The Mint Report for 05 August 2010

The Mint Report for 05 August 2010

RIL is expanding its presence in America’s shale gas market. The company has now picked up a 60% stake in a venture with Carrizo Oil & Gas. That deal is worth a total of $392 million. $340 million will be in cash and the remainder will be used to develop the field, covering three-quarters of the drilling costs. This is RIL’s third American shale gas acquisition in five months, but the first in which it’s got a majority stake.

Despite news of the deal, RIL stock lost 0.88% on the BSE, closing Thursday’s trade at 1006.95.

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BlackBerry’s parent company is standing its ground in the midst of pressure from several governments. Research in Motion is saying it won’t share codes for decrypting some of the data sent through BlackBerry phones. The reason- RIM says it does not have the codes. According to the company, it does not keep such codes precisely in order to ensure neither it nor anyone else can read encrypted information. Already, Saudi Arabia and the UAE have banned some BlackBerry services. And Indonesia is looking to stop some services as well. India is also one of the countries demanding RIM share information so it can intercept and read data sent via BlackBerrys.

And food inflation has reached a 13-month low. The food price index shot up 14.26% in the week to 24 July. That’s a notch lower than the previous week’s 14.29%. Despite the fall, finance minister Pranab Mukherjee on Thursday said the Indian economy remained under inflationary pressure. Mukherjee said rising costs were a consequence if economic growth. The RBI is widely expected to make another hike in policy rates when it meets on 16 September.