see car insurance in a whole new light. liberty mutual insurance. >> we start with a fox news alert. we are waiting to hear firsthand from allen gross, the american who is back on urz soil freed after spending five years in the cuban prison. >> this as president obama shifts the american policy. saying it is time for new relations with castro's cuba. we are waiting for it. it is all "happening now". >> all eyes on the white house as we get new insight in the presidential race. but horr foying new footage in a deadly hostage siege.

now, more questions than answers on the sid no attack. >> and why was the armed extremist with a violent criminal record able to walk the streets? >> and? >> oh, my god. it is coming in. >> it is getting higher. >> a woman trapped in her car in what could have turned out to be a watery grave. >> people need to get out. >> the heroic rescue that saved her life. it is all "happening now". >> first, begin with the release of allen gross after five years in a cuban prison and a huge historic change with the policy change of united states toward cuba. president obama announced normalizing relations with the castro government. i. eric shaun in for jon scott.

>> and allen gross is now free and back on u.s. soil. he is dow to speak in about a half an hour or so from now. we want to hear from him and what his experience was like there. his freedom part of an agreement to release three cubans. that setting a huge shift in our policy toward the communist nation. hi, there, ed. >> it is not a full lifting of the u.s. embargo of cuba because that is done by. that is a u.s. embassy that opens up upon in havana and there are diplomatic relations and the door opening there. and hundred worth of tobacco and cub an cigars and to

america. it comes after a historic phone call. the president trying to address it up. normalizing relations and republicans like marco rubio not buying that and saying there is nothing normal about cuba's human rights record and known as a state sponsor of teraror. ntoday, allen returned home and reunited with his family at long last. allen was released on humanitarian grounds and separately in exchange for cuba agents. cuba released the agents. >> the u.s. can be and barak is

the worst negotiator that we had as president since jimmy carter and maybe the modern history of the country. >> remember there was another high profile prisoner swap involving & it is repeatedly referred to as pentagon and details and how it went down. >> the negotiations have been apparently going on for a year. >> the white house said gross' release was not related to that prisoner swap. how are they making that agreement? >> the president said we are glad that the intelligence agent and allen gross and the aid worker is released. and separately the cuban spies were released. and even powerful demtems are not buying.

that men endez. saying trading mr. gross for three convicted criminals sets a dangerous precedent and. using americans serving overseas as bargaining chips. it is rewarding castro for the communist government bad behavior. you are mentioning other parts of this. and pope francis had written letters to president obama and president castro, seeing an opening here and the vatican brokered a secret meetings that happen in canada to try to move the ball forward on this. >> like a spy novel. ed, we'll talk to you later. >> reporter: thank you. >> and the new cuban policy means politically? daniel harper which is the on

line editor of the weekly standard. daniel, welcome. i mean, this is enormous political. especially for the anticuba refugee. senator rubio called it absurd. >> it is a massive deal. president obama has to explain to these people who suffered in the hands of castro why america has decided to grant cuba demand and release cuban prisoners for what we are getting in return. many americans will be happy to so the return of allen gross. as senator menendez said it is putting a high price on americans abroad and might encourage the capture of americans so they can be traded for something political as has been done here? >> aaron, will it help the

democrats? >> polls are old on this issue at this point. five years ago, washington post and abc news poll showed two- third of the people wanted relations and less for lifting the embargo cho which we are not talking about right now. and on the surface there appears to be support for doing this. but when it happens, and when president obama is involved and all of the machinations occur things can change. republicans are lining up and once they make the argument that this is appeasing a communist regime this will resonate with the people open to diplomacy. >> and two conflicting views from jeb bush and hillary clinton. the former governor said there should be no talks with this

repressive regime and hillary clinton said or wrote about in her book hard choices. near the end of my tenure, i recommended to president obama to it look at the embargo. it was not achieving goals and holding back our broader agenda across latin america. i thought we should shift the onous on to the castro to explain why they remain undemocratic and abusive. >> daniel, hillary behind the policy. how will this affect her run for president? >> she will have to support the policy going forward. we haven't heard from her directly on this deal. the last president to sign a cuba empargo was president clinton. they are in different camps on this issue. the liberal democrats like hillary clinton and barak obama in one direction and jeb bush and marco rubio and the republican field on the other

hand and other direction. i would suggest that republicans might be more inclined to support this if it was not predicated on other weak actions that president obama took it. the fact that he did the executive action. castro mentioned it in remarks in cuba, i read. and the fact that he's looked weak abroad, makes the policy harder to support even for americans that might be inclined to support this under a stronger president that projected american values abroad. >> does this make the president look weak? >> i think that is a big part of this. daniel makes a good point that foreign policy has been arguably barak obama's most difficult thing. every since osama bin laden was killed, there is one thing after the other whether it is middle east or cuba now. and so the question is, how much

confidence do the american people have in obama to make it happen and work? and the devil is in the details and things go wrong and you don't know what will happen. and it is a big risk for the white house. >> and speaking of jeb bush. he could face an uphill battle for the nomination. and looking at a recent poll with the republican voters showed mitt romney in the lead. and jeb bush second and on the democratic side. hillary is way out front. schopercent. and elizabeth warren getting percent. and shoes half would support hillary if she run and jeb bush only 31 percent. what does this men? >> early polls tend to favor those who are well known. mitt romney is well known and a

lot of policy ads given the fact that he ran for president of the united states. but that doesn't translate to campaign for him. i don't think he can project that support in a viable campaign especially with jeb bush taking the establishment mantel. and on hillary clinton goes, she needs to be concerned about elizabeth warren. as long as warren doesn't jump in the race, she faces a different and clear and open field. she's right to wait as long as she can and not get too far ahead of herself and the rationale and running for president and she needs to figure that out. >> and i mean, aaron, is it for her to get too far ahead and peak too son? another poll show that she would defeat jeb bush.

>> she is the best known candidate out there. republican or democrat. but the lead as big and i think she would be leading regardless, i think because of the other candidates in the fold. elizabeth warren said she would not run for president and joe boyd bide is not seen presidential by democrats. they don't so him as a viable candidate and so until there is an alternative for hillary clinton, i think she holds on to the win and i don't think she will win by first points but comfortable given the field of candidates. >> and thank you for your insight. and man, this new cuban policy, and fasnafting to see how it plays out over the coming days. >> and of course, we'll hear from you. and what do you think of a third bush and jeb bush and hillary clinton match up and go to fox

news.comslash happening now and click on america's asking. bush v clinton or clinton v bush? >> and ahead of the christmas travel rush. and spike of deadly terror attacks overseas how safe should travellers feel now? we'll talk to the head of the tsa. that's coming up. i knew i needed to see a doctor. my doctor said, "let's try lyrica." lyrica has helped relieve my pain. it's known that diabetes damages nerves lyrica is fda-approved to treat diabetic nerve pain. lyrica is not for everyone. it may cause serious allergic reactions, or suicidal thoughts or actions. tell your doctor right away if you have these, new or worsening depression, or unusual changes in mood or behavior. or swelling, trouble breathing, rash, hives, blisters, changes in eyesight including blurry vision,

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>> he dragged his heels on this issue for years. cuomo decided against fraking in his state. and this comes after a report from a new york health department, the governor saying that he does not believe that fraking is especially safe and there were many red flags and unanswered questions and came to

a final decision on whether or not he wanted his family to live near an area where fraking was held. many people in upstate new york have some what wanted fraccing and others are against. it it is allowed in pennsylvania and helped that state's troubled economy enormously and there are calls to allow fraking in new york state. but as of right now cuomo is a against allowing fraking in new york state. >> in the meantime, millions of are getting ready to travel for christmas. high alert after recent terror attacks overseas and al-qaeda linked groups were plotting attacks on european cities. how is the tsa working to keep us safe in the busy holiday season. kathryn has more.

>> reporter: thank you, heather, fox asked the tsan administrator who spent 27 years in the fbi, whether the threat to u.s. passenger jets diminished and the bombing campaign in syria and iraq. some groups have worked with bomb maker that specialize in nonmetallic bombs. and that is why procedures implemented in july for passengers to turn on phones and computers remain in place because of the threat of nonmetallic bombs remain source. >> with that being said, we have better insights in to who the potential bombers are and making devices and things like. that we remain concern that there is active plotting going on. >> tsan officials are not

expecting big changes in the checkpoint. but if they are changed they are driven by new and specific intelligence. the tsan administrator describes new classified rules to flag them on the travel history before they check in for u.s. bound flights. it was days before the hostage situation in sidney and fits the profile of the lone wolf attack. it is not this kind of an attack that keeps pistol up at night. >> it would be a concern of lone wolf si multianous attacks. >> they have transitioned from the tsa from one size fits all to risk based strategy driven by intelligence. and his assessment that the attack on jets remains

a priority and really something given that he worked in law enforcement or tsan over three decades, heather. >> either way, frightening to think about. thanks. >> and frightening to think about what happened in pakistan. that country is in mourning after the monstrous attack by the taliban targeting children. heart breaking images from inside of the school where the taliban set teachers on fire and shot helpless students in the head. >> and the footage from the shootout in the sidney cafe. and new information about the gunman that is shocking security experts everywhere.

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>> pakistan a nation in mourning. most of the children killed in the terrorist attack at the school. the media is now aloud inside of the army run school. these images just one day after the horrible and gruesome taliban attack. greg joins us with more. >> reporter: in addition to the 148 killed in that horrific attack in a school, 120 were wounded many of them badly and many dying from their wounds overnight. we got a first view inside of the school and it was a scene of horror and the carnage happen in an assem blow harmed.

they sprayed them with bullets and shot them one by one to make sure they were dead. classrooms and stairways were covered with blood and body parts. many of the victims were young teenage boys. before commandosil killed the terrorist. there are three days of national mourning. mass burials of the young people and nine teachers killed, and one grieving father summed it up. they finished in minutes what i had lived my life for, my son. pakistan prime minister again vowing to step up the military offensive against the taliban there. this act widely seen as a retaliation. they have e enstated the death penalty and talking about joint efforts against the militants. both countries are are critized for being too easy to the

taliban group. and president obama is branding the attack as depraved and the u.s. has a big stake in all of this. the pakistani taliban claimed attacks on u.s. soil and driving u.s. forces out of the region and in fact on sunday, militants went across the border in afghanistan and attacked the forces and they backed up the third innerphantry division u.s. army and just to show how horrid this attack was, the taliban colleagues in afghanistan, even they branded the act as inhuman to attack the children, it was that bad, back to you. >> so revolting and unspeakable. >> for more on that. ryan is here, security analyst. is this one act enough to turn

pakistan against terrorism? a lot of folks have talked about how pakistan embraced terrorism groups. >> no, they are fighting the taliban branch of pakistan. the afghan taliban operates a command headquarters from pakistan. other terrorist groups that contribute continue to run schools and hospitals and operating as a state within the state. if they destroyed all of it in pakistan. you have them educated in the religious schools to believe the same type of a thing. >> even if they were to do that together, they could impact, couldn't they? >> sure, when you disrupt a enemy head quarter ares it is a good thing. mala, la, the young brave girl

almost killed because she wants girls to be educated. 40000 private schools banned the book because they said she belongs with the west and not with us. >> a problem. there i want to ask you about australia, the big thing in the the news today, that he was on the terror watch list for a point in time and taken off the watch list back in 2009. is there any way this could have been prevented? >> potentially if he was on the terrorist watch list. >> that mean he would be watched 24 hours a day and that is expensive and they will go with the person most likely to create and commit a terror act. >> this is the thing about sheik heron, he is not a sheik. everyone bon anyhow about the guy and knew he supports terrorism. even if he was not on the watch list, you had muslims callingly

in saying you need to watch this guy. the fact he was not on the watch list and he believes in this thing. it makes you want to lose hope. it is frustrating. he had a criminal record and i can't come up with a good explanation of him not being on the list. maybe he went around saying i am nonviolent and i am a peace activist. and the way people read. that that means you are not violent. he was being deceptive. >> right now, we are standing by to hear from allen gross. he is the american citizen who landed on u.s. soil, after spending five years in the cuban prison. expect him to walk up on the podium on the left to talk about his experience and what he went through and hopes. and we'll have reaction from the

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>> a fox news alert to bring you. we are waiting for allen gross to speak out the form state department contractor who landed back in the united states after five years behind bars in cub a. there is a briefing scheduled in the white house. mr. gross was in cuba as part of a state department program to install internet access for citizens there. how are cuban americans reacting to the news? phil keating is in miami's little havana neighborhood,

phil? heather here, do we have you? so many cubans came to the united states fleeing the communist regime. they will not be too happy of the normalizing of relations. and we'll get back to phil soon as we can. >> this is becoming a controversial decision and we'll have more of a reaction on it. the president saying we have an outdated approach. the president spent 45 minutes on the phone with castro. so more on the impact we'll go to the advisor for the ambassadors. >> rick, does this reward or punish the dictatorship that is an enemy of america?

>> i think what we will hear from phil and the cuban community it is it a mixed reaction. my question, first of all, we have to say welcome home to allen gross and what we hear from him is an amazing tale. and we are so happy he's home. but there are larger u.s. policy issues to consider here. and that's where i have a problem with once again, we are seeing the president of the united states dos prisoner swap. they say allen gross was not part of the prisoner swap. it is not part of the swap. but the president said in his remarks, he didn't take questions from the press, he said specifically that he called castro to finalize the last deal and the details for the allen gross swap. and so we have clearly seen it is a swap and that is a bad precedent and sends a message to

other regimes and take american prisoners because you might get an american embassy. >> the president said the embargo led to isolation and not only they are closed off but it is time to help the cuban people. does this do that or help the cuban government? >> i think that is it a great debate. we have had that debate over the last six years and seen both sides put forward their argument. and if increased commerce was the thing that worked, then we would see the chinese people having full access to the internet. we don't see that. we see google and yahoo going in to china. >> you think that that will happen here in >> it is not the reason. >> the president called for an

end for cuba to end the restrictions on economic and political activities. is that going to happen under the castros? >> no, it is not going to happen. and we should have had the focus years ago. and right now, eric, is not the time. over the last several weeks, we have seen gas prices, going from $100 a barrel will to around $50 a barrel. venezuela and russia can no longer support russcuba. and now president obama throws them a lifeline and do a prisoner swap with it? if we wanted to have increased xhoers debate we should have had it. not when we are on the brink of winning. >> ten minutes or so for allen gross to speak.

he was fried and rick stick around and we'll talk about cuba being on a state listed sponsor of terrorism just like iran. and we'll get back to you after allen gross speaks. stay with us. >> it is a wrap that the congress is over. they packed it in for the holiday recess. and mike emmanuel is live with us on hi, there, mike. >> a number of key issues were resolved and law makers passed a bill to make sure they don't face a retroactive tax hike. and for example, tony blanken was confirmed number two in the state department. 55- 38. and senate republican leader that will take over as majority leader offered a preview. >> we'll be starting next year

with a job creating bill that enjoys bipartisan support. first item up in the new senate will be the key stone pipeline and the holden bill and open for amendment. >> mcconnell said he hoped there would be energy- related amendment. harry reid didn't allow amendments. and those who negotiated the follow-upping extension are pleased now that president obama signed it in law. the package prevented a government shutdown and avoided government on autopilot and will meet compelling human needs and a separate bill designed to have government cover the part of terrorism- related process was stopped by senator tom coburn who called it a give away to private industry.

>> unfortunate but his objection will kill trio. and that's the fact. i can't accept his modification. >> new congress starts work on january 6th. >> thanks. >> and one woman, literally up a creek, when she had to swerve and take a look. ended up like that. and hear her 911 call for help. and sony hackers take it to a new level with an alarming terrorist threat. [ narrator ] mama sherman and the legion of super fans. wow! [ narrator ] on a mission to get richard to his campbell's chunky soup. it's new chunky beer-n-cheese with beef and bacon soup.

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go long™. ♪ >> more reaction on the president's surprising and wide ranging actions on cubasm we'll talk to the senior communication advisor for the vat vat and the pope's involvement in all of this. and hear from a famed america chris kyle about the new movie american sniper and talked about chris' legacy and bradley cooper's performance in the interview with her. join us at the top of the hour. >> he was looked up by the castros for five years and a former u.s. contractor just landed back in the u.s. allen gross, we are waiting for live comments from him. how are cuban americans reacting to the news especially the

families, who had to flee with everything they had. phil has the reaction. >> reporter: how are you? >> well, i tell you this, no matter how you feel about the 55-year-old trade embargo against cuba. here in the land mark little havana in miami, southwest 8th street. this is a place for decades that elderly cubans many exiles fled in the early years of the castro regime and taking power and establishing the communist nation and government over there in cub a. they come here and railed against the castros. two men have signs there decrying what the united states under president obama did today. and pursuing a normalization of relations with cuba. this man support the continued

trade embargoes and hard line on cuba and a way to somehow force the cubans to get rid of the castros if that would be possible without just fidel and ra oul passing away on their own. we saw feelings that were mixed. typically younger cuban americans have been more progressive toward ending the embargo. we do have sound in house in new york. and we'll walk over here. and first before we do that. look at the traffic here. it is packed and everyone heard about what is happening here. normalizing relations and putting an embassy in havana and everybody is coming down.

you are cuban- american woman? >> yes, sir. >> what is your name. loada. >> and you are not pleased with the action in dc? >> no, of course not. president obama is well known for bad deals. let me tell you, he exchanged one low ranking soldier for four top taliban leaders. what is this? i am against it because for 55 years, they have castro held cuba as hostage as a whole nation and only a small group of a- list americans will do business. and they open relations and where is china? >> thank you very much. >> bottom line here, allen gross whose wife said for the past several years urging the state department to get him released.

he's back on american solid and first day of hanukkah in a moment and we expect him to finally face the cameras and say his first words back on american soil. >> and a lot of intense passionate feelings over this considering castro's history of pers kougz and denying the freedom and rights of the residents of the island nation who have been in prison for many decades, since 1959. heather? >> the sony hack attack is imploding the movie remere. and a major theater chain pulling the film. others wonder if it will happen to them. >> there is a founder of safe life. and we talk about this. there is no active plot and yet the government considers it

a national security threat. isn't that what the hackers wanted? >> you nailed. it what they got without firing a shot. they got people saying, we'll not go to the movie theaters and there is something very real and now the mere threat of blowing up the theater it causes problems. they accomplished the objection. >> and the lawyers can say we don't want to take the chance. >> it was a good idea? >> the companies have to accept their own risk. i am not in a position to reduce them. if there was a hack attack and someone has a threat. that would be real enough to make a decision. if it is was an idle threat. this is where people need to evaument the safety. this is a game- changer and i

wont want to risk as a company right now. >> morgan, it illustrates the vulnerability of companies. i wonder if the cyber security job is simply the defense secretary, they will at some point be the version of sarbanes oxley for security that will require ceos of publically traded companies to come out and sign off that they've taken reasonable steps to protect people's personally identifiable information, access of shareholders, things like this. this is just getting too out of hand. >> morgan wright, we have to cut it short. we have a lot going on with the cuban story. talk to you soon. >> you get. >> what would j.f.k. say? well, normalizing relation with cuba has been decades in the making, and the president making a stun and surprising announcement earlier today. in a few moments we are awaiting

to hear directly from alan gross, the contractor who was imprisoned by the castros by the past five years. his first words as a free man here in just a moment. >> i'll believe it when i see it. female announcer: sleep train's interest free for 3 event!

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the contractor imprisoned in five years. advised four former u.s. ambassadors to the united nations and is a fox news contributor. you know, rick, i'm reminded of what j.f.k. said about fidel castro and the castros. he said that castro should be condemned. i think he is a source of maximum danger and in 1960 in october j.f.k., the forerunner of our current president, said "the first thing that we have to do is let the cuban people know our determination that they will someday again be free.

now what, you know, 50 plus years later the person who holds the oval office, the legacy of j.f.k., is not doing that, but, instead, beginning normalization of reegss. what do you think john f. kennedy would have said? what does this mean? >> that was a long time ago. not much has changed inside cuba since then. we still have the people inside cuba that do not have the freedom. they, for instance, didn't see president obama today talking about normalization, and they probably saw a very trunkated version of what castro said. we don't have the freedom wez had hoped for, and i think there is a healthy debate on how to get there. how do we make sure that the cuban people have greater freedoms? the one thing that we should all be able to do is separate our absolute appreciation and

gratefulness for having allen gross home. what we're going hear in a few minutes is a harrowing story. you know, this is a usa id contractor who is trying to bring about greater access to the internet for the cuban people. we shouldn't forget that. he is doing really god's work there. we're going to be excited to see this man's home. i'm sure his family is ecstatic right before christmas. however, u.s. policy is different. our u.s. policy should not be encouraging government to grab u.s. citizens and then have a negotiation. this idea that the president of the united states is going to negotiate with a communist government to somehow trade prisoners is just a really bad precedent. we are going to see this come back, and we've already seen it in the bo bergdahl taliban exchange which president obama announced from the rose garden at the white house, and here, again, he has this announcement

on allen gross and the others in a white house announcement as well. again, we're very happy that allen is home. >> there's the scene, and we just saw them holding hands. five years in the making. we'll be right back. you total your brand new car.

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welcome to the real story. i'm gretchen carlson. allen gross has come to the microphone. let's listen in. >> today i want to acknowledge the extraordinary determined efforts of my wife. 44 1/2 years we've been married. and my lawyer and personal moses, scott gill and their efforts to restore my freedom. they have my endless gratitude, love, and respect