Awkward

And things were looking so good for Chinalco. The state-owned mining firm had made its big move, a proposed US$19.5 billion cash injection into troubled Anglo-Australian miner Rio Tinto, in return for the rights to two seats on the board and minority stakes in some valuable assets. But Chinalco may have to keep the bubbly on ice for the moment. Rio’s largest shareholder, UK-based Legal & General Investment Management, said it would vote against the Chinalco deal as it believes “shareholder pre-emption rights are paramount.” The comments came after a meeting between Rio management and the money manager. Awkward! There were also some unkind words towards the US$787 billion American stimulus package, courtesy of our pals at the state-run-news-agency-mouthpiece. Xinhua said in an editorial that so-called “Buy American” provisions in the US stimulus plan were a “poison” that could worsen the global financial crisis. All this just before Secretary of State Hillary Clinton makes her first visit to China as America’s top diplomat. Seriously awkward. Meanwhile the G7’s sabers are rattling a little less loudly. The group softened its criticism of China and praised the country for its “continued commitment to move to a more flexible exchange rate.”