A nasty wee thing
These pink spots are the coral spot fungus Nectria cinnabarina. Coral Spot is a weak pathogen of broadleaf trees, which goes through a spongy conidial stage (producing asexual spores) and a tough perithecial stage (producing sexual spores).
The effect of Coral Spot infection is that usually small twigs and branches die back, and then dense clusters of soft, pinhead-sized pink fungal blobs (the sexual stage in the complex lifecycle of this fungus) break through the thin bark. Later the blobs harden and turn dark red (this is the conidial stage in the lifecycle), and by this time the infected timber is so weak that it tends to snap off during windy weather.
Nectria, the genus name, comes from the same stem as necrosis and means 'killer'. The specific epithet cinnabarina means cinnabar coloured, like red lead.
In the unlikely event that you feel inclined to chew it, don't, it's poisonous to us apes!
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