harris: just enough seconds to say these words. thank you for your inaugural visit on "outnumbered." fabulous. >> enjoyed it. harris: loved having you on friday. you have a fabulous weekend. see you monday noon eastern for more "happening now," stay tuned. presidential debate. >> i will gladly accept the mantel. >> i will not take legal advice from donald trump. >> you don't have no >> who came out on top and did

anyone break through? >> plus an american artist laid to rest. >> she loved italy. >> we are learning more about the night that ashley olsen died and the suspect in custody. >> and a giant leap in the final frontier. and still along with the ride. where few earthlings have gone before. it's all "happening now". >> but we begin on this friday with the race for the white house. republican candidates clash nothing a high- stakes energy debate 17 days before the iowa caucus. welcome to the second hour of happening now. i am jon scott. >> and i the am heather childers in for jenna lee. ted cruz and donald trump sparring over the recent remark that trump has new york values.

>> his explanation look, i am from new york. that's what we believe in new york. not a lot of conservatives come out of manhattan. >> new york is a great place and got great people and wonderful people and loving people. when the world trade center came down i saw something that no place on earth could have handled more beautifully or humanely. >> chris christie wrote a check to planned parent hood. our next president has to undo the damage barak obama did. >> i stood on stage and watched marco indignantly and look at governor bush. someone told you that because we are running for the same office that criticizing me will get you to the office. it appear ps someone is whispering in marco's eye to. >> we need to be clear eyed

about who are our allies and adversaris and despite donald trump's romance with vladimar putin. they are our adversari. >> john roberts joins us from south carolina with more. hi, john. >> reporter: you know, the big headline following out of the debate. the bromance, the long bromance between donald trump and ted cruz is over and now it is it is pivotal. senator cruz got the upper hand and firing back at trump's insistence that cruz may not be eligible to run because he was born in canada. >> back in september, my friend donald said he had his lawyers look at this and there was no issue and nothing to the birther issue. now, since september, the

constitution hasn't changed. and the poll numbers have. and the democrats are going to be bringing a suit. you have a big lawsuit over your head while you are running and if you become the nominee who the hell knows if you can even serve in office>> reporter: trump got him back invoking the 9/11 and counter cruz's disparaging remarks about p new york values. south carolina lindsay graham endorsed bush as the candidate best prepared to be commander in chief in day one. graham has the get-out-the-vote that could help bush in the february 20th primary. this is what bush said earlier today. >> lindsay graham is probably the most knowledgeable person on the hill with foreign affairs

and policy. and his endorsement is meaningful. i am excited about it. >> reporter: of course, lindsay graham was a presidential candidate and he dropped out. jeb bush, 2000 south carolina was the magic bullet for his brother. can lightning strike twice? >> i like bromance to pistols at ten paces. thank you, john. >> joining us is the writer for news and u.s. wormed report. talk about p the lindsay graham endorsement and what does it do for jeb bush. >> it is nice to get one of your former competitor to sign on and validate you. but the problem that jeb bush has, it will not mean much in south carolina if he doesn't get

a good showing in new hampshire, which can would be be a top three showing. jeb bush has to be in top three and probably two pd place. if not going in top three. it doesn't matter much in south carolina. it is interesting they rolled it out early. because jeb bush can't afford to wait for it. >> we have seen the clash between donald trump and ted cruz. trump has a way of attacking closest to him in the polls and it was true last night. how do you score it. 1, 1 over all. i think that cruz was clever in turning the birther issue on trump, and hey, by your legal theory, your mother was born in scott land and you might have a problem. ted cruz is savvy and ready for that moment. but the more lasting moment was

the new york value's clip which you led your show with. i think that is what everyone is talking about today on line and on the radio and on television and i think trump was the the bigger person and wider tent guy and cruz looked small and you even saw the reaction on cruz's face when donald trump talked about new york trade center and new york's resilience and how the city came together. and even the look on cruz's fates looked like he lost the exchange. they all got a win but lasting one for trump. >> what about marco rubio. he mixed up with ted cruz late in the debate when donald trump got shoved to the sloin. >> rubio did score points on cruz late and you are a shape

shifter and moved on immigration and defense policy and you even switched your vote on crop insurance to pander voters in iowa. and the moniter went back to cruz he was not able to respond. rubio landed punches, but it happen so late in the the debate, i don't think it had the impact as it would have in the last hour. it was overwhelmed by the trump versus cruz match up we are all talking about. and i wonder about the wisdom on ted cruz's part about new york values. new york does send delegates to the republican convention, about 95 of them. and they will be apportioned according to the percentage of the vote each candidate receives

and get handed out two-thirds of the way through the nominating process. is it possible that cruz could have hurt himself with those ppo tential delegates or does he think it would be forgiven. >> he's speaking to voters in iowa. and that's the state he has to win. and he's trying to make the contrast there and trying to make new york socially liberal and associated with sort of the big city that iowa isn't favorable toward. but it does hurt him overall because trump responded well invoking 9/11, a period when all of the country wanted to rally around new york, no matter where you were from. and it is amazing that cruz made trump look like the unifying

candidate. after months of inflammatory rhetoric. heroes above it and looked more unifying and presidential than cruz. >> fascinating night. >> thank you, jon. >> which candidate won the prime time debate according to you you. go to foxnews.com/happeningnow and join the conversation. >> and new concerns about the economy as retail sales tumble. 0.1percent in december. much of the decline due to revenue and then there is wall street where stocks are in a fro fall. we are joined with nicole.

>> we kicked off 2016 in the worst selling we have seen starting off a new year. we mentioned the retail sales, all pieces of economic from manufacturing and prungz and retail showing weakness. consumers are restrained and cautious about spending. and lower gasoline prices, they are paying down debt and health care and rent. game stop down fro percent and macy and best buy and bed, bath and beyond down 23%. and what is up with the market in the meantime? now dow loses 14 points and guess what 1500 points and concerns about joina and influx of oil from iran and the worries that we have seen about p china

front and center. and all sectors are selling off. there is no where to run and they are putting it in u.s. bonds. ten year treasury bond dropped below two percent as stocks hit 15 month louse. netflix and amazon were the darlings of 2015 they continue to sink and selling begets the selling. and experts tell us for now to sit tight and if you are eager to sell don't sell on the worst day where woi are down 500 points and if not hold out and wait and see. >> nicole, thank you. >> friends and family gathered to remember their shining star, an american artist murdered in her adopted home land in italy.

the latest on the man accused of killing ashley olsen. >> and actor said it was not his goal to put p el chapo. why he thinks he failed. it's a fact. kind of like working from home equals not working. numbers look pretty good, how's it on your end dave? oh, the numbers look so good. dave, dave's on it.

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>> welcome fwook "happening now". actor sean penn said his article on el chapo failed. since the article was published public staepgz is focused on how penn met with the fugitive. penn telling 60 minutes that that was not his intention. >> i have terrible regret. >> what are the regrets? >> i have a regret about the entire discussion of the article ignores its purpose which was try to contribute to the

discussion about the policy and war on drugs. >> penn refuted claims that his meeting with the drug lord led to his capture. >> funeral services held in florence for an american woman found dead. her parents thanked italian authorities for a quick arrest. a suspect from sinegal killed olsen after they met at a club. steve? >> reporter: jon, ashley's parents attended her funeral in florence. the murder case got international attention. there is a suspect in custody. he is a illegal mi gant that had been in italy only a few months.

he left a trail of dnan in her apartment. and the two had consensual sex after leaving a club at 5:30. and they fought and admits to pushing her twice and said olsen was alive when he left the apartment. the police say the 35-year-old woman's skull was fractured twice and she was first strangled to death with a cord. back to you. >> what a sad story. still to come. startling new accounts of syria what vet van charles glass is telling about the human toil and the failing fight against isit. and foreigners buying luxury real estate anonymously starting a government probe to find out

who are the secret buyers. >> see there are big tax breaks going to invest in u.s. and new york and attracted the foreigners to buy in a very hidden way. when my doctor told me i have age-related macular degeneration, amd we came up with a plan to help reduce my risk of progression. and everywhere i look... i'm reminded to stick to my plan. including preservision areds 2. my doctor said preservision areds 2 has the exact nutrient formula that the national eye institute recommends to help reduce the risk of progression of moderate to advanced amd... after 15 years of clinical studies. preservision areds 2. because my eyes are everything.

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>> for instance, you can buy a hundred million condo mennium and you are playing 17 or 18000 in property taxes for in new york is a small amount on the purchase price. there are big tax breaks going to encourage people to invest in u.s. and new york and attracted the foreigners as the ability to

buy in the hidden way. >> the hidden way, the reporter said the fuelling of government initiatives to attract secret real estate buyers and foreigners are using illicit funds to buy properties here in the u.s. we have more from the reporter. in that sound we were listening to that was a year ago you were with us. the ability to buy in a hidden way is one of those reasons and the government said not anymore. they want names and identify and track the buyers. why are they doing this and why now? >> this is it a watershed moment for the real estate industry because until now if you walked in with a bunch of cash to buy's 20 million case and use a shell,

a limited liability company, the role estate company may not know whose money it is. and what the treasury department said this week, that is not okay. you not only have to ask but report it to the federal government and they will put it in a database that law enforcement can can use. this is a three year investigation that you co-authored about shell companies and llc's. what did you discover? >> we got behind the shell companies and the time warner has ten years of ownership and the use of shell companies is on the rise and more foreigners are living there and a number of them that have been involved in serious government investigations around the world. and so people in the other countries might like to know they secretly own here.

>> why is it necessary? >> it would help the government to look out for the illicet the money. in the banking system, there is a lot of check ands balances, and it looks like the government is trying to do it to real taet. >> why is it necessary? we had a real estate agent on and this will cause headaches for them? >> it will. it will be more work for them and mean less money for them. it may scare away the buyers and people in the real estate industry don't make as much money. but the positive is, a lot of ordinary people who are priced out of homes in manhattan, and southern florida and lsz area. and where is this money coming from may be be helpful to some people. >> that's a positive spin. we like to hear.

we appreciate your work on this and joining us to talk about it. >> thank you. >> up close and personal look at the human toil in syria and the failing fight against isis. our next guest, a middle east correspondent travelled to the front lines in syria. >> hillary clinton stepping up attacks against bern sanders as he rises in the polls and critics say she is taking it to far. a fair and balanced debail. >> i wish we could elect a democrat president and say we shall do this and that. that ain't the role world we are living in.

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>> a sobering look in a magazine out today in what some call the failing battle against isis. our next guest travelled to the front line and wrote about it in the latest harpers magazine and what the u.s. could do. charles glass is his name author of "syria burning, isis ands death of the arab bring". i think when syria unravelled most americans thought there is

more trouble in the the middle east. but this is proven to be a dangerous and vexing civil war with the numbers of people displaced and so forth. >> in syria, it was the time of hope of arab spring and many thought it would be similar to egypt and might lead to a peaceful change of regime. that's not what happened. outside powers intervening and not realizing how quickly they would be islamic otherwised. and now to the point more than 300000 people are dead. and third of the population is outside of the country and many in europe and besieged and tortured by both side and pit

the u.s. and russians against each other. it grew from a small thing to a very, very big thing. >> isis is the enemy of the united states. there is a force over there maybe not equipped but prepared to take on isis and we are talking about the kurd. how are they treated by the united states? >> when i went to spoke to the kurdish commanders, they are all appalled to the degree to which they are not armed. one commander had 2000 men ready to engage and only 1000 bullets. he was given 80 milliter shells for 80 mill meter mortars. they have no equipment of disabling the ied's. most of their -- they try to take them apart by his bare hands. i intrude a man that didn't have

the special equipment. >> there are sobering pictures in the magazine. why is the u.s. government not providing help to the kurd. >> the u.s. don't want to antagonize the turks. they are fighting the turks in southeast turkey and they are afraid of northeast turks. and they don't want iraqi kurdistan to be a state. if they did, the turks are afraid it would be an independent state. >> the president said it is not a world war what is going on in syria is troublesome but does not threaten the united states. but when you look at how much the spill over caused repercussions in europe and into the u.s. >> it is certainly spread to

american ally. isis groups operate nothing indonezia killing people. and operating in egypt and libya and tu nissia and in europe, so it will not be too long before it materialized in the united states. >> it has in san bernardino isis inspired terror. >> it is something that the defense and intelligence agency warned the president against in 2011, that the revolution is islamicized and a threat to american allies. >> that was before the president compared isis to a jv team. >> he was clearly not reading all of the intelligence given to him. people in syria and americans in syria knew what a threat the islamicic state which was

operating in iraq before and filling a vacum in northeast syria and threatened iraq and kurds in iraq. >> what in the harper's magazine do you want people to think about it? >> you have to think about the entire war in syria and iraq. the u.s. and russia must come to terms with each other and settle the conflict once and for all. as i say in the article, it is peace in syria it would be the end of the islamic state. and just about everyone except the turks and saudis, and everyone was threatened by isis and see isis eliminated. that means who are operating with the russians and iranians with whom the united states is not on the best p of terms, but

in this issue, they have the same interest. >> charles glass, thank you. heather? >> well hillary clinton may be starting to feel the burn with bernie sanders slashing her lead in iowa. bill clinton is campaigning to drum up support. but some of mrs. clinton's tactics are coming under fire. she was confronted by msnbc host about her recent attacks on sanders and his character. >> your camain is essentially fighting with him now that is casting aspersions and calling him dishonest. if he will not level with the american people. >> we're only engageing in substantative difference and that's what you are supposed to do. what is your policy and what is mine and how do you

defend it and let the voters ma up their minds. >> a republican strategist and lizly marshal is a fox news contributor. thank you for joining us. >> what they are talking about hillary clinton talking about bernie sanders in terms of gun control and health care and there is an aid, she said it is time to pick a side. join the gun lobby or join the president and i am with him. what is this status of the campaign. is she scared? >> she is feeling the burn. just in bon month bernie sanders gained, and hillary clinton had a 20 point lead and now seven point. this is the only time i agreed with rachel it is utterly ridiculous for hillary clinton

to question character. this is someone who has no moral character or moral cam pass and stared at the families of the victimses of benghazi and lied to them about how their loved ones were murdered. and said in september sexual assault victim had a right to believe and had no problem dragging monica lewinski's name through the mud. and this is height of hypochrissy. >> her campaign is upset with bernie sanders because he did negative campaigning. he talks about wall street. her weak point. one okay to take millions from big banks and then tell them what to do. many people say he's talking about hillary clinton in the ad. what do you think about the status of the campaign.

>> when we looked at the huge 20 or 30 point lead over bernie, we knew just looking historically and elections that it would not last and now that the gap is certainly not that wide and you have states like iowa and new hampshire up for grabs and polling this close, bernie sanders, although she likes and respects him. and he likes her, they have differences. and it is essential to show the differences to the democrats and the american people. it is to be expected. i don't think either adwas wrong. they are about issues where they differ and it is essential to show because they are a like and similar. i don't think it was about character. it is it about hey, this is about where we differ and that is essential and quite frankly left or right this time of the

year in this point of the process. >> lisa, some could say the tide of wall street is a hit on hillary clinton's character. >> she likes to attack wall street. but the reality she made millions after speaking engagements and talking to likes of goldman sachs and she is a hypocrite on these issues. and deputy back and look at previous election cycles. look at 2008. president obama bested her and able to steal the election. it is so funny that she's losing iowa and new hampshire to a 74-year-old self avowed socialist and hillary clinton hit him on the lack of substance and the wall street editorial screwered for attacking her for not high lighting her policy

proposals that cost a trillion and how she would get it done. leslie. i will let you respond to that. >> okay, bottom line. look at numbers and facts, lisa, shall we. a third of the voting in new hampshire don't make up their mind until the end. we know that left or right if you win iowa doesn't mean you win the president. and we expected bernie to win new hampshire and i didn't hear the name of bernie's name on the gop goppers. it was hillary and i think sh ie nom no. >> she was on the tonight show and she does anything she can to avoid watching the debate but she tweeted about it in the politics. >> it is it her assistant? >> thank you. jon?

>> fox newses alert on a very bad day on wall street. good news is that the dow is off. and session low 531 points and down 465 on friday. we are tracking the story and bring you updates as they develop. >> most of us don't think about the electricity that lights our homes, but some do and they say the cyber attack that knocked out ukrainian power grid could leave americans in the dark. canned cheer

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threats from russia and north korea. joining us to talk about the possibilities, former homeland security for new york state. and michael lee. his team obtained a sample of the wal mayor found in the affected network in ukraine. robert, how sophisticated was the attack? >> in terms of the malware it does not look as sophisticated and expected to fine. what makes an advance attack was the logistics behind the attack. they end up leading to the black p outs. >> this is an attack be that knocked large sections of ukraine in to darkness and went on for a long time in one of the coldest months of the year.

the warning from michael hayden that the same kind of thing could happen in the united states? >> this may have answered three questions out there for a while. can you use the cyber system to manipulate the mechism. and how vulnerable is the u.s. to a tab. and we saw the russian attack to etonya. and how prepared are power producers in terms of cyber security. >> a lot of people may not be aware of the grid, u.s. electrical grid is dependant on computer application temperature is way more complicated than burning coal and generators and the power lines? >> it is it a complex system and that's where the concern is. it is it a highly automated

system. in ukraine they switched to manual operations to restore the power grid. is it possible in the u.s.? the answer is yes. the difficulty for me, while we are making great strides and they are making the grid more secure. if it impacted more than one region, our ability to restore power manually would be more difficult than ukraine. they should be lauded for their efforts. >> are you convinced, robert that the the russian government had a hand in this? that is an accusation out there. >> it is an accusation. but we saw the malwear and control system. the big pose to me is not malwear but the industrial control and physical system ises

running and operating it. you can identify the coordinated attack and it is concerns what we saw. the links to russia are building and it may be a link. there is a level of cupability and a team that operated in the russian board pers, russia needs to do that and international consequences for attacking civilian infrastructure. >> motorcycle -- michael can the u.s. use this? >> not only in the individual operating system but the vepdors. there are so many ways to get in to use the exploit of software. it is not if but when. what are they doing to make sure they can go to the manual system like they did in the ukraine.

>> scary stuff. thank you both. >> talk about a cruel joke on mom. she thought she won the power ball but plus, a stroll among the stars. why did astronauts cut their space walk short. how a few drops of water can add up to a big danger. then you might be gearcentric. right now, all hp ink is buy one get one 50% off! office depot officemax. gear up for great. marie callender starts her a crust made from scratch, and fills it with all white meat chicken and a rich, delicious gravy. because making the perfect dinner isn't easy as pie... but finding someone to enjoy it with, sure is. marie callender's. it's time to savor.

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donald trump says the ted cruz bro-mance over. we'll show you one prominent new yorker seeming to give the middle finger.

right or wrong. do the polls seem confusing? we have the experts behind the fox news polls. we'll be watching. a space walk outside the international space station is cut short. the two astronauts were called in early after a water bubble appeared on one of their helmets. the mission, a first and the first for a british astronauts. phil is live with some details. >> the fact water was on the mel met during a space walk again was a big problem for nasa. they thought the problem had been fixed. the good news is that american astronaut was never in any danger today.

>> how you doing? >> i'm doing good. too deep in the center. >> okay. great. we have scott ready. >> all good today as you heard. that's far from the dangerous situation of italian space walker. two and a half years ago when a gallon of water filled in his helmet. that ran the risk of him drowning in says. it's exactly why the houston based flight director immediately terminated the space walk at that moment. very early.

back to you. >> phil live for us from miami. thank you. >> all right. on a related note, fans around the world paying tribute to david bowie since his death. now the push to take the memorial to outer space. we'll explain. listen up! i'm here to get the lady of the house back on her feet. and give her the strength and energy to stay healthy. who's with me?! yay! the complete balanced nutrition of great tasting ensure. with 9 grams of protein and 26 vitamins and minerals. ensure. take life in!

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♪ those who have served our nation have earned the very best service in return. ♪ usaa. we know what it means to serve. get an auto insurance quote and see why 92% of our members plan to stay for life. david bowie fans want to rename the planet mars. others are looking to name the next star discovered after his character. >> that makes sense. a california nurse thought she won part of the billion dollar powerball jackpot until she learned it was just a jokep. the owner of this nursing home calls the prank despicable and

will send her on an all expenses paid trip. >> that's mean. >> thank you for joining us today. heather, good to have you here. >> nice to be here. kicking off our friday with a fox news alert. take a look at the dow. the markets taking a beating. the dow dropped more than 500 points in trading. the price of oil plummeting. it was down in the 300s. now we're down in the 400s. what's going to happen before the close of today? a live report in a few minutes from now. the pressure is on. gloves are off. who drew blood in last night's debate. republican rival facing off in south carolina. then charging back