>>> Gap adjusted EPS tops pre-announced range; revs & comps in line with pre-ann

Gap adjusted EPS tops pre-announced range; revs & comps in line with pre-announcement; increases FY15 guidance to reflect gain on asset sale (guidance reaffirmed ex gain) 

Reports Q2 (Jul) earnings of $0.70 per share, excluding non-recurring items ($0.05 asset sale gain), $0.01 better than the Capital IQ Consensus Estimate of $0.69; revenues rose 2.9% year/year to $3.98 bln vs the $3.96 bln consensus. GPS pre-announced EPS of $0.68-0.69 on rev of $3.98 bln
Co issues guidance for FY15, sees EPS of $2.95-3.00 (prior guidance $2.90-2.95) vs. $2.95 Capital IQ Consensus Estimate. The company updated its guidance for full-year 2014 diluted earnings per share to be in the range of $2.95 to $3.00, to reflect the $0.05 related to the gain on asset sale.
The company's second quarter comparable sales were flat compared with a 5 percent increase in the second quarter of last year. Comparable sales by global brand for the second quarter of fiscal year 2014 were as follows: Gap Global: negative 5 percent versus positive 6 percent last year. Banana Republic Global: flat versus negative 1 percent last year. Old Navy Global: positive 4 percent versus positive 6 percent last year. (Pre-announced on Aug 7th).
The company's operating margin was 14.2 percent in the second quarter versus 13.5 percent last year. The company continues to expect operating margin to be about flat for fiscal year 2014.
On a year-over-year basis, inventory dollars per store were up 2 percent at the end of the second quarter of fiscal year 2014. At the end of the third quarter of fiscal year 2014, the company expects year-over-year inventory dollars per store to be up in the low single digits compared with the third quarter last year.
The company will report August sales on September 4, 2014.

WSJ : An Astrophysicist in Search of E.T.

An Astrophysicist in Search of E.T.
Sara Seager of MIT thinks we could be able to detect life on other planets in just 20 years

Sara Seager Bob O'Connor for The Wall Street Journal; Hair & Makeup by Bryan Lynde
Sara Seager, an astrophysicist at the Massachusetts Institute of Technology, is on the hunt for aliens. She thinks we might be able to find them within the next 20 years. In a new report in the journal Proceedings of the National Academy of Sciences, she argues that we may soon have the capability to detect life on other planets, a realization she calls "The Awakening."

She admits that she's excited. "Sometimes the anticipation of something rivals the actual discovery," she says in an energetic staccato in her office overlooking the Charles River in Cambridge. "Just the excitement that we can actually do it is phenomenal."

But she doesn't think we'll be chatting with extraterrestrials any time soon, and carefully qualifies her predictions. Those alien life-forms would need to be relatively close to our solar system, she says, and would need to fit particular criteria. "If there's some weird type of underground life, or if life is like a computer that doesn't give off a gas, we're not going to see it," she concedes. What we will detect, she says, with the help of improved telescopes and devices, is the gas that life as we know it emits.

Prof. Seager, 43, thinks there's something out there, "just by the sheer numbers of planets," she says. "Every astronomer knows that every star out there has at least one planet, and we have over 100 billion stars in the galaxy, and upward of hundreds of billions of galaxies in our universe."

The problem is that the bright light from the stars makes it nearly impossible to see the surrounding planets. (Earth, for example, is 10 billion times fainter than our sun.) That has made it difficult for even the Hubble Space Telescope, launched in 1990, and the Kepler spacecraft, launched in 2009, to find signs of life.

Prof. Seager is working with NASA to develop a "Starshade" to help block the light of stars so telescopes can better see exoplanets (planets outside our own solar system), which have become her specialty. The shade is a spherical disc with sharp points going around it, somewhat resembling a sunflower. She has a miniature, foot-long version of the 100-foot-diameter device, which is being designed to go up into space with a separate telescope at a total projected cost of $1 billion to $2 billion. The Starshade, which will have thrusters to move it into position, will help the telescope better see planets by blocking the light of nearby stars. Prof. Seager is leading a team that is studying how to start building it in 2017 for a 2023 launch. (See an animation of a starshade and a demo of how it will be deployed.)

Meanwhile, astronomers are looking forward to NASA's new James Webb Space Telescope, planned for a 2018 launch into space. It will be able to see infrared wavelengths, which is useful for detecting a wide variety of molecules. It will focus on stars that are smaller than our sun. "We haven't been able to find the true Earth twin yet because it's so very hard to find," says Prof. Seager. "It's like finding the proverbial needle in a haystack—first you'll find a bowling ball, then a ping pong ball and eventually figure out how to find the small thing." She expects the latest telescopes to get us closer to that goal.

"The James Webb Space Telescope will be a 'fast track' to very hopefully finding and identifying habitable worlds…. It will study super Earths—i.e. planets larger than Earth—going in front of small stars. I call this studying Earth's cousins instead of searching for Earth's twins. So the James Webb Space Telescope won't have to block out starlight but will actually use the starlight as an advantage: The starlight that shines through a planet's atmosphere can be measured such that the light that doesn't make it through tells us what gases are doing the absorbing in the planet's atmosphere. There is an MIT mission called TESS (Transiting Exoplanet Survey Satellite) to be launched in 2017 that will find the pool of transiting Earth-sized and super Earth planets that the James Webb Space Telescope will follow up [with] atmosphere study. In other words, TESS will discover and the James Webb Space Telescope will characterize. This is different from the Starshade and telescope system, or other similar mission concepts, that will do both the discovering and characterizing."

Where did you get your drive and motivation?

"My father was really hard on me. He really pushed me to accept this job, and I said, 'OK, it's the best I can do, to be tenured at MIT,'—which is really good the by the way—and he said, 'What? I never want you to be limited by your own internal thinking!' How many people have a parent like that? That's why I'm here and that's why I'm at the top of my field and I think big and carry it out—because he taught me how to do it…Things worked out really well for me. I think my dad would be really happy with where I am now."

For a planet to have life on it, the temperature can't be too hot or too cold. "I personally subscribe to the concept that some kind of liquid is needed—it doesn't need to be water—but you want a liquid so molecules can react and form other molecules," she says. If the molecules can't bond, she says, they can't give rise to life.

What might these extraterrestrial beings look like? Prof. Seager says she has imagined the possibilities just for fun, since we wouldn't be able to see exactly what any life we find looks like—whether it's a "slime world" or an intelligent species. Those planets would be so far away, she says, that we'll just be able to identify byproduct gases that point to the existence of living things. "If there are aliens looking back at us—we hope there are—they'll see our atmosphere has 20% oxygen by volume, and they'll know that oxygen is a highly reactive gas and shouldn't be there at all, and they may be able to imagine that there's life here," she says.

In turn, she has imagined what life would be like on different kinds of planets, such as one with a heavy atmosphere, where the density of air is similar to the density of water. "You can imagine some type of flying fish that can transition between water and air," she says. On a planet that has a dense atmosphere where light doesn't reach the ground, she pictures giant photosynthetic birds that have leaves as wings.

Born in Toronto, Prof. Seager first became interested in astronomy at age 5, when she peered out of a telescope at a star-viewing party. On camping trips as a child, she was amazed by the night sky. "There are so many stars that it's like they're going to fall on you," she says. When she told her father, a doctor, that she wanted to be an astronomer when she grew up, he disapproved. He was worried that it wouldn't be a financially stable career path and told her, "You have to be able to support yourself. You can't rely on any man," she remembers. But Prof. Seager wasn't deterred.

After high school, she went on to the University of Toronto, where she says she was good at math and physics but was "never the super-genius who always got the perfect score." She went on to Harvard University, where she earned a Ph.D. in astronomy in 1999. That is where she learned about the emerging field of exoplanets, a new, risky area because at the time, scientists didn't know whether exoplanets were really planets. Now scientists have confirmed close to 2,000 exoplanets, and they have thousands more candidates. Last year, Prof. Seager was awarded a MacArthur Foundation "genius grant" of $625,000 for her research.

She has been on the faculty at MIT since 2007. When she got the job, "my father was so proud because finally he thought I succeeded," she says. It was bittersweet timing, though. He died of cancer the year she got her job. She lives in the Boston area with her two sons, ages 9 and 11.

They already share her excitement about what scientists might find in space in the coming decades. Twenty years may sound like a long time to wait, she says, "but not considering the thousands of years we've been waiting."

WSJ : Havas: Agility is Better than Scale

Havas: Agility is Better than Scale

In an advertising world where the biggest players are trying to get even bigger, how can the relatively small Havas Group survive and compete?

Industry behemoths Omnicom OMC +0.75% and Publicis pursued a $35 billion merger to gain even more heft, before calling off the deal three months ago due to a variety of setbacks. Now, there is speculation over the fate of another major player, Interpublic, after activist investor Elliott Management took a stake in the company.


Global CEO of Havas Worldwide Andrew Benett
Does Havas, the world’s sixth-largest ad holding company by revenue, feel some pressure to explore consolidation opportunities? The company says it doesn’t see its size as a disadvantage. “As long as we’re a leader in technology, which we’re doing in many ways, scale becomes almost irrelevant,” said Andrew Benett, global CEO of Havas Worldwide.

Madison Avenue long believed that Havas would eventually be acquired or paired up with another holding company, especially given that corporate raider Vincent Bollore holds the largest ownership stake in the company. Mr. Bollore’s son, Yannick Bollore, now sits at the helm of Havas.

Scale can offer companies advantages such as better prices for media, but despite the noise, Havas executives said they don’t see a need to be big. They say the company’s size has made it easier to simplify its operating structure and operate in a more nimble way.


Global Managing Director of Havas Media Group Dominique Delport
“Big is great, big is beautiful, but agile and speed is better today,” said Dominique Delport, global managing director for the company’s media buying operations, Havas Media Group.

Key to Havas’ growth strategy is its integration of its creative and media-buying operations, a move that Havas believes gives it a leg up on rivals. Bringing the two disciplines closer together is meant to give Havas more efficiency and to appeal to marketers that have long complained that creative and media executives need to work more closely together. Ad holding companies years ago pulled apart creative and media duties and formed standalone units, a separation that marketers have said causes tension between the two.

“Our clients don’t de-couple creative and media when they’re thinking about driving their business so we’re trying not to as well,” Mr. Benett said.

Havas says that as data begins to play a bigger role in marketing, having creative and media disciplines working together will appeal to clients. Media-buying firms already use data to target ads more effectively; the company believes data can also help the creative side of the business develop personalized ads. Havas plans to launch a global data offering in the fourth quarter that combines the analysis used by Havas for media planning with capabilities from the creative side to help create data-driven ads.

Havas posted 1% organic revenue growth last year, with total revenue coming in at 1.77 billion euros. For the first quarter, organic revenue improved 3% and new business wins rose 66% from a year earlier to 669 million euros.

The company says its integrated approach has brought in new business. Recent notable wins for Havas include PayPal and TD Ameritrade earlier this year and Liberty Mutual late last year. Still, the shop has lost some business including some ad assignments for one of its biggest clients, Reckitt Benckiser.

“We are in a tough business. We are in an industry where to start up a media agency or a creative agency, you need a couple guys and a laptop. You don’t need much more,” Mr. Benett said. “Clients rightly so are looking for the best ideas and whether that idea comes from a small start-up in Silicon Valley or in Dumbo or in India or from a big agency or a small agency, they need to grow their business…. We need to bring them value every single day.”

RTR - Class action against Facebook attracts 60,000 users

Aug 21 (Reuters) - An Austrian law student said his class action challenging Facebook for alleged privacy violations had gathered support from 60,000 users and passed its first legal review.

Max Schrems, who already has a case involving the social network pending at the European Court of Justice, is claiming damages of 500 euros ($663) per user from U.S.-listed Facebook. The $195 billion company has 1.32 billion active users.

Schrems said the Vienna Regional Court had ordered Facebook Ireland to respond within four weeks to his claims, which include that the social network aided the U.S. National Security Agency in mining the personal data of Facebook users.

Facebook Ireland, which runs the company's international activities, was not immediately available to comment.

Schrems closed the list of plaintiffs earlier this month after 25,000 people joined the campaign, because his legal team needed to verify and administer each one.

Since then, another 35,000 have registered on www.fbclaim.com to join the class action should it expand later, Schrems said on Thursday.

Poroshenko talks tough ahead of meetings with Merkel

Ukraine's Poroshenko talks tough ahead of meetings with Merkel, Putin


KIEV (Reuters) - Ukrainian President Petro Poroshenko said on Thursday he would call on Russian President Vladimir Putin to rein in pro-Russian separatists when the two men meet next week and told the Kremlin chief he had "a strong country, a strong army" behind him.

Poroshenko spoke as government forces, despite taking heavy losses themselves, thrust deeper into rebel-held territory in Ukraine's Russian-speaking east and kept the separatists whom they have battled since April on the back foot.

The Ukrainian battlefield successes, after a faltering start in April when government forces were humiliated, have alarmed some Western governments who fear they could box Putin dangerously into a corner with no way out to save face.

German Chancellor Angela Merkel is scheduled to visit Kiev on Saturday to show her support for Poroshenko - but diplomats say she is also bearing a message that he should consider calling a ceasefire so as not to incur a backlash from Putin.

Poroshenko, who will oversee emotion-charged Independence Day celebrations on Sunday in Kiev in which veterans from the eastern front will take part in a military parade, talked tough on Thursday.

Indicating he too had a political image to defend at home, he told local journalists that in talks in Belarus's capital of Minsk next Tuesday, at which he will meet Putin, he would "call for the (rebel) fighters to be withdrawn from Ukraine".

"I am sure we will succeed in this," he said.

Kiev, supported by the United States and European allies, says Russia has orchestrated the separatists' rebellions in the Russian-speaking east, and armed them. Moscow denies this.

STEADY DRIP OF DEATHS

At the table in Minsk will also be Putin's partners in the Russian-led Customs Union, which beckoned unsuccessfully to Kiev to join, and a three-person delegation from the European Union, with which the new Kiev leadership sees Ukraine's future.

It will be the first meeting between Poroshenko and Putin since a frosty encounter in June in Normandy, France, and has raised prospects of a breakthrough to end a months-long geo-political confrontation as Ukraine has favored integration into mainstream Europe to the dismay of its former Soviet ruler.

The steady drip of government losses continued, with a military spokesman saying 16 members of Ukraine's interior ministry special forces had been killed in fighting overnight in the town of Ilovaisk near the main regional hub of Donetsk.

But Poroshenko said defiantly: "In order to have solid positions in peace negotiations, we have to be strong, to have the unity of the people, a strong country, a strong army."

"We are capable of defending our sovereignty, our independence and our territorial integrity. Today we are fighting for the independence of Ukraine. Together we will win for sure," he added.

Poroshenko went about preparing for a new election in October which he and others in the pro-Europe leadership hope will get rid of 'old guard' deputies in the pay of the former Moscow-backed president and produce a new coalition capable of pushing through basic reform and purging a system of corruption and cronyism.

It was the ousting of then-President Viktor Yanukovich in February by street protests that caused a backlash from the Kremlin leading to Moscow's annexation of Crimea and the pro-Russian rebellion in the east.

Poroshenko said he would soon announce the dissolution of parliament - possibly as soon as Sunday - paving the way for an October election.

"I will be guided by the desire of the Ukrainian people. They want a 'reboot', they want a purging (of the system). The elections will be the best form for a purging," he said.

CONVOY STILL STUCK

A convoy of Russian humanitarian aid to the beleaguered city of Luhansk in eastern Ukraine remained stuck in no man's land at the border with Ukraine on Thursday, though Ukrainian border guards said they had begun to inspect it.

The convoy of 260 trucks set out from the Moscow region early last week, but Kiev, suspicious that it could be a covert operation to somehow help the rebels, has insisted on scrupulous border formalities before allowing anything to come into Ukraine under supervision of the Red Cross.

It was not clear when the trucks would be authorized to enter Ukrainian territory. The border crossing point at Izvaryne is under rebel control.

Government forces, despite big losses in men and planes by separatists whom they say are armed with tanks, missiles and other heavy weaponry from Moscow, pressed forward on Thursday, a military spokesman said.

It said the loss of the 16 interior ministry special forces members at Ilovaisk was serious.

"It represents 25 percent of all deaths in the special forces throughout the entire anti-terrorist operation. This shows quite how fierce fighting is there," interior ministry adviser Anton Gerashchenko said in a post on Facebook.

"According to commanders, in Ilovaisk they're fighting against well-trained Russian mercenaries," he said.

Elsewhere, three refugees including a five-year-old child were killed when rebel gunfire hit their car as they fled the rebel stronghold of Luhansk, Ukrainian military spokesman Andriy Lysenko said.

The United Nations says the fighting has claimed more than 2,000 lives on both sides.

(Additional reporting by Dmitry Madorsky; Natalia Zinets and Alessandra Prentice in Kiev; Writing by Richard Balmforth)

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(BFW) Smiths Group Unit Recalls Some Portex Endotracheal Tube Holders


Smiths Group Unit Recalls Some Portex Endotracheal Tube Holders
2014-08-21 15:17:23.540 GMT


By Jim Silver
Aug. 21 (Bloomberg) -- Smiths Medical, unit of SMIN LN,
plans voluntary U.S. recall of some lots of tube holders.
* “Small number of customers” had difficulty when passing a
suction catheter through the tube
* Says FDA is aware of action

Link to Statement:NSN NANWPCMEQTXC <GO>
Link to Company News:SMIN LN <Equity> CN <GO>

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