UPI NewsTrack Business

U.S. stocks fall as recession talk grows

NEW YORK, Dec. 17 (UPI) -- U.S. stock indexes closed down Monday as recession talk grew and the U.S. Federal Reserve auctioned $20 billion in credit to boost bank lending.

The Dow Jones industrial average tumbled 172.65 points, or 1.29 percent, to finish at 13,167.20, its lowest close since the blue-chip barometer fell below the 13,000 mark Nov. 28. The broader Standard & Poor's 500 Index lost 22.05 points, or 1.5 percent, at 1,445.90.

On the New York Stock Exchange, 581 stocks advanced and 2,605 declined, on volume of 3.6 billion shares.

The technology-heavy Nasdaq Composite Index fell 61.28 points, or 2.32 percent, at 2,574.46.

In London, the FTSE 100 stock index closed down 119.20 points, or 1.86 percent, at 6,277.80.

Japan's Nikkei 225 stock index finished down 264.72 points, or 1.71 percent, at 15,249.79.

The benchmark 10-year U.S. Treasury note rose 23/32 to yield 4.15 percent and the 30-year bond increased 1 6/32, yielding 4.59 percent.

The U.S. dollar fell to 112.94 yen from 113.40 yen in New York late Friday. The euro slipped to $1.4391 from $1.4423.

U.S. trade deficit falls 5.5 percent

WASHINGTON, Dec. 17 (UPI) -- The U.S. trade deficit in the third quarter of 2007 fell 5.5 percent to $178.5 billion, its lowest level in two years, the U.S. Commerce Department said Monday.

The third-quarter deficit, lower than many economists expected, followed a revised $188.9 billion gap in the second quarter, the department said.

The gap amounted to 5.1 percent of the economy, the least since the first three months of 2004, compared with 5.5 percent in the second quarter.

The goods deficit shrank 2.2 percent to $199.7 billion in the third quarter as record levels of export sales helped offset a rising foreign oil bill.

The services surplus increased 3 percent to $26.5 billion. The surplus in investment-income flows jumped 61.5 percent to $20.5 billion.

The deficit was largely caused by "an overvalued dollar" against the Chinese yuan, U.S. dependence on foreign oil and the competitive woes of the three domestic automakers," University of Maryland School of Business Professor and former U.S. International Trade Commission Chief Economist Peter Morici said.

Together, the trade deficit with China and on petroleum and automotive products total about 110 percent of the deficit on trade in goods and services, he said.

Separately, international buying of U.S. financial assets increased $114 billion in October, the most in five months, the U.S. Treasury Department said.

Nortel sues Vonage over patents

WILMINGTON, Del., Dec. 17 (UPI) -- Nortel Networks Corp. sued Vonage Holdings Corp., claiming the U.S. voice-over-Internet protocol firm violated nine patents related to Internet phone services.

The Toronto telecommunications-equipment maker claims in its lawsuit, filed in U.S. District Court in Delaware, that Vonage of Holmdel, N.J., violated nine patents related to Internet phone services and related features such as 911 and 411 calling and click to call.

The lawsuit counters Vonage allegations that Nortel had violated three of its patents, Nortel said.

Vonage had continued litigation initiated in 2004 by Digital Packet Licensing Inc., which owned the patents that enable voice-over-Internet-Protocol technology.

Vonage acquired the patents July 10, 2006.

Vonage settled three lawsuits with major U.S. telecom companies Verizon Communications Inc., AT&T Inc. and Sprint Nextel Corp.

BlackBerry maker to employ 1,000 in Texas

IRVING, Texas, Dec. 17 (UPI) -- BlackBerry smart phone maker Research In Motion Ltd. said Monday it will employ more than 1,000 people at its new U.S. headquarters in suburban Dallas.

The Canadian wireless device company said the new hires will be in a variety of fields, from research and development to legal.

Co-Chief Executive Officer Jim Balsillie said there is no precise timetable for how quickly the new jobs will be filled, but he expects to reach the 1,000 figure in a few years.

Research In Motion, of Waterloo, Ontario, will occupy 100,000 square feet in a recently renovated six-building office complex in Irving, Texas, between Dallas and Fort Worth, The Dallas Morning News reported.

Balsillie said the company had considered a half-dozen other cities during the past several months and selected Irving for its "access to skilled people."

"The whole proximity to Latin America was a real bonus, with all the growth there," he said.

Balsillie said Irving had offered his company no financial incentives to establish its U.S. headquarters in Irving.