>> we can handle the truth, harris. >> yeah, it is friday. we are back on monday, noon eastern and "happening now" starts right now, have a great one! >> no dancers in the "happening now" party starting in a couple of hours from now. the wall street numbers are plunging and the dow- jones dropping 200 points and that is almost in a year and we are covering all of the news "happening now". torrential rains and toppling homes and forcing emergency water rescues. and the west coast still hammered by strong storms, is there any end in sight? planning for the worst and hoping for the best and we got closer to the worse right now. plus, the stunning admission by a witness for the prosecutions in the jodi arias case. why the judge has no choice but

take the death penalty off of the table. >> and -- ♪ >> the air force getting a jump on the holiday season. ♪ a pop up concert for the visit are ones in the air and space museum. what prompted the surprise. it is all "happening now". ♪ but we begin with how washington wants to spend your tax dollars. 1.1 trillion of them. welcome to this edition of "happening now". i am jon scott. and i am shannon bream in for jenna lee. and the vote could come shortly after the house passed it with bipartisan support. but the process of coping the government funded is exposing

bitter divisions with both parties. we'll bring our experts. and we saw people on opposite sides we don't normally see, former house speaker nancy pelosi, the minority leader and the white house. a lot of people, watched obama care get passed and it should be called pelosi care, because she carried the weight on that and she was not going to do it this time. >> if i am nancy pelosi, i am so angry right now and reports from the conference meeting said she was even headed about it but i am mad for that reason. she helped the president pass the massive health care law and lost her speakership and majority in the house because of. it and when she thinks house democrats can make a final big stand before they resowed, the president is lobbying to pass

a huge spending bill. if i am nancy pelosi, it is not a good day any way you cut it. >> those who supported the bill said it was compromise. and key leaders had a seat at the table. listen to what senate majority leader harry reid had to say. >> legislation is the art of compromise. any chief executive who has to work with a legislature as the president of the united states do, they don't get what they want. legislation is a compromise and that's what this legislation is. >> congress has the worst approval ratings of any entity out there and recent polling, people want it to get down on the hill. but as harry reid said that means compromise and you will have people mad all ends of the

spectrum. i think that is right. democrats are trying to color this, this is a big win for the democratic party. we got opposites in congress to work with us. but what options did they have? they are putting it in rose- colored glass, but the democrats are taking leverage off of the table. they accused the republicans for being vicious for imagining that the government shutdown is good leverage. and now democrats don't have that tool and they are left with nothing but say we compromised. >> we are done in the house for now, and this goes to the senate and there is interesting allies coming together, far left progressive elizabeth warren, and many times described far right tea senator ted cruz. they don't like the bill, but for different reasons. >> absolutely. elizabeth warren, senator from massachusetts doesn't like the

bill because of the dodd- frank act and go on wall street and ted cruz doesn't like it for amnesty reasons, immigration executive order that obama declared and this continues to fund the department of homeland security. i think they are strange bed fellows and they are fighting the bill. and there will be an interesting vote count by the end of the weekend. >> and how much for warren and cruz? this spectacle. how much is this about 2016 ambitions for them? >> tons. can you imagine warren if not keeping it in check. and ted cruz rallying against the president for granting amnesty and why not come out, the future of our country dep d

depends on us if it is not constitutional we need to fight every chance weigh get. they realize it is an opportunity to take on issues that they are carrying about. this will come back to haunt them. nan open letter from former obama supporters calling on elizabeth warren saying we'll support you. we helped him win the white house. one word answer from each of you. do you think she will run? elizabeth warren? >> maybe. hard to say. it is a pivotal moment. embold ep her or no, i want to be an operator in the senate and make my career here and it being emboldened her, hillary clinton, not a good friend of wall street in the end. >> yes.

or no. >> i think she is a likely candidate. >> good to see you, have a great weekend. >> i would love to dive deeper in the wall street aspect spending of the bill. joining us is peter barns. >> hey, jon, this is the provision that elizabeth warren is upset. one fa that generated awe fight in the house and nearly sank the budget bill. banks have been fighting to repeal a section of the 2010 dodd- frank reform bill. covering the swap. it is a contract between two parties to exchange financial obligations such as a stream of interest payments on your mortgage. trillions of swaps are used by banks and investors and companies to protect to protect against rising interest rates. and misuse of certain swaps was

a major crisis in 2008. and dodd- frank required banks to push out the swaps trading in separate operations. and banks said it was unnecessary and costly overregulation. the law exempted most trading and 95 percent of it and targeted only certain kinds of swaps and the american banker association said in the fight, the push out requirement to push swaps in separate affiliates makes it possible for family farms and energy companies that want to hedge against commodity changes. and many democrats said repealing the provision will set the stage for a bail out. and democratic leaders who agreed, said it did so because it passed the house with

democratic votes by bipartisan support and got republicans to agree for more funding for financial regulators, jon. >> all right. the battle goes on. and don't miss peter on the fox business network. and mistakes by the big banks? our chat is up and running. click on america's asking and join the conversation. >> powerful, deadly storms battering california. and leaving extensive destruction from two days of wind and torrential rain from washington state and san francisco. folks washed in horror as their houses were washed away by water or engulfed in mud.

nerosion and you sign your name and erosion? that doesn't concern us. >> i was awakened by the rain and the the mud was flowing around. and i was in trouble at that point. eventually firemen came and got me out. and took me to the clubhouse. njust a bad brew of so many things happening on the west coast. >> it is an incredibly strong storm. rainfall totals are like 15 inches in whiskeytown. and big sur eight inches. and that is incredible and like the a equivalent of a category hurricane. and it is strong and heaviest of the rain over the last 36 hours

is the the northern occurred central california area. san francisco three and half inches and getting the wettest december area and down to san jose and santa cruz and monterey, picking up 7 or 8 inches. more rain in san francisco. but the heaviest in los angeles and down to san diego. we have flooding concerns all throughout the central valley and down to san diego. just getting to which reason, too quickly and we'll see more. los angeles, another quarter of an inch. and san diego half an inch. and riverside three- quarters of an inch. and we'll put it in motion over the week woke, moving in the four corners and then in the plains, but look at this, shannon. monday, next storm moving in california. another one behind that on

wednesday. and looks like we had a drought and getting more rain over the weekend. >> a family attacked by acid by a guy posing as a hitchhiker. >> charles brennan defending his agency. we'll talk to a former marine judge adrocate about his view of the report. and how longlow can they go? under two bucks. gas prices are falling and bringing an early christmas gift to drivers and shoppers. could that be a warning sign of a weak economy? we'll go to our business insider ahead. can you help me up? [ snow intensifies ]

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>> authorities in israel said a joush family was attacked with acid by a palestinian man.

they were in the car and the suspect threw acid on the girls. he tried to attack the father with a screw driver and tried to run away and he was shot in the leg by a passerby. the family members suffered minor injuries. >> there was useful intelligence that was obtained by individuals that was subjected to eit's. whether that could have been obtained is unknowable. >> the cia director john brennan forcefully defending the enhance techniques on the interrogation. he called the senate report flawed. we have more from jay town. we have a prosecutor that spent 12 years as a judge advocate in

the u.s. marine corps. >> jay, i don't think john brennan used the word torteur in the news conference. but you have a problem with the way the u.s. intelligence committee and democrats defined torteur? >> absolutely. and john brennan was right by not using the inapplicable term. this is why we write laws down, jon. the senate committee report is a 500 page whine that is dedestroyed of context regarding post 9/11 security and offers no legal analysis. and the use of the term "torteur" is inappropriate and it is defined by the u.s. code. it is hc 2340. and torteur is severe pain or mental suffers that is

intentional. no evidence that eit's or methods used bite cia caused any severe pain or suffering. and severe is long- term or permanent. 182 water boardings and one 83rd was not permanent measure. >> and severe pain. much of what they talked about. sleep deprivation and cold food served, that doesn't sound like torteur? >> standing for four hours and switching from hot to cold food and just awful conditions, jon. they are designed for the protection of the united states. the services are not designed to get awards from amnesty international. and just because the political climate changed, thank god our laws protect us from law makers

taking the u.n. out for an ice cream cone. >> these methods were approved by the justice department, right? >> yes, i think what you are going to request about the mention of prosecution, not only the interrogators and the lawyers who wrote the memos and justifying the eit's. there is nothing more silly than hearing something like that. first of all, the justice department sanctioned the activities and they were ordered to perform those interrogation and then the same justice department prosecute them doing what they told them to do? and walting kha lid in the courthouse so they testify as a victim? we would catch jurors playing brick breaker on the iphones than listening to what they had to it say. what about the notion of the

united nations and russians complaining that our people ought to be prosecuted in the international courts. and they were compliceit for shooting down an airline full of civilians. >> and when the others in the justice department gave legal advice, they read the laws. i would recommend the senate armed intelligence staff do the same. the geneva convention does not apply to al-qaeda. and the united states carved out an exception for the u.s. citizens. they cannot be prosouted under the torteur. and while putin sitting on his horse might think that that is a good idea, it is not legal and why we write laws down, it is kind of important. >> so the terrorist suspects did not fall under the geneva

convention? >> they do not. we treat them as under the geneva. but detainees are not pow's. and only if they are a nation state actors are they covered. isis and taliban and terrorist are not covered under the geneva conventions. jay town, thank you for your insight. >> thanks, jon. >> a judge makes a ruling in the trial of a woman who drove her van in the ocean. what the judge decided and why? founding fathers speaking to us across the years. what did paul revere and sam adams leave in the time capsule to be opened in the 21st century? i'm an idaho potato farmer

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none of the cradles of our democracy. in boston workers removed a time cap soul from the state house. and so what did our founders put in there? here is johnathon hunt? >> reporter: historians are excited about the find. it is believed to have coins and silver plate and newspapers from 1795 among other things and as officials point out, the history of massachusetts is in many ways, the history of the united states. the time capsule was found in a cornerstone of the current state house and only discovered because of ongoing construction work. it was taken away to be x-rayed next week and may be opened then. >> the fact that the box is in

good shape suggest that it would be preserved as well. they watched it we are concerned with corosive affect. >> it is the second time that a time capsule was removed from a massachusetts state house. back in october officials open the up the iconic line capsule and they found a treasure trough of photographs and autographs from 1901 and campaign buttons from mckinley and teddy roosevelt. it is exciting times for historians to see what they get. a christmas gift from 200 years ago. >> it is exciting. >> it is really exciting.

>> british are coming. thank you, johnathon. >> or the recipe for it. >> and more inconsistency coming out in the the rolling stones story about the gang rape in the university of virginia. and air travel in and out of one of the world's busiest cities and causing widespread delays. stay with us.

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>> the house passing the 1.1 trillion spending bill. president obama and vice-president biden pulled for votes. nancy pelosi said she was disappointed with the administration's support of the plan. ed? stunning turn around. democrats in droves abandoning the president. any reaction from the white house today now that at least the first hurdle has passed? >> reporter: yes, look wasn't this the first big test of the president post election with the fellow democrats? 150 of them abandoned them. josh earnest chose to focus on the 50 democrats that voted with the the president. over a hundred joined nancy

pelosi in a revolt against their own president. josh earnest focused on the positive. when it comes to the implementation of affordable care act and immigration system, neither measure were republicans undermining our ability and continued to make progress. that is a clear win for democrats and the president. >> reporter: he is putting a finger on something that is getting hot water on john boehner. boehner said they will fight when they have a larger majority in the house and senate. but many house democrats were upset that the president signed off on the deal with roll back reforms. they were not happy. >> a lot of people saying that there is hypochrissy and now

they are saying who will be to blame if the government doesn't get funded? >> reporter: what a difference a year makes. same time last year, the president lashed out at republicans saying they are shutting down the government over health care and this was mean and nasty and going to bring down the economy, listen to what he said. >> one faction of one party in one house of congress and in one branch of government shutdown major parts of the government all because they department like o one law. >> reporter: what's the difference this time. house democrats didn't like one provision over the wall street reform and willing to shut down the government. and the difference is that the government has so far not been shut down, but not because of house democrats not trying. they voted against the bill last night. >> we'll see what happens in the

senate, more to come. thank you. >> right now, the air space over london is back over but there was a computer dmrich in a an air traffic control facility responsible for the air space over half of the country. greg has details from london. >> the london airports are gradually getting back to normal, but for a while this afternoon, there was chaos in the skies with a ripple affect all around the world. a computer system that runs the control system over all of the uk was knocked out by a glitch this afternoon and the skies over london and southern part of the uk were closed and shut down airports including hesthrow. they handle 2700 planes a day.

they were diverted as far away as italy and others stuck on the ground. flights come & going to the united states, flights as you noted are taking off and landing, but in a restricted fashion with big delays and there is 50 cancellations and probably more flights tonight and a lot of put out and angry passengers we are told in the airports as well. problems should extend into saturday. warnings coming from the airlines including america, traveling to hea throw. check with your airlines there might be a delay because of a computer glitch in an important spot. >> what a mess. thank you, greg. >> collapse of a rolling stone expose and a confession from the lenna dunn ham. what is ahead.

howard, what do you think that both of these cases say about so- called journalism in the 21st century? >> shannon, they push the story perhaps beyond the facts. the rolling stones story based on a woman named jackie has collapsed because of friends of jackie said the guy was one of seven men that raped her is not even a student in the school and a picture she texted turned out to be a picture of a high school classmate. what is really hard to understand, why rolling stone published the story and a reporter who spent time on the 9000 word piece couldn't find them and find that the claims were exaggerated. >> are we in a danger zone.

people can freelance and write articles for various organizations and coming from a place of advocacy and write to a preconceived conclusion, how do we hold people accountable and where were the editors? >> this was a failure on the part of the editors of the magazine. and one of the friends of jackie said she wanted to find the most sensational rape case to make a case of sexual assault is a problem on campus. the damage control pie rolling control is awful. and lenna dunnham, her publisher are random house had to back track because she said it was ba rry and now she said it was not his name and a guy who attended with the hbo star and actress that threatened to sue and they

are offering to pay legal fees. and lenna dunnham standing by the claims. was it rape or said she was drunk and coked up and invited the guy to the apartment or a sexual encounter she later regretted? >> there is a big difference. we'll see you on sunday morning. thank you for weighing in. >> jodi arias' lawyers want the death penalty off of the table after the police admit they were wrong about a piece of evidence. the question, was it on purpose? >> and phony fiance and made up children in the trial of a mom who was accused of killing her own son.

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party leader for the democrats? and the sony hack attack could affect anyone that wrote an e-mail. and here's a question for you. do dogs go to heaven when they die? the pope made interesting comments that opened the doggie door. see you in the top of the hour, see you then. >> with a twist in the sentencing retrial of jodi arias, after a three- day side-bar, the judge must decide whether to remove the death penalty and after new testimony that contradicts older testimony. and concerning the pornographic activity on the computer. the defense amounts that is prosecutorial misconduct. we have our attorneys. welcome to you both, gentlemen. >> thank you for having us.

>> it was established that she killed the former boyfriend, and it seems like the issue of pornography on her computer is a secondary issue. but eric, why does it matter in the sentencing and how could it get the death penalty taken off of the table. >> the defense is using this for mitigation. they will show something that will save the lady's life. and in the context of trial if testimony or evidence goes missing, then the person who made it go missing is the person responsible for it, and that's why they are claiming prosecutor misconduct and trying to get the judge to take the death penalty off of the table. >> there was debate of the porn on there and if they found it or someone else found it or if they are lying. >> the first threshold that the

prosecution was aware of the material evidence and should have been aware. and if they get past that, they are stuck with the issue of immamateriality. and a lot of computers are porn on them. how does the deceased in this case, the victim maybe had a porn habit and how does that mitigate the evidence used in the sentencing hearing for jodi arias? the defense at trial was that she acted in self defense because travis alexander and she blufrjonned him to save herself. and the jury didn't buy that. and now the death penalty. >> and what about the victim? >> and so eric, if the death penalty comes off of the table that leaves a limited amount.

there is a retrial of the sentencing. and this is wasting money and the death penalty is not on the table anymore. >> if the death penalty is off of the table, they can stop the sentencing phase. because the sentencing phase is to determine whether or not the death penalty is imposed and that's why both sides are fighting tooth and nail. the prosecution wants her to die for the horrible crime and the defense wants to save her life and that's why they are trying to paint the victim as a horrible person, and although our client did something wrong, but look at this horrible guy, and by the way, your honor, the prosecutions made the evidence go away and they are wrong, and we have to sit and look at this case and err on the side of the defense. and that's what judges do, they want to make sure the defense has a fair trial in the united states. >> we have another case, in which a mother is accused of

poisoning her son to death. and elevating the sodium and salt levels in his body. but there are conversations about what she lied about other children and a fiance that did or did not exist. why should her alleged lies factor in the case about the death of her five-year-old son? >> the issue is look, is a bed rock rule of criminal law, that a jury should not hear uncharged criminal offenses. the defendant is charged by an indictment and she attempted or did poison her son. the prosecution is seeking to pull out other instances where the son had a high sodium and high toxity to establish for the jury it made it more likely than

not the defense did the crime. the defense said she shouldn't be burden shouldn't be that she attempted something like this before. >> and what about the lives of other kids and mysterious fiance. does it go to her voracity and should that matter in this case? >> i don't think the lies should matter, but the previous case where her son was in the children's hospital in alabama with high sodium levels that matters. that fits the crime she is charged with. and so if they can show it lines up with what she did this time and the propensity to do the same thing it may get in. the jury said if you did it then, you probably did it now. and like tom said you probably did it then and now. and judges are careful to let

them in and try to keep a lot of it out to make sure the jury is not tainted. >> and having flash backs of material rules of procedure. >> getting heavy and a bar exam here. ntom and eric, good to see you both. >> and jon? >> this video may rexhind you of a classic commercial slogan. 199? are you out of your mind? and how low might gas go in and is falling oil a sign for the economy? plus this. a one of a kind flash mob performance. u.s. air force band surprising visitors in the smithsonian air and space museum and how they did it. moments away. ♪ here's some news you may find surprising.

we're for an open internet for all. we're for creating more innovation and competition. we're for net neutrality protection. now, here's some news you may find even more surprising. we're comcast. the only isp legally bound by full net neutrality rules.

one of the smithsonians in washington got quite a treat courtesy of the air force. ♪ >> that's one incredible flash mob where a single musician started this whole thing off at the national air and space museum. then more than 100 airmen with instruments slowly joined in for a spectacular medley of holiday favorites. this so-called imprompt your performance actually took several months to plan. it gave the tourists an amazing memory of their trip. john, that may be my favorite story of the day. i wasn't there for it. >> how about the acoustics? coming off the space shuttle there. it sounds great. >> the back drop, it really is beautiful. >> that's next to basically dulles airport. very cool place to be. if you haven't been there, check

it out. >> i'm going to start hanging out there in case one of these crops up again. >> my son is army. your brother is navy. that's the air force. hats off. >> good to see it. drivers getting a nice gift just in time for the christmas travel rush. joining us from our sister network fox business network sheryl castoni. some people are even seeing gas below $2 a gallon. >> i'll start with the good news first before i get to the troublesome news, and that's what we're seeing in the great state of texas. if you look at dallas right now, fuel city, here offering gallons of gasoline for $1.99. they're $2.40 on average for a gallon of gas. it's the energy sector, and it's about commerce, and things are

good there. that's in dallas. there's a problem here, overall to your point. another selloff for the dow today. stocks trading down. unfortunately, a lot of these companies they pay taxes. they also contribute to the federal tax. those profits are going to be under pressure as oil stays in the range it's in right now. i have toll tell you, john, it's one of the most bearish calls i have seen from the publisher in the oil industry. he said he is thinking $35 a gallon coming up. excuse me. $35 a barrel for oil. that's one of the most bearish numbers. even at $50, though, john, these big major corporatings could begin to lay off employees. on the positive side, we'll keep it positive here. yes, it's great for airlines. the airline sector doing well. it's great for consumers that want to get throughout and drive on this christmas holiday. and then it's certainly good for the pizza delivery guy, for small businesses across this country. john, it depends on fuel.

>> i'm filling in for a few moments. >> thanks very much. sheryl, don't miss cheryl on fox business network. if you aren't sure where to find it, log on to fox business.com/channel finder. >> well, the house did it its job. the senate on the clock to pass a $1 trillion plus spending bill and keep the government open. how much opposition is it fac g facing? i have the worst cold with this runny nose. i better take something. dayquill cold and flu doesn't treat your runny nose. seriously? alka-seltzer plus cold and cough fights your worst cold symptoms plus your runny nose. oh, what a relief it is.

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it was shannon's favorite story of the day, and my goal is to make shannon happy. >> it worked. >> success. >> a little more of the u.s. air force babd playing in the air and space museum. outside dulles airport in

virginia. really cool stuff. >> can you imagine? >> they pulled this off. >> that may be amazing enough on its own, but the music is spectacular. >> that's a good word for it. thank you for joining us. >> "real story with gretchen carlson" starts now. starting with the fox news alert, happy friday, everybody. the lights, they're still on in the capitol after a government shutdown averted at the 11th hour. hi, know. i'm gretchen carlson. we're here to bring you the real story today. the house approving that $1 trillion spending bill with the clock technicaling down to a midnight dead looirn, but passage was no sure thing. bill passed by just 13 votes. now the democrats may have some catching up to do because many of them are none too happy. nancy pelosi condemning the bill as a sell-out to corporate interests. as that party fights, the budget