest sites. The foreign ministry urged people not to respond to "sensationalist social media hashtags" from celebrities. Farmers protest on a blocked highway at the Delhi-Uttar Pradesh state border in Ghaziabad on Feb. 2. 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