>>> HPQ - to Resume Share Repurchase Program Reiterates FY14 and FY15 Target of

HPQ to Resume Share Repurchase Program Reiterates FY14 and FY15 Target of Returning at Least 50 Percent of Free Cash Flow to Shareholders Through Dividends and Share Repurchases 

HP (NYSE: HPQ) today announced that it will resume its share repurchase program under its current authorization after previously suspending activity due to the possession of material non-public information. The company is no longer in possession of such information.

HP remains committed to its fiscal 2014 and fiscal 2015 capital allocation strategy of returning at least 50 percent of free cash flow to shareholders through dividends and share repurchases and intends to make up for the fiscal 2014 shortfall over the remainder of fiscal 2014 and 2015.

"We are committed to a disciplined approach to capital allocation and we intend to return at least 50 percent of FY14 and FY15 free cash flow to shareholders in the form of dividends and repurchases," said Cathie Lesjak, Executive Vice President and Chief Financial Officer, HP. "We are confident in our strategy and our ability to execute, and continue to believe our share price does not reflect HP's intrinsic value."

>>> Outlook

For fiscal 2014, HP reaffirms its estimate of non-GAAP diluted net earnings per share (EPS) to be in the range of $3.70 to $3.74 and GAAP diluted net EPS to be in the range of $2.60 to $2.64. Fiscal 2014 non-GAAP diluted net EPS estimates exclude after-tax costs of approximately $1.10 per share, related primarily to restructuring charges and amortization of intangible assets.

For fiscal 2015, HP reaffirms its estimate of non-GAAP diluted net EPS to be in the range of $3.83 to $4.03 and GAAP diluted net EPS to be in the range of $3.23 to $3.43. Fiscal 2015 non-GAAP diluted net EPS estimates exclude after-tax costs of approximately $0.60 per share, related primarily to amortization of intangible assets and restructuring charges.

HP reaffirms its fiscal 2015 operating cash flow outlook of $10 billion to $10.5 billion, with free cash flow of $6.5 billion to $7 billion.

HP's outlook does not include one-time GAAP-only charges the company is expected to incur in connection with the separation transaction announced on October 6, 2014, including advisory and tax costs which will be quantified at a later date.

(BFW) AbbVie/Shire Deal Has 75% Chance of Going Through: Bernstein

AbbVie/Shire Deal Has 75% Chance of Going Through: Bernstein
2014-10-15 11:52:27.677 GMT

By Cristin Flanagan
Oct. 15 (Bloomberg) -- AbbVie/Shire deal still has “high
probability” of going through, writes Bernstein analyst Aaron
Gal, after yday’s post-mkt announcement that ABBV was
reconsidering recommendation on deal.
* Recent regulations may require more borrowing, regulations
on “decontrolling” ABBV units now more unwieldy, “Double
Irish” change may also have contributing effect
* ABBV doesn’t have a lot of other attractive strategic
options, may be hard to renegotiate deal under U.K. law
* AbbVie may recommend lower Shire offer, or add a CVR on
inversion, Bloomberg Intelligence’s Sam Fazeli writes;
today’s Shire drop may make it easier for ABBV to return
with lower offer
* NOTE: Earlier, Shire Down Most Since 2002; Astra, S&N Fall
on Inversion Doubt
* Shire Says AbbVie Should Proceed With Merger; Breakup
Fee $1.64b
* AbbVie May See $1/Shr Decline If Shire Deal Ended: BMO
* AbbVie Attractive as Standalone for M&A, Buybacks:
Jefferies
* AbbVie Attractive as Standalone for M&A, Buybacks:
Jefferies</li></ul>
* ABBV board to meet Oct. 20 to reconsider recommendation


For Related News and Information:
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First Word newswire: NH BFW<GO>

To contact the reporter on this story:
Cristin Flanagan in New York at +1-212-617-8919 or
cflanagan1@bloomberg.net
To contact the editors responsible for this story:
Arie Shapira at +1-212-617-1488 or
ashapira3@bloomberg.net
Cristin Flanagan

(NPW) Apple, Facebook paying female staff up to US$20,000 to freeze their eggs

Apple, Facebook paying female staff up to US$20,000 to freeze their eggs
2014-10-15 11:50:11.549 GMT


Apple, Facebook paying female staff up to US$20,000 to freeze
their eggs

By Aaron Taube, Business Insider
Oct. 15 (National Post) -- Apple and Facebook will pay
female employees up to US$20,000 to help cover the cost of
freezing their eggs.
The goal is to enable women who want to continue focusing
on their careers without sacrificing their chance to have
children later on.
NBC News reports that Facebook recently began its program
and that Apple will start paying employees who want to freeze
their eggs in January.
Known as oocyte cryopreservation, egg freezing is a
process by which a woman extracts and stores her eggs so that
they can be reinserted into her uterus at a later date,
allowing her to have children at a time when she might
otherwise be infertile.
Related
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Questions
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Forever
Why Reddit Might Actually Benefit From Killing Its Work-
From-Home Policy
Scientific advancements have made the process increasingly
successful in recent years, with a 2006 study00494-4/abstract )
finding that fertility rates using frozen eggs were comparable
to those achieved using fresh ones.
Most women go through menopause in their late 40s or early
50s, and according to Centers for Disease Control and
Prevention data, one-third of couples where the woman is 35 or
older have fertility problems.
The period during which women approach declining fertility
is seen as prime work years for women hoping to advance in
their careers, and many professional women consider the process
a means of hitting pause on their desire to have a family.
According to a Businessweek cover story on the topic, a
2013 NYU study found that out of 183 women who froze their
eggs, 19% said they might have had children earlier if their
employer was more flexible.
Given Silicon Valley's noted lack of women in power
positions, offering employees money for this costly procedure -
it's $10,000 for every round of frozen eggs and an additional
$500 annually for storage - could help lure top female talent.
NBC reports that Facebook and Apple are the first major
employers to offer egg freezing coverage for nonmedical reasons.
SEE ALSO: 'Lean In' Isn't Enough: Women's Progress In
Leadership Has Stalled

-0- Oct/15/2014 11:50 GMT

(ReCode.Net) Apple Asks Court’s Permission to Challenge GT Bankr

Apple is seeking court permission to lodge its objections to GT Advanced Technologies’ bankruptcy filing in secret, to protect details of its confidential agreements with its would-be supplier of sapphire crystal.

The Cupertino technology giant filed a motion Tuesday asking to make its arguments under court seal to safeguard sensitive data, such as research and development details and other information related to its business process.

GT Advanced Technologies, which a year ago announced a high-profile deal to supply Apple with sapphire screens, abruptly filed for Chapter 11 bankruptcy protection on Oct. 6. Shortly thereafter, the company asked the bankruptcy court’s permission to wind down its sapphire plants.

Many of the details surrounding the bankruptcy have been shrouded in secrecy because of confidentiality agreements between GT and Apple. The New Hampshire firm said it would be subject to a $50 million penalty per incident for disclosures that violate those agreements.

The state of New Hampshire filed an objection to the secrecy, noting that GT’s request to close sapphire manufacturing plants in Mesa, Ariz., and Salem, Mass., would leave 890 people out of work.

New Hampshire’s attorney general’s office argued in a motion that while the court should protect a company’s trade secrets, safeguarding all information pertaining about the business dealings between Apple and GT “goes much too far.”‘

The state said it remains unclear how a company that was assuring its investors of progress in August could have collapsed so suddenly into bankruptcy.

“The public interest in learning what transpired where [GT] made such confident statements publicly very recently, while clearly a catastrophic storm was on the horizon is very high,” wrote Peter C.L. Roth, senior assistant attorney general.

>>> US Early premarket gappers

Gapping up: APT +24.9%, LAKE +21.3%, IBIO +10.7%, ANN +8.2%, SURG +4.7%, CCL +2.6%, CSX +2.4%, AMAT +2.3%, AMAT +2.3%, MTG +2.3%, MU +2.2%, MU +2.2%, BALT +1.5%, TKMR +1.5%, NHTC +1.5%, BAC +1.4%, STRP +1.2%, RCL +0.9%, PNC +0.8%, QCOM +0.7%, SNDK +0.6%, INTC +0.6%, KEY +0.5%, ADTN +0.4%

Gapping down: SHPG -25.1%, STO -4.3%, NSPH -4.2%, STAG -3.8%, SNN -3.6%, CUBE -3%, AZN -3%, SAN -2.9%, NOK -2.8%, GFI -2.7%, CDE -2.1%, ALU -2%, SDRL -2%, GOLD -1.9%, GWPH -1.9%, LLTC -1.8%, RIG -1.7%, ALV -1.6%, SLV -1.5%, CNET -1.4%, ESPR -1.4%, RAD -1.3%, GDX -1.3%, RIO -1.2%, TOT -1.1%, BCS -1.1%, KTCC -1.1%, UBS -0.9
%

>>> Bank of America beats by $0.08, reports revs in-line --> +1.75% Pre Open - 3

Bank of America beats by $0.08, reports revs in-line
Reports Q3 (Sep) loss of $0.01 per share, $0.08 better than the Capital IQ Consensus Estimate of ($0.09); revenues fell 2.4% year/year to $21.43 bln vs the $21.33 bln consensus.

Highlights
  • BAC reported net income of $168 million for Q3. After deducting dividends on preferred shares, the company reported a loss of $0.01 per share. The results include the previously announced pretax charge of $5.3 billion for the settlement with the DoJ which impacted earnings per share by $0.43.
  • Including the incremental credit costs associated with the DoJ Settlement, the reserve release was $407 million in Q3, compared to a reserve release of $1.4 billion in the third quarter of 2013.
  • Consumer and Business Banking reported net income of $1.9 billion, up $69 million, or 4% y/y, driven by lower provision for credit losses. Revenue was relatively stable compared to the year-ago quarter, as lower net interest income resulting from lower loan balances and yields was partially offset by higher noninterest income due to higher service charges and card income.
  • The company originated $11.7 billion in first-lien residential mortgage loans and $3.2 billion in home equity loans in the third quarter of 2014, compared to $11.1 billion and $2.6 billion, respectively, in the second quarter of 2014, and $22.6 billion and $1.8 billion, respectively, in the year-ago quarter.
  • Fixed Income, Currency and Commodities sales and trading revenue, excluding net DVA, increased 11 percent from the year-ago quarter, driven by strong results in currencies due to increased volatility in the period as well as gains in mortgages and commodities. Equities sales and trading revenue, excluding net DVA, increased 6 percent, from the year-ago quarter, driven by increased client financing revenue.
Capital Levels
  • Common equity tier 1 capital ratio was 12.0%.
  • Estimated SLR for the parent company was approximately 5.5%.
  • Tangible book value per share was $14.13.
  • Book value per share was $21.03.

WSJ : Watch Corporate Bonds for Clues to Markets’ Meltdown

Watch Corporate Bonds for Clues to Markets’ Meltdown
Investment-Grade Corporate Bonds Indicators of Stormy Weather

The reversal in markets in October has been sharp. But is it the start of something more sinister, or is it just a scare? Investors should watch the corporate bond markets for an answer.
Equity markets have given investors a rough ride. The S&P500 is down 6.6% from its September peak; Europe has fared even worse with the Stoxx Europe 600 down 8.4%. The market has flipped from worrying about the U.S. Federal Reserve starting to tighten policy to worrying about the global outlook for growth. Government bond yields have plummeted, inflation is low and falling, oil prices are collapsing and a string of extremely poor economic data from Germany has spooked investors.
But it isn’t clear that so much has changed in the big picture. The German industrial data for August has been distorted by holiday patterns; September’s numbers should show a bounce. Lower oil prices may mechanically feed lower headline inflation, but will also put more cash in consumers’ pockets. Lower sovereign bond yields signal concern, but also ease financial conditions.
An indicator of how worried investors really are might come from the corporate debt markets. High-yield bonds in the U.S. and Europe have suffered along with equities. But investment-grade bonds have remained remarkably stable.
If global financial markets are headed for more trouble, then investment-grade corporate bonds could be the canary in the coal mine. So far they have exhibited few signs of worry. The yield spread between U.S. corporate bonds and Treasurys has widened just 0.1 percentage point in the past month, Barclays BARC.LN -1.31% data show. Even this has only been because corporate debt has failed to keep up with the rally in government paper: yields have fallen.
In Europe, the market has been even more resilient, with spreads little changed from a month ago and yields lower. And Europe is really the market to watch: it is where growth is being questioned most. If European corporate bond spreads start to widen in earnest, then that spells trouble as it would signal a downturn in the fortunes of major companies. That said, even stable spreads might not be reason for optimism on stocks: corporate bonds fare better with slow growth than equities.
Conversely, high-yield bonds could yet offer reason for hope. In the U.S., yields have hit a high for the year of 6.3%; junk bonds now offer a pickup of 4.7 percentage points over similar-maturity Treasurys. Given the better growth outlook for the U.S., which should mean that defaults remain limited, that pickup could look attractive. The market is likely to be volatile, since high-yield bonds often suffer as the interest-rate cycle turns. But if investors start buying, that would indicate underlying confidence in the economy’s future.
So far, investors have been voting with their feet. Money has been piling into investment-grade bond funds. If corporate bond markets don’t crack, equity investors can still hunker down and hope that September and October’s pain will pass.