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* Citigroup Inc. agreed to buy Principal Financial Group Inc.’s mortgage operations for $1.26 billion to expand its servicing business as rising interest rates curb refinancings.

* Thomson, a provider of digital cable and satellite set-top boxes, will pay about $400 million to DirecTV Group Inc. for its Hughes Network Systems set-top box manufacturing assets to help reinforce its video networks unit.

* Qualcomm Inc. lifted its profit and revenue forecasts because of increasing demand for phones that allow video downloads and faster Web access. Net income in the third quarter will rise to as much as 53 cents a share from 33 cents a year earlier, the company said. Sales will surge as much as 46% to $1.35 billion.

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