"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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Afghan Soldier’s Journey From Friend to Killer of Americans

Video Image via Site Monitoring Service

Mahmood is shown being welcomed by the Taliban after he opened fire on American trainers in Kunar Province.

KABUL, Afghanistan — It was only after the young Afghan soldier’s hatred of Americans had grown murderous that he reached out to the Taliban.

The soldier, named simply Mahmood, 22, said that in May he told the insurgents of his plan to shoot Americans the next time they visited the outpost where he was based in northeastern Afghanistan. He asked the Taliban to take him in if he escaped.

The Taliban veterans he contacted were skeptical. Despite their public insistence that they employ vast ranks of infiltrators within the Afghan Army and the police, they acknowledged that many of the insider attacks they take credit for start as offers by angry young men like Mahmood. They had seen many fail, or lose their nerve before even starting, and they figured that Mahmood, too, would prove more talk than action or would die in the attempt.

“Even the Taliban didn’t think I would be able to do this,” Mr. Mahmood said in an interview.

He proved them wrong days later, on the morning of May 11, when he opened fire on American trainers who had gone to the outpost in the mountains of Kunar Province. One American was killed and two others were wounded. Mahmood escaped in the ensuing confusion, and he remains free in Kunar after the Taliban welcomed him into their ranks.

It was, he said, his “proudest day.”

Such insider attacks, by Afghan security forces on their Western allies, became “the signature violence of 2012,” in the words of one former American official. The surge in attacks has provided the clearest sign yet that Afghan resentment of foreigners is becoming unmanageable, and American officials have expressed worries about its disruptive effects on the training mission that is the core of the American withdrawal plan for 2014.

“It’s a game changer on all levels,” said First Sgt. Joseph Hissong, an American who helped fight off an insider attack by Afghan soldiers that left two men in his unit dead.

Cultural clashes have contributed to some of the insider attacks, with Afghan soldiers and police officers becoming enraged by what they see as rude and abusive behavior by Americans close to them. In some cases, the abusive or corrupt behavior of Afghan officers prompts the killer to go after Americans, who are seen as backing the local commanders. On rare occasions, like the killing of an American contractor by an Afghan policewoman late last month, there seems to be no logical explanation.

But behind it all, many senior coalition and Afghan officials are now concluding that after nearly 12 years of war, the view of foreigners held by many Afghans has come to mirror that of the Taliban. Hope has turned into hatred, and some will find a reason to act on those feelings.

“A great percentage of the insider attacks have the enemy narrative — the narrative that the infidels have to be driven out — somewhere inside of them, but they aren’t directed by the enemy,” said a senior coalition officer, who asked not to be identified because of Afghan and American sensitivities about the attacks.

The result is that, although the Taliban have successfully infiltrated the security forces before, they do not always have to. Soldiers and police officers will instead go to them, as was the case with Mr. Mahmood, who offered a glimpse of the thinking behind the violence in one of the few interviews conducted with Afghans who have committed insider attacks.

“I have intimate friends in the army who have the same opinion as I do,” Mr. Mahmood said. “We used to sit and share our hearts’ tales.”

But he said he did not tell any of his compatriots of his plan to shoot Americans, fearing that it could leak out and derail his attack. The interviews with Mr. Mahmood and his Taliban contacts were conducted in recent weeks by telephone and through written responses to questions. There are also two videos that show Mr. Mahmood with the Taliban: an insurgent-produced propaganda video available on jihadi Web sites, and an interview conducted by a local journalist in Kunar.

Though Mr. Mahmood at times contradicted himself, falling into stock Taliban commentary about how it had always been his ambition to kill foreigners, much of what he said mirrored the timelines and versions of events provided by Taliban fighters who know him, as well as Afghan officials familiar with his case.

Mr. Mahmood grew up in Tajikan, a small village in the southern province of Helmand. The area around his village remains dominated by the Taliban despite advances against the insurgents made in recent years by American and British troops. Even Afghans from other parts of Helmand are hesitant to travel to Tajikan for fear of the Taliban.

Sangar Rahimi and Jawad Sukhanyar contributed reporting from Kabul, and an employee of The New York Times from Asadabad.

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EU says its Google case not affected by U.S. ruling

BRUSSELS (Reuters) – A decision by U.S. regulators to end a probe into whether Google Inc hurt rivals by manipulating internet searches will not affect the European Union‘s examination of the company.

“We have taken note of the FTC (Federal Trade Commission) decision, but we don’t see that it has any direct implications for our investigation, for our discussions with Google, which are ongoing,” said Michael Jennings, a spokesman for the European Commission, the EU executive.

U.S. regulators on Thursday ended their investigation into the giant internet company, which runs the world’s most popular search engine.

Other internet companies, such as Microsoft Corp, had complained about Google tweaking its search results to give prominence to its own products. But the FTC said there was not enough evidence to pursue a big search-bias case.

The European Commission has for the past two years been investigating complaints against Google, including claims that it unfairly favored its own services in its search results.

Google presented informal settlement proposals to the Commission in July. On December 18 the Commission gave the company a month to come up with detailed proposals to resolve the investigation.

If it fails to address the complaints and is found guilty, Google could eventually be fined up to 10 percent of its revenue – a fine of up to $ 4 billion.

(Reporting By Ethan Bilby; Editing by Sebastian Moffett and David Goodman)

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Professional Bull Riders: Who Is the Sexiest Cowboy Alive?

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By Rennie Dyball

01/04/2013 at 03:45 PM EST

The bulls are back in town – and they're bringing a bunch of strapping cowboys with them.

The Professional Bull Riders kick off their 2013 season Friday at N.Y.C.'s Madison Square Garden with a whole lot of cowboy hats, chaps and swagger.

In the arena, the riders will battle it out atop the toughest bulls in the world, but here on PEOPLE.com, we're pitting them against each other. Get to know a little bit about these top 25 bull riders in the most dangerous eight seconds in sports and let us know who you think is the sexiest of them all. (Scroll through the carousel above for more photos of our top five if you're on a desktop or laptop computer.)

From left: Guilherme Marchi, Luke Snyder, J.B. Mauney, Silvano Alves and Douglas Duncan

Courtesy of PBR and Bull Stock Media

Guilherme Marchi
A former world champion, Marchi (nicknamed "Hollywood" for his movie-star looks) fought and scraped his way through the 2012 season, only to come up just short of another gold buckle. And his year wasn't without distractions: the Brazilian cowboy's wife, Patricia, suffered major injuries in a rodeo accident. She's since recovered, and this 30-year-old family man often gives shout-outs to his two young children on the PBR telecasts.

Luke Snyder
Snyder, 30, won readers' hearts last year when he wed Jen Manna in a rustic, romantic celebration. His bride may sum up the Missouri man's appeal best: "He was the cutest thing I'd ever seen. I couldn't get enough of that hat, that accent!" the new Mrs. Snyder told PEOPLE of first meeting her future husband. "I don't think I'd ever met a cowboy before. But I just thought he was the bee's knees."

J.B. Mauney
Newlywed and new dad Mauney, 25, made history in his sport last year after a broken hand nearly ended his season. Never one to sit out a competition, he did the nearly impossible and switched riding hands (riders use one hand to hold their bull rope while the other hand is raised in the air). PBR co-founder Ty Murray likened the move to a major league pitcher switching his throwing arm. Look for the now-healthy North Carolina cowboy to pick the toughest bulls and swing for the fences all season. "Anytime somebody tells me I can't do something," Mauney has said, "I'm gonna try everything I can to do it."

Silvano Alves
In October, Alves became the first back-to-back PBR World Champion in history. "Every bull rider dreams of winning the world championship. To do it twice is very special," says the 25-year-old Brazilian rider, who took home top honors in 2011 just after being crowned Rookie of the Year. But he's managed to stay humble amid all the records he's broken. "No one's ever done this before and I didn't think I could ever do it," he said last fall. "From when I was little I never would have dreamed I could do this."

Douglas Duncan
After growing up in a ranching family, Duncan says he's into everything about the lifestyle. "I love waking up in the morning, putting on my hat; I love everything about being a cowboy." To keep in shape, the 25-year-old Texan focuses on stretching, core work and riding – both horses and bulls. After hip surgery sidelined him last year, Duncan is hoping to crack the top ranks of the sport.

Runners up: For their classic cowboy names alone, (other than Pistol, these are all their genuine given names), we're granting these guys honorable mentions in the sexy race.

• Stormy Wing: The 23-year-old Texan, ranked 17th in the world, says his parents always planned to name their child Stormy, boy or girl.

• Pistol Robinson: "My dad called me Pistol, and rodeo buddies picked it up," Robinson tells PEOPLE of his longtime nickname (his given name is Caleb). "I lived a double life. Caleb went to school, and Pistol was the bull rider." He broke both legs in a wreck at last year's New York City event, but after a year of grueling rehab, Robinson is eager to compete again.

• Ryan Dirteater: Thanks to his Native American heritage, this aptly named Oklahoma cowboy's nickname is "Cherokee Kid." He's currently ranked 14th going into the 2013 season.

• Chase Outlaw: A rising star in the PBR, 20-year-old Outlaw's style has been likened to that of newly-retired PBR great Chris Shivers.

The Monster Energy Invitational at Madison Square Garden airs Saturday at 10 p.m. ET and Sunday at 8 p.m. ET on CBS Sports Network. View the full event and TV schedule here.

Who do you think is the Sexiest Cowboy Alive?

Guilherme Marchi

Luke Snyder

J.B. Mauney

Silvano Alves

Douglas Duncan

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FDA proposes sweeping new food safety rules

WASHINGTON (AP) — The Food and Drug Administration on Friday proposed the most sweeping food safety rules in decades, requiring farmers and food companies to be more vigilant in the wake of deadly outbreaks in peanuts, cantaloupe and leafy greens.

The long-overdue regulations are aimed at reducing the estimated 3,000 deaths a year from foodborne illness. 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 Centers for Disease Control. The actual number of those sickened is likely much higher.

The FDA's proposed rules 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.

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 on those safety efforts 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 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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Data helps pace Wall Street higher, but Apple drags

NEW YORK (Reuters) - U.S. stocks advanced on Friday, putting the S&P 500 on track for its biggest weekly gain in over a year after a jobs report showed employers kept the pace of hiring steady in December.

The Labor Department said payrolls outside the farming sector grew by 155,000 jobs last month, slightly below November's level. Gains in employment were distributed broadly throughout the economy, from manufacturing and construction to healthcare.

Also helping to keep equities afloat was data from the Institute for Supply Management showing U.S. service sector activity expanding the most in 10 months.

"It feels like the economy, we're not burning the barn down, but we are doing fine - we seem to be growing and the fiscal cliff does not seem to have weighed too much on December employment," said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont.

The S&P 500 index's weekly gain would be its largest since December 2011. The majority of the gains were achieved earlier in the holiday-shortened week, including the largest daily gain for the benchmark S&P index in more than a year on Wednesday, after a deal was struck in Washington to avert the "fiscal cliff."

"So far there is nothing that has come out that has been negative following the push, they tried to read into the Fed minutes yesterday and take it down but so far they haven't had much success," Mendelsohn said.

But a drag on Apple Inc shares, down 2.6 percent to $528.36, kept the Nasdaq near the uchanged mark, as the iPhone maker continued its downward path of recent months.

Adding to concerns about Apple's ability to produce more innovative products, rival Samsung Electronics Co Ltd is expected to widen its lead over Apple in global smartphone sales this year with growth of 35 percent. Market researcher Strategy Analytics said Samsung had a broad product lineup.

The Dow Jones industrial average <.dji> gained 28.46 points, or 0.21 percent, to 13,419.82. The Standard & Poor's 500 Index <.spx> rose 5.47 points, or 0.37 percent, to 1,464.84. The Nasdaq Composite Index <.ixic> added 2.50 points, or 0.08 percent, to 3,103.07.

The CBOE Volatility index <.vix>, a measure of investor anxiety, was on pace for its fourth straight decline, a drop of nearly 40 percent which has pushed the index to its lowest level since September.

Eli Lilly and Co was among the biggest boost's to the S&P, up 3.5 percent to $51.47 after the pharmaceuticals maker said it expects its 2013 earnings to increase to $3.75 to $3.90 per share, excluding items, from $3.30 to $3.40 per share in 2012.

Fellow drugmaker Johnson & Johnson rose 1.2 percent to $71.55 after Deutsche Bank upgraded the Dow component to a "Buy" from a "Hold" rating. The NYSEArca pharmaceutical index <.drg> climbed 0.4 percent.

Shares of Mosaic Co gained 2.7 percent to $58.29. Excluding items, the fertilizer producer's quarterly earnings beat analysts' expectations, according to Thomson Reuters I/B/E/S.

The rise in payrolls shown by the jobs data did not make a dent in the still-high U.S. unemployment rate, but it calmed fears about the possibility of the U.S. Federal Reserve ending its highly stimulative monetary policy.

Concerns about the duration of the Fed's stimulus program prompted a pull-back from the market Thursday after a rally.

Minutes from the Fed's December policy meeting, released Thursday, showed Fed officials were increasingly worried about the risks of asset purchases to financial markets, though they looked set to continue with the open-ended stimulus program for now.

(Reporting by Chuck Mikolajczak; Editing by Nick Zieminski)

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Obama Signs Defense Bill, With Conditions

WASHINGTON — President Obama set aside his veto threat and late Wednesday signed a defense bill that imposes restrictions on transferring detainees out of military prisons in Afghanistan and Guantánamo Bay, Cuba. But Mr. Obama attached a signing statement claiming that he has the constitutional power to override the limits in the law.

His move awakened a dormant issue from Mr. Obama’s first term: his broken promise to close the Guantánamo prison. Lawmakers intervened by imposing statutory restrictions on transfers of prisoners to other countries or into the United States, either for continued detention or for prosecution.

Now, as Mr. Obama prepares to begin his second term, Congress has tried to further restrict his ability to wind down the detention of terrorists worldwide, adding new limits in the National Defense Authorization Act of 2013, which lawmakers approved in late December.

The bill extended and strengthened limits on transfers out of Guantánamo to troubled nations like Yemen, where the bulk of the remaining low-level detainees who have been cleared for repatriation are from. It also, for the first time, limited the Pentagon’s ability to transfer the roughly 50 non-Afghan citizens being held at the Parwan prison at Bagram Air Base in Afghanistan at a time when the future of American detention operations there is murky.

Despite his objections, Mr. Obama signed the bill, saying its other provisions on military programs were too important to jeopardize. Early Thursday, shortly after midnight, the White House released the signing statement in which the president challenged several of its provisions.

For example, in addressing the new limits on the Parwan detainees, Mr. Obama wrote that the provision “could interfere with my ability as Commander in Chief to make time-sensitive determinations about the appropriate disposition of detainees in an active area of hostilities.”

He added that if he decided that the statute was operating “in a manner that violates constitutional separation of powers principles, my administration will implement it to avoid the constitutional conflict” – legalistic language that means interpreting the statute as containing an unwritten exception a president may invoke at his discretion.

Saying that he continued to believe that closing the Guantánamo prison was in the country’s fiscal and national security interests, Mr. Obama made a similar challenge to three sections that limit his ability to transfer detainees from Guantánamo, either into the United States for prosecution before a civilian court or for continued detention at another prison, or to the custody of another nation.

It was not clear, however, whether Mr. Obama intended to follow through, or whether he was just saber-rattling as a matter of principle. Mr. Obama had made a similar challenge a year ago to the Guantánamo transfer restrictions in the 2012 version of the National Defense Authorization Act, but – against the backdrop of the presidential election campaign – he did not invoke the authority he had claimed.

Andrea Prasow, senior counterterrorism counsel and advocate at Human Rights Watch, which advocates closing Guantánamo, criticized Mr. Obama for not vetoing the legislation despite his threat to do so.

“The administration blames Congress for making it harder to close Guantánamo, yet for a second year President Obama has signed damaging congressional restrictions into law,” she said. “The burden is on Obama to show he is serious about closing the prison.”

Signing statements are official documents issued by a president when he signs bills into law that instruct subordinates in the executive branch about how to implement the new statutes. In recent decades, starting with the Reagan administration, presidents have used the device with far greater frequency than in earlier eras to claim a constitutional right to bypass or override new laws.

The practice peaked under President George W. Bush, who used signing statements to advance sweeping theories of presidential power and challenged nearly 1,200 provisions over eight years – more than twice as many as all previous presidents combined.

The American Bar Association has called upon presidents to stop using signing statements, calling the practice “contrary to the rule of law and our constitutional system of separation of powers.” A year ago, the group sent a letter to Mr. Obama restating its objection to the practice and urging him to instead veto bills if he thinks sections are unconstitutional.

As a presidential candidate, then-Senator Obama sharply criticized Mr. Bush’s use of the device as an overreach. Once in office, however, he said that he would use them only to invoke mainstream and widely accepted theories of the constitutional power of the president.

In his latest signing statement, Mr. Obama also objected to five provisions in which Congress required consultations and set out criteria over matters involving diplomatic negotiations about such matters as a security agreement with Afghanistan, saying that he would interpret the provisions so as not to inhibit “my constitutional authority to conduct the foreign relations of the United States.”

Mr. Obama raised concerns about several whistle-blower provisions that protected people who provide certain executive branch information to Congress from reprisals — including employees of contractors who uncover waste or fraud, and officials raising concerns about the safety and reliability of nuclear stockpiles.

He also took particular objection to a provision that directs the commander of the military’s nuclear weapons to submit a report to Congress “without change” detailing whether any reduction in nuclear weapons proposed by Mr. Obama would “create a strategic imbalance or degrade deterrence” relative to Russian stockpiles.

The provision, Mr. Obama said, “would require a subordinate to submit materials directly to Congress without change, and thereby obstructs the traditional chain of command.”

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Can the Government Really Ban Twitter Parody Accounts?

Arizona is entertaining a law that will make it a felony to use another person’s real name to make an  Internet profile intended to “harm, defraud, intimidate or threaten,” which to some sounds like a law against parody Twitter accounts. The legislation, if passed, would make Arizona one of a few states, including New York, California, Washington and Texas, to enact anti-online-impersonation laws. If these regulations seek to put a stop to fake representations online, that does sound like the end of fake celebrity baby accounts and Twitter death hoaxes. Then again, these laws have existed in these other places for years, and that hasn’t stopped the faux accounts from coming in. So what then does this mean?

RELATED: The Army’s Social Media Industrial Complex

What kind of stuff is the law intended to prosecute?

RELATED: Why French Broadcasters Can’t Say ‘Twitter’ and ‘Facebook’ Anymore

The law does not say that all uses of another person’s real name can be charged as a felony, but only profiles made for the more nefarious purposes fall into that territory. The legislation is  targeted at more serious forms of impersonation, like cyber bullying. Two Texas teens were arrested and charged under this law for creating a fake Facebook page to ruin a peer’s reputation, for example. Or, the case of Robert Dale Esparza Jr. who created a fake profile of his son’s vice principal on a porn site might fall under this law, suggests The Arizona Republic‘s Alia Beard Rau. Or, in one of the cases brought to court under the Texas version of this law, an Adam Limle created websites that portrayed a woman he used to date as a prostitute. (The case was eventually dropped because of a geographical loophole. Limle lived in Ohio, not Texas.) 

RELATED: Prius Drivers Will Get Their Own Social Network

Okay, the harm and threat in those situation is pretty clear. How can it at all apply to something relatively harmless, like a Twitter parody account? 

RELATED: How the Deported American Teen Spent Her Time in Colombia

The term “harm” is pretty vague, as this Texas Law blog explains, referring to that state’s version of this legislation, on which Arizona based its own law. “‘Harm’ can be very broadly construed–one person’s joke is another person’s harm,” writes Houston lawyer Stephanie Stradley. 

RELATED: Netanyahu’s Son Demonstrates Another Political Risk of Social Media

So, that could extend to parody accounts then? 

Well, possibly. Stradley suggests that politicians who had parody accounts created to mock them might have a case. Some of the impersonation of Texas lawmakers has gone beyond just the jokey fake Twitter handle. Jeffwentworth.com is not the official site for Texas state senator, but rather redirects to the web site of the anti-tax advocate group Empower Texans which considers the San Antonio politician the “the most liberal Republican senator in Austin.” Wentworth told The New York Times this domain squatting amounted to “identity theft,” and could be the basis for the law’s usage. 

The law could also possibly effect sillier parody accounts, suggest privacy advocates. “The problem with this, and other online impersonation bills, is the potential that they could be used to go after parody or social commentary activities,” senior staff attorney for the Electronic Frontier Foundation Kurt Opsahl told The Arizona Republic’s Alia Beard Rau. ”While this bill is written to limit ‘intent to harm,’ if that is construed broadly, there could be First Amendment problems.”

Ok, but what about precedent? Has the law ever applied to a faux Twitter handle? 

Twitter has its own parody policy that mitigates a lot of the possible damage that could ever lead to a court case. Saint Louis Cardinals manager Anthony La Russa sued Twitter in 2009 because of a made-up account, but the account was removed before the case went anywhere (And that was before these laws went into effect.) 

But it’s not clear that parody would ever be considered harmful enough for the law. When California’s version went into effect, a first amendment lawyer suggested to SF Weekly‘s Joe Eskenazi that jokes could go pretty far without prosecution. “You’re going to have to have room for satire,” he said. The account would have to look fool people, he argued. “A key question is, ‘is it credibile?’” asks Simitian. “Do people who read it think it’s him?” Because of our increasing skepticism of things on Twitter, unless the site has verified checkmark, it’s unlikely that most people believe in a fake account for long. So, unless the imitation tweeter does something extremely harmful to someone’s character, it doesn’t sound like anyone would have a strong case. Alas, parody Twitter accounts, for better or worse (worse, right?) are here to stay. 

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Check Out This Year's Victoria's Secret Swim Cover Model

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Style News Now

01/03/2013 at 03:00 PM ET

Courtesy Victoria’s Secret

While most of the country is hiding from cold temps, the Victoria’s Secret Angels are heating things up! The ladies star in the 2013 swim catalogue — in mailboxes nationwide today — and South African beauty Candice Swanepoel has the privilege (again) of covering the coveted issue.

“It was such an honor to be picked for the cover,” the model tells PEOPLE. “It is such an iconic catalogue. Before I was a model, I used to see Gisele Bündchen, Tyra Banks and all of those iconic women on it. It is amazing that a little South African girl can get on the cover.”

In her big shot, Swanepoel wears a Very Sexy bandeau top — one Victoria’s Secret’s newest offerings for 2013 (in stores and online today). “I love it — it’s so sexy and gives me amazing cleavage,” the model shares.

For this catalogue, Swanepoel and her Angel pals hit the beaches of Miami and Turks and Caicos, and were shot by famed photographer Russell James. And though there is always pressure to look perfect in pictures, Swanepoel says she was never nervous during her shoot.

“Victoria’s Secret is like a big family,” she explains. “The swim shoots are always really fun, and I love being on the beach. I can’t really complain [about my job] — I feel very lucky!”

This year, the company is offering a little something extra for swim fans in the form of the new Angels & Artists video series, which basically pairs hot songs with hot models in bikinis. The first clip in the series, “Bikinis & Bruno Mars” (below), features Swanepoel and Doutzen Kroes making waves to the tune of Mars’s “Locked Out of Heaven.” Additional videos featuring music and models will be released throughout swimsuit season.

If this catalogue leaves you wanting more, you’re in luck: three more catalogues, shot in Tulum and St. Barth’s, will hit mailboxes throughout the season.

–Kate Hogan

PHOTOS: WANT TO GET BIKINI-READY? SHOP THIS STAR-INSPIRED WORKOUT GEAR!

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CDC: 1 in 24 admit nodding off while driving

NEW YORK (AP) — This could give you nightmares: 1 in 24 U.S. adults say they recently fell asleep while driving.

And health officials behind the study think the number is probably higher. That's because some people don't realize it when they nod off for a second or two behind the wheel.

"If I'm on the road, I'd be a little worried about the other drivers," said the study's lead author, Anne Wheaton of the Centers for Disease Control and Prevention.

In the CDC study released Thursday, about 4 percent of U.S. adults said they nodded off or fell asleep at least once while driving in the previous month. Some earlier studies reached a similar conclusion, but the CDC telephone survey of 147,000 adults was far larger. It was conducted in 19 states and the District of Columbia in 2009 and 2010.

CDC researchers found drowsy driving was more common in men, people ages 25 to 34, those who averaged less than six hours of sleep each night, and — for some unexplained reason — Texans.

Wheaton said it's possible the Texas survey sample included larger numbers of sleep-deprived young adults or apnea-suffering overweight people.

Most of the CDC findings are not surprising to those who study this problem.

"A lot of people are getting insufficient sleep," said Dr. Gregory Belenky, director of Washington State University's Sleep and Performance Research Center in Spokane.

The government estimates that about 3 percent of fatal traffic crashes involve drowsy drivers, but other estimates have put that number as high as 33 percent.

Warning signs of drowsy driving: Feeling very tired, not remembering the last mile or two, or drifting onto rumble strips on the side of the road. That signals a driver should get off the road and rest, Wheaton said.

Even a brief moment nodding off can be extremely dangerous, she noted. At 60 mph, a single second translates to speeding along for 88 feet — the length of two school buses.

To prevent drowsy driving, health officials recommend getting 7 to 9 hours of sleep each night, treating any sleep disorders and not drinking alcohol before getting behind the wheel.

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Online:

CDC report: http://www.cdc.gov/mmwr

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