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. 


Social Media News Headlines – Yahoo! News





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




Style News Now





01/03/2013 at 03:00 PM ET



Candice Swanepoel Victoria's Secret Swim
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.


__


Online:


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


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Wall Street edges lower after Fed minutes

NEW YORK (Reuters) - U.S. stocks edged lower on Thursday after minutes from the latest Federal Reserve meeting showed growing concern about the risks of its highly stimulative monetary policy.


Despite the concerns about the effects of its asset purchases, the Fed look set to continue its open-ended stimulus program for now.


The minutes from the December meeting showed a growing reticence about further increases in the central bank's $2.9 trillion balance sheet, which it expanded sharply in response to the financial crisis and recession of 2007-2009.


Stocks had pushed the benchmark S&P 500 index 4.3 percent higher during a two-day run as investors turned their focus to upcoming battles in Congress, including likelihood of bitter fights over spending cuts and raising the federal debt ceiling.


"As we look down the pathway here, there are some real issues in front of the market. There is going to be a new battle in two months over the debt ceiling and sequestration and fourth-quarter earnings are going to start to come into focus," said Stephen Massocca, managing director at Wedbush Morgan in San Francisco.


"There are some issues out there that could hold this market back, but on the other side of the ledger, zero interest rates are a tremendous stock market flotation device."


The rally in equities began on the last day of 2012 on optimism a deal would be reached to avert the "fiscal cliff," and avoid a possible recession. Gains continued on Wednesday, the first trading day of 2013, with Wall Street's best performance since December 20, 2011 after Congress approved a fiscal compromise.


Retailers advanced after several major companies in the sector beat expectations of modest sales increases in December, with the S&P retail index <.spxrt> up 0.8 percent and the Morgan Stanley retail index <.mvr> up 0.6 percent.


The Dow Jones industrial average <.dji> dropped 17.47 points, or 0.13 percent, to 13,395.08. The Standard & Poor's 500 Index <.spx> shed 2.30 points, or 0.16 percent, to 1,460.12. The Nasdaq Composite Index <.ixic> dipped 5.19 points, or 0.17 percent, to 3,107.07.


Economic data showed U.S. private-sector employers shrugged off a looming budget crisis and stepped up hiring in December, offering further evidence of underlying strength in the economy as 2012 ended.


The government's broader monthly payrolls report, due on Friday, is expected to show the economy created 150,000 jobs compared with 146,000 in November, according to a Reuters poll. The U.S. unemployment rate is seen holding steady at 7.7 percent.


Retailers advanced after several major companies in the sector beat expectations of modest sales increases in December, with the S&P retail index <.spxrt> up 0.8 percent and the Morgan Stanley retail index <.mvr> up 0.6 percent.


Shares in Costco Wholesale Corp rose 1.4 percent to $102.85 after the company reported a better-than-expected 9 percent rise in December sales at stores open at least a year.


Gap Inc stock climbed 3.1 percent to $32.33 following news that the retailer will buy women's fashion boutique Intermix Inc, the Wall Street Journal reported.


Family Dollar Stores Inc stumbled 12 percent to $56.38 on the company's report of lower-than-expected quarterly profit.


(Additional reporting by Angela Moon, Editing by Bernadette Baum and Kenneth Barry)



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Dozens of Syrians Killed in Explosions Around Damascus


Andoni Lubaki/Associated Press


Rebel fighters patrol a neighborhood in Aleppo on Wednesday.







BEIRUT, Lebanon — Dozens of Syrians were killed or wounded in an explosion at a gas station east of Damascus, the Syrian capital, on Wednesday, and explosions in another Damascus suburb killed at least six people and wounded many more, including women and children, according to videos and reports from antigovernment activists.




The violence came as the United Nations released a study showing that more than 60,000 people had been killed in Syria’s 22-month-old conflict, a third higher than estimates by antigovernment activist groups.


Also on Wednesday, the family of James Foley, a reporter for the Global Post Web site, announced that Mr. Foley had been kidnapped on Nov. 22 by unidentified gunmen in northwest Syria. Mr. Foley had survived an abduction in Libya while covering the conflict there.


A recent flurry of diplomatic activity by Russia, the United Nations’ special envoy and others aimed at finding a political solution appeared to founder in recent days as neither Bashar al-Assad, the Syrian president, nor his opponents expressed a willingness to make concessions to end the bloody conflict.


The explosion near Damascus, which witnesses blamed on an airstrike, took place in a heavily contested suburban area. It hit a gas station where scores of people had lined up for fuel, which had just become available there after about a month, residents said. Videos posted by antigovernment activists showed charred bodies.


One man, using the nickname Abu Fuad, said in a telephone interview that he had just filled up his gas tank and was driving away when he heard the screech of fighter jets.


He was less than a quarter mile away when he heard the explosions, he said.


“There were many cars waiting their turn,” he said. “Yesterday, we heard that the government sent fuel to the gas station here, so all the people around came to fill up their cars.”


In a sign of the depth of distrust the conflict has spawned, Abu Fuad suggested that restocking the station was a government ruse. “They sent fuel as a trap,” he said.


In northern Syria, rebels used rockets to attack the Taftanaz military airport, a long-contested area in the province of Idlib, activists reported. Rebels have also stepped up attacks on airports in the neighboring province of Aleppo, trying to disrupt the warplanes and helicopters that government forces increasingly rely on for attacks, and even for supply lines, in the north.


The United Nations study suggested that the human toll of the war was even greater than previously estimated. Two days ago, the Syrian Observatory for Human Rights, a rebel group that tracks the war from Britain, reported 45,000 deaths, mostly civilian, since the conflict began in March 2011.


“The number of casualties is much higher than we expected, and is truly shocking,” the United Nations high commissioner for human rights, Navi Pillay, said in a statement after her agency released the study.


“We must not compound the existing disaster by failing to prepare for the inevitable — and very dangerous — instability that will occur when the conflict ends,” she added. To avoid repeating the experience of collapsed states like Afghanistan, Iraq and Somalia, she said, “serious planning needs to get under way immediately, not just to provide humanitarian aid to all those who need it, but to protect all Syrian citizens from extrajudicial reprisals and acts of revenge.”


The study’s surprisingly high death toll reflected only those killings in which victims had been identified by their full name, and the date and location of their death had been recorded, leaving the possibility of many more dead.


Independent researchers compiled reports of more than 147,000 killings in Syria’s conflict from seven sources, including the government. When duplicates were removed, there remained a list of 59,648 people killed between March 2011 and the end of November.


Meanwhile, John Foley, James Foley’s father, stressed that his son was an “objective journalist” and issued a plea to his captors to contact the family so that they can work for his release.


“We want Jim to come safely home, or at least we need to speak with him to know he’s O.K.,” John Foley said. “Jim is an objective journalist and we appeal for the release of Jim unharmed. To the people who have Jim, please contact us so we can work together toward his release.”


Hwaida Saad contributed reporting.



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Apple reportedly considering Waze acquisition to help fix iOS Maps app









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Robin Roberts Reunites with Her Dog 100 Days After Bone Marrow Transplant















01/02/2013 at 03:30 PM EST



This may have been the best New Year's yet for Robin Roberts.

Exactly 100 days after successfully undergoing a bone marrow transplant, the Good Morning America host was reunited with her beloved dog, KJ, just days before ringing in 2013.

"Look who made it back for my 100 day celebration," she Tweeted on Dec. 29, with a photo of herself and KJ in a cuddly embrace. "We just keep staring at each [other] … can't believe she's finally home."

Roberts, who had the transplant Sept. 20, suffers from a rare blood disorder called myelodysplastic syndrome. The 100-day mark is a criticial milestone in her long recovery and she celebrated it on Twitter earlier that day.

"Every morning I mark the day post my bone marrow transplant. Today I reached a major milestone ... Day 100! Blessings..XO," she wrote.

In November, Roberts said that with each day comes a newfound strength.

"It's a journey that kind of zigzags, and there are complications and things like that, but I feel good. I feel stronger every day," she told her sister and donor, Sally-Ann Roberts, in an interview.

With KJ now by her side, her support system is even larger.

"Couldn't resist sharing one more photo … KJ already feeling right at home," she wrote, with a photo of the dog snoozing on her leg. "So happy to have the lil girlback."

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Brain image study: Fructose may spur overeating


This is your brain on sugar — for real. Scientists have used imaging tests to show for the first time that fructose, a sugar that saturates the American diet, can trigger brain changes that may lead to overeating.


After drinking a fructose beverage, the brain doesn't register the feeling of being full as it does when simple glucose is consumed, researchers found.


It's a small study and does not prove that fructose or its relative, high-fructose corn syrup, can cause obesity, but experts say it adds evidence they may play a role. These sugars often are added to processed foods and beverages, and consumption has risen dramatically since the 1970s along with obesity. A third of U.S. children and teens and more than two-thirds of adults are obese or overweight.


All sugars are not equal — even though they contain the same amount of calories — because they are metabolized differently in the body. Table sugar is sucrose, which is half fructose, half glucose. High-fructose corn syrup is 55 percent fructose and 45 percent glucose. Some nutrition experts say this sweetener may pose special risks, but others and the industry reject that claim. And doctors say we eat too much sugar in all forms.


For the study, scientists used magnetic resonance imaging, or MRI, scans to track blood flow in the brain in 20 young, normal-weight people before and after they had drinks containing glucose or fructose in two sessions several weeks apart.


Scans showed that drinking glucose "turns off or suppresses the activity of areas of the brain that are critical for reward and desire for food," said one study leader, Yale University endocrinologist Dr. Robert Sherwin. With fructose, "we don't see those changes," he said. "As a result, the desire to eat continues — it isn't turned off."


What's convincing, said Dr. Jonathan Purnell, an endocrinologist at Oregon Health & Science University, is that the imaging results mirrored how hungry the people said they felt, as well as what earlier studies found in animals.


"It implies that fructose, at least with regards to promoting food intake and weight gain, is a bad actor compared to glucose," said Purnell. He wrote a commentary that appears with the federally funded study in Wednesday's Journal of the American Medical Association.


Researchers now are testing obese people to see if they react the same way to fructose and glucose as the normal-weight people in this study did.


What to do? Cook more at home and limit processed foods containing fructose and high-fructose corn syrup, Purnell suggested. "Try to avoid the sugar-sweetened beverages. It doesn't mean you can't ever have them," but control their size and how often they are consumed, he said.


A second study in the journal suggests that only severe obesity carries a high death risk — and that a few extra pounds might even provide a survival advantage. However, independent experts say the methods are too flawed to make those claims.


The study comes from a federal researcher who drew controversy in 2005 with a report that found thin and normal-weight people had a slightly higher risk of death than those who were overweight. Many experts criticized that work, saying the researcher — Katherine Flegal of the Centers for Disease Control and Prevention — painted a misleading picture by including smokers and people with health problems ranging from cancer to heart disease. Those people tend to weigh less and therefore make pudgy people look healthy by comparison.


Flegal's new analysis bolsters her original one, by assessing nearly 100 other studies covering almost 2.9 million people around the world. She again concludes that very obese people had the highest risk of death but that overweight people had a 6 percent lower mortality rate than thinner people. She also concludes that mildly obese people had a death risk similar to that of normal-weight people.


Critics again have focused on her methods. This time, she included people too thin to fit what some consider to be normal weight, which could have taken in people emaciated by cancer or other diseases, as well as smokers with elevated risks of heart disease and cancer.


"Some portion of those thin people are actually sick, and sick people tend to die sooner," said Donald Berry, a biostatistician at the University of Texas MD Anderson Cancer Center in Houston.


The problems created by the study's inclusion of smokers and people with pre-existing illness "cannot be ignored," said Susan Gapstur, vice president of epidemiology for the American Cancer Society.


A third critic, Dr. Walter Willett of the Harvard School of Public Health, was blunter: "This is an even greater pile of rubbish" than the 2005 study, he said. Willett and others have done research since the 2005 study that found higher death risks from being overweight or obese.


Flegal defended her work. She noted that she used standard categories for weight classes. She said statistical adjustments were made for smokers, who were included to give a more real-world sample. She also said study participants were not in hospitals or hospices, making it unlikely that large numbers of sick people skewed the results.


"We still have to learn about obesity, including how best to measure it," Flegal's boss, CDC Director Dr. Thomas Frieden, said in a written statement. "However, it's clear that being obese is not healthy - it increases the risk of diabetes, heart disease, cancer, and many other health problems. Small, sustainable increases in physical activity and improvements in nutrition can lead to significant health improvements."


___


Online:


Obesity info: http://www.cdc.gov/obesity/data/trends.html


___


Marilynn Marchione can be followed at http://twitter.com/MMarchioneAP


Mike Stobbe can be followed at http://twitter.com/MikeStobbe


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Wall Street rallies on "fiscal cliff" agreement

NEW YORK (Reuters) - U.S. stocks began the new year with a broad rally on Wednesday, sparked by a last-minute deal in Washington to avert the "fiscal cliff" of tax hikes and spending cuts that threatened to derail the economy.


In 2013's first trading session, the S&P 500 was on target for its best percentage gain since November 19 and highest close since October 19.


The Dow Jones industrial average <.dji> gained 229.64 points, or 1.75 percent, to 13,333.78. The Standard & Poor's 500 Index <.spx> rose 26.53 points, or 1.86 percent, to 1,452.72. The Nasdaq Composite Index <.ixic> jumped 74.26 points, or 2.46 percent, to 3,093.77.


U.S. markets were closed on Tuesday for New Year's Day.


Nine stocks rose for every one falling on the New York Stock Exchange and all 10 of the S&P 500 industry sector indexes gained at least 1 percent. The S&P financial index <.gspf> was up 2.2 percent.


The S&P Information Technology index <.gspt> gained 2.1 percent, including Hewlett-Packard , which climbed nearly 5 percent to $14.95. HP's gain followed a miserable 2012 when the stock fell nearly 45 percent.


Congress passed a bill to prevent huge tax hikes and delay spending cuts that would have pushed the world's largest economy off a "fiscal cliff" and possibly into recession.


The vote avoided steep income-tax increases for a majority of Americans but failed to resolve a major showdown over cutting the budget deficit, leaving investors and businesses with only limited clarity about the outlook for the economy. Spending cuts of $109 billion in military and domestic programs were temporarily delayed, and another fight over raising the U.S. debt limit also looms.


"We got through the fiscal cliff. The next big thing, and probably more contentious thing, is negotiating the debt ceiling and possibly entitlement reform in early 2013," said Jim Russell, senior equity strategist for U.S. Bank Wealth Management in Cincinnati.


Hard choices about budget cuts and the critical need to raise the debt ceiling will confront Congress about the same time in two months "so the fur will be flying," Russell said.


U.S. stocks ended 2012 with the S&P 500 up 13.4 percent for the year, as investors largely shrugged off worries about the fiscal cliff. For the year, the Dow gained 7.3 percent and the Nasdaq jumped 15.9 percent.


Bank shares rose following news that U.S. regulators are close to securing another multibillion-dollar settlement with the largest banks to resolve allegations that they unlawfully cut corners when foreclosing on delinquent borrowers.


Bank of America Corp rose 3 percent to $11.95 and Citigroup Inc gained 3.7 percent to $41.03. The KBW bank index <.bkx> rose 2.4 percent and the S&P financial sector <.gspf> climbed 2.2 percent.


Shares of Zipcar Inc surged 48.2 percent to $12.21 after Avis Budget Group Inc said it would buy Zipcar for about $500 million in cash to compete with larger rivals Hertz and Enterprise Holdings Inc. Avis advanced 4.8 percent to $20.78.


Shares of Apple rose 2.5 percent to $545.56, helping to lift the S&P technology index <.gspt> up 2.3 percent following a report that the most valuable tech company has started testing a new iPhone and a new version of its iOS software.


Economic data showed U.S. manufacturing ended 2012 on an upswing despite fears about the fiscal cliff, but construction spending fell in November for the first time in eight months.


(Reporting by Chuck Mikolajczak; Editing by Kenneth Barry)



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