Remember the downing of a US spy plane by China in the early months of the Bush administration? It looks as though Beijing is taking the measure of President Obama in his first months. They have been harassing a US spy ship in international waters, according to reports.
Reuters reports the head of US intelligence (not sure who that is these days, Panetta at CIA?) says the harassment is the worst since the 2001 incident.
Markets don’t like uncertainty, especially between two nuclear-armed world powers. CHF might outperform under the circumstances. The Franc has been weak today as the safe-havens give back gains. It trades now at 1.4705 versus the euro.
