bill. "happening now" starts now. bill: great to have you on, jamie. martha will be in tomorrow morning. jon: this fox news alert. we are awaiting any minute now a news conference from the gop presidential michele bachmann. she won the iowa straw poll but finished a disappointing sixth in the iowa caucuses. fox news confirming that she is about to suspend her presidential campaign. what a turn of events about a very popular woman born in iowa. jenna: as we go down the trail in 2012. we're glad you're with us. jon scott. jon: along with jenna lee. i will introduce you. jenna: here in the fox newsroom. michele bachmann is set to step to the podium any moment now. as jon was talking about what a difference a few months make. she won the iowa straw poll last summer but came in dead

last in the caucuses last night among the candidates competing there. she said on this program she was going to south carolina. she had the media advisory, a couple of events wednesday and thursday but now the news this morning she is going to suspend her campaign, at least for now. jon: you see the podium waiting for the minnesota congresswoman to make this announcement. let's go to the winners in iowa first. mitt romney, rick santorum, ron paul in the top tier. the race very, very tight. just eight votes separating romney and a surging santorum. >> rick did i think a heroic job going across the entire state. devoted his energies to the state of iowa. during the same time period i've been building a national campaign team going to the a bunch of states and of course pulledding a fund-raising organization that will help me down the road and if i'm the nominee. jenna: santorum says it is game on now.

romney set to pick up an endorsement today from john mccain, his challenger in 2008 and the last republican presidential nominee. today santorum weighed in on that news. >> john mccain is a great man. someone who was honor to serve with. he has served this country and sacrificed more than frankly anybody that i have had the privilege to know in any way and so i, i commend governor romney for getting his endorsement. i'm not surprised by it. john is a more moderate member of the republican team. jenna: back to iowa in a moment. we see waiting for the congresswoman. we'll go to d.c. where we find our chief washington correspondent james rosen with more on all of this hi, james. >> reporter: jenna, good morning. iowa is famous for winnowing the field of primary candidates. this year the hawkeye state is running true tomorrow to. one candidate still in the hunt is texas congressman ron paul who finished third.

paul's ground game turned out 4,000 fewer votes than romney and santorum. a surprise to ed rollins who predicted paul would win. gingrich told supporters he is marching on to new hampshire and he again contrasted himself, quote, reagan conservative with mitt romney, a quote, the massachusetts moderate. in his remarks last night however rick perry suggested he may pack it in. just hours after his campaign had begun purchasing tv time in south carolina. >> with the voters decision tonight in iowa, i decided to return to texas, assess the results of tonight's caucus, determine whether there is a path forward for myself in this race. >> reporter: jon huntsman forfeited iowa although he still collected 745 votes there and placing all his chips on new hampshire, the first primary contest next

tuesday. campaigning in peter borrow, the former utah governor was asked when he would say to the winner in iowa. welcome to new hampshire. nobody cares. how he would differentiate himself from governor romney. i could get elected and he hasn't been quote, on three sides of all issues. bottom line if you've grown addicted to the information overload and intramural sniping of this 2012 cycle, stay tuned, more fat feasts await. jon and jenna. jenna: no one puts quite like you, james. we're thankful. james rosen in d.c. more from james throughout the next couple months on this campaign. we're ready for it. jon: well, it is a bittersweet day for the supporters of michele bachmann. maybe more better than really any sweet at all. maybe that is just not the right term to use. we are expecting her to step up in that podium in des moines any moment now and announce she is suspending her campaign after she told us yesterday she had her

tickets booked for south carolina and would continue to fight on. let's talk more about the results from the iowa caucuses. david drucker joins us. he is a staff writer for "roll call." a lot of people wonder why not soldier on if you're michele bachmann. you have a couple of debates coming up this weekend, some opportunity for free television exposure. wouldn't really cost that much to continue on in the race and maybe pick up some support. is that unrealistic, david? >> i think it was. coming out of the iowa caucuses she was supposed to have her best chance propelling herself into the race. don't forget she won the straw poll back in august. it was clear she wasn't well-received by the voters. they just weren't interested. if you want to soldier on you need money. she doesn't have any. she will have to go deep into debt. heading into new hampshire she was clearly not going to go because she wasn't going to pick up any support, going to south carolina would not do her any good because they're greatly influenced by success and performance in iowa and new

hampshire. south carolinaians want to elect somebody that can actually win the general election. michele bachmann hasn't proven she can do any of that. her and her team understand the position she is in. that is why she is poised to drop out. jon: our steve brown is telling us now it is expected to be 10 minutes before she takes to the podium. she is running 15 minutes behind schedule. she was a favorite of the tea party movement, david. does this suggest that the tea party influence is on the decline? >> no. i think there were a lot of candidates in the race that were able to grab the tea party mantle. just after michele bachmann won that straw poll, governor perry got into the race. he has been a favorite of the tea party since the inception of the movement and he was able to grab that from her. basically with conservatives and tea party activists and people not interested in mitt romney have been doing going from candidate to candidate. they loved michele bachmann. they weren't sure she could be president. they had somebody in

governor perry here is a guy we like and could be president. he faltered. said things that rubbed them the wrong way. they went to herman cain. he fall erred. and they have moved on to rick santorum. this is just a process. you can't lose early states and stay in simply because there are more primaries to come. you need to show support. you need to raise money. you need to show you can win. that's why these early contests are crucial. jon: talk about the winners, rick santorum among them, whether he came in eight votes behind mitt romney or not, effect tiffly tied for first place. that is the pretty stunning achievement, isn't it? >> he did a great job. nobody gave hem a chance to do anything myself included. we'll have to see rick santorum going forward can he take a punch. his surge, he should get all the credit for the hard campaign. he clearly connected with iowa voters. he was able to do so without anybody paying attention to him. without his competitors trying to tear him down. rick perry tried to do a

little over the last few days of the campaign but nobody really went after him. the question, can he take a punch? a lot of the other candidates haven't been able to. will his message transfer in new hampshire and florida and son other states. it will translate into south carolina. he would have a do well next week to avoid everybody saying the iowa victory was a one-hit wonder. jon: interesting the sound, mitt romney. he congratulated. stayed positive about santorum but you said he has been working state really hard and i've been focusing building a national organization. that is kind of a backhanded compliment you might say. david drucker from "roll call." thank you. >> anytime. thank you. jenna: we'll look for more backhanded compliments. jon: there will be more down the way. jenna: we'll have a tea party panel coming up about where they see themselves in this campaign. is it newt gingrich? is that where they're going next or rick santorum? speaking of newt gingrich.

he is reacting the results of iowa caucuses. praising one of his opponents but many explanationing several others. rick folbaum has more on this part of the race. >> hi, jenna. the former speaker urged all the fellow candidates to follow ronald reagan's rule not attacking a fellow republican that. was when he was leading in the polls. now he is near the bottom of the pack the gloves are off. yesterday newt gingrich calling mitt romney a liar. then last night after placing fourth in iowa he announced he would continue to slam the former massachusetts governor. he says there is one key question. >> whether this party wants a reagan conservative who helped change washington in the 1980s as ronald reagan and helped change washington in 1990s as speaker of the "house." somebody who into changing washington. whether we want a massachusetts moderate will be good ad managing the decay but given no evidence of his years at

massachusetts any ability to change the culture or change the political structure or change the government. >> don't call him nasty. gingrich says he is telling the truth. >> it sound negative that is because romney's record is negative. who benefits most if gingrich goes after romney in print and television ads? rick santorum, last night's second quarter place finisher who came close to winning the thing. gingrich was glowing in talking about his rival from pennsylvania. >> rick santorum, he waged a great, positive campaign. [applause] i served with rick. we've had a great relationship over the years. and i admire the courage, the discipline, the way he focused and i also admire howe positive it was. i wish i could say that for all the candidates. >> as for ron paul, gingrich said his foreign policies ideas are dangerous for the u.s.. mitt romney, might want to brace himself as the former

speaker gears up to save his campaign no matter how he has to do it. jenna. jenna: will be interesting to watch. rick, thank you very much. we're awaiting congresswoman bachmann in iowa. i saw someone step to the podium to give us the two minute warning. we give cover her at any moment. everyone tries to stretch a buck and some campaigns are doing a better job than others. we saw this in the "washington post" today. texas governor rick perry spending the most in iowa, about $4.5 million on media. divide that number, divide that by the number of votes he got and it comes to $364 each. that is the jon scott vote, right? $364. jon: i couldn't afford that. jenna: next up, mitt romney, the former governor of mass as -- massachusetts. won iowa eight votes. each vote costing him $49. rick santorum though got the

best value by far. according to what we're looking at here, the former senator of pennsylvania coming in second place, spending just over $21,000 in iowa. winning over 29000 votes. that means each vote he got cost him 73 cents. jon: how many pair of shoes did he go through visiting all 9 counties in that state? jenna: sweater vests. that is his trademark. jon: he is little engine that could. he is plugging away in iowa a long time. last night it paid off for him. we're continuing to watch for michele bachmann. when she speaks we'll take you back there live to des moines. right now president obama is taking his economic message and a controversial appointment to ohio. that critical swing state is one that he won in 2008. he's expected to speak there this afternoon and he will challenge his republican rivals on the economy in this his first presidential trip of the new year. ed henry, live at the white house with more on what the president is up to today. ed?

>> reporter: good to see you, jon. yes, this is the most aggressive of aspect we can't wait campaign we've seen from the president, basically using his executive authority to use a recess appointment while congress is out right now in order to get richard cordray in as a new consumer protection chief. why this is so controversial among republicans is that this is an outgrowth, this consumer protection office of the controversial dodd-frank wall street reform bill. republicans need to there needs to be more accountability to this new office before somebody is appointed and installed there. they think this office could end up issuing all kinds of regulations that will choke off businesses. the white house view is they have the authority to move forward here. republicans were blocking the president's nomination and they want to make sure consumers have new protections in place in this tough economy. all of this in the backdrop of enabling the president to portray himself, continue to do as we've seen before as a warrior for the middle class. he is doing it today in ohio,

traveling aboard air force one with richard cordray. cordray is the former attorney general in ohio. last night while all you will iowa caucuses were playing out, the drama on the republican side, the president was here in washington with a live webcast with iowa democrats who were caucusing for him. his message he is not waiting around for congress. he wants more time in office to get more done. take a listen. >> the main message we're going to have in 2012, that we've done a lot but we have a lot more to do and that's why we need another four years to get it all done. >> reporter: interesting because in early 2009 you remember the president told nbc's mat lawyer if he didn't get it turned around in three years, this would in his words, a one-term proposition. he is trying to buy a second term. the eventual republican nominee likely to make the case the president had his time in office. the country not better after off after four years. they will make that case.

the president pushing back saying he is put things on the right track and needs more time, jon. jon: more on the controversial cordray appointment. ed henry at the white house, thank you. >> reporter: good to see you. jenna: we're awaiting michele bachmann. fox news confirming she will suspend her campaign. that is the microphone. we're waiting for her at. again it has been about six months of, just six months ago when she announced her campaign for president. when she steps to the microphone we'll bring you back to iowa. we'll be right back with more. great guest experience. that makes my day.

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jon: sometimes it is said that iowa is less about who wins than about who doesn't win and one of those who did not win, congresswoman michele bachmann from minnesota, she is originally from iowa. had sort of staked her campaign on a strong finish in the iowa caucuses. she did not get that strong finish and now fox news has confirmed she will suspend her campaign as soon as she steps up to the microphone there in des moines we'll bring you back there to hear her words. one of the questions going forward is, will the congresswoman endorse another competitor? we have yet to see what she has to say. we'll take you there live when she speaks. jenna: you never know what phone calls are happening now behind the scenes. meantime we have new concerns about mounting tensions in the middle east between our country and iran. reports are just in a top iranian naval commander announcing plans to expand

naval war drills next year. this is after the con chrigs of the war games in the strait of hormuz the last week and a half ago. that strait is a major gateway for the major portion of the oil shipments. acceleration of the country's nuclear program in iran and this is all happening as the president signed a bill over the weekend imposing potentially crippling new sanctions on iran's central bank. where is this going? that's one of the big questions for 2012. joining us former u.n. am bass u.n., john bolton. also a fox news contributor. happy new year, ambassador. >> happen nee year to you. jenna: what do you see as far as the our relationship with iran? >> this could be a critical year. secretary panetta said last month that iran could be a year away from getting a nuclear weapon. that may be optimistic.

i think that is very much on the minds of the regime in tehran. jenna: what is the tippingpoint do you think that you're looking for? >> well, i think israel has got to make a decision very, very shortly whether they're going to use military force preemptively against that nuclear weapons program because if they don't, the odds on outcome is that in a very short period of time iran will have nuclear weapons. so if you don't like the kind of threats you're hearing now, imagine how much more profoundly dangerous they could be once iran gets nuclear weapons? jenna: a scary thought. a scary thought for all of us to think about as we head into a brand new year but why israel? isn't the nuclear ambitions and nuclear projects happening in iran enough for us to get involved militarily? isn't that enough for a preemptive strike on our own behalf? >> absolutely. this is not a israel problem. this is really a global problem since iran's propensity to aid terrorism financially through weapons around the world makes it

one of the most important state sponsors of terrorism but i think the odds are under president obama the chances of a u.s. military strike against iran are about as close to absolute zero as you can imagine. that's why the spotlight is on israel. the administration seems to think economic sanctions will work. they haven't worked for the last 10 years. even these new sanctions, no indication they will work either. jenna: keeping an eye on iowa we're also talking about a major international issue. we're watching for congresswoman bachmann. i know in the past whether officially or unofficially you were working with rick perry, is that right, ambassador bolton? >> i haven't endorsed anybody as a fox news contributor but i've been speaking to a lot of the candidates about foreign policy and i'm happy to do that. jenna: if you will stand by with just for a moment here as we see the congresswoman come in. we'd like to hear your thoughts who you think potentially the next republican presidential nominee has the best international policy. let's go in and take a listen here in iowa.

>> michele bachmann. >> thank you, brad. thank you so much. thank you everyone for being here. i appreciate it. my name is michele bachmann. entrusted to every american is the responsibility to watch over our republic. you can look back from the time of the pilgrims, to the time of william penn. to the time of our founding fathers. all we have to do is look around because very clearly we are encompassed about with a great cloud of witnesses that bear witness to the sacrifices, that were made to establish the united states and the precious principles of freedom that make it the greatest force for good that has ever been seen on the planet. every generation has served as the next stepping stone down the path of our liberty, and every day i'm reminded of that conviction that we have to the principles of freedom and justice by a painting. it is a painting that hangs in the united states capitol. it was made by howard

chandler at the signing of the constitution of the united states. it hangs in the east graham stairway of the united states capitol. every schoolchild is familiar with this painting but i've been privileged to see it on regular basis doing my duties in congress. never with the painting's poignant reminder more evident on the evening of march 21st, 2010. that was the evening that obamacare was passed and staring out from the painting are the faces of the founders and in particular the face of ben franklin, who served as a constant reminder of the fragile republic that he and the founders gave to us. that day served as the inspiration for my run for the presidency of the united states because i believed firmly that what the congress had done and what president obama had done in passing obamacare endangered the very survival of the united states of america,

our republic because i knew that it was my obligation to insure that president obama's program of socialized medicine was stopped before it became fully implemented. and so my message has been for the necessity of the complete repeal of obamacare in this once in a lifetime campaign cycle for the presidency because obamacare represents the largest expansion of entitlement spending in our country's history and it is now become the playground of left-wing social engineering where the right will always lose every battle and the left already has been given the formula for passing their agenda. it must be stopped. and its repeal is more than just a cliche for me. it is essential to my core of conviction because obamacare violates our fundamental liberties as americans including for the first time in the history of our country taxpayer-funded

abortion. deeply troubled by the state of our country i ran for the presidency foremost as an american citizen who believes in the foundation and the greatness of our american principles. and our principles derive their meaning from the founders beliefs which were rooted in immutable truth of the holy scripture, the bible. while a congresswoman by title, a politician i never have been nor will i ever hope to be because i am not motivated in this quest by vain glory or the promise of political power. i have served one singular purpose in washington, d.c., to lead an effort that was begun by the people of this country. i ran as the next stepping stone of passing on and protecting that torch of liberty and that duty required taking on the charge of repealing both obamacare and dodd-frank, which mandated insuring the election of 13 additional republican senators to

guaranty that legislation's demise. these words are a warning. the implementation of obamacare will represent a turning point for our country and our economy and i worried what a future painting in christie's vein might depict should obamacare be ultimately placed into effect. will future generations asked of us gathered here today, what did we do, what did we give, what did we sacrifice to insure the survival of this incomparable republic? i ran because i realized 2012, is our last chance and our only chance to repeal obamacare and dodd-frank, and i knew how to get rid of both of them. and i ran not only for me but i also ran to elect 13 more republican united states senators who would help me to repeal that legislation. i ran because i believed that since day one barack

obama's policies based on socialism, are destructive to the very foundation of the republic and i ran because i wanted my children and all of the children of this country to live free and have even better opportunities than our parents gave to us. and i ran to secure the promise of our children's future. so i decided to stand up, stand up and fight for our freedom and stand up for the survival of the nation and i will continue fighting to defeat the president's agenda of socialism. i will continue to fight for you, for more liberty and less government. to stop the overspending in washington. to keep our country free, safe and sovereign and to fight against crony capitalism. fight to end excessive government regulation and a tax code that is absolutely unfair and is killing american competitiveness. i will fight to legalize american energy production. i will fight for american families. i will fight to protect live

from conception until natural death. to protect traditional marriage and i will fight to secure our borders and i will fight to protect religious liberty. i will fight for this country and for the american people every day in the way that god allows me to. so i came here to this wonderful state of iowa where i was born and raised and that i have come to trust and love. i had just one message to tell you, that i mean what i say and i say what i mean and i told you the truth, that our country is in very serious trouble, and that this might be the last election to turn the nation around before we go down the road to socialism, to a burden of debt too heavy for our children to bear. and i didn't tell you what the polls said that you wanted to hear. i didn't tell you what i knew to be false. i didn't try to spin you. i listened to the people of iowa and all across america and they agree that president obama and his

socialist policies must be stopped. and i sought the nomination of the party of reagan, the party of lincoln, that believes in the strength and goodness of the american people and that america is an does remain the greatest force for good that the world has ever known because we don't believe that government has the answers. the people do. the government should respect the rights and opportunities of the people to whom we are accountable because we believe that government should do its job, enumerated by the constitution, not our job. it should do it without spending more than what it takes in. and so last night the people of iowa spoke with a very clear voice. and so i have decided to stand aside and i believe that if we are going to repeal obamacare, turn our country around and take back our country, we must do so united. and i believe that we must rally around the person that our country and our party

and our people select to be that standard-bearer. but make no mistake, i'll continue to be a strong voice. i'll continue to stand and fight for the country and for the american people and for our freedom because mr. franklin and all the founders, all the men, all the women, who have given their last full measure of devotion and our military, our veterans, are watching us. they're expecting us to stand up and protect what they have fought to give us. and so we owe it to them and to our posterity and to the god that we serve who created us, who gave us life and our very being, to keep our republic free. and i will be forever grateful to this state and to its people for launching us on this path with our victory in the iowa straw poll. while i will not be continuing in this race for the presidency, my faith in the lord god almighty, this

country, and our republic is unshakeable. and as i have traveled around this state and the country i have seen the very best in the country and our people and i will always believe in the greatness of them and in the greatness of the god that i serve. of course i'm deeply grateful to our entire campaign team here in iowa, in south carolina and everywhere. i have no regrets, none whatsoever. we never compromised our principles and we can leave this race knowing that we ran it with it most integrity. we made a very important contribution to this race. and so i sincerely thank my wonderful husband of 33 years, marcus, bachmann, my entire family, our family, lucas, harrison, caroline, sophia, my mother jean. stepfather ray. my beloved brothers here. gary, paul and scott, and my brother david and george. i'm grateful to them and our 23 foster children. they along with the lord's

provision and incomparable faithfulness have been my strength throughout the campaign. i look forward to the next chapter in god's plan. he has one for each of us if we will only cooperate with him. he has always something greater around the corner, far beyond what any of us thought or imagined. i've been blessed to live a wonderful life. i'm grateful to have been a part of this presidential campaign. so i thank you, i say god bless you and god bless the united states of america. [applause] jon: well, after a little more than a year of pondering it and a little more than six months of active campaigning, and official candidacy, michele bachmann there, announcing that she is sus penning her campaign for president -- suspending. one of the darlings of the tea party movement, one of the darlings of social and fiscal conservatives but she just couldn't generate enough heat to finish really

in more than last place in iowa. so with that she announces that she is ending her campaign. interestingly, jenna just pointed out, rick perry, the texas governor, who has announced well, he is going to go back to texas and sort of rethink things, sent out message via twitter short time ago, it is on to south carolina. it appears the texas governor who has quite a substantial bank account will continue to fight on and perhaps will continue to compete as this campaign season goes forward. jenna: we'll continue to watch for that. bringing you picture by the way of governor perry put out on twitter of him running saying that the next leg of the marathon is on. we'll bring that to you. we'll try to confirm it as well. you have to double source everything these days. fox news alert. we're awaiting major announcement concerning republican presidential candidate mitt romney. kicking off the final town hall in new hampshire.

sources close do john mccain confirming to fox news the arizona senator will endorse romney at that event. meantime, many of the remaining candidates crisscrossing the granite state today, holding campaign events and making their cases with voters. molly line is live at the romney town hall in manchester with more on all of this. hi, molly. >> reporter: that's right, jenna, we're here at central high school. this is where mitt romney will make his first appearance after winning that big caucus in iowa. it will be a chance for him to answer voters questions in these final hours before they head to the polls. as you know voters here in new hampshire can ask pretty tough questions. you mentioned big news that came out of this town hall today which is an endorsement from senator john mccain. won here in 2008. ultimately went on to become the republican nominee that year. if he makes the announcement, rompilla any said this would be big. look what romney said on "fox and friends" this

morning. >> i'm pretty pleased that looks to be the case. john mccain is beloved in many parts of the country. particularly in new hampshire. folks call him mr. new hampshire. if in fact he makes announcement today that would be big for me in a state he knows very, very well. >> reporter: we're waiting to see how that develops today. newt gingrich a little bit fiery today. he actually put out a full-page ad of the union leader, a paper of note here in new hampshire, the paper that endorsed him earlier in the campaign process calling mitt romney a massachusetts moderate. how that will play among massachusetts voters already familiar with mitt romney. he was of course the governor of the next door neighbor state of massachusetts. santorum on the ground talking to his supporters. he is coming off the big victory he had in iowa. this is a chance for conservative voters, social conservatives here in new hampshire which he has spent a lot of time courting, speaking of someone spent a lot of time doing retail politicking in this state where it really matters, santorum is one of those

candidates. the all eyes will be on him. he will be the one facing some tough questions in this next week ahead before people head to the polls. as for jon huntsman. he never went to iowa. he decided to focus here in new hampshire. all his eggs one could say here in the granite state. he is hoping for his big showing. he wants the santorum moment to establish him as he moves forward in the race. this is definitely the place to be. this is where all the political eyes are pointed as we look at republican white house hopefuls. jenna. jenna: we'll watch as well. molly, thank you. jon: for more on this joining us on the phone, senior reporter for the nashua telegraph newspaper. kevin, the wide expectation that mitt romney will come in first in new hampshire. he has got the best ground game. he has got --, well he was governor of a neighboring state. he is ahead in the all the polls. what is rick san francisco's number to finish, essentially a tie, what does that do to all of

mitt romney's planning? anything? >> a lot of mitt romney support is soft here. he is very popular. he spent the better part of five years like he did in iowa campaigning here. he has got the summer vacation home here. a summer remembers dent of new hampshire. and he has that certainly going for him but rick santorum gets a lot of momentum last night and gives a lot of new looks in new hampshire. he's got, he's got a ground game. it is not mitt romney's ground game but he spent the third most amount of time in new hampshire behind only john huntsman an mitt rompilla. he has a seasoned strategist running his campaign, who helped engineer pat buchanan's shocking win in new hampshire over bob dole in '96 after bob dole won iowa with only 26% of the vote. can santorum duplicate that in six days? i don't believe so. but he can establish himself as the alternative here i think he is getting a lot of

help from newt gingrich. jon: new hampshire voters often like to sort of turn their backs on whatever iowa decides. so if iowa has just decided that mitt romney is number one, albeit by a hair's breath, new hampshire voters may want to take a look whoever came in second or maybe third place. >> yeah, i think they do and they have a history of doing that certainly they did that in 2008 when john mccain finished fourth there. and they picked him and in 2000, john mccain finished sixth in iowa and then, won new hampshire three weeks later. so we have a long history of being skeptical, not cynical, about iowa's choices. and understanding that as mitt romney's chairman on the ground in new hampshire john sununu likes to say, iowa picks corn, new hampshire picks presidents. jon: kevin is the senior political reporter for the nashua telegraph says rick

santorum has some room to grow there in the numbers in new hampshire. it will be an interesting race all the way through. thank you. jenna: iowa picks corn, new hampshire picks presidents according to those in new hampshire. meantime are they playing a key role in the 2012 election or aren't they? we're talking about the tea party. up next the event they're gathering for and what we can expect from the movement as we head closer to november? [shouting] are you receiving a payout from a legal settlement or annuity over 10 or even 20 years? call imperial structured settlements. the experts at imperial can convert your long-term payout into a lump sum of cash today.

jenna: this major fox news alert just breaking this hour. we told you about it. we saw a tweet on twitter from governor rick perry. let's go ahead. we want to show it to you. came out around 11:15 or some he says after going back to texas after iowa not placing in top three he was going back to texas to think about things. we get this tweet the next leg of the marathon is the palmetto state. here we come, south carolina! he shows this photo. jon: new hampshire is not in the mix. he is talking about south carolina. jenna: bring up the photo. running, will continue the marathon. i guess he is in texas looking a little cold there. texas all suited up. many said, listen, he is going back to texas he is out of the race. if we can confirm this tweet, maybe he is still in? jon: famously on one of his jogs in texas pulled a pistol out of his pocket or

holster or something and gunned down a coyote that was bothering him. so, anyway, the governor will run on, or so it would seem. some developing stories we're keeping an eye on here in the newsroom and our control room, new reports on the mental health of the man who confessed to the norway massacre over the summer. three psychologists and a psychiatrist says he is not psychotic contradicting the court appointed mental evaluation that found him legally insane. president of afghanistan welcoming a possible deal that would allow the taliban to open an office in nearby qatar. hamid karzai said it could lead to the end of the bloody conflict in his country. alec baldwin feeling effects of his tirade. the weed man food markets pulling plug on spots featuring the actor. they made the decision after customers complains about

baldwin's airline antics. jenna: from that to this. the tea party dominated the midterm elections in 2010. they're playing a key role this time as well. what that role is exactly. we want to talk more about that. even though so far officially as a movement gotten behind one candidate we're learning a coalition of tea party groups will hold a tea party convention on the 15th in south carolina. obviously, a very, very important state. matt kibbee is ceo of freedomworks. david webb, host of the david webb show. both are faces of this movement that is still key. this is a movement. not an official party. the question becomes then do you see yourselves and republican candidates do you sigh yourselves there behind one or a few that you could really get behind and support? david, what do you think about that? >> well, i think the role of the tea party needs to remain what it is, that outside entity, one is a watchdog, two, focuses on the issues of limited, effective and constitutional government, and what i don't

wan to do, jenna, is and would not like to see is the tea party get in the business of picking horses. we have supposed to be focused on the fiscal issues, on the constitution gnat of government, unconstitutionality of obamacare being one of the key points. to go beyond that makes us an institution that becomes the tool of a party and we never get anywhere because for decades there have been too many failures in america on both sides of the aisle. it is time that we the american people had solutions not just descriptions. jenna: matt, let's talk a little bit more about what david said, to stay anti-establishment, i'm putting words in your mouth, david, i don't mean to, talk about being anti-establishment you still want to affect the establishment in some way, matt. how do you go about staying the movement, if you agree with david, and really have a major effect in this election in november? >> it is really about a set of ideas that define the tea party.

it is not a political party as david pointed out it is and was in 2010 a very important get-out-the-vote machine. if you look at results in iowa, 2/3 of caucus gors very closely identified with tea party values. all of the republican candidates to a greater other lesser extent are talking the talk. i think the results in iowa suggest that the tea party hasn't found its candidate yet. they're looking for someone ought thening it i can -- authentic on those issues and can defeat president barack obama. jenna: why do you think the tea party has not found its candidate? >> we're still in transition. we are fighting the good ol' party establishment who think it is good enough to nominate people like john mccain that is not good enough for tea partiers. this will be a very drawn out process. politics is more decentralized today. the tea party movement is the best representation of that decentralization. we'll have an impact all the

way to the convention. jenna: david, do you agree the tea party hasn't found its person yet? >> i do agree. it goes back to what matt talks about with the principles, jenna. the politics needs to be at local level which is something the tea party is also focused on, the state levels and all the other entities, not justed federal level. on top of that, when it comes to the principles, it is not about the even matt or myself. the tea party is about leadership. it is about principles. it is about good american free market enterprise values that have been successful in this country. it is about stopping the growth of big government. jenna: sure but you can agree -- >> those are bigger than just the party. jenna: david, dorpt you want those principles to have results, real tangible results in government? >> well they do and what we have to do as a movement we both have to work with those in the structure and we have to work as an outside force to keep them on track. it's a two-front battle in that respect. there are many facets to

this. that's why we can't be limited. education is important. activation, get-out-the-vote. but more to get the american people back on the principles that have been successful as a country. jenna: matt, quick final thought from you here. i was taking a look back at articles from last year at the same time and the obviously huge tea party movement and push in those elections in 2010 and 2011 with a huge new year for the republicans, matt. if you take a look at this year ahead and also what we've seen over the past year, what do you think is key to keeping the tea party develop rant -- relevant as we get closer to november? >> i think it is become more focused at local level. we don't do these big marches anymore. that would be a bad strategy given who we are today. it has to be at the local level. watch the senate. the tea party is playing in these senate races and they will have a huge impact there. jenna: we'll look for that. david and matt, nice to have both of you back. >> happy new year, jenna. jenna: thank you, jon?

jon: david has the voice thing going on. jenna: he is radio guy. jon: megyn kelly and other people having trouble with their voices. >> they both sounded great. jon: if you're stepping outside today, dade, you will want to, i don't know cover up with a scarf or something. the east coast is in a deep freeze but we could see a dramatic change. janice dean is here with what to expect next. also kim kardashian part of a new ad campaign and she is not being paid for it. in fact she has not given her permission. this one not for perfume or makeup or designer clothes, but for taxes. ♪ . jon: this new political ad is urging the california tax collectors to come to the reality tv star's door or maybe her designer purse and

wallet. that is next. ♪ .

jon: oh, baby, it is cold outside. a blast of arctic air sweeps the east coast and it is reaching way down south into the sunshine state. strawberry growers are taking every precaution. temperatures in central florida dipping below freezing this morning. in arcadia, the citrus farmers are working to protect their crops from the bitter cold. their biggest weapon is actually water. they spray it on their crops allowing it to freeze that protects the fruit until the temperatures can reach up above freezing.

meteorologist janice dean live in the extreme weather center but she doesn't have her boots and her gloves on. >> i did earlier this morning. it is very balmy here in the fox weather studio. the temperatures on the rebound, jon scott. it was 18 in tallahassee. temperatures across new england and the northeast certainly dealing with windchills below freezing, certainly feeling like single digits in some cases. minus 5 in caribou. 22 in minneapolis. the good news we have a rebound coming. east coast is only area dealing with below average temperatures. in the midwest and central plains, 20 degrees above average this time of the year. as we head into the weekend, jon scott, much of the country feeling warmer than average temperatures. a quick shot of cold air. all the complainers out there need to stop complaining. jon: we haven't had it so bad. >> folks in alaska are going, wimps. jon: yes, they are. janice dean, thank you. jenna: it is a tax attack on

kim kardashian. she is the focus of an online ad out in california from the courage campaign targeting her and urging voters to support an initiative to raise taxes on wealthy people like her. joining us live in fox business network is adam shapiro. adam, what is going on here? >> reporter: well, kardashian has not publicly commented or supported this. the courage campaign is trying to raise taxes in california and using kim kardashian someone who is wealthy whether they have talent or not pays income tax in california and someone who is middle class. hear is the beginning of the ad, jenna. >> being on tv changed my life because -- [inaudible] ♪ . >> reporter: okay. so kim kardashian made $12 million last year. being on tv she got a lot of

free stuff. you and i work on tv. let me show you free stuff we kind of get. got the free sticky pad from merk funds. jenna: we're not allowed to accept free stuff. >> she works on 18th store. she is not on tv. got smoked salmon. girl a deli chocolate, cheese. i'm saying. as far as miss kardashian, you should know rasmussen did a poll. 76 americans believe the tax she is paying, 10% state income tax is fair or high. what they would like to see taxes dropped and people like kim kardashian who make home movies, like to see them drop too. jenna. jenna: we'll see if the ad is effective. adam shapiro with fox business. adam, thank you. jon: fox news alert for you now. there has been a shooting reported in texas. rick folbaum is the at breaking news desk. we'll have more on that just ahead. this new at&t 4g lte is fast.

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this means that when you get in or out of bed, you won't disturb your partner. that's amazing. that's amazing. tempur-pedic, the most highly recommended bed in america. call the number on your screen. jenna: fox news alert a middle school lockdown in texas. rick you have more information on where this happened and what is going on there. >> reporter: that's right jen a. i have a call into the brownsville police department. this shooting took place on school grounds at the cummings middle school which is right on the u.s.-mexico border.

a boy bran di brandishing a weapon. they tried to get him to drop his weapon, he refused. they shot him. investigators are searching the school grounds. we are told the students was taken to a local hospital and was in critical condition, but he has in fact died. no word on a motive, what his plans were, as we learn more we'll let you know. jenna: we'll continue to watch it. thank you, rick. jon: a divided republican field moves onto new hampshire now after voters in iowa sort of split their support and also winnowed the field a little bit. good morning i'm jon scott. jenna: i'm jenna lee. three rivals are leaving the pack, mitt romney, rick santorum and paul r- ron paul taking the

top spots in iowa. as we've seen for iowa voters it was a tough decision. john roberts live in des moines with more on this. a lot of conversation on this today about how big exactly this boost was for romney with such a narrow victory. >> reporter: it's really difficult to know at this point, but his numbers are such in new hampshire that it probably doesn't matter a whole lot. governor romney is on the ground in new hampshire east launches phase two of this primary campaign, coming out of iowa with that slim eight-vote margin. easy head by more than 20 points in the granite state. if he spent a little more time, met a few more people, didn't need to spend more money because he spent a lot of it might he have increased his budget over 25% and given himself a better launching pad to get into this presidential nominating year. mitt romney in terms of what

he's going to be hitting on, as far as themes go it seems to be more president obama in his sights than any of his challengers. these what he was doing in the last week here in iowa and that's what he did last night when he spoke to his supporters. >> he's on track to put almost as much public debt in place as all the prior presidents combined. this has been a failed presidency. i'm absolutely convinced if we want to get jobs again in this country it will be helpful to have a personal who has had a job in the private sector to create jobs in the private sector. >> reporter: romney might have won last night but not a consensus candidate by any stretch of the imagin imagination. it's not so important as a state in new hampshire or florida but it could be very important in south carolina where a lot of people are saying rick santorum could mount an effective challenge against romney, jenna. jenna: what is next for rick santorum? he's picked up momentum as he

goes towards the other states what should we be watching for? >> reporter: he has a bit after challenge ahead of him, jenna. he has to put together a campaign. he came in here to iowa, he only spent a few thousand dollars, or tens of thousands of dollars. he was basically broke. he did it all on shoe leather but he asked to be a very, very compelling candidate. it is possible here in the hawk-eye state, it may not be so possible in a state like south carolina, and certainly florida is a huge hurdle. but he does have a compelling story, and it was so interesting last night to see him literally over the moon about the results as he gave his address to his supporters, saying that he really did this on just a commitment to meet with voters, and solid conservative values. here he is from last night. >> what wins? what wins in america are bold ideas, sharp contrasts, and a plan that includes everyone, a plan that includes people from all across the economic spectrum, a plan that says, we

will work together to get america to work. [applause] >> reporter: it was a message that played very well in iowa. he's facing a lot of stiff head winds in new hampshire. two open questions how much blood will newt gingrich try to get out of mitt romney now that he has decided to take off the gloves. if rick perry does decide to hang up his campaign how many supporters will go to sapbt tore yum's side. jenna: he was tweeting earlier and it showed him running to south carolina, i guess that's where he's headed. >> reporter: there are people inside the campaign though who are saying they are not quite sure what that tweet is all about. they don't know if it's a miss fire or he actually meant to send it out. jenna: we are curious. you never know with tweurt. a lot of mistakes have been made. >> reporter: just ask anthony weiner. jenna: i try not to say it, jon, but i'm glad that you did.

john roberts in iowa. we'll work to confirm the perry news, and onwards with more news on the campaign today, john, thank you and jon to you now with this fox news alert. jon: it's a long jog from texas to south carolina. fox news alert for you now, the republican presidential field just got smaller. minnesota congresswoman michelle bachmann calling it quits after a disappointing showing in last night's iowa caucuses, the state where she was born. bachmann finished in 6th place, only a few months ago she was the winner of the iowa straw poll. here is more from the congresswoman. >> last night the people of iowa spoke with a very clear voice, and so i have decided to stand aside. and i believe that if we are going to repeal obamacare, turn our country around and take become our country we must do so united. and i believe we must rally around the person that our country, and our party, and our people select to be that

standard bearer. but make no mistake, i'll continue to be a strong voice. i'll continue to stand and fight for the country and for the american people, and for our freedom, because mr. franklin, and all the founders, all the men, all the women who have given their last full measure of devotion in our military, our veterans, are watching us. they are expecting us to stand up and protect what they've fought to give us. and so we owe it to them, and to our possibl posterity, and the god that we serve who created us who gave us life and our very being to keep our republic free. jon: after 205 days on the campaign trail in iowa michelle bachmann is out of the race. her departure is sure to shake things up especially among those fighting for the conservative vote. i guess the question, jenna is where do michelle bachmann

supporters and she had about 5% support last night, where do the supporters go. jenna: david drucker was talking to you last hour and he says he's seen this hopscotching for lack of a better term for different candidates for the tea party. he said rick perry was the darling of the tea party at the beginning of this case. if rick perry is in or not will really be a determining factor, again, according to this conversation of where those votes will go. will they go all to rick santorum or if perry is still in will that also dyed the support. jon divide support. jon: people are going to take a look at the frontrunners. charlie hurt is a columnist for the washington times. let me ask you that question. does rick santorum automatically get the votes that the voters who had supported michelle bachmann last night? >> i think that if one thing is for certain in all this. nothing is for certain. but i do think that it is very

good news for rick santorum. any one of the people that either drops out, you know, affirmatively, or basically sends a signal that their campaign is hopeless i think is very good news for rick santorum because this whole race has been sort of the mitt versus the anti-mitt. any of those people that leave from michelle bachmann, or rick perry or even newt gingrich i think they are probably far more likely to coalesce around rick santorum certainly than mitt romney. jon: you wrote an interesting column suggesting that you really can't get more anti-mitt than rick santorum. >> you really can't. rick santorum has always sort of been this kind of unusual politician. he's kind of prickly, he's not a glad-hander. the truth of the matter is he's a social and fiscal conservative who has done very well in a state, in pennsylvania, which is a state that a democrat must win

in order to win the white house. rick santorum has won two state-wide elections in pennsylvania. you know, he is an unusual sort of candidate. it's sort of hard to imagine him running a national campaign and appealing to the kind of broad set of voters that he needs to, but, you know, he is the one guy who has proved that he can bring home a tough state like pennsylvania. jon: he worked hard in iowa and obviously it worked well for him. you say that for mitt romney there is sort of a good news-bad news scenario going forward. he over performed in iowa, but things could be about to get a lot rougher for him. >> yeah, he did an exceptional job of sort of lowering expectations for out here in iowa all the while sort of building a very impressive ground operation and so he wound up over performing in that respect. the problem is going into new hampshire, you know, those expectations couldn't be any

higher for him, and so there is a very strong likelihood that he could under perform there which would be very bad for him going into south carolina and onto florida. the second big problem that he faces right now is that i think we saw from last night's speech, newt gingrich is an angry man, and i think he is devoted to derailing mitt romney, and i think that -- we've already seen it with that ad that was out today in new hampshire. i think we are going to see a lot of very fierce ads from newt gingrich, and probably the other candidates as well sort of ganging up on him. jon: newt has the opportunity at a couple of debates to sort of take down mitt romney a peg if that's what he chooses to do. the expectation is that's probably what he is going to do. >> yeah, absolutely jon. i think that newt is the kind of guy, he doesn't forget things, he has a good memory, and i think that, you know -- and we saw this four years ago where a

lot of the candidates that were not mitt would sort of turn -- that would seem to be the one thing they all agreed on, they ended up not liking mitt romney and sort of going after him. i think that's what we'll see in the next couch days. jon: charlie hurt from the washington times. char lease, thank you. >> thank you, jon. jenna: this fox news alert, here is the headline, rick perry the governor of texas is staying in the race. that is the headline, here is the background. during the 11:00 eastern hour we saw a tweet from governor rick perry saying the marathon will continue. the next leg of the marathon is the paul met tow state, here we come, south carolina. it showed a photo of him in his running gear. we don't know where this picture was taken, jon, that's why we're wondering was this sent by accident? but now we are learning, carl cameron confirm for us that insiders with the perry campaign say apparent low he's all in, he will go to south carolina, he will go to new hampshire. john roberts from a campaign source saying he's taking a few

days after, governor perry, apparent low to take a jog or two and going onto new hampshire and south carolina with a full-court press starting sunday. so if there were some doubts about him getting out it looks like we have to confirmed, jon, rick perry stays in the race. jon: interesting that the tweet that he sent out bypasses mention of new hampshire all together and talks about south carolina. jenna: it's interesting that you mention that. it's such a good point. also this came right when michelle bachmann was announcing that she was out of the race. so here we are seeing this musical chairs continue. it will be interesting to see does rick perry pick up some of the michelle bachmann supporters you never know. jon: mitt romney had been hoping that a one-two punch in iowa and new hampshire could knockout all of the competition and anoint him the winner. clearly that is not going to happen. there are a lot of people who intend to stay in this race for a good, longtime. the muslim brotherhood could lockup a majority of seats in egypt's parliament n. that group does take power there how will it impact the region, and also

president obama's mideast policy? also to elections here at home rick is keeping an eye on the web wall for us. >> reporter: i have a job for everybody at the next break go to the "happening now" page at foxnews.com. if you kroll down a little bit you'll see our poll today, how satisfied are you with last night's results? just as for many of the evening it was a three-way race between the top three, if you take a look at results so far all very close. a little too close to call at this point. but we will keep monitoring your choices, so go online and vote and we'll have more of "happening now" after a quick break. don't go away. [ male annouer ] juice drink too watery?

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jenna: from the first in the nation caucuses to the new hampshire first in the nation primary. the next big test in the republican race. rich edson is live in manchester, new hampshire with more on all of this. hi, rich. >> reporter: good morning, jenna. much much the focus on new hampshire has been on events outside of this state simply because you've heard news from rick perry's campaign a short time again, carl cameron saying apparently rick perry is all in, after his poor performance he wanted to go back and reassess his campaign. michelle bachmann is suspending her campaign. the other candidates are on their way to new hampshire or are already here. the former governor of utah jon

huntsman says it is a wild open field out there and he thinks he is someone that can move into that field. as to the polls in new hampshire it's looking tough for anyone not named mitt romney. romney 43%, ron paul at 16%, newt gingrich at 9% and jon huntsman at 10%. michelle bachmann just dropped out at 2. and rick santorum eight votes away from tying mitt romney in iowa, i was going to say last night, but really this morning when it was announced. the push is on, the new hampshire primary takes place on tuesday. plenty of events between now and then. jenna: we'll look for the news between now and then. it will be a lot. rich, thank you so much. jon: the obama administration is moving to build closer ties in egypt with the muslim brotherhood. an islamist groups with ties to terrorism. our chief intelligence correspondent catherine herridge is live in washington with more on that, what some would see as

a surprising development catherine. >> reporter: good morning. a white house spokesman had no comment on the reports that the obama administration is in fact developing a new strategy including closer ties to the muslim brotherhood and it'see morin egypt. the muslim brotherhood is poised to obtain an out right majority in egypt's new parliament. the administration has apparently engaged in recent high-level meetings with the brotherhood. any engage the by the u.s. government with the brotherhood is likely to give this organization, one that critics describe as a terrorist group more legitimacy. it may sphal the u.s.'s frustration with the government in the post hosni mubarak era. here is a spokesperson. >> i will simply say without naming names that we are concerned that some of the most

stride dent statements, particularly in recent days made byee kweupgs authorities seem to be made by old hosni mubarak hold-over types who clearly are not on the new page with the egyptian people. >> reporter: the rise of the muslim brotherhood in egypt cannot be seen in isolation. this new report prepared for policy makers on capitol hill warns that extremist voices are gaining ground in neighboring libya araoug that the arab spring may become an islamist winter. >> we allowed chaos. you've seen these radical islamists the most organized, best equipped come in and fill their vacuum very rapidly. we are seeing the same thing with the muslim brotherhood in egypt route now. they were the best organized of the rebel groups. >> reporter: they argued this a closer relationship with the brotherhood simply recognizes the new political reality, jon on the ground in egypt. jon: the administration wanted hosni mubarak out and it's the

case of maybe be careful what you wish for. catherine herridge thank you. jenna: police identify a body found in the woods and it's a real blow to this team, a missing woman who worked alongside them as a dispatcher. now they are saying they have evidence that she was murdered. more on that. getting a little bit back to politics mitt romney lands on top in iowa, some say his rivals held much of their fire, why they held back and why we are likely to see more attack ads against romney going forward. what makes scottrade your smartphone's most powerful trading app ? total access - to everything. from idea to research to trade. including financials, indicators and real-time streaming quotes. whether you check your investments every day or every minute, our app can take them from thought to trade. at scottrade, seven-dollar trades are just the start.

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a couple accused of a deadly crime spree now under arrest. police say logan mcfarland and angela atwood killed an elderly couple in utah before attempting a carjacking in nevada. they led officers on a pursuit stretching hundreds of miles. reportedly they gave up without a fight. jenna: as the dust settles in iowa some asking if mitt romney got off easy there. a new report showing that despite mitt romney's frontrunner status he wasn't the target of a lot of attack ads. how does that factor into the race? byron york chief political correspondent for the washington examiner is one of those taking a look at this. he is also a fox news contributor. in the title of your argument you said in gop ad war why did romney get off easy?

why did you find that to be the case? >> that is the big question. a lot of the candidates were simply fighting for second-place. they were kind of fighting for the right to challenge mitt romney one-on-one later on. in his iowa campaign we learned a lot again about how effective negative ads can be. after newt gingrich rose in the polls a proromney super pack just lowered the boom on him and beat him up really bad, and a ron paul ad did the same thing. you saw newt gingrich's poll numbers just plummet. and later we found from a campaign monitoring group, we found that 45% of all ads, all the ads aired here in iowa were attacks on a single candidate, newt gingrich. just 20% of the ads mentioned mitt romney in a negative way and a lot of those criticized a lot of candidates with romney just being one of them. so you look back at it now and you think, why was romney not targeted as the kind of continual frontrunner, why was he not targeted more in the negative ads?

jenna: what do you think the answer to that is, byron. governor perry's ads were focused on him and his family. ron paul was about broader ideas about the united state government. why didn't they take their resources and go straight to the top. >> perry would have been the one to do it. michelle bachmann or rick santorum didn't have the money to do it. they couldn't buy these ads. they didn't have big, rich super packs working on their behalf. rick perry had a lot of money and could have done it. when i spoke to their campaign about it, they said we are fighting for the conservative voters with michelle bachmann and rick santorum and newt gingrich and romney's supporters were more liberal. they were fighting for the right to be the so-called anti-romney who would take on romney later on. that proved to be a mistake because voters the ones who didn't like romney wanted to see candidates take it to the frontrunner. jenna: it will be interesting to see if they change their course as they move to some of these other states. do you think the lack of

negative ads, the focus on romney is actually a negative for him. peggy noon and in the "wall street journal" said newt gingrich going off romney in a debate with us a great thing because it made romney look tougher and like a fighter. maybe getting some negative ads could help bolster romney past that 25% that he always seems to be getting in the polls. >> we know there is one group that is preparing a lot of anti-romney negative ads and that is the obama campaign. if romney becomes the nominee he will certainly face them. it looks like he will face them earlier than that. we've heard this morning from newt gingrich, it sounds like he's prepared to launch a full-scale attack on romney in new hampshire. that is going to include ads. i think romney who really is kind of a target-rich environment like newt gingrich was, has a lot in his past that conservatives have questions about, i think romney will face the negative ads sooner rather than later. jenna: quick thought, rick perry staying in the race, what do you think? >> i think it had a lot to do

with michelle bachmann getting out of the race. if both of them had left the race that certainly would have allowed one of the more conservative candidates to consolidate his support. i think rick perry he's the opportunity in south carolina with bachmann out of race. jenna: nice talking to you. thank you. >> thank you. jon: strong reaction to the president's decision to bypass congress. president obama set to appoint a new regulatory czar without the approval of the senate. harry reid says it's a good thing, but a lot of republicans are steaming. one top republican says the american people deserve more more respect. awaiting mitt romney in new hampshire. he is poised to get a big, new endorsement. a live report on that coming up next. okay, team! after age 40, we can start losing muscle --

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jenna: fox news alert. this is an important one. the president is naming richard cordray as head of the consumer financial protection bureau. he is doing it by using his power to make recess appointments while congress is away. there is lot of background. we have to go over this legalese with fox senior judicial analyst, host of "freedom watch", andrew napolitano. >> jenna. jenna: he was not approved by the senate. he did not get the votes. >> the senate rejected him for a new agency in the government which will be able to regulate all consumer financial transactions, go to the dentist and have braces put on your child's teeth and want to pay $250 every six months for two or three years, in order to pay for the braces t has to be approved by this agency. can you sigh this agency to

challenge their denial of your approval? no. this is the dodd-frank law that was created last term. this is the first head of that agency. jenna: that is what the republicans had a problem with. >> yes. jenna: every side said they like the guy. he is from ohio. attorney general there. they were thinking he is a good leader. but what they didn't like is how the actual bureau was set up. this is why they denied the appointment. here we are in recession session. are we in a recession? >> depends how you look at it. are full senate meeting, no? there are senators in washington. they get together on the floor of the senate for five minutes on three days which under the constitution means they are in session. when the senate is in session, even one of these proform that things, they're not conducting business, they're there they're not out of session. if they're not out of session the president lacks authority to appoint the guy. will the president appoint him? yes. will he get away with it? yes. >> how does he get away with

it? >> because the congress is toothless. when ever the president takes power away from congress starting a war with libya without a declaration of war or appointing someone to regulate braces in your child's teeth without getting confirmation from the senate, he gets away with it. jenna: recess appointments are not new. >> correct. jenna: what different about it this time? what really making you think there is something here that doesn't feel right? >> three things. when this president was senator obama and president george w. bush wanted to appoint john bolton, a recess appointment, to be the united states ambassador to the u.n., which president bush did, after ambassador bolton was not approved by the senate, senator obama said, you can't do it. this is wrong. nobody will give creditability to these recess appointments of the president did it anyway. president obama looks at it differently now that is in the white house.

what is greating people that the senate rejected this guy. the president is doing an end run around the senate's constitutional obligation of advice and consent. jenna: this consumer financial protection bureau is how it was set up, the intention was it would protect consumers. obviously we want the best protections. we want the best situation for just as american citizens. i just wonder if you're appointing someone that people don't want in that position how that benefits the bureau and where it all goes? >> there were a number of reasons why he was rejected by the senate. many republican senators believe the free market should protect consumers. the democrats who put through the dodd-frank bill believe bureaucrats should protect consumers, basically telling them what to do and taking their tax dollars to enforce regulations. used to be if you lost a confirmation battle you are gone. this president found a way to get you the job anyway. jenna: there is a loophole? congress could deny the

salary, not the president but cordray. >> if congress had courage to defend the authority under the constitution could take funding from the consumer products organization that he is now going to head and take his salary and put a hold on them. they won't do it because they don't have the courage to defend their prerogatives under the constitution. they will let the president get away with it like all congresses let all presidents get away with taking their power. jenna: what do you think it means for our country? >> i think it is bad. it shifts power from the way the constitution divided it between the courts, congress and president and gives too much to the president. the democrats may like power he has taken from congress. they might not like it when replaced with a republican whoers accidents that power. jenna: sounds like a good topic for "freedom watch". >> it is. ron paul at the tom of the show. jenna: thank you, judge. >> you're welcome. jon: we're awaiting

mitt romney in a town hall meeting in new hampshire. he is expected to pick up a huge endorsement there. chief political correspondent carl cameron live in manchester, new hampshire. >> reporter: hi, john. mitt romney is on the ground in the first city and first-in-the-nation primary state with historically narrow eight-vote win in first in the nation caucus in iowa. traditionally candidates race to new hampshire overnight. mitt romney chose to stay in iowa and do morning tv talk shows and take more leisurely arrival here in new hampshire. fairly small group. not arrival rally sort of traditional for candidate won the iowa caucuses and storming into a state where he has a 30-point lead in the latest suffolk poll out of massachusetts. it raises questions how mitt romney will focus. whether he spends a lot of time in new hampshire or whether he will be eyeing south carolina where a squeeze play begins between newt gingrich and rick santorum as they try to

unite each one of themselves the conservative base against romney. it is going to be a really big battle. romney on the way here on his charter flight with the press strolled back to talk to just briefly and he discussed a little bit his conversations last night with some of his rivals as they called to share congratulations and condolences for their various performances. listen. >> we have the four boys here with us. we sat there and waiting until we got the final word. >> governor, did you talk to any of the other candidates? >> i talked to all the candidates. didn't get to speaker gingrich. some called me. i called them. we had a good chat. >> reporter: little bit hard to hear because of the plane noise. he spoke to all his rivals except newt gingrich. he expects to certainly hear a lot from him today. there is union leader full-page ad from newt gingrich attacking newt romney, juxtaposing their policy provision looks

favorable for newt gingrich than obviously it does for mitt romney. romney will talk about president obama and his vision for the country, his jobs experience and rise above the fray. the fray will get heck a lot of more nasty. in iowa, because it is midwest they are cautious against throwing shash jabs, it can backfire. in new hampshire they expect it. this is not caucus. this is not internal republican primary event. this is official election run by the government. the anybody can participate. you show up with i.d. can change parties. it is open primary. more moderate voters can take part. it will help mr. many romney and ron paul who has big independent voting following. independents are known to swing the new hampshire primary. that is a big part of the calculation here. romney will focus more on president obama and his message trying to juxtapose himself in contrast to his rivals. watch for newt gingrich and santorum to be relentless.

santorum is way, way back in the polls. he has county chairman in all of new hampshire counties and he does have some organization. he has a sheriff in mitt romney's vacation home but that doesn't match up what mitt romney has. he raised $20 million in last quarter of last year. he has way more money, way more ads. not a lot of inventory on the airwaves. it is conservative race who can unify whether newt gingrich behind him or rick santorum behind him. rick santorum says he will soldier on and be on the campaign trail in south carolina next week and participate in the two debates saturday and sunday all the remaining candidates will eye every single minute of this week. they will be pretty important coming as they do on the eve of the first primary votes. always far more intense than iowa caucus politics. jon. jon: as one of the reporters on the campaign plane with mitt romney did you appreciate the fact you didn't have to race to new hampshire in the middle of night? >> reporter: it is a little bit weird, jon, got to tell

you. to not do all-nighter racing from iowa to new hampshire is fairly odd. traditionally democrats and republicans win the iowa caucuss. they get on a plane and want to be here for breakfast. they want to be on the west side of manchester, a very famous political watering hole. greek voters when they go to work at various different plants and mills et cetera. to not do that is different. mitt romney ran a very different campaign. he did absolutely all year the barest minimum in iowa. he said from very beginning he wouldn't be there very much. he wanted to do well in iowa. he did very little advertising compared to the time before. more than most but far less than the last time. boy, talk about barest minimum. he won by only eight votes. rick santorum has all the head liens and lots of momentum now. santorum scared hill. romney is doing it differently this time. it is much more low-key than one might have expected for someone who just won the iowa caucuses.

jon: carl cameron in new hampshire for us. carl, thank you. we'll be back with more coverage straight ahead that's good morning, veggie style. hmmm [ male announcer ] for half the calories -- plus veggie nutrition. could've had a v8.

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a smart way to help manage hunger and diabetes. jenna: it is off to new hampshire. governor romney just landing moments ago in the granite state. we'll hear from him on "america live" at the top of the hour. we'll talk to jon huntsman. he plans to do a rick santorum in new hampshire but can he pull it off? we'll ask him about that. and president wasting no time getting to the battleground state of ohio. can he convince the people there things aren't so bad? we'll look at the numbers in ohio and talk about that. also a class of third-graders sings a song about being part of the 99% and they thought the whole thing up on their own. you think? we report, you decide. all that coming up. i will see you at the top of the hour on "america live". jenna: we look forward to that, martha. we have this fox news alert. we want to bring up to date what is happening around the world. we're getting word from reuters that the european union will place an embargo

on iranian oil. let me put that in confession foreyou. -- context. we had earlier this week the president signing a new law concerning sanctions against iran's central bank. we understand that caused some reaction inside iran. we're watching for any embargo on oil, obviously their major export going forward. a word of warning about the sanctions, when they're announced often times, this is announced in principle by the way for the e.u. after they're announced it can take several months to implement and implementation part is where we see if they can work frankly. no reaction in the oil markets right now because of that news but we'll continue to watch it for you. jon: we are awaiting comments from mitt romney who won the iowa caucuses last night as you know. but the romney camp is also leapfrogging ahead to florida airing very expensive tv ads now there. let's, here's part the ad that is running in florida. >> i think people understand that i'm a man of steadiness

and constancy. i don't think you will find somebody who has more of those be a triabuse than i do. i've been married to the same woman, 20 -- excuse me i get in trouble. for 42 years. i've been in the same church my entire life. jon: that ad called the leader helped him get the top spot in iowa. the political landscape is dramatically different in florida. we have the tallahassee bureau chief for the tampa bay times. steve, mitt romney has a lot of money to spend and he is already spending in florida. why? >> because it is such a big, state, jon, to get the message out in as you know. 13 television markets. it costs up to a million dollars a week to sat rate the state with television ads. he spent time. didn't do well in the straw poll. herman cain won the florida poll. so romney and we've seen around the country romney's support is soft. romney knows there is a void for another candidate to

step into here, there could be. the problem for someone like rick santorum it costs so much money to advertise in florida it will be very difficult for anybody to catch romney at this point in this state. jon: romney did pretty well last tile around in florida, didn't he? >> he did. to refresh your viewers memories, john mccain won the florida primary in 2008 with the 30 sick% of the vote. romney hat 31%. popular governor charlie crist made a last minute endorsement of john mccain which is important. legislature moved up the primary again. we're number four on the list. you've got new hampshire followed by south carolina, followed by florida but we're by far the biggest of those early states that will have a say here in who is the republic can nominee. jon: obviously the guy everybody is talking about this morning is rick santorum, the former pennsylvania senator, who famously visited all 99 counties in iowa. spent a long time working on the ground game there. ultimately it paid off for

him last night in the near-tie for first place with romney but he can't do that in florida, can he? >> no, you can't. you know, maybe that is some of the beauty of this, these early states because you have a state like florida which is a megastate. very different from iowa or new hampshire. as you know we're an a amalgamation of all 50 states. a lot of florida voters don't have very strong ties to the state. so they're influenced what they see on television going on in other states. plus the fact, i think rick santorum did 381 town hall meetings in iowa. you could do that many town hall meetings in this state and never get south of gainesville. the state is so much bigger and just takes so much more effort and money to get your arms around it. jon: what about jeb bush? still a very popular former governor there. has he indicated where his support will go? >> no, he hasn't. a number of jeb bush people, key people, are with mitt romney. both elected officials and

strategists. so that is certainly helps romney. the current governor, rick scott, as recently as this morning said again he is not endorsing. rick scott, as you know, only in his second year, not popular according to many recent polls but he is not endorsing to date either in this race. jon: but the headline is mitt romney still has great organization and a lot of money to spend. that is what it is going to take in florida to buy all that television advertising in tampa and orlando and the big markets, miami and so forth? >> absolutely. every poll we see, everything we see about romney's candidacy certainly shows weak spots. there is room for a candidate to step into the void but the price tag to get there and amount of money it takes to get there appears almost insurmountable at this point. jon: steve bosque i used to work a few hundred years ago in miami television. good to see you. >> thanks, jon. jon:. jenna: new details in the investigation of a deadly new year's eve shooting

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jon: right now some new information on stories we're watching from our control room. a popular sheriff of an arizona border county is running for congress. paul bab bow saying it is time for a new sheriff in washington. later today he will join neil cavuto on "your world". white man's food markets pulling television ads featuring actor alec baldwin. they say customers complained about baldwin half he was kicked off a plane last month for not turning off his cell phone. a surfer survives a

shark attack off cydey. he remains in good condition. what a story to tell. jenna: details in investigation of a new year's morning shooting that killed four people. california police now revealing two navy pilots are among the dead. rick, what do we know about this? >> reporter: jenna, this is a tough one, tough for the investigators and very difficult for the three families that lost loved ones. the reis family lost two, 25-year-old son david, a navy pilot and 22-year-old daughter karen with dreams of becoming a occupational therapist. the other people in the condo not identified but one we're told is navy pilot like reis who was stationed nearby at the miramar marine base. all four why found dead new year's morning. investigators have a lot of evidence to sort through. they are not declaring a murder-suicide. they're not looking for anyone else they believe may

have been involved in the shootings. the reis siblings are described having been very close from a fun-loving religious family. detectives say this case is their number one priority. no comment, jenna, from any military officials. this is a base a lot of people know where navy seals are trained and no word yet on the recent deployments or possible deployments of either navy pilot. as we learn more, jenna. we'll pass it on. jenna: a sad story is the truth, rick. thank you. jon: two planes on a collision course at one of america's busiest airports. how a near-miss nearly claimed more than 500 lives last summer. and why are we just hearing about it now? ♪ ooh baby, looks like you need a little help there ♪

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jon: just in, wegman's is pulling tv ads w