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27 Nov 2013
Flash: Tensions set to grow in Asia – BBH
FXstreet.com (London) - Research teams at BBH have pointed out the risk in Asia which may impact the dollar.
Key Quotes:
“The US sent two unarmed B-52s into the airspace that was claimed by China over the past weekend”.
“Tensions are set to grow in the region. China's sole aircraft carrier is heading toward the South China Sea, according to new reports, where there are territorial disputes with other Asian countries, including the Philippines and Vietnam”.
“If it were moving to the East China Sea, where those islands and now airspace dispute are located, the aircraft carrier would likely go through the East China Sea. As is the US practice as well, China's aircraft carrier is being escorted by four other ships, including two destroyers and two frigates. The point is to underscore the heightened tensions that may persist”.
“It also suggests that the diplomatic advantage China may have accrued by the failure of Obama to attend the ASEAN meetings during the US government closure, has been largely offset by the clumsy move. Separately, note around the middle of the month Spain's National Court issued a warrant for Chinese officials (including former President Zemin) for genocide in Tibet. There has been a flurry of diplomatic consultations, but thus far, little sign of retaliation by China”.
Key Quotes:
“The US sent two unarmed B-52s into the airspace that was claimed by China over the past weekend”.
“Tensions are set to grow in the region. China's sole aircraft carrier is heading toward the South China Sea, according to new reports, where there are territorial disputes with other Asian countries, including the Philippines and Vietnam”.
“If it were moving to the East China Sea, where those islands and now airspace dispute are located, the aircraft carrier would likely go through the East China Sea. As is the US practice as well, China's aircraft carrier is being escorted by four other ships, including two destroyers and two frigates. The point is to underscore the heightened tensions that may persist”.
“It also suggests that the diplomatic advantage China may have accrued by the failure of Obama to attend the ASEAN meetings during the US government closure, has been largely offset by the clumsy move. Separately, note around the middle of the month Spain's National Court issued a warrant for Chinese officials (including former President Zemin) for genocide in Tibet. There has been a flurry of diplomatic consultations, but thus far, little sign of retaliation by China”.