♪ >> government shutdown stretching into christmas day with no end in sight as president trump and democratic lawmakers remain locked in a better stalemate over funding, the president's border wall. hello, everyone, welcome to americas news headquarters. >> great to be with you on this christmas day. potentially though, a different christmas feeling for hundreds of federal workers who next paychecks are on hold until they shut down ends. president trump weighing in on the stalemate this morning from the white house after a christmas video call with u.s. troops around the world. >> can tell you whether the

government is going to be open. i can tell you that it is not going to be open until we have a wall, a fence, whatever they would like to call it. i will call it whatever they want to. but it is all the same thing. it is a barrier from people pouring into work country from drugs. >> not even christmas day a slow news day at the white house, allison barber with all of the news. >> hi, molly, estimated that 800,000 federal workers are going to be impacted or are being impacted by this partial federal shut down president trump says that he has spoken too many of them and claims that they wanted to continue. >> many of those workers have said to me and communicated stay out until you get the funding for the wall. the federal workers want the wall, the only one that does not want the wall are the democrats. >> 62% of american voters had that they would oppose shutting down the government over differences about finding a wall over the u.s.-mexico border,

that according to a quinnipiac poll conducted earlier this month. republicans however said that they supported shutting down the government over the wall, 59%-33. the president also announced january trip to texas. >> yesterday i gave out 115 miles worth of wall. 115 miles in texas. and it is going to be built hopefully rapidly, and going up there at the end of january for the start of construction, that is a big stretch. because we are talking about 500-550 miles, we have renovated a massive amount of wall and in addition to that, and i think very importantly, we have built a lot of new wall. >> we asked the white house for more information on the 150 miles wall contract that he gave out in the oval office yesterday and we are in texas it will be built, the administration has not provided any information other than what we have heard from the president in the oval office today and

then on twitter yesterday. the president invited republican lawmakers to the white house free lunch to discuss border security issues. he did not as far as we know invite any democrats. none of them attended to, and none were invited, even though he did say today speaking with reporters that he is willing to meet with the democrats at any time. molly. >> molly: we will see if they can come to a compromise this week or much later on. thank you very much, allison barber from the white house. >> blake: for more on this list to bring in data mart, the editor for the "washington examiner." thank you for joining us on this christmas day. >> good to be here, thank you. >> blake: where do we go from here? congress will come back in one way or another on thursday and it is no real end in sight, is there? >> not much reason to think that on thursday much will get done, this is likely if not probably headed into the new year, really january 3rd when democrats assume the majority in the house

of representatives. of course, there is no assurance that anything happens on that date. but democrats do get some more leverage in the standoff with president trump. and maybe in the days or weeks following, something will break. >> blake: that is the question, is this days or weeks or months? because while there is a change up on capitol hill with democrats taking control of the house, democrats are insistent that the president is not going to get money for the border wall, and the president insists that he wants money in some form or another. >> both sides have given every little indication of a little wiggle room here and there. the president said, i think it was just yesterday or the day before that he would go for a fence or something of that nature and did not necessarily have to be called a wall, per se. >> blake: why do you think he is doing that? i was out on the campaign trail, we all watched it. i did not hear build that fence, i heard built the wall. now they are changing the

terminology, why? >> steel slats, whatever the president wants to call it. because he realizes that he is limited leverage at this point. his side lost the election, republicans lost the house in the 2018 november elections. they do not have nearly the power that they did. so i think that he is trying to walk it back at least somewhat. the problem is that he said so many times as you said on the campaign trail that mexico would pay for this wall. nothing like that is in sight. and i think the democrats on the hill smell blood over that. and they think that they have the upper hand because of that. >> blake: you have president trump taking aim at democrats as it relates to the border wall, stalemate, the shutdown, he is also in the recent days and weeks very, very critical of the federal reserve. he was asked today about steve mnuchin, the treasury secretary and there were some comments that mnuchin said it rattled the market, he is confident in mnuchin. but he also made this, right here as it relates to that state of the economy. i want to get your reaction on the other side.

>> it is good for a lot of people. they have money in the bank. they get interest on their money. for many years nobody got interest on their money. but i have great confidence. i have great confidence in our companies. we have companies, the greatest in the world. they are doing really well. they have a record kinds of numbers. so i think that it is a tremendous opportunity. >> blake: tremendous opportunity to buy, i'm not sure if he was giving stock advice, but on the front side was interesting to me. it's the president just excepting at this point that this is the interest rate environment to that he has been dealt? and that he has to live with and that this is not a political issue that he can control? >> to somebody else to blame, jerome powell, the fed chairman as a scapegoat. it is not just the fed chairman who raises or lowers interest rates. the entire fed board, it just does not happen overnight. but the president cannot just fire the fed chairman like he could the treasury secretary if you were so inclined.

president trump is far from the first president to feel like the federal reserve is hampering his ability to govern, hurting the economy at least in the short term does not mean that he is right or wrong, but there is a limited amount almost nothing he can really do about it. >> blake: what do you think the economic message will be in 2019? because he talks about the stock market run-up and we have seen it go the opposite direction over the last two months. >> that was an interesting comment that we heard him making that it is a good time to buy. that is a good way to look at it that maybe there are more opportunities in the market for a lot of people watching their 401(k) and other investments around this christmas time, i'm not sure how they would see it. if they see it that way, but it is one way to spin it forward for the president. >> blake: david mark coming in on this christmas day, we appreciate it. merry christmas. >> molly: a federal judge ordering north korea to pay more than $500 million in a wrongful death flute told the family of otto warmbier, the college

student who died in june 2017 after being released from seven months in captivity in north korea. which is live with more. >> a federal judge says that north korea likely tortured otto warmbier area -- and used his attention as leverage against the united states. chief judge barrel rights before he traveled with a tour group on a five day trip to north korea, he was a healthy athletic student of economics and business in his junior year at the university of virginia. he was blind, deaf, and brain-dead when north korea turned them over to u.s. government officials for his final trip home. in january 2016 north korean authorities arrested him as he was leaving pyongyang, accusing him of stealing a propaganda poster. a year and half later u.s. officials say that otto warmbier was in a coma, demanding the release and return to u.s. with a severe brain damage and died less than a week later.

north korea denies responsibility for warmbier's death lamps that he contracted to botulism, doctors who examined them denied that he had the illness. since then the relationship has changed dramatically, culminating in a june settlement between president trump and kim jong un, the president says he is looking forward to his second meeting with kim and the new year, tweeting out a photo of a meeting in the oval office with his north korea team, the president says that the administration is making progress, but the lower level negotiations appear stuck in the administration special risen but but -- wrist representative has had problems with his counterpad canceled a scheduled meeting in new york last month. with the secretary of state mike pompeo. analysts also say that north korea has continue building the weapons infrastructure and last month they state that media said that pyongyang would refuse to surrender at the weapons until the u.s. eliminated their threat to north korea first.

>> molly: very serious news on this christmas, rich, thank you for joining us on christmas. merry christmas to you. >> blake: james mattis sending a christmas message to the troops, recorded one day before he submitted his resignation last week's. >> since washington crossed the delaware christmas 1776, american troops have missed holidays at home to defend our experiment in democracy. to all of you lads and lasses holding the line in 2018 on land at sea, or in the air, thank you for keeping the faith. merry christmas, and may god hold you safe. >> blake: may god hold you safe indeed, he submitted his resignation last thursday, a day after trump said he would withdraw from syria. christmas festivities are underway and the town of bethlehem, trey yingst is in the mideast bureau on this christmas day. great to see you. >> blake, merry christmas to you in the family. from vatican city to bethlehem and thousands of cities in

between, people kicked off christmas with traditional religious ceremonies and some major celebration on monday night. pope francis led the traditional xmas eve mass in st. peter's basilica. focusing his remarks on western consumerism and asking churchgoers how much of the material they buy is actually needed. earlier the pope addressed a crowd of more than 1,000 people from a balcony of the basilica in vatican city. meanwhile in the ancient city of bethlehem, tourists and pilgrims gathering in the square to watch the latin patriarch procession at the birthplace of jesus christ paired with representatives of the vatican in attendance and boy scouts paraded. it traditional midnight mass was held in the basilica of the nativity. the event was attended by palestinian president. and while this celebration stayed take place in vatican city and bethlehem, it is important to note that it was not just joy and church bells across the middle east. 40 people dead die in kabul,

afghanistan, and a government attack on christmas eve. >> blake: live in jerusalem tonight, thanks. >> molly: christmas with the royals where meghan and kate said that harry and william celebrated and what the clean had to say and her christmas message. we'll have that for you, and kevin spacey facing fresh legal trouble as he releases another strange new video. >> you would not do that without evidence, would you? you would not rush without facts, would you? did you? you are smarter than that. ♪

♪ >> blake: one way to celebrate christmas, over in the u.k., the british family arriving for services on one of queen elizabeth's country estate. cheering prince william and his wife catherine, and prince harry and his wife meghan, the queen delivering her annual

christmas message, she spoke about treating others with respect. >> molly: after kevin spacey facing a felony charge after massachusetts police say that he allegedly sexually assaulted a teenager. at least one dozen men have made similar allegations over the years, but this time he has released an apparent response. breaking a year-long silence with a house of cards inspired video on youtube. >> some believed everything, and have been waiting with baited breath for me to confess at all, having me to clear that everything is true when i got what i deserved. >> molly: joining me now is steven greenberg, criminal defense attorney, thank you for being here on this christmas day. kicking things off, chance to see the video, what you think of it? >> i think it is beyond bizarre, he does not deny doing anything wrong. which is troubling, because it means that a prosecutor can

probably use the video. then you wonder why is he stepping into this character, why is he cooking, why is he being so cryptic, you never want your client to talk at all as a criminal defense lawyer coming in here you are just giving something that makes people think what is up with this guy? he is just out of it that we think that he has done this. >> molly: does that set up a defense that that is mental instability? >> let's face it in today's day and age, when it comes to celebrities in these kinds of accusations, people presume guilt, the presumption of innocence that existed in the past is no longer there. and then he put this out where you do not look at the camera, you do not do it as yourself, and you do not say i did not do anything wrong, there is nothing to the allegations. you say one day every one will know the whole truth. >> molly: could the video be used against him in court? as he mention he is not himself, he is playing a character.

>> but he is himself, he has chosen to be the character in the video. so i think a prosecutor could get into evidence the question would be what a jury would do with it and how much weight they would give to it. you want your client to say i did not do this. i am not guilty. but you want him to say nothing at all. >> molly: the charges he is facing are pretty serious, a felony charge for allegedly sexually assaulting a son of a news anchor, happening at a bar in 2016 which means it is in the statute of limitations, the victim's mother explained that he bought her son some drinks, he was under 18 years old, and here it is, take a listen. >> kevin spacey stuck his hand inside my son's pants and grabbed his genitals, nothing could prepare my son. for how that sexual assault would make him feel as a man. >> molly: that's a little bit of an explanation as to what allegedly occurred, your

thoughts on the seriousness of what this mother is explaining happened to her son. >> it is an extraordinarily serious charge, but it happens in 2016, 2017 they hire a civil lawyer to pursue a lawsuit, somebody who is well-versed in these kinds of cases, and ultimately a year and half later, the charges are brought, what do they uncover in the meantime? why did it take them a year to report it or almost a year to reported. are there other witnesses at the bar, so on and so forth? >> molly: what are the answers to those questions, what could have occurred? >> you would like to think that he brings a charge because he has enough evidence to win. so hopefully for the prosecutor's sake he has uncovered other people. maybe the bartender who was working that night has told them that they observed threatened n things, but it will come down to everything one-on-one. kevin spacey's word against the

young man's word. >> molly: a number of high-profile actors that have seen charges come against them, the cosby trial was a really big trial. in this case kevin spacey is very well known, how does the judge prevent us from becoming a media circus? >> they have celebrity trials for years, you pick the jury, the jury lies and says that they have never heard anything about it. they all lie and say will not make a difference. and as i said earlier, you used to have this super presumption of innocence. o.j. simpson got it. phil spector got it. but now you have almost as presumption of guilt, and i think that it is much harder for jurors to give the celebrity the benefit of the doubt. >> molly: kevin spacey obviously talented actor, we know that. if you are his defense attorney and this goes to trial, would you tell him to take the stand? >> i've not heard a story. so until i hear the story, i do not know what to tell him. the problem with the actor

taking the stand is jurors are going to say that he is acting. that's the other problem. look at how good he is in this video. he is going to be good on the stand no matter what. but how are people going to perceive that? >> molly: that was my next question for you as a defense attorney, how do you deal with that problem? >> you do what you got to do. you never know until you see a trail and fold what you need to do during the trial. you cannot go into a trial saying that i am definitely doing this. i'm definitely doing this. you have to react like being in a sports match. >> molly: stephen greenberg, fascinating story as it is developing, january 7th, it looks like it is an arraignment date. we will see what happens from there. thank you for joining us today. >> thank you, merry christmas. >> molly: merry christmas to you. speak to coaster year for business in a roller coaster few days as well. the economic worry in a brings a deal with the u.k. and the european union in limbo, fox news and fox business anchor maria bartiromo takes a look back at the moment that shape

2018 2018 in business. >> the year in business will likely go down remembered mostly for how it is ending with head spinning moves in the stock market, uncertainty glue to let the globe. the stock market rocked with wild moves up and down, but sadly for investors there has been more down than up. in europe brexit on the brink. >> i continue to think that we can leave with a good deal, and that is it. >> paris in pieces. citizens rioting over a new gas tax looking to curb carbon emissions. all as it is humming in ways not seen in years, the president's tax plan kicking in january 1st, sending second quarter gdp north of 4%. in the unemployment rate all the way down to 3.7%. >> the fact that a business can write off 100% of an investment is an enormous incentive to get people to make capital investment and that capital

investment creates more jobs. >> look at how the workers are having the best increase in many, many years. the economy is crushing it. to speak about the euphoria feted by midyear, the president's america-first policy memory negotiating old trade deals. president trump singh in april that the united states will not back down until it is better terms with the rest of the world. notably china. >> will get back down? >> no, no, china wants to make a deal. and so do i, but it has to be a fair deal for the country. >> the administration calling out china on ip theft, the forced transfer of technology, spying on americans, and lopsided tariffs. while doing so, global growth is persistent. president trump calling out his chairman for raising interest rates bridge >> i think that the fed is making a mistake. they are so tight, i think that the fed has gone crazy. >> higher rates in the china tension rolling the market by the year's end, with a big hit in the fourth quarter.

the business world also was still rolled by the me too movement, including less moon beds of cbs, fired and deprived of a massive severance package after investigation and covering years of alleged sexual harassment trade also you're a a big challenge is for a big tech. >> we did not take a broad enough view of our responsibility. it was my mistake. and i am sorry. >> the facebook-cambridge analytic scandal revealed that they took the personal data of millions of people's facebook profile without their consent. and it was used for political purposes. facebook stopped taking a beating in others such as google under the microscope for privacy issues related to calls for tighter regulations. the 2018 saw a big change internet, if you notice. net neutrality was repealed by the trump administration despite promises of doom, the internet seems to work the same as before. but not the same as before a per believe is a bit cryptocurrency riding high, but crushing

below 5,000, the midterm elections setting ahead with new uncertainty with the democrats and the majority of the house, creating new questions over what can get done legislatively. >> i am proud to shut down the government on border security. >> 2019 with a new congress and a divided government, that has been good for business in the stark parking -- stock market, the launch is growing, but the u.s. will need to ratify the nel with mexico and canada as well as finish the work with china among other things. and in this era of a nontraditional president, where business and politics overlapped, you can be sure that more surprises are in store for the new year. maria bartiromo, fox business network. >> molly: coming up, the latest on the deadly tsunami in indonesia and the death of cold that continues to rise. and the stock market in a tailspin. as president trump continues attacking the federal reserve. >> rising interest rates to pass. that's my opinion. the fact is that the economy is doing so well that they raised interest rates.

♪

for each job exxonmobil creates, many more are created in the community. because energy touches so many industries, it supports 10 million u.s. jobs. >> molly: fox news alert, the death toll rising after a powerful tsunami hit indonesia without running saturday night, the disaster agency says 429 people are dead and more than 1400 more are injured. the massive waves possibly from an undersea landslide after volcanic corruption. amy kellogg has more.

>> hi a, for people who live by the sea and have their livelihood upon the sea to be betrayed by it in such a horrific manner is truly dramatic. and we are seeing scenes of people frightened to go back to what remains at their homes today, the most scary thing about all of that some say is that there was just no warning. it happened very suddenly, no alarms, no warning signals, and that has people particularly shaken, not happen saturday night as he mentioned, molly, after a volcano erupted sending a landslide into the sea between job and sumatra, as the search for survivors continues, survivors who may still be trapped under the rubble, it becomes an altogether less promising prospect. and public health officials are saying that they are very concerned about the spread of disease in these conditions. the death toll is over one house and people who have been injured, and more than 100 missing. a 16 16,000 are homeless.

it will be a daunting recovery for the resort areas that cater to indonesian tourists. getting back together what little they could salvage to sell as fishing boats were a reminder of how livelihoods were wrecked along with homes and lives. a muslim majority country, but there are a christian community who rather than rejoice the advent of christmas today sought comfort in church. >> we usually celebrate it with joy and festivities, but with this tsunami, we can only pray humbly and not celebrate much. for this year's christmas. >> the volcanoes whose eruption, molly, what caused the terrible tsunami was formed by another volcano imploding onto itself. it grew out of the caldera that remain, a lot of people are saying that 90% of tsunamis

which are not uncommon in that part of the world are caused by earthquakes and the fact that this was caused by a landslide of a volcano is likely why the warning signals would have sailed. others say that the warning systems were really faulty anyway, subject to a lot of vandalism could all of that quite shocking given that a colossal tsunami that happen in 2004 in asia one would think that alarm systems and early warning systems would be a much better shape at this point. >> molly: a number of factors came together to make this so deadly, amy kellogg, thank you so much. >> blake: the stocks taking an historic dive in christmas eve sure trading session yesterday, the dow falling 3% down 653 points, the worst christmas eve drop ever. it comes as investor worries about slowing growth and rising interest rates string fears of potentially a recession down the line, despite a solid economy right now. let's bring in francis newton

stacy, the director of strategy at optimal capital. thank you for joining us, merry christmas. >> merry christmas, think you for having me. >> blake: what is going on? what do you pick this to you in the last day and week. >> oh, certainly, i think the people are a little bit frightened after living through the 2008 financial crisis, truth be told. but they are two different aspects. the fed is driving the mechanical aspects of the market. everything that they are doing is mechanical. any time they raise the interest rates it affects different areas in different ways, whether it is a variable interest rates that are going up so that is harder to a service or whether it is more difficult to get new credit. credit any time somebody establishes credit they are bringing money into circulation, any time a loan is paid off money is coming out of circulation. so they are driving the mechanics of how much is in circulation which is significant. as an institutional investor we look at numbers like that. however, the whole balance sheet normalization process is a

double whammy on the interest rates, and actually the scariest thing that the chairman said in his news conference had had the largest impact on the market because institutional investors represent such a large volume of the market is the fact that the balance sheet is on autopilot. >> blake: i was going to say that that is getting into the way where i want to keep it big picture, because you talk about fed and the fear, which i am glad that you did, because they are two issues, but start with the fed, the wall street editorial board noted that since the fed decided to raise interest rates, the dow was down 8.1%, the s&p down a .2%, here's what the wsa editorial board said. the fed is obligated to focus on the real economy rather than the stock market which has had a good long run, but the market reaction to the fed decision has been negative enough to warrant some soul-searching." does the fed have to do some soul-searching? >> certainly. because even if the fed has an

obligation to the broader economy, anybody who has a 401(k) that is getting reduced anywhere from 15 to 30%, i have seen some people who were allocated in the tech stocks and their portfolios are down such a large percentage that is going to affect consumerism and other aspects of the economy. anytime you see dad harder to surface in the system that will affect corporate balance sheets. if that will affect earnings, because corporations are going to start, it will cost them more to service their debt, we have 9 trillion in corporate bonds outstanding. they are less likely to hire. there is a trickle-down effect and markets are leading indicators. the broader unemployment numbers, job numbers, some of the things that the fed is focusing on our lagging indicators. they know that, traders know that, that is a volume that is being traded. >> blake: let's talk about fear, 2008 was a decade ago, nobody is saying that 2008 will return definitively in the 2019, but some worry about that.

there is a fear, even though it was a decade ago, people remember that. is this kind of building on it in a potentially working itself into a into a self-fulfilling prophecy at this point? maybe it could be headed down that line? >> i think that that is a big part of it, however what is so interesting is the unprecedented money brought in to circulation during the quantitative using area, which is the fed putting money into circulation to sure up some of the credit crisis which is lack of money in circulation. and now reducing that. we saw what that dated to the stock market, it went straight up, and now with the idea that we are reversing the course, people will be scared because nobody knows how that is going to happen and the pace of everything. >> blake: here's what the trump administration would argue, folks within the white house would say when i would talk to them, they would say that the market has been up since the president was elected they would say that there is going to be 3% growth this year. they projected that there is going to be 3% around their

growth next year. the market has been better under them then it was under president obama, growth has been better under them then it was under president obama, do they have an argument? >> yes, that is true, the only thing that is going to change that argument is if what the fed is doing makes any debt difficult to service to the point where we have problems in the credit market. you start credit defaults and things change very drastically and quickly, and that will have everything to do with the pace that the fed is doing that. so if you have massive defaults in the corporate bond structure, student loans, private auto, that will fly in the face of that. other than that there are lagging indicators that things are strong. >> blake: the market in 2019, up or down? >> i think down in the first and second quarter for sure, and depending on the fed and whether they reverse, potentially down. if they start easing, up. >> blake: thank you for joining us today. we will see what happens in

2019. that affects a lot of people. we appreciate you coming on in. >> thanks. merry christmas. >> molly: the historic plunge, just the latest story in a year that saw president trump's summit with kim jong un, deadly mass shootings that rocked the nation and so much more. chief anger shepard smith takes a look back at the events that shape 2018. >> 2018 brought an election that shook up d.c., major action on immigration, and a showdown over a supreme court nominee. those stories and more, dominating headlines in 2018. figure kicked off with a big mistake in hawaii. an emergency alert system falsely warned of an incoming missile from north korea. the incident led to calls for changes in the alert system. president trump got into a trade war with china. after slapping new tariffs on some products. he said that it was payback for unfair treatment. washington and beijing later agreed to a temporary truce.

in parkland, florida, a gunman killed 17 high school students and staff. a few months later, he is shooting at a high school in santa fe texas left ten dead. the trump administration announced a zero-tolerance policy that led to the separation of immigrant children from their parents at the borde border. the president later signed an executive order to end the family separation. north korean leader kim jong un met south korea's president in the dnc. setting the stage for president trump's own settlement with kim. the two leaders agreed to try to ease military tensions and work towards denuclearization. america's dad to bill cosby convicted of sexual assault, and sentenced to 3-10 years behind bars. his lawyer said that they would appeal. the president also recognized jerusalem as israel's capital. and move the u.s. embassy there. the u.k. celebrated a royal wedding. people around the world watched

prince harry mary the the amern actress meghan markle. our neighbors to the north made big news, canada the second country to legalize recreational marijuana. org why was the first. supreme justice anthony kennedy retired, and to nominate kavanaugh to replace him. that led to an emotional hearings over decades old accusations of sexual assault. judge kavanaugh denied the accusations and the senate confirmed him. divers rescued 12 boys and their soccer coach from a cave in thailand. they were stuck there for more than two weeks trapped by rising waters. in the russian investigation, the former trump campaign chair paul manafort convicted of tax and bank fraud. he also pleaded guilty to two counts of conspiracy. special counsel robert mueller accused him of violating that plea deal by lying to investigators.

the deadliest anti-semitic attack in american history took place at a synagogue in pittsburgh. the gunman opened fire during saturday services. 11 people killed. thousands of central americans headed towards the united states in a caravan through mexico. president trump deployed the military to the southern border. a few weeks before the midterm elections. and in those midterms, a split decision, democrats won control of the house, but republicans gained ground in the senate. in california at the so-called camp fire became the deadliest and most destructive wildfire in state history. it obliterated the town of paradise and killed more than 80 people. family, friends, and colleagues gathered to remember former president george herbert walker bush who died at age 94. he died months after his wife of 73 years barbara. looking ahead to 2019, democrats and republicans will share power in washington as the next

presidential contest starts to take shape. of course, we will be here for it all. in new york, shepard smith, fox news. >> blake: democratic leaders with some harsh words for president trump and he fires back with a partial government shutdown, now in dave four, is there any end in sight? plus a new report on the fight against fossil fuels. in the impact of that fight could be having on the economy. details coming up. ♪ the wonderful thing about polident is the fact that it's very, very tough on bacteria, yet it's very gentle on the denture itself. polident consists of 4 powerful ingredients that work together to deep clean your denture in hard to reach places.

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>> blake: fox news alert some developments along the southern border according to customs and border patrol, another child has died in custody an 8-year-old child from guatemala. standing from a cold and a fever, first went to the hospital according to cbp, say that he was released after observation, then had to return and after that, that is when the child passed. he is the second child immigration second child to die in custody. this month. some of the partial government shutdown now in the fourth day with the white house and democrats locked in a very bitter stalemate, both sides really digging in over border security, eric beach is a public strategist and executive director of the project and a democratic strategist, thank you for being here on christmas day, merry christmas. the president is dug in, he is all cozy in the white house, many of the lawmakers have gone home across the country and we

will not see action at least potentially on till thursday, a lot of paperwork going on to find close doors. which side has dug in the hardest? which side will actually be working towards a compromise? >> i think that there is no compromise. he ran on presenting a border wall to the american people and national security. and look at, it is not just the democrats. it is also many republicans that did not perform in the last five years congressional ratings have gone as low as 9%. but what that tells me is that the house of representatives needs to understand the american people and understand that president trump won despite many of their policies or prescriptions that they try to get past. so i think that the president is on the right track it, he should dagan and i think that he should go back and ask for the 25 billion. the one area that i disagree with his do not just go against the democrats, the president is not just a republican party guy, he represented a class that was not being heard. that is middle america.

and you should say, look at, congress needs to deliver on his top policy that he ran on. >> molly: i want to listen to what president trump had to say, he is working today. here's what he had to say. >> the democrats, because they do not mind open borders, but open borders made massive amounts of crime, the democrats do not wanted to because they do not want open borders. any ads, every one of those democrats approve the wall or a fence or very substantial barriers, every single one, and i do not think that there is one, but let's assume, let's use the word almost everyone approved a wall. or a fence or exactly what we are talking about. as little as three years ago. >> molly: that is one of the big complaints that republicans have been making that essentially democrats had very recently, and the president mentioned a three year timeline, agreed to fencing more more

money, or to all sorts of things, and now they are not. what is your response to that? to republicans saying that the democrats were far more cooperative, and now they seem to be holding out. >> i think the democrats are looking at providing oversight, and frankly the president is responsible for quite a number of problems when it comes to border security, we have two children who have died in federal custody so far, in terms of what it should be, it should be preserving life on all sides. and so far president trump has shown that he is not interested in that. he is interested in give me people who look like me out of the country because we do not belong to the political class that elected them. and he was elected by a minority of americans, what does that say? he does not have a mandate after all. >> molly: democrats are also taking a similar attack against republicans and the president, this is a statement from nancy pelosi and chuck schumer, saying that different people from the same white house are saying different things about what the president would accept or not accept to end the shutdown, making it impossible to know where they stand at any given moment.

what is your response to that? that republicans are not being clear about what they would accept to move the ball forward and get the government restarte restarted. >> there was a deal on the table, many conservatives oppose the deal, where there was some going in for the border wall in return for daca. the idea is that the president and the administration has tried to compromise with democrats, he has also tried to compromise with republicans who also do not want a wall, so his job is to protect the national interest of america and american citizens. so he has put deals on the table, the truth is that the democrats have nothing that they have tried to support in terms of border security. they do not support protecting us against sanctuary cities. they do not support any of that, they have not come together. and what will happen is that they will overreach going into the new year, and i think that this will be healthy for the administration in the long run. >> molly: i want to your thoughts on something eric just

said, he mentioned that daca for the wall deal, something we have heard before, but now a lot of semantics even from the president. he said i can tell you it will not reopen referring to the government until we have a wall, a fence, whatever. we talk about changing the semantics, could we get to a deal of daca for the fence, is that we could potentially be what solves all of this in the coming weeks? >> i think what will solve it is the president realizing that he does not have any cards left to play, we have to protect american lives and those aspiring to become americans coming to the border every single day of illegally and through undocumented means, the president does not have a plan on the table that gets democrats and republicans together to agree on what needs to be done to open the government. this is on him. as far as i can tell, the democrats have a much stronger position. take them at the house with much more seats than at the time of watergate, and frankly doing oversight to make sure that he is held accountable for his mistakes and his misdeeds as president so far.

>> molly: the democrats to gain majority power again at the beginning of january, we will see what happens. eric beach, think of joining us on this christmas day. we appreciate it. >> merry christmas to everyone. >> blake: coming up, activists fighting fossil fuels in order to keep it in the ground. a new report highlighting the effort by those activists and their impact on the u.s. economy. stay with us. ♪ managing my type 2 diabetes wasn't my top priority. until i held her. i found my tresiba® reason. now i'm doing more to lower my a1c. once daily tresiba® controls blood sugar for 24 hours for powerful a1c reduction. tresiba® is a long-acting insulin used to control high blood sugar in adults with diabetes. don't use tresiba® to treat diabetic ketoacidosis, during episodes of low blood sugar, or if you are allergic to any of its ingredients. don't share needles or insulin pens. don't reuse needles. the most common side effect is low blood sugar, which may cause dizziness, sweating, confusion, and headache. check your blood sugar. low blood sugar can be serious

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♪ >> molly: barcelona on high alert after a u.s. terror warning during the christmas and new year's holidays. at the state department sent that security alert exercising higher caution around buses and

public transportation. this man has kept the terror alert at the second highest level despite the u.s. warning. >> blake: a new report from the commerce and trade union saying the fight against fossil fuels is hurting the u.s. economy. william la jeunesse is live in the west coast newsroom. what is this keep it in the ground movement and what is it doing? >> rather than fight every well or power plants, the movement targets pipelines and ports. if that company cannot get their gas from oil to mill to market. the keep it in the ground movement is costing the u.s. economy $91 billion, $20 billion in lost tax revenue and more than half a million jobs. >> we all went to cleaner air, clean water, good use of our lands, but shutting down energy production overall is not a solution for this economy or for the world. >> so the report examined 15

projects across the country booting coal and natural gas in turn terminals and pipelines on the east, delayed or killed because of the taxes, protests, p.r. campaigns, sabotage, regulation, and legislation. activist offenders saying that global warming is a real and present danger in keeping coal, oil, and gas in the ground is the only way to avert the climate catastrophe. >> we are talking about companies that would take oil and gas off of public lands, basically take public resources and export them for profit that benefits a company is and not the public. >> so is it working? and no. the strategy with the industry pipelines and the places to explore the energy is forcing some investors and banks to walk away. on the other hand, domestic production is booming, coal is surging worldwide, as every -- as we have seen in paris, many

do not want to accept alternatives if it means higher prices. the bottom line, the market is changing, maybe not fast enough for everyone which is why we saw the protest at the dakota access pipeline. that i believe will be the new blueprint going forward for these activists to try to stop and basically blackball, if you will, companies that are associated with these type of projects. >> blake: we did see that in dakota, and so would have been in paris as well. all over the world. we will see where it takes as paid william la jeunesse, thank you. we appreciate it. >> molly: day four of the partial government shutdown, remaining in an impasse over the border wall funding paid how long the stalemate could last next. ♪ ♪ ♪ o i only pay for what i need. oh no, no, no, no, no, no, no...

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but prevagen helps your brain with an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. healthier brain. better life. >> president trump continuing to stand firm, saying the partial government shutdown will not end until he gets the fund hess wants to secure the border. thank you for joining us. >> great to be here. the president sending a christmas message to democrats making it clear he is not going to budge, warning the standoff could last into the new year. >> i can't tell you when the

government will be open. it won't be open until we have a wall or fence or whatever they want to call it. it's all the same thing. it's a barrier from people pouring into our country from drugs. it's a barrier from drugs. >> elyson is at the white house. what's the late scene of the accident >> reporter: the president said he will not end this shutdown until democrats agree to pay for some sort of physical barrier at the southern border. he also told reporters this morning he plans to go to texas in january. >> yesterday i gave out 115 miles worth of wall. of texas. it's going to be built hopefully rapidly. i'm going there at the end of january for the start of construction. that's a by stretch. we're talking about 500 to 550 renovated a massive amount of wall. in addition to that, and i think very, very importantly, we've built a lot of new wall.

>> reporter: mr. trump began with a video call to troops overseas and took a number of questions, talking about the shutdown, his treasury secretary, the federal reserve. the president mentioning he stayed in washington, d.c. because of the shutdown. democrats, of course, say it is a shutdown of his own making. >> the people of this country want border security. it's not a question of me. i'd rather not be doing shutdowns. i have been at the white house. i love the white house. i wasn't able to be with my family. i thought it would be wrong for me to be with my family. my family is in florida, palm beach. i just didn't want to go down and be there while other people are hurting. it's gonna all work out. >> reporter: the president did tell senator chuck shumer in the oval office that he would be proud to shut down the government and that he would take the blame if one were to occur. mr. trump told reporters he cannot say when the government

will open back up, but that he must have funding for that physical barrier of some sort. fence, wall, whatever you want to call it. there are new reports that another child has died in custody. what can you tell us about that? >> reporter: this is brand new information. border patrol says they are reviewing the death of an 8-year-old little boy from guatemala. the child reportedly began to show symptoms of illness while in custody of border patrol on christmas eve. according to custom and border patrol they took the boy and his dad to a hospital in new mexico. the child was initially diagnosed with a common cold and ultimately the hospital decided to release him with medicine. they say later in the day the child started to exhibit symptoms of nausea and vomiting, so they took him back to that hospital in new mexico. he died at the hospital in new mexico shortly after midnight on

christmas day. the department of homeland security office of the inspector general has reportedly been notified of this. the cdc say they are reviewing this. official cause of death is not known. but this is the second child to die in the custody of border patrol this month. of course, the last death of a little girl from guatemala caused a lot of questions to be raised by lawmakers on capitol hill. many calling for an investigation and whether or not that girl had adequate access to food and water. molly? >> heart breaking loss for those parents. thank you. >> to syria, where turkish backed syrian fighters are preparing to replace u.s. forces. this after president trump ordered all u.s. troops out of syria. lucas tomlinson is live with the very latest. merry christmas to you. so what's the biggest concern right now at the pentagon about

the turkish backed forces? >> the concern is turkish military would invade syria and race to seize oil fields currently held by u.s. backed kurdish forces. officials are concerned about growing fighting among the groups. we asked what would happen to any potential u.s. withdrawal from syria. >> when we got something that's working, as we have in northeast syria, we don't want to pull everybody out of there and risk what happened in iraq. >> what would happen if the u.s. pulled out of the middle east altogether? >> turkey calls the u.s. backed syrian democratic forces a terrorist organization. the syrian government would also object to turkish forces invading its country. in 1939 turkey annexed a portion of syria and both nations have been at odds ever since. president trump said the u.s.

withdrawal from syria will be slowed and now highly coordinated with turkey. >> since the announcement of the withdrawal, has the u.s. struck inside syria at all? >> they have. just this morning the u.s. led coalition released a statement saying air strikes continued in isis in iraq and syria. the artillery continues to shell isis positions around the clock. the latest is within range. critics say leaving syria doesn't just help turkey, but others in the region as well. >> withdrawing u.s. troops gives a huge boone to iran and russia, who wanted nothing more than to have the united states withdraw. having a u.s. presence there has been an incredibly important component of our strategy. >> it's estimated 2,000 isis fighters remain in eastern syria. blake? >> we think about those troops around the world. lucas tomlinson at the pentagon,

thanks. president's decision to pull troops out of syria being met with mixed reviews by lawmakers. bob corker strongly believes it's the wrong decision. >> i'm just saddened for our country. i'm saddened for the broken relationships with countries that have been with us. i'm saddened for the kurds and others that likely will be killed and slaughtered by either the syrians or the turks. i'm saddened for our country and being so unreliable. >> joining me now, staff writer with the washington free beacon. corker talked a little about being saddened for essentially some of the allies that are there still in the region, particularly the kurds being left vulnerable. your thoughts on that aspect of this pullout of syria on the part of the united states. >> reports we are hearing today about the turkish backed forces

that are going into and joining the fight, that's exactly what republicans have been warning ab. you do have some republicans like senator rand paul for example who is more of an isolationist who has praised the president on his withdrawal from syria. there's a lot of uneasiness for members of the president's own party. you have republicans like senator pat roberts who the other day warned that this is going to create a vacuum in the region. who seals that vacuum once we pull out? i think you hear stories like the one today with the turkish fact fighters and you say, is that what people have been saying? >> of course, one of the big questions we will get here. not just who we're leaving behind as far as our friends, but who fills? could it give more power to russia, iran, both of which

released statements after our initial statement that we would be leaving the region and backing out of the region. they were rather excited about that prospect. >> yeah. i have to say there's another concern that we've been hearing a lot from republicans is that this could destablize the region as well. and allow isis to regenerate and regroup. senator cheney said this is a decision that the president is going to come to regret and because at some point the united states might actually need to go back in and send troops back in. that's gonna come at a greater cost for the american public. >> this is not a surprise in the sense that the president has said this is something he planned to do. he wanted to bring the troops home. there's also a contingent of folks who believe the united states need to keep troops essentially in this area, in this region of the world to keep a lid on extremism growing. your thoughts on those two

elements of which direction america should go going forward. >> i think we're going to see this addressed more when congress gets back into session. there have been calls for oversight from people like senator lindsey graham, who says he wants to be hearings on this after the holidays once congress reconvenes. so i think at that point we'll hear more from the pentagon and people who have decision making capabilities about what their thought process was and what they think the consequences of this withdrawal is going to be. >> one of the other things we need to look at is who will take over for mattis. your thoughts on this kind of timing and the change in leadership. mattis letter, resignation is seen as a rebuke on the part of the president. in essence a new leader would see eye to eye.

>> that's right. the letter from mattis, on his policies. that's why you saw him want to let mattis go earlier than when he stepped down. the president needs to have somebody in that position who he can rely on and who he sees eye to eye with on these issues. >> one of the things the president's talked about is who he's been in touch with that's helped him make this decision. turkey has said they're going to step in and work in this region. of course, we have to determine how that will work out for the kurds. president also tweeted ab saudi arabia. this is their region. they're going to work and help the people of syria. >> i think that's probably something that congress is going

to want to examine when they come back in and when they're doing oversight on this issue. especially with everything we've seen happening with saudi arabia recently. there have been a lot of concern by members of congress. i'm sure they'll want to look into that. >> elena goodman, we'll have a lot to watch. things will kick off early january. we appreciate it. thank you. >> thank you. merry christmas indeed. lots of people across the globe celebrating christmas today. with many visiting the vatican to see pope francis in st. peters square. he offered a christmas wish today asking for fraternity among people regardless of nation, culture, ideology or religion. many attended night mass in jerusalem. hi, trey. >> reporter: hi, blake. from vatican city to bethlehem and thousands of cities in

between, people kicked off christmas with traditional religious celebrations and also just getting together with family and friends. just down the road in bethlehem, tourists and pilgrims gathered in major square to watch the latin patriarch procession and hear music at the birth place of jesus christ. marching bands paraded from jerusalem to bethlehem. a traditional midnight mass was held at the basillica of the nativity. it was attended by president abbas. >> what about vatican city? what has taken place there for christmas? >> blake, on christmas eve in vatican city, pope francis did hold the traditional midnight mass, his sixth since becoming pope. pope francis spoke to remarks, asking church goers how much of the material they buy is actually needed? pope francis addressed the crowd of thousands in the vatican. now, while celebrations did

occur at vatican city and in bethlehem, it is important to note that across the middle east, it wasn't all church bells and joy. in kabul, afghanistan, 40 people did lose their lives in an attack on a government building. >> trey, thanks. a volcanic eruption interrupting holiday air travel and covering local villages in ash. details on where that's happening. plus president trump pointing the finger at democrats, saying they are guilty of the things they want to investigate him for. >> there has been a lot of collusion by the democrats with russia and a lot of other people that maybe they shouldn't have been dealing with.

italy's mount etna sending up a plume of ash, covering local villages on seusly in a thick layer of ash. more than 100tremors rattling the area, splitting open a new fissure for the first time in more than ten years. etna is one of three active volcanos in italy. lately it has been extremely active since july. >> i'm prepared to make sure we do everything possible so that the public has the advantage of

as much as the information as it can. >> that sounds like a yeah. >> it pretty much is a yes from my point of view. >> that adam schiff, saying that he would use new subpoena powers to bring robert mueller to congress if president trump were to block the release of that final report that we are all anxious for. a federal former prosecutor here on christmas day. thanks for being here. >> merry christmas. >> here's what we know. there will be this report from robert mueller at some point. then what? >> well, it's interesting. back up. jeff sessions requed himself. saying the report would go to him. then whitaker was named acting attorney general. when the report is complete it goes to matt whitaker. >> assuming he is still the acting attorney general. >> sure. say the new person is confirmed. it would go to him.

>> then that individual, whitaker, decides whether it gets dissemenated to congress. >> does every member of congress have the right to see it? >> it goes to the committee only, so that's tricky. i do think that if a particular person in congress has to see it, they would be afforded an opportunity. come and read it in a room so they don't physically take a copy with them. assume for the sake of argument, blake, that they sit on it and they're not going to disseminate it, then you go to the schiff point, who says we will subpoena it. >> there is no legal right for the average american to see this unless the attorney general, who ever it is at that time, says it's for everyone to see. >> great question. if you look at the statute,

independent counsel and the federal code of regulations. it says that there's no obligation to release it unless that official again whitaker in this instance for right now determines that it's in the public interest. then it gets tricky and in the legal weeds. right in the regulations it says but that individual also has to factor in legal issues like privilege. so the president, that's where everybody is getting confused. the president may block this. white house counsel may weigh in and say we feel that a lot of this is executive privilege. >> if they weigh in and say some of this is executive privilege, could the report be put forward with that part redacted or if the white house says there's executive privilege here. take that route with rudy giuliani? would it be a partial or the whole thing? >> similar to what we've been seeing with all of these redacted documents. they all look like swiss cheese. jokes about x-ray vision.

could be heavily redacted. more than just one category of privilege. you also get into classified information, information that compromises on going investigation, information that has some national security interest. and the fact is, not to be cynical, but i have been in these real world dustups in court and those thins get thrown around left and right. this is an on going investigation. this will compromise something that really implicates national security. it will be an all out fight if it does. i predict they will. >> what do you think? released in full? >> crystal ball, i think it will be released. everybody is thirsting to see it. there may be redactions, but i don't think there will be full pages. i think, you know, the last editorial, it's the ultimate rorschach test. everybody sees in it what twhaeupbt. they're going to cherry pick different lines. it's going to say, we were unable to prove something.

people will be saying, that doesn't mean it didn't happen. then it will be back and forth like a tennis game. >> a new poll says three out of four americans want to see this report. >> people do want to see it. one other thing, sorry, that just came to my mind is that mueller, who hasn't really leaked all that much has to be particularly careful here. if it's not disseminated by doj, mueller, from the special counsel, has to be careful because grand jury information is very very sensitive. >> want to tell you something else adam schiff, part of the case he is building is, look, we went down this road with something that most of the country wanted to see. hillary clinton e-mail investigation. when he goes down that road, now you got to treat it equally. here was adam schiff. >> for the last two years i have been wanting the justice department, as they've been turning over tens of thousands, hundreds of thousands of pages of investigative files in the clinton e-mail investigation, that whatever precedent they were gonna set, they were gonna

have to live by. >> valid.or no? >> to some extent. we saw the shoe on the other foot. it's constantly, wait, back when testify in the other direction, you did this. some are valid, some are not. each situation is different. the fact of the matter is, i'm not a big fan of the cherry picking. i'm a purist. each case is different. >> president continued to talk about collusion. here was president trump. >> there's been no collusion. after two years, no collusion. there has been collusion, but it's been by the democrats. but there's been no collusion. and you're talking about millions and millions and millions of dollars of wasted money. there's been no collusion. >> millions of dollars of wasted money or no? >> not necessarily. it's a valid point to look

closely at how this thing started. then faces start getting red. that's a diversion. politics and law don't mix. i have said it a million times. it's a mixed answer to your question. >> thank you for coming in. go enjoy your christmas dinner. >> thank you very much. >> the dow taking a major dive on christmas eve, suffering its worst loss on that day ever. what could turn things around? we'll look at the economic outlook. plus the death toll continues to rise in indonesia following that powerful tsunami that roared ashore on saturday. details next.

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so we can all sleep easier tonight. the death toll continues to rise after a powerful tsunami struck indonesia saturday evening. indonesia's disaster relief agency said 429 people are dead and 1400 injured. there are more than 100 mission. amy kellogg is live in italy with the very latest. amy? >> reporter: the stories coming out of survivors are just frightening. you hear them talking about trying to outrun the tsunami by getting in their cars and driving off, only to have the big wave crash through the windows of their cars and practically drown them while they are trying to get away, submerging them. it's a miracle that some of these people escaped. these stories are the stuff of nightmares. now, the tsunami happened in a

disaster prone part of the world. the fact that this tsunami came with no warning whatsoever is what made it particularly horrifying. 16,000 people have been left homeless on top of the 420 plus dead and 100 plus missing. there are concerns about getting clean water and provisions to those living in shelters. there's widespread here that there could be another tsunami and there have been a couple terrifying false alarms today when the tides went up. all it took was someone to yell tsunami to send people running panicked through the streets. those who could tried to get back to business selling fish or whatever they had asraeuable. you can see many fishermen lost their livelihood. their boats have been destroyed. christmas was no celebration in church today, but full of grieving and prayers for the victims and their terror aoeued surviving loved ones. it is debatable, blake, to what extent the existing tsunami

warning system is functional in indonesia. this is a different scenario than the one that they have been preparing for because it was caused by this under water land slide. even if their current system was in good functioning order it might not work through this volcano, this close to shore. there really isn't a plan in place for detecting the effects of an under water land slide when then, of course, displaces water and forces it back up creating an enormous wave like this. after that tsunami in 2004 in asia that killed 230,000 people, you would think at this point they would be a little better prepared for such natural disasters, blake. >> the images just horrifying. amy kellogg live in milan. thanks. the dow dropping 650 points yesterday. the worst showing ever on christmas eve. this continues a downward trend

lasting months. president trump said he still has confidence in the economy. >> the fact is that the economy is doing so well that they raise interest rates. that's in the form of safety. i have great confidence in companies. we have companies the greatest in the world. >> joel griffith research fellow for financial regulations joins us on what is anything but a quiet christmas week, as we've seen this downward trend happen. what is driving the overall slowdown? >> there's quite a bit, few factors that have driven the slowdown. this has been the worst december so far since the great depression for the stock market. i think there's a lot of things coming into play. the got shutdown, that's a relatively minor factor. there is a growing concern over the tariffs we've seen placed on china and numerous allies. there's a growing concern that

there's a possibility of a bit of a lowdown here. of course, globally, we've been outperforming. globally that's a concern as well, and we're affected by that. >> lot of challenges in china and japan. the president talked a lot about the market early in the year. now he's been hammering the fed. i just lost it. he said, they're raising interest rates, essentially. how much of a factor does that play into this? >> i think that's a bit of noise when it comes to the interest rate hikes. there's disagreement with good economists regarding how quickly these rates should be implemented. the focus should be longer term on how do we reform the fed, to make sure we don't engage in the type of experimentation we've seen. what happened coming out of the great recession with the fed pumping trillions of dollars into just a few sectors of the economy. basically a relatively small number and buying up trillions

of dollars in government bonds. that really destroyed our economic system. this is not all president trump's fault. the bubbles that the federal reserve has helped to reinflate with the housing market and also subsidizing government spending. that started long before president trump's tenure. we have to recognize this is a problem and we need to resolve it in the future. >> what about the trade war aspect in all of this? especially looking at china in particular. now they've made this deal regarding american cars. so is that working out at all? does this have anything to do as far as this economic slowdown is concerned? >> i believe a lot of uncertainty is related to the threat of tariffs. if we end up with an agreement, that would be a huge economic

win. as of right now, we do not have that certainty. we don't just not have that certainty on nafta either. >> what about just the big knew out of washington. we've got this shutdown. does that have any impact on the overall economy? >> that has a relatively minor impact on the economy longer term. fact of the matter is upwards of 80% of the government operations will be funded throughout the shutdown. essential services are open. all the entitlement programs are still in place. speaks to some of the infighting we've seen in washington. that i don't believe is going to have a serious negative economic consequences. >> is that just a factor of how our society is set up? sort of that buffer? >> there is that buffer. the fact that so much is on auto pilot.

at some point the market will be factoring that in. that has to be addressed. every dollar that it's taking to fund the government through taxes or debt is a dollar that's either not in the pockets of consumers or not able to invest in enterprise. >> when you talk about dollars being available, one of the things that we talk about are calls to the banks and what that could mean and what effect that's having. your thoughts on that? >> i was surprised, as were other, to see that press release. that was on sunday night. i saw that. that was a bit of a surprise. >> the fact is everything that we've seen, data, suggests the banks are well capitalized. that's positive news. what was disconcerting was the

announcement went out on a weekend, particularly after we suffered one of the worst routs in recent memory. >> do you think the idea was to say, we have money and they were trying to find way to say it but it had the question where people were wondering what was going on? >> the intentions are good, without a doubt. i don't know if they have the desired consequence. >> what do you think will happen on wednesday when things kick back into action? what are we going to see wednesday, thursday, friday? >> market forecastation, that's a risky business. there is some economic uncertainty and we have concerns over trade. if you look at pe ratio, there are some stocks that are beginning to look like bargains. we've had the tech sector that's gone. the small cap index was down 27%. if you look at the trailing, you're at 18 now. that is the lowest ratio heading

into the year than we've seen. there may be bargains to be had. >> as you mentioned, i want to go back to something the president said. he talked about confidence in our companies. is that where we have some stability? >> i think longer term there's going to be more stability than we've had. the tax cuts, the fact that it was a tax cut, that's the positive. this was structural tax reform, that's an even bigger problem. we're beginning to see some of the confidence in the fact that companies are bringing home some of the overseas earning. that's going to build into the coming years. there's confidence that the current administration is putting a pause on some negative regulation just taking a more cautious approach. this is a more business friendly environment. i think that we'll be positive in the coming year. >> you talked about the tax reform. here we are a year out. your thought?

>> there are two major components. we have the shorter term impact. we saw the russian consumer spending. that was there. depending on your income bracket, we saw between a 1%, 4% increase in after tax pay. that's wonderful. the far more important part of the tax package are what it puts in place for businesses to invest and investors to derive those fund. that's going to be a longer term economic gain. it's not going to be to the tune of 2%, 3% extra growth each year. long term estimates are that it's an extra 0.3%, 0.5%. that's a positive impact. that's snow balled over the years. businesses have just a lot more confidence going forward in the permanentsy of that structure. >> we are hoping for all good things in 2019. thank you very much for joining us. we appreciate it. >> thank you for having us.

check this one out from amazon. amazon now trying to come out ahead of an escalating feud with president trump and the u.s. postal service with new cyber tech innovations to lower its dependency on delivery companies. coming in the face of rising postal service package rates. jillian turner is live with this one. hi, jillian. >> good afternoon. that's right. president trump has, as you know, been publicly feuding with amazon for months now. tech insiders tell fox news, amazon's been quietly developing a plan though to fight back. the company all prepping for what they think will be a major es ka laying in the fight that pits amazon on one side against president trump and the u.s. postal service on the other. now, the worst case scenario for amazon, a price hike for packages, something the usps could do if it chose to terminate its megadeal with amazon. the president believes if usps were to price packages

appropriately, amazon would lose its competitive edge. >> post office is losing billions of dollars and the taxpayers are paying because it delivers packages for amazon at a very below cost. that's not fair to the united states. it's not fair to our taxpayers. >> according to tech insider, amazon is developing alternative to package delivery so that in the future they can be less dependent. they're laser focused on cyber technology, specifically digital drones and self-driving vehicle. they're also looking at large scale driver contracts to replace postal workers as well as new truck leasing schemes. asked about amazon's deal with usps just last month, president trump said, i think they're getting the bargain of the century. that's why i have asked for a review of amazon's impact on the u.s. postal system. that review is in full swing. post master general is warning that change is coming r writing

in a statement, reforms are necessary to help the u.s. post at service compete for tphbgtively. the postal service will remain focused on aggressively managing our business. this christmas season, 2.5 billion packages will be shipped, a new world record. blake, 62% of all amazon packages shipped this holiday season will be shipped by the u.s. postal service. >> about half of those 2.5 billion to my house. gillian turner, thank you. merry christmas. allegations of sexual misconduct dominating this year's scandal beginning with harvey weinstein and the world watched as prince harry and american actress megan markle tied the knot. we take a look back at the biggest scandals of 2018. >> reporter: royal drama as the u.k. prepped for the wedding between prince harry and

american actress meghan markle, her family was stirring up drama from across the pond. news broke the bride's father staged paparazzi photos. after some back and forth drama, thomas markle announced he would not be attending. mashle's half sister continued to bad mouth the now duchess of sussex and says she plans to release a tell all book. 2016 brought a whirl wind romance for ariana grande. the pair flaunted a romance over the next few months but by october, the engagement was off and the singer returned her nearly $100,000 engagement ring to the snl star. and the kardashians certainly gave us a lot to keep up with in 2018 grabbing the spotlight, khloe giving birth to her new baby girl. but her boyfriend stole the headlines when new proof was

released that the nba player cheated on khloe just days before she gave birth. things still remain complicated for the pair. 2018 wasn't too kind to roseanne barr after she went on a racist twitter rant. she called valerie jarrod a product of muslim brotherhood and planet of the apes. abc cancelled the popular show. the show was brought back after killing off her character. former hollywood heavy weigh harvey weinstein surrendering to authorities facing rape and assault charges. this coming after dozens of women accused him of second wall harassment, destroying his career and launching the me too movement. weinstein denied wrongdoing. one of his accusers, an italian actress, was hit with sexual assault allegations of her own. jimmy bennett claims the actor

assaulted him and paid a $380,000 to keep quiet. disgraced comedian bill cosby is now behind bars. a jury found the 81-year-old guilty of drugging and sexually assaulting andrea constand in 2004. he was sentenced to three to ten years in a state prison and is registered as a sex offender for life. colin kaepernick decided to just do it when he came to teaming up with nike, the athletic brand making headlines with their ad featuring him with the caption reading, believe in something, even if it means sacrificing everything. kaepernick sparking a trend nationwide after he began kneeling during the national anthem and nfl games. kanye west came under fire after calling slavery a choice. a tmz employee confronted him. west later tweeting my point is, for us to have stayed in that position even though the numbers were on our side means that we

were mentally enslaved. with some of these scandals bound to spill over, we will cover it all. in new york, ainsley air hart, fox news. u.s. chamber of commerce taking aim at environmental activists in a scathing new report. how much energy leaders say protesters are costing the u.s. economy and how activists are responding. plus president trump and congressional democrats standing their ground when it comes to border security funding. what the president says this christmas day is the real reason behind objections from critics. >> it will never pass the senate. not today, not next week, not next year. so, mr. president, president trump, if you want to open the government, you must abandon the wall.

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>> every one of those democrats approved the wall, border tpepb or very very substantial barriers. every single one. the only time they went against it, the only time they went against it, there was only one time, when donald trump said we want to build the wall. soon as i said i want to build the wall, they were all against it. >> president trump accusing democrat, as you heard there, of border wall hypocrisy as the government shutdown enters its fourth day over an impass over

border wall funding. thank you for joining us. >> happy to be here. >> merry christmas, blake. and doug. >> absolutely. doug, let's start with you. you heard what the president just said. is he wrong? >> he's not wrong, but he's missing part of the story, which was in 2013 there was a comprehensive immigration reform bill that would have provided a path way to citizenship for the 11 million or so illegal immigrants presumably address the issue of the dreamers and provided i think $46 billion for border security. look, we could get into nuance offense, versus wall. the larger point, one on christmas day that hopefully nan would agree with, is that comprehensive immigration reform

is the way to go to deal with the problem in a broad scale way rather than fighting over a wall or fighting over the dreamers. trying to do something come pro hen seufrb and good that shows the best of what we, the american people, want. >> you know this and nan, correct me if i'm wrong, this didn't happen under president obama. it probably won't happen under president trump. who ever the next president is, in two or six years, it's probably not gonna speaking either, speaking about comprehensive immigration reform. >> blake, that's a great point. i agree with doug. do you know who else agrees with doug? president trump. president trump did support a comprehensive plan that included elements that as democrats supported including path way to legality for daca recipients. congress could not pass it. part of that was because the senate had a 60 vote minimum. it was senate democrats who were a big road block along with some

on the far right in the house of representatives. but the president's point about the mystifying failure of democrats in the senate today to support what they voted for just a couple of years ago. doug knows this. they voted for $46 billion in one package, but $8 billion was for the wall. physical barriers. today they're saying no. they're saying no to even $5 billion. unfortunately we have to reach the conclusion that it is political. they want to deny that to president trump. and that's just wrong. that's not the way to do this. >> what's the way out of it at this point? you got the white house at $5 billion number potentially. democrats at 1.3 or 1.6 but none for the wall. there was an offer in the middle. what's the way out of it? >> i think the way out is what's gonna be done before president trump said he was gonna veto the continuing resolution.

i think you do a continuing resolution. you get into the new congress. then you work on the issue rather that under a shut down under a more expansive timetable. i would add the 2016 legislation was under president obama, who said when it was passed we all had to compromise. i hope we can move back to that spirit. i hope that people of goodwill like congress woman hey worth will see the light and see the way to try to be inclusive rather than blame people. >> i would love to let you respond but we've gotta run and have to leave it there. both of you, thank you very much for joining us. >> merry christmas. environmental act activists saying leave fuel in the tkpwroupb but at what cost to the economy? and it really shows. with all that usaa offers why go with anybody else? we know their rates are good, we know that they're always going to take care of us.

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>> welcome back. efforts to keep fossil fuels in the ground as the central focus of a new report highlighting what it says is a negative impact on the u.s. economy. william la jeunesse is live in los angeles with the story. speak up late, they keep it in the ground activists argue that climate change is a real and present threat that changes to global warming and the only way to stop it is stop burning all fossil fuels, but rather than find every well, they target the choke points, pipelines and points. if they can stop it from reaching markets and companies have no choice but to cut production effectively keeping it in the ground. >> the goal of the ground comic movement is to do just that, keep fossil fuels in the ground so that we don't burn so much that we exceed the amount that

will lead to a climate catastrophe. so is it working? the movement cost the economy 91 billion, 21 billion in lost tax revenue and half a million jobs. 15 major projects they examined including export terminals on the west coast, killed or delayed or through lawsuits, blackball campaigns and regulations and legislations. >> they are contorting finding laws and that was not the intent of the environmental movement of the 1970s nor the 1990s. >> so yes, the movement has stopped progress, yet domestic exports are booming and prices are low which means users are not choosing clean fuels which means activists have doubled down on the "kill it in the cradle" mentality which the industry says is not realistic

for consumers. >> president trump of the christmas day message about the partial government shutdown. how far he is willing to to go. and to get funding for the border wall, next. ♪ blood sugar for 24 hours for powerful a1c reduction. tresiba® is a long-acting insulin used to control high blood sugar in adults with diabetes. don't use tresiba® to treat diabetic ketoacidosis, during episodes of low blood sugar, or if you are allergic to any of its ingredients. don't share needles or insulin pens. don't reuse needles. the most common side effect is low blood sugar, which may cause dizziness, sweating, confusion, and headache. check your blood sugar. low blood sugar can be serious and may be life-threatening. injection site reactions may occur. tell your prescriber about all medicines you take and all your medical conditions. taking tzds with insulins like tresiba® may cause serious side effects like heart failure. your insulin dose shouldn't be changed without asking your prescriber. get medical help right away if you have trouble breathing,

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congressional democrats to dig in their heels over funding of the border wall. hello everyone, and merry christmas. >> it's day four of the shutdown, and our number three for us but it's great to be here with you on this christmas day. the president weighing in from the oval office saying the government won't wear open until he gets the money for a border barrier. >> president trump: i can tell you it won't be open until they have a wall of defense. it's opening into our country from drugs. >> and we washed smelly merry christmas to our own ellison barber who's been live at the white house. president trump mention awarding a contract for 115 miles of border wall in texas. when is it going to be built? >> there is still a lot of unanswered questions when it

comes to this particular contract. he tweeted about it yesterday saying he had just given it out in the oval office, but what we don't know at this point is when it will be built, exactly where it will be built or exactly where the money is coming from. the white house is not providing any details from what we have heard from the president himself. and here's what he had to say this morning. speak to the new piece, the new section is very exciting, and you will see it because in january, we are almost having a ground breaking it such a big section. it's probably the biggest section we will get out. so while we are fighting over funding, we are also building and it's my hope to have this completed, all 500, >> 52% of american workers said they would oppose using the government.

that according to a quinnipiac poll conducted earlier this month. republicans however in the same pole said they supported shutting down the government over the wall, 59%-33. this is what the american people want, and and they say they understand the importance of border security. >> border patrols that a child has died in their custody overnight, is an investigation underway? >> they say it will be reviewed but by and by an officer, cause of death is not yet known, according to the agency. of border patrol says the 8-year-old was in their custody on christmas eve when i go as a border patrol agent noticed the child was showing signs of his

potential illness. staff diagnose the boy with a common cold in the afternoon. they say the child was released with prescriptions for amoxicillin and ibuprofen. in the evening, officials say the little boy was nauseous and vomiting so they just sent him back to the hospital for more potential treatment and evaluation and he died there shortly after midnight on christmas day. the department of homeland security's office of the inspector general was reportedly notified. cbp says they have also made the required congressional notification. one of the democrats on the household security, congressman lou korea is tweeting about this. he tweeted that the secretary of homeland security kirstjen nielsen, asking her what was going on at dhs. does homeland security have to start subpoenaing you to get the truth? there were lots of questions

about the little girl who died earlier this month, and democrats some so far will havs about how and why this little boy passed away in the custody of u.s. border patrol. >> let's bring it now our political panel. ash wright is a strategist and former political director of the texas g.o.p. and jason nichols is a democratic strategist and professor of african-american studies at the university of maryland. merry christmas to both of you. so asher, i will start with you. the president has clearly dug in on this, he wants the money for the wall or fence or whatever he wants to label it at this point. but at what point does the leader or the federal government need to say, let's move on? >> i think he has a lot of time to do it, i think he knows the democrats are taking over

congress on january 3rd. they need to come into the congress with the fresh face and once they go into office, they can allow the senate to send the house democrats which will be forced to compromise with him in order to open the government. the president and this is doing a great job and selling this as a border security issue. democrats want to sell this as an immigration issue to the american people, and he's making those points and doing it well. >> art democrats getting what they want in the sense that he wants billions for the wall and at this point they are holding your ground to make sure he doesn't get it? >> it was eight months ago, when there was a deal on the table

for -- he is sending mixed messages and at one point he said we are building something and then one minute it's a wall and next minute it is a fence. he is i think in disarray right now, i don't think he knows exactly what he is asking for or what his goals are. and he's not going to get the money, that's pretty much the point. they are certainly not going to give it to him. this is a campaign issue for hi him, he has already said he wants to benefit by the time the 202020 election rolls around. so that's not about his goals, that's about getting elected in 2,020. >> we heard over and over, build that wall. we didn't hear build that

barrier or build that steel slat. does it worry you that the message might be changing coming out of the west wing? >> we can play games with words and i think as trump said today, you can call it whatever you want. but that's what he needs to do. i think my counterpart is correct, this is a 2,020 issue for the president and he's trying to stave off any serious challengers. right now there aren't any. but we also have to realize that this is a political issue for the democrats. they were for a border wall three years ago, but the majority of their leadership and the party was for the leader. they are facing a much tougher primary season. >> democrats used to be for funding the wall or something along those lines. >> we talk about the government shutdown and the president has absolutely owned this himself. he said this was his shutdown.

i think the democrats are absolutely about border security, no question about it. there are many other ways that we can get good border security without a wasteful wall or spending $20 billion or $150 billion every following year in order to maintain the wall. democrats are about scanners which will cost us $300 million and help us with human trafficking and a lot of the issues that president has raise raised. experts have said that drones have ways of getting drugs into the country. i think border patrol is doing a relatively good job at stopping undocumented immigration and they need the new support through scanners and other security measures. >> the president is on the right

side of this issue. there was a rasmussen poll that came out on friday that said one in every five americans are willing to take money out of their own personal pocket to contribute toward the funding of the wall. and i think, as a political consultant from a border state, it is working and i think my opponent tried. the true american heroes are doing the job. they are fighting and effort that is almost unwinnable, and president trump knows that giving them the law is the right thing to do in order to assist their issues. >> well, at the end of the days still, 800,000 federal employees who are waiting when their next paycheck might come and, in the meantime, merry christmas to both of you. thank you both for coming in, we appreciate it. >> a federal judge in washington

ordering north korean leader kim jong un's regime to pay more than half a million dollars to the family of otto warmbier. rich is live in washington with more. >> a federal judge says otto warmbier travel to north korea a healthy smart student with people skills. when he returned he was blind, deaf and brain-dead. chief judge beryl a howell writes "north korea more likely than not tortured him to extract a false confession and then in a proceeding characterized by north korea as a trial used his lengthy sentence as leverage to further north korea's own foreign policy objectives. he traveled in january 2016 to pyongyang as part of a tour group and it north korean authorities arrested him as he was leaving the country claiming

he stole a propaganda poster. a year and a half later officials learned he was in a coma, demanded his release, and he returned to the united states and died days later. it's unclear if they will be paid as the u.s. has no official diplomatic relationship. >> yesterday president trump tweeted a photo of the meeting in the oval office with his north korea team. the administration was there and he says there is no date or location for a possible second summit between the two. he himself has had difficulty meeting with his north korean counterparts. earlier this month, he wrote that pyongyang refused to

dismantle its weapons. that also pushed them. american officials are also waiting on kim jong un's new year's day address at where north korea stands on the process. >> here at home the pope delivered his christmas message on this date urging solutions towards syria, yemen and around the globe. trey yanks his life this evening and he is in jerusalem. >> from vatican city to bethlehem and thousands of cities in between, people kicked off christmas with religious traditions and celebrations, just on the road from here in the ancient city of bethlehem. christmas eve they gathered to

watch. with representatives of the vatican and attendance, marching bands and boy scouts paraded from jerusalem to bethlehem. the traditional midnight mass was held at the basilica of the nativity and that was attended by the president. >> and what about vatican city? >> and vatican city on christmas eve monday night, the pope holding his sixth midnight mass since becoming pope. additionally he was focusing those remarks on western consumerism asking churchgoers how many of the material goods they buy or actually needed. during those remarks, he hoped that christmas would allow israelis and palestinians to resume dialogue and work towards peace. and 40 people did lose their

lives and an attack on a government building. >> trey, thank you. >> we will have much more on president trump's remarks in the oval office including the president accusing them of just what they accuse him of doing. lowered their blood sugar and reached an a1c of less than seven and maintained it. oh! under seven? (vo) and you may lose weight. in the same one-year study, adults lost on average up to 12 pounds. oh! up to 12 pounds? (vo) a two-year study showed that ozempic® does not increase the risk of major cardiovascular events like heart attack, stroke, or death. oh! no increased risk? ♪ ozempic®! ♪ ozempic® should not be the first medicine for treating diabetes, or for people with type 1 diabetes or diabetic ketoacidosis.

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>> president trump speaking out and the president taking questions from reporters about the government shutdown and border security then launching into a defense of his decision to fire fbi director james comey last year. take a lesson. >> president trump: everybody hated comey, they thought he did a horrible job. democrats hated him and they were calling for his firing, including schumer. >> let's bring back our political panel. thanks for joining us here today on this beautiful christmas day. kicking things off, this wasn't prompted by the media so much,

the president was hitting on a lot of things, particularly the border funding issue. but, he sort of brought this up. why do you think that is right now? ash, we will start with you. >> i think frankly he brought it up because it speaks to that same point that we just discussed, and the previous segment about the border wall which was democrats tend to think one way and, that changes a little bit of the conversation. i think comey is a win for the president, and if he is the former fbi boss. that's where the president is and it was an interesting play there by the president. it speaks to the overarching problem which is, it's just

about being against trump and not really about anything else from the left. >> bringing you in, we have this whole year that to look back on and your thoughts on the president's decision and the way it's played out politically? >> you know, comey was unpopular, there's no question about it from the left and the right. it's not about james comey, and the stellar job that james comey has done. it was more about the fact that, he demanded loyalty. james comey and any other director of the fbi should be loyal to the united states of america, not to anyone individual or anyone individual's agenda, and i think that's what people are upset about. so the idea that people are flip-flopping in their opinion on the comey firing is not

exactly accurate. it's more adding the context for the idea that he was fired for not being loyal to donald trump. >> comey was called before the house judiciary oversight committee, and he also made statements in the hallway. he defended the fbi and also hit back against the g.o.p. listen. >> people who know better, including republican members of this body have tried to speak up and speak the truth. there is a truth and they are not telling it. >> calmly knows what he did, an and, we now know, as time plays

out, it's played out as details details -- the flynn interview for which he didn't follow proper procedures and, if this had been any other administration, we would have handled this differently. it seems like every time we hear his name there is something additional coming out. it's one thing after another, and it's far less about loyalty and more about serving or doing our job on behalf of the american people. >> i want to bring you in. we see the evolution of james comey in the public eye, do the

american people trust him? >> i think right now we are at a time in american history where it's kind of turning in every direction wondering who to trus trust. and we are not sure that we can trust the president of the united states which is really a sad time. there was a time of courseware if the president was untruthful like in the 70s, we took measures to change that administration. we really don't have any evidence of him being untruthful, and as a matter of fact, and being called before congress, there were times where they were asking him about hillary clinton's emails. so really we are kind of harassing james comey, and i think he enjoys the attention but there's all this attention on james comey.

what he's saying is that we need to respect the rule of law, and the president also is the leader of our nation is to respectable of law and that's something he seems to have an issue with. >> and there were republicans who called out call comey on his comments, and that effort was stopped before the primaries. thank you both for joining us. thanks for weighing in on this issue and i want to wish you a merry christmas. >> merry christmas to you both. >> as we look ahead to 2019, he promises to be an interesting year in politics with democrats taking control of the house. in the next presidential campaign season believe it or not is already on the horizon. if 2018 is any occasion, we may need to buckle our seat belts. lauren blanchard takes a look back at the year in politics. >> president trump second year in office. >> president trump: we enacted the tax cuts.

>> kicked off with fire and fury. >> i think furious, disgusted would certainly probably fit. >> the beginning of a tumultuous year to come. >> the government shutdown was 100% avoidable. >> disputes over immigration policy. >> he has divided americans. >> followed by a national debate over gun control. >> if you listen really close, you can hear the people in power shaking. >> secretary of state rex tillerson fired by trump as others in the white house and congress stepped down. >> every good fighter knows when to hang up the gloves and for me that time is soon approaching. >> facebook's founder apologized to congress. and the senate voted to approve net neutrality. >> this is the constitution of the internet. on the international front, the president announced chinese

tariffs and travel to singapore to meet with kim jong un. >> president trump: we are prepared to start a new history and we are ready to write a new chapter between our nations. >> the supreme court approved the president's travel ban. >> president trump: at a minimum we have to make sure that we that people coming into the country. >> and justice anthony kennedy announced his retirement. >> president trump: tonight it is my honor and privilege to announce that i will nominate judge brett kavanaugh to the united states supreme court. >> it was marred by controversy. >> with what degree of certainty do you believe brett kavanaugh assaulted you? >> 100%. >> my family and my name have been totally and permanently destroyed by vicious and false additional accusations. >> in the end, the president's picked became the newest justice on the u.s. supreme court. >> mr. president, thank you for the great honor.

>> the special counsel's investigation in its second year continued the probe into russian election interference. >> they use a scheme known as spearfishing. >> president trump travel to helsinki, finland, to meet with his russian counterparts. >> president trump: dan coats came to me and some others and said they think it's russia. he said it's not russia. the nation said goodbye to long-time senator john mccain. >> america was always great. >> the result was split control of house and senate. >> the president's feud with the

media reached a boiling point. >> president trump: cnn should be ashamed of itself having you working for them. >> then came the moment of unity as a nation said fire well to its 41st president. >> sold through our peers, let us know the blessings of knowing and loving you, for a great and noble man. the best father a son or daughter could have. >> still, the year ended much as it began. >> perhaps a preview of the new year to come, as the new congress in new congressional leaders get ready to start their term. in washington, lauren blanchard, fox news. >> a massive tsunami without warning, leaving hundreds without hope in indonesia. how they are coping. it was an instant savings and i should have changed a long time ago. it was funny because when we would call another insurance company,

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>> the death toll from saturday night tsunami now tops 420 people. heavy rains and blocked roads are hampering the search efforts as residents fear another tsunami could come without warning. amy kellogg has more with the latest. >> over 400 people dead and over 100 missing. 16,000 homeless, and people are simply devastated and very scared that there could be another tsunami as of arconic

activity that led to the first one continues, and between the islands of java and sumatra in indonesia. there was panic as opposed false alarm went off today but people were trying to salvage some goods to make a little money and markets even though most residents are in shelters now. there is worry of disease spreading given the conditions that you see and having enough medical supplies to keep them from getting sick. the pastor of one pentecostal church said that our celebration today is full of grief. of course, as christians everywhere do at christmas time, they tend to be joyous and grateful, and today obviously, molly, it was just a theory of prayers for the victims and the survivors. >> and there was so little warning for people to reach high ground, right? >> that was really one of the most dramatic parts of this

because this is a very disaster prone part of the world. there are fault lines and volcanoes, but particularly, molly, after that devastating tsunami in asia in 2004 that killed 230,000 people, there are lots of concerns and questions about why a better warning system was not put in place. some say it's because most tsunamis are set off by earthquakes and in this case there wasn't one that, others suggest that vandalism and theft have led to some equipment, these buoys that are out there to detect oceanic activity. the bottom line is, there is less than half an hour between the volcanic activity that have been going on for days, residents relaxed and many were sleeping with the wave hit. what scientists think happened was when the volcano erupted,

all sorts of debris went into the water and that was something that people weren't expecting might have been 400 people dead and many still missing. >> thank you so much. >> the actor kevin spacey as he re-prepares for his arraignmentt on a felony sex assault charge in massachusetts. have you seen this? he has since posted a video online that many people are calling straight bizarre. he is accused keep in mind of groping an 18-year-old at the time in a nantucket bar. in the video he released yesterday, he channels his frank underwood character from "house of cards." watch here.

>> i know what you want. you trusted me, even though you knew you shouldn't. so we are not done, no matter what anyone says. and besides, i know what you want. you want me back. >> joining us now romano, a founder and managing partner at romano law. thanks for joining us. >> thank you. >> i don't even know where to start with this one to be honest. you have to keep in mind that kevin spacey is facing a very serious charge, and assault and battery after a mother came forward and said that her 18-year-old son was essentially groped. we seen this video and we don't know that it's a direct correlation to that, although it dropped on the same day as the charge. i want you to hear from the mother and what she has had to say. >> spacey stuck his hand inside

of my sons pants and grabbed his genitals. nothing could have prepared my son for how that sexual assault would make him feel as a man. >> as it relates to this case right here, what kind of trouble could kevin spacey be facing especially now that the courts will be involved? >> it's a startling response and it's not just of this allegation or discharge, he's been under investigation in multiple jurisdictions both in the u.s. and the u.k. this is the worst attempt at character rehabilitation that i think i have ever seen. exploring a bad southern accent, think foghorn leghorn's evil twin. that's right up there with o.j. writing "if i did it." i can't imagine any p.r. agent or defense lawyer advising them to do anything like this. no good could come out of this for kevin spacey.

he's digging himself deeper into a hole and he's not winning any friends and not persuading anybody and i could imagine his entire legal team's face plumbing this morning. i mean, merry christmas netflix executives, the grinch has reappeared. >> for those who haven't seen "house of cards" kevin spacey's character got away with a lot throughout the years of the show. he has since posted this video yesterday and character and i want to play one specific part of that. >> if i didn't pay the price for the things we both know i didn't do, i'm certainly not going to pay the price for the things i didn't do. of course they will say i'm not being disrespectful, playing by the rules, like i played by anyone's rules before, i never did. and you loved it. >> , what do you make of it? because he is and character there.

>> boasting about not playing by the rules in character or not, what could he possibly be thinking? what good could come out of this? it's almost like battered spouse syndrome, who is he appealing to, what's the base? what is the motive? i'm baffled. >> can police use this at all? >> that's a great question. it certainly -- he's doing it in character, presumably artistic freedom. but if you are in kevin spacey, in a situation like this you lie low and to stay quiet and let your legal defense team do its work. you don't post a video like this. >> do you think, speaking of defense team, would anyone on his team, whoever is involved in his orbit, to about this? >> i can't imagine that anyone sanctioned this or encourage this. from a rational distance.

what could possibly be the motive here? what's to gain? not much. >> romano, there are a host of questions with this. he posted it on twitter, he's been silent on twitter for about 14 months, and then comes this. we could talk about this for hours but we will leave it there. there, thanks. >> the incoming chair of the house intelligence committee says he will subpoena -- the political stakes, next. ♪ something completely new. capital one cafes. inviting places with people here to help you, not sell you. and savings and checking accounts with no fees or minimums. because that's how it should be. you can open one from right here or anywhere in 5 minutes. seriously, 5 minutes... this is banking reimagined.

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♪ 2018 was a year for the record books as we saw major action on immigration, a diplomatic realignment, a contentious supreme court nomination and even a royal wedding. fox news chief anchor shepard smith takes a look back on the events that shaped the last 12 months. >> 2018 brought an election that shook up d.c., major action on immigration and a showdown over a supreme court nominee. those stories and more dominating the headlines in 2018. the year kicked off with a big mistake in hawaii. an emergency alert system falsely warned of an incoming missile from north korea. the incident led for calls to changes in the alert system. lawmakers in washington started

their year with the partial government shutdown. it lasted three days before republicans and democrats cut the deal on spending and immigration. president trump got into a trade war with china after slapping new tariffs on some products. he said it was payback for unfair treatment. washington and beijing later agreed to temporary truce. and in parkland, florida, a gunman killed 17 high school students and staff. a few months later, a shooting at a high school in santa fe, texas, left ten dead. teachers in west virginia walked off the job to protest what they called a lack of resources and funding for public education. they got a pay raise and inspired protests in other states. the trump administration announced a new zero-tolerance policy that led to the separation of immigrant children from the parents at the border. the president later signed an executive order to end of the family separations. the fight against syria

intensified in 2018, a suspected chemical attack on civilians prompted a second round of u.s. missile strikes on syrian targets. north korean leader kim jong un met south korea's president in the dmz setting the stage for president trump's own summit with kim. the two leaders agreed to try to ease military tensions and work towards denuclearization. and america's data bill cosby was convicted of sexual assault and sentenced 3-10 years behind bars. president trump announced the u.s. withdraw from the landmark iran nuclear agreement and the feds re-impose sanctions against iran. while european leaders that they would work to save the deal. the president also recognized jerusalem as israel's capital and moved the u.s. embassy there. the u.k. celebrated a royal wedding. people around the world watched prince harry mary the american actress meghan markle.

the nfl announced a new policy for players who don't want to stand during the national anthem. letting them stay in their locker rooms to avoid having their entire teams find. but the players union protested and the league put the new policy on hold. our neighbors to the north made big news. canada became the second country to legalize recreational marijuana. uruguay was the first. supreme court justice anthony kennedy retired, and president trump nominated judge brett kavanaugh to replace him which lead to emotional hearings over decades old accusations of sexual assault. jugs judge kavanaugh denied the allegations. 12 boys were rescued from a cave in thailand, trapped by rushing waters. and the former trump campaign chair paul manafort was

convicted of tax and bank fraud. he also pled guilty to two counts of conspiracy. special counsel robert mueller later accused him of violating the plea deal by lying to investigators. america said goodbye to war hero, senator and former presidential nominee john mccain. the arizona republic and died of brain cancer at age 81. the senate voted unanimously to condemn saudi arabia saying the prince was responsible for the murder of "the washington post" columnist jamaal khashoggi. president trump said there was no direct evidence linking the prince to the killing but u.s. intelligence officials reportedly said he ordered it. the florida panhandle took a direct hit from hurricane michael, one of the strongest storms to ever hit the u.s. and part of the carolinas devastated by hurricane florence. in the deadliest anti-semitic attack took place at a synagogue in pittsburgh. the gunman opened fire during

saturday services, 11 people killed. thousands of central americans headed toward the united states in a caravan through mexico. president trump deployed the military to the southern border. this was a few weeks before midterm elections. in the midterms, a split decision. democrats won control of the house but republicans gained ground in the senate. the election season also saw another contentious recount in florida, following razor-thin wins by republicans in the senate and governors rates. the state eventually upheld both victories. in california, the so-called " "campfire" became the deadliest and most destructive fire in state history. it obliterated the town of paradise and killed more than 80 people. friends, family and colleagues gather to remember george herbert walker bush who died at age 94, months after his wife of 73 years, barbara. looking ahead to 2019, democrats

and republicans will share power in washington as the next presidential contest starts to take shape. of course, we will be here for it all. in new york, shepard smith, fox news. >> incoming house intelligence chairman adam schiff asserts his authority saying he will subpoena the final comey report on the russian investigation if president trump -- mueller if president trump tries to block its release. thank you for joining us on this christmas, and merry christmas to you. >> thank you, merry christmas to you. >> i want to start out taking a listen to adam schiff. here's what he had to say. >> i'm prepared to make sure we do everything possible so the public has the advantage of as much of the information as it can. >> that sounds like a "yes." >> that pretty much is from my point of view. >> i find this whole idea mind-blowing. are we the american public in danger of potentially not seeing

this report once it all finally comes to a conclusion? >> well, i think if the rhetoric is to be believed, there might be an attempt to block it by the trump administration. but as you heard from mueller's new wingmen in the house that the house will up the ante. they will use the subpoena power to make it public. >> does the president in some way have this power? >> well, he might try. at the end of the day and the democracy, people have a right to know about the conduct of their elected officials in the long investigation that their tax dollars will have paid for and the truth needs to come out. there is a premise that no one is above the law, not even the president of the united states. >> he did mention that if the report's release that could potentially be portions that were redacted. to me that wouldn't be as much of a surprise, do you think

that's a more likely scenario? >> at the end of the day i think that's exactly the likely scenario. if the worst premise proves to be true, that foreign power may have helped elect the president of the united states over many worthy and thoughtful opponents on both sides of the political aisle, then the public has a right to see the full report even if partially redacted for sensitivity purposes. >> it's not just the democrats that want to see this report released, it's republicans as well. senator john kennedy had this to say. >> i wish he would hurry. he needs to get to the bottom of this but do it quickly. i want him to report to the american people, give them the facts. the american people are smart enough to figure it out. >> is that kind of the basis of all of this? we the american people are seeing the mueller case play out, remarkably very few leaks out of the actual investigation of mueller and his team.

then we see the other leaks from other parts, the house judiciary and other things. we have some idea what might be going on but ultimately, do we the american people, would there be an uproar if we didn't get some of these answers? >> i think exactly, there would be. i think kennedy is right, but i don't think it should be rushed. i think mueller should continue to get to all the facts and all the witnesses possibly including people at the very top and issue a full and complete report. we have waited long enough, the report should be done not hastily but properly and i have confidence that it is being done properly. >> do you have any insight into when it could potentially be done? there are various theories that, this is it, this is a sign. do you think that signaling an end or -- nothing that we could read into?

>> i think we are getting warmer. first quarter 2019's probable arrival date. >> really, and why do you think that? >> i think we are starting to see the signs, its first quarter or end of march so we have a 90 day runway. but i think we will see it in the next 90 days or so. >> and what do you think -- what will be in that report? >> look, they have been very tight-lipped about the report, so i would only be speculating and i'd rather not. i think we will see a clearer picture. the clues have been trickling out the last few weeks especially this month and the month of december. my suspicion is, it won't be very favorable to the current administration. >> as he mentioned, we will see perhaps sooner rather than later. thank you very much, we appreciate it.

we will be right back

>> a new report from the u.s. chamber of commerce and trade unions finding that the green movement to keep fossil fuels on the ground they say is costing our economy billions of dollars and hundreds of thousands of jobs. william la jeunesse is in our west coast bureau. explain how this "keep it in the ground" movement is supposed to work. >> the argument is that climate change is here and the only way to stop it is to stop burning all fossil fuels, which means no new oil, coal or natural gas. the movement targets choke points, pipelines and

ports. if the product has nowhere to go than industry will stop production, effectively keeping oil, gas and coal in the ground. >> we are talking about companies that would take oil and gas off of public lands and basically take public resources and export them for profit that benefits the company's and the public. >> so the disconnect is, activists on a daily basis are depending on the very energy that they seek to deny anyone else. many environmentalists use to see you gas as clean bridge fuel but now they say global warming is so urgent that no one can use fossil fuels. >> and what do the industries say, william, and is the strategy working? >> the industry says, this is not pragmatic by any means and the environmental group seems to be winning the battle and losing the war.

keeping the ground movement has cost the economy 91 billion, 20 billion in lost tax revenue, half a million jobs by killing and postponing 15 major projects they examined including ports on the west coast and pipelines to the east, to protest legislation. >> we want cleaner air and water, and good use of the land. but shutting down energy production overall is not a solution for this economy or for the world. >> in that sense the market has spoken. can the planet be saved without ruining the economy? that's one question politically that you know more than most has not been solved. >> it's definitely not the north pole, so where are these surfing santas and why did they decide to ditch the sleigh? we have the low down on that, next. ♪ to lower my a1c.

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and then, more jobs robegan to appear.. what started with one job spread all around. because each job in energy creates many more in this town.

>> santa's trading has slight end for a surfboard and snow for the sun all for a good cause. this is cocoa beach yesterday, the annual surfing santa event. the event and a charity for cancer patients as well. organizers say they raised about $40,000 and it looks like they have great weather for us, too.

>> did santa hook your daughter up? >> absolutely, she was a good girl this year. >> merry christmas everyone and thanks for joining us. >> she is molly, i'm blake, we got to go. bye-bye. ♪ >> i'm trish regan in for neil cavuto, merry christmas, this is a special edition of "your world with neil cavuto." the economy is humming along. wages are rising, but the stock market is not quite as great. there's a lot of uncertainty right now over trade. and a lot of uncertainty regarding fed and the rate hikes, you have the mue