>> and i am ainsley earhardt. we are going to start with a fox news alert. a terrorist armed with a gun holding more than a dozen hostage in sydney, australia. >> the gunman demands an isis flag. joining us live in london with breaking details is gregg palkot. >> good morning. we have been tracking the story all through the night. it is 9:00 monday night in sydney, australia right now. now it is approaching 12-hours of the hostage situation going on with a link to or better described as an association with the isis islamist group. it happened in a busy cafe monday morning australia time. in the center of sydney. sydney is the biggest city in australia. the equivalent of new york city for australia. a middle aged man wearing some

kind of bandana holding a shot gun and having a backpack on his back walked in and took the people hostage in that cafe. the numbers have been wildly divergent on how many people were there anywhere from 15 to 40. witnesses are saying it is probably closer to the smaller number. over the ensuing hours hostages have been seen at the windows of the cafe some there as long as two hours holding their hands up against it. apparently the hostage taker telling them to do it only using them as a human shield. a banner has been held up by at least one of the hostages a black banner with an islamic slogan on it. the hosz ttage taker is holding pump action shot guns. there have been claims possibly from him he had bombs inside the cafe and outside as well in the downtown area of sidney.

tho -- sydney. police have not been confirming that at all. 6 hours into the crisis three people were seen running from the cafe. another hour later two more came out. apparently they weren't released but they were fleeing. we could see that the hostage taker was upset about that. we heard that from an eyewitness. it has been a huge police effort. here is a little bit of what the commissioner had to say a short while ago there. >> their only goal tonight and for as long as this takes is to get those people that are currently caught in that building out of that safely. that remains our number one priority and nothing will change. >> police say they have been in contact with the man there has been an isis flag requested by the man also a reading of tony abbott of traus yale yaustralia.

he has been on tv as well. he has been saying he has been in touch with president obama also homeland security department of the united states has been briefed. the u.s. consulate is on the phone there and there is a link there, too. isis tenuous at best. this could be a lone wolf terror operation. it is a dangerous one to boot. back to you. >> gregg palkot live for us this morning. thank you, greg. >> americans are also on high alert. the u.s. consulate in sydney evacuated as the hostage plays out. here at home they a. what is the state department saying today? >> we have acknowledged what you just indicated that the consulate has been evacuated as a precaution. they issued this statement saying our hearts and prayers go

out to those who are being held hostage. australia law enforcement officials are addressing the threat. we have advised u.s. citizens and others until they are in place. they are strongly encouraged to remain vigilant and be aware of their surroundings and monitor for updates. according to the white house the president has been briefed on this by his counter-terrorism advisor lisa monaco. fox news confirmed new york police department is watching this situation play out very, very closely. ainsley? >> doug luzader live for us. >> three alabama inmates who broke out of prison are back behind bars this morning. >> all three of these guys recaptured without incident. one hiding in his grandmother's

another at a movie theater parking lot. they over powered the guard and took the keys to the front door. >> more than 80 high school hockey players and fans sick with carbon monoxide poisoning. they felt dizzy had head takes during the game. it wasn't until hours later the rink was tested and had high levels of the gas. the fire department blameses an ice resurfacer. >> a suspect is in custody for the murder of auburn football player. they charged hart with felony murder 24-hours after the fatal shooting. mitchell was shot multiple times yesterday morning and died in the emergency room. his girlfriend saying he was arguing with someone in the parking lot before the shots range out. police are still investigating. but they say no other arrests are expected.

happening today a federal appeals court will reconsider forcing u tube from taking down an anti muslim film. a woman who had a minor role in the film called innocence of muslims when copy right claims. she said it was never about religion and received many death threats as a result. time for a look at who is talking. democrats slammed the program as torture. but this morning the man who over saw that program says top democrat nancy pelosi knew everything and never rejected. >> i remember briefing nancy pelosi in september of 2002. we briefed her on the use of

interrogation techniques. >> did you tell her about waterboarding? >> yes. >> did you tell her about sleep deprivation? >> yes. >> did you tell thher will slapping and pushing them into the walls? >> i briefed her onally of the techniques they were aware of everything and okay it had. >> did nancy pelosi ever object to the techniques that you mentioned? >> she never objected to the techniques at all. a wear december tornado hit down in wichita. no damage was reported. >> in drought stricken california more rain is in the forecast. it won't be as intense as this

weekend's pine avm suapple expr. the front in the la system is moving south. >> another system expected wednesday dumped up to 8 inches of rain in northern california. >> we are learning sony executive amy pascal could likely be fired after hackers released e-mails exposing embarrassing. the new james bond film. an earlier version of the screen play is among the documents. they are worried it will be leaked. sony wants the media to stop talking about it. a lawyer saying e-mail is privileged communications and sony doesn't consent it being released. >> should the media not report leaked information? we will have a live debate at #keep talking.

about about abo>> for your sund night wrap up. dallas wasting a 21 point lead in the first half before rallying to win 37-27. lifelong cowboys fan on and hand to celebrate the win. >> bapayton manning and the broncos beat the chargers 22-10 earning their 4th afc race title. the new england patriots had a blowout win over the dolphins 41-13. new england clenching their 6th strit division title. >> new miss world crown and the winner is... >> south africa. >> marlene straws beating out the 120 other women winning the

top prize at the competition held in london last night. the 22-year-old medicalsays she world and encourage people to live out their dreams. miss united states from north carolina placing third. >> good for her. >> the most popular christmas gift two airlines big make-over and an obamacare deadline has all of the top business news this morning. tying it all in for us from our sister network fox business here's the latest on open enrollme enrollment. >> good to see you. it is the deadline to sign up for health insurance on the federal on-line change and be covered by january 1st. this year is not about fixing the healthcare.gov web site but scouring for signup. even states with their own sites including new york, as well as california they are using today's deadline as well. others are giving you more time.

massachusetts rhode island and washington state giving customers until december 23rdrd. the airlines are making money. americans are reinvesting that money to give them a better experience. a walkup bar on some, and better vin lounges. delta has entirely new seat categories coming. one gives a whole new meaning to first class private sleep food and wine. as christmas count down begins more of us will be saying is there a gift card for me under the tree? >> only two-thirds of us give a gift card. the most popular ones according to card hub.com, visa, amazon, itunes, american express and netflix gift card. >> happy shopping everybody.

we are shopping on wall street investors desperate for relief. they are finding futures should be up arrows not down arrows. your 401 k probably htook the worst hit in 2 and a half years. >> we are hoping for a better day today. >> we are. >> to find it in your area go to foxbusiness.com/channel finder. we continue to follow the breaking news out of sydney, australia. the powerful pictures and potential terror ties. packing more heat? what report do they need to hear? >> the alarming number of teens using e cigarettes. a look at the gas prices. 4.54. that's down a cent from

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>> police in sydney, australia holding a news conference on the more than 10 hour standoff underway i.>> the wup thing i tend to say is if people are being contacted by hostage, particularly the media, we ask that you would put those people and ?yy÷ them to make sure the man inside speaks to police, speaks to the trained negotiators. they are the people that can help them in this situation. they are available and would be looking to talk to the man that has control of that particular beforing right now. at this hour 5 hostages have escaped the cafe in sydney where

the suspected terrorist is holding more than a dozen people. police have been in contact with the gunman who has been referring to himself as brother. is now reportedly demanding an isis blast and to speak with the prime minister tony abbott. they are vowing to work through the night until all of the hostages are safe. new fallout for rolling stone the magazine being challenged yet again on the uba sex as assault story. this time it's the friends of the victims using their stories using their real names for the first time. alex stock katherine and ryan duffin says rolling stone's portrayal of them is completely wrong. they told the alleged victim jackie to keep the rape to herself and not call police. the trio now says that's completely false they urged her to report the rape but she never wanted to. the stories author has apologized to at least one of

the friends for the way they were portrayed. >> nearly 1,000 people in washington state fighting back against new background checks for guns. they claim the new rule goes against their rights as americans. c advocates say it's about keeping guns out of the hands of criminals and keeping people safe. >> meanwhile in texas that state could soon allow the open carry of hand guns. governor elect greg abbott wants to!á-ñ expand the gun rights in new year. he will sign a bill allowing open carry. texas allows the display of rifles and shot guns. they banned the open carry of hand guns. >> the fight to keep kids off of nicotine could be going up in smoke. they are smoking a lot more e cigarettes than we thought. more than 25 percent of high schoolers in connecticut and hawaii tried the electronic

smoke. those numbers drastically slower than 4.5 percent cdc first reported. >> saved her children. alter fying order dell. >> use the side of your fist against your stomach above the belly button. tell me when you are ready. with the other hand skrab yogra fist and jerk inland adian -- i upward. >> how they come together for an ir replaceable gift. >> the ten commandments get taken down now students are striking back.

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>> protests against police brutality turning violent. we are with teresa on the brooklyn bridge to hear the latest. upwards of 30,000 people took to the streets this weekend as part of the millionth march. they are demanding justice for eric garner, michael brown and others who have been killed by police. much of the displays an the rioting happened on the brooklyn bridge. that is where one of the incidents occurred. he is accused of inciting what is called an incredibly violent

event that resulted in the brutal attack of two new york police department lieutenants. after the official march ended they were hanging around on the bridge and according to police he tried to pick up a metal trash can and hurl it at police. when they tried to arrest him the other protestors around him came in and tried to help him out. he ended up fleeing but what happened next is all of those froesers turned on police. that's when the lieutenants were brutally beaten. they found hammers ski mask and his school id inside. they say whale he didn't physically punch the others he incited violence and had a bigger crime planned. >> as long as the protests are nonviolent we will continue to police the events, but we have to draw the line when our officers are assaulted.

there is a big meeting today with the police department. some of the top commanders will be meeting with the top grass. so far it has been largely peaceful but perhaps last night and saturday night may have been a game changer. i will send things back to you in the studio. >> teresa priolo live for us. thank you. hot chocolate almost turns deadly for a mom when she chokes on marshmallows and can't breathe. >> place the thumb side of your fist above the belly button. with your other hand grab your fist and quickly jerk inward and upward. do it now. >> so calm and grave. neither new the heimlich han you've b -- maneuver but they still saved her thanks to a calm 911

dispatcher. a student on strike a freshman in ohio is skipping after a plaque was removed from it the hallway. the principal ordered it taken down after similar displays were challenged at nearby schools. now this one student says his message is worth the consequences. >> i am attending class because by law i have to attend class. >> will he not be punished as long as he doesn't disrupt his classmates. >> a magical trip to the north poll. they took a short flight and then getting a special meeting with santa claus. an airport hangar was transported into a winter wonderland. they have playing games meeting with santa. this is one of many fantasy flights for children who are

sick or from low income communities. >> we are so thankful to everything we have and this family is so important and for them this time of year to do this is for us awesome. >> this is the 13th year united is offering the special flight. the time now is 30 minutes after the top of the hour, the hack attack fallout getting worse who may be first to follow their job. why two

>> a seeing in sydney. a hostage situation still underway. those held up forced to hold the islamic flag. how the u.s. is responding.

>> three dangerous inmates who broke out of prison back behind bars. the details about their escape and how they were finally caught. >> a super shocker. the super bowl could be canceled? it could all be because of congress. "fox & friends first "fox & friends first" continues right now. >> good morning toy. welcome to "fox and friend first. i am heather childers. >> i am ainsley earhardt. a suspected terrorist armed with a gun holding more than a dozen hostages inside a cafe in sydney, australia. >> the sandoff going on for almost a day now when the hostage taker holds an isis flag. joining us now is gregg palkot. good morning, greg. >> heather, ainsley it is monday night in sydney, australia now. we are approaching 12-hours into

the hostage situation. the hostage taking with at least a reference to the islamist group isis. at this point no injuries no deaths no injuries. it is a busy morning period in that town. a man walked into a cafe, at least 13 people were there, maybe more. the hostages were forced to stand at the window. one held a flag, a banner with an islamic decoration written on it. they were claiming there were bombs inside the cafe. those have not been confirmed at all. six-hours into the seeing -- siege. apparently they had escaped. a real isis flag being brought into him and a talk with australian prime minister tony abbott. >> here's a little bit of what

the prime minister had to say today. >> this is a very disturbing incident. it is profoundly shocking that innocent people should be held hostage by an armed person claiming political motivation. >> as you can image a massive police presence kicircling the cafe the whole downtown area of sydney has been evacuated. we were told a few minutes ago negotiations are continuing between the police and the gunman. they do not want this thing to go bad. they are willing to play this out. australia is an ally of the united states in the latest cwa on isis. they had fighters there, there are boots on the ground we believe of the australian special forces. there is this over tone of a link to the isis group. again no firm confirmation just references to the group right now that this could be bigger than just the hostage taking

which is what the police say they are calling it as we speak. back to you. >> gregg palkot. ing thanks. >> the hostage situation in sydney playing out. americans evacuated from the area as the state department issues a warning for citizens to remain vigilant. here at home new york city cops are closely monitoring the situation. >> doug luzader is joining us with the story. >> both the white house and sta state department have put up statements on this. for the state department this threat is very real. take a look at the map of sidnesidne -- sydney. this is where the hostage situation is taking place. the u.s. consulate is over a block away. that's why the facility has been evacuated. here's part of a statement put out who said quote i can confirm the u.s. consulate general in sidney has been crack waevacuat.

a small group of consulate staff continues to work at a secure location. we don't yet know the motives behind all of this as greg just pointed out. austral australia's prime minister suggested there is a political motive here. there's no way to say what they are making of it. president obama was briefed on this last night during his counter-terrorism advisor lisa monaco. we have confirmed they are watching this situation play out very closely. >> doug luzader live for us this morning. thank you, doug. breaking overnight three alabama inmates who broke out of prison are all back behind bars this morning. the prisoners two of them accused of murder happrehended y u.s. marshals following a daring prison break saturday. all three of the men recaptured at this point without incident. one hiding out at his grandmothers another nabbed at a movie theater parking lot. they escaped making a guard believe one of them was sick.

they over powered the guard and took the keys to the front door. >> a suspe-- police charged mar hart with shooting one of the players. he was arguing with someone in the parking lot before the shots braini range out. police are investigating but they say no other arrests are expected. >> we are learning sony executive pascal will likely be fired after hackers exposed em bare racing often cruel comments about celebrities. the other under attack about the james bond film. an early version of the xreen play is along earl i documents. as all of this unfolds sony wants the media to stop talking

about it. e-mails are privileged communications and sony does not consent to their release. let's keep talking about this. do you agree with sony the media should not report on leaked information? head to the "fox & friends first" facebook page it is #keep talking. time now for look who is talking dick cheney doubling down on his support for the cia interrogation program. >> i have no problem as long as we achieve our objective. it is to get the guys who did 911 and prepare president united states for another e. we got authorization and just disdepartment. it worked i we did capture a lot of peenor guys.

>> to some extreme weather. a rare december tornado touching down in kansas southwest of wichita. no one injured and no damage reported. >> out west in drought stricken california more rain is in the forecast. it won't be as intense as the pineapple express which caused major flooding and exercise. >> the bay area can expect up to two inches this morning a little less than that as the front moves south. another system expected on wednesday could dump up to 8 inches of rain in northern california. >> an obama family christmas photo with 8th >> the president and his family attending a benefit concert for the children's national health system. posing with the health ofs the

christmas features darius rucker sa south aerial yan gnaw's own and hunter haze. >> we are big fans. what are the chance as soon as two baby girls defying the bodz with an unusual birthday. they entered 10:11. hazel born in cleave lapped quincy on the right they are felling lucky. my sewsest friend. >> go. >> coming up a super shocker, the super bowl may be canceled. why congress would be to blame. a new battle on the war on kris nas. why this nativity is igniting a brand new fight. >> ladies' we have the proof

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>> holiday shop he weres watch in horror as a young boy's foot gets stuck in an escalator. people tried to help free the boy. >> you heard screaming and everybody started running towards the elevator. i could tell something was going on i we know out there myself as he was totally stuck in there. >> no word on how badly his foot was damaged with ybut we are to

was not amputated. still unclear how it happened. >> that's what we want to know. >> a pricing glitch has amazon shoppers using purchases next to nothing. they were getting head phones mattresses and toys for just a penny. most orders were canceled when amazon realized the mistake. but the owner of one company says she is worried the mix um will cost her 50,000 dollars. it will work with retailers to make things right. >> adrian peterson's lawsuit expected to be filed today. the player's association will act on behalf of the former minnesota viking. they are expected to challenge the impartiality of harold henderson the arbitrator who upheld the suspension of henderson until april of next year. >> could congress cancel the super bowl? loren simonetti from our sister network fox business.

>> there is a chance that super fu bowl 49 will not happen. head to arizona to attend it. the reason is congress and a piece of legislation you might have never heard of. the terrorism risk insurance act. it was signed into law after 9-11 and established a risk sharing partnership between the government am and the insurance industry. that means terrorism insurance available to businesses including organizers of supporting events like the nfl. see the most expensive disaster in the history of insurance was the terrorist attack 41 billion in claims. the government provide the financial backup for insurers by covering a portion of insurance the losses up to $100 billion. insurers have some certainty of their exposure. in return unless this act is

reauthorized by the end of the year, the clock is ticking, insurers have a right to cancel terrorism coverage after january 1st. football lovers hoping congress does not stumble on this one. >> don't miss loren on the fox business network. to find it you can log on to foxbusiness.com/channel finds finder. >> the time is 15 minutes of the top of the hour. is he or he, jeb bush opening up about a presidential run. >> it is one of the most popular holiday movies ever. >> how much do i owe you? >> oh, that would be 11.80, sir. keep the change you filthy animal. >> beau there's something y-- bt

there's probably something you don't know about the gangster movies in "home alone." the trivia. >> right now we want to check in with steve doocy to see what's coming up on "fox & friends." >> i like home alone but of course it's hard to not love it's a wonderful life. good morning to you ladies coming up on "fox & friends" an armed extremist takes australians hostage inside of a chocolate shop. we have the details from australia live. >> they call for the death of cops as they meet marches. donald trump joins us every pray. this is on your number one news network "fox & friends". .

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it is the question on every holiday travelers mind this year. why are plane ticket prices going through the roof? one senator is trying to answer that exact same question. >> why immediately when the price of oil goes up do the tickets go up but when the price of oil goes down the tickets still go up? >> new york senator charles schumer calling for investigation into high air fares. he wants answer as to why ticket prices are so high when airlines are making record prices. airlines forecast to pull in $25 billion next year. >> a nativity scene set to be unveiled at the texas state capitol today and some people not too happy about it. the display is being funded by private donors meaning there is no state

sponsorship. >> private organization privately funded of citizens so this is not a government expression of religion in any way shape or form. it is a group of christians coming together coming together to express the joy of the birth of price. >> that is not enough for some. they want to make sure it is clearly labeled as a private exhibit. it is set to be on display for one week. >> exodus, gods and kings dethroning hunger games from the top spot at the box office. >> over 400 years of slavery. >> the movie made $24.5 million bumping the third hunger game films to second place. it had been number one for three weeks. penguins of madagascar slid into third place with $7.3 million. >> time for your 5@5:00.

facts you might not have known about christmas movies. miracle on 34th street, one of the quintessential christmas films actually hit theaters in may and was marketed as a love story. jack skelton made his debut earlier in beetle juice. the grinch was supposed to be in black and white and the producer fought to make it green. as you can see, he won. >> how much do i owe you? >> 11.80, sir. >> keep the change you filthy animal. >> that is not actually a movie. it was made exclusively for the classic.

>> go shoot your eye out, kid. the time is eight minutes till the top of the hour. it is a facebook update users will like. the site's plan to stop you from making embarrassing posts. >> the surprise of a lifetime. the moment at the browns game that went far beyond the fourth and the whole stadium is in tears.

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it is three minutes till the top of the hour. before you leave the house, here's what's happening today, right now police are negotiating with a suspected terrorist armed with a gun holding more than a dozen hostages inside a cafe in sydney, australia. five people escaped earlier in the day. today is the deadline to sign up for obamacare. people looking to enroll have until midnight tonight to do so. about 400,000 people actively renewed their plans. the biggest names in country music taking the stage tonight for the first ever american country countdown awards in nashville. florida georgia line is hosting with performances from carrie underwood. fun begins at 8:00 p.m. eastern on fox. >> and we will be watching. >> yes. >> time new for the good, the bad, and the ugly. up first the good. it was much more than football at the cleveland browns game.

an emotional reunion between army staff sergeant anthony wagner and his two kids. wagner had been deployed to afghanistan for nine months. next the bad. ladies, you are not going crazy. your guy really isn't listening to you. a new study shows the average man only tunes in to his partner's conversations for six minutes at a time. why? they just aren't interested in the same things that women are. do i need to repeat that for our male viewers? finally the ugly, never post embarrassing drunken pictures again. facebook wants to create a program to prevent users from uploading intoxicated selfies. it would work by scanning the picture to determine how drunk the person is and then ask do they really want to post it. don't forget to keep talking about the sony hack. do you agree that sony should not be reporting on

the leaked information? log in to our facebook page to #keeptalking. >> hope you had a great weekend. new week on tap. >> finish that christmas shopping. >> frocks frocks -- "fox & friends" starts now. bye. >> good morning. it is monday, december 15. i'm elisabeth hasselbeck. sydney under siege. at least a dozen people taken hostage by an armed extremist. now the united states on high alert. are we next? we have developing details for you. >> protests turn violent over the weekend here in new york city. >> what do we want? >> who do we want? dead cops. great. one man brought a bag of rallies to the rally.

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