9:55 AM
Retail sales down 4.1 percent last week: report
Addison Ray
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6:27 AM
Microsoft co-founder relaunches tech patent suit
Addison Ray
SEATTLE | Wed Dec 29, 2010 7:06am EST
SEATTLE (Reuters) - Microsoft Corp co-founder Paul Allen relaunched a wide-ranging patent lawsuit against Apple Inc, Google Inc, Facebook and others with specific allegations that the companies are illegally using technology owned by his firm.
Interval Licensing LLC, a small research company set up by Allen in 1992, originally filed a broad patent suit in federal court in Seattle in August, but Judge Marsha Pechman dismissed it on the grounds that it did not specify any actual products or devices. The revised suit was filed by Interval on Tuesday.
Allen, who co-founded Microsoft with Bill Gates in 1975, claims Interval was central to research and development of technology in the Internet arena in the 1990s, amassing more than 300 patents and providing research assistance to Google.
In the suit, Allen's firm claims four of its patents -- chiefly related to the way Web data is sorted and presented -- have been infringed by a number of successful companies.
The first patent concerns the generation of data related to information being browsed. Interval claims Google uses this technology to match advertisements from third parties to content being displayed, while AOL's sites use it to suggest items related to news stories.
Interval claims Apple's iTunes service uses the technology to suggest music based on a user's searches, and that eBay Inc, Facebook, Netflix, Yahoo Inc and Office Depot's sites have also infringed the patent in the way they direct users to related content.
The second and third patents concern relaying information on a computer screen in a peripheral, unobtrusive manner, such as in an instant messaging box or overlay.
Interval claims its patent has been infringed by features in AOL's Instant Messenger, Apple's Dashboard, Google Talk and Gmail Notifier, Google's Android phone system and Yahoo Widgets.
The fourth patent concerns alerting web browsers to new items of interest based on activity of other users. Interval claims AOL uses this technology on its shopping sites, while Apple's iTunes uses it to recommend music.
Interval claims eBay, Facebook, Google, Netflix, Office Depot, Staples Inc, Yahoo and Google's YouTube all have infringed the patent in the way they suggest content to users.
Interval has asked the court for damages and a ban on products that use the disputed patents.
The case is C10-1385 MJP in the U.S. District Court Western District of Washington at Seattle.
(Reporting by Bill Rigby; Editing by Derek Caney)
3:32 AM
Stock index futures signal early gains
Addison Ray
PARIS | Wed Dec 29, 2010 5:19am EST
PARIS (Reuters) - Stock index futures pointed to a higher open on Wall Street on Wednesday, with futures for the S&P 500 up 0.14 percent, Dow Jones futures up 0.14 percent and Nasdaq 100 futures up 0.18 percent at 0948 GMT (4:48 a.m. ET).
European stocks inched higher in early trade, mirroring gains in Asia and on Wall Street and adding to their sharp December rally, but the rise was limited by a drop in mining shares as heavy rains disrupt Australian coal exports.
Investors will keep an eye on the fixed income market on Wednesday, as U.S. Treasuries prices fell broadly and some maturities were on track for their worst monthly performance in years after an auction of 5-year notes drew dismal demand.
Oil steadied above $91 a barrel on Wednesday ahead of U.S. inventory data expected to show a drawdown in crude and distillate stocks due to severe weather in the world's largest oil user.
The dollar stabilized on Wednesday after a spike in U.S. Treasury yields helped it recover from a sharp loss against the euro in a yo-yo session the previous day marked by thin year-end flows.
SAP AG (SAPG.DE) must pay Oracle Corp (ORCL.O) prejudgment interest on a recent $1.3 billion copyright infringement verdict, but not at the formula suggested by Oracle, according to a judge's ruling filed on Tuesday.
Shares of rare earths prospectors soared on Wednesday after China cut export quotas, threatening to reduce already tight global supplies and risking action from the United States at the World Trade Organization.
Private equity company Blackstone Group (BX.N) has joined the bidding for Australian shopping-center owner Centro Properties Group's (CNP.AX) asset portfolio, the Wall Street Journal reported on Tuesday.
Starbucks Corp (SBUX.O) denied Kraft Foods Inc's (KFT.N) claim that the packaged food maker performed "exceptionally well" under an agreement to sell Starbucks' packaged coffee, court documents showed.
The Dow and S&P 500 rose in light trading on Tuesday, extending December's rally, as cold weather in the Northeast lifted oil prices and energy shares.
The Dow Jones industrial average .DJI was up 20.51 points, or 0.18 percent, at 11,575.54. The Standard & Poor's 500 Index .SPX was up 0.98 point, or 0.08 percent, at 1,258.52. The Nasdaq Composite Index .IXIC was down 4.39 points, or 0.16 percent, at 2,662.88.
(Reporting by Blaise Robinson; Editing by Jon Loades-Carter)
3:12 AM
SAN FRANCISCO | Wed Dec 29, 2010 5:20am EST
SAN FRANCISCO (Reuters) - SAP AG must pay Oracle Corp prejudgment interest on a recent $1.3 billion copyright infringement verdict, but not at the formula suggested by Oracle, according to a judge's ruling filed on Tuesday.
Oracle had sought more than $211 million in interest after winning a high stakes trial in an Oakland federal courtroom last month.
SAP argued in court filings that it shouldn't have to pay any interest. However, Europe's top software maker asked U.S. District Judge Phyllis Hamilton to use a different methodology should she decide interest was necessary.
Hamilton endorsed SAP's formula on Tuesday, though she did not specify the amount SAP would pay.
In its own court filing, SAP pegged the number at roughly $16.5 million.
"While we believe that Oracle should only be awarded damages, we appreciate that the Court agreed with SAP on the proper calculation of interest in this case which dramatically lowered the amount," a spokesman for SAP said in an emailed statement.
A representative for Oracle declined to comment.
The case in U.S. District Court, Northern District of California is Oracle USA, Inc., et al. v. SAP AG, et al, 07-1658.
(Reporting by Dan Levine; Editing by Phil Berlowitz, Gary Hill)
12:05 AM
By Alex Richardson
SINGAPORE | Wed Dec 29, 2010 1:39am EST
SINGAPORE (Reuters) - Asian shares rose on Wednesday, with Japan's Nikkei maintaining a fourth quarter rally as investors hunted bargains in one of the developed world's cheapest markets, but Australia's main index lagged as bad weather hit shares in mining heavyweights.
The dollar was steady after a sharp reversal against the euro in an erratic previous session, while the Swiss franc held near a record high against both the dollar and the euro as investors sought refuge from euro zone debt.
A weaker dollar had lifted demand for commodities priced in the U.S. currency, and London Metal Exchange copper rose to a record $9,437.50 a tonne on Wednesday, boosted also by a stoppage at a key port in major producer Chile.
Copper's strength failed to support mining giants Rio Tinto (RIO.AX) and BHP Billiton (BHP.AX), which both fell more than 1 percent as heavy rain disrupted mining and shipping operations. China's Christmas Day interest rate rise also prompted investors to fret about weaker demand for industrial metals, but analysts said the impact was likely to be short-lived.
"The Chinese rate rise was key but it appears it is more about curbing inflation and demand for base metals will not fall sharply," said Ben Potter, research analyst at IG Markets.
Tokyo's Nikkei .N225 rose 0.5 percent, despite the stronger yen that hurt some big exporters such as Canon Inc (7751.T). The Nikkei has risen nearly 10 percent in the final quarter of 2010, although it is down 2 percent for the year.
With shares trading around 1.1 times book value, Japan remains one of the cheapest developed markets after debt-hit Ireland, Greece and Italy.
"There is no solid reason to sell Japanese shares actively as the outlook for the market is still bright," said Mitsushige Akino, chief fund manager at Ichiyoshi Investment Management.
MSCI's broadest index of Asia Pacific shares outside Japan .MIAPJ0000PUS was also up 0.5 percent and has risen more than 13 percent this year. Australia's benchmark .AXJO underperformed the region to end flat as the big miners weighed.
Australia's Lynas Corp (LYC.AX), which owns the richest known deposit of rare earth outside China, rose 10.8 percent after China, which produces 97 percent of the minerals, cut it export quotas. Rival Arafura (ARU.AX) rose 11.1 percent.
DOWNBEAT DATA
U.S. shares eked out gains on Tuesday on strength in oil majors such as Chevron (CVX.N) and Exxon Mobil (XOM.N), although downbeat consumer confidence data kept gains in check. The Dow Jones industrial average .DJI gained 0.2 percent and the broader S&P 500 .SPX was up 0.1 percent.
Foreign exchange trading was typically choppy in thin year-end trade, when light volumes can cause exaggerated moves from modest flows of funds.
A spike in U.S. Treasury yields boosted the allure of the U.S. currency, with the dollar index .DXY, which measures its performance against a basket of major currencies, steady around 80.3, off an overnight low of 79.596.
"The market is not driven by factors, but the thin conditions mean there could be more volatile moves," said a trader at a Japanese bank.