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)
WASHINGTON — In a memoir, Gen. Stanley A. McChrystal, the former American commander in Afghanistan, writes that tensions between the White House and the Pentagon were evident in the Obama administration from its opening months in office.
The beginning of President Obama’s first term “saw the emergence of an unfortunate deficit of trust between the White House and the Department of Defense, largely arising from the decision-making process on Afghanistan,” General McChrystal writes. “The effects were costly.”
The book by General McChrystal, who was fired from his post in 2010 after an article in Rolling Stone quoted him and his staff making dismissive comments about the White House, is likely to disappoint readers who are looking for a vivid blow-by-blow account of infighting within the administration.
The book, titled “My Share of the Task: A Memoir,” does not provide an account of the White House meeting at which Mr. Obama accepted the general’s resignation. General McChrystal’s tone toward Mr. Obama is respectful, and he notes that his wife, Annie, joined the crowd at Mr. Obama’s inauguration. The book is to be released on Monday.
An advance copy of the book provides revealing glimpses of the friction over military planning and comes as Mr. Obama is weighing, and perhaps preparing to overrule, the troop requests that have been presented by the current American commander in Afghanistan, Gen. John R. Allen.
The account is all the more noteworthy since General McChrystal, who retired from the Army, remains a respected voice within the military and teaches a course on leadership at Yale.
According to the book, the tensions began before General McChrystal took command in Kabul, Afghanistan, and were set off by a request from his predecessor, General David D. McKiernan, for 30,000 additional troops at the end of the Bush administration.
Instead of approving the entire request, in February 2009, Mr. Obama decided that 17,000 would be sent, adding that decisions on additional deployments would be based on further analysis.
From the White House perspective, General McChrystal writes, “this partial decision was logical.” After less than a month, the president had increased American forces in Afghanistan by 50 percent. Though Mr. Obama had cast the conflict in Afghanistan as a “war of necessity,” as a candidate he was nonetheless wary about a prolonged American military involvement there.
But the Pentagon pressed for an additional 4,000 troops, fearing that there was little time to reverse the Taliban’s gains before the August elections in Afghanistan.
“The military felt a sense of urgency, seeing little remaining time if any forces approved were to reach Afghanistan in time to improve security in advance of the elections,” he wrote.
The White House later approved the 4,000 troops, but the dispute pointed to a deeper clash of cultures over the use of force that continued after General McChrystal took command.
“Military leaders, many of whom were students of counterinsurgency, recognized the dangers of an incremental escalation, and the historical lesson that ‘trailing’ an insurgency typically condemned counterinsurgents to failure,” he writes.
In May 2009, soon before he assumed command in Kabul, General McChrystal had a “short, but cordial” meeting with Mr. Obama at which the president “offered no specific guidance,” he notes.
The next month, General McChrystal was surprised when James L. Jones, Mr. Obama’s first national security adviser, told him that the Obama administration would not consider sending more forces until the effect of arriving units could be fully evaluated.
That contradicted the guidance that General McChrystal had received from Defense Secretary Robert M. Gates that he should submit an assessment in August of the additional forces that might be required, he writes.
At an Oct. 8, 2009, video conference with Mr. Obama’s National Security Council, differences again emerged when General McChrystal outlined his goals: “Defeat the Taliban. Secure the population.”
That prompted a challenge by a Washington-based official, whom General McChrystal does not name, that the goal of defeating the Taliban seemed too ambitious and that the command in Kabul should settle instead for an effort to “degrade” the Taliban.
At the next video conference, General McChrystal presented a slide showing that his objectives had been derived from Mr. Obama’s own speeches and a White House strategy review. “But it was clear to me that the mission itself was now on the table for review and adjustment,” he wrote.
After General McChrystal determined that at least 40,000 additional forces were needed to reverse the deteriorating situation in Afghanistan, Mr. Obama provided 30,000 and said he would ask allied nations to contribute the rest.
General McChrystal acknowledges that he had concerns that Mr. Obama’s decision to announce a date for beginning the withdrawal of the additional “surge” forces might embolden the Taliban. But the general writes that he did not challenge the decision.
“If I felt like the decision to set a withdrawal date would have been fatal to the success of our mission, I’d have said so,” he writes.
General McChrystal has little to say about the episode that led to the article in Rolling Stone. He writes that the comments attributed to his team were “unacceptable” but adds that he was surprised by the tone of the article, which he had expected would show the camaraderie among the American, British, French and Afghan officers.
As the controversy over the article grew, General McChrystal did not seek advice before offering his resignation. The book does not say if he was disappointed when Mr. Obama accepted it at a brief White House meeting.
Returning to his quarters at Fort McNair after that White House meeting, he broke the news to his wife: “I told her that our life in the Army was over.”
If denial isn’t just a river in Egypt, then mobile isn’t just a city in Alabama. And if 2012 proved one thing, it’s that there’s no denying mobile is the present and future of technology.
Sales figures for mobile devices reached new heights in 2012. Market research firm Gartner predicted tablet sales would near 120 million, about doubling the total sold in 2011.
[More from Mashable: Would You Make Your Kid Sign a Contract to Use an iPhone?]
In addition, the number of active smartphones eclipsed 1 billion during the past year. That’s one for every seven people on the planet. And while it took almost two decades to reach 1 billion active smartphones, research firm Strategy Analytics projects there will be 2 billion by 2015, fueled by growth in developing economies in China, India and Africa.
It’s not just phones and tablets though. All sorts of smart mobile technology flourished in 2012, from watches and wristbands to glasses that can project video on the inside of the lenses. Speaking of glasses, in April, Google sent the tech world into a tizzy when it unveiled plans for a futuristic headset called Project Glass.
[More from Mashable: ‘Offensive Combat’ Brings Hardcore Gaming to Facebook]
Well, if you think mobile came a long way in 2012, this year could be even better. Here’s an outline of where we think mobile technology is headed in 2013.
Brand Wars Will Drive Innovation
In terms of smartphones, mobile in 2013 will be like an evening of boxing. For the main event, heavyweights Apple and Samsung will square off to see which can produce the world’s most popular device.
The Samsung Galaxy III recently dethroned the iPhone for that honor. While Apple went conservative with new features on the iPhone 5, Samsung went bold, equipping the Galaxy S III with an enormous 4.8-inch display, near field communication (NFC) technology (more on this later), a burst-shooting camera and a voice-enabled assistent akin to the iPhone’s Siri.
Apparently, Apple is preparing to counter-punch. There are already rumors that Apple is testing its next iPhone, identified as “iPhone 6.1″ which runs iOS 7.
Behind the iPhone and Galaxy a host of capable contenders are hungry for a shot at the belt, including devices from Motorola, HTC and Nokia.
There might even be some new players in the game. It seems likely that Amazon will debut a Kindle Phone sometime in 2013. There was even talk that Facebook was working on its own smartphone, but CEO and founder Mark Zuckerberg squelched those rumors in September.
What does this all this mean for us? It means better phones. Competition drives innovation. Look for these brands to consistently try to one-up one another with faster processors, better cameras and more innovative features.
That’s not the only battle that will play out in 2013. Another one to watch will be the fight for third place in mobile operating systems. Android is the undisputed number one with nearly 75% global market share. While Apple’s iOS is miles behind Android, it is still firmly entrenched at number two.
In 2013, the top two contenders for third place will be Windows Phone 8 and BlackBerry 10, which is expected to launch in the coming months.
A few dark horses are running in this race for third. Mozilla plans to launch a Firefox OS sometime during 2013. Then, there is Tizen, a Linux-based mobile OS. Samsung recently revealed plans to release Tizen-based devices in 2013.
Both Firefox and Tizen are open source mobile operating systems, but they won’t be the only ones. There are two other open source mobile operating systems to watch going forward. Jolla expects to release smartphones and possibly tablets running its Sailfish OS in 2013; and Ubuntu-based smartphones should hit the market by early 2014.
No NFC Mobile Payment, Yet
Before leaving the house, most will check to make sure they have three things: keys, wallet and cellphone. Well, thanks to NFC technology, cellphones might soon lighten the load by essentially replacing wallets with an “e-wallet.”
It seems like we have been talking about NFC for years now. Basically, it enables two devices to make a very short-range and secure connection through radio technology. If a smartphone is equipped with NFC, as are most newer-model Androids, and if a retailer has an NFC terminal, one could make a purchase by simply tapping the phone on the terminal.
NFC technology also has other applications, such as data transfer between phones, but mobile payments is the feature most often discussed.
Services like Isis and Google Wallet are already in place. They secure one’s payment information within a device.
The reason why mobile payment through NFC has not yet hit the mainstream is that device penetration is not at the point where it has prompted retailers to update their technology. Basically, not enough smartphones have the technology. Androids have started to adapt, but unlike iPhones, Android hardware is not uniform across the various devices.
While the wheels have been in motion for some time, they’re really spinning now that most new Androids, including the Galaxy S III, come with NFC. If Apple releases a new iPhone during 2013, and if Apple decides to include NFC this time around, it will probably tip the scales in favor of rapid adoption of mobile payment.
Even if all that does happen, however, there probably won’t be a new iPhone until later in the year, so odds are you’re not going to see NFC penetrate the mainstream during 2013. Maybe 2014 will finally be the year of NFC.
Flexible Smartphones
Here’s something you never knew you needed — a flexible smartphone. These devices will be lighter, more durable and the screen will be bendable. This feat is possible by making the display out of an organic light-emitting diode (OLED) and shielding it in plastic rather than glass. Samsung is reportedly moving forward with plans to start producing a bendable phone.
Samsung is not the only player in this game, however. Many companies are developing bendable screens. At Nokia World in London in 2011, Nokia showed off a device which not only bends but is controlled by bending. Check it out in the video below.
Since there are quite a few companies working on this, it seems likely that one will try to be first to market in 2013. There are rumors that the next model of Samsung’s Galaxy will feature a bendable HD display. We’ll find out much more about this at the Consumer Electronics Show, scheduled for next week. Stay tuned for updates.
The Future of Smartphone Cameras
Cameras and phones have been married for about a decade (they dated, previously). In that time, the relationship has been constantly improving in terms of specs, which has led to higher-quality photographs.
Nokia upped the ante significantly in 2012 when it released the 808 PureView, a smartphone equipped with a 41-megapixel camera. The iPhone 5 has an eight-megapixel camera. Granted, more megapixels doesn’t necessarily equate to better pictures, but it’s certainly one important element. The gallery below features pictures taken with the 808 PureView.
Nokia 808 PureView
The Nokia 808 PureView comes in several colors. It’s heavier than your average phone, with the camera lens protruding from the back. By far its most interesting feature is the 41-megapixel camera, which takes amazing photos.
Click here to view this gallery.
In 2013, we can not only expect more megapixels, and better sensors, flashlights and shutter speeds from smartphone cameras; there are also some futuristic developments in the works.
One most likely to hit the market in 2013: a sensor developed by Toshiba that will allow users to adjust the area of focus of a shot during post-processing, much like with a Lytro cameras.
Another development to anticipate is greater availability and lower cost for smartphone cameras that shoot 3D photos and video.
While all of these improvements are exciting, it’s not just smartphones that are getting better cameras. Better cameras are literally being turned into smartphones. In 2012, Samsung released a Galaxy Camera which Mashable’s tech editor Pete Pachal described as an “incredible device.”
Connected cameras might not become the norm in 2013, but they will definitely become more common.
Eventually, there could even be cameras that have the ability to penetrate objects such as thin walls, clothing or even skin. While the technology is in place, don’t look for it in 2013. The world probably isn’t ready for x-ray vision quite yet.
Wearable Tech
It’s not enough to carry technology anymore. Nowadays people want to wear it, too.
In April, the Pebble Watch, which integrates with both Android and iOS devices, received Kickstarter funding totaling over $ 10 million from nearly 70,000 backers. Pebble still has not shipped watches. It is currently accepting pre-orders, but has not announced a release date. It’s relatively safe to assume these watches will be available in 2013.
Although there are other smart watches currently available, Pebble may face some serious competition if the rumors about Apple producing a smart watch prove true. In fact, Apple recently received 22 patents that would enable the company to move forward with a range of wearable smart technology, including sneakers, shirts, skiing gear and more.
Patents alone mean very little. So unless you hear otherwise, don’t expect Apple smartpants (which, if they do happen, should definitely be called “smartypants”) anytime during 2013.
And speaking of extremely exciting wearable technology that probably won’t happen during 2013, let’s all re-watch this video for Google Glass while wistfully longing for the future to arrive.
On the bright side, since we survived the Mayan apocalypse, it looks like we might eventually make it to the future, after all. In case you hadn’t noticed, it seems pretty obvious that when we get there, glorious mobile technology will abound.
Images courtesy of Flickr, SETUP Utrecht, John Biehler and via Isis
This story originally published on Mashable here.
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There’s Christmas, there’s New Year’s Eve, and then there’s “every celebrity in the world takes a tropical vacation” week. It really seems that almost every star worth talking about (Jessica! Lea! Julianne!) went on an exotic getaway this week, and we’re jealous — and cold.
But we’re also keeping mental notes on the swimsuits we want to steal for summertime — and these pretty ladies had four of our favorites.
Naomi Watts made a splash while vacationing in St. Barts, choosing a neutral scoop-neck one-piece accessorized with a printed white sarong. Jennifer Aniston opted to show off a few more curves in a black bikini and sheer sarong, a low-key follow-up to her red-hot two-piece from earlier in her visit to Cabo.
Sofia Vergara put her famous assets on display in Miami in a sexy black one-piece and teal skirt that somehow left a lot and very little to the imagination at the same time. And in Hawaii, Ashlee Simpson showed off her fabulous figure in a patterned two-piece that was definitely the most fun of the bunch.
Which bathing suit do you like best? Are you a one-piece or two-piece person? Vote in our poll below, and leave your thoughts in the comments!
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.
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)
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.
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.
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.
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)
