Sir Politic Would-Be, an English knight living in Venice, and a newly arrived English traveler, Peregrine, enter the piazza near Corvino’s house. Sir Politic shares his views on travel and his interest in foreign cultures. He came to Venice because his wife, Lady Would-Be, wanted to learn about Italian fashion.

Sir Politic questions Peregrine about recent news from England. Sir Politic heard a raven built a ship for the King, and he worries that it is a bad omen. Peregrine wonders if Sir Politic is trying to trick him, so he tricks him back by confirming the story. Peregrine feeds Sir Politic other outlandish stories, which Sir Politic believes are omens of enemy conspiracies. Peregrine reports on the death of a famous fool, and Sir Politic reacts in amazement, claiming the fool was a spy. Peregrine silently mocks Sir Politic’s absurdity but continues to goad the man.

Peregrine praises Sir Politic’s apparent knowledge of everything, and he feels lucky to have met someone who can instruct him on Venetian behaviors. As Sir Politic begins to brag about his closeness to noble Venetian families, Peregrine draws his attention to a commotion.