>> julie: will you have a happy holiday customer texting in town? >> jon: pretty much. >> elizabeth: you don't have to fly home to new jersey. i could use that to go through the traffic. happy holidays, merry christmas. >> melissa: the senate gambling into session as republican lawmakers are meeting with president trump at the white house, as we speak. the senate is expected to take up a short-term spending bill of the house passed yesterday, with the clock ticking to reach a deal to avoid a partial government shutdown at midnight. this is to be 25, and i'm melissa francis. here today, host of "the evening at it" on the fox business network, elizabeth macdonald. e-mack, as you call her. national security analyst, morgan ortagus. fox news contributor, jessica tarlov. during this from the couch, editor in chief of "the daily color news foundation" ," custor bedford. you got some festive pants going on.

[laughter] they seem to have reindeer antlers. >> chris: even if it's not snowing. >> melissa: and have the red and green tie. you're bringing the whole thing, and we appreciated. love it. let's get to it. some are public and senators visiting the white house today ahead of the high-stakes battle, president trump urging majority leader mitch mcconnell to use the so-called a nuclear option to pass the spending bill, which includes more than $5 billion in funding for the border wall. the white house stepping up pressure on lawmakers to deliver on the president's signature campaign promise. here is white house press secretary, sarah sanders. speak of house republicans delivered a huge victory last night for border security. we are very hopeful that the senate will come through and help protect the market people. we need a wall and we need border security in order to have that. we have to protect people this country. the president is going to stand firm and make sure that happens one way or another. >> melissa: democrats are vowing support any bill which

funds the wall. listen. >> i think this is a fight moreover message of the president trying to fulfill a campaign promise rather than substance. in meetings with homeland security and customs and border patrol leaders, i have been convinced that building a big concrete board about is not a wise investment, but we should invest more in border security. >> melissa: chief congressional correspondent mike emanuel is live on capitol hill with more. mike? >> good afternoon. 12 hours after that deadline, they blame is already underway. president trump tweeted earlier, the democrats now own the shut down. senate democratic leader chuck schumer said, "you only shoot on. your words." they bypassed a solution to avoid a shut down, then you threw another temper tantrum to avoid the compromise. #trump shutdown. "speak of the bottom is simple

it will shut down the government, but it will not him his will. on the floor of this house, everyone knows it will not pass the senate. speaker ryan, leader mccarthy, have cynically put it on the floor of the house knowing it can't pass the senate. everyone knows it can't pass the senate. >> one reason he so confident is that 60 votes are needed to pass it in the senate. majority leader mitch mcconnell has resisted calls for the president to change senate rules to a 51 vote threshold. mcconnell's spokesman knows there is not enough support for this so called a nuclear option example, tennessee senator lamar alexander saying today, "we have rules to follow. i want to put a stop to this practice of the senate breaking its rules to change its rules. i will not vote to turn the senate into a rule breaking institution. i hope my colleagues will not." the leading house republicans says now the ball is in the senate's court. >> let's see if they can start

negotiating in good faith. i think a lot of those folks in the senate didn't want to negotiate because they didn't think the house would pass this bill. but now we have done that, they will have to confront this issue that the rest of the country has already been recognizing washington, d.c. washington, d.c., needs to confront. >> i'm told the big part of the message of president trump in the oval office today is that, when republicans are successful -- such as with tax form and justice kavanaugh -- they're focuses on battling the democrats and not bickering over arcane senate rules. melissa? >> melissa: that's a lot there. we are going to break it all down. mike emanuel, thank you so much. chris, let me bring it on out to the couch. for the early part of the week, folks were saying "wow it, it looks like he's just rolling over. he's just caving." who is surprised that he didn't cave in the end and that he stood up and said "why don't you guys get out there and actually work for a living? go back down to the floor and try and get something done." >> chris: on tuesday night it looked like he was going to roll

over. by wednesday it was up in the air again. tuesday, the white house is already making excuses for it. by thursday morning, groups of conservatives were much more optimistic that he was going to say no. i think it's good for him, politically, to have said no. this could have been a "read my lips" moment. like when george h.w. bush said "read my lips, no new taxes." and changed his mind to reach a compromise. the white house saying no doesn't mean he will get $5 billion in wall funding tomorrow, but it will mean they have to negotiate. he probably will end up getting more, unless they want to shut down the government for three days over the christmas break. >> melissa: jessica, nancy pelosi said again and again that he didn't have the votes in the house. we always talk about how she is the best vote counter out there in the business. what happened? was her counting take her off? what the heck happened? how did she screw up that one? >> jessica: she wasn't in charge of the republican caucus, which is really what shifted. >> melissa: but she said he didn't have the votes and he did

have the votes. >> jessica: she definitely did that, i saw it, many saw it. we will see what happens. continue to think that chuck and nancy with the ultimate victors out of that because he will say "i will happily on the shut down," but she was definitely off about the votes. it's good to see that senators have a decent memory of at least a few years to know that if you do switch to the nuclear option it can come back to hurt you. in just a few years, we don't know what will happen in 2020. i think the president will probably get something out of this. i think we want to avert a shut down, but chuck schumer had come to him with a $1.6 billion deal for border security. not his wall, not his concrete. >> melissa: it has to be alliteration! [laughter] >> jessica: my apologies to the wordsmith president trump. to give him something. he scoffed at the 1.6 billion. i don't know if you will get that much out of it. >> melissa: chuck schumer looking like scrooge there at the end of his nose, saying "you

will not get your wall for christmas." >> and we have marco rubio tweeting out, the democrats signed off on a billion dollars in the stimulus that went to things like solyndra. looking back at this, i'm thinking "why is this such an irritating grandstanding display?" and there were 20 government shut down since the mid-70s. what happened in the mid-70s? nixon tried to seize control of the budget. congress said, "no, no, no, it's under our purview." and since then we've had a shut that every of the year. this is really serious political grandstanding. when we talk about a third of the budget. i think the american people are done with it. it's an irritating thing to deal with. >> chris: and the government always shut down for christmas. >> melissa: they aren't going to keep working. morgan, there is this talk back and forth -- and jessica brought it up, about the nuclear option -- to me, there is what seems to be a false premise where they are saying "don't invoke the nuclear option, because then when the democrats get in they will invoke it."

what is the guarantee, if they don't invoke it? so that the democrats promise that they are going to invoke it when they are in charge? i don't buy that for a second. >> morgan: let me tell you what i do buy it. i think that -- and jessica could probably attest to this -- every time the president gets record amounts of judges, supreme court justices through, i think they are all sort of shooting daggers mentally at harry reid for changing them. one of the signature accomplishment of this administration will be that they have remade the courts through their appointments, specifically because it has taken root taken root. >> melissa: you don't think the democrats will follow that lead, or that democrats will follow what harry reid did? you don't think they will invoke the nuclear option when they see how well it works with the judges, as you said? >> morgan: here is the better deal than quibbling over the nuclear option, among my opinion -- we have the dealmaker in chief. why don't we have the guy getting kim jong un had all the people to the table?

let me finish. whether you agree with it or not. we have the ultimate dealmaker. why doesn't he -- i mean, he can come forward and say "i'm willing to put a number of things on the table." maybe it's daca, maybe it's something else. >> melissa: it is a golden opportunity. >> morgan: it doesn't have to be immigration related. he can shine with a big shiny e that doesn't have to do with immigration. there are a number of options for him to make a deal on. let him do his magic. >> melissa: e-mack, what about that? it as a golden opportunity. he desperately wants his money, this campaign promise. they are saying no, when in fact they could get something really great and really painful for themselves. i, for one, would not be able to resist that opportunity. >> elizabeth: and have a legislative victory going at the 2020, instead of the t-shirt air cannon of subpoenas they are handing out. [laughter] that's a question. when i'm watching the democrats take to the cameras, i am waiting for somebody to say to them, "hey, what about the border crisis?

what about the crime pouring over the border? what about the illegal immigrants porting of the border? why not get control of the border when you, yourself, voted for hundreds of miles of fence in 2006? "i see the democrats not responding to that. not addressing the issues with what are border patrol guys are saying is a serious problem. >> jessica: ryan gave a speech on the floor yesterday -- >> melissa: i want to tell you, we are looking at the screen right here and we see mitch mcconnell leaving the white house. he's in the car, they are pulling away. they were just inside. chris, how do you think that conversation went? >> chris: mitch mcconnell is, actually, more in line with president trump. he would be okay with funding the wall. he feels like he can get it through. the senate, to the nuclear option, the senate has been degrading as an institution for years and years and years in the u.s. it needs to be a place where the states were represented, tempers were able to cool down. we got rid of that in an amendment, and now we are -- harry reid broke the rules, and

i'm cynical about it. i don't think the democratic majority coming and eventually won't break those rules. to your point. they should hold that, because the senate should be a majority majority-run mob-run institution. we're getting closer to that every year. the >> morgan: can i make one plea about what liz said? it's crucial here. to become of the sergeant is not about the ball. the wall as a metaphor for how these two parties feel about border security in general. we have seen the clinton party, even the obama party -- the democrat party -- change dramatically their position on navigation. "i should be abolishing major candidates running for president in 2020. they see radical things as relates to law enforcement, to ice -- if you look at the top 20 people running for the democrat party, tell me one person who says that ice shouldn't need to be abolished. it's a radical agenda. >> jessica: brown wouldn't say that, amy klobuchar wouldn't say that, eric garcetti wouldn't say

that -- >> elizabeth: but they aren't the loudest voices. >> jessica: but they could be the nominees. kirsten gillibrand talked about, kamala harris played with it. but that's not what the party since were. that's what french people on the left stands for. >> morgan: kirsten gillibrand is the new york senator. she's not french. >> jessica: a fringe position across the country. we elect moderate democrats -- >> melissa: let jessica respond. >> jessica: what happened in the midterms was a wave of electing moderate democrats across this country. we saw them shot out of a lot of elections that were winnable even in primaries earlier when it came to election day. we'll talk later about claire claire mccaskill and heidi heitkamp, that we need to pay attention to the moderates. this country is full of moderates. just because some progressives are screaming at you loudly doesn't mean we are a party that wants to abolish ice. that's how we stand for. there are other ways to secure our border than putting up a wall, that can be used, frankly, as a racist dog whistle on the campaign trail. that's what they object to.

>> melissa: morgan, real quick. >> morgan: i have an excessive shoe collection. if they don't take a radical position, i will eat this farragamo. [laughter] >> melissa: the presses inside one of the signing ceremonies inside the white house. i will be willing to bet good money that the president will not be willing to resist making some, about what's going on right now with this thing over the border wall and funding. as soon as you get that video, that take playback, we are going to play to the second we have it. meanwhile, growing divisions among democrats the head of the new congress. democratic senator at claire mccaskill, who lost her reelection bid, is taking aim at the party's moved to left. the rise of democrat socialist alexandria coke rc cortes. have a lot more in it coming up. we're just talking about it. plus, new reaction to defense secretary james mattis' resignation, as officials say the white house is shifting its strategy in afghanistan. a live report from

jennifer griffin with all the details, had. >> if secretary mattis doesn't feel he's the right person for the job, if you get the right thing and an honorable thing but he did and stepping aside. ♪ insurance so i only pay for what i need. oh no, no, no, no, no, no, no... only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ oh! oh! ♪ ozempic®! ♪ (vo) people with type 2 diabetes are excited about the potential of once-weekly ozempic®. in a study with ozempic®, a majority of adults lowered their blood sugar and reached an a1c of less than seven

>> melissa: breaking news on the senate floor where chuck schumer is addressing the chamber. let's listen in. >> -- are all in flux. the institutions of our government lack study and experienced leadership. with all of these departures, it's about to get even more unsteady. the president is making decisions without counsel, without preparation, and even without communication between relevant departments and relevant agencies. all of this turmoil is causing chaos in the markets. chaos abroad. it's making the united states less prosperous and less secure. and, to top it all off, president trump has thrown a temper tantrum. he now has us careening toward a trump shut down over christmas.

in a short time, the president will take part in a pointless exercise to demonstrate to our house colleagues and the president what everyone here already knows. there are not the votes in the senate for an expensive taxpayer-funded border wall. so, president trump, you will not get your wall. abandon your shutdown strategy. you are not getting the wall today, next week, or on january 3rd when democrats take control of the house. just two days ago, the senate came together to support a proposal by leader mcconnell, unanimously, every democrat, every republican, to extend government funding through february without partisan demands. what it would accomplish would be that the government would not shut down, the fights that we

are having would be postponed to a later day, and millions of americans would not be hurt this christmas week. let me repeat that -- the senate, every democrat, every republican, has already unanimously supported a clean extension of government funding. it democrats supported the measure because we do not want to see the government shut down. we have no demands other than that. we have every indication the president would sign the legislation, as did our friends. the republicans on the other side of the aisle in the senate. but, yesterday, president trump, hounded by the radical voices of the hard right, through another threw another tantrum. and here we are commodes again. months of what he said he wanted -- a trump shut down. the president will try to do his

best to blame democrats, but it is flatly absurd. resident trump called for a shut down no less than 25 times. meeting in the of office, he said "if we don't get what i want, i, president trump, will shut down the government." i will and proud to shut it do" said president trump. "i'm not going to blame you," meaning democrats. "i will take the mantle of shutting it down." those are his words, nothing he says or does today it can undo that. no democrat has called for shutting the government down. we are all working to avoid it. the president seems to relish it. he seems to feel he will throw a bone to his base. the problem being, his base is less than one quarter of americ america. mr. president, president trump,

you cannot erase months of video of you saying that you want it to shut down, and that he wanted the responsibility and blame for a shut down. president trump, you own the shut down. you said so in your own words. and, president trump may get his wish, unfortunately. but it doesn't have to be this way. democrats have offered two alternatives, and republicans -- leader mcconnell -- have offered one. democrats have offered to pass the six bipartisan appropriation bills, a year of continuing resolution for homeland security. we have also offered a one-year continuing resolution for all of the remaining bills. republicans have offered to pass a short-term continuing resolution through early february. each one of those proposals would pass the house, pass the

senate. each one of those proposals contains $1.3 billion of real border security, not a wall. there is no wall in those proposals. democrats support real border security, not a wall. and, by the way, that is in addition to the $1.3 billion in border security congress allocated last year. the vast majority of which, the trump administration has not yet spent. they are asking for loads of more money -- they haven't even spent last year of posthumous money. it's clearly a political gambit by president trump to appease his never-happy base. on the other hand, a trump shut down would result in $0 for the department of homeland security over the christmas holiday. so, there are several ways for president trump and congressional republicans to avoid a shut down over christmas.

i have mentioned three. but there is only one way we will have a trump shut down. if president trump claims to his position for an unnecessary, ineffective, taxpayer-funded border wall that he promised mexico would pay for. i yield the floor. the absence of a quorum -- >> melissa: that was senator chuck schumer on the floor of the senate, addressing the chamber, putting the blame for what could be a shut down coming down the pike squarely at the feet of the president. we are also expecting to hear from the president very soon. he had a signing ceremony, the reporters were inside. we think you will probably say something about what is going on today. as soon as we get that we will bring it to you. in the meantime, jessica? >> jessica: as we wait to hear from the president, new reaction to defense secretary james mattis leaving the white house at the end of february.

mattis 'letter of resignation says the president deserves a press defense secretary that has del mike is better in line with his views. they prepared to pull u.s. troops out of syria. a u.s. defense official is telling fox news that mattis resigned in protest over the national security policy. here is press secretary sarah sanders this morning on 317 'his legacy. take a watch. >> he served the president and this country, he served in this administration for two years and he served the country and in administration for four decades. and a credible person, an incredible servant to this country. somebody that we have the highest amount of respect for and wish them well. we look for to continuing to work with him over the next two months. let's not forget, he's not just walking out the door pray this will be an orderly process. it will continue to be a good relationship over these next couple of months. >> jessica: yesterday, lawmakers on both sides of the aisle expressed their concern over secretary mattis' resignation.

reports of the president is ordering a major military withdrawal from afghanistan. officials also telling fox news that president trump has ordered a drawdown of u.s. troops there, with several thousand troops to return home in the coming weeks. currently there are 14,000 u.s. troops in afghanistan. jennifer griffin with more, live in washington. >> jessica, make no mistake -- jim mattis not is not resigning because he gets tired. marines don't get tired. he residing in protest over the national security policies of the president, according to officials i've spoken to. this was a resignation based on principle, according to those 2 million his decision. i'm told the final straw for him was the president's order to withdraw from syria. the last 18 hours sealed his decision. it appears as resignation letter had already been written, i'm told. mattis went over to the white house at about 3:00 p.m. yesterday with his resignation letter in hand. he spent about 45 minutes with the president. he did not tie try to change te

president of how stress might on syria, as some have reported. before leaving for the white house, mattis watch the president's video explaining his decision to pull out of syria, with mr. trump pointing to the sky saying he had done it for the troops who had died. copies of mattis' resignation letter had already been printed and in a folder in his office to be distributive upon his return from the white house. mattis believes that pulling out of syria is a betrayal of the kurds and the syrian democratic forces, who u.s. leaders believe will be slaughtered after the u.s. leave syria. here are the highlights. "you have the right to have a secretary of defense whose views are better aligned with yours. my views on treating allies with respect and also being clear-i'd about both maligned actors and strategic competitors are strongly held and informed by over four decades of immersion in these issues." they are withdrawing from

afghanistan against the advice of the senior military leaders. earlier this month, mattis was asked whether he was being pressured to pull out by the president. mattis warned about the consequences of pulling out. >> if we leave, 20-audit of the most dangerous terrorist groups in the world centered in that region -- and we walk out of there -- then we know what will happen. our intelligence services are very specific, that we will be under attack in a number of years. >> i'm told to respect more resignations from the pentagon. a recent poll conducted by the military times shows that mattis has an 84% approval rating among the troops. it's not clear who will take the job of defense secretary if the president six to his plan to pull out of syria. it has already been set on fox news that he won't take the job. senator tom cotton is mentioned as a top choice. he is a former army first lieutenant prete he served in iraq and afghanistan.

it's hard to imagine him overseeing a pullout from syria given his past experience. most likely, mattis' deputy, patrick shanahan, who gave president trump cover for his space force which the pentagon oppose, will be asked to stay on and serve in an acting capacity. jessica? >> jessica: figure so much, jennifer. melissa? >> melissa: we want to let people know we are also expecting to hear from mitch mcconnell soon. and we know the president did in fact address the situation inside the white house, basically saying he was putting all his chips on the senate. when we have that, we will bring it to you. >> jessica: back to the mattis situation. we have a national secured analyst on the couch. morgan, how are you feeling? >> morgan: i think there are three different issues going on in this discussion. the secretary of defense, and what this means for the president. there's an ongoing policy argument that people on the right and the left have as it relates to if we should still be in afghanistan. 17 years later. should we be in syria? and there's the communication of that policy to the american people. not that i have time to go into

all three, but i would point out -- where i think the biggest error has been for all of missed rations as the communities in peace. i don't think the average american understands why we are still in afghanistan. if you look in the polling, we don't know why we are in syria. >> melissa: any talk to him last night, right? >> morgan: he set on fox news last night -- >> melissa: mitch mcconnell is addressing the floor. >> -- investments into disaster relief or hard-hit communities, and in our national security. particularly the integrity of our borders. in my view, this legislation that would be quite uncontroversial. quite uncontroversial. and a more political moment. in a moment when both parties put the obvious national interests ahead of any personal spite for the president. i support the additional border security, and disaster aid that

the house added to the bill. i am proud to vote for it. now, mr. president, it's not a radical concept that the american people's government should be able to control the people and the goods that flow into our country. it's not a radical concept that physical barriers play an important role in achieving security. unless there is a caucus of lawmakers who go to bed at night with their front doors wide open that i'm not aware of. what is radical, mr. president? what is way out of the mainstream? is is this absurd premise of open borders, achieving basic stability on our southern border is somehow come in itself, without compassion? or discriminatory? or immoral?

fairness and compassion don't mean only enforcing some of our laws half-heartedly. fairness and compassion mean we fulfill our governing duties for the american people. if we continue to throw up our hands and tolerate a status quo that is allowing too many drugs and dangerous criminals to travel freely into our lands, then this federal government is not doing its duty. the facts are clear on this. the need for greater security on our southern border is not some partisan invention. it's an empirical fact. the need is only growing. apprehensions along the board have nearly doubled in the past year. the men and women of the border patrol are encountering greater numbers of gang members and individuals with criminal histories, more family units, more seizures of cocaine and

fentanyl. this is a real crisis. a real crisis. the implications for american communities with vulnerable children and for border patrol units that are already stretched thin are very real. mr. president, there is no bright line or principal that sets this request for border funding apart from similar requests that many democrats have supported in the past. a lot of them supported this in the past. there is no sharp distinction between the proposal my friends across the aisle have decided to oppose today, and proposals they have been happy to endorse in the past. the only thing that has really changed are the political wins way over on the far left. that's what has changed. let's not end this year the way we began it, with another shot down over the issue of illegal immigration.

remember this? back in january? all because the democrats are unwilling to support common sense measures to address it. let's advance this legislation, mr. president prayed let's pass it, let's finish our work for this year. let's secure our country. so, mr. president, ask before the senate, the house message to accompany hr 695 and ask for the yeas and nays. >> is there a sufficient second? there appears to be. the clerk will call the roll. >> mr. alexander, miss baldwin, mr. barrasso. mr. bennett. >> melissa: okay, you can see they are getting to the procedural vote. you heard from both sides they are. first we heard from senator chuck schumer on the democratic side. and then mitch mcconnell making the case that this is not something that is controversial. it's something the chamber has

voted in favor of in the past. asking them to do the same now. we will see what let's bring it back out to the couch as we watch the situation. morgan, i don't want tthat wheng about the generals and who was going to take over now at this point, you had a conversation with retired general last night. are you countable sharing that? >> morgan: we spoke this morning. he did say, i believe on fox news last night. but he's not going to take the job. there is still a lot of people that could be considered. jennifer griffin mentioned shanahan, the current deputy secretary and who has also been covered by the senate. another name i've heard is dan coats, who is the director of national intelligence. again, already confirmed. has a very long history. one name that has been out there that i think we should consider, is dave mccormick. he is the treasury official in the bush and administration. he was once or member to be in the deputy secretary position in the dod. he was bringing new york business perspective, which i think the president really like

likes. that's the outsider peck at the moment. >> jessica: isn't there an issue here -- and this is the thing that has actual unified democrats and republicans about the withdrawal from syria and from afghanistan. even people that think we shouldn't be there. that is happening too fast, and seemingly only to have consulted erdogan of turkey and to please buzz me prudent in this decision. and not the team. who would want to take this job besides rand paul? [laughter] >> chris: national security office process that is normal when you want to make a decision -- he reported to them, hear the different sides, what they have to say, and get in contact with the allies. >> jessica: our ally is erdogan. >> chris: it's an undefined mission at this point. we had a caliphate government. there still a lot of fighters, but the mission has changed. we had the kurds, who doesn't want us to leave them alone. you've got israel, who doesn't

want us to leave them alone. >> melissa: i would do to people what they are watching on the screen. what we said before, this is the procedural vote on the house bill. to even bring it out to the floor and to consider it and work on it and vote, they have to vote on the procedure. this is step one. we don't know if they're going to get the votes to move on this or not. that's why we are watching it closely. chris, forgive me. keep going. >> chris: no worries. we have to watch this, it's the government! [laughs] >> elizabeth: the generals are saying, don't pull out. in this region, because another crisis could be created by isis and the u.s. would have to go back in. they are essentially saying "you are abandoning the kurds, our allies, they are about to be slaughtered." netanyahu says he's going to the fight against iran, as that outpost in southern syria buildout. this comes at a time of the president is saying we've got ten terrorists a day crossing our borders. i don't think you meant to the southern borders. it's by land, air, and see.

that's a homeland secured estimate from last year. i'm just wondering why it abandon our allies. why do this now, when isis clearly has still a foothold in that area? >> melissa: i was talking to lieutenant colonel daniel davis last night, who said you don't have to be on the ground in syria in order to defend against isis. all they are saying is, get the troops that are on the ground and are doing more mundane things at this point. they don't need to be there. they can continue to be in the area, making sure that isis doesn't move back in. it just means taking the troops off the ground. i don't know if that's true, i'm just putting out there the other side. this is the argument that was made to me yesterday, in the interest of being fared fair ad balanced. this is what the other side of sink. >> chris: the problem with the kurds that they want us to be there forever. they need us there forever. >> melissa: we have breaking news gift bring two. supreme court justice ruth bader ginsburg has undergone a procedure at a cancer center

here in new york city. to remove two cancerous growths from her left lung. it is her third bout with cancer since she joined to the in 1993. we are muttering this breaking news. we will bring any of ailments. again, she has had surgery. the growths were removed. she is now resting and recovering. we are awaiting comments from the president. the press is inside, you talk about the shutdown, we will bring you those just as soon as we get them. a lot of breaking news. everything happening. don't move! you can't afford it. ♪ lilly.

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moments ago about the looming potential government shutdown, and talking about impact on the market. the dow right now is down about 100 points after the markets jump to triple digits this morning. e-mackey, the market is responding -- you're the federal reserve bank of new york, john williams come out this morning. hey, maybe we'll get to listen to the market. we may not raise rates as much as we said. everybody, take a deep breath. that's what the market is moving on. >> elizabeth: i agree with you on that. from chuck schumer, to make that breathtakingly tedious political comment that it's a government shutdown -- the government shutdowns are almost as frequent as weather events. you might as well blame it on el nino. [laughter] here's what's really going on. interest rate is going up or the dow lost points since october 3rd when this process first started. about two and half trillion dollars out of the s&p 500. that's what's going on. also the wme in the order

market. they are going down. the players that really leveraged up, we are watching stocks like chesapeake, transocean, rutherford -- they are plunging. some of these players in the oil markets are highly leveraged. when rates go up in oil prices go down, there is a wipe out. that is also adding the markets, too. if it gives mostly interest rate related slow down. >> melissa: anything else want to venture in on the economy and chuck schumer? give it a whack. >> chris: the stock market plunges every time the government shutdown. every week and can come every christmas. every federal holiday pay that's obscene. of course, it makes sense. but why not, at this point, make a political point? that's all we are seeing here right now between republicans and democrats. going back and forth. "you hate america." "no, you hate america. now, look, the market is upset." >> jessica: i would say, the president himself has made a political point -- the stock market was way up before all his

gains got erased for the kids that came under his presidency. he said it's because of his policies and he takes responsibility for it. then the counterpoint is, when it's down is the response billed as well? >> elizabeth: not response billy come he takes credit for. wall street says, yes, the run up is great because of his policy. to your point, is he making a rookie political mistake branding himself with the market? >> jessica: you own it, then. we decide in the midterm election that the health care was the number one issue. her republicans were unable to pull out a win after running on the tax cuts in the market doing better and feeling optimistic over whether they can shop. >> melissa: they don't vote "thank you," morgan. that's basically a point. they aren't voting on "thank you," now that the economy is doing better. the concern is, if the market is responding to rising interest rates, it's because players think that as interest rates go up people spend less, borrow

less, the housing market is going to slow down, the number of cars sold -- all these kinds of things. which is why the president has said again and again, and has treated violently at the federal reserve chairman to please stop with the rate hikes. is it a concern? the market is telling you. we are negative for the year. the market is telling you this is not going to end well. is that a concern for republicans? >> morgan: i think the good news, and part of the reason the market is up, is because of the chairman powell saying that they are going to relook at their rate hikes. >> melissa: john williams. >> morgan: john williams, thank you, sorry. we've got a couple things going on from a political and economic perspective. we do have the slow down in china. march 1st is the deadline for trump and president xi do have some kind of deal on the table, or more tariffs. there are more things that can happen there. you also see a lot of turmoil in europe. we have seen what's gone on the past few weeks as it relates to brexit. we look at the major world

economies, none of them are in fantastic shape. we will, despite some of the slow down and potentially in the u.s., as relates to the market -- people will still come back to the u.s. dollar. >> melissa: chris, that's a great point. she talking about the fact that the whole tariff battle has been a drag on china. that's one of the things that's hurting global growth. what if i get settled customer sooner or later it will get settled. that will turn the page on a whole lot of things. it would re-accelerate the market, the economy, and be a huge win for the present trade what you think are the odds that he get something done in terms of a trade deal with china? >> chris: it would do some things in the short term and help the stock prices that day. if you got a deal with china to end their unfair trade practices, their state-sponsored cyber espionage, their stealing of our technology, their slave labor policies, if we get anywhere near that, it will help long-term. the problem is, china is an absolute expert at staying one step ahead of where they say they are going to be. they are, in the end come in it for themselves.

if president trump can get them to the table and through the suffering he's going to inflict on them with these tariffs, make fairer trade policies for u.s. manufacturers and protect their i.t., errant electoral property property -- >> elizabeth: the issue was china's nobody really trust their statistics coming out of the nation at all. it's been suffering in the downturn in the markets over there. it behooves china to come to the table and get a deal. i think morgan makes an important point about brexit. if that crashes out of the e.u. come march, we can see in the options market right now -- the traders who are assuming the crash position, going to a safe haven cash place. i think it's brexit looming, and an e.u. slow down is really an issue, too. asia, china, and other people. >> morgan: keep in mind, president xi stood with obama and the rose garden 2015 and promise all the things that chris laid out. and that's because they have a history of lying, stealing, cheating. they don't live by these deals. we have had news in the past two

weeks about the amount of navy contractors that they have been hacking, and stealing our defense intellectual property. that's an ongoing problem. my problem with the president coming to a deal in march, while it would be great for the markets, they would be quite happy -- are we actually going to get them to be able to abide by things that they have already promised to previous administer rations and didn't deliver on? >> melissa: we will see. in the meantime, what you're watching there on the screen is senators in the midst of procedural votes. they are trying to advance a bill that would avert a partial shutdown. we are awaiting president trump and his comments on all of this. we will bring you those as soon as we get them, or the results of this vote. don't go away. zicam is completely different. unlike most other cold medicines... ...zicam is clinically proven to shorten colds. i am a zifan for zicam. oral or nasal. our mission is to provide complete, balanced nutrition... for strength and energy! whoo-hoo!

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>> melissa: we have been promising all our that we will tell you what went on inside the white house. we don't have the tape yet, but we will tell you what was said. the president, of course, he was talking about the boat in the house and border security. now the senate is looking at it. he said he had a "great meeting with senators." you can picture him saying that. he said it's totally up the democrats as to whether or not there is a shut down, that we are going to be working very hard to get something done. and he took quick victory lap, sing the blues he said he could get the votes in the house. and he noted that he did, in fact, get those votes. i'm shocked that he commented on that. it's up the democrats as to

whether or not we have a shutdown tonight, he says. he ups there won't be one, but he is prepared to write it out if there is. jessica tarlov, sorry. the three yes, that's what you would expect for him. he was a little bit better on twitter about nancy pelosi, where he said "i did win, it's okay, she does need to apologize for her mistake." that's what we would expect. the procedure vote, yes, but i don't see where the boat comes from. >> melissa: we didn't see where it would come from of the house i can either pray that wasn't >> jessica: what no caps are they going to be picking up? >> elizabeth: my former editor, jim michaels -- he has now since gone to heaven -- used to call this a tedious of self-righteousness. i thought he feels going on. we have had only four instances since 1977 where the congress has passed appropriations and spending bills on time. thus the context.

this whole play for the tv cameras thing is irritating. just go down there, do your job. i can't believe they are fighting overspending. >> chris: it's been two years of republican control. obamacare has not been repealed. the wall has not been billed. another want to have this big fight. conservatives i've been speaking with are excited about this. they've been trying to push the moderates who never wanted this fight to have it. they were not expecting as many are public and congressmen to the side with the president on this pair there is so much bitterness by the people who lost elections against the president. now they have got their fight, and i were forcing the democrats like chuck schumer to stand up there and say "let's spend billions of dollars on security and that's not spend on our own scaredy. >> elizabeth: approval ratings of congress are plummeted. >> jessica: chuck schumer is not concerned about being reelected. the wall, whatever it is, it's a

term of this problem for democrats and not just the far left. for the entire party pair there is an objection to have president trump has talked about people from thousands of supporters, since the second he came down that golden escalated. it's symbolic. it's a racist immigration policy. >> melissa: what is mexico being so cooperative, though? >> jessica: they are not are not. >> melissa: they absolutely are. they agreed to this most recent measure that came out, where they are going to take back people in the meantime have come and applied for asylum. they worked with the president, when the caravan was coming through. they offered them asylum, they offered them jobs. the president, and he signed the deal with mexico! if he is such a racist and he so anti-mexico, why are the mexicans cooperating with him? >> jessica: i don't think they have much of a choice when thousands of people show up there. >> melissa: what about the deal? >> jessica: it's a unilateral. >> melissa: what about the new nafta? >> jessica: what about paying for the wall? >> melissa: what about noon after?

>> morgan: from a national security perspective, as it relates to the shutdown, we do see that during this time there is much more chatter. much more of an increased risk for terrorist activity and threats against the homeland. we saw on christmas eve, i can't member how many years ago it was. during the obama administration. when we have the bomber that was stopped, the underwear bomber, trying to come to the u.s. it does troubled me from a national security perspective, because we will be getting more threats to the homeland during this time. it's the dhs funding that is a part of this, 25% of the budget that will not be working. for load. >> chris: law-enforcement -- >> morgan: they will be. but the majority of dhs will be on leave unless they are key essential personnel. i'm not saying -- chris, i'm with you on the republican seeming to have that fight. i'm saying that democrats need to come to the table because we all need to be thinking about our national security. >> melissa: jessica, i will let you get the last link in here. >> jessica: chuck schumer meant it when he said not getting the money, and donald trump meant it when he

security issue because of this. it's a very good point. >> melissa: we will say it again, we are waiting for those remarks on the shutdown. don't go away. a lot to watch. keep it right here.

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little things can be a big deal. that's why there's otezla. otezla is not a cream. it's a pill that treats moderate to severe plaque psoriasis differently. with otezla,75% clearer skin is achievable. don't use if you're allergic to otezla. it may cause severe diarrhea, nausea, or vomiting. otezla is associated with an increased risk of depression. tell your doctor if you have a history of depression or suicidal thoughts, or if these feelings develop. some people taking otezla reported weight loss. your doctor should monitor your weight and may stop treatment. upper respiratory tract infection and headache may occur. tell your doctor about your medicines and if you're pregnant or planning to be. otezla. show more of you. >> jessica: a big thank you for two chris benford for joining us. your final thoughts? >> chris: i think this president the president should skip mar-a-lago and go down and spend it with the border patrol. i think that's the thing to do. >> jessica: he's probably

watching and i doubt he's going to do that. that's a lovely thought. we are back monday at noon eastern, chris and see. here's francis hidden for harris faulkner. >> melissa: fox news alert, we are awaiting remarks from president trump after his meeting with senate republicans earlier today at the white house. as the clock ticks down to eat a partial government shutdown pray let's go to "outnumbered overtime." i'm melissa francis, in today for harris faulkner. the house passing a bill last night that delivers more than $5 billion for the long-term promise to portable pit senate majority leader mcconnell says he supports that bill. minority leader chuck schumer about that democrats will vote against it. chief white house correspondent john roberts is live with the latest. john? >> the president has been in the oval office for more than 35 minutes now, as he signs the prison reform bill. the president has been talking about all of this. we don't yet have the recording about what happened in the oval office, but we should have it for you