world. what has happened? >> pete: 2019 could be a better year for me. i challenge adam to a 2019 push-up contest in december. happy new year, everybody. >> happy 2019 frments --. house democrats will introduce bills to end the partial government shutdown but with no money for the president's wall. welcome to america's news headquarters, i'm molly line. >> new year, same problems. >> the same as they were just before the holidays. >> i'm leland viters. democratic leader nancy pelosi wants to reopen the government with no funding for the wall and offer senate republicans call a non-starter. kevin corke live at the white house. the president tweeting this morning seeming to think it is

a non-starter as well, right? >> no doubt. listen, this is a stalemate that the president is content to ride out unless he gets funding for the border wall and border security, he simply just will let this thing play out and see how much pressure he can apply on the democrats. let's go to twitter. the president is up and tweeting already in 2019. he said this. the democrats much as i suspected, have allocated no money for a new wall. so imaginetive. without a wall there can be no border security. our country must finally have a strong and secure southern border. yesterday the president was in the oval office working to find a way for the white house and lawmakers to ind the impasse. white house officials was working the phones as well. the shutdown affects real americans, many of whom are beginning to feel the pinch of not being paid for the time being. even though they will eventually get paid once the shutdown is over. that said the president is

standing firm and he wants the american people to know why. >> president trump: we need, however, borders. you don't have borders, you don't have a country. we don't want drug traffickers or human traffickers or illegal people with criminal records to come in. our border patrol, our ice agents, our military, we've done great but you can never do it perfectly unless you have a wall. so we have to have a wall as part of border security. and we're working on it. >> on capitol hill the democrats are set to take over the house later this week and they're already proposing funding to end the government shutdown. there is a bit of a caveat. it does not include, as you heard the president say, funding for a border wall. gop senate leadership are saying it's a non-starter. still here is what the democrats are expected to do. expected to unveil a continuing resolution that would fund the department of homeland security until february 8th. they're expected to pass six

remaining government spending bills again all that may be for naught if the senate is not on board. now, as you can imagine, we don't anticipate seeing the president later on today but you never know. he may decide to pop by. i'm extending an invitation is what i'm doing. if that happens we'll let you know my friend. happy new year, >> stand by if the president comes out we'll be coming back to you. good to see you, sir. >> congress was in session ever so briefly yesterday but made no effort to reopen the government. kicking the can to 2019 where we are. the 115th congress meets one last time tomorrow to adjourn and the new congress takes over and the battle over the border wall continues. we have a commentary writer for fox news. thank you for being with us. to kick things off, where will we be when the new congress returns and most likely nancy pelosi takes the helm?

>> nancy pelosi has made it very clear she is just playing politics here. she called trump's promise to physically secure a southern border immoral and she is not budging in terms of funding. >> i have a statement here, a joint statement from pelosi and schumer as well, senator schumer. they say if leader mcconnell and senate republicans refuse to support the first bill then they're complicit with president trump in continuing the trump shutdown and holding the health and safety of the american people and workers' paychecks hostage over the wall. that paragraph explains where they stand on this. that the democrats are trying to kick it to mcconnell and the republicans saying the responsibility is yours and the blame game continues. each side blaming the other for the shutdown over the issue of border security. will the democrats succeed as they take the majority in the house in keeping the republicans in a place where they are being looked at as the responsible party from the

american standpoint? >> they really could. polls show the majority -- pluralty of americans blame trump for the shut down and when he said he would own it. trump made a key campaign promise to the american people in promising the wall. so i think if trump is actually able to get a deal, if he is able to bring back some sort of gang of eight style legislation. 68 senators voted on in 2013 just five years ago, democrats including chuck schumer promised that they would add another 4.5 billion to border security and the number 700 miles of fencing along the southern border. if trump is able to also play politics and sort of shove that legislation back in their faces promising immediate amnesty for daca recipients, he could get something done because otherwise it's clear the democrats aren't going to budge. >> that's the sort of information republicans have made their mantra to say

democrats you supported this in the past. the difference now is the president is there in the oval office. the democrats -- the president has tweeted directly at the democrats and said talking recently here in a recent tweet they've all indicateed no money for the new wall. when it comes down to this central issue of the wall, the president has basically been very strong on this saying please explain to democrats there can never in capital letters be replacement for good old fashioned walls. how do you break that stalemate? >> so the wall has become something of a political roar schalk test for -- now democrats are calling it immoral. it goes to show how much trump has painted the conversation. but i think that if trump is insistent with the democrats that he will actually give them something that they wanted for a very long time, parts of the

dream act codified into law and he will sign that, i think it's very possible that he could -- if they don't take that agreement, he can just campaign on that in 2020 showing how much the democrats really care about the dreamers. >> that's a big question. it's funny we were asking this question a year ago, is this the trade that will happen? each side gets the really big thing that they want. do you think that's going to happen? it seems like both sides are so entrenched in their argument and now the democrats have made this issue a moral issue. >> i don't think it's terribly likely given the fact that both sides have something to gain in making it seem like the other side is not coming to the table. but it's what should happen. politics is about compromises and keeping promises. and trump promised a big, beautiful wall. >> there you go, exactly. in his more recent tweets he also threw up this idea of the steel slats.

we've also heard republicans speaking recently using the word physical barrier. in a sense there have been other words entering the semantics as this argument goes forward. is that the solution to kind of come to something where you don't use the four-letter word wall and come up with something else? >> again, this issue just became so emotionally charged. there is a valid case to be made that could those billions of dollars be better used on manning the border with more agents or is it most effective if you have a concrete wall or steel slats? all of these things are the minutia of trump's policies that have really become emotionally charged on both sides. now you have this conversation among the left should we even have a physical barrier at all because of the ethical implications of it? and trump's base has ardently fought for the fact that any physical barrier must be called the wall. and i think that at some point

whatever side wants to win is going to have to decouple the emotions of the argument and point out the pragmatics. >> final question here. any insight into how long the shutdown could last or the partial shutdown? >> so it really could go on for a while. i don't think that's incredibly likely. if nancy pelosi makes it clear she is not going to make a deal trump's best bet is showing off the political theater of it and showing that if he is willing to compromise and willing to give the democrats something that they've advocated for, for a long time in the form of daca amnesty, then democrats don't take that, that's something that he can campaign on and republicans can campaign on showing that democrats have only used the dreamers as a political token. but i think it seems unlikely it will go on for much longer given the unpopularity of a shutdown and don't look like either side is too willing to budge. >> thank you for joining us.

have a wonderful 2019. >> president trump is rethinking the timeline for withdrawing our troops from syria. new york sometimes reporting the commander-in-chief has agreed to give the military four months to bring home 2,000 servicemen and women stationed there. after sharp criticism following his sudden announcement of that pull-out. rich edson is live in washington lindsey graham had a little to do with it. >> a little weekend meeting between the two. president trump says he is slowly withdrawing u.s. forces from syria fulfilling a campaign promise to extract the military from what he calls endless wars. >> president trump: i never said i'll rush out. we'll get out. we're getting out of syria, bringing our young great troops home after so many years. we were supposed to be in syria for three to four months. that was four or five years ago. and it is time. we have to bring them home. >> his decision last month to withdraw u.s. forces from syria drew intense criticism from many in congress, especially

republicans. they claim the administration would leave syria to the remnants of isis, assad regime, russia, iran. critics say a u.s. withdrawal would expose kurdish forceers to an attack from turkey. the turkish government calls kurdish fighters terrorists. the kurds have been an ally to the u.s. after a meeting with the president at the white house this weekend graham said the u.s. withdrawal from syria is in a pause situation and felt better about the administration's plans. he tweeted the president will make sure any withdrawal from syria will be done in a fashion to insure one, isis is permanently destroyed, two, iran doesn't fill in the back end, three, our kurdish allies are protected. administration says it will continue coordinating with allies in the region. the national security council said john bolton will travel to israel and turkey for discussions about the u.s. withdrawal. chairman of the joint chiefs of staff general joseph dunford

and james jeffrey will also join bolton in turkey. >> rich, thank you. wall street had a very rough year. stocks rising in the final trading day of 2018 but not enough to offset all of that selling in december. 2019 new year begins tomorrow. joining us is gene marks. cpa and president of the marks group pc. it was described to me a couple of days ago as we watched the markets go on this wild trek before new year's that it was a zombie market. people were wildly trading and wandering around with new news. does that change with the new year as people have now sort of rebalanced everything out of the quarter? >> yeah, i think so. happy new year. it is good to see you. it is a -- i think we are loong at a change as we head into 2019. there were a lot of things

going on at the end of 2018 that were pushing the market in all sorts of different directions. there was a lot of computer trading. 85% of the trades that were going on over the last few weeks were triggered by algorithms and electronic applications. volume was lower and you had the rhetoric between the white house and the federal reserve. a lot of people were getting crazy about it. but i think in 2019 we'll look at a lot more stability. let's not forget the market lost 8% this year. we're still 30% up where we were from 2016. so the market is doing fine. let's not also forget the economy is doing fine right now. >> it is doing fine but doesn't seem to be doing great. goldman sachs lowered their outlook for next year saying it will be hard to get above 2% in the beginning of the year. last half of the year things could slow below that.

>> agree. so what i was saying we've been doing fine but the market itself is looking to the future. it is not looking at the past. you are absolutely right as we look into 2019, things are slowing down a little bit. global production is shown to be slowing. oil prices have fallen. i have gotten concerned about a retail sector particularly if there is no resolution between the u.s. and china in all these trade negotiations. there really are a lot of concerns that the market has going into 2019. we shouldn't discount that. at the same time, though, i don't think these are catastrophic things. i don't think these will lead to some large decrease or on coming bear market. a lot of experts would agree with me. i tell you one thing going on behind the scenes, too, is interest rates. think about it. right now interest rates are the highest they've been, the federal funds rate which is what the rate the fed lends money to the banks. the highest it's been in 10 years. think about it. you and me, all of our viewers,

what options do we have to invest five years ago or three years ago when interest rates were so low? short of putting it in the stock market you get a better return putting it under your mattress. now we have options. >> 5% dividend yield stock isn't as enticing as it used to be. we have a tendency to talk on holidays. you want to make a prediction when we speak this time next year? >> memorial day? i think 2019 we won't have a strong stock market but consistently growing. >> you won't nail down an over/under here? >> 5% growth in overall stocks. 5% is my number. let me leave you with this. if you're an individual investors it is still a really crazy place to be the markets right now. for goodness sake, have an expert you're working with,

invest in a mutual or index fund. not a great environment if you're an individual investors as we head into 2019. >> it seems as though being an individual investors is getting harder and harder. good to see you, happy new year to you and yours and we'll mark the tape on that 5%. >> i'll see you memorial day, right? >> we'll check in on the prediction then. good to see you my friend. >> a new year's nightmare in japan as a car crashes into a crowd in central tokyo, what police are saying about that incident. a lot of new laws take effect and some shine a light on the #metoo movement. dealing with psoriatic arthritis pain was so frustrating. my skin... it was embarrassing. my joints... they hurt. the pain and swelling. the tenderness. the psoriasis. tina: i had to find something that worked on all of this.

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>> leland: authorities in japan holding a man on suspicion of attempted murder after he intentionally plowed his car into pedestrians celebrating a new year. it happened in a tourist hot spot in central tokyo. nine people injured. one man critical condition. local media police discovered a large amount of kerosene in the car and on his clothes. he told police he did it to protest the death penalty. >> molly: a new year means new laws will go into effect across the country. state laws covering everything from the minimum wage to sexual harassment are on the books. starting today. we have more with more. mary anne, great to see you. >> happy new year, good to see you, too. here in california a ban on the use of non-disclosure agreements to settle cases of sexual harassment, sex assault or discrimination based on sex goes into effect this year.

those are thought to have long played a role in enabling serial abusers and silencing victims. supporters. #metoo movement like actresses say the law is an important first step. >> the past year has never been about a witch hunt. it has never been about one man or even hundreds of men. the past year has been about change. >> the minimum wage is increasing in 20 states even as the federal minimum has remained at $7.25 since 2009. also shopping online may cost you more in 2019. at least six states will require taxes on purchases from out of state retailers. also more laws set to take place to curb opioid addiction in new york by a give back law requiring companies to take back unused drugs. a lower threshold for drunk driving in utah. that state's blood alcohol

content limit dropping to .05%. another california law that requires pet stores to only sell pets that come from shelters or nonprofit rescues and speaking of pets, another california law making pets an official part of the family and subject to custody battles just like children. aren't our pets like our children, though, molly? >> molly: for some people they are. thank you so much, mary ann. >> leland: special counsel robert mueller's investigation making headlines in 2018. what can we expect from mr. mueller this year? plus the 2020 white house race starting to take shape. senator elizabeth warren taking the first official step toward a presidential run. who else will be announcing soon? does warren have a shot? our political panel on that when we come back. >> president trump: elizabeth warren will be the first. she did very badly in approving she was of indian heritage.

that didn't work out too well. you have more than she does and maybe i do too and i have nothing. we'll see how she does. i wish her well. i hope she does well. i would love to run against her. i'm ken jacobus and i switched to the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy. and last year, i earned $36,000 in cash back. which i used to offer health insurance to my employees. what's in your wallet?

>> we have to get out there and be clear about what we're fighting for and then we have to show we're willing to fight for it. it's not enough just to talk to talk. we actually have to be willing to get out and walk the walk. that means we've got to stand behind the kinds of changes that will matter in the lives of everyday people and when that means standing up to big drug companies, we won't do what this administration has done, that is said raise prices whenever you want. we'll say we're going to make real change. >> molly: that is senator elizabeth warren after announcing she is forming a 2020 exploratory committee. she is the most prominent democrat to take this first

official step toward a presidential run. others sure to follow. what will we see happening here now that it is early 2019? let's bring in our political panel. "washington examiner" staff writer doug schoen and former advisor to president clinton. thank you for being here. happy new year to you both. here we have senator warren throwing her hat in the ring. she gets that early buzz and start fundraising getting a little money. doug, start with you on the democratic side. what are her chances? is she the right person to face off against president trump on the campaign trail? >> the simple answer it's much too early to say. i think she has announced early because she has to win the invisible primary of fundraising where she will be competing against i think three or four other senators, particularly bernie sanders on the left progressive wing. but we could have 12, 15, 20

democratic candidates. there is great sentiment for new faces at the same time bernie and joe biden certainly not new faces are leading the pack. so it's a wide open race and elizabeth warren is trying to get a jump on the process as you suggested. >> molly: phillip, bringing you in here, elizabeth warren a good fit for a blue massachusetts. considered to be to the far left among democrats. your thoughts on her facing off against the president? >> to doug's point here we know this will be a crowded primary and what she is able to do is get a little bit of advantage by getting out there early and capturing the spotlight right now. unfortunately for elizabeth warren, i don't think there was anything necessarily too inspiring in that roll-out. and what we saw is yes, this is a serious senator with serious policy ideas. as far as the personality is concerned elizabeth warren is not as charismatic as beto

o'rourke. she will need the buzz early if she wants to get to the top she needs to stand out early. initial showing seems to be lackluster. >> molly: senator warren certainly among the president's favorite target. he had a chance to speak with pete hegseth last night. listen to him responding to the announcement. >> do you think she believes she can win? >> president trump: that i don't know. you would have to ask her psychiatrist but honestly if it's her or somebody else based on our record, pete, when you look at what we've done, when you look at the regulation cuts, when you look at the massive tax cuts, when you look at what we've done for the vets and what we've done for the military. >> molly: doug, two things were interesting. he mentions the psychiatrist which is the attack that democrats make against the president. he is the unstable one. but he also goes into his own record which implies he is ready to run on what he feels

he has accomplished so far. your thoughts to his reaction? >> the first reaction which is to say between her and her psychiatrist. i think it's inappropriate and i think it's inappropriate when democrats do it about president trump. it is inappropriate if he does it about elizabeth warren. that being said the president will run on his record. i think if he can get a deal on immigration and get some permanent funding for the wall in exchange for some pathway to citizenship for the dreamers, do infrastructure, fix healthcare he will be stronger but he will need to work with democrats, not just insult democrats. >> molly: phillip, clearly the president not intimidated by the idea of running against senator warren. seemed gleeful. there would be a contrast. >> absolutely. this is what i think is so interesting about warren's roll-out. she didn't necessarily -- wasn't the most inspiring candidate in the four minutes.

the one thing she did do which was very important is she avoided falling into the trump trap. for the last two years we've heard the same sort of resistance talking points about a coming apocalypse and instead of trading barbs with the president, what she did in her roll-out is she took a step back from that. didn't even mention trump's name once and introduced her own policy vision. when it comes to substantive policy issues, i think that's where she is strongest because she does have a record. she does know how to get things into law. if she is able to make this race about legislation, about accomplishments she is a much stronger candidate. >> molly: this is a little bit of senator warren from yesterday, of course. >> i'm in this fight because i understand what is happening to working families. i grew up in a paycheck to paycheck family. i run for office because i'm

grateful down to my toes for the opportunities that were given to me and i am determined that we will give those same opportunities not just to some of our kids but to all of our kids. i think when we fight for something positive, for something big, when we show not just tell but show what democrats will get out there and make happen, i think that's how we win. >> molly: she stuck to some of her central core ideals where she talks about the system being rigged. she talks about working families, about living paycheck to paycheck. that's something the president did when he ran and won so successfully and appealed to the working class voters. is part of the concern is all of these candidates go forward they face off against a president they're fighting for the same contingent of voters that woke up just a few years ago. >> well, molly, as i see it, the president won four or five midwestern states he wasn't

expected to win. those voters that senator warren was talking about were essential to his victory. they came back to the democrats in the house races this november and really were in large measure responsible for the 40-odd seats the democrats won. and certainly we've had income inequality growing, wage stagnation. the need for retraining. i think that's where senator warren is going. it's a good theme for democrats. she also recognizes if she just runs far left, there probably are not enough votes there. so i think for the democratic party with that sound bite she is trying to move back to what is the center to the democratic party, which is a relatively left but not as far left as the party sometimes can go. >> molly: when we talk about comparisons, which is exactly what the democrats will be doing, they potentially have this wide field. just your thoughts on who will enter the field, phillip?

>> at this point what we saw is the lessons of 2016 are being realized right now on both sides. you saw there was a repudiation of the elite. donald trump is president and hillary clinton was the nominee who was chosen by democratic elite and failed. so if you are a democrat right now, if you are a governor, a senator, or even a mayor, you are looking around right now saying to yourself why not? why not jump into the field right now? and when we're talking about warren, i think a lot of these upstart democrats are realizing that they don't want to make the same mistake that she made in 2016 by bowing out. they'll take a shot now and prepare themselves for the next election at very least. i think it will a very crowded field and a lot of fun for all of us to cover. >> molly: that is the big question you mentioned, why didn't elizabeth warren run previously when bernie caught so much steam and managed to pack these halls? shifting things back to you, doug. a long list of potential

candidates, amy klobuchar, kristin gillibrand. your thoughts on this wide, broad field and who might begin to emerge as the frontrunner as things get kicked off here? >> it is very hard to say. i'm not ducking the question. the democrats have a history of nominating outsiders, you know, george mcgovern, jimmy carter, so i don't want to be in a position of trying to handicap it. i have advised for a very long time new york city mayor michael bloomberg who is weighing and considering running. but putting that aside, i really can't handicap this save to say we have a totally wide open field and i think elizabeth warren got in early to try to supplant some of the people phillip mentioned like beto o'rourke, bernie sanders,

kamala harris, cory booker, four senators who are again compelling people. whether any one or more than one of them will catch on, we just don't know. but candidly there is an invisible primary at the start which is about raising money. if you aren't in the race, donors will not give you money. they will not go out and knock on doors and raise money from their friends and that's really what much of this is about. so let's check back in a few months and we see where the candidates stand in terms of dollars raised. then we'll do a better job being able to handicap iowa, new hampshire and beyond. >> molly: the money raised, who is bringing in the experienced staff. that's fun to watch. in the next couple most we will see folks get out to iowa and new hampshire and set up the first states. we were talking about it was tough to handicap. is that a strength or weakness for the democrats? they have the broad field but

if you can't even imagine who is the one who will catch the excitement? is that good for the democrats or bad? >> depends on which democrats you're talking to. who loves a crowded primary field? the people who love crowded primary fields are the establishment, stayed, elder statesmen of the party now. remember, you don't need a majority in order to win the nomination. you only need the plurality. a lot of different candidates out there, more choices for voters. but there is less of an opportunity for a consensus candidate. so if it's incredibly crowded, well then that works well for someone like joe biden or dare i say hillary clinton to come back and actually retake -- >> i don't think we'll see her in the race. >> at this point if we've learned anything from 2016 anything is possible and i think that because it is so diverse right now and such a large pack, there is an opportunity for someone to come in and just be a sort of middle

of the road candidate. i think this in particular makes someone like joe biden very attractive. >> molly: we shall see. happy new year. wonderful to have you on. >> leland: 2018 wrapped up. the latest in the mueller investigation. the sentencing of president trump's former attorney michael cohen and delay in the president's first national security advisor michael flynn. catherine herridge here. read the tea leaves heading to 2019? what can we expect? >> special counsel robert mueller could finalize his report and provide it to the justice department as early as february or march. but mueller's office does not comment publicly on its progress or the timeline. the end of last year the house intelligence committee voted to provide special counsel investigators with the testimony of political operative roger stone. he testified about a year ago with the senior committee democrat suggesting last month that emails between stone and

his associate jerome coresy or inconsistent with his statements to congress. they explored when the man had advance knowledge to post hacked emails to the clinton campaign. they denied it. another outstanding question is whether mueller is -- on sunday the incoming chairman of the powerful senate judiciary committee was pressed on the obstruction issue and the president's choice to lead the justice department, william barr. >> when you fire an attorney general it's hard to obstruct justice if you can have almost unlimited ability to fire the attorney general. i shared many of mr. barr's thoughts about the consequences of obstructing justice for personnel decisions. he will need to defend his reasoning. i have a lot of confidence in mr. barr. i think he is a great choice. he can offer his opinion and why we have the hearings. he will be tested. i will support him unless i

hear something really out of left field. >> his first order of business will be the confirmation hearings for the next attorney general. >> leland: we have the senate republican hands dealing with the mueller investigation and now house republicans are going to be in the minority come the end of the week. they seem to still want this second special counsel. >> correct. late last week republican chairman trey gowdy and bob goodlatte asked the acting attorney general to look into the second special counsel of the clinton emails and russia investigation by the f.b.i. buried in the transcripts are new revelations about his possible mishandling of memos documenting his conversations with the president. in a series of heated questions that nearly shut down the closed door interview in december congressman john ratcliffe pressed the former f.b.i. director on his decision to share the memos. some containing classified information with the columbia

law professor sand comey's two lawyers. ratcliffe. did you have written authorization from the f.b.i. to share any of the comey members with rickman? i did not have written authorization from the f.b.i. to share is february 14th memo. if you shared any information with your lawyers david kelly or patrick fitzgerald, did you have written authorization from the f.b.i. to do that? comey, i won't answer questions about my communications with my counsel. fox pressed the former f.b.i. director after the session. >> was there a spill of classified information when you shared those memos? >> i won't talk about something like that. >> talk about whether classified information was -- >> i won't talk about it one way or another. >> how democrats have said the republican investigation has been an effort designed to damage the special counsel and they have promised to immediately end the probe once they take the gavel, leland. >> leland: catherine herridge in washington thank you. a lot to watch this year. happy new year, molly.

>> molly: the brother of an american citizen arrested in russia on espionage charges says he is innocent as was in moscow to attend a wedding. paul whalen was arrested in russia on friday. the russian security service said he was caught during an espionage operation. the spying charges could carry a prison sentence of up to 20 years. the state department said it has received formal notification of arrest and is pushing for consul ar access to whalen. >> leland: the russian who was arrested a couple of months ago just pled out and thou protests too much. vladimir putin a couple days ago on one of his press conferences that he does on tv, don't worry, russia would never, ever arrest somebody to trade and then a couple of days later they arrest somebody. >> molly: this is like the plot of a novel.

>> leland: truth is stranger than fiction. >> molly: how does it end? for our american citizen as well. >> leland: in rough places right now for sure. defense secretary jim mattis is officially stepping down now. acting secretary of defense patrick shanahan took over about 11 hours ago. what does it mean for our military and american foreign policy this year? we'll break that down next. [cell phone rings] where are you? well the squirrels are back in the attic. mom? your dad won't call an exterminator... can i call you back, mom? he says it's personal this time.. if you're a mom, you call at the worst possible time. it's what you do. if you want to save fifteen percent or more on car insurance, you switch to geico. it's what you do. where are you? it's very loud there. are you taking a zumba class?

>> leland: patrick shanahan officially taking the reigns at the pentagon 11 hours ago. james mattis ended his tenure as defense secretary last night turning over the authority to the new acting secretary of defense. what changes at the pentagon and what changes for our armed forces? we bring in michael hanlan.

we talked a couple days ago about the way the world looked. does it look different with shanahan as acting secretary? >> a quick shout-out not only to secretary mattis, he was second -- spectacular. shanahan has less policy experience. my experience with him is he understands his own limitations and has a great team to help him. i'm not overly worried about the day-to-day going forward right now. i do think we have potentially huge crises this could emerge at any time. not because of president trump's fault or mattis's absence or anything but because of how the world works. north korea, russia, china are all high on my list not to mention the broader middle east. i do think that mattis had an unusual experience, knowledge base, credibility with the president for most of his two years and it will be hard to replace that. i'm a little more anxious going

forward for no particular reason but just because mattis was a giant and now we don't have him in the cabinet meetings any longer. >> leland: mattis a giant in so many ways and in terms of his deep, deep knowledge of history and his reading and to learn and understand the world. shanahan you spent time with. is he different in his outlook of the world per se than mattis is? >> well, i don't know -- yes in the sense that he is an engineer who spent decades building new technology, which is crucial as you know for american defense capabilities and for our deterrents about russia and china and their potential challenges to us. secretary mattis himself endorsed the idea of reinvigorating our high-tech competition toward russia and china. that puts shanahan in a good spot. his sophistication of technology and business is

rather welcome. mattis could do it all. the mattis/shanahan team was stronger. >> leland: is there anybody else at the pentagon who is perhaps not as well-known of a name but fills the mattis role you're saying is now gone in terms of institutional knowledge of the military in terms of knowledge of history, in terms of policy versus important curement of a technology? i'm a fan of general joe dunford in office for nine more months, extremely good himself and john rude, a well recognized name. he does broader foreign policy aspects. and the thing is they'll be very good in their own lanes. they won't have the larger than life presence or influence with the president that i think mattis had, at least for the first year and a half or so of

his tenure. in that regard there is a gap. >> leland: we've seen this interesting change. one of the reasons mattis left if not the reason, he disagreed with in the when it came to syria and the line in his resignation letter where he said you deserve a secretary of defense who agrees with you when it comes to policy. now we're learning from "the new york times" at least that seems as though the president stepping back from his original syria policy of 30 days, now saying four months. a lot can change in four months. >> that's true. maybe it's more than four months. i hope the president can make that statement about syria as an aspirational kind of tweet or rhetorical statement that gives the country an indication of where he wants to go but make a distinction between that and actual policy. if he can do that. if we can formalize the policy decision making and making it less responsive to president trump's impulses but let him be trump on twitter maybe we can have the best of all worlds. >> leland: that would be a good

thing. michael, thank you so much. >> molly: what kim jong-un is warning could happen if the current sanctions continue. her ! i'm in! but first... shelfie! the great-tasting nutrition of ensure. with up to 30 grams of protein and 26 vitamins and minerals! ensure. for strength and energy.

>> leland: treating the new year's eve stabbing attack after a stabbing in a manchester railway station. the officer was released, two other people remain in the hospital with very serious injuries, he was arrested on attempted murder. no wider threat to the public. extra officers were placed on manchester streets as a precaution. >> molly: kim jong-un says he is ready to meet with president

trump for another high stakes nuclear summit but warning the talks could fall apart unless the u.s. speeds up negotiations to ease sanctions. kitty logan is live in london. >> hi. the north korean leader made his comments in the annual new year's speech. it was a more peaceful speech than previous years but he fired the warning shot over the lifting of sanctions and plans to limit nuclear weapons productions, not specific on those details. at the summit with president trump back in june in singapore he did agree in principle to denuclearization. the fine-tuning of the agreement is still being worked out. those negotiations have stalled. now large crowds did watch this speech in pyongyang during new year's celebrations. the address was broadcast in south korea where it was largely welcomed by the

government in seoul. he called for the mass production of ballistic missiles last year. instead this year much of that 30-minute speech was about the country's economy with north korea's leader saying he wants to improve the lives of his people. of course what north korea really wants now for that to happen is for those international sanctions to be lifted to help boost the economy. kim jong-un has warned if it doesn't happen positive diplomatic relations with the u.s. may not last. the u.s. is insisting that the north has to get rid of its weapons first, hence the deadlock. but kim jong-un said he did want to keep good relations with the u.s. he has said he would be willing to have a second meeting with president trump. we'll have to wait and see if that meeting happens later this year. back to you. >> molly: that's all certainly history in the making. kitty logan, thank you. the ball has dropped in times square. now a new countdown as democrats get ready to take control of the house. can they come up with a plan to quickly end the shutdown?

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>> leland: a fox news alert. live look at capitol hill there. 11:00 on new year's day as house democrats are out with their plan to reopen the government, they say, unveiling just as the 115th congress winds down. the 116th congress begins later this week. america's news headquarters. a lot of news on a new year's day. i'm leland vittert. >> molly: i'm molly line. as the new divided congress gets ready to go into session on thursday nancy pelosi likely to be the house speaker. democrats aim to pass bills to fund the government without including any money for president trump's border wall. kristin fisher following all this in washington as the new

year begins. >> it may be new year's day. in washington it still feels more like groundhog day. it is day 11 of this partial government shutdown and we're still no closer to a compromise. democrats are refusing to fund the president's border wall and the president is continuing to say that he won't sign off on any deal to reopen the government without wall funding. >> president trump: we aren't giving up. we have to have border security. the wall is the biggest part. i'm in washington, ready, willing and able. i'm in the white house and ready to go. they can come over right now. they could have come over any time. >> the they is senator schumer and the likely soon to be speaker of the house nancy pelosi. yesterday they put out their plan to end the government shutdown and here is what it looks like. one year of funding for six of the seven agencies affected by this partial government shutdown and funding through february 8th for the department of homeland security. that includes $1.3 billion for border security but not for a

wall. neither president trump nor senate majority leader mitch mcconnell have directly weighed in on the proposal but highly unlikely either would support it because mcconnell has said the senate will not vote on a bill to reopen the government unless he is certain the president will sign it. republican senator lindsey graham who had lunch with the president a few days ago said no wall funding is a non-starter for president trump. at some point in order for the government to reopen, one side will have to give. which side is still very unclear. at least one democrat today seemed open to a compromise. >> i don't think compromise is a dirty word. that's one thing i've always said. i don't put hard lines down in the sand the way a lot of other people do. i sure don't -- i won't approve it the way that it is now. let's get in the room and talk about it and figure it out by february 8th. let's reopen the government. >> next step the house will vote on the proposal thursday.

it will likely pass. then it's up to republicans and president trump. highly unlikely either will support it. molly, this groundhog day feel here in washington could certainly continue for quite some time. >> molly: we'll see if we are talking about the same thing next week. >> leland: yogi berra called it deja vu all over again. pete hegseth had an interview with the president. he wants success, prosperity and health for our country. david mark from the examiner. the president wants money for his wall. as we heard from kristin fisher the democrats will put through a funding bill to reopen the government. does that change the calculus if democrats can start saying look, mr. president, we're giving you bills to open the government and you aren't doing it? >> it does give house democrats a bit more leverage and makes them look like they're the prime actors, the ones pushing through the legislative process.

of course, it does not mean that it gets us any closer to a bill actually getting enacted and reopening parts of the government. but democrats at least can drive the narrative and make it look like they have some say in the whole thing. >> leland: where is the danger for president trump? popular with his base no doubt to say i'm closing the government until i get money for my wall. where does the inflection point come that it changes for him? >> i think it potentially changes for president trump and also perhaps for the house democrats when this partial government shutdown really starts to pinch. so far it has been kind of theoretical because it was over the holidays, people had gotten paid through the last pay period but now we have 800,000 or so americans, u.s. citizens plus a lot more contractors who are going without work. they will start lobbying members of congress. whether or not they blame house democrats or president trump

both sides will start feeling it pretty soon. >> leland: this from the "wall street journal." a way out of the shutdown from the editorial board it says here. with the partial government shutdown donald trump appears to have no good exit strategy. not surprising since he had no entry strategy. what is the exit strategy if the democrats are saying we won't give you money for the wall? what does he get and how does he spin it so that at some point if it reaches the inflection point you're talking about we can take the compromise? >> if we've learned anything about president trump since he has been in office he is a master salesman to his own political base. he can call a loss a win and vice versa even if somehow a measure does get through. >> leland: i haven't heard him call a win a loss. i think that would be a new one for him. >> fair enough. he is very good with words. if somehow a bill became a law that did not include funding,

say for that southern border wall he might say it's a wall, whatever it is. steel slats, whether it's any number of other things. we'll have to see how that develops. it could be a wink, wink, nod, nod situations on both sides where they both declare victory and move on. >> leland: that normally happens in washington both sides declare victory when they agree to spend more of our money. this brings up an important point of what does this wall look like? we haven't heard that from the administration. we've seen tweets from the president that have steel slats with spikes on top. talked about how it will be big and beautiful and do all these things. republicans in congress have told me it would be a lot easier to fight democrats on this if we actually had a plan that we are going to have a concrete wall from here to here. wealth -- we'll have a wall with slats. >> the problem is there are so many variables in terms of actually putting up a wall.

not just a matter of construction. it is environmental rules, eminent domain. the government taking property from private landowners. a bunch of other issues. >> leland: the president of the united states signature domestic policy issue. that probably repeal and replace of obamacare that he campaigned on. it has been two years. are you telling me in two years dhs and the white house couldn't come up with a plan and say here is the plan for the wall and go enact it? >> i don't think it's for the trump administration about those specifics. it's telling his political base they're working on a wall. metaphorical. parts of the u.s./mexico border could not have a wall because it's along the rio grande and goes into the ocean as well. >> leland: back to the point governing is actually in the details. you would think that republicans would have learned that repeal and replace obamacare where they talked about it for so many years. when it came time to repeal and

replace it they didn't have a replacement. have you heard anything about the white house or dhs coming up with plans for the wall to look like to be able to present it? >> not in a holistic way. they have pieces here and there. one way along the arizona/mexico border and elsewhere in texas. this is an important point that democrats feel the white house is vulnerable because they feel like they are winning on this point. that trump on the campaign trail said mexico would pay for the wall. why should u.s. taxpayers have to fund the thing? that's the point democrats are driving home. >> leland: to your point in terms of the spin we already heard president trump trying to turn it around saying the trade deal he renegotiated with mexico is also much better and that means that mexico is in some way paying for the wall even though the wall hasn't been built yet. do people buy that or not? >> we'll see how public opinion goes. that may be the exit strategy

here or something along that line where president trump is allowed to the degree anybody can control him, he gets to say that democrats say no, there was no wall. they go their separate ways and reopen the government at least for a while to come. that might be about the best we can hope for in this particular circumstance. >> leland: last question for you in terms of the way the democrats are dealing with this. they wall, we're for border security. you ask them the ones i have on my shows to define border security and it becomes a much, much more difficult process. is there a way for president trump to pigeon hole democrats and keep them on the defense when it comes to this issue of being weak on immigration if they start passing bills that include money for border security? >> right. democrats say that drones, helicopters and other measures are good enough. the president, whether he gets into specifics or not, can say democrats are weak on border

security and that's something democrats have to be careful on. they have gotten hurt in campaigns past over this. it's mostly rhetoric at this point. not a lot of specifics. both sides feel like they have a winning hand up until now. >> leland: they seem to be feeling that way as the democrats would point out they won 40 seats in congress on their winning hand. we'll see what they do when nancy pelosi takes over the gavel. great to see you, sir, appreciate it. happy new year to you and yours. thank you for coming in this morning. all the best. molly. >> molly: a new year bringing change to the pentagon. the u.s. military waking up to a new boss, patrick shanahan. outgoing defense secretary james mattis handing over the range to the former boeing executive at midnight. >> jim mattis stepped down yesterday at defense secretary without a ceremony. instead he transferred power to his deputy, patrick shanahan, over the phone.

in his first message to the forces shanahan said as acting secretary of defense i look forward to working with president trump to carry out his vision alongside strong leaders, including the service secretaries, joint chiefs of staff, the combatant commanders and senior personnel in the office of the secretary of defense. one of the biggest threats he faces is china who celebrated 2019 with a flag raising in beijing. china continued to test missiles last year including the launch of a new type of ballistic missile from a submarine in november. experts say the u.s. must spend more on defense to keep pace. the author of a block buser report issued last year america reached the point of a full blown national security crisis and risks losing to china and russia in a war. >> the pentagon would merely be treading water if they got the $700 billion or $733 billion to add varns and make the progress that the strategy calls for. they need to get that $750

billion number. >> north korean leader said his resolve for complete denuclearization remains unchanged. he also urged the u.s. and south korea to continue suspending joint military exercises. something patrick shanahan will have to decide in the coming months. while shanahan started the day as acting secretary of defense he arrives at the pentagon tomorrow for his first public appearance. molly. >> molly: lucas tomlinson, a lot to watch. >> leland: california's largest public utility could face murder charges in the most detruktive wildfires in state history. investigation is underway whether pacific gas. they were found to have caused 17 fires in 2017 after branches came in contact with their power lines. >> molly: 7-year-old girl killed in a drive-by shooting. her father pleading for the

public's help to find the gunman. north korean dictator says he is willing to talk with president trump any time but he has some conditions. that's next. i'm ken jacobus and i switched to the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy. and last year, i earned $36,000 in cash back. which i used to offer health insurance to my employees. what's in your wallet?

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like magic. at comcast, it's my job to develop, apps and tools that simplify your experience. my name is mike, i'm in product development at comcast. we're working to make things simple, easy and awesome. >> leland: welcome back. hope you are enjoying your new year's morning. the father of a 7-year-old girl in a drive by shooting is pleading with the public to help find the shooter. the shooter opened fire on the mother and children while driving near a houston wal-mart. 7-year-old jasmine barnes was killed and her mother was hit. another child struck by flying glass. the suspect is a beard evidence white man in his 40s wearing a

red hoodie. the police said the family did nothing to provoke the shooting. >> molly: north korea has a new year's message for the united states. in a televised address to his nation dictator kim jong-un says he is willing to talk and take a new path regarding nuclear weapons but the u.s. must ease sanctions. what is the best path forward with north korea? let's bring in retired u.s. army lieutenant colonel daniel davis. military expert at the defense priorities. thank you for joining us today. happy new year to you. >> happy new year. >> molly: let's beginning with a little bit of what kim jong-un said to his people in his address. he was ready to pursue a outcome welcomed by the international community but he says he is force evidence to take a different path if the united states continues to break its promises and misjudging our patience and pushes ahead with sanctions and pressure. relatively strong statement but nothing like the bombastic statements we saw going back

and forth prior to some of the summits held last year. so when you see that where do we stand right now? are we in a comparatively reasonably good place with north korea and how do we proceed? >> absolutely. you couldn't be more right especially comparison to last year's new year's speech and certainly in the 2017 before that. there has been tremendous positive developments across the board both between the united states and north korea and between south korea and north korea which might be more important. the one thing we have to always keep in mind here is that time is on our side. we're in no rush to get this done because america's overwhelming nuclear deterrent will keep the united states safe indefinitely and really does than matter what north korea does long term. our must have is security and peace and security prosperity for the united states. >> molly: certainly no nuclear tests in north korea and no missiles being set off. last year there were a number

of summits. the president famously went and held his summit. do you think we'll see something like that again this year? could we see another meeting of president trump going over or is that unlikely to happen unless there is a major development? >> there has to be some development but i think it's something that both countries desire and are pursuing. i know the united states is in the process of trying to get senior level delegations lined up with north korea so i know it's president trump's interest from what he said and clearly north korea's interest and south korea's interest as well. something they'll pursue. they will also continue to pursue additional south korea and north korea summits. anything that moves in the direction of lowering tensions and moving towards peace is to be applauded. >> molly: there were three summits with the south korea president. historic to see the two leaders coming together. what a moment it was that we watched as far as history in being the case. and that thawing between the

north and south. is that a critical part? >> absolutely. it's important to note there have been a number of concrete developments throughout the year. as a result of these summits. there is almost always something physical that processes afterwards. they've dismantled a number of guard posts on both sides. a meeting of north korea and south korea soldiers in the dmz since the korean war just last month and establishing a railroad line and continue to develop economic ties. things are moving in the direction that reduces the chances for war. >> molly: kim jong-un is focused on getting the sanctions lifted. one of the arguments made for doing that for easing the sanctions is to allow that sort of thing to happen between the north and south. the greater back and forth as far as business is concerned allowing people to work on one side or the other side of that still fortified border. is that something that we'll do

depending on what happens as far as denuclearization in progress on that way forward? >> i think it is. it's important to note in the message again on the 1st, kim jong-un again reiterated he wants to work towards denuclearization of the entire korean peninsula. there is still a disputes on what that means but we're moving toward the same goal. bolton implied we could remove some sanctions in exchange for concrete measures. i think that's what you'll look to in the coming of this year. >> molly: do you believe that we'll actually see the dee nuclearization of the peninsula? >> i hope we do. everybody wins. it remains to be seen. i'm a little skeptical that they would give that up. i've talked to a number of south korean experts who say

they aren't sure that will happen but if it does it will be a multi-year process. we should temper our expectations on a quick resolution. >> molly: another major player chinese president xi. the north korean leader met with him. we have a complicated relationship with china now. talked about our military strength, theirs, trade disagreements that are still ongoing. so where does that play into all of this? >> it's a critical component. you can't have -- i don't think you can have an effective peace on the korean peninsula unless you have -- one of the new things being discussed which actually read in the south korean press this morning is an interest by multiple parties to have a two-on-two negotiations going forward with north korea, china, u.s. and south korea following that track. i think there is recognition on all sides that china will have to be involved in some way and china can play a positive role or they can play a spoiler role if their needs are not meant to their extent and something the

negotiating process will have to navigate one way or the other. >> molly: truly remarkable last year for north korea. we'll see what 2019 holds. lieutenant colonel daniel davis, thank you for joining us. >> leland: president trump said he would love to run against senator elizabeth warren after she took the first major step towards a white house run. as you might imagine that's not all the president had to say about the massachusetts democrat. his words next, plus the immediate u.s. troop withdrawal from syria may not be so immediate. on the ground in the middle east with the new timetable and what it means for the u.s. troops there. ozempic®! ♪ (announcer) people with type 2 diabetes are excited about the potential of once-weekly ozempic®. in a study with ozempic®, a majority of adults lowered their blood sugar and reached an a1c of less than seven and maintained it. oh! under seven? and you may lose weight. in the same one-year study, adults lost on average up to 12 pounds.

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>> molly: president trump reportedly extending the timeline for troop withdrawal from syria. the president has agreed to a four-month pull-out for the 2,000 service members stationed

there. this comes after days of very sharp criticism of his announcement of the mead withdrawal including some republicans. trey yengst is live with more. >> after setting the deadline president trump has agreed to slow down the timetable to pull u.s. troops out of syria. it comes after clear pressure from the president's military advisors and foreign counterparts who worry a swift pull-out from syria could leave open opportunities for rapid iranian expansion in the region. israeli prime minister benjamin netanyahu met with secretary of state mike pompeo. talks will continue when bolton meets with netanyahu on sunday in jerusalem. yesterday president trump indicated the fight against isis can still continue as u.s. troops prepare to leave the region.

president trump saying quote you can do two things at once. the president's comments come as syrian government troops did move deeper into a part of syria on monday, a contested area between the syrians, kurds and turks. government forces were invited to enter the city by kurdish forces the movement is a temporary fix to a larger issue. the turkish government is planning a major offensive in the region which could lead to violence against the kurds. while the u.s. withdraw of troops from syria will take place the trump administration indicated america will still take part in the u.s. led coalition against isis at least for the time being. >> molly: thank you. we appreciate it. >> leland: advance weaponry on the battlefields of the middle east may be putting u.s. military members at greater risk. "wall street journal" reporting high-powered guided missiles, many made by the united states, are flooding the battlefields there thanks lrjly to u.s.,

russia and iran having armed proxy fighters. six years ago the u.s. provided these types of weapons to rebels fighting the assad regime in syria. president trump canceled the shipments saying they fell into al qaeda's hands. the army is putting advanced armor on their combat vehicles. >> molly: new reaction from president trump to elizabeth warren's announcement saying she will form an exploretive committee. we're live in washington with more on this. >> elizabeth warren isn't taking the day off. they're working on the exploratory committee. she made the announcement on a video posted to her twitter page. >> in our country if you work hard and play by the rules you ought to be able to take care of yourself and the people you love. >> but what has her fans and

detractors talking is a live chat she did on instagram last night from her kitchen outside boston. she chatted with tens of thousands on instagram live at one point and cracking open a beer answering questions from instagrammers. >> i'm glad for everybody joining this video. it is great to hear from you. i'm going to get me a beer, hold on a second. my husband, bruce, is now in here. you want a beer? >> i'll pass for now on the beer. >> this is my sweetie. he is the best. >> in an interview with fox news last night president trump responded to news that warren may challenge him in 2020 and he had something to say about it. >> president trump: she did very badly in proving that she was of indian heritage. that didn't work out too well.

i think you have more than she does. maybe i do, too, and i have nothing. we'll see how she does. i hope she does well. i would love to run against her. >> warren's casual chat -- incoming new york democratic representative ocasio-cortez. no guarantee of a full blown presidential campaign. insiders expect to see one. senator warren says she will announce her permanent plans in the coming weeks. leland and molly, back to you. >> molly: the beginning of the heat-up inching closer to 2020. happy new year to you. >> leland: before we get to 2020 we get to 2019 and democrats preparing to take over the house this week. you might remember they ran with healthcare at the top their agenda. the party seems -- it have

real implications for the 2020 race for the white house. on the left a democratic strategist and ted harvey, fellows, nice to see you. ted. it looks like you were enjoying new year's in a warmer location than denver. we're glad to see that. antawan. start with you. republicans tried to repeal and replace obamacare. we know how it ended up. democrats ran on this? 2018 as a signature issue. what do they have to do in the first couple of months of 2019 to follow through on those promises? >> well, we ran on because it was the number one issue of what the -- >> leland: i'm interested in what do democrats have to do. >> let me get there. what i think they have to do is answer two questions. how do we address access and

cost being in the majority in the house, but not having the white house and the senate. so i think that's the question they'll have to answer and how we do that, i don't know. what i do know is different strokes for different folks. different places in the country you have access that is more of a priority and cost is more of a priority than other places. i think they have to merge those two things as well as fight against the republican majority who does not want to address the issue. >> leland: that has been elusive at best to find those answers, even by one party and when democrats had the house, the senate and the white house doesn't address all of them. tried to but didn't work out too well. >> we addressed the issue with the affordable care act. >> leland: we know how that worked out. make your own decision. ted, to you, though, antwaan brings up an important point. protecting pre-existing conditions polls well and republicans failed on repeal

and replace. what do you say? >> i would reject your proposition that they failed on repealing it. they have repealed it. when they did away with the mandate that you had to have insurance and that was the penalty that justice roberts held his supreme court ruling on that made it constitutional, when the republicans repealed that, that made the bill unconstitutional. that's why the fifth circuit ruled as such. the bill moving forward. >> leland: it has been stayed. nobody thinks obamacare has been fully repealed. you can't say that. >> actually that's wrong. most legal minds believe that when it gets to the supreme court the supreme court will rule that it is unconstitutional because that mandate. >> now we're left with no healthcare system in place that will put in place a free market system where the health

insurance actually works. and what you are saying is that -- >> leland: ted, that sounds like you are describing to me that republicans by repealing this in your words all they did was create a new problem and still couldn't figure out how to replace it still when they had the house, the senate and the white house. >> there was a bill that went forward and you remember john mccain went up and gave a thumbs down on it that would have fixed it. now if the republicans -- if the democrats come come forward. >> what the american people want. >> leland: are you going to continue to interrupt me? i'm trying to get my comment out. >> you're not saying much. >> because i keep getting interrupted. >> leland: ted, make your point. >> thank you. the republicans had a plan. john mccain thumbed it down. now it is going to take the republicans and democrats coming together to solve this issue. the biggest issue that is out there like you said, is the

pre-existing condition. if we can get an agreement on that, that would be great because that is indeed what most americans want is to protect the people who have pre-existing conditions. i guarantee you no democrat will come forward and support any solving of this issue because they want to have the issue going into 2020 because they aren't interested in governing, they're interested -- they're obsessed with the 2020 election making sure that donald trump is not president of the united states. >> you spent so much time saying a whole bunch of nothing. here is the bottom line. 79% of the american people want to deal with the issue of affordability and cost. 55% of the american people want to deal with the issue of access. what i know is democrats ran on we're going to fix the healthcare system and aca. american people responded in a big way and why we have the majority in the house and why historic gains in governor's mansions and legislators around

the country. >> leland: you said you don't know how to fix all those things and democrats don't know how to fix them, either. >> no, no, no, hold on. >> leland: you brought up -- >> let me clarify what i said. you're saying i said something i didn't say. i don't know how they'll fix it with the republican majority and the white house and the senate. we can pass bills all we want out of the house. if it gets to the senate and doesn't go anywhere it doesn't matter. >> leland: to that point, ted, is that a danger for republicans. healthcare polls well and they picked up 40 seats running on this issue as a signature issue. if there isn't some fix, will voters continue to hold republicans responsible? >> well, remember for the previous eight years republicans picked up more house seats than they've had since the 1929 on the healthcare issue because the american people realized the obamacare proposal was a disaster and needed to be fixed. the republicans came forward with a proposal that would have

fixed most of the free market system in the last term when they had the house and senate and john mccain voted it down. you need 60 votes to get it done. john mccain wasn't there. we have the ability -- >> leland: ted, republicans had or have and for the next 48 hours the united states house, the united states senate, they had the white house and someone in the white house that you have said many times on this program is one of the great communicators and convinceers. the best reason you can give me republicans weren't able to fix healthcare is to keep going back to the vote of john mccain? >> that is the answer. that is the answer. you saw john mccain promise the arizona voters he would be the one that led the fight to kill obamacare and when he had the chance he gave a thumbs down. that's history. >> leland: we're out of time. antwaan and ted. i don't know if we solved anything. see if congress does better

than you guys did in the coming weeks. appreciate it, fellows, thank you. happy new year. >> molly: motorists looking forward to cheaper gas prices in 2019. analysts predicting the price of regular gas will be $2.79. despite cutbacks, crude prices will continue to go down over fears of a slowing economy. >> leland: all right. the woman who helped elizabeth smart be kidnapped is now out of jail and starting a new life. where she is living has elizabeth smart speaking out. we'll tell you about that. plus new details in the case of the man charged with killing his fiance even though they haven't found her body. will the charges against him stick? our trial attorney breaks that down next. your insurance rates skyrocket after a scratch so small

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>> molly: the woman who helped kidnap elizabeth smart in 2002 is living near an elementary school. 73-year-old wanda barzee was paroled from prison and lives blocks from park elementary in salt lake city. she pleaded guilty to helping her husband abduct then 14-year-old elizabeth smart from her bedroom at knife point. smart was repeatedly raped during nine months in captivity before her rescue. she is now a child safety advocate with three kids of her own and says people like barzee should be housed as far as possible from schools and families. new details emerging about a colorado man suspected plot to kill his fiance. patrick frazee was formally charged yesterday with the murder of kelsey berreth, the mother of their young daughter. despite no body being found and

she has been missing since thanksgiving. joining me now trial attorney heather hanson. happy holidays to you and happy new year. this is a heartbreaking case. we have a mother who is believed to be dead but these charges really don't clear up much as to exactly what the theories the police have. what are your thoughts on the way this case is being presented at this point? >> you make an excellent point. they don't clear anything up whatsoever. there are two charges, a first degree murder charge, the assumption that he actually killed her and then there is a felony murder charge that there was a robbery taking place and died during the commission of the robbery. it is pretty clear to me the prosecutors aren't clear as to where this case is going. that doesn't mean they won't get clear and it seems to me, molly, that perhaps there is someone talking to prosecutors. we know that three of the counts are solicitation counts or him trying to get someone to help him or to murder his fiance. those people or persons may

actually be speaking to police and entering into some sort of plea deal to help the prosecutors make their case. >> molly: one of the big questions i have regarding the solicitation charges. they could very well have some sort of evidence as far as maybe an email, conversations, something. what do you think they have? you mentioned it could be someone cooperating because no one else has been charged at this point in time. do you think there is more than that? >> absolutely. there is a hearing held this friday going to be held this friday. in that hearing the prosecutors want to discuss a particular piece of evidence that they want their experts to test. but once they test it, it is called consumable and no longer be. they have to work with the judge and the defense to make sure that is tested in a way that's fair to everyone. clearly, molly, that piece of evidence that we'll learn more about on friday is a key part of this case. there is definitely evidence that the prosecutors have. another key point is they have not yet given the defense attorneys the arrest affidavit.

all of the facts. so that makes it clear as well that there are facts that they know that they are reluctant to share with the defense. >> molly: one of the other big challenges here is kelsey berreth's body has yet to be found. how big of a challenge is that for investigators? >> it is a big challenge not so much for investigators but juries. when you go before a jury they like to be sure the person is not just simply missing but has actually been murdered. however, we see it all the time that it is possible to make a case based on circumstantial evidence and other evidence to establish that a murder did take place. the other important piece of that, molly, is for the family's peace of mind to know where their loved one's body is. sometimes that helps with a plea deal for the defendant. sometimes if the defendant is willing to explain where the body is or lead investigators to the body, it can help them to face less time in jail. remember, if he could be facing the death penalty. so it may be his attorneys want

to talk to him about sharing some information about the prosecutors. >> molly: colorado is a death penalty state. prosecutors giving the defense little information at this point. is it because they don't have it or simply don't want the defense to see it? >> it seems to me they don't want the defense to see it. that's another thing that will be part of the hearing being held on friday. how much they have to give to defense. they want to make sure the defense attorneys don't share it with their client. it leads me to think a couple of things, they're still trying to compile evidence and talk to witnesses and they don't want the defendant messing with that or people they think might be in danger as a result of this evidence. so that's going to be an interesting hearing on friday. the fair thing to do is to give all parties all of the evidence but a lot of prosecutors try to hold back some of that for safety reasons or for investigation reasons. >> molly: there is also a piece of evidence that they talked a little bit about in court and the potential it could be

consumed. how important could that potential piece of evidence be? why is it being discussed this way in open court? >> consumable means it could be destroyed. it could be food they have to taste in order to see whether it's poisoned. that's a possibility. but it could also be something that could be blown up. the issue becomes once it is consumed in whatever way they're talking about, it is no longer available to everyone and all of the experts to test it. i would imagine it's a key piece of evidence, molly, and on friday they'll determine how they are going to test that evidence in a way that's fair to everyone so the defense experts also get a chance to look at that evidence, test that evidence, get an argument to be made from that evidence for the defense side. >> molly: could it potentially be dna related? >> it could be. most of the time dna evidence isn't something that just disappears. it is something that they can have and use and that they can keep on testing and they can make slides of, they can do all kinds of things with that

evidence whereas something like something that's an actual explosive evidence or something that is some sort of food. we know, for example, there were cinnamon rolls left out on the counter when she disappeared on thanksgiving. so there could be something to do with that. we will know for sure on friday but the key piece is that this is evidence that can only be tested once and then there is no more opportunities to test it so it's really important it is tested in a way that's fair to everyone. >> molly: quickly there is a little girl in the center of all this. 1-year-old kaley. she is with her mother's parents. there is a hearing on thursday. clearly this wouldn't be part of the criminal investigation but certainly an entire family is affected by this. how is that handled when we see an investigation like this? the father is facing charges, the mother not found. >> i think chances are the mother of the victim, kelsey's mother, will end up keeping the

baby. she has fought so long and hard to take care of that child to make sure that everything is okay and she has had a really tough holiday season. i don't anticipate that the judge is going to take that baby away from her on thursday. >> molly: we shall see. so many elements to watch as it develops. really appreciate your insights. heather hanson, thank you for joining us on this new year. wouldn't it be a great way to start off the new year by winning mega millions? >> leland: a fabulous way. i don't think it will happen but a great way to do it. >> molly: you have to buy if you want a chance. today's drawing is another big one. how much is actually up for grabs and the man accused of killing his girlfriend and entire family in court yesterday. the penalty he could face next. n the new sleep number 360 smart bed. it senses your movement and automatically adjusts to keep you both comfortable. and now, the queen sleep number 360 c4 smart bed is only $1299. plus, 24-month financing on all beds.

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>> molly: the man accused of killing his girl friend and her family in missouri could face the death penalty. richard emery is charged with the murders of 39-year-old kate cast tin, two young children and mother inside their st. charles home on friday. emery was injured in a shoot-out with police and found bleeding inside a convenience store restroom after a seven-hour manhunt. the woman lost her husband to cancer in 2017. >> leland: molly is counting on the mega millions, the jackpot in 2019 so she never has to be with me on a holiday again. you can never count on the jackpot. jackie heinrich, our resident lottery expert why molly's luck doesn't have a chance. >> you might have a shot with a

dollar and a dream. actually $2. $3 if you want the mega flyers. it rolled over again with no winner last friday bringing up to $425 million. if you take the cash instead of installments you go home with $254.6 million. it sounds like a drop in the bucket compared to the $1.6 billion jackpot from october, which by the way has still gone unclaimed. tonight's drawing is the eighth largest in mega millions history. hopeful ticket buyers are dreaming up what they would do with the winnings. >> i'm going to buy my sister a new house. she had to give up her house because she got divorced and take care of my great niece and nephews. >> you will have to share the pot with uncle sam if you win. the government takes 37% and pay state tax depending where you live. any way you slice it your odds

of winning are not in your favor. the odds are 1 in 302.5 million. the lottery manipulated the numbers in october of 2017 lessening the odds of winning but allowing the jackpot to reach record highs. the theory was bigger jackpots would draw more attention and leading to more tickets sold. decreased your chances of winning to 1 in 302.5 million. you are more likely to be eaten alive by flesh eating bacteria or drafted by the nba as a woman. tickets are sold until 10:45 with the drawing at 11:00 eastern. >> leland: there is a great piece on fox news.com written by liberty vittert on some issues that you brought up in that piece, jackie. encourage you to check it out. nice to see you. thank you. >> molly: divided congress will gavel in a few days from now. what do house democrats have planned when they take control? how will the gop controlled

senate react and will lawmakers and the white house bring an end to the partial government shutdown? we're live with the latest next.

>> and a fox news alert, president trump at the white house. he was there last night ringing in the new year while congress has been spinning its wheels on efforts to end the shut down. we were talking at the break. is there a better chance of winning the lottery, or of congress getting this all figured out? we will break that down. >> on the time on, somebody could win the lottery shortly. we will see if it happens on the same timeline. >> new here on new year's day, nice to be with you. i hope you had a great night last night. >> i'm molly. democrats have spending bills to bring the government when they to control the house on thursday. but they are not budging on the border wall. meaning the shutdown could last for a while. kevin corke it come alive at the white house now. how optimistic are white house officials that congress will actually find an end to this

impasse and fund the border wall? >> that's a great question, molly. i just spoke with a senior administration official within the hour and, unfortunately, he said to me there is little optimism here the democrats will come to a consensus and create a deal that enables the president to get his money for the border wall. that means this could probably go on for quite some time. that's certainly not very good news in particular for those of you who work for the government and are now sitting on the sidelines, hoping that somehow, someway, they will figure it out so you can get paid again pray let me take it to twitter and share a bit of what the president had to say about this. he is once again pointing the finger at democrats. he says "one thing has not been proven -- the democrats do not care about open borders and allf the crime and drugs that open borders bring." so, as the shutdown approaches two weeks now, the president is reminding the american people what is at stake and why he is holding the line for not just border security, molly, but he wants to hold out for that wall.

>> i spent christmas in the white house. i spent new year's eve now in the white house, and i'm here. i'm ready to go. it's very important. a lot of people are looking to get their paycheck. i'm ready to go anytime they want. we are not giving it. we have done border security. the wall is the big part of border security. the biggest part. >> on capitol hill, democrats are eager to resume control the house this week. senate democrats are urging the president to give up the demand for wall funding. here is chuck schumer on twitter. he said it would be the height of irresponsibility and political cynicism for senate republicans to now reject the same legislation they supported weeks ago. #trumpshutdown. separating the size of little end in sight. >> molly: what is the democratic counterpunch we can expect here is the shutdown continues? >> that's exactly right. a couple things. we will say, "listen, we have to do the business of the american people."

they will float separate a tem. for the folks at home who are unfamiliar, it's a continuing resolution. effectively what that would do is we would get a little bit of money so we can get the government operating once again. in the meantime, it gives the white house and congressional leaders a little time to give gt back to work. i want to share a bit about what chuck schumer not only sing about that, but other democrats on capitol hill. they have been saying "this has to happen one way or the other. ." in fact, we expect them to unveil the idea on thursday when they reassume control of the house. one of the things they also want to do is try and fund six agencies that are also shut down for a listen, molly, we talk about homeland security -- i've got secret servicemen and women here working without a paycheck right now. they are saying "listen, we hope that cooler heads will prevail and they can come up with something." so they want to fund dhs until february 8th.

the six remaining government spending bills that would fund other agencies through the end of the fiscal year, which is coming up september the 30th. it's a tough time here in washington. we will see if they can figure it out. in the meantime, we will keep an eye on it for you. back to you. speak to kevin, thanks so much. an insight into the strategy will see in the days and weeks ahead. president trump also not backing down on his border wall saying that he will continue to shut down until congress pays for while here the president "the democrats probably submit a bill, being cute as always, which gives everything away but gives nothing to border security. namely, the wall. you see, without the while there could be no border security. the tech stuff is just, by comparison, meaningless bells and whistles." tom is cofounder and publisher of real clear politics pray thanks for being here, happy new year to you. >> happy new year to you, molly. >> molly: we heard some of the back and forth there and the strategy that each side seems to be entrenched on at this point in time. how do you break this impasse?

>> there is an obvious way. lindsey graham offered a potential for a compromise, where democrats give up the $5 billion for the wall funding and in exchange they get an extension, a three year extension, for the dreamers. the daca folks. and also the immigration folks who have the temporary protected status, tps. that's the only compromise that is floating out there right now. it does not look -- the incentives are not aligned for either the democrats or trump to give it away. this idea that, they would sign onto the democratic proposal, and that trump would sign it, the idea of keeping the government open but leaving homeland security until february 8th -- trump is never going to do that. republicans would never do that. it gives away all the leverage, whatever leverage they have. right now there is no incentive for either size to compromise. the pressure is only going to get ratcheted up here in the next couple days. >> molly: we just heard that tweet sent out by schumer saying he would be the height of

irresponsibility and political cynicism for them to reject the same legislation. at the same time, republicans have made that same argument in that democrats previously had supported border security. that sort of thing. in other years, but not now that the president trump not only wants it but has made it really part of his mantra that you hear. "build the wall," out on the campaign trail. that they will prevent that victory. when you see that back and forth, where each side has been willing to sort of gives on these issues in the past and how they are not, what you think the american people see? >> i think they see more of the same, which is dysfunction. the polls show that they don't want to see the government shutdown. they are blaming trump the republicans a little bit more than the democrats, although that could potentially change. they want to see washington work. the problem is the folks in washington don't want to work together. the incentives are not aligned. this is nancy pelosi's first big test of showing up donald trump and shutting them down on his signature issue. meanwhile, donald trump continues to make this sort of

his redline, his line in the sand, and he's not going to give on this. he can't, because it would be utter capitulation and he would suffer for his base. there are loggerheads, there doesn't seem to be any way in the near future for this to get resolved. ironically, it's over a tiny, tiny amount of money, given that the federal government spends $4 trillion. meanwhile, some people are suffering and they will get their paychecks pray this will go on for sometime. >> molly: one of the strategies the democrats have taken two is to make it a moral issue, to say this is simply morally wrong. it can't be allowed. and then he mentioned a few minutes ago daca as being a potential trade. they walk away from that being on the table, which they fought so hard for -- it's like a flashback to last january -- where would that leave the democrats as they move forward? if they have a chance to get that for the dreamers, do what they have been promising, and trying so hard to do? as you mention, for this small amount of money? >> even luis gutierrez, who is a

former congressman now from here in illinois said "look, the democrats should take this deal. they should pay the ransom." because they can get the extension for the dreamers, which they want and think is the right thing to do. in exchange for what is a tiny, tiny amount of money in the overall scheme of things. it's, by the way, $20 billion less than they offered last year. there are some democrats who are open to the idea of this compromise. again, this comes down to nancy pelosi and the base -- the left-wing base of the party. really wanting to not give trump anything. and trump said this in tweets, too. "they would give it to someone else, but they aren't giving it to me because it's me." and he's right about that. it's hard to find compromise, because trump is such an anathema to the democratic base. it's going to be tough. >> molly: the president did just tweet about an hour ago, "one thing is that been proven -- the democrats do not care about open borders at all the crime and drugs that open border spring." so, from his stance, he's trying to make this about a safety issue. as you said so many times, amera

first before others. will that be an effective strategy if the american people begin to tune in now that the holidays are behind us? >> yeah, look at, americans are generally in favor of border security across the board. independence, certainly republicans, even some democrats are in favor of border security. it depends on how you ask the question. they aren't in favor of a wall, but they are in favor of a barrier or a fence or technology to secure our border. people don't think open borders as a good idea. that's not necessarily a winning issue for democrats. certainly heading into 2020. but, that's one issue per the question is, should the government be shut down over that issue? that's where the conflict comes in. they don't want to see government work. people continue to give their paychecks. trump is trying to turn this around and make this the schumer shut down, put this on democrats. he has had limited success with that. we will see other people are back in the pressure starts getting ratcheted up, and the options are available to folks. again, right now we are stuck.

>> molly: plenty to watch as far as the partial shutdown is concerned. thanks for joining us. >> you bet. >> leland: fox news alert, noon eastern, late already on january 1st in russia as we learned new information about an american citizen arrested there on espionage charges. paul whelen was detained in moscow last week. russian officials that he was picked up while carrying out a spy mission, but his family here at home says he's innocent. live in washington. what exactly was he doing there in moscow to begin with? >> his family says he was at a wedding. we've been in contact with his twin brother who says that whelan is a retired marine, and says his family learned from news reports yesterday that the russian government had detained him. in a statement, whelan's family said "we noticed he was not in communication on the 28th, which was very much out of character for him even when he was

traveling. we are deeply concerned for his safety and well-being. his innocence is undoubted, and we trust that his rights will be respected." his family also said they have contacted congressional representatives at the u.s. embassy and state department. the state department spokesperson says the russian ministry of foreign affairs has formally notify the united states of its intention. the spokesperson says international log requires russia to grant access to u.s. officials, and that officials have requested to see whelan. the state department has not responded to questions as to whether they had visited him yet. >> leland: we can take it for now that he's not an employee of the united states government. what is russia's thing about this question asked to go not much. a state outlet says that they have initiated a criminal investigation into whelan, alleging espionage. they said that the conviction carries a prison term of up to 28 years. russia's domestic security service, the fsb, so that they arrested him friday will he was in the act of spying.

they offer no further details on that. in his annual news conference last month, russian president vladimir putin said his government would not arrest innocent people simply to exchange them for russians held in other countries. russia has protested the detention in the united states of one of its citizens, maria butina. last month she pleaded guilty to acting as a foreign agent. leland? >> leland: rich is there in washington. rich, thank you. you heard the tag to his report about what vladimir putin said. maybe perhaps shakespeare, he doth protest too much. >> molly: he's been cynical about the intentions there. >> leland: he has earned its cynicism there. too rich's point, you have a u.s. citizen detained over there and very little information about his condition. let's put it this way -- the russians don't have the same view of civil rights and of prisoner rights that the united states does in these situations.

>> molly: we can only hope that he returned safely to his family, and hopefully soon. we will see what happens with that. north korea, the leader, kim jong un, has a message of what he wants to keep nuclear talks on track. >> leland: and wall street had a riled right in 2018. we will definitely see more ups and downs in the new year. but will it be mostly up? experts break down what you should watch 2019. ♪ hey, who are you? oh, hey jeff, i'm a car thief... what?! i'm here to steal your car because, well, that's my job. what? what?? what?! (laughing) what?? what?! what?! [crash] what?! haha, it happens.

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she drinks, robberies, carjackings, and other violent crimes were also done. officials attributed it to improved technology and more police involvement in the immunity >> molly: north korean leader kim jong un giving his new year's addressing his country is committed to denuclearization. he is ready for another some edge with president trump. should not test his patients on sanctions. kitty logan is live on monday with him on this. >> hi, molly. overall, this was a more peaceful new year address then we have seen in previous years. there was that a veiled threat to the u.s. that north korea wants sanctions lifted as soon as possible. much of that half-hour speech was about the country's economy, with the north korean leader saying he wants to improve the lives of his people. he also spoke about limiting weapons production, although he was not crucially specific on those details. the denuclearization

negotiations have stalled since at singapore some of between kim jong un and president trump last june. and the angry rhetoric has largely stopped. interestingly, there were large crowds out enjoying the new year's festivities, watching that speech in pyongyang. that speech also broadcast in south korea to the tone of it welcomed by the government in seoul. last year speech, focused mainly on missile production. it's clear from the speech this year that north korea, what it wants now, those international sections to be lifted. despite those extravagant new year's celebrations that you can see here, the country's economy desperately needs a boost and kim jong un's warning that if those sanctions stay in place, relations with the u.s. could again deteriorate. but the u.s. is insisting that the north has to get rid of its weapons first. for now, it's difficult to see these two sides coming to an agreement. we will have to wait and see if

that second meeting between kim jong un and president trump happens later in the year. perhaps that will help break the deadlock. molly? >> molly: 2018 with such a remarkable year for north korea, as you mention. we will see what 2019 holds. kitty logan, thank you. >> leland: u.s. stocks posting the worst year and a decade. the s&p 500 and the dow. they made solid begins on monday, but still finished 2018 and a decline. the s&p 500 down 6.2% as wall street experienced a major of turbulence in december. we will look ahead to 2019. francis newton stacy, director, with us now. nice to see you, we appreciate it. it's always the time of year, be at the end of the year or the beginning of the year, take stock. does it really matter for the markets' close on friday versus open on monday? or, in this case come on monday on new year's eve open tomorrow?

>> it doesn't really matter in the big picture. the volatile december had a lot to do with the fed statement. because they said they will continue to move $50 billion out of circulation. it's going to be on autopilot. the market was simply pressing that in. next year, what we have to look for are a couple of things -- in the first quarter, we are going to get the fourth quarter earnings report. how the christmas retail really was. i hear some rumors that some of the margins are going to be a little bit smaller because some retailers has a discount things to get them out the door. we will see what that looks like. we are certainly going to see if the fed is going to raise rates, in addition to the balance sheet. i don't know how many rate hikes the market is pricing in. there is some sort of different opinions out there. that will be a big determining factor. >> leland: what are the critical events that we look to in 2019, in terms of actually sort of forcing the market in a real direction? because over december, while things were external or

volatile, you had the worst christmas eve and then the highest one day point gain back-to-back. with no real meaningful news in between. >> yes, exactly. what that is, that heightened volatility -- that's buyers and sellers. it's like a tug-of-war. who is trying to win that work was to make a lot of people think it's going to go up, some people tickets going down. a lot of indecision. that is the volatility. to confirm a trend in 2019 is going to be complete dependent on how many rate hikes the fed does. when they drain money out of circulation, which is what happens when those rate goes up, it's like a swimming pool your dream of a swimming pool. there is less money in circulation to go around, and what we have to remember is that even though interest rates are historically low we have a record amount of debt in the system. you need enough water in the swimming pool to be able to service that debt. i can tell you what's not priced into the market, and that is problems with the credit markets. the fed is largely priced in,

and q4 earnings for 2018 to a large extent are fairly priced and in. with rate hikes and how it affects the credit markets is the thing to watch for. also, let's look at the dow staying above 25,000. that's a good indicator that it's going to go up rather than continue to fall. >> leland: i guess when it comes to rate hikes, at least in terms of how things are going with the fed, we should keep an eye on president trump's twitter account as well. quickly, jean marx was on a couple of hours ago -- his prediction was up 5%. are you over or under that? >> if they do more rate hikes, under that. if they stop hiking rates or potentially ease up their problems in the credit market -- >> leland: i was just looking for an over under. >> i'm sorry! [laughs] >> leland: over or under 5%? >> i will say under.

>> leland: frances newton stacy, thanks so much, mama. we appreciate it. >> thank you, happy new year. >> molly: democrats calling the house g.o.p. out, saying that their bias against president trump. just a distraction from special counsel russia investigation. we can expect this year from robert mueller. plus, senator elizabeth warren eyeing the white house as the 2020 presidential race starts to take shape. who else will be announcing, and when? our political panel take set up, next. >> i never thought i would run for anything ever in my life, but america's middle class is getting a hollowed out. opportunity for too many of our young people is shrinking. ♪ what makes this simple salad the best simple salad ever? great tasting, heart-healthy california walnuts. so simple, so good. get the recipes at walnuts.org.

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campaign. it is already, i've got people from all across this country who are going to be part of it. together we are going to make change. if people out there see it and want to be part of it, i hope they go to elizabethwarren.com join us. that's how we will build the movement that will change america. >> molly: senator elizabeth warren, the most prominent democrat taking a first official step toward a presidential run, and i think she's forming a 2020 exploiter exploiter committee. who will enter the race and how soon? let's bring in our political panel prince cap bulletin, democratic strata >> leland: and kevin sheridan , a former communications director for paul wright. happy 2019! >> happy new year to you, too paid >> molly: already talking about 2020. senator warren of messages taking a big first that. she gets a little bit ahead again as far as the money race is concerned. maybe she's trying to line up stuff and get in there first.

what do you think her chances are, scott? >> well, they are as good as anyone else's. if 15 to 20 people get in the race. if you got out now and started to control this news cycle. as you look as democratic candidates who make it in, as well as senator warren, you got to look at what their challenges are. to say in the race for the long haul, you've got to be able to mobilize voters. you have to be a viable candidate, because trump at his 35 to 40% simply can't grow based on how these govern. she is as viable as anybody else right now. she's got her own challenges as far as the native american issue. she doesn't poll well in massachusetts or with african-american democrats. why while she may have a messag, she's got a base and she's not weld generally. she's got some work to do >> molly: she's leaning on the

bluer side. as the democrats go preach thought to be a liberal, the northeast, massachusetts, the blue states, all of that. yes and challenges they. kevin, what do you think westerner can she appealed to a broader spectrum of americans? >> the thing i'm trying to figure out with elizabeth warren is what lean she would dominate in a democratic primary field. if you are looking for a fresh face, beto o'rourke is probably a better option. if identity politics is your thing, you are not going to go with liz at warren. you will go with kamala harris or someone else. if your going establishment, it's joe biden she doesn't come to this starting with a solid base. she has a crowded field, and in a crowded field all you need is a donald trump. a solid base that will stick with you. i don't see where it comes from. she has money, $13 million in the bank, which is a good place to start. if she can pick off some high level staffers that are known within the democratic party, and may be some key endorsements are

really, she might have a chance. right now i agree with scott. i don't see her as having a particularly good lane to run in right now. >> the other challenge for her and all the democratic candidates is that there is a lot of company in whatever space they tried to get in. for example, you're going to have african-americans running. you will have women running. you will have economic populist running. bernie sanders, for example, has his supporters -- they are the same as her supporters. you're going to have this cross pollinate station. what you have to do is separate yourself as opposed to running in the field. they're going to start dropping like flies in these debates. like we saw with the donation . >> molly: is hurling the progress of linking to the bernie sanders lane? let's talk about president trump. he has never stopped campaigning. he has govern, he's done -- he

continues to sell his message. he views as successes in the economy. he keeps going back to pennsylvania and packing these airplane hangars where he goes. he has never stopped for a moment, which is kind of unusual plan. how do you compete with that? he is out pretty far ahead of it as far as running is concerned. >> one way you compete with it is you say that he's got 30 to 40%, and all of that is -- all of those approaches to his go to his core base. you then argue that he cannot grow, and so he scott to find an electoral base and build a coalition. in 2016, he had hillary clinton and the emails. he had obama. he had the combing effect. at least that is my view about why he was able to pull his victory off. but he hasn't done anything in the last four years to grow or to expand that base of his, of 30 to 45%. that's going to be a real challenge for him.

the more he supports that core base and placed to that core base, often times whatever it is -- that coalition of suburbanites, educated women, soft republicans, independence -- he is driving them further away. how does he bring them back when the democrats are going to have a viable candidate? he won't be hillary clinton prayed he was going to be the president about stress boogie man in 2020? he needs one >> never underestimate the ability of the democratic party to go too far left. right now that's where all the energy is. bernie sanders, an avowed socialist, almost one and probably should have won the nomination last time had the party not rigged it. they are going to pick somebody in a very left lane of their party. i think that's where all the energy is. i think it's unlikely that a joe biden can actually come out of this thing with any real --

he's got great name i.d. right now, so he is polling well. but i think those numbers start to drop as soon as the focus becomes on what they are for and what their policies are. each one is going to lay out a very liberal agenda, i think. there may be a lien for somebody else, but right now i don't see it. >> molly: a quick follow-up on that. who do you think has the best chance right now? >> from my democratic viewpoint, the person that i would keep an eye on is a guy like terry mcauliffe who has lots of lanes he can get in on. he's been a former head of the party. while trump may try to link them up with hillary clinton the bill clinton, he's got a strong stellar voting record, leadership record in a southern state like virginia. he has led the party. he's got broad, strong relationships with the far left. all of those different lanes. if you jumps in, he would be somebody i'd keep an eye on that could have a moderate message or a moderate to left message that could be not only a winning message, but he could raise the money come too. >> molly: kevin, your thoughts on that? who do you think? >> the democrats in this town right now are talking about their love for beto o'rourke. i find that hard to believe that

a couple time congressman is going to have that much chance of winning. but that is where the energy in this part of the world is right now. who knows? it's wide open right now. you're going to get 30 candidates, probably pre20 people on a stage. there will be multiple debates. it's going to be crazy. i'm looking forward to it. >> molly: is going to be fun! i can't wait! heading for iowa and hampshire. it's a great time. scott bolden, kevin sheridan, i'm del mike i appreciate. thanks so much, have a good new year. >> leland: democrats take control of the house later this week. house republicans ended the year by quietly closing and investigation into pies against present from days before democrats take control of the house this week. chief intelligence correspondent catherine herridge in washington with a little more on the back story of this. hi, katherine. >> thanks, leland, good afternoon. this letter from outgoing trey gowdy and bob goodlatte got very lest we and it contains information about recent

closed-door testimony from former senior fbi officials, including top lawyer james bake baker. according to the letter, they said there is a basis to pursue a case against haley clinton for using an unknown secure a person personal server and mishandling of classified information. baker also said that the decision to recommend against criminal charges was not shared by all. "director comey stated no reasonable prosecutor would have brought the case against secretary clinton commented that his decision not to was unanimous among those involved." general counsel james baker, however, initially did believe that case could be made and multiple witnesses testified to the committee. the fbi's decision not to recommend charges was not unanimous. democrats have maintained that this was all old news, and that this sort of well-trodden ground. and that it was an effort by republicans to damage the special counsel. they said they will end any investigation along these lines when they take the gavel in a matter of days, leland.

>> leland: catherine, how does this play into house republicans' renewed call for that second special counsel? >> the comey interview transcript was recently released and it was the series of heated questions about his handling about the key memo. some contain a contain classified information. the documented his conversations with the present. he surely one memo with the columbia law professor richmond to kick-start the entire investigation. it's worth noting that he also shared it with lawyers david kelly and patrick fitzgerald pretty was pressed by republican john ratcliffe over the former director violating his fbi employment agreement by sharing the memos and possibly mishandling classified information in the process. ratcliffe, did you have written off authorization to share any of the memos with daniel lichtman?" >> i did not have any authorization to share the memo."

"if you shared any information with david kelly or patrick fitzgerald, did you have written authorization from the fbi to do that?" comey -- "i'm not going to answer questions about mic medications with my counsel." they asked the director of whether he handled miss classified information memos >> was there still classified information when you show those memos question asked to go i'm not going to talk about something like that. >> whether you think it is or not, i'm not going to talk about it one way or another. >> it's important to note his own testimony he confirmed that the justice general is inspecting his handling of these memos, but comey said he doesn't know where the end of ossetian stance. leland? >> leland: we will wait for that. catherine herridge. thank you very much. molly? >> molly: new details reported on the murder of jamal khashoggi, turkish tv showing luggage into the residence of the council general and in sample. they say the five suitcase contained the remains of

"the washington post" columnist after he was killed inside the saudi consulate. khashoggi was an outspoken critic of the saudi royal family. the crown prince has repeatedly denied that he had anything to do with his death. >> leland: january 1st, leader now running the pentagon. patrick shanahan taking over until another is concerned. he takes the reins from jim mattis, who resigned over the president's plan to withdraw from syria. lucas tomlinson, and black from that account. he resigned over the presence decision to pull out, but now we are hearing that the president may be at least a slowing things down on that pullout. >> he sure has prethe president says he has thrown down the withdrawal from syria. he spoke to fox news on new year's eve, just moments before the ball dropped on 2019. >> i'm in washington, i'm willing and able. i'm in the white house, ready to go pay they can come over right now. they could have come over anytime. i spent christmas in the white house. i spent new year's eve now in

the white house. i'm here. i'm ready to go. it's very important. a lot of people are looking to get their paycheck. i'm ready to go anytime they want. >> on a visit to brazil's capital of the inauguration of the new president, mike pompeo spoke to israeli prime minster benjamin netanyahu. pompeo said the u.s. would continue to work closely with his israel to counter iran. even as the troops out of syria. >> in no way doesn't change anything of this administration is working on alongside israel. >> last week, israeli jets bombed an israeli store -- excuse me, an iranian weapons facility in syria about stress capital. leland? >> leland: as they have done many times in the past prespeaking of weapons, lucas, concern over at the pentagon in terms of how many weapons have been pushed out onto the battlefield in syria by the united states, by the russians, and perhaps now they fallen into the wrong hands? >> one of the biggest issues

facing new acting secretary of defense patrick shanahan is what to do with all the american supplied weapons to the kurdish fighters battling isis in syria. for years, the u.s. u.s. mility supplied the syrian democratic forces. in the spring of 2017, the u.s. military supply these allies with heavy machine guns, antitank weapons, and other arms to carry out the final assault on the isis de facto capital of rocca. this was done over the objections from turkey hill, who considers this to be a terrorist organization due to its links to a kurdish insurgent group killing thousands over past decades. it's not clear if the u.s. can never recover all these weapons, even if it wanted to after isis is defeated. joe dunford travels to turkey, to have conversations about the future of syria. he joins john bolton on this trip. leland? >> leland: one could imagine

some of those conversations will be tense, in a word pray lucas tomlinson at the pentagon prayed lucas, thank you. molly? >> molly: some new numbers showing we could be seeing progress in the opioid academic. we will take a look with our medical experts

♪ >> molly: a judge ordering kevin spacey to appear in court, denying a request to skip eight hearing on egg positions that he gripped a young man. will you have to attend his arraignment next monday? his lawyer argued his appearance would risk contaminating the jury pool. he is accused of groping a 19-year-old man on nantucket, at a nantucket restaurant in 2016. space he is charged with felony indecent assault and battery. he is pleading not guilty. >> leland: now some good news

for 2019. a new hope that it could be a turning point in the rise of opioid overdoses and fatalities. officials say the national rate appears to be leveling off or falling off in some parts of the country. the cdc estimates in 2017. dr. nicole saphier, medical contributor, joints now. statistically significant enough to perhaps be a trend? >> first of all, happy new year, lee lin. this is very encouraging. for the first time we are seeing a decrease in at least 20 states of opioid deaths decreasing. it's a very small percentage, but it's -- it's at least not going up. we've been going up. that's optimistic. if you really break down those numbers, we are seeing a decreased depths of illegal prescription opioid use, and morphine. however -- and heroin. however, the sentinel related deaths are still on the rise. that's because fentanyl is about

100 times more potent than morphine paired people are dying for this. this is the problem. people are actually taking it and they don't even know it, leland. >> leland: with the elephant tranquilizers are as well, being put into those drugs. he brings to the nuts point. so mostly we planned this at a time. there is now these programs across the country to hand out strips to drug users that they could put their purchased drugs on these strips to see if things have been added, like the fentanyl they were talking abou about. is that really a long-term solution, though? >> what's happening is you have the synthetic, much stronger opioids like fentanyl like you mentioned. they are taking what they consider street heroin and they are dying from it because it is laced with fentanyl. fentanyl is cheap and easy to get across our borders from mexico and china. it's laced with it. the cheap test strips are about a dollar pace. multiple studies have shown that they are able to pick up 100% of

the time if fentanyl is laced and heroin if it shows mental there, the studies have shown they were either decrease the amount of heroin they use, or they will have a friend with them while they are getting high just in case they overdose. long-term solution construct no. but is there any single long-term solution? absolutely not. >> leland: doesn't it bring up the moral hazard, that if i'm a drug dealer and they want to prove to my client how good my stuff is i say "tested," and you can see is really strong? >> yes and no. apparently of the word on the street is that it's actually not a good supply if it contains fentanyl because people are afraid of fentanyl. most of the time they are using it to get high and not to die. people are dying from fentanyl. the drug supply is not wanting to have fentanyl in a previous just laced with it because it is cheap and get. see one quality control for the

illegal drug trade. remarkable. help us understand -- is there history in providing these types of things to drug users of illegal narcotics or any other illegal substances? sing "you're going to do this, no we are going to provide he thinks help you do it safer." >> unconventional say the least. people are testing federal boundaries when it comes to things, to provide clean syringes. now providing these strips, safe basis for injections. or even giving out narcan to reverse it. when they are trying to do is keep people alive long enough so that they can seek treatment to overcome this addiction. >> leland: as we enter this debate in 2019, you brought up the issue of narcan. a lot of sheriff senator juan enforcement officials i talked to say this handing out of narcan and handing out of these other paraphernalia completely screwed things up for them because they aren't able to see

who overdoses, who doesn't, who has had bad reactions come and try to trace that drug supply back through the chain. >> from an epidemiological standpoint, this messes up our numbers because if you will have narcan at home we don't know how many people are overdosing. it's a concern, it's very controversial. but we are throwing everything out, at this opioid crisis. we are having a hard time figuring out how to handle it. we dug ourselves in a deep hole. the senate passed a bill with funding. that's for people who are already addicted. we need to work on keeping things out of our country. there is a lot to do. at this point, we are throwing everything we can to try and help. >> leland: as you point outcome a lot of money being spent. not necessarily enough rehab facilities and other things. even if people want to get help. we appreciate you being here. thank you, ma'am. >> molly: a banner year for rules and regulations. what you need to know to stay on the right side of the law in 2019. plus, nasa waiting years for a close encounter.

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♪ >> leland: nasa says they started 2019 with a big accomplishment for a photographic evidence he had to be seen but possibly could be coming your way. nasa's new horizons spacecraft has completely fled by, they say, of an icy world 4 billion miles away from earth. the spacecraft is making its closest approach of her, bringing it within 2200 miles. that's mostly across the united states, of ultima thule. they hope it can shed light on

how the planets and stars were formed in the solar system's earliest days paid you can tell a lot from the pictures. standing, really pretty amazing. >> molly: fabulous. with a new year comes new laws. state laws covering and everything from minimum wage. man rafferty joined us not to explain. marianne >> here in california, ben of the use of nondisclosure agreements regarding sex assault goes into effect this year. those ideas i thought have long played a role in enabling serial abusers and silencing victims. outspoken supporters of the me too movement, like roseanne arquette, say the law is an important first step. speak of the past year has never been about a witch hunt. it has never been about one man or even hundreds of men. the past year has been about change.

>> the minimum wage is increasing and at least 20 states, even as the federal minimum has remained at $7.25 since 2009. also, shopping online may cost you more in 2019. at least six states will require taxes on purchases from out-of-state retailers. also, more subs take place to curb opiate addiction in new york by stating a giveback law, requiring companies to take back unused drugs. also, a lower threshold for drunk driving in utah topper that states blood alcohol content limit dropped to .05%, marking the strictest dui law in the country. the california log requiring pet stores to only sell pets that come from shelters or nonprofit rescues. and speaking of pets, another california law makes pets an official part of the family. also subject to custody battles, just like children. we feel like our pets are already like our children, don't we? >> there are certainly those that do. they would make the argument for show. megan rafferty, thank you so

much. >> leland: i said i would want to come back as my mom's dog, because he is treated way better. they get treated way better. doughnut. the new laws have also taken place in italy. all nonresidents entered the city of venice, not just overnight travelers, will have to pay a visitors tax. the mayor says the revenue will help them manage the city and keep it clean. people visit venice, with about one fifth spending at least one night in the historic city. 80% of visitors now have to pay the tax. you have to wonder, if they have all of the tax revenue from everything they sell in venice, is this really going to make the difference in keeping it clean? >> molly: they've got to keep that thing afloat, too. they are thinking. you've got to get there soon and see it soon before it sinks. >> leland: and the pigeons come as well. as always an issue. if this tax is part of the anti-pigeon fund. it's been a great holiday. >> molly: yes, it's been wonderful! great to spend my new year with you.

>> leland: i can't think of anything i would rather do. happy new year. blake burman and laura ingle up next. >> molly: thanks watching. ♪ someone in witness protection, i can't tell you anything about myself. but believe me... i'm not your average consumer. that's why i switched to liberty mutual. they customized my car insurance, so i only pay for what i need. and as a man... uh... or a woman... with very specific needs that i can't tell you about- say cheese. mr. landry? oh no. hi mr. landry! liberty mutual customizes your car insurance so you only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ amanda's mom's appointment hello mom. just got rescheduled - for today. amanda needs right at home. our customized care plans provide as much - or as little help - as her mom requires. whether it's a ride to the doctor or help around the house.

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but he hasoke up wwork to do.in. so he took aleve.

if he'd taken tylenol, he'd be stopping for more pills right now. only aleve has the strength to stop tough pain for up to 12 hours with just one pill. aleve. all day strong. >> blake: fox news alert on this new year's day, the stalemate in washington enters a new year as incoming house democrats prepare for a new show down with president trump. welcome to a brand-new year, a brand-new hour inside of america's news headquarters. i'm blake burman. good to be with you on this new year's day. >> laura: great to be back with you again. i'm laura ingle. they will introduce bills to end the government shut down as soon as they take control of the house on thursday. with no money for the president a posthumous wall. lawmakers already fighting over the issue. >> they want to spread the sum of the vote of the president's office for. this is what they voted for republicans for.