Qualcomm makes $3.1 bln push compressed gold - Reuters

(Corrects dividends and buybacks refers to the sixth paragraph to say all of $ 4.1 billion to approximately $ 3.5 billion)

-The author is a columnist for Reuters Breakingviews. -The author is a columnist for Reuters Breakingviews. The views expressed are his own-

By Robert Cyran

NEW YORK, January 5 (Reuters Breakingviews) - Qualcomm (QCOM)(O) performs a thrust of 3.1 billion for gold from the tablet. Giant wireless technology did not much success beyond cell phones. Yet other devices, such as Apple (AAPL).(O) iPad and its competitors are starting to take the technological advance of smartphones. Purchase Atheros Communications (ATHR)(O) gives Qualcomm a way.

Qualcomm became a company of 84 billion, producing chips for mobile phones and licenses of some underlying technologies needed to connect a phone to another. But there is a greater emerging opportunity. Devices that were once wired, like most computers and fixed are increasingly mobile. And new gadgets, such as tablets and electronic readers, proliferate.

Atheros, conversely, is Wi - Fi chips and other kinds of processors which connect devices locally. But smartphones and tablets as long-distance and local connectivity needs. So for Qualcomm, aspire Atheros means that it should be able to make a smart 4 G connectivity of cell phone and Wi - Fi. This integration of multiple tasks is often a recipe successfully for the bulk of sales, higher margins and increased market share.

Fortunately for Qualcomm, its foray doesn't come with too high a price. It paid about 22 times estimated earnings for 2011 Atheros. Which is consistent with the average price-to-earnings ratio of five Atheros, according to the Barclays.

That said, it's fusion of Qualcomm so far greater effort. And deals with greater may lead to indigestion and distract management headaches. In addition, the company had more than 20 billion of available dry powder before the agreement, so that there could be more ambitious future mergers.

However, Qualcomm deserves the benefit of the doubt for the moment, given its strong performance in the long term and the record of the return cash to shareholders. In the fiscal year ending in September, for example, the company distributed all of $ 4.1 billion to fund produces its operations of return to shareholders in the form of dividends and stock buybacks.

As long as this discipline holds, most recent purchase of Qualcomm has all chances to prove a smart bet on a market which is explosive upward mobile.

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CONTEXT NEWS

-January 5, Qualcomm said that he had agreed to acquire Atheros Communications for $45 per share in cash, a $ 3.1 billion enterprise value. The price represents a premium of 22 percent January 3 closing price, the eve of the news of the impending fusion have emerged.

GLOBAL MARKETS-Japan stocks shine, other LAGS ahead pays - Reuters

* Earnings Nikkei, aided by the weakness of the yen

* Copper bounces, high in folder

* Markets cheer American data optimistic, but cautious before payroll (updates prices)

By Ian Chua

(SYDNEY, 6 Jan Reuters) - Japanese Stocks is joined on Thursday as investors pull shares of large exporters after the dollar hit two weeks highs against the yen, but elsewhere in Asia, markets have been more strained prior to influential U.S. non-farm payrolls report.

Copper climbed 1% to a maximum of $9,654.25 per tonne, which brings record $9,754 struck Tuesday in sight, after that a report from ADP Wednesday showed a record 297,000 us private sector jobs were created in December.

It is the clearest signal in months that a resumption of the largest global economy was moving up to speed and prompted analysts to raise their forecast for data closely monitored non-farm payrolls due Friday.

Estimates centre now on an increase of 175 000 jobs, more than 140,000 in an earlier investigation of Reuters.

Some analysts were sceptical about the size of the jump in the ADP employment report, it follows a string of recent optimistic U.S. data showing that the economy is picking up steam.

"Markets are now wait for compensation of U.S. Friday for confirmation of the strong trend," said Hiroaki Osakabe, Manager of Fund Chibagin Asset Management in Tokyo. "But investors then will focus on U.S. effects data rate of the dollar/yen."

Index Nikkei 225 of the Japan increased by 1.4% and closed above 10,500 important psychological barrier. It ended its best level since May 2010.

Major exporters, including Canon Inc. and Toyota Motors rose more than 1%.

Index of the MSCI stock of Asia-Pacific outside Japan edged up 0.1%, having drifted in negative territory.

Earlier this week, technical indicators showed that it was close to being overbought after a strong late 2010 rally, making wary investors that markets were due for a withdrawal.

Southwest loyalty program gets the first Revamp in 23 years to stimulate circulation - Bloomberg

Southwest Airlines Co. has redesigned its frequent passenger program to add rewards without dates blackout and redemptions for international flights on other carriers.

The first major revamp of the loyalty plan rapid rewards since its inception in 1987 should add "hundreds of millions" dollars per year in income, Chief Executive Gary Kelly said yesterday a Conference at the headquarters of Southwest Dallas.

To the Southwest, the largest company air cheap spent nearly 100 million dollars on the project and is designed to gain new customers and deepen linkages with existing business travellers who typically pay higher prices. Carrier unveiled a Web site for passengers today to explain the changes to take effect March 1.

"If we get our fair share of frequent fliers, the opportunity is huge," said Kelly. "We are very confident that this is a good investment."

Members of rapid rewards now receive credit for each flight and earn a free flight after accumulating 16 credits. System rewards most long flights with more credits and allows passengers to accumulate credits beyond 16.

"As soon as you win a prize, you are free to Southwest", said Kelly. "It is not encouraging loyalty."

The new program gives points, based on the price of the ticket and the category of fares, which can be accumulated for the biggest prize. Points per dollar rate increases with the fare type.

No Expiration

There is no expiration date as long as the account remains active within a period of 24 months, and there was no date of blackout on redemptions are prohibited and limitless pricing redeemed per flight, said Ryan Green, Senior Director in the South-West of loyalty.

Points can also be redeemed by a provider third for international flights and those in Hawaii, hotels and rental cars even if SW flies only in the 48 contiguous States. Points can be purchased for the new programme closer to the grant. Southwest also adds a second category elite-flier for those who travel more often which includes additional benefits.

Even with the most generous rewards, sud-ouest Southwest isn't expected price repurchases exceed their current 7 to 8% of the total revenue passenger miles, Kelly said. Expected permanent fresh southwest of new plan differ significantly from current levels.

The program structure more differentiates southwest of competitors, said Dave Ridley, Vice President of marketing and revenue. It is the only big U.S. carrier who charge for checking a bag of first and second or make changes to a purchased itinerary and there is no assigned seating.

"We have the best policies to bag best policies change, the best customer service," said Ridley. "Now, we have the best frequent passenger program." It is to bring new customers we. »

To contact the reporter on this story: Mary Schlangenstein in Dallas at the maryc.s@bloomberg.net

To contact the editor responsible for this story: Ed Dufner at edufneror jbutters@bloomberg.net

Drops of gold for a fourth day demanded the highest margins of Dollar of investor - Bloomberg

Gold dropped for a fourth day in London as of the dollar and the signs of a recovery in the demand economy reduced to the United States for the metal as an alternative investment and the richness of the data protection.

One dollar increase a week against the euro before tomorrow a report that may show U.S. pay has increased for a third month. Reports this week showed orders placed with factories and manufacturing improved U.S. Gold, which usually moves inversely to the greenback yesterday slipped at lowest level since Dec. 16. December 7, it reached a record $ 1,431.25 an ounce.

In the middle of the "dollar stronger and more important, growing conviction within the recovery in the U.S. as macro data improves, but struggling to succeed despite the very decent physical demand in much of Asia," said Edel Tully, UBS AG London analyst in a report.

Immediate delivery bullion lost $5.17, or 0.4%, to $1,373.15 an ounce at 11 p.m. in London. Prices fell as low as $1,364.05 yesterday, decline for a third day of the worst run in seven weeks. Metal for February delivery was little changed at $1,373.30 on Comex in New York.

Bullion rose 1,376 $ an ounce for the morning "fix" in London, used by some mining companies to sell output $ 1,368 to fixation yesterday afternoon.

Gold jumped 30 percent last year after Governments spend trillions of dollars and kept low interest rates to strengthen economies following the worst global recession since the second world war. Precious metals prices rose lost confidence in investors currencies and becomes more concerned about the financial health of the Euroregion, which the Ireland countries.

Increase in payroll?

Reports show yesterday service industries in the United States in December at the fastest rate since 2006 and businesses boosted pay month last by the most since at least 2001. A report tomorrow may show U.S. non-farm payroll increased by 150,000 in December, median forecast of 77 economists of a Bloomberg News survey.

Active gold in negotiated products fell yesterday 3 tonnes to 2,091.77 tonnes according to data compiled by Bloomberg 10 suppliers. Holdings reached a record high 2,114.6 tonnes on 20 December. Added money assets 1.68 tons to 15,105.23 tons, show data from four vendors.

Money for immediate delivery in London fell by 0.2% in $29.19 an ounce. Metal fell to 5.6% this year after breaking from 83% in 2010 and reaching a maximum of 30 years of $31.2375 January 3.

"Silver and Platinum are different from gold in what they are used heavily in industry too," said Sam Lee, a trader to KR Futures Co. "improvement in economic indicators in the United States means silver and Platinum may continue to climb higher, while gold can flatten".

Platinum was 0.3 percent higher at $1,733.75 an ounce. Lost Palladium 1.6% $764.35 an ounce. It is the best performing precious metals last year with a wave of 97% and reached $807.75 on January 3, the highest level since March 2001.

To contact the reporters on this story: Nicholas Larkin in London at nlarkin1@bloomberg.net. Sungwoo Park in Seoul to spark47@bloomberg.net.

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net.

BP, Transocean shares the shrug off the coast of us oil - spill report Reuters

By Tom Bergin

LONDON | Thursday January 6, 2011 7: 00 pm EST

(London 6 Jan Reuters) - shares of BP and Transocean spent Thursday as investors bet a new presidential panel U.S. report that spread the blame for worst ever spill of the country meant that companies avoid massive fees on a charge of gross negligence.

Shares in London on the BP list were up 1.6% 507.6 pence at 1100 GMT, Transocean Switzerland shares listed shares rose by 3.9%. STOXX 600 European oil and gas sector index increased by 1.2%, high oil prices.

An investor in top 10 in BP said the fact that the liability of the eruption was shared with the Transocean drilling contractor and well cement Halliburton suggests major London-based oil is less likely to be facing charges of gross negligence.

By U.S. law, BP faces fines of $ 5 billion because the spill occurred on its exploration block.

However, the fine may rise above $ 21 billion if oil second in Europe by market value was found that gross negligence in the run-up to the explosion.

Peter Hitchens, analyst of oil at Panmure Gordon, said the comments made in the report of management failure that caused the explosion on the deepwater Horizon platform reflects industry all defects, also made BP appear less guilty.

And while the report was damning, Richard Griffith, the evolution of securities analyst said that it could also mean that BP may relieve some of the costs of cleaning the spill on contractors.

"The report may provide grounds for BP to claw money back of license partners and possibly Transocean and Halliburton," he said in a research note. (Other reports by Raji Menon and Sarah Young;) (Editing by Greg Mahlich)

UK Lawmakers Question Deep Water Drilling Safety - Wall Street Journal

(Adds commentary from industry, Total gas discovery.)

London (Dow Jones) - U .K legislators Thursday raised serious doubts as to whether if the oil industry is ready to tackle a similar to the Deepwater Horizon rash should occur in the North Sea, but they stop recommending a moratorium on drilling similar to those imposed in the United States.

Instead of this, the United Kingdom Parliament Energy Committee on climate change called Government and regulators to compel companies to improve their spill contingency plans, install equipment additional failsafe on platforms and increase the financial provisions for spill costs.

Major changes to the regulation of drilling could have a significant...

The future shares gain on optimism before claims unemployed - Reuters

 Traders work on the floor of the New York Stock Exchange at the beginning of the trade session at New York, 3 January 2011.Credit: Reuters, Mike SegarBy Rodrigo Campos

NEW YORK | Thursday January 6, 2011 7: 51 pm EST

NEW YORK (Reuters) - Stock index future rose Thursday after surprisingly strong optimistic feeling of job creation data suggested that the larger global economy was on a solid recovery path.

Emphasis will be placed on initial jobless claims report, expected at 8: 30 a.m. EST and displays an increase of 400,000 applications, 388 000 in the previous week.

After having hit a high of 1 278 Wednesday and on the heels of better economic data, the S & P 500 faced resistance in the region of 1 300-1,325 according to Paul Mendelsohn, investment Chief Strategist at Windham financial in Charlotte, Vermont).

Jobless claims will come a day after a report showing employers in the private sector has added a surprising jobs 297,000 in December, prompting economists to raise predictions for widely followed Government payroll numbers expected Friday.

Mendelsohn said claims unemployed could rise as forecast without doing too much damage on the stock market. "This would mean that the tendency is always positive." "Number of Friday will be critical and this is what the market is really gearing for", he said.

S & P 500 future increased by 4 points were above fair value, a formula that evaluates prices taking into account interest rates, dividends and the time of expiry of the contract. Dow Jones industrial average future acquired 34 points and Nasdaq 100 future added 8 points.

In a memo Wednesday, Citigroup said he anticipated 2011 to be a year of "strong but uneven global growth" and upgraded U.S. shares to "neutral".

Several major retailers U.S. missed Great Wall Street expectations for sales December blizzard flabbergasted paralytic slowdown a shopping for two months. Still, Costco Wholesale Corp. (cost).(O) posted an increase of 6% in sales even store.

U.S. - traded shares of BP Plc (BP).(L) (PB.)(N) and Transocean Ltd (RIGN.)(VX) (RIG.)(N) is a scathing report from a panel of U.S. presidential who blames the worst-ever U.S. spill over the risky decisions. BP has increased by 2.1% to $47.48 and Transocean earned 1 per $100 at 74.

The growth of new jobs in the sector private prediction of three times, transformed losses early Wall Street gains Wednesday. Financial shares has paved the way, as the Dow Jones industrial average.DJI added 0.3 percent, the Standard & Poor of 500.SPX increased by 0.5% and Nasdaq.IXIC Composite index had increased by 0.8%.

(Reporting by Rodrigo Campos; editing by Jeffrey Benkoe)