Ex-Officer Is First From C.I.A. to Face Prison for a Leak


Christaan Felber for The New York Times


John Kiriakou with his daughter Kate at home in Arlington, Va., last month. He has struggled with how to explain to his children that he will be going away.







WASHINGTON — Looking back, John C. Kiriakou admits he should have known better. But when the F.B.I. called him a year ago and invited him to stop by and “help us with a case,” he did not hesitate.





Timeline


Leak-Related Cases Prosecuted During the Obama Administration







Christaan Felber for The New York Times

Mr. Kiriakou is scheduled to be sentenced to 30 months in prison as part of a plea deal.






In his years as a C.I.A. operative, after all, Mr. Kiriakou had worked closely with F.B.I. agents overseas. Just months earlier, he had reported to the bureau a recruiting attempt by someone he believed to be an Asian spy.


“Anything for the F.B.I.,” Mr. Kiriakou replied.


Only an hour into what began as a relaxed chat with the two agents — the younger one who traded Pittsburgh Steelers talk with him and the senior investigator with the droopy eye — did he begin to realize just who was the target of their investigation.


Finally, the older agent leaned in close and said, by Mr. Kiriakou’s recollection, “In the interest of full disclosure, I should tell you that right now we’re executing a search warrant at your house and seizing your electronic devices.”


On Jan. 25, Mr. Kiriakou is scheduled to be sentenced to 30 months in prison as part of a plea deal in which he admitted violating the Intelligence Identities Protection Act by e-mailing the name of a covert C.I.A. officer to a freelance reporter, who did not publish it. The law was passed in 1982, aimed at radical publications that deliberately sought to out undercover agents, exposing their secret work and endangering their lives.


In more than six decades of fraught interaction between the agency and the news media, John Kiriakou is the first current or former C.I.A. officer to be convicted of disclosing classified information to a reporter.


Mr. Kiriakou, 48, earned numerous commendations in nearly 15 years at the C.I.A., some of which were spent undercover overseas chasing Al Qaeda and other terrorist groups. He led the team in 2002 that found Abu Zubaydah, a terrorist logistics specialist for Al Qaeda, and other militants whose capture in Pakistan was hailed as a notable victory after the Sept. 11 attacks.


He got mixed reviews at the agency, which he left in 2004 for a consulting job. Some praised his skills, first as an analyst and then as an overseas operative; others considered him a loose cannon.


Mr. Kiriakou first stumbled into the public limelight by speaking out about waterboarding on television in 2007, quickly becoming a source for national security journalists, including this reporter, who turned up in Mr. Kiriakou’s indictment last year as Journalist B. When he gave the covert officer’s name to the freelancer, he said, he was simply trying to help a writer find a potential source and had no intention or expectation that the name would ever become public. In fact, it did not surface publicly until long after Mr. Kiriakou was charged.


He is remorseful, up to a point. “I should never have provided the name,” he said on Friday in the latest of a series of interviews. “I regret doing it, and I never will do it again.”


At the same time, he argues, with the backing of some former agency colleagues, that the case — one of an unprecedented string of six prosecutions under President Obama for leaking information to the news media — was unfair and ill-advised as public policy.


His supporters are an unlikely collection of old friends, former spies, left-leaning critics of the government and conservative Christian opponents of torture. Oliver Stone sent a message of encouragement, as did several professors at Liberty University, where Mr. Kiriakou has taught. They view the case as an outrage against a man who risked his life to defend the country.


Whatever his loquaciousness with journalists, they say, he neither intended to damage national security nor did so. Some see a particular injustice in the impending imprisonment of Mr. Kiriakou, who in his first 2007 appearance on ABC News defended the agency’s resort to desperate measures but also said that he had come to believe that waterboarding was torture and should no longer be used in American interrogations.


Bruce Riedel, a retired veteran C.I.A. officer who led an Afghan war review for Mr. Obama and turned down an offer to be considered for C.I.A. director in 2009, said Mr. Kiriakou, who worked for him in the 1990s, was “an exceptionally good intelligence officer” who did not deserve to go to prison.


This article has been revised to reflect the following correction:

Correction: January 5, 2013

A summary that appeared with an earlier version of this article misspelled the surname of the former C.I.A. operative. He is John C. Kiriakou, not Kiriako.



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RIM unveils a new BlackBerry phone! (But it’s only a Curve for T-Mobile running BlackBerry 7)






Research In Motion (RIMM) on Thursday took the wraps off a brand new BlackBerry smartphone — but it’s not the kind of smartphone BlackBerry fans have been waiting more than a year for. Instead, it’s a low-end BlackBerry Curve 9315 that will launch later this month on T-Mobile. The phone features the BlackBerry 7.1 operating system, a 3.2-megapixel camera, microSD memory expansion and a full QWERTY keyboard, and it will launch on January 23rd… just seven days before RIM unveils its first BlackBerry 10 phones. Pre-sales for the Curve 9315 begin on January 16th and the phone will cost $ 49.99 out of pocket plus a $ 10 payment each month as part of Equipment Installment Plan. T-Mobile’s full press release follows below.


[More from BGR: ‘iPhone 5S’ to reportedly launch by June with multiple color options and two different display sizes]







BlackBerry Curve 9315 Smartphone Introduced By T-Mobile and RIM


[More from BGR: RIM teases BlackBerry 10 launch with image of first BB10 smartphone]


T-Mobile’s most affordable BlackBerry smartphone provides productivity tools and features to keep customers connected


BELLEVUE, Wash. and WATERLOO, ON – Jan. 3, 2013 – T-Mobile USA, Inc. and Research In Motion (RIM) (NASDAQ: RIMM; TSX: RIM) today announced the most affordable BlackBerry® smartphone on T-Mobile’s nationwide network – the BlackBerry® Curve 9315. Powered by the BlackBerry® 7.1 operating system with 3G connectivity, the sleek new smartphone is easy-to-use and provides tools that enable customers to stay connected to the people and information that matter most.


“At T-Mobile, our goal is to delight customers. The new BlackBerry Curve 9315 will delight customers with unprecedented value while also allowing them to combine their mobile business and personal use in one great device,” said Brad Duea, senior vice president of product management at T-Mobile. “The Curve 9315 is the most affordable BlackBerry smartphone on our nationwide network and provides our customers with a wide variety of productivity and social features to keep them connected and make their mobile lives easier.”


“We’re pleased to work with T-Mobile to bring the BlackBerry Curve 9315 to customers,” said Richard Piasentin, managing director for the U.S. at Research In Motion. “The Curve 9315 is designed to make it incredibly easy to stay connected with friends, family and coworkers and will be popular with customers upgrading to a smartphone for the first time, as well as existing Curve customers looking for a step up in speed and functionality.”


Combining an intuitive interface with a QWERTY keyboard, the BlackBerry Curve 9315 features built-in Wi-Fi® connectivity for voice and data, enabling customers to access the information they need when and where they need it, and Wi-Fi calling, allowing calls and messages over an available Wi-Fi network. With a dedicated BlackBerry® Messenger (BBM™) key, preloaded apps for Facebook® and Twitter® and the Social Feeds 2.0 app, customers can easily interact with their friends, coworkers and social networks whether it’s instant messaging, posting or tweeting.


The new BlackBerry Curve 9315 offers a 3.2-megapixel camera with LED flash and digital zoom as well as video recording capabilities. Customers also have the ability to geo-tag the location of their pictures by utilizing the smartphone’s built-in GPS. In addition, the smartphone features a microSD card slot for up to 32GB of additional media storage and a built-in FM radio letting customers tune in to local FM stations. With the BlackBerry App World™ storefront, customers have exclusive access to a wide range of apps, allowing them to enhance their smartphone experience with entertainment, personalization and productivity apps of their choosing.


The BlackBerry Curve 9315 will be available in an exclusive pre-sale for T-Mobile business customers beginning January 16 and is expected to be available in T-Mobile retail stores, via http://www.T-Mobile.com, and with select dealers and national retailers beginning January 23, 2013. For well-qualified customers, the Curve 9315 will require a $ 49.99 out-of-pocket down payment and 20 equal monthly payments of $ 10 per month via T-Mobile’s Equipment Installment Plan (EIP)1, with a two-year service agreement and qualifying T-Mobile Value voice and data plan. Customers may also purchase the Curve 9315 for $ 49.99 after a $ 50 mail-in rebate card, with a two-year service agreement and qualifying T-Mobile Classic voice and data plan.2



This article was originally published by BGR


Gadgets News Headlines – Yahoo! News




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Melissa Joan Hart Shares Son's Plea for Less Phone Time




Celebrity Baby Blog





01/03/2013 at 06:00 PM ET



As a mom of three boys, Melissa Joan Hart knows all too well how to tackle even the toughest brotherly love.


But for her sons Mason Walter, 7 next week, and Brady Hart, 4½, it’s more often a lesson that love, well — hurts!


“They are boys, for a minute they are best friends and it’s usually 20 minutes and then it’s full on wrestling,” the Melissa & Joey star, 36, joked while cohosting Thursday’s Anderson Live.


“Then I have to pull them apart because the youngest one is always going to get hurt.”


Between her time spent overseeing her boys’ sibling bonding sessions and late night feeds with the family’s newest addition, 3-month-old Tucker McFadden, Hart is feeling the effects of sleep deprivation.


“I am a little exhausted. I have not [slept] a solid night. Two hours at a time,” the actress says. “It’s a loud house, it’s a very busy busy house.”


Melissa Joan Hart Shares Son's Plea for Less Phone Time
Courtesy Melissa Joan Hart



And she’s about to get even more caught up in all the commotion; The actress’s New Year’s resolutions include taking a time out from her phone and concentrating more on her kids. “[Brady] will be talking to me and he’s like, ‘Mommy, put the phone down. Look at me, talk to me,’” Hart admits.


When the going gets really tough, however, the hands-on mom isn’t afraid to occasionally pull out her secret weapon.


“My Bloody Mary, that’s how Mommy can do it all,” she jokes, sharing a picture of herself sipping on a cocktail while cradling her baby boy.


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');var targetVideoWidth = 300;brightcove.createExperiences();/* iPhone, iPad, iPod */if ((navigator.userAgent.match('iPhone')) || (navigator.userAgent.match('iPad')) || (navigator.userAgent.match('iPod')) || (location.search.indexOf('ipad=true') > -1)) { document.write('
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Your medical chart could include exercise minutes


CHICAGO (AP) — Roll up a sleeve for the blood pressure cuff. Stick out a wrist for the pulse-taking. Lift your tongue for the thermometer. Report how many minutes you are active or getting exercise.


Wait, what?


If the last item isn't part of the usual drill at your doctor's office, a movement is afoot to change that. One recent national survey indicated only a third of Americans said their doctors asked about or prescribed physical activity.


Kaiser Permanente, one of the nation's largest nonprofit health insurance plans, made a big push a few years ago to get its southern California doctors to ask patients about exercise. Since then, Kaiser has expanded the program across California and to several other states. Now almost 9 million patients are asked at every visit, and some other medical systems are doing it, too.


Here's how it works: During any routine check of vital signs, a nurse or medical assistant asks how many days a week the patient exercises and for how long. The number of minutes per week is posted along with other vitals at the top the medical chart. So it's among the first things the doctor sees.


"All we ask our physicians to do is to make a comment on it, like, 'Hey, good job,' or 'I noticed today that your blood pressure is too high and you're not doing any exercise. There's a connection there. We really need to start you walking 30 minutes a day,'" said Dr. Robert Sallis, a Kaiser family doctor. He hatched the vital sign idea as part of a larger initiative by doctors groups.


He said Kaiser doctors generally prescribe exercise first, instead of medication, and for many patients who follow through that's often all it takes.


It's a challenge to make progress. A study looking at the first year of Kaiser's effort showed more than a third of patients said they never exercise.


Sallis said some patients may not be aware that research shows physical inactivity is riskier than high blood pressure, obesity and other health risks people know they should avoid. As recently as November a government-led study concluded that people who routinely exercise live longer than others, even if they're overweight.


Zendi Solano, who works for Kaiser as a research assistant in Pasadena, Calif., says she always knew exercise was a good thing. But until about a year ago, when her Kaiser doctor started routinely measuring it, she "really didn't take it seriously."


She was obese, and in a family of diabetics, had elevated blood sugar. She sometimes did push-ups and other strength training but not anything very sustained or strenuous.


Solano, 34, decided to take up running and after a couple of months she was doing three miles. Then she began training for a half marathon — and ran that 13-mile race in May in less than three hours. She formed a running club with co-workers and now runs several miles a week. She also started eating smaller portions and buying more fruits and vegetables.


She is still overweight but has lost 30 pounds and her blood sugar is normal.


Her doctor praised the improvement at her last physical in June and Solano says the routine exercise checks are "a great reminder."


Kaiser began the program about three years ago after 2008 government guidelines recommended at least 2 1/2 hours of moderately vigorous exercise each week. That includes brisk walking, cycling, lawn-mowing — anything that gets you breathing a little harder than normal for at least 10 minutes at a time.


A recently published study of nearly 2 million people in Kaiser's southern California network found that less than a third met physical activity guidelines during the program's first year ending in March 2011. That's worse than results from national studies. But promoters of the vital signs effort think Kaiser's numbers are more realistic because people are more likely to tell their own doctors the truth.


Dr. Elizabeth Joy of Salt Lake City has created a nearly identical program and she expects 300 physicians in her Intermountain Healthcare network to be involved early this year.


"There are some real opportunities there to kind of shift patients' expectations about the value of physical activity on health," Joy said.


NorthShore University HealthSystem in Chicago's northern suburbs plans to start an exercise vital sign program this month, eventually involving about 200 primary care doctors.


Dr. Carrie Jaworski, a NorthShore family and sports medicine specialist, already asks patients about exercise. She said some of her diabetic patients have been able to cut back on their medicines after getting active.


Dr. William Dietz, an obesity expert who retired last year from the Centers for Disease Control and Prevention, said measuring a patient's exercise regardless of method is essential, but that "naming it as a vital sign kind of elevates it."


Figuring out how to get people to be more active is the important next step, he said, and could have a big effect in reducing medical costs.


___


Online:


Exercise: http://1.usa.gov/b6AkMa


___


AP Medical Writer Lindsey Tanner can be reached at http://www.twitter.com/LindseyTanner


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"Cliff" concerns give way to earnings focus

NEW YORK (Reuters) - Investors' "fiscal cliff" worries are likely to give way to more fundamental concerns, like earnings, as fourth-quarter reports get under way next week.


Financial results, which begin after the market closes on Tuesday with aluminum company Alcoa , are expected to be only slightly better than the third-quarter's lackluster results. As a warning sign, analyst current estimates are down sharply from what they were in October.


That could set stocks up for more volatility following a week of sharp gains that put the Standard & Poor's 500 index <.spx> on Friday at the highest close since December 31, 2007. The index also registered its biggest weekly percentage gain in more than a year.


Based on a Reuters analysis, Europe ranks among the chief concerns cited by companies that warned on fourth-quarter results. Uncertainty about the region and its weak economic outlook were cited by more than half of the 25 largest S&P 500 companies that issued warnings.


In the most recent earnings conference calls, macroeconomic worries were cited by 10 companies while the U.S. "fiscal cliff" was cited by at least nine as reasons for their earnings warnings.


"The number of things that could go wrong isn't so high, but the magnitude of how wrong they could go is what's worrisome," said Kurt Winters, senior portfolio manager for Whitebox Mutual Funds in Minneapolis.


Negative-to-positive guidance by S&P 500 companies for the fourth quarter was 3.6 to 1, the second worst since the third quarter of 2001, according to Thomson Reuters data.


U.S. lawmakers narrowly averted the "fiscal cliff" by coming to a last-minute agreement on a bill to avoid steep tax hikes this weeks -- driving the rally in stocks -- but the battle over further spending cuts is expected to resume in two months.


Investors also have seen a revival of worries about Europe's sovereign debt problems, with Moody's in November downgrading France's credit rating and debt crises looming for Spain and other countries.


"You have a recession in Europe as a base case. Europe is still the biggest trading partner with a lot of U.S. companies, and it's still a big chunk of global capital spending," said Adam Parker, chief U.S. equity strategist at Morgan Stanley in New York.


Among companies citing worries about Europe was eBay , whose chief financial officer, Bob Swan, spoke of "macro pressures from Europe" in the company's October earnings conference call.


REVENUE WORRIES


One of the biggest worries voiced about earnings has been whether companies will be able to continue to boost profit growth despite relatively weak revenue growth.


S&P 500 revenue fell 0.8 percent in the third quarter for the first decline since the third quarter of 2009, Thomson Reuters data showed. Earnings growth for the quarter was a paltry 0.1 percent after briefly dipping into negative territory.


On top of that, just 40 percent of S&P 500 companies beat revenue expectations in the third quarter, while 64.2 percent beat earnings estimates, the Thomson Reuters data showed.


For the fourth quarter, estimates are slightly better but are well off estimates for the quarter from just a few months earlier. S&P 500 earnings are expected to have risen 2.8 percent while revenue is expected to have gone up 1.9 percent.


Back in October, earnings growth for the fourth quarter was forecast up 9.9 percent.


In spite of the cautious outlooks, some analysts still see a good chance for earnings beats this reporting period.


"The thinking is you need top line growth for earnings to continue to expand, and we've seen the market defy that," said Mike Jackson, founder of Denver-based investment firm T3 Equity Labs.


Based on his analysis, energy, industrials and consumer discretionary are the S&P sectors most likely to beat earnings expectations in the upcoming season, while consumer staples, materials and utilities are the least likely to beat, Jackson said.


Sounding a positive note on Friday, drugmaker Eli Lilly and Co said it expects profit in 2013 to increase by more than Wall Street had been forecasting, primarily due to cost controls and improved productivity.


(Reporting By Caroline Valetkevitch; Editing by Kenneth Barry)



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Plane Carrying Vittorio Missoni Lost Near Venezuela





MILAN — Venezuelan emergency services mounted a sea-and-air rescue mission on Saturday after a plane carrying the fashion executive Vittorio Missoni went missing off the coast of Venezuela.




The plane carrying Mr. Missoni, 58; his wife, Maurizia Castiglioni; another couple and two Venezuelan crew members disappeared after taking off from the resort of Los Roques, an archipelago off the coast of Venezuela, Italian media said.


“It disappeared yesterday. They have been looking for it with helicopters and ships, but have not found anything yet. They are still searching for it this morning,” the Italian consul in Venezuela, Giovanni Davoli, said.


Mr. Missoni is the oldest son of the founders of the fashion house famous for its exuberantly colored knits, featuring bold stripes and zigzags. He is co-owner with two siblings, Luca and Angela, who handle the technical and design sides of the firm.


“The Missoni family has been informed by the Venezuelan Consulate that Vittorio Missoni and his wife are missing, but we don’t know any more,” a Missoni spokeswoman, Maddalena Aspes, said.


Other members of the Missoni family are traveling back to Italy from a holiday in France, Ms. Aspes said.


Mr. Missoni and his siblings took over managing the company from their parents Ottavio and Rosita in 1996, aiming to relaunch the brand to a larger, younger market as rivals Gucci and Burberry have done. Under Vittorio’s tenure, Missoni has opened hotels in Scotland and Kuwait and started the Missoni Home collection.


By 2011, the brand’s appeal was wide enough for American mass-market retailer Target to ask it to design a collection.


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A+E Networks and Amazon Prime Reach Licensing Deal






LOS ANGELES (TheWrap.com) – “Pawn Stars” fans, rejoice; you’ll now be able to catch Big Hoss and Chumley on Amazon Prime.


Amazon announced Friday that it has struck a licensing deal with A+E Networks to carry A&E, bio, History and Lifetime programs on its premium Prime Instant Video service. The deal includes prior seasons of programs such as “Pawn Stars,” “Storage Wars” and “Dance Moms.”






Amazon Prime, which allows subscribers to stream videos through a variety of gadgets, costs $ 79 a year.


The pact between Amazon and A+E Networks comes a few months after rival streaming service Netflix decided to drop all but about 300 hours of A+E programming. Netflix, which had been seeking exclusivity from A+E for its content, opted not to renew its agreement with the company.


Brad Beale, Amazon’s director of digital video content acquisition, said that Amazon has more than doubled the amount of content for Amazon Prime customers.


“We remain focused on adding TV episodes and movies to Prime Instant Video that we think our customers will enjoy,” Beale said. “A+E Networks has some of the most popular shows on television and we know our customers will love streaming the A+E content with Prime Instant Video.”


Gadgets News Headlines – Yahoo! News





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PHOTO: Check Out Jessica Simpson's Daring Dinner Wear




Celebrity Baby Blog





01/04/2013 at 03:00 PM ET



Jessica Simpson - Curves Ahead
FameFlynet


Blonde bombshell!


An expectant Jessica Simpson shows off her assets as she leaves a restaurant Thursday evening in Oahu, Hawaii, where she’s currently vacationing with her fiancĂ© Eric Johnson and their 8-month-old daughter Maxwell Drew.


“I find myself going for more sophisticated looks, but I do think that’s kind of trendy right now — just a classier-looking woman,” the Fashion Star mentor, 32, tells PEOPLE of her recent style choices.


“I love to show off my curves, but being a mom, I guess I do it in a little bit more classy way, even though for Halloween I was a milkmaid – but there are moments.”


RELATED: Jessica Simpson Reveals Her Baby Bump


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FDA: New rules will make food safer


WASHINGTON (AP) — The Food and Drug Administration says its new guidelines would make the food Americans eat safer and help prevent the kinds of foodborne disease outbreaks that sicken or kill thousands of consumers each year.


The rules, the most sweeping food safety guidelines in decades, would require farmers to take new precautions against contamination, to include making sure workers' hands are washed, irrigation water is clean, and that animals stay out of fields. Food manufacturers will have to submit food safety plans to the government to show they are keeping their operations clean.


The long-overdue regulations could cost businesses close to half a billion dollars a year to implement, but are expected to reduce the estimated 3,000 deaths a year from foodborne illness. The new guidelines were announced Friday.


Just since last summer, outbreaks of listeria in cheese and salmonella in peanut butter, mangoes and cantaloupe have been linked to more than 400 illnesses and as many as seven deaths, according to the federal Centers for Disease Control and Prevention. The actual number of those sickened is likely much higher.


Many responsible food companies and farmers are already following the steps that the FDA would now require them to take. But officials say the requirements could have saved lives and prevented illnesses in several of the large-scale outbreaks that have hit the country in recent years.


In a 2011 outbreak of listeria in cantaloupe that claimed 33 lives, for example, FDA inspectors found pools of dirty water on the floor and old, dirty processing equipment at Jensen Farms in Colorado where the cantaloupes were grown. In a peanut butter outbreak this year linked to 42 salmonella illnesses, inspectors found samples of salmonella throughout Sunland Inc.'s peanut processing plant in New Mexico and multiple obvious safety problems, such as birds flying over uncovered trailers of peanuts and employees not washing their hands.


Under the new rules, companies would have to lay out plans for preventing those sorts of problems, monitor their own progress and explain to the FDA how they would correct them.


"The rules go very directly to preventing the types of outbreaks we have seen," said Michael Taylor, FDA's deputy commissioner for foods.


The FDA estimates the new rules could prevent almost 2 million illnesses annually, but it could be several years before the rules are actually preventing outbreaks. Taylor said it could take the agency another year to craft the rules after a four-month comment period, and farms would have at least two years to comply — meaning the farm rules are at least three years away from taking effect. Smaller farms would have even longer to comply.


The new rules, which come exactly two years to the day President Barack Obama's signed food safety legislation passed by Congress, were already delayed. The 2011 law required the agency to propose a first installment of the rules a year ago, but the Obama administration held them until after the election. Food safety advocates sued the administration to win their release.


The produce rule would mark the first time the FDA has had real authority to regulate food on farms. In an effort to stave off protests from farmers, the farm rules are tailored to apply only to certain fruits and vegetables that pose the greatest risk, like berries, melons, leafy greens and other foods that are usually eaten raw. A farm that produces green beans that will be canned and cooked, for example, would not be regulated.


Such flexibility, along with the growing realization that outbreaks are bad for business, has brought the produce industry and much of the rest of the food industry on board as Congress and FDA has worked to make food safer.


In a statement Friday, Pamela Bailey, president of the Grocery Manufacturers Association, which represents the country's biggest food companies, said the food safety law "can serve as a role model for what can be achieved when the private and public sectors work together to achieve a common goal."


The new rules could cost large farms $30,000 a year, according to the FDA. The agency did not break down the costs for individual processing plants, but said the rules could cost manufacturers up to $475 million annually.


FDA Commissioner Margaret Hamburg said the success of the rules will also depend on how much money Congress gives the chronically underfunded agency to put them in place. "Resources remain an ongoing concern," she said.


The farm and manufacturing rules are only one part of the food safety law. The bill also authorized more surprise inspections by the FDA and gave the agency additional powers to shut down food facilities. In addition, the law required stricter standards on imported foods. The agency said it will soon propose other overdue rules to ensure that importers verify overseas food is safe and to improve food safety audits overseas.


Food safety advocates frustrated over the last year as the rules stalled praised the proposed action.


"The new law should transform the FDA from an agency that tracks down outbreaks after the fact, to an agency focused on preventing food contamination in the first place," said Caroline Smith DeWaal of the Center for Science in the Public Interest.


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"Cliff" concerns give way to earnings focus

NEW YORK (Reuters) - Investors' "fiscal cliff" worries are likely to give way to more fundamental concerns, like earnings, as fourth-quarter reports get under way next week.


Financial results, which begin after the market closes on Tuesday with aluminum company Alcoa , are expected to be only slightly better than the third-quarter's lackluster results. As a warning sign, analyst current estimates are down sharply from what they were in October.


That could set stocks up for more volatility following a week of sharp gains that put the Standard & Poor's 500 index <.spx> on Friday at the highest close since December 31, 2007. The index also registered its biggest weekly percentage gain in more than a year.


Based on a Reuters analysis, Europe ranks among the chief concerns cited by companies that warned on fourth-quarter results. Uncertainty about the region and its weak economic outlook were cited by more than half of the 25 largest S&P 500 companies that issued warnings.


In the most recent earnings conference calls, macroeconomic worries were cited by 10 companies while the U.S. "fiscal cliff" was cited by at least nine as reasons for their earnings warnings.


"The number of things that could go wrong isn't so high, but the magnitude of how wrong they could go is what's worrisome," said Kurt Winters, senior portfolio manager for Whitebox Mutual Funds in Minneapolis.


Negative-to-positive guidance by S&P 500 companies for the fourth quarter was 3.6 to 1, the second worst since the third quarter of 2001, according to Thomson Reuters data.


U.S. lawmakers narrowly averted the "fiscal cliff" by coming to a last-minute agreement on a bill to avoid steep tax hikes this weeks -- driving the rally in stocks -- but the battle over further spending cuts is expected to resume in two months.


Investors also have seen a revival of worries about Europe's sovereign debt problems, with Moody's in November downgrading France's credit rating and debt crises looming for Spain and other countries.


"You have a recession in Europe as a base case. Europe is still the biggest trading partner with a lot of U.S. companies, and it's still a big chunk of global capital spending," said Adam Parker, chief U.S. equity strategist at Morgan Stanley in New York.


Among companies citing worries about Europe was eBay , whose chief financial officer, Bob Swan, spoke of "macro pressures from Europe" in the company's October earnings conference call.


REVENUE WORRIES


One of the biggest worries voiced about earnings has been whether companies will be able to continue to boost profit growth despite relatively weak revenue growth.


S&P 500 revenue fell 0.8 percent in the third quarter for the first decline since the third quarter of 2009, Thomson Reuters data showed. Earnings growth for the quarter was a paltry 0.1 percent after briefly dipping into negative territory.


On top of that, just 40 percent of S&P 500 companies beat revenue expectations in the third quarter, while 64.2 percent beat earnings estimates, the Thomson Reuters data showed.


For the fourth quarter, estimates are slightly better but are well off estimates for the quarter from just a few months earlier. S&P 500 earnings are expected to have risen 2.8 percent while revenue is expected to have gone up 1.9 percent.


Back in October, earnings growth for the fourth quarter was forecast up 9.9 percent.


In spite of the cautious outlooks, some analysts still see a good chance for earnings beats this reporting period.


"The thinking is you need top line growth for earnings to continue to expand, and we've seen the market defy that," said Mike Jackson, founder of Denver-based investment firm T3 Equity Labs.


Based on his analysis, energy, industrials and consumer discretionary are the S&P sectors most likely to beat earnings expectations in the upcoming season, while consumer staples, materials and utilities are the least likely to beat, Jackson said.


Sounding a positive note on Friday, drugmaker Eli Lilly and Co said it expects profit in 2013 to increase by more than Wall Street had been forecasting, primarily due to cost controls and improved productivity.


(Reporting By Caroline Valetkevitch; Editing by Kenneth Barry)



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