>> remember the guy who broke up with his girlfriend, he had a ticked around the world. he needed to find another woman with exactly the same name? he found her and there she is. but she's got a boyfriend. but she's going to+++y

show the flip. bill: sony said we respect and understand our partners' decision and share their interest for the safety of employees and theater-goers. martha: the up s. said they have linked the attack to north korea and pyongyang. >> reporter: north korea isn't the laughing stock it was a month ago. what comes next. will the u.s. respond? will anyone seat movie everyone is talking about? sony takes an $80 million hit. they say the movie is dead. the decision comes after every major theater chain walked away from the chain after the hackers threatened violence again anyone who goes to see the film.

will the u.s. government step in. an act of war everyone says deserves a response. >> no theater is going to play it. that's obvious now. if you go to video on demand, whoever is putting it out on video on demand runs the risk of being attacked by the north koreans, too. bill: what evidence is out there that north korea is connected here? >> reporter: the attack is similar to one in 2013 against south korean banks. they used the same software, malware and a computer in bolivia to mount attack. at first experts didn't think north korea had the capability.

it's not clear if they had inside help from a former sony employee. this went from hacking to blackmail to a foreign government making a terroristic threat inside the u.s. >> they have won. you will see more movie not be made because they might be controversial. >> reporter: others worry about memoirs of defectors in north korean labor camps not being published. billmartha: it's incredible the reaction to this after rob low tweeted, wow, every one caused, the hackers won. an utter and complete victory.

>> hard to believe this is the reaction. former gop presidential candidate newt gingrich said no one should kid themselves. with the sony collapse america has lost its first cyber war. this is a very dangerous precedent. think about the ramifications. now you have steve carell with a movie cancellation that wasn't even in production yet. it's unbelievable the government hasn't said don't back down on this. people may be upset about what's in the movie. it may be a stupid movie but you have to produce it. bill: in the sony the same they said they respect the right to free speech and expression. this is the only thing that brings newt gingrich together

with hollywood. the controversial ending on the film. spoiler alert. kim jong-un dies in spectacular fashion. two members of the state department approved the final scene. so the government was involved which apparently shows the dictators head exploding. emails show the up s. government believed it could be useful propaganda against the north korean regime. we heard from a lot of people, should sony release this film? talk to us on twitter for the next couple hours. a lot of angles on this thing ht of it yet. martha: some people think america caved as well. the backlash growing after president obama's bombshell announcement that the u.s. will restore ties with cuba after 54

years. listen. >> what president obama has done today, normalizing relations, that will not bring the cuban people closer to democracy. the one that will not change is the cuban come mist regime. these guys are not going to change. >> i think it stinks. i think it's wrong. i'm deeply disappointed in the president. to hear this has been in the works for a year and to have no engagement or conversation or consultation is pretty upsetting. >> the president of the united states made every american serving abroad less safe today. if you want to attract unilateral concessions from the united states, all you have to do is hold an american hostage and be patient.

martha: what does the united states stand to gain in this deal if anything? >> reporter: not nearly enough according to critics. that's at root of the criticism of the president. yes we have gotten the release of 53 cuban prisoners and the release of alan gross and one on the per american detainee who was held for almost 20 years. but president obama extracted no meaningful concessions on recall castro's grip -- raul castro's grip on that island nation. the more we give they get. the castros win and freedom and democracy lose. >> policy that we had in place

for the past 50 years has done more in my view and many's view to keep the castro regimes in power than anything we could have done. so i just am pleased these actions have been taken. i think it will improve the lot of ordinary cubans and it's good for americans as well. >> reporter: aei's douglas irwin wrote ronald reagan understood nothing was more upsetting to communist nations than to allow the exchange of goods and pool and a ideas and information to flow freely. martha: senator menendez said they hadn't been consulted. >> reporter: any chances of lifting the full embargo on cuba

are very, very slim. we heard from speaker boehner. relations with the castro regime should not be normalized until the cuban people are given full freedom. ' i don't think we are looking at any prospect of that embargo being lifted on cuba. bill: alan gross talking to reporters after arriving yesterday around noontime thanking his wife, thanking president obama and his lawyer threading is no place like the usa. >> i'm incredibly blessed finally to have the freedom to resume a positive and koon struckive life. but for now i'll close with a quote from one of nelson demille's characters. it's good to be home. thank you and i wish you all a

happy holiday season. bill: gross acknowledging it was the first day of hanukkah and said it is the first one he will be celebrating in a long, long time. martha: the white house pushing back against the claim that the holt thing was a prisoner swap to get mr. gross home, trading him for three cuban spies jailed in the united states. >> reporter: you are not going to stand there and say alan gross' release had nothing to do with the release at the the same time of three convicted cuban spies. it's all part of the same deal. alan gross is released, three spies are released. >> you also had a cuban released at same time. you can't say the alan gross release is understand related to the release of these three spies. >> yes i can.

martha: if they didn't want that to be the appearance everybody would have in this country they could have separated it by a few weeks. they could have brought alan gross home, then release them a month later. bill: the good thing is the intelligence that will be going to cuba through telecommunications and the internet. if that happens you will open up a new world of technology. but you have no way of of knowing whether the cuban government will follow through with that. one senator calling the policy change a quote tragic mistake. >> after six years we have seen a pattern where four friends and allies no longer trust us and our enemy no longer fear us. first was russia. then it temperatures iran, now it's cue d then it's iran, now

it's cuba. >> there is a lot of reaction on this to both side. liz cheney will join us with her reaction on this later. martha: has kim jong-un won? did we just lose the first cyber war? bill: vladimir putin is under fire and the ruble has collapsed. why he's pinning some of that blame on the united states. but specifically what he he is to blame. plus there is this ... martha: that's terrifying. have you seen it in chaos on an american airlines flight. passengers tossed around in their seats. they are praying and screaming.

this went on for an hour. >> it was surreal. it was like a crazy hollywood movie.

>> the cyber attack is very serious. we are investigating and we are taking it seriously. we'll be vigilant. if we see something that we think is serious we'll alert the

public. my recommendation is people go to the mostes. bill: the u.s. may have lost our first cyber war. tucker carlson, how are you? good morning. the president also said there is no credible evidence of a serious threat to theaters. where are you on this? >> we didn't lose a cyber war. we lost a war of will, principle and courage. hollywood caved to a fascist dictator. everybody who faces unpopular opinions faces theoretically threats. the question is are you going to cave to them or not? not just at the last minute. but at the beginning of the process sony executives were pressuring filmmakers to tone down their treatment of kim

jong-un because it displeased north korea. they are taking orders from the fascist government of north korea. bill: mitt romney said sony picture don't cave. he suggests do it globally. ask viewers for a $5 contribution to fight the ebola. >> the politics of asia play into this. sony is a japanese company. it would make it difficult for japan to figure out the whereabouts of its citizens kidnapped by north korea in the 70s. the question is is this a blow

to the moral credibility of the united states, its cultural institutions and is it an ominous sign about the lack of political will in washington? yes. the obama administration is refusing to say in public that this was a north korean iniated attack when it was because they don't want the hassle. bill: it will be interesting to see if these emails stop now. >> if there are parts of this movie available online, pirated versions, will people run the offending portions? we are at the daily caller. we put it up on principle. you shouldn't allow a rogue state like north korea to determine what your news content is. bill: it's a movie.

gingrich said america lost its first cyber war. this is a very, very dangerous precedent. that's checkmate. >> it's not just about technology. it's about freedom of speech and freedom of expression. those are core american principles. if you cave on those, what's next in. bill: as you say, hollywood caved. martha: some extremely tense moments in the air. watch this. [screaming and crying] martha: passengers screaming and crying and praying in their seats. it went on for over an hour. that has to be the worst part of all of this. bill: he's number one. vladimir putin wins russia's man of the year for 15 years

straight. you go, vlad. ♪ what a man, what a man

bill: severe turbulence for passengers on a flight out of south korea. apartnersly this went on and on^. they were screaming and crying and praying. one man sounding like he truly believed this could be the end. >> i love my family have much.

that went on for an hour? that's an american air lines jet thankfully make an emergency landing in tokyo. imagine when you are up there, up and down. martha: i'm not good in that situation. i don't like five minutes of turbulence. they went through that for an hour. russian president vladimir putin speak out on his country's current economic crisis saying western sanctions are partly to blame for the plummetting value of the russian ruling. >> reporter: he didn't give details. all he did was try to reassure the russian public he's on it an doesn't believe the problems

will last for more than two years. he said the west provoked russian's economic troubles but said russian's failure to diversify away from its dependence on oil is also to blame. pundits say russian needs oil at $102 a barrel to balance its budget. $50, $60 for russian per barrel is problematic. russians are generally panicked, buying up whatever they can and trying to get their hands on dollars before it's too late. one journalist asked if this is the price russia must pay for getting crimea back and putin said this is about defending national sovereignty and dignity. >> maybe the bear should sit

quietly and switch to eating berries and honey. will he be left in peace then? no way. they won't leave him in peace. they will keep trying to chain him. as soon as he's chained his fangs and claws will be pulled. report report he said the west will use whatever possible to turn russia into a stuffed teddy bear, a wall hanging. his popularity is at 80% still and as you mentioned earlier, he has been voted man of the year in russia for the 15th year in a row. martha: it's all about the bears and the honey and the berries. thank you very much. they have a lot to figure out. he's right of course, oil is -- they are a one-trick economic pony. i don't know what they are going to do to diversify. bill: all this economic

revolution forced their hand. the fbi we are told is on the case with the sony hacking. martha: the streets of cuba as the backlash in america grows after the agreement top normalize relations with that country after a half century. >> what we have seen is the president of the united states who has become the appeaser-in-chief. for the perfect shave at any angle. go to philips.com/new to save up to $40. innovation and you. philips norelco.

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. i love it. and mama loves you. ♪ bill: we have heard from many at home. but what about the reaction in havana? steer harrigan is on the ground. -- steve harrigan is on the ground. >> reporter: the initial reaction of many cubans we have been talking to is one of shock and surprise. after 53 years of look at super

power 93 miles away the source of all their problems. all of a sudden it's different. the talks were in secret in canada with help from the vatican. so it was a surprise when suddenly the cuban leader raul castro appeared on television taking time out to praise the release of the three cuban spies known as three heroes. then referred to the president in a phrase many cubans have never heard in hair lifetimes. >> this decision by president obama deserves recognition and reexpect from our people. i want to recognize this. and especially pope francis for

helping the relationship between cuba and the united states. >> reporter: the big question for many cubans is how will this affect the bottom line, their own pocketbooks in a country where most people earn just $20 a month. while the embargo will stay in place, it will get be weakened. the bigger question whether this infusion of cash into the cuban economy will serve to lead to more openness in the government. or will it simply prop up the existing regime. >> reporter: steve harrigan from havana. martha: lawmakers expressing their outrage. senator marco riew rubio says te united states gave up so much and has gotten little in return. did they agree to freedom of the press or elections or

independent political parties in no. what democratic openin opening e getting here? none what so. this president has to be the negotiator we have ever had and he betrayed those cubans who worked so hard and a kri fightsed so much for the freedom and liberty of the island. martha:ly cheney joins me -- liz cheney joins me now. were you spray ited by this action yesterday? >> i was. i think many people were sprited by it. if you go back and look at the confirmation hearings of tony blanken. senator rubio asked him directly whether or not it was true, whether tony blanken would guarantee the white house would not take any up steps like the one taken yesterday until you see a change in behavior on the

part of the cubans until you had consultation with congress and tony blanken assured him in unequivocal term that what happened yesterday would not happen. you can ask your self did the new deputy secretary of state know this was going to happen? was he in the dark? whatever the reason was, the administration's own most senior diplomats were telling the congress and senator rubio this would not happen. martha: we learned these discussion were going on for a long time. congress was clearly left out of the loop on the discussions. i want to play a little bit of the president and what he said about this. >> through these changes we intend to create more opportunities for the american and cuban people and begin a new chapter among the nations of the americas. martha: it seems the president want to begin a new chapter without the circumstance on the

ground necessarily changing. you can't start a new chapter if the new chapter isn't beginning. >> you are exactly right. the president in many ways lived in a word that's a fantasy word. it's will new. it's a willful attempt to ignore the facts on the ground. the other thing that struck me in the president's remark is the extent to which he seeped to be blaming america. we have seen this again and again with this president. in his first months in office he sat in an audience in mexico city in a meeting with a number leaders from central and south america and listened to daniel ortega from nicaragua deliver a stream of lies about our nation and north america. and president obama didn't defend us. he student and said i am glad president ortega didn't blame me

for thing that happened when i was 3 years old. he see america as the problem. you saw it in his remark yesterday. it's not the kind of policy or approach that will defend our interest or keep us safe. martha: it seep like we went into these negotiations feeling like we didn't have ling. i don't get that. cuba need their side of the deal much more than we need them. this will benefit cuba dramatic a. we could have asked for quite a bit in term of promises of these democratic openings. >> obviously our hope is the castro brothers will be gone. you will have a new regime in cuba that will give the people cuba the freedom and democracy they they deserve, that so many people have fought and died for. the president has given away any learn we might have in the future over the regime in cuba. he put the price on the head of

americans all over the world. the white house doesn't want to admit this was a prisoner exchange but it certainly was. the message it send, if you want concessions from the united states take an american whose tanning and hold him for years and eventually the up s. will cave to of what your demand are. martha: what about the concerns of narco trafficking? >> reporter: it's a president unwilling to look at the facts and unwilling to rick night the damage and policies trying to dig more the very real december poe tip you see out of the castro brothers in cuba for something i think he's hoping people will say is a foreign policy success. you can go down the list of dictators he has attempted to appease and in of situation we ended up in a worst scenario.

people who sit outside of the white house know appeasement doesn't work. history tells us that. this president does not seem to be well acquainted with the history of american foreign policy and national security. martha: , you are add to the list of people who think we could have gotten a whole lot more out of this deal in terms of negotiation. merry christmas. good to see you as always. bill: what does change? for the first time credit card issue bid u.s. banks can be used in cuba. americans visiting there can bring back cigars and rum. americans can send up to $2,000 every three months, that's up from $500. right now those cubans do not have access to the internet. the agreement will allow american companies to export equipment to allow access to the internet.

the proof will be in the pudding down in havana. martha: we have a lot more to come on that. he has not been seen in more than a year. but boston bombing suspect dzhokhar tsarnaev will be facing a judge today. bill: president obama taking more executive action. why a left-leaning constitutional scholar says even democrats will regret the current power grab. >> i believe the supporters of president obama will rue the day when they stayed silent in the face of this concentration of power.

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martha: the dow up 219 points on the word that the feds won't raise interest rates anytime soon. we'll keep an eye on it.

very good morning. bill: the liberal professor saying this action is something even democrats will regret. >> i believe the supporters of president obama wil -- will ruee day when they stayed silent in the face of this concentration of power. this is the power the constitution is designed prevents. the concentration of power in one hand or one branch. monica crowley and doug schoen. good morning to you. >> democrats have accused republican presidents of being imperial presidents, they weren't. now, you do have an imperial presidency under obama.

professor turley may be right that once you get a republican president at some point he may go down this point in ways the democrats disagree with. the problem is there is such a corrupt media that protects the likes of obama but if a republican president tries this he will be held to account in ways barack obama wasn't. >> i believe everyone will regret it. the exercise of untrammelled power is wrong whether it's done by a democrat or republican. i don't see tonight partisan terms. i sight as frankly bad for our system of government. our country and every american. bill: we asked this question about a week ago to the folks tall across the country. are you concerned or not. president obama's use of power in checks and balances and 60%

say they are. the question comes back to will a republican president govern the same way? >> that's an unknowable. it depends on who you have in office. this president came in with an ideology and agenda that he was determined to slam into place constitutional system be damned. every time it got tough for him whether it's tam necessary citier to cuba or the epa regulations he's just gone around congress and he has don't through executive orders, through the bureaucracy, through this czars. so he's just acted on his own because he doesn't care about the rule of law, congress or public opinion. when you ask him with a republican president will do, republican presidents are held to account in ways democrat presidents are not. it's huge double standard. so my view of is probably not. bill: we looked at the number of

executivexecutive orders and mes the president has even act the last six years. they total a higher number than every number since every president since harry truman. >> i think it's wrong. even if he has a hostile government, divided government, he should not be doing unilateral orders. we have big issues with cuba including state-sponsored terrorism. we have the issue of how we are going do immigration reform. these are issues for conscious am oversight, not for unilateral action. >> i mentioned the corrupt press that doesn't hold the president accountable. i also want to hold the republican party accountable. there is no one willing to stands up to this president and say no. bill: there are a few out there. but the funding for the libyan war was an executive action.

>> that's outrageous. we should be debating these things in congress so both sides have a view. we have sanctions on cuba. they should be debated in congress. this is a dangerous precedent for our people, our government, our nation. how do we go overseas and say we have the best government when we have a president governing by fiat. >> we are arguing from a partisan pont of view where the republicans don't have the guts to stand up to them. democrats, too. where are they? from an institutional stand point where are so many members of congress willing to give away their prerogative. bill: james madison, this was not his idea of putting too much flower one branch of government. i thought it was interesting the choice of words on the cuba

announcement about the imperial history of nations around the world. it gives insight into where the president is coming from. you talked about republicans in congress and democrats as well. would you expect them to change? starting the 5th of january. maybe republicans and democrats might get a little bit more backbone. >> i think the president has decided he's going to double down. govern through the left. bill: the question is whether republicans will push back. >> i would say they have to. >> i think they would get a little more aggressive. >> they are just afraid of impeachment. and that scares them from pushing back the way they need to. bill: we'll see you soon. martha.

march are's accused of -- martha: he's accused of terrorism and murder. dzhokhar tsarnaev about to appear before the judge. will the people of boston finally get justice? we are live outside the courtroom. bill: police searching for a suspect in the shooting of a television meteorologist. >> some unknown male contacted him, walked up behind him, there was some word exchanged. the gentleman pulled out a semi-automatic weapon and started firing on this gentleman's vehicle. i'm an idaho potato farmer and our big idaho potato truck is still missing. so my buddy here is going to help me find it. here we go. woo who, woah, woah, woah. it's out there somewhere spreading the word about america's favorite potatoes: heart healthy idaho potatoes and the american heart association's

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bill: a strange story here. a television station in texas finding itself in the tv news. a gunman shoots a meteorologist

in front of the nbc affiliate. the shooter is described as a balding white man in his mid-30s. there is no word on whether there is a connection between the short and the meteorologist patrick crawford. he has worked there for two year after moving there from new orleans. martha: the boston marathon bombing suspect dzhokhar tsarnaev will be back in court today. his trial will start next month. molly, it's been a long time getting this underway. today it begins. >> reporter: dzhokhar tsarnaev return in person to court today. the first type he has been seen in public in 17 months since his capture. he has been department in near solitary confinement at a medical prison 40 mys from prison. he's had limited contact with

his legal team and also his two older sisters. he hasn't been seen in public since july of 2013 when he was for alley charged. his body at that point in type bearing evidence of the gunshot wound and the injuries he sustained during that manhunt. martha: what can what he expect at the hearing today? >> this marks the final time they will all be in that room. we may hear quite a bit about the upcoming procedure for select can the jury. hammering out the details. a lot of procedural item expected in the courtroom. also by the end of this afternoon we have our first look at dzhokhar tsarnaev. he's facing serious charges including using and conspiring to use weapons of mass destruction. he could be facing the death penalty if convicted. this trial is slated to begin

the beginning of january. jury select begins on the fifth. >> reporter: the iron nation will be watching this closely. molly, thank you so much. bill: blockbuster developments on the sony cyber hack. the government linking north korea to that hacking. martha: why tv shows and films about strategic operations are forcing u.s. military operations to change their tactics.

bill: fox news alert, hollywood surrenders to north korea. pinning the blame on the nation as sony pictures cancels the christmas day release of their movie called "the interview." the studio citing safety concerns after terrorist threa

threats. the decision, for major theater chains said no, we're not going to play it in our movie theaters. a comedy of assassinating north korea's dictator which may not have been a good idea in the first place, but that is what they did. two people in the u.s. government signed off on it and said you can make a movie. the second hour now "america's newsroom." i am martha mccallum. bill: i am bill hemmer. sony pictures facing pressures to pull the plug on a movie north korea is calling an act of war. the studio putting the film back on the shelves saying it has no plans to release it even online. fox news coverage this hour with red fair and the political fallout now. we begin with kathryn. how devastating was the initial attack? >> the sony pictures hack deeply worried u.s. intelligence community because it is believed to be the first time suspected

malware targeted a firm inside the u.s. similar to the attack on the nuclear program in the attack on saudia and iran program. it overwrites data and and trips processes like startup functions. the fbi warns it can be so destructive the data is not recoverable or too costly of a process to retrieve. the lion's share of the evidence points to the north korean dictator using martha: units to launch the cyber attack outside of north korea borders treating a thin veneer of possible deniability. while they're blaming north korea, they have issued a statement through the national security council but it is then on detail with no direction toward north korea specifically, bill.

the short answer is no, this is a new face of warfare. the head of the nsa says the committee must develop a kind of rules of the road and for the first time yesterday publicly china and other nations have the capacity to shut down the u.s. power grid. >> this is something real impacting our nation and those of our allies and friends every day doing it in a meaningful way literally costing hundreds of billions of dollars that is leading to a reduced sense of security and that has the potential to lead to truly significant almost catastrophic failures if we don't take action. bill: intelligence officials will tell you the problem with north korea is what they call irrational act.

if there is a response from the u.s., response from north korea is entirely unpredictable. bill: here is martha. martha: the u.s. is considering a range of options of state-sponsored cyber terrorism. brett, you listen to the report, it is very unnerving. we have such a big discussion of how the privacy is invaded all the time because the nsa is everywhere and it appears they have no idea how the attack happened. >> at least they are saying that. i think you have a pretty decent idea of where it came from and a pretty decent idea of the vehicle for which it happened. i was talking to the vice chairman of the senate committee, his exit interview essentially, he said cyber terrorism is such on the rise back in 2013 u.s. government facilities including the nuclear

facilities or getting attacked 1 million times per day cyber attacks. we talk about the nsa and what they do and the concerns of privacy internally in the u.s. but another site is countering these attacks and having blue team, reds teams to deal with what is coming into the u.s., u.s. government assets as well. >> this is going to happen again because sony caved as many people are interpreting this, what is the message. if any company in the united states you don't like how they're doing things, you can attempt to take them down. we heard precious little about this from the white house bid no message along aligns we're going to take this. >> the furthest he went was people should go to the movies but they are not going to go to this movie because sony pulled it. we spoke the north korea expert who said sony was to be enough to make a movie about killing

kim jong-un, but it was even more stupid to cave in to pressure because he said it would be seen as america is vulnerable to blackmail and north korea will try it again. we have seen north korea and the bluster over the nuclear program again and again and again as an effort to get to the table. they do a lot of things and say a lot of things to get to the table. if you listen to any intelligence expert, they will tell you they believe there is zero chance they would be some 9/11 style attack on movie theaters that showed this movie. bill: we're hearing there is no credible threat. this was the case of spike spanh about some other kind of attack the message would be we are not going to stand down, we're going to carry on our lives and not let the terrorists win. it is like no message along the lines whatsoever.

>> what happened was sony was bombarded by all of this bad press with the original lease of the e-mails and all the things said in private e-mails, jokes on the presiden president and as of things, very embarrassing for sony and social security numbers and details of employees bombarded by bad press and 9/11-style attacks threat come and tha they pull the plug. martha: there is nobody saying we have got your back, this is as usual. i think it is really remarkable. thank you so much, good to see you as always. bill: should sony released the movie? you can also go to our facebook page. that last point you were talking about, let's see if the e-mail

stop, a cause and effect. maybe there is, perhaps that is. martha: i think there will be many more attacks along the line. when they want to get to the table, we will see if that works. bill: they have the ability nowt to launch an attack on our power system? that is a much bigger deal than a movie empire. president obama is stored move to try to normalize ties with cuba sparking joy in havana. a major attack, if that government follows through. here in the u.s. outrage among many cuban-american community after that announcement. >> you expect to get something in return for all the things the united states is trying to do with, but nothing is in return.

you would hope it was for democracy or free election, free political prisoners, alan gross would have been part of the deal. bill: james rosen live from the state department. hello. the hard work starts now for secretary of state john kerry, correct? >> that is right. the white house play time frame on the coming months for the opening of a u.s. embassy, and the u.s. official will be at the tip of the spear is this woman, assistant secretary of state for western hemisphere affairs. overseeing cuba policy. an officer with decades of experience, jacobson will be leading the u.s. delegation to the next round of the u.s.-cuba migration talks being held in havana next month.

from there more high-level visits between the countries and more quietly behind the scenes, teams of lawyers in washington working to make changes to existing regulations on the treasury and commerce, bill. >> when the sun came up this morning, cuba remained on the list of nations that sponsor terrorism. the castro regime has been on the list since 1982 though it is not the longest such residency they didn't need it 79. aides said yesterday it will fall to him to lead is six months review of the current relationship to terrorism if any, and then make its recommendation to president obama about the possibility of cuba being delisted. >> the president may remove the resignation if a report 45 days

before a decision certifying cuba has not supported terrorism and it has provided assurances that it will not support terrorism in the future. >> for a full appeal, congress will have to weigh in. bill: to be continued january. thank you. martha: a fox news alert, brand-new numbers came out this morning. initial claims for employment benefits dropped 6000 last week, the lowest level since late october, and showing signs of improvement in the job market. the dow seems to like it up 253 points. bill: a horrific crash. leaving a christmas concert. details of how this happened. martha: an amazing rescue is a man plunges into the icy waters

of the chicago river. bill: president obama's move in cuba sparking outrage on both sides of the aisle did my one lawmaker calls the president "the appeaser in chief." >> he can go down the list of dictators he has tried to appease, and every situation we have ended up in a worst-case scenario. i'm an idaho potato farmer

and our big idaho potato truck is still missing. so my buddy here is going to help me find it. here we go. woo who, woah, woah, woah. it's out there somewhere spreading the word

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bill: a horrific crash in california. police say car plowed through a

red light at a crosswalk killing three, injuring several more before crashing head-on into another vehicle. the victims wer relieving a christmas performance a nearby church. the driver taken to a nearby hospital arrested on suspicion of dui. bill: reaction continues to pull in following historic move to normalize relations with cuba and well many in the cuban-american community somebody use the macro lease of u.s. aid worker alan gross, everybody somebody his release and the fact his home with his family, my next guest is serious about the way the president achieve this release that president obama had this to say to his critics following the announcement yesterday. >> for those who oppose the steps i am announcing today, let me say i respect your passion and shared commitment to liberty and democracy, the question is how we uphold that commitment. i do not believe we can keep

doing the same thing for over five decades and expect a different result. martha: from florida joining me now, commitment, thank you for coming back. so, the president says we have been doing this for 50 years and it has been no progress, so let's try something different. >> depending on what you want as progress. their two reasons why we have the sanctions. one is for the national security. when they had funding, they were getting the funding from the soviet union. they had to send troops to latin america, africa, so have the sanctions work to protect our national 30 interest you better believe it because castro doesn't have the money for what he used to do when he had the money. the other reason is the leverage so when the castro brothers go

and they are both about to go, the leverage to have a democratic transition because what has always been the policy was that once three things happen, free political prisoners, and then elections take place, it all goes away. they have given way all the to guarantee a transition toward democracy. he has done so getting what in return? there are two parts to this, what obama has given the castro regime, wha with a half and askg for, and also did this exchange for three spies in prison including one of them for conspiracy to murder americans. something he said he would never do exchange those spies.

he did that as well. martha: what is it the fact josh earnest said yesterday they are not connected because i said so. >> they are not connected, so what happened? obama gave three spies? we got alan gross and somebody else, all the sudden that is not an exchange, what, wants to call it something else which mark that is a gruber moment for the american people are smarter than that. it is pretty clear this was everything the castro regime has asked for four decades. they spent hundreds of millions of dollars lobbying, they got it for free from president obama and we got frank little to nothing in exchange. martha: shed light through the process of democracy that because these avenues will be

open now, life will change for people in cuba and of course everybody would love to see a democratic change come to cuba, but what do you think the reality will be the people of cuba at this point? >> again, that is what they're saying, and other gruber moment. there is no pressure to get any of those things done. there are no conditions given the cubans access, no condition, this was a gift. there are no conditions. the conditions are the sanctions, slippers and says we will do this hoping now they have all the money, everything i have asked for with no conditions that they will do it they have never done. frankly not the first time. martha: do you think he should go to cuba, the president? >> i don't think he should, but i will guarantee you he will. for the radical left fidel castro is almost the messiah. i would be very surprised if

president obama does not insist i going to see castro before castro dies. martha: we will see if you are right. thank you for being here today. bill: hollywood in the crosshairs. our movies like "30 dark zero" helping the enemy? why they may have to change the military strategy. martha: speaking of hollywood, sony canceling the release of the movie "the interview" after they got hacked. did america just lose the first cyber war? fair and balanced report on that coming up. >> i can see why they would pull it with that movie. as the constitution, everybody has the right to freedom of speech, even constitute hollywood good

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martha: amazing story in chicago, taxidriver and two people being held as he rose today be at the poorly helping a man who jumped in the colorado river. two people called 911 while another person through the life preserver to the victim. watch. >> i ran over there and try to do whatever i could to help him. this really importance, tried to get him out. reporter: he is listed in stable condition. we hope he is doing better and we think that he rose saving him. >> down, down, down!

bill: a clip from a remarkable film called "zero dark thirty." made with the help from the cia. now former navy seals are so accurate they are actually giving the tactics of the americans to the other side. retired navy captain fox news monthly analyst. good morning. so here's what they are saying, we cannot give up information that is depicted to be so real and so true in hollywood movies that it is helping the enemy. are we giving them too much credit or is there something to that? >> there is definitely something to that, bill. it used to be he did not even name the unit. now all the sudden after bin laden raid at the vice president calling out the name of the unit and the administration giving access to producers and the folks up with a movie together. the reason why things are held so tightly and classified so highly is because if somebody

knew what you were doing or even that you are contemplating doing it, that automatically starts the process on their end on how do i defeat this. sometimes our most secretive programs are so secret because it would be easy to counteract them if you knew about it. bill: it is everywhere now in hollywood movies, watch "homeland," it takes place in pakistan in the current episode of that season. they say movies, all they have to do is get to the movies. time for new tactics because the old ones are not working anymore. there were three rescue thames for hostages that have failed recently. is he right about that, to change the tech this? >> they are evolving constantly. the statement about no plan survives first contact, and that

is true. what is happening now is not just the enemy learned what you are doing in the battlefield, they are being schooled in advance by the publicity of these things and what is really bad about this, what happens is you have one of these operations and then it is weeks from the inside most likely of the highest region because a lot of this is concentrated in the white house's a little mouth start talking and next thing you know him and his vision comes says it is in the press, so we have to confirm it. excuse me, having been read into the press by programs before, you're not allowed specifically to confirm things that are in the press. that in and of itself is a disclosure. bill: the book by bob gates writes this. "that we killed him is all we needed to say. everybody in the room agreed to keep mum on the details.

that commitment lasted about five hours. they just could not wait brag and claim credit. >> and then he went into national security council advisor and said i have a new strategic communications plan for you. so shut up. gates did that. right after the raid. you can see, such a moment of euphoria across the board when the news hit, you can see why they would want to go out and brag about it, but now you are telling us what we're giving away his help helping the other side, that is a serious charge. >> each generation we expect the best of us to step up and defend this nation and give them but have a clean dollars worth of training and support to do those missions, what good is it if in

the end you devalue the investment, put their lives at risk by blabbing their mouth? it is counterproductive and working against the people who we are counting on for our national security. bill: appreciate your time. martha: and notorious cop killer on the run. living for years in cuba, and she is not the only american skipping justice with havana justice. will we now get these people back? bill: shopping for christmas? that could be yours. if you ever want to own one, now's your chance to purchase. martha: how did you know?

martha: well, the release of alan gross may herald a new era

in diplomatic ties between the u.s. and cuba, but it also raises serious questions about the 70 or so american fugitives who are hiding in the island nation such as convicted cop killer jo ann chesemard. what do we know about her situation in all of this, rick? >> reporter: i spoke to members of the joint terrorism task force yesterday, and they were caught a bit off guard. their first reaction was, what about her? she's been hiding in plain sight in cuba for more than 30 years after escaping prison. she was granted political asylum by fidel castro. last year she was the first woman added to the fbi's most wanted terrorist list offering $1 million for help leading to her capture and return to america. she was convicted of pulling the trigger in the murder of a state trooper on may 2, 1973. fox news was given rare access

to crime scene photos last may, some of them too bloody to show on camera. the trooper had arrived as backup as chesimard and who others were pulled over. despite the passage of time, law enforcement told us then they've never given up on the case. >> there wasn't any doubt in the jury's mind, there wasn't any doubt in the judge's mind, and there's definitely not any doubt in the law enforcement's mind. >> new jersey state police will not give up on catching her. >> reporter: and that reward money remains active today, martha. martha: so what are the fbi and state police saying about the possibilities here? >> well, there's been some internal frustration and disappointment among state and federal agents in new jersey that they weren't told about the changes coming in cuba, but they remain hopeful. the statement was released saying in part:

>> r eporter: the colonel told me that he does view this as an opportunity. he says it pushes the door open in a way it hasn't been before. martha: let's hope the department of justice is listening and paying attention that we get her back here. thank you very much. >> reporter: sure. bill: my next guest is a fan of this move. dennis kucinich, fox news contributor, with me now. good morning to you out of washington d.c. you support what the president has done. why? >> well, i think that it's time to normalize relations, and it's important that the concerns of the cuban exile community also be kept in mind. there has to be an effort towards reconciliation here and truth about what happened years ago that caused people to flee cuba. but we're in a new era, and it gives us a chance to normalize relations, and i think it'll be good for commerce and good for

the people of cuba to get a chance to look outward. bill: why not exact change for this deal? that was really, you know, we were holding the trump card. you could have pushed for human rights, for democratic reform, you could have pushed for greater freedom for political opponents. i think the number was 53 yesterday that were released. they can -- [inaudible] you don't know that. >> well, here's what can be done and what can't be done. the president does not have the authority unilaterally to end the embargo. only congress can do that. what the president can do, and this is true of almost every piece of sanctions legislation, the president has the ability to relax restrictions on financial transactions, agriculturallics ports, on increasing remittances -- agricultura exports, restrictions on travel. so there's a thaw going on here. but keep in the mind that the real issue of ending the embargo and all that that means is going

to be left up to congress to decide and, frankly, the issue that you're talking about with respect to political repression will have to be dealt with in those discussions -- yes. bill: are you concerned all this could backfire? you saw the outreach to russia on the reset, you saw the, you know, the outreach to iran, and now you've got this? in havana? >> i don't think it's -- bill: could this blow up in our face? >> bill, you know, we end don't know that, but -- we don't know that, but it's in the united states' interest as the most powerful nation on earth de-isolate another nation. when you have power, you have the ability to do that. we can't act timid about these things. i'm glad to see we're taking steps towards normalization of relationships, but certainly you have to do it with your eyes open. we cannot look away from the history of the cuban government, and we need to be -- bill: well, no one's being timid

here. their friends are russia and venezuela. if you think they're going to run into our arms immediately, it might be a bridge too far. marco rubio from 24 hours ago on our program said this: >> all of these tyrants around the world know that the u.s. can be had, that it's a pretty easy deal. at a minimum, barack obama is the worst negotiator that we've had as president since at least jimmy carter and maybe in the modern history of this country. bill: i don't think that's the first time you've heard that. what do you think of that? >> well, you know, senator rubio certainly has concerns relative to his connection to the cuban exile community, but if you look on this very week, bill, the president will sign a russia sanctions bill that borders on the draconian. so it's not as if this president is weak. i've had differences of opinion with him on a whole range of foreign policy issues including russia sanctions. but i don't think anyone can call him weak with respect to this particular move.

bill: well, part of this deal is the internet goes to cuba. let's see whether or not that government follows through with that. that might be your best point in this entire deal, to give them information think haven't had access. >> i think it'll have an impact on extradition treaties. bill: if havana cooperates, maybe. thank you, dennis kucinich. >> thank thank you. martha: an award that i received from the organization soldier socks, we featured dan rose on our program a while back, a wounded veteran of the iraq and afghanistan wars who was paralyzed and who received one of the many exo-suits that soldier socks has now provided vets with. the suit lieus him to get up -- allows him to get up and walk. here is who really deserves this award. >> our viewers are the ones who instandly responded, you know? -- instantly responded.

we spoke about it on the show and did social media and everything else that you do to reach people and shut the site down a couple of times because they were so enthusiastic and wanted so much to be a part of this project. so thanks to all of you at home because you are the people that did this. taking up this cause. and i asked you if you would consider doing it again, making this donation a part of your christmas or hanukkah list. these men and women are so deserving of your help. the group is headed by chris meeks, and now they're starting to raise money for a brand new technology for robotic arms which helps individuals who have lost the use of an arm, really cutting edge, and it is life changing. so thank you so much, again. and you can go to soldierssocks if you want to make a donation or a christmas present or hanukkah present in someone's name. we had a really wonderful evening. it's really a very new organization, so it was kind of an intimate affair with 100 or so people hold who were really dedicated to this project, and they spend almost every single dollar on these suits and helping individuals, and that

was something that was really important to us. and you can rest assured that that's the case. bill: great stuff. great story. martha: thank you. bill: especially this time of year. martha: absolutely. bill: hackers bring sony pictures to its knees. did america lose the first cyber war? we'll debate this in a moment. martha: and a new military blimp hovering in the skies over an american city. so what is this going to be used for? ♪ ♪

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sniper, the story of chris kyle. taya kyle sitting down for an exclusive interview with gretchen carlson, here she is talking about her husband's legacy. >> chris said he'd rath rather be known for the lives he saved. the number of kills did not interested him, but he would have known to have -- would have loved to have known the lives he saved. he was a protector by nature. bill: all that and more, part two of this exclusive interview later today on the real story with gretchen, 2:00. martha: looking forward to that. so back to this story. sony pictures caving in to the demands of hackers, canceling the release of a comedy about korea, the fbi now linking the cyber attack to that country. newt gingrich, quote:

martha: lars larson joins me now, and le marshall, syndicated radio talk show host and fox news contributor. welcome to both of you. leslie, let me start with you. you don't think the mesh government should -- the american government should get involved in this whole thing. >> i'm not saying get involved, i'm not saying we should stand up and beat our chest. first of all, it's ridiculous to consider sony the head of our world with regard to cyber terrorism and cyber attacks which this certainly was. but, you know, the bottom line is i've been the movies, i have one coming out next year. the bottom line is it's money, it's a business, and the movie theaters said we're not going to run, sony said we're not going o make any money, okay, back off. with everything going on throughout the world even though the government says, hey, this is cool, this the not an actual

threat, aurora, colorado, didn't know when they went into the movie what would happen. i think it's better to edge on the side of caution, and i think that the government needs to not transparently, but very secretly make a very strong decision as to what they're going to do with this and other future potential suabler attacks going forward -- cyber attacks going forward. martha: wow. well, it's economic warfare, to be sure. lars, my guess is that you disagree. >> well, i don't necessarily disagree. it's about money, leslie's absolutely right about that. but people need to see this in the broader context. intellectual property is one-third of america's gdp. that's $5 trillion a year. that means every kind of intellectual property from movies to the design of boeing's latest jetliner. this is an attack on the intellectual property that makes up a third of what america produces every year. and the american government has a job to provide national security, and that's not just bombs and bullets. in this case it may be hitting back through cyber warfare

against companies or countries or individuals that would wage war on america's economy. and this time it's a movie. and as i understand it, this morning we're hearing that a second movie, pyongyang, has now been canceled in production because we're bowing to the north koreans. that's crazy. martha: you know, what strikes me in what you said, leslie, you know, there are all these frightening groups out there, and we just don't know what they're capable of, so we better just accede to their demands. is that -- doctor no, that's not what i'm saying -- no, that's not what i'm saying. no, that's not what i'm saying. martha: all right, clarify. >> the first amendment does not say that we're allowed to yell "fire" in a crowded theater. second, sony originally wanted the actual fame name of the north korean leader pulled from this movie, and i think that would have been the more responsible route. because look what happened with borat with sasha barron cohen,

nothing. it was fictitious, it was a comedy. there are ramifications and consequences to every action, and there are murderous maniacs out there, and people in this country also with mental illness that we have seen that get angry and that hang onto or want to join one of these groups -- >> you know, that sounds like appeasement, leslie. >> but the -- it's not appeasement -- martha: the word is there was no credible threat against any of these theaters. you know, it sends a message -- >> we don't know that. martha: well, that's what homeland security's telling us. they have no reason to believe any of these theaters were going to be under attack. i don't know who they would have found to take up this cause for them. this is very different from what james holmes did. that was an individual who was very, very unstable and vicious and who acted out. it doesn't make any sense, this whole thing doesn't make any sense, and, lars, i'm going to give you the last word, and then we've got to go. >> i think leslie has been

talking about appeasement. she probably would have told charlie chaplin in world war ii not to take hitler's name out and use some other generic name for a german leader. martha: well, i think it's about freedom of expression even if it's a lousy movie, which i hear it is, according to the reviews. [laughter] that's what we're talking about here, so we'll see where this goes. >> merry christmas. bill: a big clunker, hey? martha: that's what they say. bill: maybe it's a rental? [laughter] how about this stocking stuffer? starting this week, how you can own the real deal in your driveway. martha: better have a big garage. odors in your car. you think it smells fine, but your passengers smell this... eliminate odors you've gone noseblind to for up to 30 days with the febreze car vent clip. female passenger: wow. smells good in here. vo: so you and your passengers can breathe happy. comfort keepers can provide a variety of custom in-home services for your aging loved ones, including nutritious meal planning and preparation.

♪ hello... i'm an idaho potato farmer and our big idaho potato truck is still missing. so my buddy here is going to help me find it. here we go. woo who, woah, woah, woah. it's out there somewhere spreading the word about america's favorite potatoes: heart healthy idaho potatoes and the american heart association's go red for women campaign. if you see it i hope you'll let us know. always look for the grown in idaho seal.

the ultimate arena for business. hour after hour of diving deep, touching base, and putting ducks in rows. the only problem with conference calls: eventually they have to end. unless you have the comcast business voiceedge mobile app. it lets you switch seamlessly from your desk phone to your mobile with no interruptions. i've never felt so alive. get the future of phone and the phones are free. comcast business. built for business. bill: need a last minute christmas gift? an authentic military-grade humvee could be yours. what's up, gary? >> how you doing.

bill: this is like the new cash for clunkers, isn't it? but not so much of a clunker. what is the government doing first? let's get to that. >> this is the first time that military humvees have been offered to the public for a public auction. prior to this they've been sent to the scrap heap if they weren't sent to some friendly militaries. this is the first time they're going to be selling them. bill: so this week they went to auction, and what happened? >> big auction yesterday, the first batch of 25 trucks. all of them sold, some of them for as much as $40,000. the opening bid was $10,000, and these are 20, 25-year-old trucks. bill: why do people want to own them? >> because they're fantastic. you get to play army man -- bill: but this is not iraq and afghanistan, as you point out. these are 20 years old. >> first iraq war, perhaps. you get a little book to tell you where the truck's been, that doesn't come from it, but they are from that era. and, again, they're people just excited about having these on the street -- not on the street, they're not street legal.

bill: okay, to be clear, right,? >> it is possible to modify one and get a title in some states, i'm sure some people will do that, but they are being sold offroad. they don't have safety equipment. these are pure military machines. be. bill: and they sold out at auction. >> 25 yesterday, there were 4,000 that are being reviewed to be put towards auction. looks like it's going pretty well. this is selling for a very high price. bill: who's getting the money? >> 75% of it goes back to the government. and, again, they would have scrapped these in the past. right now at the rates these are selling for, we're talking tens of millions of dollars, anywhere from $50-$100 million. bill: another one in january, huh? >> yep. bill: whoa! is there any qualifications for who buys this? i mean, is in any background -- >> you do have to pass a trade security background check. they don't want straw purchasers picking these up. bill: i bet they don't.

okay. so we'll see you in january. >> yeah. bill: this is like cash for clunkers which actually worked. thank you, gary. all right, from dot.com. here's martha with more. martha: so sony pictures dropping the release of their new film after threats of 9/11-style attacks at theaters that carry that movie. more fall out now from those threats and who the fbi now says is responsible.

. .

bill: a bit earlier we asked you what you thought about sony whether or not they should release the movie. martha: david writes this. sony should not only release the in"the interview" but drop 20,000 copies on pongyang. bill: wanda says the movie should be released. freedom of expression. martha: sony pictures is a privately owned business. liberal hollywood caved, not america, according to him. i think pretty soon the movie will be everywhere in the world

we live in, right? bill: piracy thrives. we have to run of the make it a great thursday. martha: we'll see you back here tomorrow. "happening now" starts right about now. heather: sony pictures canceling the release of the intervie, bowing to pressure from the cyber hackers who threatened terror attacks at american theaters planning to show the movie this christmas. there is lot going on. welcome to "happening now." i'm heather nauert in for jenna lee. eric: hello, heather. i'm eric shawn inawn in for jon. "the interview" was planning to open christmas day. it pokes fun at north korea. it die pick as gory assassination of kim jong-un. north korea is said to be behind the sony